Which WTO valuation method uses the value of the goods plus manufacturing costs in the country of export?

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

Answer: (A)

The method tested uses a value based on how the goods are produced in the exporting country. It takes the production costs—what it costs to manufacture the goods there, including materials and labor—and then adds appropriate expenses (like overhead and a reasonable profit), plus any transport-related costs to place the goods in a position for export. This approach is used when you can’t rely on the actual price paid or payable for the goods (the transaction value) or when there aren’t identical or similar goods to compare. In that situation, the computed value method provides a systematic way to establish the customs value by reflecting the cost of production in the country of export, which is why it’s the correct choice.