Primary method
Transaction value starts with the price actually paid or payable
For qualifying transactions, US law generally starts with the price actually paid or payable for merchandise sold for exportation to the United States, then applies required additions. The transaction must satisfy the applicable conditions, including rules for related parties and restrictions.
Potential additions
Review packing, selling commissions, assists, royalties and proceeds
Required additions can include packing costs, selling commissions, the apportioned value of assists, qualifying royalties or license fees, and proceeds of later resale that accrue to the seller. The exact treatment depends on the facts and governing valuation rules.
- Preserve contracts, invoices and payment evidence.
- Document assists such as molds, tools, designs or materials supplied by the buyer.
- Review related-party pricing and any conditions affecting acceptability.
Freight and insurance
Do not add the same amount twice
International freight, insurance and other costs need fact-specific treatment under US valuation rules. TariffCalc asks for customs value, shipping and insurance as separate user inputs and warns against entering an amount that is already included in another field.
The calculator does not derive a legally correct customs value from a commercial invoice. The user must enter a supported value and preserve the evidence.
Alternative methods
If transaction value cannot be used, other methods follow an order
US valuation rules provide alternative methods, including transaction value of identical or similar merchandise, deductive value, computed value and a fallback method. Selecting and documenting the correct method can require professional review.
Questions
Frequently asked questions
Is customs value the same as landed cost?
No. Landed cost can include duty, additional tariffs, fees, freight and insurance. Customs value is the legally determined value base used for relevant customs calculations.
Can I always use the commercial invoice total?
No. The invoice is evidence, but required additions, exclusions, related-party conditions and the applicable valuation method can change the customs value.
Does TariffCalc calculate customs value for me?
No. TariffCalc calculates supported amounts from the customs value the user enters and keeps separately entered freight and insurance visible.