customs value

Definition

Value of imported goods as appraised by the customs and used as the basis for assessing the amount of import duty and other taxes. It may be computed in several ways, but the most-preferred method is transaction-value which (in addition to the price paid by a buyer to a seller) includes other costs incurred by the buyer, such as packing costs, license fee or royalty, and any other sum(s) that accrue to the seller. It is the customs officer (and not the importer, exporter, or customs broker) who has the final say in assigning this value. Also called customs import value.