WORLD TRADE
ORGANIZATIONG/VAL/N/2/TPKM/1
13 June 2002
(02-3289)
Committee on Customs Valuation Original:  English
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE
AGREEMENT ON CUSTOMS VALUATION
Checklist of Issues
SEPARATE CUSTOMS TERRITORY OF TAIWAN,
PENGHU, KINMEN AND MATSU
The following communication, dated 24 May 2002, has been received from the Permanent
Mission of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.
_______________
1. Questions concerning Article 1:
(a) Sales between related persons:
(i) Are sales between related persons subject to special provisions?
Yes, such provisions can be found in item 4, paragraph 1, Article 26, and paragraph 2, Article
26 of the Customs Law, and Article 13 of the Rules Governing the implementation of the
Customs Law.  All of the above articles reflect the related articles of the Agreement on
Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (hereafter
referred to as the Agreement).
(ii) Is the fact of intercompany prices prima facie considered as grounds for regarding the
respective prices as being influenced?
No, intercompany prices will not automatically be regarded as being influenced by the
relationship.  If the importer can prove or if Customs has investigated and determined that the
prices are not influenced by the relationship, then the intercompany price will be accepted.
(iii) What is the provision for giving the communication of the above-mentioned grounds in
writing if the importer so requests (Article 1.2(a))?
The provision is contained in paragraph 2, Article 13 of the Rules Governing the
Implementation of the Customs Law.
(iv) How has Article 1.2(b) been implemented?
The provision is contained in paragraph 3, Article 13 of the Rules Governing the
Implementation of the Customs Law.G/VAL/N/2/TPKM/1
Page 2
(b) Price of lost or damaged goods:
Are there any special provisions or practical arrangements concerning the valuation of lost or
damaged goods?
The special provisions are contained in Articles 45 and 46 of the Customs Law.  The related
Customs procedures are prescribed in Article 39, 40, 41, 42 and 43 of the Rules Governing theImplementation of the Customs Law.
2. How has the provision of Article 4 to allow the importer an option to reverse the order
of application of Articles 5 and 6 been implemented?
The provision is contained in paragr aph 2, Article 29 of the Customs Law.
3. How has Article 5.2 been implemented?
The provision is contained in paragr aph 5, Article 29 of the Customs Law.
4. How has Article 6.2 been implemented?
The provision is contained in paragraph 3, Article 17 of Rules Governing the Implementation
of the Customs Law.
5. Questions concerning Article 7:
(a) What provisions have been made for making value determinations to Article 7?
The provisions are contained in Article 31 of the Customs Law and Article 18 of the Rules
Governing the Implementation of the Customs Law.
(b)  What is the provision for informing the im porter of the customs value determined under
Article 7?
The provision is contained in paragr aph 2, Article 31 of the Customs Law.
(c) Are the prohibitions found in Article 7.2 delineated?
The prohibitions are delineated and contained in paragraph 2, Article 18 of the Rules
Governing the Implementation of the Customs Law.
6. How have the options found in Article 8.2 been handled? In the case of f.o.b. application,
are ex-factory prices accepted?
Chinese Taipei uses the C.I.F. basis for valuation;  therefore, the entire cost of charges listed in
Article 8.2 of the Agreement shall be added to the Customs value.  The provision is contained in item
5 and 6, paragraph 3, Article 25 of the Customs Law.
7. Where is the rate of exchange published, as required by Article 9.1?
The rate of exchange is published in major newspapers by the Directorate General of
Customs, the Ministry of Finance, according to Article 18 of the Customs Law.  The trader can also
inquire about rates by dialling Customs’ automa ted telephone information system.  In addition, the
rate of exchange can be found on the Directorate General of Customs’ web site.G/VAL/N/2/TPKM/1
Page 3
8. What steps have been taken to ensure confidentiality, as required by Article 10?
Requirements to ensure confidentiality are cont ained in Article 9 of the Customs Law, which
applies to customs valuation and other customs matters.
9.  Questions concerning Article 11:
(a) What rights of appeal are open to the importer or any other person?
According to Article 40 of the Customs Law, if the duty-payer is dissatisfied with Customs’
decision regarding customs value or other customs matters of  imported goods, he/she can file a
written protest with Customs requesting a review of the case.  If the duty-payer is dissatisfied with the
said review decision, in according with Article 42 of the Customs Law, he/she can file an appeal with
higher authorities and can enter into administrative litigation.
(b) How is he to be informed of his rights to further appeal?
The duty-payer will be informed, in writing of all decisions made at different stages of the
administrative remedial proceedings.  Each written notice will indicate the statutory period for filing
further appeal and the responsible agency.
10. Provide information on the publication, as required by Article 12, of:
(a) 
(i) the relevant national laws
(ii) the regulations concerning the application of the Agreement:
(iii) the judicial decision and administrative rulings of general application relating to the
Agreement:
(iv) general or specific laws being referred to in the rules of implementation or application:
The relevant national laws and regulations, in addition to the promulgation process,
are available to the public in the form  of published brochu res and government
publications or journals. The said nationa l law and regulations can also be found on
relevant government agencies’ web site.
     The Ministry of Finance organizes a compilation containing information on customs valuation
rules, administrative rulings, WTO / GATT Valuation Agreement, the Decision made by the
WTO / GATT Committee, texts issued by the WCO such as Advisory opinions,
Commentaries, Explanatory notes, Case studies and Studies.  The compilation has been in
circulation since August of 1995 as part of th e Ministry’s plan to promote transparency.
(b) Is the publication of further rules anticipated? Which topics would they cover?
No.G/VAL/N/2/TPKM/1
Page 4
11. Questions concerning Article 13:
(a) How is the obligation of Article 13 (last sentence) being dealt with in the respective
legislation?
This obligation is dealt with in paragraph 2, Article 14 of the Customs Law, according to
which, in the event of Customs being unable to immediately determine the payable duty amount,Customs may, upon request by the duty-payer, examine and release the goods following payment of
an appropriate amount of deposit as a guarantee.
(b) Have additional explanations been laid down?
Article 7 of the Rules Governing the Implementation of the Customs Law states regulations
regarding the deposit as a guarantee.
12. Questions concerning Article 16:
(a) Does the respective national legislation contain a provision requiring customs authorities to
give an explanation in writing as to how the customs value was determined?
When Customs still has reasonable doubt about  the truth or accuracy of the account books and
vouchers provided by duty-payer, or when Custom s consider that the relationship between the buyer
and the seller influenced the transaction value, or  when customs value is determined in accordance
with the “Fall Back method”, Customs shall notify the duty payer in writing of the reason and the
method used to determine such a value, upon request to do so by the duty payer, as stipulated in
Customs Law or Rules Governing the implementation of the Customs Law.
(b) Are there any further regulations concerning an above-mentioned request?
No.
13. How have the Interpretative Note s of the Agreement been included?
Some Interpretative Notes of the Agreement have  been incorporated into the Rules Governing
the Implementation of the Customs Law.  Moreover, the entire Interpretative Notes of the Agreement
are listed in the compilation referred to in paragraph 2 of the response for question 10 (a) provided
above.
14. How have the provisions of the Decision on  the Treatment of Interest Charges in the
Customs Value of Imported Goods been implemented?
Item 3, paragraph 1, Article 10 of the Rules Governing the Implementation of the Customs
Law states that interest charges for delayed payment, as a condition of sale of imported goods, shall
not be included in the price actually paid or payable for the imported goods.
15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier
Media Bearing Software for Data Processing Equipment, how have the provisions of thisparagraph been implemented?
They have been implemented by way of administrative orders, Tai-Chai-Quan No. 7506070
and 860448432 (official documentation) issued by the Ministry of Finance on 5 December 1986
and14 August 1997 respectively.
__________