{"id":725,"date":"2021-11-17T17:19:16","date_gmt":"2021-11-17T08:19:16","guid":{"rendered":"https:\/\/skadvisory.jp\/en\/?page_id=725"},"modified":"2026-03-17T20:10:05","modified_gmt":"2026-03-17T11:10:05","slug":"q1-calculation-methods-of-customs-value","status":"publish","type":"page","link":"https:\/\/skadvisory.jp\/en\/customs-valuation-qa\/q1-calculation-methods-of-customs-value\/","title":{"rendered":"Q1: Primary Method of Customs Valuation"},"content":{"rendered":"\n

Question 1: What kind of method shall be applied to the calculation of the Customs Value of the import goods?<\/span><\/h2>\n\n\n\n

The \"Transaction Value Based Method (Actually paid or payable + Additional costs)\" under the Japan Customs Tariff Law is the primary method that should be initially considered for application.<\/span><\/p>\n\n\n\n

Please bear in mind that the Invoice Value is not always equal to the Customs Value.<\/span><\/p>\n\n\n\n

This primary method is to calculate the Customs Value based on the \"Value of the Import Transaction<\/strong><\/span>\".<\/span><\/p>\n\n\n\n

The definition of \"Value of the Import Transaction\" <\/strong>is the price actually paid or payable by the buyer to or for the benefit of the seller for the imported goods when the import transaction has been made, adjusted by certain additional costs such as transportation costs, to the extent that such costs have not been included in the price actually paid or payable.<\/p>\n\n\n\n

Customs value  \uff1d  Transaction value  \uff1d  Actually paid or payable\u203b1  \uff0b  Additional costs\u203b2<\/strong><\/span><\/p>\n\n\n\n

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\u203b1\uff1a The price actually paid or payable is the total payment made or to be made by the buyer to or for the benefit of the seller for the imported goods. It includes a settlement by the buyer whether in whole or in part, of a debt owed by the seller and other indirect payment for the seller by the buyer. In principle, the price actually paid or payable shall not include the following charges or costs, provided that they are distinguished from the price actually paid or payable for the imported goods:

1) Charges for construction, erection, assembly, maintenance or technical assistance is undertaken after importation of the imported goods;
2) Transportation costs after importation;
3) Duties and taxes imposed on the imported goods in Japan.

However, if the price actually paid or payable will not be able to be grasped by the whole amount including the above costs, then it shall be the total amount including such costs.<\/p>\n\n\n\n

\u203b2\uff1aFor instance, transportation fee and insurance fee (CIF basis), commissions, etc.<\/p>\n<\/blockquote>\n\n\n\n

In calculating the Customs Value based on the transaction value, the calculation should be based on invoices and other documents that verify the price actually paid or payable for the imported goods and allow for the adjustment of certain additional costs such as transportation costs.<\/span> In cases where the price actually paid or payable cannot be fully determined without including the above costs, the customs value shall be determined as the total amount including such costs.<\/p>\n\n\n\n

You can find an explanation of what constitutes an \u201cImport Transaction\u201d in Question 2.<\/span><\/p>\n\n\n\n

Q&A for Customs Valuation<\/span><\/h2>\n\n\n\n
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<\/a><\/path><\/svg><\/span>Q1 - Primary Method of Customs Valuation<\/span><\/div>\n\n\n\n
<\/a><\/path><\/svg><\/span>Q2 - \"Import Transaction\" in Customs Valuation<\/span><\/div>\n\n\n\n
<\/a><\/path><\/svg><\/span>Q3 - Identical or Similar Goods Value Method for Customs Valuation<\/span><\/div>\n\n\n\n
<\/a><\/path><\/svg><\/span>Q4 - Deductive Value Method for Customs Valuation<\/span><\/div>\n\n\n\n
<\/a><\/path><\/svg><\/span>Q5 - Computed Value Method for Customs Valuation<\/span><\/div>\n\n\n\n
<\/a><\/path><\/svg><\/span>Q6 - Fall-Back Method for Customs Valuation<\/span><\/div>\n\n\n\n
<\/a><\/path><\/svg><\/span>Q7 - Customs Valuation Method for E-Commerce Goods<\/span><\/div>\n<\/div><\/div>\n\n\n\n
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ACP Service (Attorney for Customs Procedures) Import Japan<\/a><\/h4>\n\n\n\n

Foreign entity can become Importer of Record (IOR) by appointing an Attorney for Customs Procedures (ACP)<\/a><\/p>\n\n\n\n

Learn more<\/span><\/i><\/div><\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n
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We specialize in navigating complex issues at the intersection of customs procedures and taxation\u2014an area where our ability to offer practical, comprehensive support from both perspectives sets us apart. Understanding the close relationship between customs duties and national taxes (especially, Japan Consumption Tax - JCT), and addressing both in an integrated manner, is crucial in the context of international trade.<\/strong><\/p>\n\n\n\n