Q1. What is “Customs Value”?

Ans: “Customs Value” means the value of goods for the purposes of levying ad valorem duties of customs.

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Q2. What are Ad valorem duties?

Ans: Ad valorem duties of customs are duties levied according to the value of goods and are usually expressed as percentages of value. Such duties are distinct from specific duties that are based on specific measures of goods such as number, weight, volume, area, capacity etc. There can also be composite duties that are partly ad valorem and partly specific. Customs tariff of a country indicates what kind of duties are levied on different kinds of goods. However, barring exceptions, most countries generally levy customs duties on ad valorem basis.

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Q3. Is it necessary for an importer to declare the value of imported goods to customs and what evidences does he/she need to produce in support of the declaration?

Ans: Yes, an importer or an authorised agent needs to declare the value of imported goods as a part of goods declaration at the customs entry point along with a supporting invoice. Many' countries also require a separate valuation declaration form to be filled either in respect of each consignment or in respect of a series of consignments imported over a period. Besides customs officials may also require additional documents and information in a particular case as in the case of related party sales etc or where they have a doubt regarding the truth and accuracy of the declaration.

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Q4. Should an importer declare a value for goods that are exempted from customs duty or are subject to specific duties?

Ans: Yes, as most countries require a declaration of value of all imported goods for compilation of Trade Statistics. Some countries may also require such a declaration for tariff quota, import licensing or exchange control purposes.

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