the Customs Value

of
imported goods
&
ADVANCE VALUATION RULING
for Facilitated and Transparent
Clearance of Importation

The Customs Department

Customs Standard Procedures
and Valuation Bureau
Contact Numbers
6502
Valuation Division 1: 02-667-7000 Ext 7174
5128
Valuation Division 2: 02-667-7000 Ext 7179
7187
Valuation Division 3: 02-667-7000 Ext 7187

http://www.customs.go.th
I Introduction
All goods imported into Thailand, other than certain specific exemptions, are subject to Customs Duty and other taxes
imposed based on Customs Act B.E. 2469 (hereinafter referred to as “Customs Act”), Customs Tariff Decree B.E.2530
and other laws. A large portion of Customs Duty and various taxes, which the ad valorem rate is applied, are calculated
based on Customs Value as a foundation and duty rate or tax rates. In Thailand, Customs Act and Ministerial Regulation
No. 132 (B.E.2543) and Ministerial Regulation No.145 (B.E.2547) and No. 146 (B.E.2550) that amend Ministerial Regulation
No. 132 (B.E.2543), and other relevant regulations are in effect for Customs Valuation. (In this booklet, above three
Ministerial Regulations are referred to as “MR” with the number.)

As international trade in goods grows rapidly and the transaction becomes more complex both in terms of production
and parties involving in supply chain, the Customs Valuation has also grown in importance in order to secure revenues
with predicable and transparent manner. This booklet was compiled of beneficial information as a guide to the system of
Customs Valuation and an introduction to the (prior to import) Advance Valuation Ruling service provided by Thai Customs
for private sectors or those who are interested.

Please note that this booklet contains general information only. The legal texts summarized herein are arranged as narrative
explanation and visualization. For details, please refer to relevant regulations and/ or consult the Customs Standard
Procedures and Valuation Bureau (CSPVB) of the Customs Department.

II Method of Customs Valuation of Imported Goods

When filing import entry, the Customs Value is one of the most important items to declare, along with, amongst others,
tariff rate, origin of goods, and quantity, in order to declare the amount of Customs Duty and other taxes. Article 3 of
MR132 (B.E.2543) amended by MR145 (B.E.2547) that consistent with the WTO Valuation Agreement specifies the
following 6 methods that are applied in sequence.

1. Transaction Value Method

The Transaction Value Method is the first and primary method for the Customs Valuation for imported goods that are
sold for export to Thailand. Under this method, the Customs Value is the Price Actually Paid or Payable for the imported
goods and the Adjustment under Article 8-16 of MR132 (B.E.2543) amended by MR145 (B.E.2547).

Transaction Value Price Actually Paid or Payable Adjustment

(For details of Transaction Value, please see Part III Components of the Transaction Value in this booklet.)

The Transaction Value Method cannot be used when the transaction does not involve sale for export of the imported
goods or cannot meet any of the following provisions that limit use of this method. (Article 14 of MR132 (B.E.2543))
These provisions are:

(1) there are no restrictions as to the disposition or use of the goods by the buyer except where Article 14 (1) (a),
(b) and (c) of the MR132 (B.E.2543) applies;

(2) the sale or price is not subject to some condition or consideration for which a value cannot be determined;

(3) no part of the proceeds of any subsequent resale, disposal or use of the imported goods by the buyer will accrue
directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with Article 9 (2)
of the MR132 (B.E.2543);

(4) the buyer and the seller are not related in accordance with Article 4 of the MR132 (B.E.2543), or where the
buyer and the seller are related, that the Transaction Value of the imported goods is acceptable for Customs
purposes under the provisions of Article 15 or Article 16 of MR132 (B.E.2543).

As well as
Asthe
wellabove, the Transaction
as the above,the Value
Transaction Method
Value cannot
Method cannotbebeused
usedinincase;
case; aa declared CustomsValue
declared Customs Value is in
is in suspicious
suspicious and
and is not
is not clarified; the Customs officers have suspicion on the clarification of the declared Customs Value. In such cases tothe
clarified; the Customs officers have suspicion on the clarification of the declared Customs Value according
Article 3 of MR 132 (B.E. 2543); and there is a fraudulence on the declared Transaction Values. In such cases, the Customs
Value ofCustoms Value ofgoods
the imported the imported
shall begoods shall be based
determined determined based on alternative
on alternative methodsmethods in the sequential
in the sequential order order of Method
of Method of
of Customs Valuation. Please see the Flowchart of Method of Customs Valuation
Customs Valuation. Please see the Flowchart of Method of Customs Valuation in the next page. in the next page

1 THE CUSTOMS VALUE OF IMPORTED GOODS & ADVANCE VALUATION RULING

 Flowchart of Method of Customs Valuation
Imported Goods

Is the imported
goods sold for export
to Thailand?

Does the transaction

come under Article 14 (1), (2) or (3)
of MR132 (B.E.2543)

Are the buyer and

the seller related in terms of Article
4 of MR132 (B.E.2543)

Does the
relationship affect
the value? Alternative Methods

1. Transaction Value Method

(Please see III Components of Transaction Value) Does the transaction meet
the condition of Transaction Value of 2. Transaction Value of Identical Goods Method
Identical Goods method?

Does the transaction meet

the condition of Transaction Value of 3. Transaction Value of Similar Goods Method
Similar Goods method?

Does the transaction meet

the condition of Deductive Value 4. Deductive Value Method
Method?
When importer requests and
customs approves, Deductive
Method and Computed Value
Method can be interchanged.

Does the transaction meet

the condition of Computed Value 5. Computed Value Method
Method?

6. Fallback Method

2. Transaction Value of Identical Goods Method

If the Transaction Value Method cannot be applied, the Customs Value of the imported goods is determined with the
Transaction Value of identical goods that meets following requirements under Article 17 -20 of MR132 (B.E.2543).

Identical Goods Requirements

It is “Identical” in all respects, to Identical goods:
the imported goods being valued:  are sold to export to the Kingdom at or the approximate time;
 physical characteristics,  have been accepted as the Customs Value;
 quality and reputation, and  are at the same commercial level and quantity.
 produced in the same  If more than one Transaction Value of identical goods is found, the
country. lowest such value shall be used.
 Identical Goods do not include the Transaction Value which includes the
value of engineering, development, artwork, design work, and plans and
sketches undertaken elsewhere than in the Kingdom.

Where identical goods are not available, proceed to the next method.

for Facilitated and Transparent Clearance of Importation 2

3. Transaction Value of Similar Goods Method
The Transaction Value of similar goods is covered to use Article 21-23 of MR132 (B.E.2543). When applying this method,
the following is taken into account.

Similar Goods Requirement

It is not identical in all respects but, Similar goods:
they:  are sold to export to the Kingdom at or the approximate time as the
 have like characteristics and imported goods;
like component materials;  has been accepted as the Customs Value;
 perform same functions and  are at the same commercial level and quantity.
commercially interchangeable;  If more than one Transaction Value of similar goods is found, the lowest
and such value shall be used.
 are produced in the same  Similar Goods do not include the Transaction Value, which includes the
country. value of engineering, development, artwork, design work, and plans and
sketches undertaken elsewhere than in the Kingdom.

Where there is nothing similar to the imported goods, move on the next method.

4. Deductive Value Method

If the above mentioned methods cannot be used, the Deductive Value Method under Article 24-27 of MR132 (B.E.2543)
is considered. The Deductive Value starts from the resale price of the imported goods or identical goods or similar goods
in Thailand and deducts the following elements. If the importer requests a reversal and Customs approves, the Computed
Value Method comes first.

Condition Formula for Deductive Value

 Use the unit price of imported goods at which the  Unit price for resale of the imported goods or
goods are sold: identical or similar goods in the Kingdom
 in the greatest aggregate quantity, (-) Commission usually paid or the additions
 at or about the same time of importation usually made for profit and general expenses
 If the unit price for resale of the imported goods is (-) Usual cost for transportation and
not available, the resale price of identical or similar insurance within the Kingdom
goods shall be used. (-) Customs Duties and other taxes
________________________________________
= Customs Value as Deductive Value

5. Computed Value Method

If the Deductive Value Method cannot be applied, the Computed Value Method under Article 28, 29 and 29 (1) of MR
132 (B.E.2543) amended by MR 145 (B.E.2547) follows. For Computed Value, the following formula is applied.

Formula for Computed Value

(+) The cost or value of materials and fabrication or other processing employed in producing the imported goods
(+) an amount for profit and general expenses usually reflected in sales of goods of the same class or kind as the
goods being valued
(+) the cost of containers
(+) the cost of packing whether for labour or materials for the imported goods
(+) the cost of materials and components specified as the assist under Article 11 (1), (2) and (3) of
MR132 (B.E. 2543).
(+) the cost of insurance and transportation of the imported goods
(+) engineering, development, artwork, design work, and plans and sketches undertaken in the Kingdom necessary
for production of the imported goods where these elements are charged to the producers (if any)
____________________________________________________________________________________________
= Computed Value as Customs Value

6. Fallback Method
If none of the preceding method is applicable, the Fallback Method under Article 30 and 31 of MR132 (B.E.2543) is
used. Under this method, the preceding methods would be used with reasonable flexibility.

3 THE CUSTOMS VALUE OF IMPORTED GOODS & ADVANCE VALUATION RULING

III Components of the Transaction Value
For goods arriving in Thailand from foreign countries, the Customs Value of the imported goods is normally determined
based on the Transaction Value Method, except where the transactions are subject to situations that preclude it.

The Transaction Value of imported goods is determined based on the Price Actually Paid or Payable when sold for
exportation to Thailand under Article 8 of MR132 (B.E.2543) amended by MR145 (B.E.2547), and the value of adjustment
under Article 9-12 of the MR132 (B.E.2543). Please see the following diagram on the Transaction Value.

Transaction Value

Price Actually Paid or Payable Adjustment

Any of following shall be included in the Transaction

Value, if those values are not in the Price Actually Paid
Price Actually Paid or Payable is: or Payable for the goods.
 the total payment made or to be made;
 by the buyer to the seller or for the benefit of the
seller; Royalties and license fees related to the goods being valued
 for the imported goods that the buyer must pay, as a condition of sale of the
 sold for export to the Kingdom. imported goods
Price Actually Paid or Payable includes: Proceeds of any subsequent resale, disposal or use of the
 all payments actually made or to be made; imported goods that accrues to the seller
 as a condition of sale of the imported goods;
The cost of insurance, the cost of transport of the imported
 by the buyer to the seller, or by the buyer to a
goods to the port or place of importation, loading, unloading
third party to satisfy an obligation of the seller.
and handling charges associated with the transport of the
imported goods
Commissions and brokerage, except buying commissions*
The cost of containers which are treated as being one for
Deductible elements from Transaction Value customs purposes with the goods in question*
when it includes and is separately identifiable*: The cost of packing whether for labour or materials*

i. Charges for construction, erection, assembly, The value of the following goods and services supplied by
maintenance after importation; the buyer free of charge or at reduced cost for use in
ii. The cost of transport after completion of the connection with the production and sale for the imported
importation; goods
iii. Duties and taxes associated with the i. Materials, components, parts and similar items
importation. ii. Tools, dies, moulds, and similar items
iii. Materials consumed in the production of the
* The above mentioned deductible elements shall imported goods
be identified with detailed documents. iv. Engineering, development, artwork and plans and
sketches undertaken elsewhere than in the Kingdom.

* In case the buyer pays such costs.

Before filing your entry and declare the Customs Value, it is recommended to check
if your invoice fully indicates the Price Actually Paid or Payable and remind yourself
if you have incurred any costs or made payment with regard to the Adjustment.

for Facilitated and Transparent Clearance of Importation 4

IV Frequently Asked Questions
Q1. Which imported goods are to be assessed MR145 (B.E.2547) further defines that “the price
for Customs Duty? actually paid or payable includes all payments actually
made or to be made as a condition of sale of the
A1. Generally, imported goods are to be assessed for
imported goods, by the buyer to the seller, or by the
Customs Duty in accordance with Customs Act,
buyer to the third party to satisfy an obligation of the
relevant laws and regulations, except for imported
seller”.
goods either are stipulated not to be paid for the
Customs Duty by laws or are exempted from Customs
Q8. When filing an entry, how do we ensure
Duty.
that the price shown in the invoice
properly represent the Price Actually Paid
Q2. How do we calculate the ad valorem
or Payable?
Customs Duty?
A8. Please check if the invoice at your hand fully indicates
A2. Customs Duty is calculated based on specific rate or
a total amount of the Price Actually Paid or Payable
ad valorem rate. As for the goods that the ad valorem
for the imported goods that you are required to pay
rate is applied, we calculate it by multiplying Customs
for the imported goods. Followings are examples.
Value by tariff rate.
1. If an invoice of the imported goods only indicates
a balance because an advance payment for the
Q3. Other than Customs Duty, what kinds of
imported goods was made, the Price Actually Paid
taxes are imposed? (Are any other kinds
or Payable for the imported goods shall be a sum
of taxes to be imposed, other than
of the advance payment and the balance.
Customs Duty?)
2. If an invoice price does not include certain costs
A3. Other than Customs Duty; Value Added Tax is such as raw material of the imported goods since
imposed on imported goods. Goods such as cigarettes payment of such costs are separated from the
or liquors are subject to Excise Tax and other taxes. invoice price and are made by the buyer to the
seller or a supplier of the raw material as required
Q4. What is Customs Value of imported goods? by the seller, the Price Actually Paid or Payable
shall include the said costs.
A4. Customs Value is a value to levy ad valorem duties of
3. In cases the buyer receives a price reduction on a
Customs Duty on imported goods on the basis of CIF
current importation as a means of settling a debt
in accordance with Customs Act and MR132 (B.E.2543)
that the seller owes the buyer, the price before
amended by MR145 (B.E.2547) and MR146 (B.E.2450)
reduction shall be the Price Actually Paid or Payable
and other relevant regulations.
and be used as a basis of the Customs Value.
Q5. How can Customs Value of the imported
Q9. When I declare a Customs Value based on
goods be determined?
Transaction Value Method, what elements
A5. In order to determine Customs Value of imported should be added?
goods, one of following methods will be used
A9. Expenses that the buyer pays such as royalties,
sequentially in accordance with Customs Act and
commissions, proceeds, freight, insurance and others
MR132 (B.E.2543). However, Deductive Value Method
those which are dutiable in accordance with MR132
and Computed Value Method can be alternated each
(B.E.2543), shall be added to the Price Actually Paid
other consequently when the importers request and
or Payable to the extent that such expenses have not
the customs officers approve.
been included in the Price Actually Paid or Payable yet.
1. Transaction Value Method
(For details, please see III Components of the
2. Transaction Value of Identical Goods Method
Transaction Value of this booklet.)
3. Transaction Value of Similar Goods Method
4. Deductive Value Method
Q10. Where price of the goods is indicated in
5. Computed Value Method
invoice, can I declare the price shown in
6. Fallback Method
the invoice as Customs Value applying
the Transaction Value Method?
Q6. What is the Transaction Value Method?
A10. Yes, you can if imported goods do not fall under
A6. The Transaction Value Method bases on the Price
following. (In cases where, the imported goods fall
Actually Paid or Payable for the imported goods and
under following, Customs Value of the goods shall
Adjustments are made as appropriate for determining
be determined by applying the Transaction Value of
Customs Value of imported goods. (For details, please
Identical Goods Method or subsequent method in
see III Components of the Transaction Value of this
sequence. (For details, please see 2 to 6 under I
booklet.)
Method of Customs Valuation of Imported Goods
of this booklet.))
Q7. What is the Price Actually Paid or Payable?
1. There is no sale of the imported goods. E.g., free
A7. Article 8 of MR132 (B.E.2543) amended by MR 145 consignment, gift, leased goods, etc.
(B.E. 2547) stipulates that “price actually paid or 2. There is limitation and restriction as to disposition
payable for the imported goods when sold for export or of use of the goods except where Article 14
to the Kingdom”. Paragraph 2 of Article 8 added by (1) (a), (b) and (c) of MR132 (B.E.2543) applies.

5 THE CUSTOMS VALUE OF IMPORTED GOODS & ADVANCE VALUATION RULING

 3. There is condition or consideration for which a Q15. Can I request the Customs Department
value cannot be determined. to approve a price indicated in an invoice
4. The proceeds of any subsequent resale, disposal as a Customs Value?
or use of the goods by the buyer will accrue
A15. No, you cannot. Price of the goods is agreed between
directly or indirectly to the seller, except that it
a buyer and a seller, the Customs Department
could be adjusted in accordance with Article 9
cannot know exactly whether the price shown in an
(2) of the MR132 (B.E.2543).
invoice is the intrinsic transaction value.
5. The Buyer and the Seller of the goods are related
and the transaction value of imported goods is
Q16. Do I have to submit a request of AVR at
influenced by such relationship.
the Customs Department?
6. A declared Customs Value is in suspicious and is
not clarified; the Customs officers have suspicion A16. Yes, you have to submit it at the CSPVB, the Customs
on the clarification of the declared Customs Value . Department.
according to Artical 3 of MR132 (B.E. 2543).
7. There is fraudulence on the declared Transaction Q17. When requesting AVR, what documents
Values. are required to submit?
A17. For requesting AVR, following documents should be
Q11. In case price of imported goods and/ or
submitted. The documents shall be completed,
other costs are stated in foreign currency,
correct and adequate. When necessary, CSPVB will
how can I calculate the Customs Value
inquire details and/ or request to provide information
of the imported goods?
additionally for further clarification of facts of the
A11. In Thailand, you shall indicate the Customs Value in transaction.
Thai Baht on import entry. You shall use a currency Request form of AVR (Form 1 of Customs
conversion rate, which is issued by the Customs Notification No.67/2552)
Department, for imported goods corresponding to Documents that demonstrate facts of the
the date of filing the entry. The Customs Department transaction with regard to the request, for
issues the currency conversion rates for imported example,
goods through a Customs Notification and uploads Sales Contract, Purchase order, etc.,
on the website of the Customs Department. Invoice, Provisional Invoice, Debit Note,
http://www.customs.go.th Credit Note, etc.,
Shipping documents including transportation,
Q12. If I would like to know about the insurance, etc.,
treatment of valuation of imported Other agreement, contract and/or
goods prior to filing an import entry, memorandum with regard to license, agency
how can I do? service, logistics service, etc., and,
Others as necessary.
A12. The Customs Department provides the Advance
Valuation Ruling (AVR) service without any fees at
Q18. Is it possible to submit a request of AVR
the Customs Standard Procedures and Valuation
if the imported goods come into the port
Bureau (CSPVB), 12th floor, 120th Building. (For
but there are some problems related to
details, please see V Advance Valuation Ruling in this
Customs Value causing release of the
booklet)
goods from Customs custody or if the
imported goods can be released from
Q13. What is the AVR?
Customs custody but the importer still
A13. The AVR service is a service that CSPVB provides a has some doubt something related to
written answer concerning the treatment of Customs Customs Value?
Valuation of the goods to a requester who submitted
A18. No, it is not. However, generally, you can inquire
a written request before importation of goods.
such cases to CSPVB by an inquiry letter.
Normally, CSPVB provides an Advance Valuation
Ruling Answer Letter (Answer of AVR) stipulated
Q19. If I have some questions on Customs
in Customs Notification No. 67/2552 within 30
Value, to which government section can
official days when a completed request form with
I inquire?
adequate and correct information is submitted.
A19. You can inquire to Customs officers at CSPVB, the
Q14. How can we utilize an Answer of AVR? Customs Care Center (Phone 1164), or Regional
Customs Bureau or all Customs Houses.
A14. CSPVB will issue an Answer of AVR. The person
who received the Answer of AVR can submit it to
the port of entry. If the fact of the goods imported Remark:
is in line with the condition of the Answer of AVR,
the entry process and the release of the goods From 4 March 2015, Customs Notification No. 67/2552, which
relevant to the Customs Valuation shall be more stipulates Advance Valuation Ruling (AVR) was replaced by a
facilitated and accurate. new Customs Notification No. 38/2558.When you need to refer
to it or relevant forms, please visit the Customs website.
http://www.customs.go.th

for Facilitated and Transparent Clearance of Importation 6

V Advance Valuation Ruling
Advance Valuation Ruling (AVR) is a service where the Customs Department provides you with an answer
in writing about the Customs Value of your forthcoming importation IN ADVANCE, upon your request.

I need to know the

treatment of Customs What should I do?
Valuation in order to
calculate the Customs
Duty and other taxes
before importation.

Process of AVR (Summary)

1. Submission of a Request form of AVR to ask particular issues with supporting documents such as sales
contract, purchase order, invoice, license agreement, etc.

2. Examination and consultation to identify facts of transaction and check if the supporting documents are
adequate and correct enable an answer to be given.

If supporting documents are inadequate or incorrect, or an applicant cannot answer queries from Customs,
the Request may be cancelled.

30 official days

3. Issuance of an Answer of AVR.

You can apply the Answer of AVR to calculate Customs Value of the relevant entry.

AVR benefits a lot!!

More facilitated and
Predictable Customs Duty Accurate Customs Duty transparent process on
Customs Value

We welcome your queries and requests of AVR!!

For more details: Please visit our website.
http://www.customs.go.th
Customs Standard Procedure and Valuation Bureau, The Customs Department
6502
Customs Valuation Division 1 Tel. 02-667-7000 Ext 7174
7179
Customs Valuation Division 2 Tel. 02-667-7000 Ext 7179
7187
Customs Valuation Division 3 Tel. 02-667-7000 Ext 7187

7 September 2014