Under WTO valuation, which method is used when there are no identical or similar goods and no transaction value available?

• A. Transaction value.
• B. Value of identical or similar goods.
• C. Fallback value.
• D. Computed value.

Answer: (C)

When there are no identical or similar goods and no transaction value available, the WTO valuation uses the computed value method. This approach bases the customs value on the cost of producing the goods in the country of export, including materials, direct and indirect manufacturing costs, and a reasonable amount for profit. It may also incorporate other allowable costs up to the point of export, such as packing and certain overheads.

Fallback value comes into play only if the computed value cannot be determined or is not reliable; it’s a last-resort method used to establish an approximate value by other reasonable means.