Glossary / Customs Value
Customs Value — explained
Customs value is the tax base on which customs duty and other financial charges are calculated in imports; as a rule, it is found by starting from the price actually paid or payable in a sale of the goods for export to Türkiye, and adding the elements the legislation lists.
How the value is determined is set out in Articles 23 to 28 of Customs Law No. 4458 and is based on the World Trade Organization Customs Valuation Agreement. The Law lists six methods; these are not alternatives to one another, but steps tried in sequence. The primary method is the transaction value under Article 24; the others come into play only when the transaction value cannot be used.
Using the transaction value method depends on the conditions in Article 24 of the Law: the buyer's right of disposal over the goods must not be restricted, the sale or price must not be subject to a condition whose value cannot be determined, any part of the proceeds of any subsequent resale that accrues to the seller must be capable of adjustment, and the relationship between buyer and seller must not have affected the price. If any of these conditions is not met, the invoice price alone is not treated as the customs value.
The price actually paid is not left as it stands. Article 27 of the Law lists the elements to be added to the value — commission and brokerage borne by the buyer, the cost of packing and containers, materials and services supplied free of charge or at reduced cost for production, royalties and licence fees paid as a condition of the sale, any part of resale proceeds accruing to the seller, and the cost of transport and insurance up to the point of entry of the goods. Article 28, in turn, lists what stays outside the value provided it can be distinguished: transport, installation, and assembly costs incurred after arrival in Türkiye, import duties, financing interest, and buying commission.
When the transaction value cannot be applied, the four methods in Article 25 are tried in sequence: the transaction value of identical goods, the transaction value of similar goods, deduction from the domestic sale price, and computed value. This order is binding as a rule; only the order of the last two methods may be reversed if the declarant's written request is accepted by the customs authority. If none of these produces a result, the final method under Article 26 applies, and the value is determined by reasonable means based on data available in Türkiye — this article expressly states that a minimum or arbitrary value cannot be used.
When You Encounter It
Value is determined alongside GTİP at the stage the declaration is prepared: GTİP gives the applicable rate, and value gives the amount that rate is applied to. If either one is missing, the duty calculation does not come out right. In practice, the terms of delivery do most of the work — under Incoterms rules, whether freight and insurance are included in the invoice price varies, so the same invoice amount produces a different customs value under different delivery terms.
A value file does not rest on a single document. The invoice, sales contract, payment and bank records, freight and insurance invoices, and any royalty agreement must all corroborate one another; this overall consistency is what the authority is checking when it queries a declaration. The process of additional information, additional documents, and guarantee that follows when a declared value is found too low by the authority is explained on our Customs Brokerage service page. If this query results in an administrative fine, objecting to a customs administrative fine is a separate stage.
What It Doesn't Cover
- Customs value is not just another name for the invoice price. The invoice price is the starting point for most shipments, but the amount remaining after the additions and deductions under Articles 27 and 28 is the customs value; the two coincide only in some shipments, and that is an outcome specific to that shipment, not a rule.
- The VAT tax base is not the same thing as customs value either. Customs value is only the first component of this base; the duties, charges and levies paid on import, plus any other costs arising up to the date the declaration is registered, are added on top (Value Added Tax Law No. 3065, Article 21).
- Value does not mean the market value of the goods, their insured value, or their book value. A declaration based on any of these three is not defensible, because it does not rest on one of the methods the legislation requires.
Often Confused With
| Comparison | Difference |
|---|---|
| Customs Value vs Invoice Price | The invoice price is the amount shown on the commercial document issued by the seller. Customs value is the tax base remaining after the elements in Article 27 of the Law are added and those in Article 28 are deducted from this amount — the most common difference arises from freight and insurance. |
| Customs Value vs Import VAT Base | The VAT base is larger than the customs value: the duties and charges paid on import, plus other costs arising up to the registration date, are added on top of the customs value. Customs value is the base for customs duty; the VAT base is the base for VAT. |
| Customs Value vs Binding Tariff Information (BTI) | BTI makes the tariff position of the goods binding on the authority — not their value. Even if a product's GTİP has been settled through a BTI, its customs value is still determined afresh for every shipment. |
Frequently Asked Questions
How is customs value calculated?+
As a rule, it starts from the price actually paid or payable in a sale of the goods for export to Türkiye; the elements in Article 27 of Law No. 4458 are added, and the distinguishable costs listed in Article 28 are deducted. Because the delivery term determines which side bears freight and insurance, it directly affects the calculation.
What are the methods for determining customs value?+
Six methods are applied in sequence: transaction value (Art. 24), the transaction value of identical goods, the transaction value of similar goods, deduction, computed value (Art. 25), and the final method (Art. 26). The order is binding; only the order of deduction and computed value may be changed if the declarant's written request is accepted by the customs authority.
Which elements are included in the customs value?+
Commission and brokerage borne by the buyer, the cost of packing and containers, materials and services supplied free of charge or at reduced cost for production, royalties and licence fees paid as a condition of the sale, any part of resale proceeds accruing to the seller, and the cost of transport and insurance up to the point of entry of the goods (Customs Law Art. 27).
What is the Customs Valuation Committee?+
The World Trade Organization Customs Valuation Agreement provides for two international bodies: the Committee on Customs Valuation within the WTO and the Technical Committee on Customs Valuation within the World Customs Organization. These work on interpreting the agreement and keeping its application consistent; they are not a body a company applies to for an individual shipment.
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Related Terms
Where This Term Comes Up in Our Work
Customs Value is one of the documents we track in our customs brokerage service.
Customs BrokeragePreparation, registration, and tracking of your import and export customs declarations.The Turkish original of this page was reviewed by our licensed customs broker. This translation is provided for information; the Turkish version prevails.
Source
Republic of Türkiye Presidency Legislation Information System — Customs Law No. 4458 — Customs value of goods: Articles 23-28. The valuation provisions are drawn up on the basis of the World Trade Organization Customs Valuation Agreement.
Last updated: September 27, 2026