What is the appraised value of goods based on?

The appraised value of goods is primarily based on the fair market value at the time of import. This means that when goods arrive at a country’s border, customs officials will assess the value of the goods based on what they would typically sell for in the domestic market. This valuation takes into account various factors such as the current demand for similar goods, the condition of the imported items, and any applicable economic factors influencing pricing at that time.

This fair market value approach ensures that the assessment reflects the actual value for which the goods could be sold in the market at the moment they are brought into the country, rather than relying on historical purchase prices or costs that may no longer be relevant. By focusing on the fair market value at the time of import, customs authorities can properly evaluate and calculate tariffs and taxes owed on the goods, aligning with current economic conditions and market realities.