Transaction Value

Summary of Transaction Value

The primary method of valuing goods for customs purposes under the Customs Valuation Agreement (read this and related legal terms for further details).

(Main Author: William J. Miller)

Transaction Value and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Transaction Value: The cornerstone of the GATT Customs Valuation Code, which obligates signatory governments to use transaction value, or the price actually paid or payable for goods when sold for export (subject to certain adjustments for costs or charges not reflected in the price), as the principal basis for valuing goods for customs purposes. In cases where the transaction value cannot be used –for example, shipments between corporate affiliates or related entities –the primary alternative method is the transaction value of identical merchandise shipped from the same country of origin; a secondary alternative is the transaction value of similar goods sold from the country of origin. If none of the foregoing methods can be used, the deductive value or the computed value may be employed.

In the United States

For information about Transaction value in the context of international trade, click here