WORLD TRADE G/VAL/13
18December 1997
ORGANIZATION(97-5552)
Committee onCustoms Valuation
THIRD ANNUAL REVIEW OFTHE IMPLEMENTATION AND
OPERATION OFTHE AGREEMENT ONIMPLEMENTATION
OFARTICLE VIIOFTHE GENERAL AGREEMENT
ONTARIFFS AND TRADE 1994
Background document bytheSecretariat
Article 23oftheAgreement onIgmplementation ofArticle VIIoftheGeneral Agreement on
Tariffs andTrade 1994 provides that"theCommittee shallreview annually theimplementation and
operation ofthisAgreement taking intoaccount theobjectives thereof".
Themainobjectives oftheAgreement arethose listed intheGeneral Introductory Commentary.
Theannual review oftheCommittee should cover theimplementation andoperation oftheAgreement
inthelightofitsobjectives andspecific obligations.
Atitsmeeting on23October 1997, theCommittee conducted itsthirdannual review onthe
basis ofdocument G/VAL/W/22. Thepresent document takes intoaccount thepoints made during
thatreview andthework oftheCommittee atthatmeeting.
Theinformation contained inthisdocument covers theperiod from 1January to
31December 1996.G/VAL/13
Page2
Thecontents ofthisdocument areasfollows:
Page
I. Members, delayed applications, reservations andobserver status ......... 3
II. Officers oftheWTO Committee onCustoms Valuation ................ 9
III. Meetings oftheCommittee ................................. 9
IV. National legislation presented ................................ 9
V. Amendments, interpretations andrectifications ofthe
textoftheagreement ..................................... 10
VI. Other decisions taken bytheCommittee .......................... 10
VII. Technical assistance ..................................... 10
VIII. Report bytheTechnical Committee onCustoms Valuation ............ 11
IX. Consultation anddispute settlement ............................. 11
X. Annual report totheCouncil forTrade inGoods ................... 11G/VAL/13
Page3
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER STATUS
(a) WTO Members (132)
Angola
Antigua andBarbuda
Argentina
Australia
Austria
Bahrain
Bangladesh
Barbados
Belgium
Belize
Benin
Bolivia
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cameroon
Canada
Central African Republic
Chad
Chile
Colombia
Congo
Congo, Democratic Republic ofthe
Costa Rica
Côted'Ivoire
Cuba
Cyprus
Czech Republic
Denmark
Djibouti
Dominica
Dominican Republic
EC
Ecuador
Egypt
ElSalvador
Fiji
Finland
France
Gabon
GambiaGermany
Ghana
Greece
Grenada
Guatemala
Guinea Bissau
Guinea, Rep.of
Guyana
Haiti
Honduras
Hong Kong, China
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Kenya
Korea
Kuwait
Lesotho
Liechtenstein
Luxembourg
Macau
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Mauritania
Mauritius
Mexico
Mongolia
Morocco
Mozambique
Myanmar
Namibia
Netherlands
NewZealand
NicaraguaNiger
Nigeria
Norway
Pakistan
Panama
Papua NewGuinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Rwanda
Saint KittsandNevis
Saint Lucia
Saint Vincent &Gren.
Senegal
Sierra Leone
Singapore
Slovak Republic
Slovenia
Solomon Islands
South Africa
Spain
SriLanka
Suriname
Swaziland
Sweden
Switzerland
Tanzania
Thailand
Togo
Trinidad andTobago
Tunisia
Turkey
Uganda
United Arab Emirates
United Kingdom
United States
Uruguay
Venezuela
Zambia
ZimbabweG/VAL/13
Page4
(b) Delayed Application andReservations
Theprovisions forspecial anddifferential treatment available fordeveloping country
Members havebeeninvoked asfollows:
(i) Article 20.1(delayed application oftheprovisions oftheAgreement) (51)
Bahrain
Bangladesh
Bolivia
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Central African Republic
Chile
Colombia
Costa Rica
Côted'Ivoire
Cuba
Djibouti
Dominican Republic
Ecuador
Egypt
ElSalvador
Gabon
Ghana
Guatemala
Honduras
Indonesia
Israel
Jamaica
KenyaKuwait
Madagascar
Malaysia
Mali
Malta
Mauritania
Mauritius
Morocco1
Myanmar
Nicaragua
Nigeria
Pakistan
Paraguay
Peru1
Philippines
Senegal
SriLanka
Thailand
Togo
Tunisia
Uganda
United Arab Emirates
Uruguay
Venezuela
Zambia
_________________1Theinvocation ofthespecial provisions available fordeveloping country Members under theCustoms Valuation
Agreement 1979 shallcontinue toapply under theWTO Customs Valuation Agreement forthedeveloping country Member
concerned (WT/L/38).G/VAL/13
Page5
(ii) Article 20.2(delayed application ofthecomputed value method) (49)
Bahrain
Bangladesh
Bolivia
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Chile
Colombia
Costa Rica
Côted'Ivoire
Djibouti
Dominican Republic
Ecuador
Egypt
ElSalvador
Gabon
Guatemala
Honduras
Indonesia
Israel
Jamaica
Kenya
Kuwait
MadagascarMalaysia
Mali
Malta
Mauritania
Mexico1
Morocco1
Myanmar
Nicaragua
Nigeria
Pakistan
Peru1
Philippines
Sénégal
Singapore
SriLanka
Tanzania
Thaniland
Togo
Tunisia
Turkey1
United Arab Emirates
Unuguay
Venezuela
ZambiaG/VAL/13
Page6
(iii) Annex III,paragraph 2(reservation concerning minimum values) (31)
Bahrain
Bangladesh
Burkina Faso
Chile
Colombia
Côted'Ivoire
Djibouti
Dominican Republic
Gabon
GuatemalaIndonesia
Jamaica
Kenya
Madagascar
Malaysia
Malta
Mauritania
Myanmar
Pakistan
ParaguayPeru1
Philippines
Singapore
SriLanka
Thailand
Togo
Tunisia
Uganda
Uruguay
Venezuela
Zambia
(iv) Annex III,paragraph 3(reservation concerning reversal ofsequential order ofArticles
5and6)(47)
Argentina1
Bahrain
Bangladesh
Brazil1
Brunei Darussalam
Burkina Faso
Cameroon
Chile
Colombia
Costa Rica
Côted'Ivoire
Djibouti
Dominican Republic
Ecuador
Egypt
ElSalvadorGabon
Guatemala
Honduras
India1
Indonesia
Israel
Jamaica
Kenya
Madagascar
Malawi1
Malaysia
Malta
Mexico1
Morocco1
MyanmarNicaragua
Pakistan
Peru1
Philippines
Singapore
SriLanka
Thailand
Togo
Tunisia
Turkey1
Uganda
United Arab Emirates
Uruguay
Venezuela
Zambia
Zimbabwe1
_________________1Theinvocation ofthespecial provisions available fordeveloping country Members under theCustoms Valuation
Agreement 1979 shallcontinue toapply under theWTO Customs Valuation Agreement forthedeveloping country Member
concerned (WT/L/38).G/VAL/13
Page7
(v) Annex III,paragraph 4(reservation concerning application ofArticle 5.2
whether ornottheimporter sorequests) (45)
Argentina1
Bahrain
Bangladesh
Brazil1
Brunei Darussalam
Burkina Faso
Cameroon
Chile
Colombia
Costa Rica
Côted'Ivoire
Djibouti
Dominican Republic
Ecuador
Egypt
ElSalvadorGabon
Guatemala
Honduras
India1
Indonesia
Israel
Jamaica
Kenya
Madagascar
Malaysia
Malta
Mexico1
Morocco1
Myanmar
Nicaragua
NigeriaPakistan
Peru1
Philippines
Singapore
SriLanka
Thailand
Togo
Tunisia
Turkey1
Uruguay
Venezuela
Zambia
Zimbabwe1
_________________1Theinvocation ofthespecial provisions available fordeveloping country Members under theCustoms Valuation
Agreement 1979 shallcontinue toapply under theWTO Customs Valuation Agreement forthedeveloping country Member
concerned (WT/L/38).G/VAL/13
Page8
(c) Observer Governments (32)
Albania
Algeria
Andorra
Armenia
Azerbaijan
Belarus
Cambodia
China
Croatia
Estonia
EthiopiaFormer Yugoslav
Rep.ofMacedonia
Georgia
Holy See
Jordan
Kazakhstan
Kyrgyz Rep.
Latvia
Lithuania
Moldova
NepalOman
Russian Federation
Saudi Arabia
Seychelles
Sudan
Taipei, Chinese
Tonga
Ukraine
Uzbekistan
Vanuatu
VietNam
(d) Observer International Organizations (6)2
World Customs Organization
World Bank
IMF
UNCTAD
ACP
IADB
2These organizations nowhave official observer status following Agreement intheCommittee (G/VAL/M/5) and
Agreements between theWorld Bank andtheIMFwiththeWTO (WT/L/195).G/VAL/13
Page9
II. OFFICERS OFTHE WTO COMMITTEE ONCUSTOMS VALUATION
Chairman: Mr.Tullio diPietro (Italy)
Vice-Chairman: Mr.Ernesto deLaGuardia (Argentina)
III. MEETINGS OFTHE COMMITTEE
During thereporting period, theCommittee hasheldtwomeetings on25April 1997 andon
23October 1996. Theminutes ofthese meetings arecontained indocuments G/VAL/M/5 and
G/VAL/M/6, respectively.
IV. NATIONAL LEGISLATION PRESENTED
(i) Texts ofnational legislation
Article 22oftheAgreement requires eachMember toinform theCommittee ofany
changes initslawsandregulations relevant totheAgreement andintheadministration ofsuch
laws andregulations. Atitsfirstmeeting, theCommittee agreed onprocedures forthe
notification ofnational legislation (G/VAL/M/1, paragraphs 29-35, 71and72).
During thereporting period, thefollowing communications andtexts have been
submitted:
Argentina G/VAL/N/1/ARG/1
Bulgaria G/VAL/N/1/BGR/1
Canada G/VAL/N/1/CAN/2
Fiji G/VAL/N/1/FJI/1
Iceland G/VAL/N/1/ISL/1
Liechtenstein G/VAL/N/1/LIE/1
Singapore G/VAL/N/1/SGP/1
(ii) Checklist ofissues
Atitsfirstmeeting,theCommitteeagreedonproceduresforthesubmissionofachecklist
ofissues (G/VAL/M/1, paragraphs 36-39).
During thereporting period, thefollowing communications havebeensubmitted:
Fiji G/VAL/N/2/FJI/1
Singapore G/VAL/N/2/SGP/1
(iii) Examination ofnational legislation
Atitsmeeting of25April 1997, theCommittee pursued itsexamination ofvarious
communications andimplementing legislations. TheCommittee agreed toconclude the
examination ofthelegislations ofFiji(G/VAL/N/1/FJI/1), Bulgaria (G/VAL/N/1/BGR/1),
andLiechtenstein (G/VAL/N/1/LIE/1). Itcontinued examination ofthelegislations ofMexico
(VAL/1/Add.25/Suppl.1, 2and3)andofIndia (G/VAL/N/1/IND/2). TheCommittee was
informed thatoneMember, Argentina (G/VAL/N/1/ARG/1), hadsubmitted communications
indicating thattheirlegislation notified under theTokyo Round Customs Valuation Agreement
remained validunder theWTO Customs Valuation Agreement. TheCommittee tooknoteof
thecommunication from Fijicontaining itsresponses totheChecklist ofIssues
(G/VAL/N/2/FJI/1). TheCommittee noted that52developing countries hadevoked thedelayG/VAL/13
Page10
period provided inArticle 20.1, andthat28ofthese countries would have toapply the
Agreement by1January 2000 andanother 20bytheendoftheyear2000. Itwasnoted that
thetransition period, during which developing countries should prepare forimplementation,
washalfover.
Atthemeeting of25October, theCommittee continued examination ofthelegislations
ofMexico andIndia(G/VAL/W/8, G/VAL/W/14, andG/VAL/W/19) andinitiated examination
ofthelegislation ofSingapore (G/VAL/N/1/SGP/1). TheCommittee noted thatIceland had
notified itslegislation. However ithadbeenreceived toolateforthismeeting andwould be
taken upatthenextmeeting oftheCommittee. TheCommittee tooknoteofthecommunication
fromSingapore containing itsresponses totheChecklist ofIssues (G/VAL/N/2/SGP/2). The
Committee again noted thesituation withregard tothedeveloping countries which hadevoked
thedelay period under Article 20.1. With thenotification ofSingapore 'simplementing
legislation, thenumber ofthese countries waspresently 51,ofwhich 27would havetoapply
theAgreement by1January 2000, and20bytheendoftheyear2000.
(iv) Information ontheapplication oftheCommittee Decisions
Information ontheapplication oftheDecision ontheTreatment ofInterest Charges
intheCustoms Value ofImported Goods andofparagraph 2oftheDecision ontheValuation
ofCarrier Media Bearing Software forDataProcessing Equipment (G/VAL/5), made available
byMembers, issummarized indocument G/VAL/W/5/Rev.3/Corr.1. InDecember, a
notification wasreceived from Slovenia onitsapplication oftheDecisions; itiscontained
inG/VAL/N/3/SVN/1.
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OFTHETEXT OFTHE
AGREEMENT
Atitsfirstmeeting on12May1995, theCommittee adopted thedecisions relating tothe
interpretation oftheAgreement, which hadpreviously beenadopted bytheTokyo Round Committee
(G/VAL/M/1, paragraphs 66-67). Thedecisions were reproduced indocument G/VAL/5.
TheCommittee agreed torectify theSpanish textoftheInterpretative Note toArticle 1of
theAgreement through theissuance ofaProcès Verbale. TheDirector-General issued aProcès Verbale
indocument WT/Let/147 formally correcting thetextbyincluding thecorrection, "mantenimiento,"
inthemargin oftheauthentic textoftheAgreement.
VI. OTHER DECISIONS TAKEN BYTHE COMMITTEE
Atitsfirstmeeting on12May1995, theCommittee adopted otherdecisions which arecontained
indocument G/VAL/5. TheCommittee alsoadopted decisions thatwere referred bytheMinisters
atMarrakesh totheCommittee foradoption. Thetextsofthedecisions arecontained indocument
G/VAL/1. Nonewdecisions were adopted during thereporting period.
VII. TECHNICAL ASSISTANCE
Technical assistance aimed athelping countries intheirpreparations fortheapplication ofthe
Agreement hascontinued tobeamatter ofhighpriority toMembers, totheCommittee onCustoms
Valuation andtotheTechnical Committee. Following therecommendation fromtheCouncil onTrade
inGoods, theCommittee hasfocused itsattention ontechnical assistance activities during thereporting
period. Aproposal bytheUnited States wascirculated (G/VAL/W/18) onanincreased roleforthe
Committee insuchactivities. Thisprompted three informal meetings oftheCommittee, heldon4
June, 11Julyand26September 1997. Itwasagreed attheOctober meeting thattheCommittee wouldG/VAL/13
Page11
discuss, inasystematic andformal manner, technical assistance withaviewtocontributing towards
streamlining andtailoring technical assistance totheparticular needs ofeachdeveloping country. Such
discussions would ensue intheformal meetings oftheCommittee aswellasininformal meetings held
asandwhen appropriate intheinterim. AChairman 'sRequest forInformation concerning the
implementation oftheAgreement wascirculated toMembers (G/VAL/11).
Information ontechnical assistance activities iscontained inworking document G/VAL/8/Add.1
andAdd.2 which reproduces information contained inWCO documents 41.091 and41.719.
VIII. REPORT BYTHE TECHNICAL COMMITTEE ONCUSTOMS VALUATION
Meetings oftheTechnical Committee
Therepresentative oftheWorld Customs Organization (WCO) presented detailed oralreports
ontheFourth andFifth Sessions oftheTechnical Committee onCustoms Valuation, heldon
3-7March 1997 and6-10October 1997, respectively.
TheCommittee onCustoms Valuation tooknoteofthese reports andexpressed appreciation
forthecontinued valuable work oftheTechnical Committee.
IX. CONSULTATION AND DISPUTE SETTLEMENT
During thereporting period, theEuropean Communities (WT/DS53/1), Norway (WT/DS53/2)
andSwitzerland (WT/DS53/3) continued toconsult withMexico under Article 19oftheAgreement
andpursuant toArticle XXII:1 oftheGATT 1994 andArticle 4oftheUnderstanding onRules and
Procedures Governing theSettlement ofDisputes, ontheMexican Customs LawandtheResolution
establishing thegeneral rulesgoverning theapplication ofthecustoms provisions oftheNorth American
FreeTrade Agreement.
X. ANNUAL REPORT TOTHE COUNCIL FOR TRADE INGOODS (G/VAL/W/21)
TheCommittee adopted itsannual report totheCouncil forTrade inGoods inaccordance with
therequirements ofArticle 23oftheAgreement (G/L/205).G/VAL/13
Page12
ANNEX I
Information onNational Legislation
Below arelisted thereferences ofthedocuments3containing national laws, regulations etc.
andreplies totheChecklist ofIssues (VAL/2/Rev.1 andRev.2) received from Members.
Member National legislation Replies tothe
Checklist ofIssues
Argentina VAL/1/Add.22 +Suppl. 1-4 VAL/2/Rev.2/Add.4
+Suppl.2/Rev.1
G/VAL/N/1/ARG/1
Australia VAL/1/Add.14 +Suppl.1-4 VAL/2/Rev.1/Add.12 +Suppl.1
G/VAL/N/1/AUS/1
Botswana VAL/1/Add.16 Notreceived
Brazil VAL/1/Add.20 +Suppl.1 VAL/2/Rev.2/Add.3
G/VAL/N/1/BRZ/1
Bulgaria G/VAL/N/1/BGR/1
Canada VAL/1/Add.17 +Suppl.1-3 VAL/2/Rev.1/Add.14
G/VAL/N/1/CAN/1
Cyprus VAL/1/Add.26 VAL/2/Rev.2/Add.7
Czech Rep. VAL/1/Add.18 +Suppl.1/ VAL/2/Rev.1/Add.15
Corr.1-2 +Suppl.1
G/VAL/N/1/CZE/1 G/VAL/N/1/CZE/2
European VAL/1/Add.2 +Suppl.1-13 VAL/2/Rev.1/Add.6
Economic Community +Suppl.1
G/VAL/N/1/EEC/1/Rev.1
Fiji G/VAL/N/1/FJI/1 G/VAL/N/2/FJI/1
Hong Kong VAL/1/Add.9 Notapplicable
G/VAL/N/1/HKG/1
Hungary VAL/1/Add.6 VAL/2/Rev.1/Add.4
G/VAL/N/1/HUN/1
India VAL/1/Add.24 +Suppl.1 VAL/2/Rev.2/Add.6
G/VAL/N/1/IND/2
Japan VAL/1/Add.7 VAL/2/Rev.1/Add.8
G/VAL/N/1/JPN/1
Korea, Rep.of VAL/1/Add.19 +Suppl.1-4 VAL/2/Rev.2/Add.1
+Suppl.2/Corr.1-2 +Suppl.1
+Suppl.3/Corr.1
G/VAL/N/1/KOR/1
Lesotho VAL/1/Add.21 +Suppl.1 VAL/2/Rev.2/Add.2
Liechtenstein G/VAL/N/1/LIE/1
Macau G/VAL/N/1/MAC/1
Malawi VAL/1/Add.27
Mexico VAL/1/Add.25 +Suppl.1-3 VAL/2/Rev.2/Add.8
+Suppl.1/Rev.1
NewZealand VAL/1/Add.12 +Suppl.1 VAL/2/Rev.1/Add.10
G/VAL/N/1/NZL/1
3Documents beginning with"VAL" aredocuments issued under theTokyo Round Committee onCustoms ValuationG/VAL/13
Page13
Norway VAL/1/Add.11 +Corr.1 VAL/2/Rev.1/Add.7
+Suppl.1-2
G/VAL/N/1/NOR/1
Poland VAL/1/Add.28
Romania VAL/1/Add.8 +Suppl.1-2 VAL/2/Rev.1/Add.9
G/VAL/N/1/ROM/1
Singapore G/VAL/N/1/SGP/1 G/VAL/N/2/SGP/1
Slovak Rep. VAL/1/Add.18 +Suppl.1/ VAL/2/Rev.1/Add.15
Corr.1-2 +Suppl.1
G/VAL/N/1/SVK/1
Slovenia G/VAL/N/1/SVN/1
South Africa VAL/1/Add.15 +Corr.1 VAL/2/Rev.1/Add.13
+Suppl.1-3
G/VAL/N/1/ZAF
Switzerland VAL/1/Add.5 Notapplicable
G/VAL/N/1/CHE/1
Turkey VAL/1/Add.29
G/VAL/N/1/TUR/1
United States VAL/1/Add.1 +Suppl.1-5 VAL/2/Rev.1/Add.1
G/VAL/N/1/USA/1
Zimbabwe VAL/1/Add.23 VAL/2/Rev.2/Add.5
G/VAL/N/1/ZWE/1