Customs Valuation: Download Part 1 of the WTO Handbook

Detailed customs valuation knowledge is essential for anyone dealing with imports into a country. Here you can download Chapter 1 of the WTO Handbook on CV.

Recently, Part 1 of the WTO Handbook on Customs Valuation circulated freely on Social Media. So we took it from there and presented it to you for download - Part 1 Introduction. Please don't hesitate to download it after reading our introduction into customs valuation.

Customs valuation is a crucial aspect of international trade. It has been used since the beginning of international trade, with governments collecting duties since ancient times. However, disputes over rates and methods can arise.

Customs valuation is the determination of the economic value of goods declared for importation. Together with origin and classification, the customs value provides the basis for the assessment of the customs debt, which is normally calculated as a percentage of the customs value.

6 Valuation Methods in Customs Valuation

There are 6 valuation methods:

1. The transaction value method

2. The transaction value of identical goods

3. The transaction value of similar goods

4. The deductive method

5. The computed method

6. The fall-back method

The primary valuation method is the transaction value method, which comprises the total amount paid (or to be paid) for the imported goods. The transaction value is subject to certain additions and deductions. If the transaction method is not applicable, the other secondary valuation methods would be applied in sequential order.

International framework on Customs Valuation

The principles of customs valuation are set out in the World Trade Organization’s Customs Valuation Agreement. The World Trade Organization’s Committee on Customs Valuation (CCV) and the World Customs Organization’s Technical Committee on Customs Valuation (TCCV) are the international customs valuation forums. The WCO Customs Valuation Compendium compiles instruments issued by the TCCV that offer guidance on the interpretation and application at an international level of the Customs Valuation Agreement.

Download Chapter 1 of the WTOs Handbook on Customs Valuation

Here is what is covered:

List of Figures page x

Foreword xi

Preface xiii

Acknowledgements xiv

Acronyms and abbreviations xv

1 Introduction 1

1.1 The purposes of customs valuation 1

1.1.1 What is customs valuation? 1

1.1.2 The importance of customs valuation 2

1.2 History 4

1.2.1 Before common valuation rules 5

(a) Brussels Definition of Value 6

(b) Positive value systems 6

(c) Early GATT initiatives on common valuation rules 7

(d) Precursor to an agreement 10

1.2.2 Tokyo Round negotiations 14

1.2.3 Uruguay Round negotiations 16

(a) Burden of proof 18

(b) Sole agents and minimum values 19

(c) A “single undertaking” 20

(d) Dispute settlement 21

1.3 Agreement overview 22

1.3.1 The WTO standard – transaction value 22

1.3.2 Structure of the Agreement 22

1.3.3 Primacy of transaction value 24

Handbook on the WTO Customs Valuation Agreement.pdf

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