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Valuation
1. Transaction Value is the price paid or payable at time of exportation, less non-dutiable charges,
plus any assists, royalties, license fees, or proceeds which accrue to the foreign seller.
2. Transaction Value of Identical Merchandise is used when there is no legitimate Transaction Value and
there is Identical Merchandise sold.
3. Transaction Value of Similar Merchandise is used when there is no legitimate Transaction Value and
Identical Merchandise has not been sold
4. Deductive Value is the next method to be used if none of the Transaction Value methods above are
available. This method starts with the resale price in the U.S., and deducts U.S. profit, overhead,
international and domestic freight and insurance.
5. Computed Value is the next method used by Customs if there is no resale. This method is a cost
method, starting with costs associated with material and labor and overhead to produce, plus a normal
foreign profit. An importer may select this method on the entry summary if they prefer this method over
Deductive and there is not Transaction Value (as in 1, 2, or 3 above).
6. Reasonable Adjustment Using All of the Above Methods is used as a last resort and must
be reasonable