# customs value determination

*Last updated: 2026-06-26*

> Customs value determination is the process by which customs authorities establish the dutiable value of imported goods, which serves as the basis for calculating import duties, VAT, and other charges.

Customs value determination is the process by which customs authorities establish the dutiable value of imported goods, which serves as the basis for calculating import duties, VAT, and other charges. The WTO Customs Valuation Agreement governs the methodology: the primary method is transaction value – the price actually paid or payable for the goods, plus freight, insurance, and other costs to the point of importation. Where transaction value cannot be established or is contested, five alternative methods apply in a prescribed sequence. Post-clearance audits may surface discrepancies after release, triggering duty adjustments in either direction. In day-to-day customs practice, related-party transactions and royalty payments are the most common flashpoints for valuation disputes, making thorough documentation essential.

**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 value determination |
| Language | EN |
| Word count | 116 |
| Last updated | 2026-06-26 |
| Source | https://www.wto.org/english/tratop_e/cusval_e/cusval_e.htm |

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