What is the most commonly used method to calculate import/export prices?

In Washington, the most commonly used method to calculate import and export prices is the World Trade Organization (WTO) Valuation Agreement which follows a customs-based practice for determining the import and export prices of goods. This is the most accepted method because it is in line with the international trade laws established by the WTO and is recognized by most countries. The WTO Valuation Agreement is based on the “transaction value” method. This method uses the price of the good that was actually paid or payable in its original purchase to calculate the import and export value. This value is then used as the basis for all additional fees, taxes and other costs associated with the trade including the cost of freight, insurance and other transportation expenses. In addition to the “transaction value” method, other pricing methods may also be used in Washington. These include the “cost, insurance, and freight” (CIF) method, the “market price” method, and the “residual” method. All of these methods must still adhere to WTO international trade laws and are used in coordination with the “transaction value” method in order to ensure that the final value is agreeable to both the importing and exporting countries.

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What is the most commonly used method to calculate import/export prices?

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