Valuation
Royalties and License Fees
Also known as: Royalties, License fees, IP payments
Payments by the buyer to the seller or a third party for the use of intellectual property associated with imported goods, which may increase customs value.
Also known as: Royalties, License fees, IP payments
Payments by the buyer to the seller or a third party for the use of intellectual property associated with imported goods, which may increase customs value.
Royalties and license fees are payments for the use of intellectual property (patents, trademarks, copyrights, know-how) associated with imported goods. When they are a condition of sale, they must be added to the customs value, increasing the base for calculating import duties.
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The monetary amount on which import duties are calculated, determined according to the WTO Valuation Agreement with transaction value as the primary method.
ValuationTransaction Value
The price actually paid or payable for imported goods, adjusted as prescribed by the WTO Valuation Agreement. It is the primary method for determining customs value.
ValuationDutiable Charges (Assists)
Costs and values that must be added to the price actually paid or payable for imported goods to determine customs value, including commissions, packing, assists, royalties, licenses, and certain transport and insurance costs not included in the invoice price.
ValuationRelated Party Transactions
A legal, commercial, or control relationship between buyer and seller in an international transaction—such as subsidiaries, partners, employer-employee, or family members—that customs authorities examine to verify that the transaction price is not influenced by the relationship and reflects actual market value.