In determining the customs value for a particular

In determining the customs value for a particular importation, the customs will first look at the
transaction value within the definition of the Article 1. Customs will either accept the
transaction value (as it is or by making some adjustments) or reject the transaction value. In
the cases where the transaction value is rejected, the customs will use other alternative
methods of valuation in determining the customs value. We will discuss the alternative
methods in the Module 3.

[Type text] [Type text] Customs Commercial Operations
Module 2: Transaction Value - WTO Valuation
12
Reading1:
AGREEMENT ON IMPLEMENTATION OF ARTICLE VII
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
Article 1
1. The customs value of imported goods shall be the transaction value, that is the price
actually paid or payable for the goods when sold for export to the country of importation
adjusted in accordance with the provisions of Article 8, provided:
a) that there are no restrictions as to the disposition or use of the goods by the buyer
other than restrictions which:
(i) are imposed or required by law or by the public authorities in the country of
importation;
(ii) limit the geographical area in which the goods may be resold; or
(iii) do not substantially affect the value of the goods;
(b) that the sale or price is not subject to some condition or consideration for which a
value cannot be determined with respect to the goods being valued;
(c) that no part of the proceeds of any subsequent resale, disposal or use of the goods
by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment
can be made in accordance with the provisions of Article 8; and
(d) that the buyer and seller are not related, or where the buyer and seller are related,
that the transaction value is acceptable for customs purposes under the provisions of
aragraph 2.
2. (a) In determining whether the transaction value is acceptable for the purposes of
paragraph 1, the fact that the buyer and the seller are related within the meaning of
Article 15 shall not in itself be grounds for regarding the transaction value as unacceptable.
In such case the circumstances surrounding the sale shall be examined and the transaction
value shall be accepted provided that the relationship did not influence the price. If, in the
light of information provided by the importer or otherwise, the customs administration has
grounds for considering that the relationship influenced the price, it shall communicate its
grounds to the importer and the importer shall be given a reasonable opportunity to respond.
If the importer so requests, the communication of the grounds shall be in writing.
(b) In a sale between related persons, the transaction value shall be accepted and the
goods valued in accordance with the provisions of paragraph 1 whenever the importer
demonstrates that such value closely approximates to one of the following occurring at or
about the same time: