Customs Value (also called appraised value or entered value) is the value of imported merchandise as determined by CBP under 19 U.S.C. § 1401a. It is the dollar amount on which ad valorem duties, the Merchandise Processing Fee, Section 301 and Section 232 tariffs, and antidumping and countervailing duties are calculated.
Section 1401a sets out a strict hierarchy of valuation methods, applied in order:
- Transaction value of the imported merchandise
- Transaction value of identical or similar goods
- Deductive value (resale price in the U.S. less allowable deductions)
- Computed value (cost of materials, fabrication, profit, and general expenses)
- Derived ("fallback") value under § 1401a(f) — a reasonable method consistent with the WTO Valuation Agreement
The importer must reasonably believe transaction value can't be used before moving down the hierarchy. The importer may, however, elect to apply computed value before deductive value.
Customs value is distinct from "commercial invoice value" — the invoice is the starting point, but the entered value must include statutory additions (assists, royalties, packing, etc.) and exclude non-dutiable charges (international freight, insurance, U.S. inland transportation, buying commissions).
Reporting an incorrect customs value — even by omission — can trigger penalties under 19 U.S.C. § 1592. High-value or complex entries are often subject to value reconciliation under the Reconciliation program.