Also known as: Reconstructed value, Fifth valuation method
The fifth WTO customs valuation method that determines customs value by adding the production costs of imported goods: materials, manufacturing, producer's profit and general expenses, plus transport and insurance costs to the point of importation.
Computed value (also called reconstructed value) is the fifth customs valuation method established in Article 6 of the Agreement on Implementation of Article VII of GATT 1994. It applies when customs value cannot be determined through the four preceding methods (transaction value, identical goods, similar goods, and deductive method).
Computed value is regulated by Article 77 of Mexico's Customs Law. The importer may request inverting the order of methods 4 and 5, applying computed value before the deductive method, per Article 78-A.
The main difficulty with computed value lies in requiring access to the foreign producer's accounting information, which they are frequently unwilling to share. For this reason, this method is rarely used in practice, being reserved for related-party transactions where the parties wish to demonstrate that their transfer price reflects actual costs.
Customs Value
The monetary amount on which import duties are calculated, determined according to the WTO Valuation Agreement with transaction value as the primary method.
ValuationTransaction Value
The price actually paid or payable for imported goods, adjusted as prescribed by the WTO Valuation Agreement. It is the primary method for determining customs value.
ValuationCustoms Valuation
Process of determining the customs value of imported goods using the six methods of the WTO Valuation Agreement, used to calculate duties and taxes.
ValuationDutiable Charges (Assists)
Costs and values that must be added to the price actually paid or payable for imported goods to determine customs value, including commissions, packing, assists, royalties, licenses, and certain transport and insurance costs not included in the invoice price.