Study Guide

Article 15 of the Agreement defines “identical” and “similar” goods.

What makes goods “identical”?

Conditions for the identical goods method

✓       The goods are identical to the imported goods being valued ✓       They were produced in the same country as the goods being valued ✓       They were exported at or about the same time (“about” means 30 days before and/or after importation) ✓       They were sold in substantially the same quantity and at the same commercial level (adjustments can be made for differences in quantity and commercial level) Note: The lowest value rule  Where there are two or more transaction values for identical goods, the lowest of such values will be used. This is an important principle in the administration of the WTO Valuation Agreement.

What makes goods “similar”?

Similar goods are not alike in every respect, but they share like characteristics and like component materials that let them perform the same functions and be commercially interchangeable with the imported goods.

All of the conditions (i.e. previously accepted transaction value, time element, etc.) set above for identical goods apply in the same manner for the similar goods method.

Where identical or similar goods were sold in different quantities or at a different commercial level, adjustments may be made  but only if they are objective, quantifiable, and based on demonstrable data. If reliable adjustments cannot be made, the method cannot be applied. This is a frequent operational barrier, particularly for goods with negotiated pricing, customised specifications, or volatile market conditions.