Positive Concept Of Valuation
Summary of Positive Concept Of Valuation
An approach to the application of ad valorem duties that holds that duties should be applied upon the actual value of the transaction, as defined by buyer and seller. This view has been substantially fulfilled by the recent adoption of the transaction value basis of valuation in the Customs Valuation Agreement. (read this and related legal terms for further details).
This positive view contrasts with the notional view of valuation, which holds that ad valorem duties should be applied to 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).
(Main Author: William J. Miller)