Page Content


What is Valuation?

Customs values are set by the General Agreement on Tariffs and Trade (GATT) valuation code, which involves six valuation methods.
The GATT Agreement on customs valuation has been accepted by all major trading countries.
The Valuation Agreement prescribes six methods of valuation which must be applied in strict hierarchical order. Thus, if the transaction value cannot be ascertained in terms of Article 1, Article 2 must be tried, and so on. The methods, in order of precedence, are:
  1. The transaction value of the goods, i.e. the price actually paid or payable
  2. The transaction value of identical goods
  3. The transaction value of similar goods
  4. The “deductive” method (where the customs value is derived from the selling price of the imported goods in the Republic)
  5. The “computed” method (where the value is derived from the built-up cost of the?imported goods);
  6. The so-called “fall back” method, being one of the other five methods applied more flexibly.
However, the majority of goods are valued using method one, which is the actual price paid or payable by the buyer of the goods. The "free on board" price forms the basis for the value, but allows for certain deductions (such as interest charged on extended payment terms) and additions (such as certain royalties).
Customs officials pay particular attention to:
  • The relationship between the buyer and seller
  • Payments outside of the normal transactions (such as royalties and licence fees)
  • Restrictions that have been placed on the buyer.
These factors can result in the price being increased for the purpose of determining customs value, directly affecting the duty payable.
For more information, refer to the Valuation of Imports and Method 1 Valuation of Imports policies.

Methods of Customs valuation of imported goods

Six methods?of valuation are?defined in the Act and they need?to be applied in sequential order:
  • Method 1?is called Transaction value?method,?and is the primary method which?must be applied?whenever the conditions as prescribed are fulfilled?(Section 66(1)),
  • Method 2 is called similar goods value method (Section 66(4))
  • Method 3 is?called similar goods value method (Section 66(5))
  • Method?4 is called deductive value method (Section 66(7))
  • Method?5 is called computative value method (Section 66(8))
  • Method 6 is called fall-back value method (Section 66(9) which can only be applied? if all the previous methods cannot be used.
One exception is that the sequence of the deductive value method and te computed value method may be reversed at the request of the importer in terms of Section 66(6).
Last Updated: 16/07/2018 4:27 PM     print this page ?
SARS eFiling eFiling Login eFiling Register Now eFiling Forgot Password eFiling Forgot Username E@syFile

  • 【北京海汇恒通车型报价】北京海汇恒通综合店车型价格 2018-12-14
  • 对手的表扬是最好的批评 2018-12-14
  • 2017年度合肥市政务微信十强名单公布 2018-12-13
  • 江西取消调整证明事项推进“一次不跑”改革新闻发布会 2018-12-12
  • 紫光阁中共中央国家机关工作委员会 2018-12-11
  • 阿里象雄文化实物资料在拉萨展出 2018-12-10
  • 人民日报:美方一意孤行必将损人害己 2018-12-09
  • 十三届全国人大一次会议在北京闭幕 2018-12-08
  • 壮阔东方潮奋进新时代-庆祝改革开放40周年 2018-12-07
  • 中信银行--北京频道--人民网 2018-12-06
  • 南通海门开展10个方面19项安全生产专项整治 2018-12-05
  • 看着就想笑这一贴证明,计划经济不是来自苏联,而是来自资本主义 2018-12-05
  • [视频]习近平打老虎动漫续集:当官要对自己狠一点 2018-12-04
  • 风水神话更危险的事,就是眼瞎,根本分不清谁对谁, 2018-12-04
  • 西藏首届科技创新创业大赛报名启动 2018-12-03
  • 397| 547| 52| 764| 371| 433| 405| 23| 576| 377|