Customs and International Trade
3. Valuation
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 18 Jul 2015
- Goods brought into Australia (imported) may be subject to customs duty (import tax). Imported goods are assigned a ‘customs value’ and the duty payable is calculated as a percentage of this amount.
- There are several ways in which the customs value of goods might be determined.
- The most common method is the ‘transaction value’. This involves calculating the duty as a percentage of the price of the imported goods after certain adjustments are made.
- The transaction value method can only be used where the transaction is at arm’s length. This means that the buyer and seller must not have a relationship that may influence the price of the goods.
- The process of valuation is complex. Incorrect valuation can result in penalties and prosecution. Importers should seek advice from a licenced customs broker.
- A lawyer specialising in customs law may also be able to assist you with valuation issues. You can look for one near you in our free Find a Lawyer directory.
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