Customs value
Also: entered value · dutiable value · transaction value
The value of imported goods that duty and MPF are charged against — usually the transaction value (the price actually paid or payable).
Definition
Customs value is the base that ad valorem duty and the Merchandise Processing Fee are calculated on. The primary method is transaction value: the price actually paid or payable for the goods when sold for export to the US, with certain additions like assists and packing.
Whether freight and insurance sit inside the value depends on your Incoterms. Getting the value right matters because every percentage-based charge scales from it.
Worked example
If you pay a supplier $20,000 for goods on FOB terms, the customs value is generally $20,000, and a 5% ad valorem duty would be $1,000.
Related codes & tools
Sources
Definitions are informational, not customs rulings. Confirm rates against the schedule of record and see our methodology & disclaimer.