GlossaryEN1 min readUpdated: Jun 26, 2026
transaction value
Transaction value is the price actually paid or payable for goods sold for export to the country of importation, and it is the primary customs valuation method under the WCO Customs Valuation Agreement.
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Source: https://www.wcoomd.org/en/topics/valuation/instrument-and-tools/customs-valuation-compendium.aspx
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Definition & Explanation
Transaction value is the price actually paid or payable for goods sold for export to the country of importation, and it is the primary customs valuation method under the WCO Customs Valuation Agreement. It extends beyond the invoice figure: certain additions apply—commissions, royalties, or a share of transport costs not already included in the agreed price—while discounts documented in the sales contract and actually granted reduce it accordingly. The invoice value is the commercial starting point; transaction value is the customs law concept that adjusts that figure through prescribed additions and deductions. In practice, customs authorities assess whether the declared price reflects an arm's length transaction; where buyer and seller are related parties, the method may be set aside in favour of alternative valuation approaches specified in the Agreement.
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