The six customs valuation methods used in Morocco

The hierarchy of valuation methods is not a menu. It is a fixed sequence: the transaction value method applies in principle, and you descend one level only after establishing, in writing, that the level above cannot apply.

In practice, more than nine transactions in ten fall under the first method. The subject is therefore not knowing all six: it is knowing exactly what makes the first fall away, because that is where all the risk sits.

The sequence, and what makes you descend

1. M1

   Transaction value

   The price actually paid or payable for goods sold for export to Morocco, adjusted. It is the rule of principle, and it requires a real sale.

2. M2

   Transaction value of identical goods

   A comparable sale of identical goods, exported at or about the same time. Assumes an accessible, documented reference.

3. M3

   Transaction value of similar goods

   Same logic, on goods with similar characteristics and components, commercially interchangeable.

4. M4

   Deductive method

   Starts from the unit resale price on the domestic market, less margins, inland transport, duties and taxes.

5. M5

   Computed value method

   Rebuilds the value from the cost of materials, manufacturing operations, profit and general expenses. Requires the manufacturer's cooperation.

6. M6

   Fall-back method

   Applies the preceding methods with reasonable flexibility. It is not a free method: the prohibited bases remain prohibited.

The order of methods 4 and 5 may be reversed at the importer's request, under conditions. The methodological framework is the WTO customs valuation material.

What makes the first method fall away

Five situations where transaction value cannot apply as it stands

• There is no saleConsignment, transfer between establishments of one entity, gift, loan, free sample: no sale, no transaction value.
• The price is subject to a condition that cannot be quantifiedPrice tied to the purchase of other goods, or to a service whose value cannot be determined.
• A restriction affects the disposition of the goodsOther than restrictions imposed by law, limited to a geographic area, or without substantial effect on value.
• Proceeds of resale accrue to the seller and cannot be adjusted forIf the amount cannot be determined, the method falls away.
• The parties are related and the relationship influenced the priceThe relationship alone is not enough: it is its influence on the price that rules the method out, and that is demonstrated.
• None of these five situationsMethod 1 applies. Documenting that finding beats leaving it implied.

The related-parties case

What does not rule out method 1

What does rule it out

The relationship itself

A relationship between buyer and seller, on its own, is not enough.

A finding that the relationship influenced the price charged.

The price level

A below-market price, if explained by circumstances specific to the sale.

A price that cannot be explained other than by the relationship.

Evidence expected

A documented, consistent and applied transfer pricing policy.

The absence of any economic justification for the price level.

Test values

A value close to an accepted test value supports method 1.

A persistent, unexplained gap against those values.

The burden of explanation falls on the importer, and it is prepared before the declaration — not at the moment the question is asked.

Adjustments: two columns, never a lump sum

A worked example, assumptions visible

Without the transport breakdown, the customs value would be MAD 102,500. At 10% import duty and 20% VAT in cascade, that MAD 2,500 gap costs roughly MAD 550 per declaration — repeated across a flow, it becomes material.

Classification precedes value

A reminder that is often overlooked: the valuation method does not depend on the classification, but the amount due depends on both. A correct value on the wrong line produces a wrong assessment. So check the line before finalising the calculation.

8471300000Open the tariff record 8517130000Open the tariff record

What value statistics can check

Published unit-value indices are used to spot a level anomaly on a flow, never to fix the value of a transaction. A unit value diverging clearly from the flow average is a signal for internal verification, not proof. The indices appear in the HCP foreign-trade indices and the series in Office des Changes statistics.

Keep the method decision

The valuation file contains: the method retained, the written finding that the higher methods did not apply where it is not the first, the full breakdown of the amount, the documents for each adjustment, and the approver. Reopen the decision if the Incoterm changes, if a retroactive price adjustment occurs, if the relationship with the supplier changes, or if a free-of-charge assist appears on a flow that previously had none.