IMPORT AND

EXPORT
MANAGEMENT

SIVARAM A
2023654060
 Proper value declaration

 Proper value declaration is crucial for

facilitating smooth cross-border trade,
ensuring fair taxation, and maintaining the
integrity of trade statistics. Importers and
exporters should understand and adhere to
the relevant regulations and standards to
accurately declare the value of goods and
comply with customs requirements.
 Accuracy:The declared value should
reflect the true commercial value of the
goods, including all payments made or
to be made as a condition of sale
 Compliance:Importers and exporters
must comply with international
valuation standards, such as those
outlined by the World Trade
Organization (WTO) and the World
Customs Organization (WCO).
 Documentation:Proper documentation,
including invoices, bills of lading, and other
supporting documents, must be provided to
substantiate the declared value.
 Valuation Methods:Different methods, such as
the transaction value method, transaction
value of identical or similar goods, computed
value method, and deductive value method,
may be used to determine the value of goods
Additional cost
 Additional costs incurred in getting
the goods to the specified delivery
point, such as packing,
transportation, insurance, and
applicable duties and taxes, should
be included in the declared value.
 Currency Conversion:If the
transaction is conducted in a
currency other than the country’s
official currency, appropriate
exchange rates should be used for
currency conversion to accurately
reflect the value in the importer’s or
exporter’s currency.
 Related Party Transactions:Special rules apply
if the buyer and seller are related parties, and
the transaction value may still be acceptable
for customs valuation purposes under certain
conditions.
 Incoterms:The chosen International
Commercial Terms (Incoterms) can impact the
declared value by defining the responsibilities
of buyers and sellers for the delivery of goods
under sales contracts.
 Legal Compliance

Importers and exporters must

ensure compliance with
customs regulations and
guidelines regarding valuation
methods to avoid delays, fines,
or legal consequences
Overview of different methods for
determining the value of imported
goods

 Transaction Value
Method:Primary Method:
The price actually paid or
payable for the imported goods
is used as the basis for
valuation.Includes: All
payments made as a condition
of sale, including any additional
costs like packing,
commissions, royalties, and
license fees.
 Transaction Value of
Identical
Merchandise:When
Used: If identical goods
are sold for export to the
same country at the
same time as the goods
being valued.Basis: The
transaction value of the
identical merchandise
can be used for
valuation purposes.
 Transaction Value of Similar Goods:When
Used: If no identical goods are available, the
transaction value of similar goods can be
used.Adjustments: Adjustments may be made
to reflect any differences between the
imported goods and the similar goods.
 Computed Value
Method:Calculation: The value is
determined based on the cost of
production, including materials,
labor, and profit, plus any other
costs and expenses.
 Deductive Value Method:Basis:
The value is based on the resale
price of the imported goods in
the country of import, with
deductions for certain expenses
such as transportation and import
duties.
 Fallback Method:When Used: If
none of the above methods can be
applied, a reasonable means
consistent with the principles and
general provisions of valuation can
be used.
Understanding Transaction Value
and its Components

 The price actually paid or

payable for the imported
goods.
 Any part of the proceeds of
any subsequent resale,
disposal, or use of the
imported goods that accrues,
directly or indirectly, to the
seller.
 Certain additional costs and
expenses incurred by the
buyer.
Comparing Transaction Value of
Identical Merchandise and Similar Goods
Identical Merchandise:
Goods that are the same in all
respects, including physical
characteristics, quality, and
reputation, and produced by
the same manufacturer.
Similar Goods:

Goods that are not identical but

have similar characteristics and
can perform the same functions
and be commercially
interchangeable with the goods
being valued.
Thank you