How to determine your customs valuation |'s Blog on Customs Brokerage and News Updates

How to determine your customs valuation


What is a customs valuation?

Customs valuation is the identification of the value of the goods intended to be shipped. Of course, CSBA has a requirement that imported goods have a value listed, which in turn is the base amount on which you must calculate the fees– like duty and taxes– you will need to pay.

It’s not uncommon that importers and business owners grapple a little bit with determining valuations. If you are having trouble with properly declaring your good’s value, don’t worry! There’s no doubt that the confusion stems from the regulatory framework as well as all the potential factors for valuations. However, it’s crucial to note that valuation is a key element that CSBA looks at when clearing a package. Customs valuation is a tricky aspect of shipping logistics, but a misstep here will cost you time and money.

How to determine the customs valuation?

The World Trade Organisation’s (WTO) Valuation Agreement provides the basis of requirements for the methods used for valuation. These established rules are in place to ensure that the value of the goods is in compliance with commercial regulations.

There are 6 methods for customs valuation.

Transaction Value: This is the most common method, as it must be used whenever possible. This is determined on the value of the price paid or payable on the imported goods.

Transaction Value of Identical Goods: In the event that you can’t use the transaction value method, you must use this method. This method uses a pre-established value of identical goods. This will only apply in the same country as the identical goods.

Transaction Value of Similar Goods: If the case may be that you cannot use the value of identical goods, you must use this method next. The value of the goods must resemble the goods as close as possible, capable of being used for the same use, and produced in the same country.

Deductive Value: This method uses the most common price point of the imported good as sold to Canadians.

Computed Value: This value is calculated using the production costs and profit of the imported goods. These must be determined by the producers in the exporting country.

Residual Value: This method is based on the methods discussed above– requiring the smallest amount of adjustment.

These are just some of the factors that play into the value of duty for imported goods. In essence, you should ensure that you’ve reviewed these methods for valuation, and tried employing them in succession to properly assign a value to your imported goods. Have any more questions? Let us help you! Click here for some guidance.