Single window valuation system cargo tracking

11.2 Description of the Valuation Methods
11.2.1 Transaction Value Method (Method 1)
The transaction value of imported goods is the price that is actually 
paid or payable for the goods when sold for export to Ethiopia, and 
adjusted where necessary, as set forth in Article 99 of the Customs 
Proclamation, provided, however, that:
a) There are no restrictions as to the disposal or use of the 
goods by the buyer, other than restrictions imposed by law or 
by particular decisions issued based on such law, a limit in the 
geographical area in which the goods may be resold or limits 
that may not substantially affect the value of the goods.
b) The sale or price of the goods is not subject to some 
conditions or restrictions for which a value cannot be 
determined.
c) No part of the proceeds of any subsequent resale, disposal or 
use of the goods by the buyer may accrue directly or indirectly 
to the seller.
d) Where the buyer and seller are related, the transaction value 

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shall be considered as the basis for valuation of duty if it is 
accepted by the Authority.
Accordingly, there are three key elements of the transaction value 
that include sale, price actually paid or payable; and the goods sold 
for export to Ethiopia.
If there is no sale of the good or the transaction value cannot be 
determined, the transaction value method cannot be used and 
Method 2 must be tried.
If ERCA has doubts about the stated transaction value, more 
information is requested. If those doubts persist, ERCA notifies the 
declarant of the grounds for those doubts before making a final 
decision about the acceptability of the declared value. Then, ERCA 
uses the other alternative valuation methods for determination of the 
duty payable value.
The legal reasons for ERCA to reject the transaction value may arise 
from the following:
• The goods are not properly described;
• ERCA has doubts about the validity of the documents; Other 
costs are not properly included;
• The stated value of the goods is more than 10% lower than 
the value of identical or similar goods as per the customs 
valuation database and the declarant provides no justifications 
about the truthfulness of the declared value; or
• The buyer and the seller are related.
A buyer and a seller are deemed to be related if:
• One of them is an officer or director of the other’s business;
• They are legally recognized partners in business;
• They have an employer-employee relationship;
• One of them directly or indirectly owns, controls or holds 5% 

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or more of the other’s business;
• One of them directly or indirectly controls the other;
• Both of them are directly or indirectly controlled by a third