Goods customs value is the key factor when import customs duty is established as an ad valorem rate, i.е., certain duty rate percentage proceeding from the goods value. Ad valorem rates in the structure of Customs Union’s Common customs tariff amount to 80%. It is very important for the importer of the goods how the Customs Union defines goods customs value as the amount the importer shall effect depends on it.
Agreement on application of Article VII General agreement on Tariffs and Trade (hereinafter referred to as WTO Agreement on customs valuation) is the key aspect in calculation of goods customs value in the frame of WTO. WTO Agreement on customs valuation is based on the following basic principles:
- Establishing of complete list of goods customs value calculation methods namely:
- method as per transaction cost;
- method as per transaction cost with identical commodities;
- method as per transaction cost with homogenous commodities;
- subtraction method;
- computed method;
- fall-back method.
- Identification of transaction cost as principle for customs value calculation;
- Objectiveness upon goods customs value calculation.
Thus, a product customs value is the value actually paid for imported goods or , in other words, the good price, established by foreign trade agreement (purchase and sales transaction) taking into account extra expenses (costs) incurred by the buyer upon preparing and executing certain purchase and sales transaction.