WORLD TRADE
ORGANIZATIONG/VAL/N/2/VEN/1
21 January 2002
(02-0300)
Committee on Customs Valuation Original:  Spanish
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION
OF THE AGREEMENT ON CUSTOMS VALUATION
Checklist of Issues
VENEZUELA
The following communication, dated 17 December 2001, has been received from the
Permanent Mission of Venezuela.
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I have pleasure in enclosing the replies to the checklist of issues circulated in
document G/VAL/5.
Checklist of Issues
1. Questions concerning Article 1:
(a) Sales between related persons:
(i) Are sales between related persons subject to special provisions?
There are no special provisions other than the provisions laid down in the Agreement.
(ii) Is the fact of intercompany prices prima facie considered as grounds for
regarding the respective prices as being influenced?
Not necessarily.  Nevertheless, the central customs administration may review or
examine the circumstances of sale, in order to satisfy itself as to the accuracy of
declarations made by companies, in accordance with Article 17 of the Agreement.
(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))?
As prescribed in Circular No. INA/DV/00/I-019 dated 31 May 2000, which lays
down instructions to be followed by Cust oms in order to expedite the clearance of
goods, pursuant to the new customs valuation rules, in the event that the buyer and
the seller are related goods must be cleared, in conformity with Article 13 of the
Agreement, and a provisional valuation form must be filled in, with a copy to the
importer.  The file is forwarded to the regu latory authority, i.e. the Value Division ofG/VAL/N/2/VEN/1
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the National Customs Department, for review, beginning with a summons to, and a
questionnaire to be completed by, the company in question.
(iv) How has Article 1.2(b) been implemented?
Owing to the recent implementation of the new legislation, Article 1.2(b) has not been
applied at the operative level (i.e. customs), because importers entitled to avail
themselves of this provision have limited knowledge of previously accepted customs
values for imports by unrelated buyers.  In the event of a transaction between related
persons, customs offices, pursuant to Article 13 of the Agreement, delay the final
determination of value and refer the case to  central level for investigation into the
circumstances of the sale and for final determination of the customs value, in
accordance with the provisions of Article 1.2(a).
(b) Price of lost or damaged goods:
Are there any special provisions or practi cal arrangements concerning the valuation of
lost or damaged goods?
No.  For the purposes of tax responsibility, Article 26 of the Basic Customs Law stipulates
that storage companies " … shall be liable directly to the National Tax Authority for tax due
in respect of lost or damaged goods and to the interested parties for the value of said goods".
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?
There are no precedents in this regard.  Nevertheless, we understand that Venezuela has
invoked the reservation provided for under point 3 of Annex III to the Agreement, which is taken upin Article 3 of Decision 378 of the Commission of the Cartagena Agreement as a rule common to the
Andean Community countries.
3. How has Article 5.2 been implemented?
There are no precedents in this regard.
4. How has Article 6.2 been implemented?
There are no precedents in this regard.
5. Questions concerning Article 7:
(a) What provisions have been made for making value determinations to Article 7?
The relevant instructions are set forth in Circular No. INA/DV/00/I-019.  However, formal
provisions consistent with the Agreement and Article VII of the GATT are currently beingdrawn up.  In addition, a number of specific criteria have been laid down for consultations
with importers, having regard for the provisions of Article 7.G/VAL/N/2/VEN/1
Page 3
(b) What is the provision for informing the importer of the customs value determined under
Article 7?
Article 52 of the Basic Customs Law provides that once the documents have been checked
and/or the goods have been physically inspected, in the event of objections by the interested
parties the customs official shall draw up a report detailing all the steps taken and explainingthe valuation methods applied, including under Article 7.  This procedure also complies with
Article 16 of the Agreement.
(c) Are the prohibitions found in Article 7.2 delineated?
Not in a formal sense.  However, Circular No. INA/DV/00/I-019 stipulates that where
customs officials must value goods using the method of last resort and having regard to theprohibitions in Article 7.2, they may apply such information relating to international export
prices as is not expressly prohibited by Article 7.2.
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?
All costs up to the c.i.f. value, as established in Article 5 of Decision 378 of the Commission
of the Cartagena Agreement.
7. Where is the rate of exchange published, as required by Article 9.1?
The Central Bank of Venezuela issues a daily report setting the benchmark rate of exchange.
8. What steps have been taken to ensure confidentiality, as required by Article 10?
Under Decision 378, Andean Community legislation provides for the confidentiality of
information.
9. Questions concerning Article 11:
(a) What rights of appeal are open to the importer or any other person?
Administrative and judicial remedies, as provided for in Article 15 of Decision 378
and in conformity with Articles 131 to 141 of the Basic Customs Law.
(b) How is he to be informed of his rights to further appeal?
As stipulated in Article 15 of Decision 378 and in conformity with Articles 131 to
141 of the Basic Customs Law.
10. Provide information on the publication, as required by Article 12, of:
(a) (i) The relevant national laws:
Adoption of Decisions 378 and 379 through Decree No. 655, published in
Official Gazette Extraordinary No. 5.436 of 4 February 2000.
Adoption of the Andean Customs Value Declaration form through Finance
Ministry Resolution No. 668 (published in Official Gazette Extraordinary No.G/VAL/N/2/VEN/1
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37.100 of 15 December 2000), in order to facilitate the declaration of
particulars relating to customs value.
(ii) the regulations concerning th e application of the Agreement:
Draft Regulations of the Basic Customs Law regarding customs value of
goods are awaiting enactment and publication.
(iii) the judicial decision and administrative rulings of general application
relating to the Agreement:
In order to facilitate implementation of the Agreement, Customs have been
issued with instructions through internal circulars;  these have also beenprovided to importers, customs brokers, chambers of commerce and industry,
and industry and trade associations.
(iv) general or specific laws being ref erred to in the rules of implementation
or application:
Customs matters are specifically governed by the Basic Customs Law, which
refers to the Regulations for all questions pertaining to customs value.  As
mentioned under (ii) above, these Regulations have not yet been published.
(b) Is the publication of further rules anticipated?  Which topics would they cover?
See reply to (a) (ii) above.
11. Questions concerning Article 13:
(a) How is the obligation of Article 13 (last sentence) being dealt with in the respective
legislation?
In accordance with Article 12 of Decision 378 and the instructions set forth in Circular No.
INA/DV//I-019.
(b) Have additional explanations been laid down?
The instructions set forth in Circular No. INA/DV//I-019 provide for valuation to be delayed
with or without provision of a surety.
12. Questions concerning Article 16:
(a) Does the respective national legislation contain a provision requiring customs
authorities to give an explanation in writin g as to how the customs value was determined?
Not in a formal sense.  However, administrative acts are regulated by the Basic Law on
Administrative Procedures, which may be applied on a supplementary basis and which
stipulates that a reasoned response shall be given for any action taken on administrative
grounds.G/VAL/N/2/VEN/1
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(b) Are there any further regulations co ncerning the above-mentioned request?
Although the Basic Law on Administrative Procedures is not special legislation, it provides
that all decisions by the authorities shall be communicated in writing to whoever is affected
by such decisions.
13. How have the Interpretative Note s of the Agreement been included?
The Interpretative Notes form part of the Agreement, as stated in its Article 14, and have been
published, through Decree No. 655 of 23 January 2000, in Official Gazette Extraordinary No. 5.436
of 4 February 2000 of the Bolivarian Republic of Venezuela.  The draft Regulations of the Basic
Customs Law relating to customs value of goods, which have not yet been enacted, should incorporate
these Interpretative Notes.
14. How have the provisions of the Decision on the Treatment of Interest Charges in the
Customs Value of Imported Goods been implemented?
In accordance with Article 7 of Decision 378 of the Commission of the Cartagena Agreement.
15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier
Media Bearing Software for Data-Processing Eq uipment, how have the provisions of this
paragraph been implemented?
Venezuela has not adopted the Decision on the Valuation of Carrier Media Bearing Software.
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