What are examples of additions to the transaction value?

In the context of customs and trade, the transaction value is the price actually paid or payable for goods when sold for export to the country of importation, plus certain additions that are specified by customs regulations. Options that qualify as additions to transaction value typically include fees that are part of the business transaction but might not be included in the initial price.

Commissions and royalties are significant examples of additions to the transaction value. Commissions are payments made to agents involved in facilitating the transaction and can influence the total cost of the goods, while royalties can pertain to fees owed for the use of intellectual property associated with the products being imported. Both of these costs are considered essential in assessing the overall expenses linked to the imported goods, hence their inclusion as additions.

Discounts and local transportation fees generally do not add to the transaction value since discounts reduce the price, and local transportation fees could fall under separate, deductible costs depending on the customs regulations in place. Insurance premiums and handling charges are also typically addressed in other parts of the pricing structure rather than being added to the transaction value. Customs duties and tariffs, while related to the overall cost of importation, are taxes imposed by authorities after the transaction value has been determined and thus do not form part of the transaction