The customs value is the basis on which ad valorem customs duties and import VAT are calculated. The primary method is the transaction value — the price actually paid or payable for goods sold for export to the importing country. Added to the purchase price: transport and insurance costs to the point of entry into the customs territory; brokerage commissions; packaging costs; assists provided free by the buyer (moulds, tools, materials, technical drawings); royalties and licence fees related to the goods. Excluded: post-import transport costs; import duties and taxes; interest for deferred payment; buying commissions. In Switzerland, duties are weight-based (not ad valorem), but customs value is still needed for import VAT calculation (8.1% or 2.6%). In the EU, duties are generally ad valorem (percentage of value), making customs value critical for duty amounts. When transaction value is not applicable (e.g. intra-group transfers without sale), alternative methods under the WTO Valuation Agreement apply: identical goods, similar goods, deductive method, computed value method, fall-back method.