VALUATION OF FREE-OF-CHARGE GOODS
All goods imported into Australia must be assigned a Customs value, even if they were provided free of
charge. This includes gifts, bonus goods, samples and promotional goods.
WHAT IS A CUSTOMS VALUE AND
HOW IS IT CALCULATED?
The Customs value is the value to be used when goods are
imported into Australia.
The most common method for valuing any import is to use
the ‘transaction value’, which is the price the importer
actually paid (or is going to pay) for the goods.
IF YOU HAVE A CONTRACT OF SALE
Customs and Border Protection will use the transaction value
method if you have a contract of sale or agreement that includes
the free-of-charge goods and if other requirements of that
valuation method are met.
Your free-of-charge goods must be part of a larger shipment
covered by the contract of sale. In this case, you need to
apportion the total value of the shipment to each good, including
the free-of-charge goods. The Customs value of each good is
calculated based on each apportioned value.
To apportion the total value, you can use commercial documents
or contact the overseas supplier to work out how much each
good in the shipment is worth. If you do not have enough
information to apportion the total value, contact Customs and
Border Protection for assistance.
IF YOU DON’T HAVE A CONTRACT OF SALE
The transaction value method cannot be used when there is no
contract of sale for the free-of-charge goods.
In this case the customs value will be determined by applying
the following valuation methods in the following sequence:
1) Identical goods value – the price of identical goods sold for
export to Australia
2) Similar goods value – the price of similar goods sold for
export to Australia
3) Deductive value – the price of either the imported goods,
identical goods or similar goods, in a sale in Australia,
to another importer, unrelated to you (adjusted for costs
incurred between the place of export and the first sale in
Australia)
4) Computed value – this is based on the price of producing the
goods, general expenses, other costs and profits relating to
the imported goods
5) Fall-back value – where no other methods are suitable,
Customs and Border Protection will determine the value by
taking into account the above valuation methods and any
other relevant information.
RELEVANT LEGISLATION
This information is intended only as a guide and has no legal
force. Full details relating to the valuation requirements are
contained in the Customs Act 1901. Section 159 of the Customs
Act outlines the methods for determining the Customs value of
imported products.
RELATED FACT SHEETS
You can access the following related fact sheets from www.
customs.gov.au:
• Valuation of imported goods
• Valuation treatment of production assist costs
FOR MORE INFORMATION
If you are unsure how to value particular goods, Customs and
Border Protection officers are available to assist you.

For information on any Customs and Border Protection matter,

contact the Customs Information and Support Centre on
1300 363 263, email information@customs.gov.au or browse our
website www.customs.gov.au.

April 2011