RESTRICTEDWORLD TRADE
ORGANIZATIONG/VAL/M/27
5 June 2002
(02-3117)
Committee on Customs Valuation
MINUTES OF THE MEETING OF 6-7 MAY 2002
Chairman: Mr. Raimundas Karoblis (Lithuania)
The agenda proposed for the meeting, circulated in WTO/AIR/1783 and Add.1 and amended
at the meeting, was adopted as follows:
Table of Contents
I. REPORT OF THE WORK OF THE WCO TECHNICAL COMMITTEE ON
CUSTOMS VAL UATION .......................................................................................................2
II. INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF
THE AGREEM ENT.................................................................................................................2
(a) Notification of na tional legi slation ........................................................................................ .....2
(i) Brunei Darussalam ........................................................................................................... ..........2
(ii) Croatai.................................................................................................................... ....................2
(iii) Geor gia ................................................................................................................... ....................3
(iv) Kenya ...................................................................................................................... ....................3
(v) Korea ....................................................................................................................... ...................3
(vi) Lith uania.................................................................................................................. ...................3
(vii) Mold ova ................................................................................................................... ..................4
(viii) Pe ru ..................................................................................................................... ................4
(ix) Tunisia .................................................................................................................... ....................4
(x) Venezuela................................................................................................................... .................4
(b) Notification that national legislation under the Tokyo Round Customs Valuation
Agreement remains valid under the WT O Customs Valuation Agreement................................4
(c) Notifications made by de veloping country Members.................................................................5
III. INFORMATION ON THE APPLICATION OF DECISIONS OF THE
COMMITTEE ON CUSTO MS VALUAT ION......................................................................6
IV. TECHNICAL ASSIST ANCE ..................................................................................................7
(a) Article 20.3 Technical Assistance and Trade-Related Technical Assistance .............................7
V. INDIA – INFORMATION ON CERTAIN ASPECTS OF THE EUROPEAN
COMMUNITIES VALUAT ION POLICY.............................................................................9G/VAL/M/27
Page 2
VI. FOURTH, FIFTH, SIXTH AND SEVENTH ANNUAL REVIEWS OF THE
IMPLEMENTATION AND OPERATION OF THE CUSTOMS VALUATION
AGREEM ENT ...................................................................................................................... ..10
VII. PRESHIPMENT INSPECTION ...........................................................................................10
VIII. OTHER BUSINESS............................................................................................................ ....11
(a) Brazil – Certain Aspects of Me xican Customs Valu ation Policy .............................................11
(b) China Transitional Review Mechanism....................................................................................11
(c) Dates for the next meeting .................................................................................................. ......12
_______________
I. REPORT OF THE WORK OF THE WCO TECHNICAL COMMITTEE ON
CUSTOMS VALUATION
1.1 The observer of the World Customs Organization reported on the activities of the WCO
Technical Committee which is contained in Annex I to this report.
1.2 The Committee took note of the report.
II. INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE
AGREEMENT
(a) Notification of national legislation
2.1 The Chairman recalled that Article 22 of the Agreement required each Member to inform the
Committee of any changes in its laws and regulations relevant to the Agreement and any changes in
the administration of such laws and regulations.  In addition, the Decision on Notification and
Circulation of National Legislation, adopted by the Tokyo Round Committee, required each Member
to notify its legislation to the Committee.
(i) Brunei Darussalam
2.2 The Chairman drew Members' attention to document G/VAL/N/1/BRN/1 which contained the
updated Customs Amendment 2001 of the Brunei Constitution and the relevant section of the 2001
amended Customs Act.
2.3 The representative of the United States encouraged Brunei to notify its responses to the
Checklist of Issues contained in document G/VAL/5.2.4 The Committee agreed to conclude the examination of the legislation of Brunei Darussalam.
(ii) Croatia
2.5 The Chairman drew Members' attention to document G/VAL/N/1/HRV/1 which contained
Chapter 3 of the Customs Law on the Value of the Goods for Customs purpose;  the Decree on
Implementation of the Customs Law; Customs Regulations for Determining the Customs Value
according to the Customs Law of the Republic of Croatia;  and the Declaration of Customs Value.  In
addition, document G/VAL/N/2/HRV/1 contained the responses to the Checklist of Issues.G/VAL/M/27
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2.6 The Committee agreed to conclude the examination of the legislation of Croatia.
(iii) Georgia
2.7 The Chairman drew Members' attention to document G/VAL/N/1/GEO/1 which contained the
Interpretative notes to the Regulations Concerning Order of Determining the Customs Value of Goods
Imported into Georgia.
2.8 The representative of the United States requested that Georgia also notify its responses to the
Checklist of Issues as soon as possible.2.9 The Committee agreed to conclude the examination of Georgia's legislation.
(iv) Kenya
2.10 The Chairman drew  Members' attention to document G/VAL/N/1/KEN/1 which contained
Clauses 10 and 17 of the Finance Act 2000.  In a ddition, document G/VAL/N/2/KEN/1 contained the
responses to the Checklist of Issues.
2.11 The Committee agreed to conclude the examination of the legislation of Kenya.
(v) Korea
2.12 The Chairman noted that at the October 2001 meeting of the Committee, it was agreed to
revert to this item at this meeting.  He drew attention to document G/VAL/N/1/KOR/2 which
contained the revised Customs Act and all its sub-regulations concerning customs valuation.
2.13 The representative of the European Communities stated that he no longer had outstanding
issues with respect to this legislation.  He underlined  again the complexity of certain provisions of, the
legislation and reserved the right to revert to them at a later date if it was warranted by a specificsituation.
2.14 The Committee agreed to conclude the examination of the legislation of Korea.
(vi) Lithuania
2.15 The Chairman drew Members' attention to document G/VAL/N/1/LTU/1 which contained
Chapters 6 and 23 of the Customs Code of the Re public of Lithuania;  Resolution No.748 of the
Government of the Republic of Lithuania “On the Approval of the Procedure for the Customs
Valuation of Goods”;  Resolution No.1224 of the Government of the Republic of Lithuania “On
Partial Amendment to Resolution No.748 “On the Approval of the Procedure for the Customs
Valuation of Goods” adopted by the Government of the Republic of Lithuania on 9 June 1999”; Order
No.235 “On the Determination of the Customs Value of Carrier Media for Use in Automated DataProcessing Equipment Bearing Data and of Softwa re” of the Director of the Customs Department
under the Ministry of Finance of the Republic of Lithuania;  Order No.395 “On the Approval of the
Methodology for the Application of Certain
 Provisions of the Procedure for Valuation of Goods  for
Customs Purposes” of the Director of the Customs Department under the Ministry of Finance of the
Republic of Lithuania;  and Order No.566 “O n the Approval of the Methodology for the
Determination of the Value of the Used Vehicles for Customs Purposes” of the Director of the
Customs  Department under the Ministry of Finance of the Republic of Lithuania.  In addition,
document G/VAL/N/2/LTU/1 contained Lithuania's responses to the Checklist of Issues.
2.16 The Committee agreed to conclude the examination of the legislation of Lithuania.G/VAL/M/27
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(vii) Moldova
2.17 The Chairman drew Members' attention to  document G/VAL/N/1/MDA/1 which contained
the Customs Code of the Republic of Moldova, No. 1149-14 of July 20, 2000, amended by the Law of
the Republic of Moldova, No. 596-15 of Novemb er 1, 2001 on amending the Customs Code of the
Republic of Moldova;   and the Law of the Re public of Moldova on Customs Tariff, No. 1380-12 of
November 20, 1997, amended by the Law No. 1319-14 of October 27, 2000 of the Republic of
Moldova on amending the Law on Customs Tariff, No. 1380-12 of November 20, 1997.  In addition,
document G/VAL/N/2/MDA/1 cont ained Moldova's responses to the Checklist of Issues.
2.18 The Committee agreed to conclude the examination of the legislation of Moldova.
(viii) Peru
2.19 The Chairman drew Members' attention to  document G/VAL/N/1/PER/1 which contained
Supreme Decree No. 157-2001-EF, dated 18 July 2001, which clarified and amended the provisions
of the Regulation on offences and sanctions applicable to surveillance companies.
2.20 The representative of the United States indicated his delegation's difficulty in concluding
examination of this piece of legislation in the absence of Peru's legislation on customs valuation.  He
asked to revert to this item once Peru notified its legislation implementing the Agreement on Customs
Valuation.
2.21 The Committee agreed to revert to this matter at the next meeting.
(ix) Tunisia
2.22 The Chairman drew Members' attention to document G/VAL/N/1/TUN/1 which contained the
Law No. 2001-92 of 7 August 2001 amending  and supplementing the Customs Code.
2.23 The representative of the United States requested that Tunisia also notify its responses to the
Checklist of Issues.
2.24 The Committee agreed to conclude the examination of the legislation of Tunisia.
(x) Venezuela
2.25 The Chairman drew Members' attention to document G/VAL/N/1/VEN/1 which contained the
Extraordinary Official Gazette No. 5.436;  the Ordi nary Official Gazette 37.100;  and Circular No.
INA/DV/I-019.
2.26 The Committee agreed to conclude the examination of the legislation of Venezuela.
2.27 The Chairman noted his satisfaction at the number of notifications of national legislation
received.  He encouraged those Members which have not yet notified to do so as soon as possible.(b) Notification that national legislation under the Tokyo Round Customs Valuation Agreement
remains valid under the WTO Customs Valuation Agreement.
2.28 The Chairman informed the Committee that it was agreed at the last meeting to suspend
consideration of this item until there was something to report on the three Members, Botswana,  LesothoG/VAL/M/27
Page 5
and Mexico, whose legislation was outstanding in this  regard.  Since there had been no notifications in
this regard, he proposed that the Committee fu rther suspend consideration of this sub-item.
2.29 The Committee so agreed.
(c) Notifications made by developing country Members
2.30 The Chairman drew Members attention to document G/VAL/2/Rev .14 which contained the
updated lists of all Members who had invoked special and differential treatment provisions under the
Agreement.  In addition, he draw attention to document G/VAL/W/76 /Add.3 which contained an
updated inventory of notification requirements pursu ant to extension decisions and minimum value
reservations.  He suggested that the Committee take  note of the information contained in these two
documents.
2.31 The representative of India observed that in the explanatory heading of document
G/VAL/W/76/Add.3, it was su ggested that the information in th e document covered all such Decisions
taken by the Committee or the General Council which were still active.  She stated that the General
Council Decision in WT/L/38 was still active and, sin ce there was no reference to this Decision in the
document, she considered that the statement that "a ll" Decisions were covered was not factually correct.
2.32 The representative of Canada underst ood the document G/VAL/W/76/Add.3 to cover
notification obligations contained in specific Decisions with regard to extensions of transition periods or
to minimum value reservations.  He did not understand India's reference to document WT/L/38.
2.33 The representative of the United States stated th at his delegation was content to take note of the
statement by India and assumed that India was not seeking to open a new front on a difference of views
that had been pending in the Committee for some time.
2.34 The Secretariat explained that document WT /L/38 contained the Decision by the General
Council on the Continued Application under the WTO  Customs Valuation Agreement on Invocation of
Provisions for Developing Count ries for Delayed Application and Reservations under the Customs
Valuation Agreement 1979.  In other words, it extended special and differential treatment reservations
made under the Tokyo Round Agreement into the Uruguay Round Agreement.  Document
G/VAL/W/76/Add.3 was prepared pursuant to a de cision by the Committee for the Secretariat to
prepare a listing of obligations under the specific Decisions taken by the Committee and the GeneralCouncil under paragraphs 1 and 2 of Annex III and under Article XI of the WTO Agreement.
2.35 The representative stated that her concerns were in line with the statemen t  by the representative
of the United States.  Her delegation had noted a pr evious concern with the document series G/VAL/2
which contained two sections, one of Members which had actually sought reservations or extensions,
and another section which was an open clause re ferring to General Counc il Decision in WT/L/38.
Document G/VAL/W/76/ Rev.3 did not contain reference to thes e two sections and did not make clear
that the Decision in WT/L/38 was still active.  She as ked that in the future the Secretariat not use such
sweeping language as "all" to cover such eventualities.
2.36 The Committee took note of the information contained in these two documents and the
statements made.
- Extension requests of delay period
2.37 The Chairman informed the Committee that under this sub-heading, there were four pending
requests being dealt with by the Committee, name ly from Bahrain, Rwanda, Sri Lanka and the United
Arab Emirates.  He had no developments to report on these requests.G/VAL/M/27
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2.38 The representative of Sri Lanka informed Members that his delegation was having constructive
negotiations on its request.  In this regard, he asked the Committee to reconvene at short notice to
consider an eventual draft decision.
2.39 The representative of Bahrain expressed his de legation's wish to withdraw its request for an
extension under paragraph 1, Annex III.  Bahrain was presently appl ying the Agreement and, in this
regard, could benefit from technical assistance.
2.40 The Committee took note of the statements made.  It agreed  to reconvene at short notice to
consider a draft decision on Sri Lanka's request when it was ready.
- Minimum value reservations
2.41 The Chairman stated that as the Committee agr eed to Morocco's request to amend the agenda to
remove its request for a minimum value reservation, there were no items pending under this agenda
item.
- Notifications made under Decisions concerning delay extensions and minimum value
reservations
2.42 The Chairman noted that under this sub-item, the Committee was to consider the notifications
made under the Decisions concerning delay extens ions and minimum value reservations.  Six such
notifications had been received.
2.43 The representative of Canada expressed his dele gation's appreciation for these notifications.  It
found them useful in understanding how implementation was progressing.
2.44 The representative of the United States shared Canada's appreciation for these notifications.  He
added that his delegation sought clarification from the Maldives on the implications of an effort to create
a price valuation database which was to be used as a source for analysis and reference purposes.  He also
asked, with respect to the notification from the Maldiv es, when it was expected that legislation would be
enacted so that the Agreement could be implemented.
2.45 The representative of the European Communities shared the appreciation for these notifications.
He noted that, for example with reference to the notif ication by Bolivia, significant resources were being
used to establish and maintain databases of reference prices.  Careful understanding was necessary in
using this type of tool which could have a useful function in the customs field.  However, in the area of
valuation, reference prices had no official standing in the Agreement and its use was rather limited.  Hecautioned that tools designed for statistical purposes had to remain in that field.
2.46 The representative of Bolivia took note of the comments made and would forward them to her
authorities.  She emphasized that Bolivia was making  tremendous efforts and sacrifices to implement the
Agreement.  She would continue to report on the progress made.
2.47 The Committee took note of the information prov ided in the notifications and the statements
made.
III. INFORMATION ON THE APPLICATION OF DECISIONS OF THE COMMITTEE
ON CUSTOMS VALUATION
3.1 The Chairman informed the Committee that unde r this agenda item, the Committee noted any
new notifications of application of the Decisi ons of the Committee on Customs Valuation on theG/VAL/M/27
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"Treatment of Interest Charges in the Customs Valu e of Imported Goods and on the Valuation of Carrier
Media Bearing Software for Data Processing Equipment", both adopted by the Committee and
contained in document G/VAL/5.  Since the last  meeting, document G/VAL/W/5/Rev.11 had been
circulated which included the addition of notifications  from Costa Rica, Croatia, Kenya, Lithuania, and
Moldova.
3.2 The Committee took note of the information.
IV. TECHNICAL ASSISTANCE
4.1. The Chairman drew Members' attention to document G/VAL/8/ Add.9 which contained
information on completed WCO technical assistance activities.  The information compiled was based on
the information provided to the 14th  session of the Technical Co mmittee on Customs Valuation.  He
proposed that the Committee take note of th e information provided in the document.
4.2 The Committee took note of the information.
(a) Article 20.3 Technical Assistance and Trade-Related Technical Assistance
4.3 The Chairman recalled that the Committee had adopted a Work Programme on Technical
Assistance for Capacity-Building as Regards the Implementation and Administration of the WTO
Agreement on Customs Valuation, contained in document G/VAL/W/82/Rev.1.  One of the main
elements in this Programme was the hosting of a seminar/symposium.  He noted that, following
remarks at the last meeting, the dates had been changed to 6 November to immediately follow theNovember meeting of the Committee.  The Secretariat had attempted to provide some more detailed
structure to the programme by providing specific themes around which the panels would orient their
discussions.  Afterwards, the idea was to have an  interactive question and answer period which would
be an important aspect of the seminar.  Presentations would cover technical assistance on matters
related both to pre-implementation and post-implementation of the Agreement.  He asked Membersfor further input on the approach presented in the draft Programme and the themes for discussion.
Further, he asked for those Members which wished to participate as panelists, both recipients and
donors, to make themselves be known.
4.4 The Secretariat preliminarily explained its suggestion for the inter-active sessions of the
Seminar.  "Break-out" sessions would be organized to discuss specific issues aimed at improving
technical assistance.  For each issue, after a certain time-period, a reporter from each group wouldreport its findings and recommendations.  Afterwards, there could be more general discussion among
all participants.  At the end of the seminar, each working group would prepare a summary of their
findings which would be compiled in a final seminar document.
4.5 The representative of the United States considered that the draft programme was in line with
the Work Programme adopted by the Committee and would add value to the Committee's work.  The
suggestion for "break-out" groups was interesting, how ever, he had logistical concerns.  Would there
be enough time in the context of the draft programme proposed by the Secretariat?
4.6 The Secretariat added that the idea was still in formation.  These groups would work during
the question and answer periods foreseen in the programme.  While they would not necessarily cover
all of the themes outlined in the programme but could focus on one or two selected themes, the aim
was to ensure more interactive discussion and to stimulate participation.
4.7 The representative of the European Communities also asked how the "break-out" session idea
would work logistically.  While the idea was good, there were details to work out.  He would leave it
to the Secretariat to finalize logistical elements and delegations could be in touch with the SecretariatG/VAL/M/27
Page 8
to discuss informally.  He considered the themes to be going in the right direction.   He expected inter-
governmental organizations to endorse coordination and to discuss how it could be improved and
better managed.  For the second session, questions such as how to determine what type of assistance
was appropriate for a particular country, were relevant.  The needs assessment component was
important also and his delegation looked forward to discussing this with assistance recipients.Finally, the question on capacity-building could be supplemented by asking what were the capacity-
building needs in terms of valuation.
4.8 The representative of Canada considered that the draft programme was going in the right
direction.  He agreed with the interactive approach and suggested that the Secretariat prepare an
informal paper on how it saw the interactive, "break-out" sessions working.  There were several ways
to organize these sessions, but he thought that plans would benefit from a background explanation bythe Secretariat.
4.9 The representative of India agreed that the draft programme was heading in the right
direction.  She would need to understand the suggestion for the interactive session better in order to
present views on it.  She asked how the groups would be established, who would decide which issueswould be discussed, would it be known in advance where each group would go?  She was not certain
that the issues would be so unique so as to provide sufficient exclusivity for each group.  In addition,
how would small delegations be able to participat e in more than one "break-out" group?  She thought
it would be useful to know the issues in advance.  She cautioned against wasting time by moving
people around to different rooms.
4.10 The Secretariat responded that much advance planning would be done on the organization.
For example, the groups would be pre-arranged to make sure that within each group there would be a
mix of donors, recipients and intergovernmental organizations in order to ensure the fullest discussion
of the issues which would be decided in advance.  Suggestions for themes and issues for the "break-out" sessions were welcomed.
4.11 The representative of the Philippines found the themes proposed in the draft programme very
relevant.  As a recipient country, her delegation was interested in learning about the types of
assistance provided by different donors and how to request such assistance.  She suggested that after
each presentation, the "break-out" groups could discuss the relevant issues.
4.12 The representative of Colombia considered that, with such advance planning, the seminar was
certain to achieve its aims.  She asked whether it would be possible to receive funding to send national
experts on the Agreement to the seminar.
4.13 The representative of El Salvador noted that her Government had requested technical
assistance on customs valuation since 1999.  While initial indications were that it would be
forthcoming, so far no assistance had been given.  She supported the request made by Colombia for
funding to send national experts.
4.14 The representative of the United States said that, to the extent that an interactive session could
stimulate discussion, his delegation would support it.  However, there were important logistical
concerns related to the short period of time allowed for the seminar.  Also, he asked how all the
individual discussion groups could be broug ht into generating overall conclusions or
recommendations for the seminar.  Many of the themes identified were overlapping and inter-relating
and would not necessarily be able to be considered in isolation.  For example, in the second session,the two themes of how needs were assessed and how the capacity-building component was included
were related.  Capacity-building was about individual needs and an assessment of individual needs.
Therefore, he asked for clarification on logistics as well as on questions of coherence.  He agreed with
Colombia and El Salvador that, to be successful, the seminar would need to include national experts.G/VAL/M/27
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4.15 The Committee took note of the statements made.  It agreed  that the Secretariat would prepare
an informal paper on the suggestion for the interactive sessions.
V. INDIA – INFORMATION ON CERTAIN ASPECTS OF THE EUROPEAN
COMMUNITIES VALUATION POLICY
5.1 The Chairman informed the Committee that at the last meeting of the Committee, it was agreed
to revert to this item at this m eeting following an exchange of views between India and the EC. He had
urged both parties to use the interim time between mee tings to engage in bilateral discussions with a
view to reaching a resolution on this matter.
5.2 The representative of India informed Members th at the EC had responded to questions that her
delegation had posed in earlier meetings of the Co mmittee.  Her Government was still reviewing these
responses and, therefore, requested reverting to this matter at the next meeting.  One question that
continued to elude her delegation related to the legal ba sis or justification for the standard values that the
EC applied.  In all the responses, it was stated th at the regime was the result of the Uruguay Round
Agreements.  But the specific provisions of th e Customs Valuation Agreement which would allow
standard values were not provided.  For example, in one of the replies it stated, "although the importer
should strictly follow the hierarchy of valuation methods , a margin of flexibility is allowed to him if he
should wish to employ the other means available."  Which provisions of the Agreement allowed for this
margin of flexibility?  Also, she noted that the EC  referred to tariff levels concluded in the Uruguay
Round Agreements.  But, her delegation was not sure how the EC was authorized, as a result of these
tariff positions, to disregard the provisions of th e Customs Valuation Agreement.  If these questions
could be answered, her delegation would have  a better understanding of the EC regime.
5.3 The representative of the European Communities recalled that his delegation had recently
followed-up with additional replies to India's questions.  The basic regulation was in the field of
agriculture and not a regulation dealing with nor im plementing customs valuation provisions.  It may be
that issues seemed more complex that they really  were.  He hoped that these responses would satisfy
India's concerns.  He reiterated that the EC did not impose standard values and the margin of flexibility
to importers was built into the complex customs ta riff regulatory and administrative setting.  This
flexibility was appreciated by importers and helped them comply with their obligations.  His delegation
did not disregard valuation rules and the policies a nd legislation had to be read in their entirety.
5.4 The representative of India agreed that her questions were residual but were posed because her
delegation was not satisfied with the initial respons es.   She quoted the EC's responses in G/VAL/W/66,
"this regulation also provides for the use of standard  import values in a very defined context.  Standard
import values are established only with respect to  the products covered by this regulation".  Her
delegation had raised the questions with respect to  EC regulation No. 3223-94 because it clearly set out
the term "standard values".  She was therefore c onfused when the EC stated that it did not impose
standard values.  Therefore, she asked that the Committee refer to this matter at the next meeting.
5.5 The representative of the European Communitie s stated that his delegation answered the
questions as it understood them.  If there were underl ying questions, he requested that they be asked
explicitly.  Perhaps discussion could be clearer if it were not in written form.  He reiterated that the EC
did not impose standard import values.  He suggested that India and his delegation continue to discuss
the matter to resolve the main issues at hand.
5.6 The Committee took note of the statements made and agreed  to revert to this matter at the
next meeting.G/VAL/M/27
Page 10
VI. FOURTH, FIFTH, SIXTH AND SEVENTH ANNUAL REVIEWS OF THE
IMPLEMENTATION AND OPERATION OF THE CUSTOMS VALUATION
AGREEMENT
6.1 The Chairman reported that at the last meetin g, the Committee took note of the four documents
containing the Fourth, Fifth Sixth, and Seventh Annual Revi ews, namely G/VAL/W/29, G/VAL/W/43,
G/VAL/W/77, and G/VAL/W/89 respectivel y.  It was also agreed that the incoming Chair would take
up the matter through consultations among the interest ed Members.  He informed the Committee that he
had consulted some Members on this matter and, unfortunately, had no new developments to report.
Given that the Chair's consultations on this matter had not been fruitful over the past two years, he urged
Members interested in the matter to meet and attempt to advance understanding of the positions.  Further
understanding could work towards resolving the ma tter.  He proposed that the Committee again take
note of the four documents containing these draft Annua l Reviews and that this matter be referred to the
next meeting of the Committee.
6.2 The Committee so agreed.
VII. PRESHIPMENT INSPECTION
7.1 The Chairman informed the Committee that, fo llowing adoption of the final report of the
Working Party on Preshipment Inspection in document G/L/300, the General Council agreed that
future monitoring of the Agreement on Preshipment Inspection should be undertaken initially by theCustoms Valuation Committee, where PSI would be a standing agenda item.  Therefore, this subject
was included on the agenda as from this meeting.  At the last meeting, Members were reminded that,
according to Article 6 of the Agreement on PSI, the Ministerial Conference was obliged to review the
provisions, implementation and operation of the Agreement "at the end of the
 second year from the
date of entry into force of the WTO Agreement and every three years thereafter…"  The Chairmanrecalled that the first review was carried out from 1996 through 1999, the year which in fact marked
the three-year period for the second review.  He asked the Committee to consider for discussion at this
meeting two questions:  whether it was desirable to carry out a second review of the Agreement, given
the obligation under the Agreement and the fact that a second review called for every three years
thereafter was overdue;  and secondly if a review was desirable, in which body of the WTO should
this  review be conducted.   He considered that th e body to carry out the review would be the General
Council, but that this Committee could perhaps forward a recommendation to the General Council forits action on this item.
7.2 The representative of the United States said that his delegation would reflect further on the
question of a review and wished to revert to this matter at a later time.  He requested that the
information contained in document G/VAL/W/63/Rev.2 be updated if possible.
7.3 The representative of the European Communities stated that his delegation would also need to
reflect further on the necessity of carrying out another review of the PSI Agreement at this time.  His
delegation had been concerned with questions regarding national authorities gaining the necessary
confidence to apply the rules of the Customs Valuation Agreement.  Other issues concerned to what
extent users of PSI had been benefitting from transfers of information and technology.  These were
the kinds of issues that his delegation would be interested in discussing further, although it was not
sure whether a full-scale review was necessary.
7.4 The Secretariat stated that the information contained in G/VAL/W/63/Rev.2 was based on
information provided by IFIA.  It was not certain how often the information was updated, but a
request would be made for an updated version.G/VAL/M/27
Page 11
7.5 The Committee took note of the statements made.
VIII.  OTHER BUSINESS
(a) Brazil – Certain Aspects of Mexican Customs Valuation Policy
8.1 The representative of Brazil requested clarification from Mexico on the operation of the
regulation on estimated prices published in the official Mexican Gazette of 8 February 1994.  The
procedure established reference prices for a number of products, including textiles, footwear, toys,
bicycles, etc.  Importers of the products covered were required to pay customs duties of the reference
price while an investigation of the declared value was being undertaken.  His delegation sought
clarification on the following questions.  On what basis were the current values for estimated prices
established?  If exporters could prove that the declared export prices were legitimate, even if lower
than the estimated price, would the imports of such products be free from the payment of theguarantee in the future?  What were the results of investigations undertaken of Brazilian products
under this system?  Had the guarantees deposited in accordance with the measure been reimbursed?
Was the possibility of exporter representation, in all phases of investigations, ensured?  In case the
investigation determined the legitimacy of the declared value of a given Brazilian product, would
future imports of the same product at the same price be subject to an investigation and wouldguarantees be required again?  He would submit these questions in writing to Mexico;  they were
stated at this meeting for transparency purposes.
8.2 The representative of Mexico took note of the questions and would respond to Brazil in
writing as soon as possible.8.3 The representative of the United States noted that the Mexican legislation in question had
raised questions for his delegation in the past.  Therefore, he requested that any responses provided to
Brazil be also presented to the Committee.
8.4 The representative of the European Communities re called that at the last formal meeting, his
delegation had made a request for information to India on its valuation legislation.
8.5 The representative of India stated that she had conveyed the request from the European
Communities to her capital and would revert to it in due course.8.6 The Committee took note of the statements.
(b) China Transitional Review Mechanism
8.7 The Chairman drew Members' attention to the report that it was required to make to the
General Council with respect to China's Transitional Review Mechanism.  Specifically, China's
Protocol of Accession, in document WT/L/432 stated:
"Those subsidiary bodies1 of the WTO which have a mandate covering China's commitments under
the WTO Agreement or this Protocol shall, within one year after accession… review, as appropriate to
their mandate, the implementation by China of the WTO Agreement and of the related provisions of
this Protocol.  China shall provide relevant inform ation, including information specified in Annex 1A,
to each subsidiary body in advance of the review …. Each subsidiary body shall report the results of
                                                     
1 Council for Trade in Goods, Council for Trade-Related Aspects of Intellectual Property Rights,
Council for Trade in Services, Committees on Balance- of-Payments Restrictions, Market Access (covering also
ITA), Agriculture, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Subsidies andCountervailing Measures, Anti-Dumping Measures, Customs Valuation, Rules of Origin, Import Licensing,
Trade-Related Investment Measures, Safeguards, Trade in Financial Services.G/VAL/M/27
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such review promptly to the relevant Council…..whi ch shall in turn report promptly to the General
Council."
8.8 He noted that the last meeting of the year for this Committee was scheduled for 4 November
2002.  The report would have to be agreed by that meeting.  In this regard, he suggested that theCommittee authorize him to consult informally on this question to best determine how the Committee
should carry out its obligations under this review to meet the deadline for its report to the Council for
Trade in Goods and to the General Council.
8.9 The Committee agreed that the Chairman should carry out consultations on this matter.
(c) Dates for the next meeting
8.10 The Chairman stated that the Committee would meet informally and then formally on the
implementation-related issues on 7 May 2002.  Following that meeting, as agreed in the schedule of
meetings in G/VAL/44, the next meeting of the Committee would be held on 3-4 July 2002 to take up
the implementation-related issues.
8.11 The meeting was adjourned.G/VAL/M/27
Page 13
ANNEX I
Report to the WTO Committee on Customs Valuation on the Activities of the
WCO Technical Committee on Customs Valuation and
on Related Technical Assistance Activities
My name is Aziz El Kassimy and I am Deputy Director of the WCO Valuation Sub-
Directorate.  I am speaking to you today on behalf of the Chairman of the Technical Committee on
Customs Valuation and the WCO Secretariat.
In this report, I will describe the results of the Fourteenth Session of the Technical
Committee, held at WCO headquarters from 15 to 19 April 2002.
Fourteenth Session
The first two days of the Session were devoted to the third theme meeting of the Technical
Committee.  You will recall that I indicated in my previous reports concerning the Tenth and Twelfth
Sessions that the theme meetings constitute another form of technical assistance for least developed
and developing countries, endorsed by the Technical Committee in 1999.
The topic of the theme meeting at the Fourteenth Session was "Administrative Considerations
in the Implementation and Application of the WTO Valuation Agreement".  Presentations were given
by Morocco, France, Canada, Brazil, Kenya, Un ited Kingdom, Costa Rica, Japan, Gabon and the
United States.  The theme meeting was a resounding success, as indicated by the number of
participants at the question and answer sessions and at  the round table that took place at the end of the
meeting.
The technical issues dealt with included a study concerning the expression "sale for export" as
well as a study on "valuation treatment applicable to hire or hire-purchase goods".  A work
programme was established for completion during the intersession in order to provide for a
supplementary examination of those issues during the Fifteenth Session of the Technical Committee.
Another technical issue concerning "valuation treatment applicable to related party imports
when the price has been influenced" was also examined and subsequently included in Part III of the
Overview of Technical Issues.  You may recall that Part III of the Overview contains "issues raised
pending the establishment of the future work programme".
The Technical Committee also examined technical issues raised since the previous Session,
namely, "treatment applicable to storage costs and related costs under Article 1" and Advisory
Opinion 16.1 concerning "treatment applicable to situations in which the sale or price is subject to
conditions or to services the value of which may be determined in respect of the goods to be
evaluated".  Following a debate, the Technical Committee decided not to proceed to an examination
of those issues.
The Technical Committee also completed a detailed examination of the work of the WCO
Working Group on Mutual Administrative Assistance and, among other things, the Doha Ministerial
Decision concerning the exchange of information on valuation.  The Technical Committee supported
the work of WCO and WTO concerning the development of a strategy for facilitating the exchange ofinformation on valuation and encouraged WCO to play a more dynamic role in exploring and
recommending solutions to that end.G/VAL/M/27
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The Fourteenth Session was extremely productive and I have the pleasure to inform you that
the contribution of least developed and developing country Members to the work, particularly during
the theme meeting, was far more significant than at any stage previously.
During this Session, the Technical Committee also extended a welcome to the People's
Republic of China and to Taipei, China, as new members of the Technical Committee on Customs
Valuation.  It held elections for the Chairman and two Vice Chairmen and, thus, Ms. Virginie Borin of
the United States was re-elected as Chairman and Ms. Zizi Hakima of Morocco and Mr. A.M. Masrur
Ahmed of Bangladesh were re-elected as Vice Chairmen.
Technical assistance
The customs administrations of Australia, Canada, Japan, Peru, Thailand, United Kingdom
and the United States reported on their technica l assistance activities since the Thirteenth Session:
− Australia hosted a delegation from the People's Republic of China;
− Canada informed the Technical Committee that future technical assistance
programmes on valuation were scheduled to be held in Benin, Saint Lucia,
Guatemala, El Salvador, Honduras and Nicaragua;
− Japan took part in technical assistance programmes on valuation in Mongolia,
Malawi, Sri "   Lanka, the Islamic Republic of Iran and provided training torepresentatives of customs administrations from Bangladesh, the
People's Republic of China, India, the Maldives, Mongolia, Nepal, Pakistan, Sri
Lanka, Uruguay, Uzbekistan, Zimbab we, Malawi, Cambodia, Laos, Myanmar,
Vietnam, Thailand, and the Philippines, at the National Customs and TariffAdministration Training College in Japan;
− Peru organized valuation training programmes in Ecuador and at the National
Customs Training College in Peru, for Colombia, Portugal, Bolivia, Guatemala,
Honduras, Costa Rica, El Salvador, Nicaragua, Chile and the Secretariat of
Central American Economic Integration (SIECA);
− Thailand organized secondments to the administration of Thailand for customs
officials from the administration of Bhutan;
− The United Kingdom took part in a workshop organized by the EC in Bulgaria;
− The United States organized needs assessment missions to Peru and to
Guyana/Suriname, provided evaluation programmes in the Dominican Republic,Saint Vincent, and the Andean Community, and have scheduled programmes under a
WCO/USAID project for Kenya, Lesotho, Nigeria, Senegal and Tanzania;
− France indicated that technical assistance on valuation had been provided by its
administration to the Slovak Republic, and that new programmes were due to be
implemented in Mauritania and Hungary.
The Secretariat reported on its technical assistance activities in Malawi, Mongolia,
Democratic Republic of Congo, Zambia (COMESA countries), Sri Lanka, Islamic Republic of Iran
and Ecuador.  It also indicated that the part of the technical assistance programme on valuation run by
WCO/USAID concerning needs assessment and the development of action plans for theimplementation of specific programmes for the five  benefiting countries, namely Kenya, Lesotho,
Nigeria, Senegal and Tanzania, has now been completed.  These action plans focus on the provision
of assistance for drawing up or revising legislation and customs regulations, the training of customsG/VAL/M/27
Page 15
officials, the organization of valuation seminars designed for commercial circles and the organization
of expert missions.
I would like to take this opportunity to point out that the close working relations that have
developed between the WCO and WTO Secretariats in the implementation of technical assistanceprogrammes on valuation remain excellent.  There are plans, during the next WCO financial year, to
implement a number of technical assistance prog rammes on valuation, in partnership with WTO.
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