Elements of Computed Value

These elements are outlined in Article 6 as being the sum of the following:
1. The cost or value of materials and fabrication or other processing employed in producing the imported goods;
2. An amount for profit and general expenses equal to that usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the country of importation;
3. The cost or value of all other expenses necessary to reflect the valuation option chosen by the Member under paragraph 2 of Article 8.

General expenses

These include the direct and indirect costs of marketing the goods compared with the goods being valued.

Generally Accepted Accounting Principles (GAAP)

“Goods of the same class or kind” in this context means goods which fall within the group or range of goods produced by a particular industry or sector and include the identical or similar goods.