Lee, Han-Jin, and Jin-Woo Rhee. "Evaluating Customs Valuation Methods and the Impact of Discounts in International Trade." Journal of Customs Society 25, no. 3 (2024): 3-21.
-Abstact-
This study aims to analyze the impact of discounts on customs valuation in international trade and propose a reasonable method for customs valuation in such cases. First, this study reviews the WTO Customs Valuation Agreement and the regulations and cases of WTO members to derive the definition of ‘discounts’ in international transactions. Furthermore, the relationship between discounts and retrospective discounts is examined and distinguished, while considering the impact of discounts on the price actually paid or payable. Based on this, the issues related to discounts are analyzed through the cases of Korea and other WTO members. By synthesizing theoretical discussions and case analyses where discounts were contentious, this study suggests criteria for determining discounts. It concludes that for a discount to be consistent with the WTO Customs Valuation Agreement, the conditions must be met before importation, the discount must be unconditional, and proper documentation should be presented. These criteria lead to specific methods for conducting customs valuation based on the price actually paid or payable, incorporating discounts.