3. CUSTOMS VALUATION GENERAL AGREEMENT ON TARIFFS AND TRADE Multilateral Trade Negotiations Group "Non-Tariff Measures" RESTRICTED MTN/NTM/W/229 1. CUSTOMS VALUATION Agreement on Implementation of Article VII of The following text of the draft Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade is circulated at the request of a number of delegations for consideration by the Sub-Group. 2. The draft does not commit any delegation to all or any part of the text. (67) Page 20, Article 20:11 the last line should read "... under the GATT, including invoking Article XXIII thereof". Page 24, Article 27, the second sentence should read "such an amendment, once the Parties have concurred in accordance with procedures established by the Committee, shall not come into force for any party until it has been accepted by such party". :: ... Page 35, Note to Article 3, paragraph 4 - in the third line insert ...this Article General Introductory Commentary MTN/NTM/W/229 1. The primary basis for customs value under this Agreement is "transaction value" as defined in Article 1. Article 1 is to be read together with Article 8 which provides, inter alia, for adjustments to the price actually paid or payable in cases where certain specific elements which are considered to form a part of the value for customs purposes are incurred by the buyer, but are not included in the price actually paid or payable for the imported goods. Article 8 also provides for the inclusion in the transaction value of certain considerations which may pass from the buyer to the seller in the form of specified goods or services rather than in the form of money. Articles 2 to 7, inclusive, provide methods of determining the customs value whenever it cannot be determined under the provisions of Article 1. 2. Where the customs value cannot be determined under the provisions of Article 1, there should normally be a process of consultation between the customs administration and importer with a view to arriving at a basis of value under the provisions of Articles 2 or 3. It may occur, for example, that the importer has information about the customs value of identical or similar imported goods which is not immediately available to the customs administration in the port of importation. On the other hand, the customs administration may have information about the customs value of identical or similar imported goods which is not readily available to the importer. Α process of consultation between the two parties will enable information to be exchanged, subject to the requirements of commercial confidentiality, with a view to determining a proper basis of value for customs purposes. MTN/NTM/W/229 3. Articles 5 and 6 provide two bases for determining the customs value where it cannot be determined on the basis of the transaction value of the imported goods or of identical or similar imported goods. Under Article 5.1 the customs value is determined on the basis of the price at which the goods are sold in the condition as imported to an unrelated buyer in the country of importation. The importer also has the right to have goods which are further processed after importation valued under the provisions of Article 5 if he so requests. Under Article 6 the customs value is determined on the basis of the computed value. Both these methods present certain difficulties and because of this the importer is given the right, under the provisions of Article 4, to choose the order of application of the two methods. 4. Article 7 sets out how to determine the customs value in cases where it cannot be determined under the provisions of any of the preceding Articles. MTN/NTM/W/229 Agreement on Implementation of Article VII of the PREAMBLE The parties to this Agreement, Desiring to further the objectives of the General Agreement on Tariffs and Trade and to secure additional benefits for the international trade of developing countries; Recognizing the importance of the provisions of Article VII of the General Agreement on Tariffs and Trade and desiring to elaborate rules for their application in order to provide greater uniformity and certainty in their implementation; Recognizing the need for a fair, uniform, and neutral system for the valuation of goods for customs purposes that precludes the use of arbitrary or fictitious customs values; Recognizing that the basis for valuation of goods for customs purposes should, to the greatest extent possible, be the transaction value of the goods being valued; Recognizing that customs value should be based on simple and equitable criteria consistent with commercial practices and that valuation procedures should be of general application without distinction between sources of supply; Recognizing that valuation procedures should not be used to combat dumping; Hereby agree as follows: |