Study Guide
9. Method II and III: Identical and similar goods
These two methods are treated together because the application of each method is identical. The only difference is the definition of "identical" and "similar."
If transaction value cannot be used (for one of the four reasons in Article 1, or because there is no selling price), the first alternative is Article 2 (identical goods). If a value still cannot be found, the next alternative is Article 3 (similar goods).
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Note: How these differ from Article 1 Article 1 determines transaction value from the price actually paid or payable for the imported goods themselves. Articles 2 and 3 instead borrow a previously accepted transaction value (under Article 1) from another import of substitute goods. Therefore, Customs must find an already-accepted value for identical or similar goods. |
These alternatives usually involve consultation between Customs and the importer. Either side may hold information about the transaction value of identical or similar goods that the other does not and sharing it can help establish which goods qualify.
A key operational requirement is that the comparison value must be a previously accepted transaction value under Article 1 in the country of importation. Customs cannot construct or estimate a value, and hypothetical prices cannot be used. In practice, the availability of qualifying identical or similar goods is often the limiting factor, especially where import volumes are low or product ranges change frequently.