I.

Transaction value of identical goods

As per rule 5, if the transaction value of goods cannot be ascertained their value shall be
the value of identical goods. Identical goods. Means Imported goods which are similar in
all respects in the sense physical characteristics quality and reputation of the goods
valued except for minor differences which do not affect the value of goods. Sale of
identical goods taking place under any of the three conditions may be used:
1. A sale at same commercial level but in different quantities.
2. A sale at a different commercial level but in substantially the same quantities or
3. A sale at a different commercial level and different quantities.
On ascertaining sale under any one of the above conditions, value of goods shall be made
by making adjustments for (a) quantity factors only (b) Commercial level factors only (c)
quantity and commercial level factors.
II. Transaction value of similar goods (Rule 6)
If Actual price cannot be ascertained and value of identical goods can not be determined
as per Rule 5, then the goods will be valued at transaction value of similar goods.
Features of similar goods: Similar goods are defined in Rule 2(e) as under:
(a) Similarity: Imported goods have identical characteristics and components such as,
quality, reputation and are commercially interchangeable with the goods being
valued.