What does the term “Valuation” involve in customs?

The term “Valuation” in the context of customs primarily involves determining the value of imported goods for the purpose of assessing duties. This is a critical aspect of customs regulation because the value assigned to imported items directly influences the amount of duty that must be paid. Correct valuation ensures that duties are applied fairly and consistently according to international trade agreements and local laws.

Valuation is not concerned with the safety of the goods, how they are shipped, or their country of origin. Instead, it focuses specifically on monetary value, which is essential for customs clearance and revenue collection. Knowing the accurate value of goods allows customs authorities to verify that tariffs and other import fees are calculated based on the correct information, reflecting the actual worth of the goods entering the country.