This paper documents the adoption of transaction valuation reform in the Philippines and assesses its impact on collection, customs administration cost, and business transaction cost. It has been a major concern of the Philippine customs authorities and critics of the reform that giving up the use of published official customs values in order to adopt transaction values - defined as the prices actually paid or payable by the buyer to or for the benefit of the seller for the imported goods- would lower customs collection. On the contrary, as this paper shows the use of transaction values expanded customs revenues.
