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The Customs value is the value to be determined for the purpose of assessing import taxes and duties. The current valuation system of Thailand is based on the WTO/GATT Valuation System that went into effect on 1 January 2000. It enables fair, uniform, and neutral valuation of goods in recognition of commercial reality and prohibits arbitrary or fictitious Customs values. Before the implementation of Gatt Valuation System, the valuation system of Thailand was based on the notional concept of "true market value".

How is the Customs value determined?

Under the GATT Valuation System, the Customs Value of imported goods is the "transaction value". Accordingly, the transaction value is the usual method for establishing the Customs value. It is the price actually paid or payable for imported goods. The transaction value can also be adjusted by the addition of other charges including commissions, assists (materials supplied by the importer), packing costs, proceeds of resale accruing to the seller, inland freight charges (paid to the seller), royalties, and license fees. In addition, the acceptance of transaction value is also subject to certain conditions viz.:

There are no restrictions as to the use of the goods by buyers, except those required by laws;
The sale or price is not subject to some conditions or considerations for which a value of goods can not be determined;
There are no parts of any subsequent resale of goods will accrue, directly or indirectly to the seller; and
The buyer and seller are not commercial-related.

Where the transaction value cannot be applied, the following methods are used in sequential order of application:

Transaction Value of Identical Goods (i.e.,the transaction value of identical goods sold for export to Thailand)

Transaction Value of Similar Goods (i.e.,the transaction value of similar goods sold for export to Thailand)

Deductive Value (i.e.,the sale price of the goods in Thailand adjusted for costs incurred after shipment)

Computed Value (i.e.,value based on cost of production, general expenses and profits in country of origin relating to the imported goods)

Fall Back Value: The value is determined by Customs and based on flexible interpretation of all the previous methods. Nevertheless, under this method, no Customs value shall be determined on the basis of:

	(a) Price of similar goods produced in Thailand
	(b) A system which accepts the higher of two alternative values;
	(c) Price of same goods on the domestic market of the country of exportation;
	(d) The cost of production other than computed value;
	(e) Minimum Customs values; and
	(f) Arbitrary or fictitious values.

Where a dispute arises between importers and Customs officers regarding the values of any particular products or articles, the importers can file an appeal to the Customs Department within 30 days after receiving Valuation Notification from Customs officers.

Flow Chart of Valuation Appeal

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