Plain meaning
A customs valuation method based on production costs, profit, and general expenses for imported goods.
Also called
computed value
Key points
- The method uses the cost or value of materials and production, plus profit and general expenses.
- It can require detailed information from the foreign producer.
- It is generally used after earlier valuation methods are unavailable or unsuitable.
- The method can be difficult in practice because cost data may be sensitive or hard to obtain.
Why it comes up
Computed value can matter for related-party or manufactured imports where other valuation methods cannot be used.