What is the Customs Valuation Agreement?
The Customs Valuation Agreement is an international trade law that deals with how the value of goods is determined during international customs procedures. This agreement is in place to protect countries from trade disputes that may arise from differences in value for goods being imported and exported. The agreement was created in the 1970s by the World Customs Organization to ensure a fair and consistent approach to customs valuation processes. In Pennsylvania, the Customs Valuation Agreement is part of the World Trade Organization Agreement on Valuation, otherwise known as the Valuation Agreement. This agreement sets the standards for how goods should be valued when they cross international borders. These standards are in place to prevent one country from undervaluing its exports and unfairly competing with other countries. The Valuation Agreement requires that imports and exports are valued at the transaction value of the goods, which is the price paid for them in a sale between two independent parties, or and other acceptable methods if the transaction value is not available. Under the Valuation Agreement, all countries must adhere to the same standards for valuing imports and exports. This ensures that all countries are subject to the same rules and that each country is not taking advantage of any discrepancies in the pricing of goods to gain a competitive advantage. The Customs Valuation Agreement is an important international trade law that helps promote fair competition between countries and prevents unfair pricing.
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