Transaction Value

Customs Basis

Authorities use this figure to ensure fair taxation across different importers of similar commodities. Adjustments to the transaction value are made for items like commissions, assists or packing costs that are not already included in the price. It excludes internal charges like transport after the items have entered the destination territory.

Pricing Foundation

Documentation must prove that the relationship between the buyer and seller did not influence the stated price. If the transaction value is questioned, officials may look at the costs of identical or similar merchandise to verify the truth of the invoice. This prevents companies from under-declaring prices to bypass border levies.

Accurate ledgers keep the process transparent during a routine regulatory audit by the government.

Regulatory Truth

Accurate numbers protect the importer from seizure of goods for fraud. The transaction value stands as the legal benchmark for nearly all legitimate border commerce.