14.11. Use of customs value as the statistical value. If the customs value is determined in conformity with the WTO Agreement on Customs Valuation, the statistical value of imported goods either is equivalent to the customs value or can be derived from it by adding the cost of certain services, pursuant to article 8 (2) of the WTO Agreement. The consequence of this provision in article 8 is that the customs value of imported goods may or may not cover the value of all the services required for inclusion in the statistical value of imported goods, e.g., it may or may not include insurance and freight. If a country chooses to include all of the required cost items in the customs value, then the customs value will be the statistical value. Otherwise, compilers need to add the costs (possibly estimated) of these services to the customs value in order to obtain the statistical value.
14.12. Use of customs value if the terms of delivery are CIF or CIP. The customs value for imports should be accepted as the statistical value without any adjustments if:
(a) The customs value was established in accordance with articles 1-8 of the WTO Agreement;
(b) The terms of goods delivery are CIF or CIP,[7] and none of the exclusions from the customs value allowed in article 8 (2) were made.
14.13. Use of the customs value if the terms of delivery are other than CIF/CIP. The terms of goods delivery may be other than CIF or CIP. In these cases, the customs value should be accepted as the statistical value, provided that the appropriate adjustments to the invoice price were made by customs or the trader. Compilers should confirm with customs authorities that, if the terms of delivery are other than CIF/CIP, the customs value includes the value of the services covered by the definition of CIF-type statistical value and that it excludes any other costs. The required adjustments to the invoice price are outlined and further explained in table XIV.1 below.
14.14. Declaration of the customs value. It is the responsibility of customs to ensure the proper calculation of the customs value. To ensure accuracy, many countries require the importer to complete a special form, the declaration of the customs value. This declaration identifies the cost components that are included in the customs value, depending on the terms of delivery. If such a declaration is available, it is good practice, in the case of high-value shipments, to review the cost components listed in it in order assess whether any adjustments to the customs value are necessary. It is also advised that compilers cooperate with customs in efforts to improve the reliability of the valuation procedures.
14.15. Compilation of the statistical value in the absence of the customs value. If the customs value deviates from the requirements of the WTO Agreement or if there is no customs value, compilers should derive or estimate the statistical value following the principles of the WTO Agreement. Part I of the WTO Agreement is reproduced in annex D of IMTS 2010.
14.16. Adjustments to the invoice value of imported goods depending on the terms of delivery. Customs administrations generally require the FOB- or CIF-type value to be placed on the customs declarations by traders or, if necessary, calculate those values themselves based on the various documents submitted by traders. Such supporting documents may include the contract of sale, which would normally contain the terms of delivery of goods and the price of the goods, and the invoice issued to the buyer by the seller of the goods. The price of the goods negotiated between traders and reflected in the invoice (also referred to as the invoice price) depends on the terms of delivery. The terms of delivery constitute an agreement between the seller and the buyer on who is responsible for the cost and risk of delivering the goods to the agreed place. Terms of delivery used in international commerce include those of the FOB and CIF types, as defined by the International Chamber of Commerce and described in annex E of IMTS 2010. Compilers have to make appropriate adjustments to the invoice price to obtain CIF- or FOB-type values of goods if such values are not available from customs or other sources.
14.17. Table XIV.1 describes the various terms of delivery (right-hand column headings) in terms of a list of cost items that need to be added to or subtracted from the invoice price (left-hand column) to obtain the CIF-type value of imported goods. The list of cost items is indicative, and may not be applicable in all cases. The content of a cost item as well as its inclusion in or exclusion from the invoice price might differ from one transaction to another depending on national legal requirements and on the contractual agreements between the parties. (For the purposes of tables XIV.1-XIV.3, it is assumed that the cost of the goods at the factory gate are included in the invoice price.) The CIF column of the table identifies (with a boldface “Y”) cost items that are covered by the definition of CIF-type value, and which are assumed to be normally included in the invoice price of imported goods when delivered under those terms. The other columns in the table identify whether a cost item is assumed (a) to be included in the invoice price when the goods are delivered under those terms, with no adjustment needed (indicated by the symbol “*”), (b) to be excluded from the invoice price and added to it (indicated by the symbol “+”) or (c) to be included in the invoice price and to be subtracted from it (indicated by the symbol “−”). An empty cell indicates that the item is assumed to be excluded from the invoice value and therefore from the CIF- or FOB-type values as well. If, in a particular case, an assumption regarding inclusion or exclusion of any cost item in the invoice price is not correct, then that item should be subtracted or added, as appropriate. The term “FCA” appears as “FCA/x” to indicate that it is to be interpreted as FCA, border of exporting country.
14.18. The use of table XIV.1 can be illustrated as follows. If, for example, goods are imported under the terms of DDP (delivered duty paid to buyer’s warehouse), then the insurance while in international transport should be added; however, the cost of customs clearance at importation, including import duties and other charges, cost of transportation in the importing country and cost of insurance while in transport in the importing country, and the cost of unloading at the buyer's warehouse, should all be subtracted from the invoice price to obtain a CIF-type value, as recommended for import statistics.
14.19. Establishing the statistical value of imported goods. Commercial practices in international merchandise trade display a variety of detail in the terms of delivery of goods. Statisticians should carefully examine the available data sources and information, including the terms of delivery of goods, in order to derive the recommended CIF-type values. In addition, they should establish a close cooperation with customs and other primary data collectors in order to provide guidance on the methodology regarding the statistical value and to ensure the availability of adequate data.
[7] The Incoterm CIP (Carriage and Insurance Paid to) rule is the containerized transport/multimodal equivalent of the CIF rule.