Which of the following can be deducted from the transaction value?

The correct option pertains to international freight and insurance as they are specifically allowable deductions from the transaction value under customs regulations. The transaction value is the price actually paid or payable for the goods when sold for export, which may include several specific costs related to the delivery of goods.

International freight and insurance directly relate to the movement of goods and providing them with the necessary coverage while in transit. According to customs valuation principles, these costs can be deducted from the transaction value because they are incurred to bring the goods to the buyer at the port of entry. This aligns with the World Trade Organization (WTO) Customs Valuation Agreement, which allows for the deduction of such transport-related expenses to accurately reflect the price actually paid for the goods.

Transportation costs only focus on the actual movement of goods and may not encapsulate the broader scope of expenses like insurance, which also plays a crucial role in the overall transaction. Customs brokerage fees and local taxes or tariffs are typically considered part of the costs that should not be deducted from the transaction value, as they broadly pertain to the costs of facilitating the transaction or government-imposed fees rather than direct costs associated with getting the goods to the buyer. Thus, international freight and insurance are appropriate deductions, making this option the most correct