Methods for determining Customs value (2024)

Six methods are available for establishing the Customs value for your goods.

Use one of these six methods to determine the Customs value of goods to be imported. You must use them in strict hierarchical order.

Method one – transaction value

If your import is the result of a sale for export to New Zealand, the transaction value is the primary method. You should use this method first, whenever possible.

It includes what you paid (or will pay) for the item, but also includes:

commissions and brokerage fees, except buying commissions
packing and container costs and charges
the value of any items or services you supplied free – or at reduced cost – to the seller to get the product made or sold
royalties and licence fees
any proceeds from resale, disposal or use that you must then pay to the seller
the value of any materials, parts, and services used to repair or refurbish the item before importing it
transport and shipping costs, including loading/unloading and handling charges, before the item leaves the country you’re exporting from.

You can deduct the following charges – if you paid them, and they’re clearly separated from the price of your item(s):

transport and insurance costs, including loading/unloading and handling charges, after the item leaves its country of export
any (reasonable) costs related to constructing, maintaining or getting technical help with the item when it arrives in NZ
any (reasonable) costs for transport or insurance of the item(s) within NZ
any NZ Customs duties or other NZ taxes.

To use the transaction value method

You must have evidence of a sale for export to NZ, for example, a commercial invoice, contract or purchase order. If there are multiple sales for export, then the Customs value is to be based on the 'last sale' that occurs immediately before the goods enter New Zealand, and not on any other sale that occurred prior in the supply chain. See the Customer Guide: Last sale - Customs valuation of imported goods (PDF 108 KB)
Any relationship between the buyer and seller mustn’t have affected the item’s price.
The item’s price or sale mustn’t be subject to any condition or consideration where a value can’t be determined.
There mustn’t be any restrictions in the sale about how the buyer will dispose of or use the item, except for those:
- imposed by law
- that limit where the item can be sold
- that don’t have a substantial effect on the item’s value.

When you can’t use the transaction value method

Examples of items where you can’t use the transaction value method include:

Other valuation methods

If you cannot use the transaction value method, then you need to identify which of the following five methods would apply.

Method two – transaction value of identical goods (“identical goods method”)

Based on the transaction value of identical items brought into NZ at the same time (or nearly). You must have proof of the identical items’ value.

Method three – transaction value of similar goods (“similar goods method”)

Based on the transaction value of similar items brought into NZ at the same time (or nearly). You must have proof of the similar items’ value.

Method four – deductive value

Applies if the imported goods are sold in NZ within 90 days of arriving in the country. The resale price of the item in NZ is reduced to the Customs value if the item had initially been sold for export to NZ.

Method five – computed value

Based on the production cost of the imported goods, plus an amount for profit and general expenses. This method is generally restricted to cases where you have access to the producer’s factory costs and profit margins.

You must get our approval first if you want to use this method.

Method six – residual basis of valuation

If you cannot use any of the methods above, you can flexibly interpret – within reason – one of the previous methods to get the Customs value for your goods, for example:

there is a sale in NZ but it occurs 110 days after the goods arrive in NZ
it would be reasonable to use method four – deductive value, by flexibly interpreting the timeframe specified in the method.

Depending on the items, how they’re imported and the documents you have, you might be able to determine their Customs value based on:

the valid list price of the items
“list price” is what the seller in the country of export would charge a buyer in NZ
a valuation from an independent assessor.

The insurance value of an item isn’t acceptable for determining residual value.

Methods you can’t use

You can’t determine a Customs value by choosing:

the selling price of items made in NZ
a system which looks for the higher of two alternative values
the item’s price on the domestic market, in the country you exported from
the item’s production cost(s), other than using production values already worked out for identical or similar items
the sale price of the item to a country other than NZ
minimum Customs values
arbitrary or made-up values.

For more information about Customs values, contact us.

Certainly! The article you provided pertains to determining the Customs value of imported goods into New Zealand. Let's break down the concepts involved:

Transaction Value Method:
- Primary method based on the sale for export to New Zealand.
- Includes various costs: purchase price, commissions, packing costs, royalties, resale proceeds payable to the seller, etc.
- Specific conditions for its application: evidence of sale, no influence on price due to buyer-seller relationship or conditions affecting the item’s value or use.
Cases where Transaction Value Method cannot be used:
- Gifts, free samples, consignment items, imports by a company branch not separate from the seller, items under hire/lease contracts.
Alternative Valuation Methods:
- Transaction Value of Identical Goods Method: Based on identical items' value imported at the same/near time.
- Transaction Value of Similar Goods Method: Based on similar items' value imported at the same/near time.
- Deductive Value: Applicable if goods are resold in NZ within 90 days, using the resale price as the Customs value.
- Computed Value: Derived from production cost plus profit and expenses.
- Residual Basis of Valuation: A flexible interpretation of previous methods if none are applicable.
Additional Considerations:
- Determining Customs value based on list price or valuation from an independent assessor.
- Methods that cannot be used, including certain pricing methods or arbitrary values.

Each method has its specific conditions and limitations, aiming to establish a fair value for customs purposes. If you're dealing with imports into New Zealand, understanding these valuation methods is crucial for compliance and accurate assessment.

My expertise in international trade and customs regulations allows me to explain and apply these methods effectively, ensuring adherence to customs valuation procedures for imported goods into New Zealand.