WORLD TRADE G/VAL/N/1/CZE/2
18October 1996
ORGANIZATION(96-4332)
Original: English Committee onCustoms Valuation
NOTIFICATION UNDER ARTICLE 22.2OFTHE AGREEMENT
ONIMPLEMENTATION OFARTICLE VII
OFTHE GENERAL AGREEMENT ONTARIFFS AND TRADE 1994
CZECH REPUBLIC
Thefollowing communication, dated 3October 1996, hasbeenreceived fromthePermanent
Mission oftheCzech Republic.
_______________
Inaccordance withtheprovisions ofArticle 22.2oftheAgreement onImplementation of
Article VIIoftheGATT 1994 Ihavethehonour tonotify theCommittee onCustoms Valuation of
theresponses bytheCzech Republic totheChecklist ofIssues.
1. Questions concerning Article 1:
(a) Sales between related persons:
(i) Aresalesbetween related persons subject tospecial provisions?
Theprovisions intheAgreement astosales between related persons areincorporated in
Section 65,paragraph 3andSection 66ofCustoms Act(ActoftheCzech National Council of
15December 1992 No.13/1993 Collection ofLaws, theCustoms Act)(seeG/VAL/N/1/CZE/1).
Regulation oftheMinistry ofFinance of17February 1993, No.92/1993 Collection ofLaws which
implements certain dispositions oftheCustoms ActinSection 3contains thefollowing interpretation
oftheterm"members ofthesame family": "Persons shallbeconsidered asmembers ofthesame
family onlyiftheirmutual relationship isas
(a) parents andchildren;
(b) siblings;
(c) cousins;
(d) grandparents andgrandchildren;
(e) uncle orauntandnephew orniece;
(f) father-in-law ormother-in-law andson-in-law ordaughter-in-law;
(g) brother-in-law anddaughter-in-law; and
(h) family orother relations, ifanyinjury incurred byoneofthem would befeltbytheother as
itsown.
(ii) Isthefactofintercompany prices prima facieconsidered asgrounds forregarding therespective
prices asbeing influenced?
No-seeCustoms Act,Section 66,paragraph 3,firstsentence.G/VAL/N/1/CZE/2
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(iii) What istheprovision forgiving thecommunication oftheafore-mentioned grounds inwriting
iftheimporter sorequests? (Article 1.2(a)).
Article 1.2(a) oftheAgreement isincorporated inSection 66,lastsentence oftheCustoms
Act.
(iv) How hasArticle 1.2(b) beenimplemented?
Theprovision inquestion oftheAgreement isincorporated inSection 66,paragraph 3,
paragraphs 4to6oftheCustoms Act.
(b) Price oflostordamaged goods:
Arethere anyspecial provisions orpractical arrangements concerning thevaluation oflost
ordamaged goods?
TheCzech Republic considers thattheproblem oflostordamaged goods ispartprocedural
andpartvaluation. From thepartofprocedure thisquestion isregulated byprovision ofSection 288,
paragraphs 1to3oftheCustoms Act,asfollows:
"Section 288
(1) Thecustoms office shallrepay orremit import orexport dutyifitestablishes thattheamount
ofsuchdutyentered intheaccounts relates togoods rejected bytheimporter because theyweredefective
ordidnotcomply withtheterms ofthecontract onthebasisofwhich theywereimported. Defective
goods shallbedeemed toinclude goods damaged prior totheirrelease.
(2) Thecustoms office shallrepay orremit dutyoncondition that:
(a) thegoods havenotbeenused, except forsuchinitial useasmaybenecessary toestablish a
defect, orthattheydonotcomply withthecontractual terms, and
(b) thegoods were exported backtoanother country.
(3) Attherequest oftheauthorized person, thecustoms office shallpermit thegoods, instead of
being re-exported, tobedestroyed under thedirect supervision ofthecustoms office ortobeplaced,
forthepurposes oftheir subsequent re-exportation, under thetransit procedure orthecustoms
warehousing procedure, orinafreecustoms zoneorafreecustoms warehouse. Fortheaforesaid
purposes, thegoods shallbedeemed tobeforeign goods."
From thepartofvaluation thisquestion isregulated byprovision ofSection 74oftheCustoms
Act.
2. How hastheprovision ofArticle 4toallow theimporter anoption toreverse theorder of
application ofArticles 5and6beenimplemented?
Theprovision inquestion isincorporated inSection 71,paragraph 3oftheCustoms Act.
3. How hasArticle 5.2beenimplemented?
Theprovision inquestion isincorporated inSection 70,paragraph 3oftheCustoms Act.
4. How hasArticle 6.2beenimplemented?
Theprovision inquestion isincorporated inSection 71,paragraph 2oftheCustoms Act.G/VAL/N/1/CZE/2
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5. Questions concerning Article 7:
(a) What provisions havebeenmade formaking value determinations pursuant toArticle 7?
Theprovision inquestion isincorporated inSection 72oftheCustoms Act.
(b) What istheprovision forinforming theimporter ofthecustoms value determined under
Article 7?
Theprovision ofArticle 7.3isincorporated inSection 72,paragraph 3oftheCustoms Act.
(c) Aretheprohibitions found inArticle 7.2delineated?
Theprovision ofArticle 7.2isincorporated inSection 72,paragraph 2oftheCustoms Act.
6. How havetheoptions found inArticle 8.2beenhandled? Inthecaseoff.o.b. application,
areex-factory prices alsoaccepted?
Theprovision inquestion isincorporated inSection 75,paragraph 1,letters (e)and(f)ofthe
Customs Act. IntheCzech Republic thefollowing elements aretobeincluded intransaction value:
(e) thecostoftransport andinsurance oftheimported goods totheplace oftheirintroduction
intothiscountry;
(f) loading, unloading andhandling charges associated withthetransport oftheimported goods
totheplace oftheirintroduction intothiscountry.
7. Where istherateofexchange published, asrequired byArticle 9.1?
Rateofexchange ispublished in:
(a) dailies; and
(b) teletext ofCzech Television.
8. What steps havebeentaken toensure confidentiality, asrequired byArticle 10?
Theprovision inquestion isprotected inSection 51,paragraph 6oftheCustoms Act:
"(6) Thecustoms authorities maynotconvey documents anddataandinformation toother persons
without thepermission ofthepertinent person, except incases where theycandosounder special
regulations."
9. Questions concerning Article 11:
(a) What rights ofappeal areopentotheimporter oranyother person?
(i) Administrative procedure
Theprovision inquestion isincorporated inSection 104,paragraph 6oftheCustoms Act:
"(6) Without prejudice totheparagraph 5,thedeclarant mayappeal adecision within onemonth
ofthedayfollowing thedaywhen thedecision wasdelivered."
According toprovision ofSection 57oftheActNo.71/1967 Collection ofLaws concerning
Administrative Procedure (Code ofAdministrative Procedure), "Customs office which issued the
contested decision mayitself decide ontheappeal, ifitgrants theappeal tothefullextent andifitsG/VAL/N/1/CZE/2
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decision doesnotaffect another party totheproceedings, other thantheappellant, oriftheother parties
agree thereto. Ifthecustoms office which issued thecontested decision doesnotdecide ontheappeal,
itshallsubmit theappeal together withtheresults ofthesupplemented proceedings andthefilesof
thecasetotheappellate regional customs office notlaterthanwithin 30daysofthedayithadreceived
theappeal."
(ii) Judicial procedure
After decision ofappellate regional customs office which isinlegaleffect, further appeal may
bemade tothelocalcivilCourt according toSections 247to250kofCode ofCivil Court Procedure
No.99/1963 Collection ofLaws.
(b) How ishetobeinformed ofhisrighttofurther appeal?
Theprovision ofArticle 11.3isincorporated inSection 104,paragraphs 2and6oftheCustoms
Act:
"(2) Adecisionwherebythegoodsareplacedundertheproposedcustomsprocedureshallnotinclude
grounds forthedecision andinstructions regarding appeal."
"(6) Without prejudice totheparagraph 5,thedeclarant mayappeal adecision within onemonth
ofthedayfollowing thedaywhen thedecision wasdelivered."
10. Provide information onthepublication, asrequired byArticle 12,of:
(a)(i) therelevant national laws:
Regulations constituting therelevant lawsandregulations intheCzech Republic arepublished
intheCollection ofLaws oftheCzech Republic andhave been reproduced indocument
G/VAL/N/1/CZE/1.
(ii) theregulations concerning theapplication oftheAgreement:
Regulations constituting therelevant lawsandregulations intheCzech Republic arepublished
intheCollection ofLaws oftheCzech Republic andhave been reproduced indocument
G/VAL/N/1/CZE/1.
(iii) thejudicial decision andadministrative rulings ofgeneral application relating totheAgreement:
Nojudicial decisions oradministrative rulings haveyetbeenmade pursuant toimplementation
oftheAgreement.
(iv) general orspecific lawsbeing referred tointherules ofimplementation ofapplication:
ActoftheCzech National Council of15December 1992 No.13/1993 Collection ofLaws,
theCustoms Act,Regulation oftheMinistry ofFinance of17February 1993, No.92/1993 Collection
ofLaws which implements certain dispositions oftheCustoms Act,ActNo.71/1967 Collection of
Laws concerning Administrative Procedure (Code ofAdministrative Procedure) andCode ofCivil
Court Procedure No.99/1963 Collection ofLaws. TheLegislation ispublished intheCollection of
Laws oftheCzech Republic.G/VAL/N/1/CZE/2
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(b) Isthepublication offurther rules anticipated? Which topics would theycover?
InJanuary 1996, theCzech Government submitted totheParliament oftheCzech Republic
draftlegislation which would alsoamend aprovision inthecustoms valuation area, byembodying
theDecisionoftheWTOCommitteeonCustomsValuationregardingcaseswherecustomsadministration
hasreason todoubt thetruthoraccuracy ofthedeclared value. Some newprovisions fortheupdated
Ministry ofFinance Regulation were being drafted toimplement certain provisions oftheCustoms
Act,concerning costs oftransport, Interpretative Notes, etc.
11. Questions concerning Article 13:
(a) Howistheobligation ofArticle 13(lastsentence) being dealtwithintherespective legislation?
Theprovision inquestion isincorporated inSection 123oftheCustoms Act,asfollows:
"Section 123
Atthedeclarant 'srequest, thecustoms office maypermit thatthegoods bedisposed ofprior
totheirrelease. Thecustoms office shallgrant thepermit inevery casewhen thegrounds fornot
releasing thegoods aremerely thenecessity ofdetermining theorigin ofthegoods, theplace oftheir
dispatch, theirtariff classification ortheircustoms value. Security shallbeprovided foranycustoms
debtwhich doesnotarise."
(b) Have additional explanations beenlaiddown?
No.
12. Questions concerning Article 16:
(a) Does therespective national legislation contain aprovision requiring customs authorities to
giveanexplanation inwriting astohowthecustoms value wasdetermined?
Theprovision inquestion isincorporated inSection 73oftheCustoms Act.
(b) Arethere anyfurther regulations concerning anabove-mentioned request?
Seeanswers to1(a)(iii) and5(b).
13. How havetheInterpretative Notes oftheAgreement beenincluded?
Theprovisions inquestion arenotyetincorporated incustoms legislation (seeanswer to10(b)).
TheInterpretative Notes areapplied through theprovision ofSection 318,asfollows:
"Section 318
Where aninternational treaty contains provisions differing fromthisActorfromregulations
issued thereunder, theprovisions oftheinternational treaty shallapply."
Agreement onimplementation ofArticle VIIoftheGATT 1994ispublished inNo.191/1995
Collection ofLaws.G/VAL/N/1/CZE/2
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14. Howhavetheprovisions oftheDecisions ontheTreatment ofInterest Charges intheCustoms
Value ofImported Goods beenimplemented?
Theprovision inquestion isincorporated inSection 75m, paragraph 1,letter(c)oftheCustoms
Act.
15. Forthose countries applying paragraph 2oftheDecision ontheValuation ofCarrier Media
Bearing Software forDataProcessing Equipment, howhavetheprovisions ofthisparagraph
beenimplemented?
Theprovision inquestion isincorporated inSection 77oftheCustoms Act.
Forallquestions listed above, anindication ofthereferences isrequested.