Setting the declared value: customs valuation rules and the real risk of under-declaring
Customs values goods on the transaction price, and many African countries check against reference prices. How valuation works, what happens when under-declaration is found, and how to prepare price evidence.
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Customs valuation starts from the actual transaction price; if the price is clearly too low, customs revalues using prices of similar goods. Under-declaration that is found leads to back duties, fines, detention or even confiscation, and the duty saved rarely covers the loss.
Information updated: 2026-10-03
How customs values goods
The WTO Customs Valuation Agreement sets six valuation methods. The first is the transaction value method: the price actually paid or payable by the buyer. Only if it can't be used do customs move in order to identical goods, similar goods, deductive value, computed value and a reasonable method.
Nigeria, Ghana and others use the CIF value (goods plus freight plus insurance) as the duty base, and customs check declared values against their own price databases.
Risks of under-declaring
- Paying the duty shortfall plus the prescribed fine.
- Goods detained while being revalued, with demurrage building up.
- The importer put on a high-risk list, with every shipment inspected afterwards.
- In serious cases the goods may be confiscated.
How to prepare price evidence
- Keep the proforma invoice, purchase contract and payment receipts, with matching amounts.
- The commercial invoice states unit price, quantity, currency and delivery term.
- If the price is clearly below market (clearance stock, samples), prepare an explanation.
Declare the real value even when you choose a duties-included service. If a logistics provider suggests lowering the value, think carefully about who carries the risk.