Customs valuation is all about the determination of the customs value (taxable basis) of thernimports. Generally six methods (the transaction value, the identical goods value, the similarrn.' goods value, the deductive value, the computed value and the fall back methods) of determiningrnthe customs value by the Customs Valuation procedure have been enshrined internationally andrnin Ethiopia as well.rnThe main objective of this researc h is to assess the consistency, fairness and transparency of thernvaluation practice and to see whether the valuation system is adequate enough to regulate thernsubject matter of customs valuation.rnFrom our di sc ussions of the laws, literatures, cases and interviews, the findings of this researchrnportrays that the valuation practice is very much diverted from the law and the practice itself isrnfa shioned by the inconsistent, non-transparent and unfair valuation computations that does notrnreflect the real commercial practices. The valuation system (especially the customs Data-Base)rnand the valuation rules (there is some conflict in the rules themselves) are not adequate enough tornregulate the customs valuation. The Valuation rules are rolled either to the hands of the Customsrn(to raise undue customs revenue) or to the hands of the importer (to get undervaluation) unfairly.rnFrom this finding the thesis recommends to the reformulation and development of the legal,rninstitutional (especially the Customs Data-Base) frameworks and infrastructures. Thern~' recommendation also goes to the installation of transparent valuation system coupled byrnselective risk analysis management system to tackle poss ihle underval uationrnKey Words: - Customs. Customs va luation, Customs value, Customs Data-Base, Importedrngoods, Agreement on Customs Valuation, Customs Proclamation.