Use Of Test Values As A Risk Assessment Tool

A Test value refers to previously accepted Customs values for merchandise sold to unrelated parties in the country of importation. Test values may be
1. the transaction value of identical or similar goods sold to unrelated buyers in the country of importation.
2. Deductive value of identical or similar merchandise
3. Computed value of identical or similar merchandise
Under the conditions for use of Transaction Value method, if the buyer and seller are related, then transaction value is rejected.
Under provisions of the WCO-ACV, if the price was not influenced by either of the parties, then test values may be used as basis to either accept or reject the declared Customs values.

Learning Activities

Using hypothetical figures demonstrate how you may apply the flexibility principle on same country of production and at or about the same time under methods 2,3 and 4.

Identify and explain examples of the following: –

1. Selling prices in the country of importation
2. Price of goods on the domestic market of the country of exportation