GlossaryEN1 min readUpdated: Jun 26, 2026

Customs valuation

Customs valuation is the process by which customs authorities determine the taxable value of imported goods as the basis for calculating duties, import taxes, and other charges.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.wto.org/english/tratop_e/cusval_e/cusval_e.htm

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Logistics Concept

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1 min

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135

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Definition & Explanation

Customs valuation is the process by which customs authorities determine the taxable value of imported goods as the basis for calculating duties, import taxes, and other charges. Under the WTO Customs Valuation Agreement, the transaction value—the price actually paid or payable by the buyer to the seller—serves as the primary method. Where no reliable transaction value can be established, a mandatory hierarchy of fallback methods applies: identical goods value, similar goods value, deductive value, computed value, and finally a residual method. For importers and customs brokers, accurate valuation is a direct cost driver: undervaluation can trigger post-clearance audits, penalties, or seizure, while overvaluation leads to unnecessary duty overpayments. In many customs territories, freight and insurance costs to the point of entry are included in the customs value even when listed separately on the commercial invoice.