Customs value is a crucial factor in international trade, as it determines the amount of duty and tax to be paid on goods that are being imported or exported. The customs value of a product is the value at which the product is sold in the country of export, including all costs incurred up to the point of importation. When determining the customs value of a product, it is important to include all costs that are directly related to the production and transportation of the product. These costs include: 1. R&D Costs – Research and development costs that are incurred in the process of designing and developing a product should be included in the customs value. These costs are included because they are directly related to the production of the product and cannot be avoided if the product is to be developed. 2. IT Costs – The cost of using technology to develop and produce a product should also be included in the customs value. Software and hardware used to design and develop the product, as well as any other technological expenses such as maintenance and licensing fees, should be included. 3. Patent Costs – The expenses incurred in securing and protecting any patents that are associated with the product should be included in the customs value. Patent costs are considered an essential aspect of product design and development, and should therefore be included. 4. Transport Costs – Any expenses associated with the transportation of the product should be included in the customs value. This includes the cost of shipping, insurance, packing, and loading the product onto transportation vehicles. 5. Insurance – Expenses related to insurance coverage for the product, including both during transportation and while in storage, should also be included in the customs value. On the other hand, general overhead costs that do not directly relate to the production and transportation of the product, such as Célines’ sweets budget, should not be included in the customs value. These types of costs are not considered essential to the production and transportation of the product, and including them in the customs value could result in an inaccurate valuation of the product. In conclusion, when determining the customs value of a product, it is important to include all costs that are directly related to the production and transportation of the product. R&D costs, IT costs, patent costs, transport costs, and insurance expenses are all relevant factors that should be taken into account.