Single window valuation system cargo tracking

11 Customs valuation 
11.1 Introduction
“Customs valuation” refers to methods used by customs authorities 
to allocate a value to imported goods for the purpose of determining 
the correct import duty.
64
ERCA normally charges customs duty 
and tax as a percentage of the duty paying value of goods, which 
is the sum of the amounts paid for the imported or exported good 
up to the point of entry into or exit from the customs territory, i.e. 
the cost of the good, insurance, freight and other charges. For the 
determination of the correct duty amount, ERCA thus needs to 
determine the value of goods.
One of the cardinal authorities on customs valuation that is widely 
accepted is the WTO Agreement on Implementation of Article VII 
[Customs Valuation], which establishes a fair, uniform and neutral 
system for the valuation of goods that precludes the use of arbitrary 
or fictitious customs values. Although Ethiopia is not yet a WTO 
member, the Ethiopian customs valuation methods, which are laid 
out in Articles 89- 100 of the Customs Proclamation and in the 
Customs Duty Paying Value Determination Directive No. 111/2015, 
have been designed in line with the WTO Agreement.
ERCA recognizes six (6) different customs valuation methods. 
The default method (Method 1) is the transaction value method. 
Alternative valuation methods are:
• Method 2: Transaction value of identical goods; 
• Method 3: Transaction value of similar goods; Method 4: 
Deductive value;
• Method 5: Computed value;
• Method 6: Fallback method.
64 Dictionary of Trade Policy Terms, Fourth Edition, July 2003.

---

ETHIOPIAN CUSTOMS GUIDE -
MARCH 2017
86
The application of methods is strictly hierarchical. In any case, the 
default method constitutes the starting point. Only if it is impossible 
to apply in the specific case, the Method 2 will be tried, and so on.
For the application of each method, evidence for the value of the 
good must be produced and any documents and information about 
an importation required by a customs officer must be provided. 
The specific type of evidence depends on the method used and is 
described in the following sections.
If there is a disagreement regarding the amount of duty charged 
at the time of entry to free circulation of the goods or with a post 
clearance finding, an appeal can be submitted against the decision. 
See section 18 for further details.