What is the hierarchy of appraisement designed to determine?

The hierarchy of appraisement is a structured approach used by customs authorities to evaluate the value of imported goods. Its primary goal is to arrive at the most accurate import value, which is essential for determining the appropriate duties and taxes that need to be applied. This hierarchy emphasizes accuracy and compliance with customs regulations, ensuring that the valuation process reflects the true worth of the goods being imported.

In practice, the hierarchy includes various methods of valuation, such as transaction value, which is typically the price paid or payable by the buyer to the seller, adjusted for certain factors. If transaction value cannot be determined, customs will refer to alternative methods, following a set order of precedence. This methodical approach helps minimize discrepancies and disputes over import values, ensuring that both customs and importers agree on the valuation. By focusing on achieving the most accurate import value, the hierarchy of appraisement supports fair and consistent enforcement of trade regulations.