Meaning
Statutory provisions define the primary method for determining the customs value of goods based on the actual price paid or payable when sold for export to the Union. The rules in ucc article 70 establish that the transaction value is the first basis for appraisal unless specific conditions for rejection are met.
Transaction Value
The price must be the total amount paid by the buyer to the seller for the imported goods, including any indirect payments. This figure is the baseline for all subsequent duty calculations and must be supported by a commercial invoice and proof of payment. If the sale is not a genuine commercial transaction, the authorities move to the next valuation method in the hierarchy.
Adjustment Condition
Certain costs like commissions, containers and the value of buyer provided materials must be added to the price if they are not already included. These adjustments ensure that the declared value represents the full economic worth of the battery components at the time of arrival. Accurate reporting of these additions is a core requirement for complying with the code.
Valuation Hierarchy
When the transaction value cannot be used, article 70 directs the customs office to use the value of identical or similar goods produced in the same country. This systematic approach prevents the arbitrary assignment of values by customs officers and provides a predictable framework for international trade. The importer has the right to an explanation of how the value was determined if the primary method is rejected.
