Customs valuation methods: which applies to your business

The 6 valuation methods in Mexico

Mexico, as a WTO member, applies the six customs valuation methods established in the GATT Valuation Agreement. These methods are codified in Articles 64 to 78 of the Customs Law and must be applied in successive order: only when one method is not applicable do you move to the next.

Method 1: Transaction value (Art. 64 LA)

This is the primary and most-used method (over 90% of imports). It is based on the price actually paid or payable for the goods, adjusted by additions (Art. 65) and deductions (Art. 66). It can only be used when there is a real sale for export to Mexico.

Method 2: Transaction value of identical goods (Art. 72 LA)

Uses the accepted transaction value of identical goods sold for export to Mexico at the same or approximately the same time. Identical means: same description, characteristics, composition and quality.

Method 3: Transaction value of similar goods (Art. 73 LA)

Similar to Method 2, but using similar (not identical) goods. Similar goods have comparable characteristics and composition, perform the same functions and are commercially interchangeable.

Method 4: Deductive value (Art. 74 LA)

Based on the unit selling price of imported goods in Mexico in the greatest aggregate quantity, deducting internal costs such as commissions, profit, general expenses, inland freight and taxes.

Method 5: Computed value (Art. 77 LA)

Calculated from the goods production cost: materials, manufacturing, profit and general expenses of the manufacturer. Requires foreign manufacturer cooperation, making it difficult to apply in practice.

Method 6: Fall-back method (Art. 78 LA)

Applied with reasonable criteria based on previous methods, with flexibility. It does not allow: minimum prices, arbitrary values, the price of goods in the export country market, or the higher of two alternatives.

How Camtom selects the correct method

Camtom analyzes the operation conditions and recommends the applicable valuation method. In most cases it is Method 1, but when conditions do not allow it, the system guides the importer through alternative methods with necessary documentation.