Transaction Value — Primary Appraisement Method

Transaction value is the price actually paid or payable for the merchandise when sold for exportation to the United States, plus certain statutory additions. It is the preferred (first) method of appraisement used by CBP. Transaction value can only be used when there is a bona fide sale between the buyer and seller, and when certain conditions are met regarding the relationship between the parties.

The following must be added to the price paid/payable: (1) Packing costs incurred by the buyer; (2) Selling commissions paid by the buyer; (3) Assists — goods or services supplied by the buyer free or at reduced cost for use in production; (4) Royalties and license fees related to the imported goods that the buyer must pay as a condition of sale; (5) Proceeds of subsequent resale that accrue to the seller. Buying commissions are NOT included.

Transaction value cannot be used when: (1) there are restrictions on the buyer's disposition or use of the goods (with exceptions); (2) the sale is subject to conditions for which a value cannot be determined; (3) proceeds of resale accrue to the seller and cannot be quantified; or (4) the buyer and seller are related and the relationship influenced the price. When transaction value fails, alternative methods must be applied in sequence: Transaction Value of Identical Goods → Transaction Value of Similar Goods → Deductive Value → Computed Value.