WTO Customs Valuation Agreement
WTO Customs Valuation Agreement is the Agreement on Implementation of Article VII of GATT 1994, in force since January 1, 1995, which sets uniform rules for determining the customs value of imported goods.
What it requires
Customs must use transaction value, the price actually paid or payable adjusted for items such as assists, royalties and selling commissions and, at each member's option, freight and insurance to the place of import. If it cannot be used, fallback methods apply in order: identical goods, similar goods, deductive value, computed value and a reasonable fall-back method. Related-party prices are accepted if the relationship did not influence the price. Arbitrary, fictitious and minimum values are prohibited.
Why it matters
Customs value is the base for duty and often import VAT, so these rules decide how much tax a cross-border order pays. The US and Canada value imports without international freight, while the EU and UK include freight and insurance to the border, so the same shipment has different duty bases. A marketplace seller shipping DDP to the EU must include international shipping in customs value, while the same goods entering the US would not. Getting this right avoids underpayment penalties and refund claims.
Related laws
Sources
Not legal advice.