Customs Valuation is a means of determining a Customs Value for the purpose of levying ad valorem duties
Customs value of imported goods has to be determined in accordance with the national laws of the country.
PNG's laws for Customs Valuation is called the Customs (Ad Valorem Duties) Regulations 1987.
This legislation is based on the WTO instruments:
Article VII of GATT lays down the principles that the Customs Value must not be arbitrary, fictitious or based on value of indigenous goods in the importing country. It should be real and based on the actual import or like goods. It should be derived from an actual sale or offer of sale in normal competitive business conditions. And consistent with commercial business practices.
The Customs Value is based on the price paid or payable for the goods when sold for export to PNG. Simply, the transaction value of the goods on the market when sold to the importer in PNG.
But this transaction value must not be subject to any conditions or influences that effects that transaction value.
And this transaction value is also subject to certain adjustments that must be made in line with PNG Valuation legislation.
The Transaction Value is the price paid or payable for the goods when sold for export to the country of importation. And needs to be adjusted according to certain factors contained in National legislation.
If the Customs Value is not ascertained under the Transaction Value Method, the Valuation Agreement provides provisions to determine a Customs Value using (5) other methods, that still has the Transaction value as the basis, in sequential order until a value is reached.
There are certain provisos that are taken into consideration when determining Customs Value and when adjusting that Customs Value.
Customs must be satisfied with the truth and accuracy of declared values, compliance with valuation conditions and availability of objective and quantifiable data/evidence of the sale transaction. The following conditions must be satisfied:
Other Valuation Factors that are taken into account when adjusting a Customs Value are:
The dutiable factors are inclusions, and the non-dutiable factors are exclusions in the determination of a Customs Value.
These factors must be clearly shown and adequately described on the invoice, established prior to importation and are directly related to the goods being valued before they can be allowed in the determination of Customs Value.
For further information on valuation matters please contact the Tariff and Trade Branch.