Deductive Value

Deductive Value and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Deductive Value: An alternative method of valuing imported merchandise for customs purposes, permitted under the Customs Valuation Code if none of the methods for establishing transaction value is appropriate. Under the deductive value method, the customs value is determined by using the first sale price of the goods in the importing country, and deducting certain costs incurred after importation; it is not normally used on goods destined for further processing or manufacturing within the importing country (see super deductive). An alternative to the deductive value method iscomputed value.