Transaction value is the price actually paid or payable for imported goods, adjusted as required, when used as the customs valuation basis. It is not always identical to the commercial invoice total.
Which adjustments may be required?
Depending on the jurisdiction and terms, customs value may add assists, packing, commissions, royalties, transport or insurance, and may exclude qualifying post-import charges.
When can transaction value be used?
The sale must meet applicable customs conditions, including acceptable restrictions and relationship treatment. Related-party pricing may require evidence that the relationship did not influence the price.
Transaction value vs. transfer price
Transaction value serves customs valuation. Transfer pricing allocates income between related entities for tax purposes. The values interact but follow different rules.
What evidence should be retained?
- Purchase contract and invoice
- Payment records
- Freight and insurance
- Assists and royalties
- Related-party analysis
- Customs declarations and rulings
What if transaction value is unavailable?
Customs rules provide alternative valuation methods applied in a prescribed order. Importers should not invent a market value without following those methods.
