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Cross-border Trade Valuation

In last month’s Cross-border Trade Val-bytes, we saw an introduction to Cross-border Trade Valuation. I hope my previous introductory article helps you to understand the significance of valuation in international trade. In this month’s article, we will try to boil down the valuation in a more comprehensive manner.

Valuation is broadly defined into two parts in the form of rules namely:

Customs Valuation (Determination of Value of Exported Goods) Rules, 2007

The value of the export goods shall be based on the transaction value of goods of like kind and quality exported at or about the same time to other buyers in the same destination country of importation or in another destination country of importation adjusted. While determining the value of export goods several factors are taken into consideration like commercial levels, quality levels, differences in composition, quality, and design between the goods to be assessed and the goods with which they are being compared, differences in domestic freight, and insurance charges depending on the place of exportation, etc.

Customs Valuation (Determination of Value of Imported Goods) Rules, 2007

Here, the valuation is based on related party transactions and unrelated party transactions. Many times, during the importation of goods, there are high chances of dumping of goods into importing country. This leads to the imposition of various additional duties such as Anti-Dumping Duty, Safeguard Duty, etc. To prevent the act of dumping, valuation attracts special attention at the time of importation of goods.

I hope this concise article will add value to your knowledge. In my next column, we shall dig down a bit into valuation terminology. Until then goodbye.

If you have any suggestions, advice, or if you wish to refer to any other cross-border trade-related topic, you can always reach out to me here.

Thank you!

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