How are barter deals to be treated for valuation purposes?
Ans: Barter deals consist of an exchange of goods or services of approximately equal value. The barter mayor may not be settled in monetary terms. In the former case, there is no transaction value nor any objective or quantifiable data for determining the value. Hence, methods other than the transaction value method have to be applied. In the latter case also where a barter transaction is expressed in monetary terms, the same will be subject to the provisions of Article 1, paragraph l(b) of the ACV. Here again, application of a method other than the transaction value method will be appropriate.
