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GATT Article VII - Definition & Meaning | Logistics Glossary

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GlossaryEN1 min readUpdated: Jun 26, 2026

GATT Article VII

Unlike earlier customs practices that allowed authorities to assess goods values at their own discretion, GATT Article VII establishes a binding, internationally agreed framework for customs valuation.

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Unlike earlier customs practices that allowed authorities to assess goods values at their own discretion, GATT Article VII establishes a binding, internationally agreed framework for customs…

The primary standard is transaction value – the price actually paid or payable for goods sold for export – adjusted to include freight to the point of importation, insurance, packaging, and any…

Where transaction value cannot be determined or accepted, five alternative methods apply in strict descending order: transaction value of identical goods, transaction value of similar goods,…

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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GATT Article VII

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Definition & Explanation

Unlike earlier customs practices that allowed authorities to assess goods values at their own discretion, GATT Article VII establishes a binding, internationally agreed framework for customs valuation. The primary standard is transaction value – the price actually paid or payable for goods sold for export – adjusted to include freight to the point of importation, insurance, packaging, and any commissions or royalties applicable. Where transaction value cannot be determined or accepted, five alternative methods apply in strict descending order: transaction value of identical goods, transaction value of similar goods, deductive value derived from the resale price, computed value based on production costs, and a fallback method. These principles are implemented through the WTO Customs Valuation Agreement of 1994, binding on all WTO members. Customs declarants and trade compliance auditors invoke this hierarchy routinely whenever declared values are called into question by border authorities.

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Recommended format: Source: Freight Academy – GATT Article VII (https://www.freight-academy.com/en/glossary/gatt-article-vii), accessed 2026-09-12
APA style: Freight Academy Editorial Team. (2026). GATT Article VII. Freight Academy. https://www.freight-academy.com/en/glossary/gatt-article-vii
BibTeX: @misc{gattarticlevii2026, title = {GATT Article VII}, author = {{Freight Academy Editorial Team}}, year = {2026}, url = {https://www.freight-academy.com/en/glossary/gatt-article-vii}, note = {Freight Academy, accessed 2026-09-12} }

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