The customs value is the base from which duty, VAT and excise are calculated. Importers often assume it is simply the invoice total. In practice it is a separate figure with its own rules, and most disputes with customs arise around it.

Six methods, applied in order

The methods are applied strictly in sequence: you may move to the next one only if the previous one cannot be used and that is justified.

  1. The transaction value of the imported goods. The primary method, used for the great majority of shipments.
  2. The transaction value of identical goods. The value of exactly the same goods imported at about the same time.
  3. The transaction value of similar goods. The same, but for goods with comparable characteristics made of the same material.
  4. The deductive method. The mark-up, costs and charges are deducted from the domestic selling price.
  5. The computed method. Production costs, profit and delivery costs are added together.
  6. The fall-back method. A flexible application of the previous ones based on the information available.

What must be added to the price of the goods

Where the buyer bears these costs and they are not included in the price, they are added to the customs value:

  • carriage and handling up to the place of arrival in Uzbekistan;
  • insurance of the cargo;
  • loading, unloading and handling en route;
  • the cost of packaging and containers, including the packing work;
  • agents’ commission, other than buying commission;
  • royalties and other payments for the use of intellectual property, where paying them is a condition of sale;
  • the value of materials, tools and designs supplied by the buyer to the manufacturer free of charge or at a reduced cost.

That last point is regularly overlooked: if you sent the supplier your own mould or provided the design, it is part of the value of the goods.

Why customs adjusts the value

An adjustment is not an accusation of under-declaring; it follows from there being nothing to support the declared price. The typical grounds:

  • the declared price is noticeably below the level at which such goods are usually imported;
  • a relationship between seller and buyer that influences the price;
  • discrepancies between the contract, the invoice and the payment documents;
  • no documents on transport costs where delivery is on EXW or FCA terms;
  • a discount that the terms of the deal do not explain;
  • payments to third parties that the contract does not mention.

What to do when the value is adjusted

  1. Do not accept it automatically. The declarant has the right to prove the declared value, and that right should be used.
  2. Gather the evidence. The manufacturer’s price list, correspondence agreeing the price, the export declaration of the country of dispatch, payment orders, bank statements, carrier and insurer invoices.
  3. Explain the discount. Volume, a long-term contract, a seasonal sale — all of these are legitimate grounds if they are recorded in the documents.
  4. Release the cargo against security if necessary. This lets you take the goods and continue proving your case without paying for storage.
  5. Appeal the decision. If the arguments are not accepted, the decision can be challenged with a higher authority or in court.

How to reduce the risk in advance

Almost every adjustment is predictable before the declaration is filed. We look at the chain «contract — invoice — payment — transport documents» and tell you in advance where the supporting evidence is missing. If the price is genuinely below the market for objective reasons, we build the evidence before the cargo arrives, not after the inspector has issued a demand.

Send us the contract and the invoice — we will assess the risk of an adjustment for your shipment and tell you which documents to request from the supplier while the cargo is still to leave.