GlossaryEN1 min readUpdated: Jun 26, 2026
customs value adjustment
When an importer discovers after clearance that the declared transaction price was incorrect—due to retrospective volume rebates, omitted royalties, or use of the wrong Incoterm—a customs value adjustment is required.
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Source: https://ec.europa.eu/taxation_customs/business/calculation-customs-dvat/valuation-customs_en
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
When an importer discovers after clearance that the declared transaction price was incorrect—due to retrospective volume rebates, omitted royalties, or use of the wrong Incoterm—a customs value adjustment is required. It corrects the originally declared customs value to reflect the accurate dutiable amount, in compliance with WTO customs valuation rules. FOB and CIF terms produce different dutiable values because of the freight and insurance costs included in each, making Incoterm errors a frequent trigger. The adjustment must be fully documented to support recalculation of duties and import taxes. Depending on whether the value rises or falls, the outcome is either an additional duty demand or a refund claim.
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