Computed Value is the fourth method in the customs valuation hierarchy under 19 U.S.C. § 1401a(e). It applies when transaction value, the transaction value of identical or similar merchandise, and (unless reversed by the importer) deductive value cannot be used.
Computed value is built from four components:
- Cost or value of materials, fabrication, and other processing used in producing the imported merchandise
- Profit and general expenses equal to that usually reflected in sales of merchandise of the same class or kind by producers in the country of exportation
- Assists apportioned to the merchandise, if not already in the cost
- Packing costs
The "usual" profit and general expenses are determined by reference to the producer's actual results, provided they are consistent with industry norms in the country of exportation. CBP can examine the producer's books and records to verify.
Computed value requires extensive cooperation from the foreign producer — internal cost data, audited financial statements, and detailed cost accounting. For related-party transactions where the importer has access to the seller's books, computed value is often easier than deductive value. For arm's-length transactions where the foreign producer won't disclose its cost structure, computed value is functionally unavailable.
Under § 1401a(a)(2), the importer may elect to apply computed value before deductive value — and this election is binding for that entry. Common scenarios where computed value is used include consignment imports from a related foreign affiliate and tolling arrangements where the U.S. principal owns the materials.