Identical Goods Method

Method Principle

The identical goods method is the second customs valuation method under Article 2 of the WTO Customs Valuation Agreement and Article 74(2)(a) of the UCC. It applies when the transaction value of the imported goods cannot be determined under the primary method (Article 70 UCC).

Criteria for Identical Goods

To be considered identical, goods must be:

• The same in all respects, including physical characteristics, quality and reputation
• Produced in the same country as the goods being valued
• Manufactured by the same producer (preferably) or another producer

Minor differences in appearance do not prevent goods from being considered identical. However, goods incorporating engineering, development or artistic work undertaken in the country of importation are excluded.

Conditions of Application

The reference transaction value must relate to identical goods:

• Exported to the same country at or about the same time
• Sold at the same commercial level and in substantially the same quantity
• If commercial levels or quantities differ, adjustments must be made

Where more than one transaction value of identical goods exists, the lowest value is used.

Practical Importance

This method is frequently used for standardised goods (electronic components, raw materials, common textiles). It provides an objective comparison base when the primary transaction is suspect or involves related parties.