# customs valuation process

*Last updated: 2026-06-22*

> When an importer submits a customs declaration, the customs valuation process begins: authorities must determine whether the price shown on the commercial invoice can serve as the basis for calculating import duties.

When an importer submits a customs declaration, the customs valuation process begins: authorities must determine whether the price shown on the commercial invoice can serve as the basis for calculating import duties. The primary method is transaction value – the price actually paid or payable between an unrelated buyer and seller. If that value cannot be substantiated or appears distorted, a strict hierarchy of fallback methods applies: the value of identical or similar goods, the deductive value derived from resale prices in the country of import, the computed value based on cost-plus calculations, and finally a residual method drawing on available data. No later method may be applied before all higher-ranking ones have been exhausted – the sequence is mandatory. Internationally, the process is governed by the WTO Customs Valuation Agreement, which builds on Article VII of the GATT.

**Source:** [https://www.wto.org/english/tratop_e/cusval_e/cusval_e.htm](https://www.wto.org/english/tratop_e/cusval_e/cusval_e.htm)

## Quick Facts

| Property | Value |
|---|---|
| Term | customs valuation process |
| Language | EN |
| Word count | 139 |
| Last updated | 2026-06-22 |
| Source | https://www.wto.org/english/tratop_e/cusval_e/cusval_e.htm |

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