Customs Valuation of goods is an important aspect of trade facilitation. In Nepal, the process of customs valuation for the customs tariff was systematized only after the introduction of Customs Act, 1962. In 1997, the Customs Act was amended and basic valuation provisions based on transaction price were included in the Act. However, ACV is yet not fully implemented. At present Nepal's customs valuation system is hybrid of BDN and ACV. Nepal became a member of WTO on April 23, 2004. The country enjoyed a grace period of three years to fully implement WTO Valuation Agreement and is bound to introduce all provisions of the valuation agreement from 1st January, 2007. However, the country still has to make acts and regulations compatible with the provisions of the WTO valuation Agreement...