Other Considerations of Similar Goods

Stephen Otieno

Other Considerations of Similar Goods

- - In applying Method 3, Customs administration shall wherever possible, use a sale of similar goods at the same commercial level and substantially the same quantities as the goods being valued. Where no such sales are found, a sale of similar goods that takes place under any one of the following three conditions may be used.
    1. A sale at the same commercial level but in different quantities
    2. A sale at a different commercial level but in substantially the same quantities
    3. A sale at a different commercial level and in different quantities is exported at or about the same time as the goods being valued.
- Note that If more than one transaction value of identical goods is found, the lowest should be used.

Learning Activities

You have a shipment before you from Fu shung of China, of 2,000 pieces of radio cassette, priced at USD 5/pc and imported by a wholesaler. It is not possible to establish a transaction value under Article 1 and Article 2. You have a similar product from Shangai Co. also of China, shipped in a quantity of 1,700 pieces at a unit price of USD 6 and imported by a wholesaler. Shangai Co. sells his product to all who buy at least 1,000 pieces at USD 6/pc and does not otherwise vary his price.

Required:

What is the appraised value for the imported goods assuming that Article 1 and Article 2 cannot be used?
Is an adjustment required?

Assignment

The transaction value of similar goods method is based on previously accepted transaction value. True or False?
With reference to Article three, if two values of similar goods are found in the database then the lowest should be adopted. True or False?
Identify four criteria of similar goods
Apply those characteristics on any ten (10) commodities that are similar