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Customs Valuation & Landed Cost

Deductive Value

Also known as: Deductive Method

Deductive value is a secondary customs valuation method used when transaction value and the values of identical or similar goods are unavailable: it works backward from the price at which the imported goods are resold in the domestic market, subtracting elements that are not part of the customs value, such as commissions, ordinary profit and general expenses, domestic transport, and import duties and taxes. By stripping the resale price down to a border-level value, the method produces a figure grounded in real market data. It is applied only in the order set by the valuation hierarchy, after the preferred methods have been ruled out.

The JFS takeLicensed customs broker · Filer 82G

Almost nobody arrives here on purpose. You work backwards from the U.S. resale price, stripping out commissions, transport and duty — always more work than transaction value, and usually a sign something upstream went wrong.

Where it matters for compliance

  • Applied in the statutory sequence after transaction value and identical/similar goods.

Related terms

Customs ValuationCustoms valuation is the process of determining the monetary value of imported goods on which ad valorem duties and taxes are assessed, governed internationally by a valuation agreement that establishes a hierarchy of methods.Computed ValueComputed value builds the customs value from the ground up rather than from a sale price, adding together the cost of materials and fabrication in producing the goods, an amount for profit and general expenses typical of the industry, and the cost of getting the goods to the place of importation as the country's rules require.

Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.