What is customs value? CIF, transaction value and the six valuation methods

Customs value is the basis for calculating ad valorem duty and the Trade Promotion Service Fee, and it is the starting component of the tax bases for commodity tax and Taiwan VAT. The primary method starts with the price actually paid or payable for goods sold from the exporting country to Taiwan, then adds the objectively quantifiable items required by Article 29(3) of the Customs Act, including packing, buyer assists, qualifying royalties, subsequent proceeds, and freight and insurance to the port of import. Separately identifiable post-import installation, maintenance, domestic freight, interest, and import taxes are excluded. Only a straightforward FOB transaction with no other additions or exclusions may be simplified as FOB + freight + insurance. If Customs reasonably doubts the declared value and the taxpayer cannot resolve those doubts, valuation proceeds in order through identical goods, similar goods, the deductive method based on domestic selling price, the computed method, and the fallback method; the taxpayer may request that the deductive and computed methods be reversed.