Verification

ICS shall verify the DTV by comparing it with previous transactions for identical or similar goods shipped from the same country of export to the same import country at or about the same time. When one or more transactions are found but the commercial level or the quantity is different, ICS shall adjust the price of the previous transaction(s) (in line with the WTO Agreement on Customs Valuation) before the comparison with the original transaction price. In the absence of previous transactions, ICS shall base its price comparison for the verification of the DTV on the price(s) of identical or similar goods offered for export from the same country of exportation at or about the same time, under competitive and comparable conditions of sale, in conformity with customary commercial practices and net of any applicable standard discounts. 

Thus, the comparison shall be based on the following:

1. Only prices providing a valid basis of comparison shall be used, taking into account the relevant economic factors pertaining to the country of importation and the country used for price comparison; 

2. The price of goods offered for export to different countries of importation shall not be relied upon to arbitrarily impose the lowest price upon the shipment; 

3. In all cases where ICS obtains a range of prices, it shall use the lowest price found for comparison purposes, in line with the WTO Agreement on Customs Valuation; 

4. When conducting its price verification ICS shall make appropriate allowances for:

   • The generally applicable adjusting factors pertaining to the transaction, which shall include but not be limited to the commercial level of the sale, delivery period and conditions, quality specifications, special design features, special shipping or packing specifications, order size, seasonal influences, license or other intellectual property fees, etc.

   • The following ancillary charges, which are additional to the FOB value, where applicable and permissible under the regulations of the importing country: buying agents or confirming fees, finance or interest charges, transport insurance. 

5. In addition to the export price ICS shall also verify the declared ocean/air freight, which normally represents a large portion of the DTV.

In cases where the contract also requires ICS to perform a quality and quantity inspection of the goods at destination, ICS shall perform the verification of the DTV based on the quantity and quality found during the inspection rather than on the declared quantity and quality. 

In line with the WTO Agreement on Customs Valuation, ICS shall not use the following for price verification purposes:

• The selling price in the country of importation of goods produced in such country

• The price of goods for export from a country other than the country of exportation

• The cost of production

• Arbitrary or fictitious prices or values

Verification