WORLD TRADE
ORGANIZATIONG/L/654
31 October 2003
(03-5796)
Committee on Customs Valuation
REPORT (2003) OF THE COMMITTEE ON CUSTOMS VALUATION
TO THE COUNCIL FOR TRADE IN GOODS
A. BACKGROUND
1. The Agreement on Implementation of Article VII of the General Agreement on Tariffs and
Trade 1994 (the Agreement) entered into force on 1 January 1995.  This report covers the year 2003.  It
addresses the work undertaken by the Committee on Customs Valuation (the Committee) in respect of
the objectives of the Agreement, which are: to  provide greater uniformity and certainty in the
implementation of the provisions of Article VII of  the GATT 1994;  to establish a fair, uniform and
neutral system for the valuation of goods for cust oms purposes that precludes the use of arbitrary of
fictitious customs values;  to ensure that the basi s for valuation of goods for customs purposes should, to
the greatest extent possible, be the transaction value of the goods being valued;  and to secure additional
benefits for the international trade of developing countries.
2. During the period under consideration, the Committee has held three formal meetings:  on
28  February (G/VAL/M/34) under the Chairmanship  of Mr. Raimundas Karoblis (Lithuania);  on 23
May, 22 July and 6 October (G/VAL/M/35 and Add.1)  under the Chairmanship of Mr. Karoblis on 23
May and Mr. Ivan Lee (Hong Kong, China) on 22 July and 6 October;  and on 6 October 2003
(G/VAL/M/36) under the Chairmanship of Mr. Lee.   At the 23 May meeting, the Committee elected
Mr. Ivan Lee (Hong Kong, China) as Chairperson for 2003-2004.
3. Participation in the Committee is open to all WTO Members.  In addition, Governments granted
observer status by the WTO General Council attended Committee meetings as observers.  At the
April 1997 meeting, the Committee granted observer status to those organizations which had had
observer status on an ad hoc  basis, namely UNCTAD and the WCO, as well as to the ACP and the
IADB.   The Committee took note of the fact that the World Bank and the IMF had observer status by
virtue of the Agreements between  these organizations and the WTO.
4. The Committee's rules of procedure, which were approved by the Council for Trade in Goods,
are contained in G/L/146.
B. IMPLEMENTATION OF THE AGREEMENT
5. During the period under review, no developi ng country Members maintained delayed
application of the provisions of the Agreement in accordance with the provisions of Article 20.1 of the
Agreement.  At circulation of this report, 1 Memb er (United Arab Emirates) maintains an extension of
the delay period in accordance with the provisions of  paragraph 1, Anne x III.  One such request is still
pending agreement by Members.  Understanding has b een reached in the Committee that the texts of the
national legislation of these developing country Me mbers will be supplied to the Committee before the
developing country Members begin applying the prov isions of the Agreement (G/VAL/5, para. B.2(ii)).
In addition, at circulation of the report, four Memb ers maintain reservations which have been granted
under paragraph 2, Anne x III for minimum values, or under the Article IX waiver provisions (El
Salvador, Guatemala, Mada gascar, and Sri Lanka).G/L/654
Page 2
6. To date, 74 Members have notified their nationa l legislation on customs valuation (this figure
includes the 14 Members which have submitted communica tions indicating that their legislation notified
under the Tokyo Round Customs Valuation Agreement remained valid under the WTO Customs
Valuation Agreement and does not include individual EEC Members).  57 Members, (of which 1 has an
extension and 1 has requested an extension of th e Article 20.1 delay period) have not yet made any
notification  (See Annex).
C. ACTIVITIES OF THE COMMITTEE
7. At the meeting on 28 February 2003:
• The Committee adopted a Decision granting Sri Lanka a reservation to maintain minimum values
for a further two years (G/VAL/55).
8. At the meeting on 23 May 2003 (and the resumed meetings on 22 July and 6 October when the
Committee resumed discussion on the agenda item suspended from the 23 May meeting):
• The Committee concluded examination of amendments to Australia's legislation, and the
legislation of Bolivia, Brunei Darussalam, China, Côte d'Ivoire, Cuba, Morocco and Slovakia.  It
agreed to revert to the legislation of Burkina Faso and to amendments to India's legislation at thenext meeting;
• The  Committee took note of the information in  document G/VAL/2/Rev.16 which contained a list
of Members having invoked the special and diffe rential provisions of the Customs Valuation
Agreement.  It also took note of documen t G/VAL/W/76/Add.5 which contained an updated
inventory of notification requirements pursuan t to extension decisions and minimum value
reservations, and the notifications that had b een made under the Decisions concerning delay
extensions and minimum value reservations;
• The Committee agreed to grant an extension of the delay period to the United Arab Emirates
(G/VAL/55) in accordance with paragraph 1 of Annex III of the Agreement;
• The Committee took note of the five documen ts containing the Annual Reviews, namely
G/VAL/W/29, G/VAL/ W/43, G/VAL/W/77, G/VAL/ W/89, and G/VAL/108, and agreed that the
incoming Chair would take up the matter throug h consultations among the interested Members;
• The Committee agreed to revert to the item of India's questions about certain valuation policies of
the European Communities at its next meeting;
• No clear guidance was given on the question of holding another review of the Agreement on
Preshipment Inspection;  it was agreed to revert to this matter at the next meeting;
• The Committee continued its discussion of paragraph 8.3 of the Decision on Implementation-
Related Issues and Concerns and agreed to suspend consideration of this agenda item pending
consultations by the incoming Chair.  On 22 July and 6 October, the Committee resumed
discussion of the issue.    It was agreed that the Chair would continue to consult on the matter
under his own responsibility.
• The Committee discussed the follow-up to the Work Programme on Technical Assistance and
Capacity-Building;
• The Committee took note of the report on the on-going work of the Technical Committee;
• The Committee elected Mr. Ivan Lee (Hong Kong, China) as its new Chairperson for 2003-2004.
9. At the meeting on 6 October 2003:
• The Committee took note of the questions posed to  Armenia, Burkina Faso, China, India, and
Thailand and agreed to revert to the notifications of the legislation of these Members at its next
meeting;G/L/654
Page 3
• The Committee took note of the information in document G/VAL/2/Rev.17 which contained a list
of Members having invoked the special and diffe rential provisions of the Customs Valuation
Agreement.  It also took note of documen t G/VAL/W/76/Add.6 which contained an updated
inventory of notification requirements pursuan t to extension decisions and minimum value
reservations, and the notifications that had b een made under the Decisions concerning delay
extensions and minimum value reservations;
• The Committee completed the Transitional Review Mechanism in accordance with Paragraph 18
of the Protocol of Accession of the People's Republic of China;
• The Committee adopted its annual report to the Council for Trade in Goods;
• The Committee agreed to revert to the item of the Fourth through Ninth (G/VAL/W/124) Annual
Reviews at the Committee's meeting of autumn  2004 or earlier, if any Member changed its
position on the matter;
• The Committee agreed to revert to the matter of the European Communities' valuation policies
pending responses from the EC to Brazil's questions;
• The Committee reverted to the matter of paragraph 8.3 of the Doha Decision on Implementation-
Related Issues and Concerns.    It was agreed that the Chair would continue to consult on the
matter under his own responsibility.  The Committee would revert to the matter at its next formal
meeting or earlier, if there were developments in Members' positions;
• The Committee agreed to revert to the question of an Article 6 Review of the PSI Agreement at its
next meeting;
• Under Other Business, the United States raised questions to Mexico concerning the use of
estimated prices and post-importation verification practices.G/L/654
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ANNEX1
Notifications
Members Members who have
indicated their
legislation remains valid
under the WTO
Committee
(G/VAL/M/1)Members who have
submitted their legislation or
amendments under Articles
22.1 and 22.2 of the
AgreementMembers who have
submitted their replies to the
Checklist of Issues
(G/VAL/5)Members who are
delaying
application of the
Agreement under
Article 20.1 or para.
1, Annex III of the
Agreement or
Article IX of the
WTO Agreement
Albania N/A G/VAL/N/1/ALB/1
Angola N/A
Antigua & Barbuda N/A
Argentina G/VAL/N/1/ARG/1 VAL/1/Add.22 + Suppl. 1-4
+Suppl. 2/Rev.1VAL/2/Rev.2/Add.4
Armenia G/VAL/N/1/ARM/1 G/VAL/N/2/ARM/1
Australia G/VAL/N/1/AUS/1 VAL/1/Add.14 + Suppl. 1-4
G/VAL/N/1/AUS/2VAL/2/Rev.1/Add.12 +
Suppl.1
Bahrain N/A
Bangladesh N/A
Barbados N/A
Belize N/A
Benin N/A
Bolivia N/A G/VAL/N/1/BOL/1
Botswana VAL/1/Add.16
Brazil G/VAL/N/1/BRA/1 VAL/1/Add.20 + Suppl.1
G/VAL/N/1/BRA/2 and 3VAL/2/Rev.2/Add.3
Brunei Darussalam N/A G/VAL/N/1/BRN/1 G/VAL/N/2/BRN/1
Bulgaria N/A G/VAL/N/1/BGR/1 G/VAL/N/2/BGR/1
Burkina Faso N/A G/VAL/N/1/BFA/1
Burundi N/A
Cameroon N/A
Canada G/VAL/N/1/CAN/1 VAL/1/Add.17 + Suppl.1-3
G/VAL/N/1/CAN/2VAL/2/Rev.1/Add.14
G/VAL/N/2/CAN/1
Central African Rep. N/A
Chad N/A
Chile N/A
China N/A G/VAL/N/1/CHN/1, 2, and 3 G/VAL/N/2/CHN/1
Colombia N/A G/VAL/N/1/COL/1 G/VAL/N/2/COL/1
Congo N/A
Costa Rica N/A G/VAL/N/1/CRI/1 G/VAL/N/2/CRI/1
Côte d'Ivoire N/A G/VAL/N/1/CVI/1
Croatia N/A G/VAL/N/1/HRV/1 G/VAL/N/2/HRV/1
Cuba N/A G/VAL/N/1/CUB/1 G/VAL/N/2/CUB/1
Cyprus N/A VAL/1/Add.26
G/VAL/N/1/CYP/2VAL/2/Rev.2/Add.7
Czech Republic N/A VAL/1/Add.18 +
Suppl.1/Corr.1 – 2
G/VAL/N/1/CZE/1,2 and 3VAL/2/Rev.1/Add.15 +
Suppl.1
G/VAL/N/2/CZE/1
Dem Rep. of Congo N/A
Djibouti N/A
Dominica N/A G/VAL/N/1/DMA/1
Dominican Rep. N/A G/VAL/N/1/DOM/1
Ecuador N/A
Egypt N/A
                                                     
1 Documents that begin with the code "VAL" are Tokyo Round documents.  The table reflects the
situation as of the date of circulation of this report.G/L/654
Page 5
Members Members who have
indicated their
legislation remains valid
under the WTO
Committee
(G/VAL/M/1)Members who have
submitted their legislation or
amendments under Articles
22.1 and 22.2 of the
AgreementMembers who have
submitted their replies to the
Checklist of Issues
(G/VAL/5)Members who are
delaying
application of the
Agreement under
Article 20.1 or para.
1, Annex III of the
Agreement or
Article IX of the
WTO Agreement
El Salvador N/A
Estonia N/A G/VAL/N/1/EST/1 G/VAL/N/2/EST/1
European
CommunitiesG/VAL/N/1/EEC/1 VAL/1/Add.2 + Suppl.1-13 +
Suppl.1
G/VAL/N/1/EEC/1/Rev.1VAL/2/Rev.1/Add.6
Fiji N/A G/VAL/N/1/FJI/1 G/VAL/N/2/FJI/1
Former Yugoslav
 Rep. of Macedonia N/A
Gabon N/A G/VAL/N/1/GAB/1
Gambia N/A
Georgia N/A G/VAL/N/1/GEO/1
Ghana N/A
Grenada N/A
Guatemala N/A
Guinea Bissau N/A
Guinea, Rep. of N/A
Guyana N/A
Haiti N/A
Honduras N/A
Hong Kong, China G/VAL/N/1/HKG/1 VAL/1/Add.9 N/A
Hungary G/VAL/N/1/HUN/1 VAL/1/Add.6 VAL/2/Rev.1/Add.4
Iceland N/A G/VAL/N/1/ISL/1 G/VAL/N/2/ISL/1
India G/VAL/N/1/IND/1 VAL/1/Add.24 + Suppl.1
G/VAL/N/1/IND/2 and 3VAL/2/Rev.2/Add.6
G/VAL/N/2/IND/1 + Corr.1
Indonesia N/A G/VAL/N/1/IDN/1 G/VAL/N/2/IDN/1 + Corr.1
Israel N/A G/VAL/N/1/ISR/1  + Corr.1 G/VAL/N/2/ISR/1
Jamaica N/A G/VAL/N/1/JAM/1 G/VAL/N/2/JAM/1
Japan G/VAL/N/1/JPN/1 VAL/1/Add.7 VAL/2/Rev.1/Add.8
G/VAL/N/2/JPN/1
Jordan N/A G/VAL/N/1/JOR/1 G/VAL/N/2/JOR/1
Kenya N/A G/VAL/N/1KEN/1 G/VAL/N/2/KEN/1
Korea G/VAL/N/1/KOR/1 VAL/1/Add.19
+ Suppl. 1-4
+ Suppl.3/Corr.1G/VAL/N/1/KOR/2VAL/2/Rev.2/Add.1
+ Suppl.1
Kuwait N/A
Kyrgyz Republic N/A G/VAL/N/1/KGZ/1 G/VAL/N/2/KGZ/1
Latvia N/A G/VAL/N/1/LVA/1 G/VAL/N/2/LVA/1
Lesotho VAL/1/Add.21 + Suppl.1 VAL/2/Rev.2/Add.2
Liechtenstein N/A G/VAL/N/1/LIE/1 N/A
Lithuania N/A G/VAL/N/1/LTU/1 G/VAL/N/2/LTU/1
Macao, China N/A G/VAL/N/1/MAC/1 N/A
Madagascar N/A G/VAL/N/1/MDG/1
Malawi G/VAL/N/1/MWI/1 VAL/1/Add.27
Malaysia N/A G/VAL/N/1/MYS/1 G/VAL/N/2/MYS/1
Maldives N/A
Mali N/A
Malta N/A G/VAL/N/1/MLT/1 G/VAL/N/2/MLT/1
Mauritania N/A
Mauritius N/A G/VAL/N/1/MUS/1 G/VAL/N/2/MUS/1
Mexico VAL/1/Add.25 + Suppl. 1-3
+ Suppl.1/Rev.1VAL/2/Rev.1/Add.10
VAL/2/Rev.2/Add.8
Moldova N/A G/VAL/N/1/MDA/1 G/VAL/N/2/MDA/1G/L/654
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Members Members who have
indicated their
legislation remains valid
under the WTO
Committee
(G/VAL/M/1)Members who have
submitted their legislation or
amendments under Articles
22.1 and 22.2 of the
AgreementMembers who have
submitted their replies to the
Checklist of Issues
(G/VAL/5)Members who are
delaying
application of the
Agreement under
Article 20.1 or para.
1, Annex III of the
Agreement or
Article IX of the
WTO Agreement
Mongolia N/A
Morocco N/A G/VAL/N/1/MAR/1 and 2
G/VAL/N/1/MAR/1/Rev.1 +
Corr.1G/VAL/N/2/MAR/1
G/VAL/N/2/MAR/2
Mozambique N/A
Myanmar N/A
Namibia N/A G/VAL/N/1/NAM/1
New Zealand G/VAL/N/1/NZL/1 VAL/1/Add.12 + Suppl.1 VAL/2/Rev.1/Add.10
Nicaragua N/A
Niger N/A
Nigeria N/A
Norway G/VAL/N/1/NOR/1 VAL/1/Add.11 + Corr.1
+ Suppl. 1-2VAL/2/Rev.1/Add.7
Oman N/A G/VAL/N/1/OMN/1 G/VAL/N/2/OMN/1
Pakistan N/A G/VAL/N/1/PAK/1
Panama N/A G/VAL/N/1/PAN/1 G/VAL/N/2/PAN/1
Papua New Guinea N/A
Paraguay N/A
Peru N/A
Philippines N/A G/VAL/N/1/PHL/1
Poland N/A VAL/1/Add.28
G/VAL/N/1/POL/1 and 2G/VAL/N/2/POL/1
Qatar N/A
Romania N/A VAL/1/Add.8 + Suppl. 1-2
G/VAL/N/1/ROM/1 and 2VAL/2/Rev.1/Add.9
Rwanda N/A G/VAL/W/842
St. Kitts & Nevis N/A
St. Lucia N/A
St. Vincent &
GrenadinesN/A
Senegal N/A G/VAL/N/1/SEN/1
Separate Customs
Territory of Taiwan,
Penghu, Kinmen andMatsu (ChineseTaipei)N/A G/VAL/N/1/TPKM/1 G/VAL/N/2/TPKM/1-2
Sierra Leone N/A
Singapore N/A G/VAL/N/1/SGP/1 G/VAL/N/2/SGP/1
Slovak Republic G/VAL/N/1/SVK/1 VAL/1/Add.18
+ Suppl.1/Corr.1-2G/VAL/N/1/SVK/2VAL/2/Rev.1/Add.15
+ Suppl.1
Slovenia N/A G/VAL/N/1/SVN/1 and 2 G/VAL/N/2/SVN/1
Solomon Islands N/A
South Africa N/A VAL/1/Add.15 + Corr.1
+ Suppl. 1-3
G/VAL/N/1/ZAFVAL/2/Rev.1/Add.13
Sri Lanka N/A
Suriname N/A G/VAL/N/1/SUR/1
Swaziland N/A G/VAL/N/2/SWZ/1
Switzerland G/VAL/N/1/CHE/1 VAL/1/Add.5 N/A
                                                     
2 This is a pending request for an extension of the delay period in accordance with paragraph 1,
 Annex III.G/L/654
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Members Members who have
indicated their
legislation remains valid
under the WTO
Committee
(G/VAL/M/1)Members who have
submitted their legislation or
amendments under Articles
22.1 and 22.2 of the
AgreementMembers who have
submitted their replies to the
Checklist of Issues
(G/VAL/5)Members who are
delaying
application of the
Agreement under
Article 20.1 or para.
1, Annex III of the
Agreement or
Article IX of the
WTO Agreement
Tanzania N/A
Thailand N/A G/VAL/N/1/THA/1
Togo N/A
Trinidad & Tobago N/A G/VAL/N/1/TTO/1 G/VAL/N/2/TTO/1
Tunisia N/A G/VAL/N/1/TUN/1
Turkey G/VAL/N/1/TUR/1 VAL/1/Add.29
G/VAL/N/1/TUR/ 2G/VAL/N/2/TUR/1
Uganda N/A
United Arab
EmiratesN/A G/VAL/55
United States G/VAL/N/1/USA/1 VAL/1/Add.1 + Suppl.1-5 VAL/2/Rev.1/Add.1
Uruguay N/A G/VAL/N/1/URY/1 G/VAL/N/2/URY/1
Venezuela, The
Bolivaran Rep. ofN/A G/VAL/N/1/VEN/1 G/VAL/N/2/VEN/1
Zambia N/A G/VAL/N/1/ZMB/1
Zimbabwe G/VAL/N/1/ZWE/1 VAL/1/Add.23 VAL/2/Rev.2/Add.5
TOTAL NOTIFIED 74355
__________
                                                     
3 This total number includes notifications by Members who have indicated their legislation remains valid under
the WTO Committee (i.e. those in the first column of the table) and those made pursuant to Article 22 of the WTO
Agreement and the Decision on Notifications (G/VAL/5).