Normal Price

Summary of Normal Price

Within the scope of the Brussels Definition Of Value (read this and related legal terms for further details), the value basis upon which ad valorem duties will be assessed on imports. The normal price is the price the goods would command in an open-market sale between buyer and seller for delivery at the time and place of actual importation; it includes transportation and other costs incidental to bringing the goods to the point of importation. When the purchase price does not reflect all consideration given by the buyer to the seller (e.g., patent rights), the value of the goods will be adjusted for customs purposes. The Customs Valuation Agreement (read this and related legal terms for further details) emerging from the Tokyo Round of multilateral trade negotiations has substituted the transaction value for the normal price concept.

(Main Author: William J. Miller)