Valuing imported goods using Method 2 (transaction value of identical goods)
Source: gov.uk (2025-06-24)

How to use Method 2 to work out the customs value of your imported goods if you’re an importer or clearing agent.

Valuing goods can be complicated, so if you’re not an importer or clearing agent you may want to get someone to deal with customs for you (https://www.gov.uk/guidance/appoint-someone-to-deal-with-customs-on-your-behalf).

Before you try Method 2 you must first have tried to use Method 1 (transaction value of imported goods) (https://www.gov.uk/guidance/valuing-imported-goods-using-method-1-transaction-value).

Method 2 is based on the transaction value of identical goods imported to the UK at the time of, or within a reasonable time of, the importation of the goods to be valued. The price is adjusted in line with the rules explained in this guidance.

Identical goods

If you’re unable to work out the customs value of your imported goods using Method 1, you must try to work it out using a sale of identical goods.

When compared with the goods you’re valuing, identical goods must be:
- produced in the same country
- imported to the UK at, or within a reasonable time period of, the importation of the goods to be valued
- the same in all respects including physical characteristics, quality and reputation — minor differences in appearance do not matter
If the producer does not produce identical goods accepted under Method 1, another producer’s identical goods may be used for comparison.

If there’s no identical goods

You cannot use valuation Method 2 if there’s no identical goods. You must try Method 3 (transaction value of similar goods) (https://www.gov.uk/guidance/valuing-imported-goods-using-method-3-transaction-value-of-similar-goods).

What to base the customs value on

You base the customs value of your goods on the transaction value of identical goods already accepted by UK customs under Method 1, at the time of, or within a reasonable time of, the importation of the goods to be valued.

If there’s a sale at the same commercial level and in the same quantity this must be used.

If more than one value is available, use the lowest.

If there’s no sale at the same level or in the same quantity

You may use sales at a different commercial level or in different quantities. When working out the customs value, you must consider any effect differences have on the price (https://www.gov.uk/guidance/adjusting-for-level-and-quantity-when-using-methods-2-or-3).

Differences in costs between goods to be valued and identical goods

You must also take into account differences between the costs of delivering the goods you’re valuing and delivering the identical goods.

Providing evidence

For identical goods where Method 1 has been accepted by UK customs, you must be able to provide either:
- a copy of the import entry with supporting documents
- the necessary data that will enable HMRC to trace the import entry
This entry must be for identical goods imported at the time of, or within a reasonable time of, the importation of the goods to be valued. This is to ensure that both sets of goods were imported within a timescale in which the price of the goods would not have changed.

If identical goods are valued under both Method 1 and Method 2

If some of the goods are sent free of charge and they are entered on the same import entry, the evidence provided with that entry can be used to work out both the customs values.

Find more information in valuing imported goods that are free of charge (https://www.gov.uk/guidance/valuing-imported-goods-that-are-free-of-charge-used-rented-or-leased).

We may need a copy of the producer’s price list if differences for level or quantity have to be taken into account.

For more information, check the effect differences have on the price (https://www.gov.uk/guidance/adjusting-for-level-and-quantity-when-using-methods-2-or-3).

Declaring goods using Customs Declaration Service software

If you’re submitting your declarations using Customs Declaration Service software, read the Customs Declaration Service instructions for completing imports (https://www.gov.uk/government/publications/cds-uk-trade-tariff-volume-3-import-declaration-completion-guide).