When shipping goods internationally, including human samples, customs valuation is crucial. It determines the correct monetary value for customs purposes, impacting import duties, VAT and other taxes. This value must be accurate and based on established international rules. Declaring an arbitrary value, without any basis, is unacceptable and can lead to serious consequences. 

Why Customs Valuation Is Required 

Customs authorities calculate taxes and duties based on the declared value of imported goods. To ensure fairness, the declared value must follow one of six official customs valuation methods outlined by the World Trade Organization (WTO). Even non-commercial goods like human samples require an appropriate valuation method. 

The Six Methods of Valuation 

• Method 1: Transaction Value – Based on the price paid for the goods in a genuine sale. 
• Method 2: Transaction Value of Identical Goods – Used when identical goods have recently been sold for export to the same destination. 
• Method 3: Transaction Value of Similar Goods – Applies if there are no identical goods, but similar items exist. 
• Method 4: Deductive Value – Based on the resale price in the import country, adjusted for costs and profit margins. 
• Method 5: Computed Value – Calculates value using the cost of production, including materials, labour and overhead. 
• Method 6: Fallback Method – Used if none of the other methods apply. Customs may determine a fair value using available data, such as transportation, handling and production costs. 

Accurate Customs Valuation Is Crucial 

For items like human samples, where no direct sale or market price exists, some mistakenly believe they can declare an arbitrary value “for customs purposes only.”  This assumption is entirely false. Customs valuation is not a flexible or interpretive exercise; it is a regulatory requirement. Declaring a lower or unsubstantiated value to reduce duties and taxes is not only unethical but illegal. 

Every declared value must be accurate, justifiable, and derived from a recognised valuation methodology. Anything less is a direct violation of customs regulations. Customs authorities are highly trained to detect irregularities and will not hesitate to stop shipments, demand additional documentation, or deny entry altogether. 

Misrepresenting the value, even if perceived as a harmless adjustment, can result in serious consequences. This is especially critical when shipping time-sensitive materials. There is no grey area, compliance is mandatory. Declare the value based accurately and on a recognised valuation method to avoid these risks. 

Key Takeaway: Declare Accurately, Avoid Risks

Customs valuation is a legal requirement and a vital part of international shipping, whether for commercial or non-commercial goods. Declaring the correct value using an approved method is essential to ensure compliance with customs regulations. Assigning arbitrary or unsupported figures can lead to serious consequences, including delays, unexpected costs and even legal penalties. To avoid these risks, it’s important to ensure all declared values are accurate, justified and properly documented. If you’re uncertain about how to value your shipment, seeking advice from a customs expert can help ensure smoother clearance and protect all parties involved. For more guidance, consult official resources such as: 

• HMRC (UK) 
• World Trade Organization (WTO) 
• EU Europa Customs and Taxation 

Marken remains committed to supporting clients in navigating the regulatory and trade landscape. For more information or if you have any questions, contact our team at TradeCompliance@marken.com.