Customs Valuation

There are six different methods of valuation for imported goods:

In Canada:

  • Transaction value method
  • Transaction value method of identical goods
  • Transaction value method of similar goods
  • Deductive value method
  • Computed value method
  • Residual basis of appraisal method

In the US:

  • Transaction Value
  • Transaction Value of Identical Merchandise
  • Transaction Value of Similar Merchandise
  • Deductive Value
  • Computed Value
  • Derived Value / Or Other - If other value methods cannot be used. 

Determining the correct method for your particular shipment can be a challenge for new and experienced importers alike, but it is imperative it be done correctly. Customs prohibits the use of arbitrary or fictitious values, and it mandates the use of these valuation methods under law.

Informed Accuracy

Trust our team of specialists to ensure your goods are properly classified before they ship.
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What Can We Do for You?

When determining the valuation of your imported goods, it behooves you to entrust the process to an expert, as it has many pitfalls, and there is no replacement for experience. The PCB Trade Advisory Team consists of trained industry experts with decades of routine practice interpreting the rules on Customs valuation. Regardless of the irregularity of your shipment, we can determine the correct valuation that will allow you to import with confidence.  

Some of the services we provide include:

  • Providing a general understanding of the various valuation methods and their restrictions. 
  • Determining what costs, additions, and/or deductions can be made to your import’s value. 
  • Clarifying direct cost vs. indirect cost inclusions, assists, and commissions. 
  • A valuation of your proposed import. 

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Benefits of Valuation:

Having an expert evaluate your goods is beneficial because it is a deceptively simple process with significant financial consequences for error. 

Valuation is one of the fundamental principles of trade. It can seem intuitive - the value of a product is its transactional value - how much you paid for the product must be its value. That is partially correct, but that is simply where the process begins, and there are many places where it can become a magnitude more complex as it proceeds. For example:

  • What if the import has no obvious transactional value? 
  • What if the goods are sold in transit?
  • What if there is a reduction in price after the item is imported?  
  • What if the purchaser and vendor are related?
  • What if there are other factors such as Royalty, commissions, or price transfer?
  • What if the goods are not ‘sold’ at all?

All of these questions, and many more, factor into determining the value of an import and the many costly penalties that can be accrued for misinterpreting or misreporting it. Trusting this process to a reputable broker can ensure a smooth crossing.