RESTRICTEDWORLD TRADE
ORGANIZATIONG/VAL/W/43
4 November 1999
(99-4765)
Committee on Customs Valuation
FIFTH ANNUAL REVIEW OF THE IMPLEMENTATION AND
OPERATION OF THE AGREEMENT ON IMPLEMENTATION
OF ARTICLE VII OF THE GENERAL AGREEMENT
ON TARIFFS AND TRADE 1994
Background Working Document by the Secretariat
This working document is circulated by the Secretariat in preparation for the fifth annual
review of the implementation and operation of the Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade 1994 (the Agreement), to be conducted at the forthcomingmeeting on 12 November 1999.  As indicated in the text below, this document will have to be updatedin light of the discussion at that meeting in order to give a full picture of the developments in theCommittee during the current year.
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Article 23 of the Agreement provides that "the Committee shall review annually the
implementation and operation of this Agreement taking into account the objectives thereof".
The main objectives of the Agreement are those listed in the General Introductory
Commentary.  The annual review of the Committ ee should cover the implem entation and operation of
the Agreement in the light of its objectives and specific obligations.G/VAL/W/43
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The contents of this document are as follows:
Page
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER
STAT US......................................................................................................................... ........3
II. OFFICERS OF THE WTO COMMI TTEE ON CUSTOMS  VALUATION..................8
III. MEETINGS OF TH E COMMITTEE ................................................................................8
IV. NATIONAL LEGISLAT ION PRESEN TED .....................................................................8
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OF THE TEXT
OF THE AGRE EMENT ......................................................................................................9
VI. OTHER DECISIONS TAKE N BY THE CO MMITTEE .................................................9
VII. TECHNICAL ASSIST ANCE ..............................................................................................9
VIII. REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION...10
IX. CONSULTATION AND DI SPUTE SETTLE MENT......................................................10
X. ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS (G/VAL/W/21) 10G/VAL/W/43
Page 3
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER
STATUS
(a) WTO Members (135)
Angola
Antigua and BarbudaArgentinaAustraliaAustriaBahrainBangladeshBarbadosBelgiumBelizeBeninBoliviaBotswanaBrazilBrunei DarussalamBulgariaBurkina FasoBurundiCameroonCanadaCentral African RepublicChadChileColombiaCongoCongo, Democratic Republic of theCosta RicaCôte d'IvoireCubaCyprusCzech RepublicDenmarkDjiboutiDominica
Dominican Republic
ECEcuadorEgyptEl SalvadorEstoniaFijiFinlandFranceGabonGambiaGermany
GhanaGreeceGrenadaGuatemalaGuinea BissauGuinea, Rep.ofGuyanaHaitiHondurasHong Kong, ChinaHungaryIcelandIndiaIndonesiaIrelandIsraelItalyJamaicaJapanKenyaKoreaKuwaitKyrgyz RepublicLatviaLesothoLiechtensteinLuxembourgMacauMadagascarMalawiMalaysiaMaldivesMali
Malta
MauritaniaMauritiusMexicoMongoliaMoroccoMozambiqueMyanmarNamibiaNetherlandsNew ZealandNicaragua
NigerNigeriaNorwayPakistanPanamaPapua New GuineaParaguayPeruPhilippinesPolandPortugalQatarRomaniaRwandaSaint Kitts and NevisSaint LuciaSaint Vincent & GrenadineSenegalSierra LeoneSingaporeSlovak RepublicSloveniaSolomon IslandsSouth AfricaSpainSri LankaSurinameSwazilandSwedenSwitzerlandTanzaniaThailandTogo
Trinidad and Tobago
TunisiaTurkeyUgandaUnited Arab EmiratesUnited KingdomUnited StatesUruguayVenezuelaZambiaZimbabweG/VAL/W/43
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(b) Delayed Application and Reservations
The provisions for special and differential treatment available for developing country
Members have been invoked as follows:
(i) Article 20.1 (delayed application of the provisions of the Agreement) (55)
Bahrain
BangladeshBeninBoliviaBrunei DarussalamBurkina FasoBurundiCameroonCentral African RepublicChadChileColombiaCosta RicaCôte d'IvoireCubaDjiboutiDominican RepublicEcuadorEgyptEl SalvadorGhanaGuatemalaGuyanaHaitiHondurasIndonesiaJamaicaKenyaKuwait
MadagascarMalaysiaMaliMaldivesMaltaMauritaniaMauritiusMyanmarNicaraguaNigerNigeriaPakistanParaguayPeru
1
PhilippinesSenegalSri LankaTanzaniaThailandTogoTunisiaUgandaUnited Arab EmiratesUruguayVenezuelaZambia
_________________
1The invocation of the special provisions available for developing country Members under the Customs Valuation
Agreement 1979 continued to apply for Peru in accordance with the Decision in WT/L/38 until 1 April 1999.  Pursuant to theprovisions of paragraph 3 of Article IX of the WTO Agreement, the General Council decided to grant Peru an additional one-year delay in implementing the Agreement (WT/L/307).G/VAL/W/43
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(ii) Article 20.2 (delayed application of the computed value method) (51)
Bahrain
BangladeshBoliviaBrunei DarussalamBurkina FasoBurundiCameroonChileColombiaCosta RicaCôte d'IvoireDjiboutiDominican RepublicEgyptEcuadorEl SalvadorGabonGuatemalaGuyanaHaitiHondurasIndonesiaIsraelJamaica
Kenya
KuwaitMadagascar
MalaysiaMaliMaltaMauritaniaMexico
1
Morocco1
MyanmarNicaraguaNigeriaPakistanPeru
1
PhilippinesSenegalSingaporeSri LankaTanzaniaThailandTogoTunisiaTurkey
1
United Arab EmiratesUruguayVenezuela
Zambia
(iii) Annex III, paragraph 2 (reservation concerning minimum values) (37)
Bahrain
BangladeshBurkina FasoChileColombiaCôte d'IvoireDjiboutiDominican RepublicGuatemalaGuyanaHaitiIndonesiaJamaicaKenya
MadagascarMaldivesMaliMalaysiaMaltaMauritaniaMoroccoMyanmarNigerPakistanParaguayPeru
1PhilippinesSenegalSingaporeSri LankaThailandTogoTunisiaUgandaUruguayVenezuelaZambia
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1The invocation of the special provisions available for developing country Members under the Customs Valuation
Agreement 1979 shall continue to apply under the WTO Customs Valuation Agreement for the developing country Memberconcerned (WT/L/38).G/VAL/W/43
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(iv) Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5
and 6) (53)
Argentina1
Bahrain
BangladeshBrazil
1
Brunei DarussalamBurkina FasoCameroonChileColombiaCosta RicaCôte d'IvoireDjiboutiDominican RepublicEcuadorEgyptEl SalvadorGabonGuatemalaGuyana
Haiti
HondurasIndia
1
IndonesiaIsraelJamaicaKenyaMadagascarMaldivesMalawi
1
MalaysiaMaliMaltaMexico
1
Morocco1
MyanmarNigerNicaragua
Pakistan
Peru
1
PhilippinesSenegalSingaporeSri LankaThailandTogoTunisiaTurkey
1
UgandaUnited Arab EmiratesUruguayVenezuelaZambiaZimbabwe
1
(v) Annex III, paragraph 4 (reservation concerning application of Article 5.2 whether or not the
importer so requests) (51)
Argentina1
Bahrain
BangladeshBrazil
1
Brunei DarussalamBurkina FasoCameroonChileColombiaCosta RicaCôte d'IvoireDjiboutiDominican RepublicEcuadorEgyptEl SalvadorGabonGuatemala
GuyanaHaitiHondurasIndia
1
IndonesiaIsraelJamaicaKenyaMadagascarMaldivesMalaysiaMaliMaltaMexico
1
Morocco1
MyanmarNicaragua
NigerNigeriaPakistanPeru
1
PhilippinesSenegalSingaporeSri LankaThailandTogoTunisiaTurkey
1
UruguayVenezuelaZambiaZimbabwe
1
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1The invocation of the special provisions available for developing country Members under the Customs Valuation
Agreement 1979 shall continue to apply under the WTO Customs Valuation Agreement for the developing country Memberconcerned (WT/L/38).G/VAL/W/43
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(c) Observer Governments (39)
Albania
AlgeriaAndorraArmeniaAzerbaijanBelarusBhutanBosnia  and HerzegovinaCambodiaCape VerdeChina, Peoples Rep.CroatiaEquatorial GuineaEthiopiaFormer Yugoslav  Rep. of MacedoniaGeorgiaHoly SeeJordanKazakhstanLaos, P.D.R. ofLebanon
LithuaniaMoldovaNepalOmanRussian FederationSamoaSan MarinoSão Tomé  and PrincipeSaudi ArabiaSeychellesSudanTaipei, ChineseTongaUkraineUzbekistanVanuatuViet NamYemen
(d) Observer International Organizations (5)
1
World Customs Organization
IMFUNCTADACPIADB
                                                     
     1These organizations now have  official observer status following Ag reement in the Committee (G/VAL/M/5) and
Agreements between the World Bank and the IMF with the WTO (WT/L/195).G/VAL/W/43
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(e) Observer International Organizations (5)2
World Customs Organization
IMFUNCTADACPIADB
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION
Chairperson: Mr. Edward Brown (United Kingdom)
Vice-Chairperson: Mr. Syed Habib Ahmed (Pakistan)
III. MEETINGS OF THE COMMITTEE
During the reporting period, the Committee has held three meetings on 26 April, 4 October,
and on 12 November.  The minutes of these meetings are contained in documents G/VAL/M/10,G/VAL/M/11, [and G/VAL/M/12 (to be issued)], respectively.
IV. NATIONAL LEGISLATION PRESENTED
(i) Texts of national legislation
Article 22  of the Agreement requires each Memb er to inform the Committee of any changes
in its laws and regulations relevant to the Agreement and in the administration of such laws andregulations.  At its first meeting, the Committee agreed on procedures for the notification of nationallegislation (G/VAL/M/1, paragraphs 29-35, 71 and 72).
During the reporting period, the following communications and texts have been submitted:
Brazil (G/VAL/N/1/BRA/2)
Czech Republic (G/VAL/N/1/CZE/3)Gabon (G/VAL/N/1/GAB/1)Latvia (G/VAL/N/1/LVA/1)
Morocco (G/VAL/N/1/MAR/1/Rev.1)
Namibia (G/VAL/N/1/NAM/1)Poland (G/VAL/N/1/POL/1)Romania (G/VAL/N/1/ROM/2)Suriname (G/VAL/N/1/SUR/1)Trinidad and Tobago (G/VAL/N/1/TTO/1)
(ii)  Checklist of issues
At its first meeting, the Committee agreed on procedures for the submission of a checklist of
issues (G/VAL/M/1, paragraphs 36-39).
                                                     
     2These organizations now have  official observer status following Agreement in the Committee (G/VAL/M/5) and
Agreements between the World Bank and the IMF with the WTO (WT/L/195).G/VAL/W/43
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During the reporting period, the following communications have been submitted:
Canada (G/VAL/N/2/CAN/1)
Czech Republic (G/VAL/N/2/CZE/1)Iceland (G/VAL/N/2/ISL/1)Latvia (G/VAL/N/2/LVA/1)Morocco (G/VAL/N/2/MAR/1)Trinidad and Tobago (G/VAL/N/2/TTO/1)
(iii) Examination of national legislation
At its meeting of 26 April 1999, the Comm ittee pursued its examination of various
communications and implementing legislations.  The Committee agreed to conclude the examinationof the legislations of Cyprus, Iceland, Latvia, Mexico , Poland, Suriname, and Trinidad and Tobago .  It
agreed to continue examination of the legislation of Brazil, Israel, Morocco, Panama.  The Committeenoted that 56 developing countries had evoked the delay period provided in Article 20.1, and that 30of these countries would have to apply the Agreement by 1 January 2000 and another 20 by the end ofthe year 2000.
[To be updated following meeting of 12 November].
(iv) Information on the application of the Committee Decisions
Information on the application of the Decision on the Treatment of Interest Charges in the
Customs Value of Imported Goods and of paragraph 2 of the Decision on the Valuation of CarrierMedia Bearing Software for Data Processing Equipment (G/VAL/5), made available by Members, issummarized in document G/VAL/W/5/Rev.6.
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OF THE TEXT OF
THE AGREEMENT
At its first meeting on 12 May 1995, the Comm ittee adopted the decisions relating to the
interpretation of the Agreement,  which had previously been ad opted by the Toky o Round Committee
(G/VAL/M/1, paragraphs 66-67).  The decisions were reproduced in document G/VAL/5.  No newdecisions relating to the interpretation of the Agreement were adopted during the reporting period.
VI. OTHER DECISIONS TAKEN BY THE COMMITTEE
At its first meeting on 12 May 1995, the Co mmittee adopted other decisions which are
contained in document G/VAL/5.  The Committee also adopted decisions that were referred by theMinisters at Marrakesh to the Committee for adoption.  The texts of the decisions are contained indocument G/VAL/1. No other decisions were adopted during the reporting period.
VII. TECHNICAL ASSISTANCE
Technical assistance aimed at helping countries in their preparations for the application of the
Agreement has continued to be a matter of high priority to Members, to the Committee and to theTechnical Committee during the reporting period. At the April meeting, the WTO Secretariat briefed
the Committee on the progress and plans for its Technical Assistance Programme on Customs
Valuation.  It was agreed that Members would conti nue to respond to the request for information whichG/VAL/W/43
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could help Members to design bilateral and regiona l technical assistance activities as well as feed into
the WTO Secretariat Programme.
[To be completed in light of the November 1999 meeting.]
VIII.  REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION
Meetings of the Technical Committee
The representative of the World Customs Organization (WCO) presented detailed oral reports
on the Eighth and [Ninth] Sessions of the Technical Committee on Customs Valuation, held on 29March - 1 April 1999 [and on 22 - 26 November 1999, respectively].
The Committee on Customs Valuation took note of these reports and expressed appreciation
for the continued valuable work of the Technical Committee.
IX. CONSULTATION AND DISPUTE SETTLEMENT
During the reporting period, the European Communities initiated consultations with Brazil
pursuant to Article 19 of the WTO Agreement on Implementation of Article VII of the GATT 1994,
Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes,Article XXII of the GATT 1994, Article 19 of the WTO Agreement on Agriculture, and Article 6 ofthe Agreement on Import Licensing Procedures on a number of Brazilian measures, procedures andpractices.
X. ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS
The Committee adopted its annual report to the Council for Trade in Goods in accordance
with the requirements of Article 23 of the Agreement (G/VAL/W/39).
[Document to be finalized in light of the discussion at the November 1999 meeting.]G/VAL/W/43
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ANNEX I
Information on National Legislation
Below are listed the references of the documents1 containing national laws, regulations etc.
and replies to the Checklist of Issues (VAL/2/Rev.1 and Rev.2) received from Signatories.
Member National legislation Replies to the
Checklist of Issues
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 Not receivedBrazil VAL/1/Add.20 + Suppl.1            VAL/2/Rev.2/Add.3
G/VAL/N/1/BRZ/1
Bulgaria G/VAL/N/1/BGR/1Canada VAL/1/Add.17 + Suppl.1-3 VAL/2/Rev.1/Add.14
G/VAL/N/1/CAN/1 G/VAL/N/2/CAN/1G/VAL/N/1/CAN/2
Cyprus VAL/1/Add.26 VAL/2/Rev.2/Add.7
G/VAL/N/1/CYP/2
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/2/CZE/1G/VAL/N/1/CZE/2G/VAL/N/1/CZE/3
EEC  VAL/1/Add.2 +  Suppl.1-13 VAL/2/Rev.1/Add.6 + Suppl.1
G/VAL/N/1/EEC/1/Rev.1
Fiji G/VAL/N/1/FJI/1 G/VAL/N/2/FJI/1Gabon G/VAL/N/1/GAB/1Hong Kong, VAL/1/Add.9 Not applicable  China G/VAL/N/1/HKG/1Hungary VAL/1/Add.6 VAL/2/Rev.1/Add.4
G/VAL/N/1/HUN/1
Iceland G/VAL/N/1/ISL/1 G/VAL/N/2/ISL/1Israel G/VAL/N/1/ISR/1India 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
                                                     
1 Documents beginning with "VAL" are documents issued under the Tokyo Round Committee on Customs ValuationG/VAL/W/43
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G/VAL/N/1/KOR/1
Latvia G/VAL/N/1/LVA/1 G/VAL/N/2/LVA/1Lesotho VAL/1/Add.21 + Suppl.1 VAL/2/Rev.2/Add.2Liechtenstein G/VAL/N/1/LIE/1Macau G/VAL/N/1/MAC/1Malawi VAL/1/Add.27
G/VAL/N/1/MWI/1
Mexico VAL/1/Add.25 + Suppl.1-3 VAL/2/Rev.2/Add.8
+ Suppl.1/Rev.1
Morocco G/VAL/N/1/MAR/1and Rev.1 G/VAL/N/2/MAR/1Namibia G/VAL/N/1/NAM/1New Zealand VAL/1/Add.12 + Suppl.1 VAL/2/Rev.1/Add.10
G/VAL/N/1/NZL/1
Norway VAL/1/Add.11 + Corr.1 VAL/2/Rev.1/Add.7
+ Suppl.1-2
G/VAL/N/1/NOR/1
Panama G/VAL/N/1/PAN/1 G/VAL/N/2/PAN/1Poland VAL/1/Add.28Romania VAL/1/Add.8 +  Suppl.1-2 VAL/2/Rev.1/Add.9
G/VAL/N/1/ROM/1G/VAL/N/1/ROM/2
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 G/VAL/N/2/SVN/1Singapore G/VAL/N/1/SGP/1 G/VAL/N/2/SGP/1South Africa VAL/1/Add.15 + Corr.1             VAL/2/Rev.1/Add.13
+ Suppl.1-3
G/VAL/N/1/ZAF
Suriname G/VAL/N/1/SUR/1Switzerland VAL/1/Add.5 Not applicable
G/VAL/N/1/CHE/1
Trinidad and G/VAL/N/1/TTO/1 G/VAL/N/2/TTO/1  TobagoTurkey 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
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