Application of Deductive Value Method

The Customs value under deductive value method will be determined on basis of the unit price at which the imported goods or identical or similar goods are sold to an unrelated buyer in the greatest aggregate quantity in the country of importation.
To determine the greatest aggregate quantity all sales at a given price are taken together and the sum of all the units of goods sold at that price is compared to the sum of all the units of goods sold at any other price.
The greatest number of units sold at one price represents the greatest aggregate quantity.

In the above illustration the greatest units sold 70 +50 = 120, therefore unit price at which the greatest aggregate quantity was sold is 95.

Example 1

Goods are sold from a price list, which grants favorable unit prices for purchase made in increasingly larger quantities.

Answer

The greatest number of units sold at a given price is 80. Therefore, the unit price in the greatest aggregate quantity would be 90.

Learning Activities

Read Article 4 & 5 of the Agreement and deduce the requirements of the Deductive value method.

Sales Quantity	Unit Price	Number of Sales
1-10	1500	20 sales of 15 units and 17 sales of 9 units
11-20	1200	15 sales of 25 units
20-23	1800	20 units of 08 units and 18 sales of 30 units
Over 25	100	20 sales of 7 units 5 sales of 50 units

Additional information

Required