Determination of Customs Value for Identical Goods
- This section demonstrates calculation of Customs value under the provisions of Article 2 of the ACV.
Example 1
- You have a shipment from supplier E at a unit price of 4 c.u, in a quantity of 1,700 pieces to a wholesaler. It is not possible to establish a transaction value under Article 1. You have records of an identical product supplied by F, at a quantity of 2,300 pieces to a wholesaler at a unit price of 4.75 c.u. You have a copy of F’s price list, which you have determined is bona fide, which shows the price varies according to the amount purchased. For purchases of under 2,000 pieces, the price is 5 c.u. while 2,000 and over brings a price of 4.75 c.u. Since there is no transaction value for the shipment from E, what is the proper value?
Answer
- 5 c.u. Since the price of the identical goods does vary according to quantity purchased, and the identical goods are at a different quantity, you must make an adjustment. Using a given price list, select the price in the range appropriate to the imported goods, or the price at 2,000 pieces and over.
Example 2
- You have a shipment 1,700 pieces of televisions from Al Jazzer of Dubai to a wholesaler at a unit price of USD 100/pc for valuation but it is not possible to establish a transaction value under Article 1. However, you have identical televisions from Dubai Co. ltd, of 1,700 pieces to a wholesaler at a unit price of USD 120/pc in your valuation database and thus resorting to Article 2.
- Do you have a value to use and, must you make an adjustment to that value?
Answer
- Yes, the value of USD 120/pc may be used and adjustment is not necessary as the goods are in the same quantities and at the same commercial level