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Title / Demonstrate knowledge and use the transaction method to value goods for Customs purposes
Level / 4 / Credits / 6
Purpose / This unit standard applies to Customs officers who are required to offer a valuation opinion as part of their regular job role. Requirements of this unit standard do not extend to Customs rulings which are provided only through the Customs National Tariff Advisory Unit.
People credited with this unit standard are able to: demonstrate knowledge of the valuation of goods for Customs purposes; demonstrate knowledge of the transaction value method as the primary basis for determining Customs value in accordance with the Second Schedule of the Customs and Excise Act 1996; identify and explain documentation required when using the transaction method to determine the Customs value in accordance with the Second Schedule of the Customs and Excise Act 1996; and apply the transaction method to value imported goods.
Classification / Public Sector Services > Customs and Excise
Available grade / Achieved
Guidance Information
1Legislation, policies and procedures relevant to this unit standard include:
Second Schedule of the Customs and Excise Act 1996;
Customs and Excise Regulations 1996;
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994;
World Trade Organisation Valuation Agreement (WTOVA);
Various Publications as published by the World Customs Organisation Technical Committee on Customs Valuation including
- WCO Customs Valuation Compendium
- WCO Customs Valuation Control Handbook;
The State Services Code of Conduct, Standards of Integrity and Conduct (available from
New Zealand Customs Service Code of Conduct (available from NZ Customs Service, PO Box 2218, Wellington 6140,
2Definitions
Customs value means the Customs value of those goods determined in accordance with the Second Schedule of the Customs and Excise Act 1996.
Organisational requirements refer to instructions to staff on policies, procedures, and methodologies which are documented and are available in the workplace. They must be consistent with applicable legislation and any other applicable compliance requirements.
Outcomes and performance criteria
Outcome 1
Demonstrate knowledge of the valuation of goods for Customs purposes.
Performance criteria
1.1Customs value is explained in accordance with the Customs and Excise Act 1996.
1.2The determination of Customs value is explained in accordance with the Second Schedule of the Customs and Excise Act 1996.
1.3Requirements of importers to specify a Customs value and to supply supporting documentation are explained in accordance with legislation.
1.4The power of Customs to amend the Customs value on an import entry is explained in accordance with legislation.
1.5The use of foreign currency rates in determining Customs value is explained in accordance with legislation.
Outcome 2
Demonstrate knowledge of the transaction value method as the primary basis for determining Customs value in accordance with the Second Schedule of the Customs and Excise Act 1996.
Performance criteria
2.1Transaction value is explained.
2.2Price paid and payable is explained.
2.3Adjustments that may be made to transaction value are described.
Rangeadditions and reductions.
2.4The four conditions that restrict the use of the transaction value method are explained.
2.5The application of test values to determine the acceptability of the transaction value between related parties is explained.
Outcome 3
Identify and explain documentation required when using the transaction method to determine the Customs value in accordance with the Second Schedule of the Customs and Excise Act 1996.
Performance criteria
3.1Types of information provided by invoices accompanying goods are identified.
Rangeten types of information.
3.2Additional documents required to support a Customs value declaration are identified and explained.
Rangefive types of documentation.
3.3International terms of trade (Incoterm) are explained.
Rangefree on board (FOB), costs and freight (C&F), costs insurance and freight (CIF), ex-works (EXW), deliver duty unpaid (DDU), deliver duty paid (DDP).
3.4The methods of payment for goods are identified and explained.
Rangesix methods of payment.
Outcome 4
Apply the transaction method to value imported goods.
Rangefive valuations.
Performance criteria
4.1Invoices relating to the goods are checked for accuracy in accordance with organisational requirements.
4.2Payment details are checked in accordance with organisational requirements.
Rangeamount paid, date paid, method of payment, to whom payment was made.
4.3Shipping documents are checked in accordance with organisational requirements.
4.4Adjustments are identified and explained where required
This unit standard is expiring. Assessment against the standard must take place by the last date for assessment set out below.
Status information and last date for assessment for superseded versions
Process / Version / Date / Last Date for AssessmentRegistration / 1 / 26 September 2001 / 31 December 2020
Review / 2 / 16 July 2010 / 31 December 2020
Review / 3 / 30 August 2018 / 31 December 2020
Consent and Moderation Requirements (CMR) reference / 0121
This CMR can be accessed at
The Skills OrganisationSSB Code 100401 / New Zealand Qualifications Authority 2018