Application of Transaction Value
Adjustments
- The general introductory commentary to the Agreement indicates that Article 1 is to be read together with Article 8 (paragraph 9 of the 4th schedule of EACCMA).
Meaning of Adjustments
- These are costs incurred by the buyer but not included in the price actually paid or payable for the goods.
- The adjustment must be based on objective and quantifiable data. There are mandatory and optional adjustments.
Mandatory Adjustments
- These include those compulsory adjustments that must be added to PAPP if not already included. They include:
- Article 8.1(a) Commissions, cost of containers and packing
- Article 8.1(b) Assists
- Article 8.1(c) Royalties and License fees
- Article 8.1(d) Proceeds
- These include those compulsory adjustments that must be added to PAPP if not already included. They include:
- Article 8.2 Optional Adjustments
- In framing its national legislation, each Member state shall provide for the inclusion in or exclusion from the customs value, in whole or in part, of the following:
- The cost of transport of the imported goods to the port or place of importation;
- loading, unloading and handling charges associated with the transport of the imported goods to the port or place of importation; and
- The cost of insurance.