Transaction Value is the preferred method of appraising imported merchandise under 19 U.S.C. § 1401a(b). It is the price actually paid or payable for the goods when sold for export to the United States, plus five statutory additions to the extent not already included in the price:
- Packing costs incurred by the buyer (packing costs)
- Any selling commission paid by the buyer
- The apportioned value of any assists supplied by the buyer
- Any royalties or license fees the buyer must pay as a condition of sale
- Proceeds of subsequent resale, disposal, or use of the goods that accrue to the seller
Buying commissions are not statutory additions and remain non-dutiable.
Transaction value cannot be used when there is no bona fide sale for export, when restrictions on disposition affect the price, when the sale is subject to conditions whose value cannot be determined, when proceeds accrue to the seller and can't be quantified, or when the parties are related and the relationship influenced the price.
When transaction value can't be applied, CBP moves down the statutory hierarchy: transaction value of identical or similar goods, then deductive value, then computed value, and finally a fallback "derived" method under § 1401a(f). The hierarchy is sequential — each method must be ruled out before the next applies, although an importer may elect to reverse the order of deductive and computed value.
Transaction value is the basis for over 90% of U.S. entries. It is reported on the entry summary and supports duty calculation, MPF, and antidumping/countervailing duty assessment.