Notional Concept Of Valuation

Summary of Notional Concept Of Valuation

An approach to the application of ad valorem duties that holds that duties should be applied upon the price the goods “ought to fetch”under specified conditions; this view was widely held for many years and was embraced in the Brussels Definition Of Value (read this and related legal terms for further details). The notional concept is contrasted with the positive concept, which asserts that duties should be applied upon the value of the transaction, as defined by buyer and seller. The major trading nations in the 1980s adopted the notional view in the Customs Valuation Agreement (read this and related legal terms for further details).

(Main Author: William J. Miller)