Okuzeka
International Trade vocabulary · Customs and Tariffs

Customs value

Meaning in international trade, with examples

nounCommon term

In international trade, customs value means: The value of imported goods that customs uses as the basis for calculating duties, normally the price paid with certain costs added or removed.

In Turkish: gümrük kıymeti, kıymet

How it is used

Most countries follow the WTO Valuation Agreement, where the main method is the transaction value. In the EU and Turkey, freight and insurance up to the border are included, so a FOB invoice value is adjusted. Royalties and some commissions can also affect it.

Example sentences

  1. The customs value is the invoice price plus freight and insurance to the border.

  2. Customs questioned the low invoice price and increased the customs value.

Common collocations

  • determine the customs value
  • customs value of the goods
  • transaction value
  • adjust the customs value
  • customs dutyThe tax paid to customs on imported goods, calculated from their customs value, their HS code and sometimes their origin.
  • commercial invoiceThe seller's final bill to the buyer for the goods shipped, showing the description, quantity, price and terms of sale; customs uses it to calculate duties.
  • customs declarationThe official form, usually submitted electronically, in which a company tells customs what goods it is importing or exporting, with their value, origin and classification.
  • CIFCost, Insurance and Freight: an Incoterms rule in which the seller pays sea freight and minimum insurance to the destination port, but the risk passes to the buyer once the goods are on board at the port of loading.

More terms: Customs and Tariffs

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level: