8. Method I: Transaction value

8.10. Additions to the price actually paid or payable

The transaction value is the price actually paid or payable, adjusted by adding certain elements under Article 8 of the Agreement. Additions are not always necessary; it depends on the facts of the sale contract and its terms.

Article 8 additions fall into two categories: those that must always be added (compulsory adjustment), and those that apply only in countries that include overseas transport in the Customs value (optional).

Compulsory — always added

Optional — CIF countries only

•     Selling commissions and brokerage

•     Cost of containers and packing

•     Value of assists used in producing or selling the goods

•     Royalties and licence fees

•     Proceeds of resale or use

•     Cost of transporting the goods to the port or place of importation

•     Loading, unloading and handling charges for that transport

•     Cost of insurance

Countries may choose to include (CIF) or exclude (FOB) the cost of overseas freight and insurance. Countries that include overseas transport require the optional additions shown above.

Note:

The elements Article 8 lists are the only additions allowed, and each can be made only on the basis of objective and quantifiable data. Where that data is not available, the transaction value method cannot be used.