Do not copy a quotation total into a customs-value field without checking the transaction and applicable valuation requirements. The supplier’s quoted price, the customs value and your landed-cost budget answer different questions. Keep the documentary bridge between them visible rather than inventing a duty amount from an advertised price.
Use the WTO framework within its scope
The WTO Agreement on Implementation of Article VII of GATT 1994 sets out a customs valuation framework. Article 1 concerns transaction value subject to its conditions, and Article 8 covers specified adjustments. WTO’s technical information explains that alternative methods follow when transaction value is unavailable or unacceptable. This is not permission to choose whichever method produces the lowest figure.
The destination’s implementation and the actual transaction still need examination. A quotation made before quantity, payment and shipment terms are settled is commercial evidence at that stage; it is not itself an authority’s valuation decision. Nor is a budget for storage or downtime automatically a customs-value adjustment.
Keep three columns instead of one “total cost”
| Item to reconcile | Document or question | Keep its status visible |
|---|---|---|
| Goods price | Final invoice, order and agreed payment terms | Quotation, final invoice or adjustment |
| Freight and insurance | Actual transport documents and charge scope | Included, excluded or still pending |
| Buyer-provided inputs | Any separately supplied production inputs | Facts for adviser review, not guessed additions |
| Licence or royalty arrangements | Relevant contract and connection to goods | Requires valuation review if relevant |
| Relationship of parties | Written identity and relationship information | Do not assume a price is accepted or rejected |
| Local budget items | Storage, financing and operating assumptions | Business budget, with treatment unresolved |
A reproducible reconciliation method
Give the purchase a reference and preserve the first quote. When the final invoice arrives, list every change: quantity, model, unit price, currency, delivery basis and any separately invoiced charge. Attach the relevant document to each difference. A note saying “supplier confirmed” should identify the dated communication and the precise question answered.
Keep estimated and actual amounts in different fields. If freight is unknown, write “pending quotation” rather than using a round number that looks confirmed. Where a cost needs professional interpretation, describe the underlying arrangement and ask the responsible customs specialist how it is treated. The checklist does not classify each possible charge for every country.
Use a separate landed-cost worksheet for comparing the commercial offers. Its purpose is to show the buyer’s full budget, including documented charges and clearly labelled assumptions. Reconcile it to the valuation file without forcing the two totals to match. This distinction makes later corrections easier to explain.
Questions buyers ask
Does a low invoice always mean a low assessed value?
No. The applicable method, conditions and adjustments matter; a low figure alone does not establish acceptance.
Can I calculate the duty from this article?
No product code, destination tariff or transaction value has been determined here. DFC Cari has not filed a declaration or assessed the reader’s tax liability.
Sources and scope
- WTO: Agreement on Implementation of Article VII of GATT 1994 — GATT 1994 agreement text; reviewed 5 October 2026.
- WTO: Technical Information on Customs Valuation — live technical guidance reviewed 5 October 2026; no update date shown.
- WCO: Customs Valuation FAQ — live FAQ reviewed 5 October 2026; no update date shown.
Source review: 5 October 2026. This is an editorial evidence-organising guide; it does not establish the outcome of a particular purchase or customs declaration.
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