GlossaryEN1 min readUpdated: Jun 26, 2026

Trade Value

Trade value is the foundation for calculating import duties, taxes, and statistical reporting, making it one of the most scrutinised figures in customs clearance.

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Last updated: 26 June 2026Published: 27 January 2026

Source: https://www.wcoomd.org/en/topics/valuation/overview/what-is-customs-valuation.aspx

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Passar Hub: Everything on the new Swiss customs system

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Definition & Explanation

Trade value is the foundation for calculating import duties, taxes, and statistical reporting, making it one of the most scrutinised figures in customs clearance. It represents the price actually paid or payable for goods sold for export, with freight and insurance charges added or excluded depending on the applicable Incoterm and the importing country's valuation rules—CIF for cost-inclusive, FOB for port-of-export basis. The WTO Customs Valuation Agreement, administered through WCO guidelines, establishes a hierarchy of methods for determining value when the transaction price cannot be used directly. In day-to-day freight operations, trade value appears on commercial invoices, packing lists, and customs declarations, where discrepancies can trigger audits or penalty duties. It differs from market value or replacement value, which serve different purposes and are calculated on different bases.

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