GlossaryEN1 min readUpdated: Jun 26, 2026
Transaction Value Method
Unlike estimated or fallback approaches, the Transaction Value Method grounds customs valuation in the price actually paid or payable between buyer and seller for the specific shipment.
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Source: https://www.wto.org/english/tratop_e/cusval_e/cusval_e.htm
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
Unlike estimated or fallback approaches, the Transaction Value Method grounds customs valuation in the price actually paid or payable between buyer and seller for the specific shipment. Documented ancillary costs to the point of importation – freight, insurance, brokerage fees – are added to that base price. Enshrined in the WTO Customs Valuation Agreement, it is the globally mandated first step: customs authorities must exhaust this method before any secondary procedure applies. It fails in practice when buyer and seller are related parties whose relationship has affected the price, or when credible purchase records are missing. Distinct from the transaction value of identical or similar goods, which are separate, lower-ranked methods in the valuation hierarchy.
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