WORLD TRADE
ORGANIZATIONWT/DS198/2
G/L/384/Add.1G/VAL/D/4/Add.1
G/AG/GEN/42/Add.1
2 October 2001
(01-4705)
Original:  English
ROMANIA – MEASURES ON MINIMUM IMPORT PRICES
Notification of Mutually Agreed Solution
The following communication, dated 26 September 2001, from the Permanent Mission of the
United States and the Permanent Mission of Romania to the Chairman of the Dispute Settlement
Body, is circulated pursuant to Article 3.6 of the DSU.
_______________
The United States of America and Romania wish to notify the Dispute Settlement Body that
they have reached a mutually satisfactory solution to the matter raised by the Government of theUnited States in WT/DS198/1, dated 8 June 2000, concerning the obligations of Romania under the
WTO Agreement regarding procedures for determining the customs value of imported goods.
Please find attached the text of the exchange of letters dated 25 May 2001 and 26 July 2001
on this subject.  We would ask you to circulate this notification and attachment to the relevant
Councils and Committees, as well as to the Dispute Settlement Body.
(s) Ms. Linnet F. Deily (s) Mrs. Anda Cristina Filip
Ambassador and Permanent Representative Ambassador and Permanent Representative
Permanent Mission of the United States Permanent Mission of Romania
   to the World Trade Organization    to the World Trade OrganizationWT/DS198/2, G/L/384/Add.1,
G/VAL/D/4/Add.1, G/AG/GEN/42/Add.1
Page 2
Letter dated 25 May 2001 from Ms. Catherine Novelli,
Assistant United States Trade Representative for European and the Mediterranean
to Ms. Victoria Campeanu, Director for Multilateral Relations
I have the honour to refer to consultations held 13-14 July 2000 regarding Romania –
Measures on Minimum Import Prices  (WT/DS198) requested by the United States pursuant to
Articles 1 and 4 of the World Trade Organization's Understanding on Rules and Procedures
Governing the Settlement of Disputes .  I would like to memorialize the discussions and conclusions
regarding settlement of the matter reached during these meetings.  We believe that these consultations
were very productive and we are confident that the proposals to which we have agreed will besufficient to reach a mutually satisfactory resolution to this dispute settlement matter.
We also thank you for sharing with us the draft legislation regarding customs valuation, and
its unofficial English translation.  However, the draft legislation is, in important respects, very similar
to the existing legislation which allows customs officers to arbitrarily substitute the database pricesfor declared values when determining transaction va lue.  While we understand that this legislation
was drafted prior to our consultations, it is not acceptable.  Therefore, in accordance with our
discussions during the consultations and thereafter, in order to avoid further dispute settlement
proceedings, our respective governments have agreed to undertake the following steps:
(1) The Government of Romania reaffirms that it strictly uses the valuation methodology
set forth in Articles 1 through 8 in the Customs Valuation Agreement, and
accordingly, does not and will not use minimum reference prices in determining
customs value.  The strengthening of enforcement through regulations will further
ensure a practice in accordance with the WTO.  To this aim, the Government willseek to identify the most adequate form of promoting a special legal act reiterating
and further re-enforcing the exclusive use of the methodology outlined in the
Customs Valuation Agreement and in the Decision Regarding Cases where Customs
Administrations Have Reasons to Doubt the Truth and Accuracy of the Declared
Value.
Such a special legal act will provide for the use of a database system only as a tool in
the risk assessment process and not for the purpose of the determination of the
acceptability of a declared value, and will not give any legal authority to apply
minimum values in the future.
On this basis, the special legal act concerning the reformation of Romania's laws,
statutes, ordinances, decrees, regulations and administrative guidance regarding
customs valuation can be accomplished not later than 15 December 2001.
(2) The Government of the United States will provide the Government of Romania with
materials presenting the benefits of a risk assessment approach to controlling customsfraud.  The United States will identify the ways and means to provide Romania with
technical assistance that is aimed at furthering Romania's progress in implementing
an effective risk assessment system to ensure compliance with its laws pertaining to
imported goods and the Customs Valuation Agreement.
Please confirm that this proposal reflects our mutual understanding so that we may inform the
World Trade Organization that we have reached a mutually satisfactory solution to this matter.WT/DS198/2, G/L/384/Add.1,
G/VAL/D/4/Add.1, G/AG/GEN/42/Add.1
Page 3
Letter dated 26 July 2001 from Mr. Mircea Geoana,
Minister of Foreign Affairs to H.E. Mr. Robert B. Zoellick,
Chief of the Office of the United States Trade Representatives
I have the pleasure to confirm receipt of the letter sent on 25 May 2001 by
Ms. Catherine Novelli, Assistant United States Trade Representative for Europe and the
Mediterranean to Ms. Victoria Campeanu, Director for Multilateral Relations, now in the Ministry of
Foreign Affairs, as follows:
"I have the honour to refer to consultations held 13-14 July 2000 regarding
Romania – Measures on Minimum Import Prices  (WT/DS198) requested by the
United States pursuant to Articles 1 and 4 of the World Trade Organization's
Understanding on Rules and Procedures Go verning the Settlement of Disputes .  I
would like to memorialize the discussions and conclusions regarding settlement of the
matter reached during these meetings.  We believe that these consultations were veryproductive and we are confident that the proposals to which we have agreed will be
sufficient to reach a mutually satisfactory resolution to this dispute settlement matter.
We also thank you for sharing with us the draft legislation regarding customs
valuation, and its unofficial English translation.  However, the draft legislation is, in
important respects, very similar to the existing legislation which allows customsofficers to arbitrarily substitute the database prices for declared values when
determining transaction value.  While we understand that this legislation was drafted
prior to our consultations, it is not acceptable.  Therefore, in accordance with our
discussions during the consultations and thereafter, in order to avoid further dispute
settlement proceedings, our respective governments have agreed to undertake thefollowing steps:
(1) The Government of Romania reaffirms that it strictly uses
the valuation methodology set forth in Articles 1 through 8 in
the Customs Valuation Agreement, and accordingly, does not
and will not use minimum reference prices in determining
customs value.  The strengthening of enforcement through
regulations will further ensure a practice in accordance withthe WTO.  To this aim, the Government will seek to identify
the most adequate form of promoting a special legal act
reiterating and further re-enforcing the exclusive use of the
methodology outlined in the Customs Valuation Agreement
and in the Decision Regarding Cases where CustomsAdministrations Have Reasons to Doubt the Truth and
Accuracy of the Declared Value.
Such a special legal act will provide for the use of a database
system only as a tool in the risk assessment process and not
for the purpose of the determination of the acceptability of adeclared value, and will not give any legal authority to apply
minimum values in the future.
On this basis, the special legal act concerning the reformation
of Romania's laws, statutes, ordinances, decrees, regulationsWT/DS198/2, G/L/384/Add.1,
G/VAL/D/4/Add.1, G/AG/GEN/42/Add.1
Page 4
and administrative guidance regarding customs valuation can
be accomplished not later than 15 December 2001.
(2) The Government of the United States will provide the
Government of Romania with materials presenting thebenefits of a risk assessment approach to controlling customs
fraud.  The United States will identify the ways and means to
provide Romania with technical assistance that is aimed at
furthering Romania's progress in implementing an effective
risk assessment system to ensure compliance with its laws
pertaining to imported goods and the Customs Valuation
Agreement.
Please confirm that this proposal reflects  our mutual understanding so that we
may inform the World Trade Organization that we have reached a mutually
satisfactory solution to this matter."
I have the honour to confirm that the proposed settlement is acceptable to the Government of
Romania, and that the above-mentioned letter and this reply constitute settlement of the disputeRomania – Measures on Minimum Import Prices  (WT/DS198) brought by the United States pursuant
to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes .
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