RESTRICTED
WORLD TRADE WT/ACC/RUS/14
30August 1996
ORGANIZATION(96-3419)
Original: English
ACCESSION OFTHE RUSSIAN FEDERATION
Information onImplementation andAdministration
oftheCustoms Valuation Agreement
Thefollowing Information OnImplementation andAdministration oftheCustoms Valuation
Agreement (Annex 4ofWT/ACC/1), previously circulated asVAL/2/Rev.2, hasbeenreceived from
thePermanent Mission oftheRussian Federation withtherequest thatitbecirculated tomembers
oftheWorking Party.
_______________
TheRussian Federation customs authorities intheirpractical work aregoverned byRussian
legislation, which currently doesnotinclude theobligations oftheWTO Agreement onImplementation
ofArticle VII,GATT, 1994, Rules onCustoms Valuation (WTO Customs Valuation Agreement).
Therefore, rather thandescribing howanyprovisions oftheWTO Customs Valuation Agreement are
being implemented, thisresponse tothequestionnaire more correctly describes howsimilar obligations
arealready imposed byRussian legislation.
1. Questions concerning Article 1:
(a) Sales between related persons:
(i) Aresales between related persons subject tospecial provisions?
Article 19.2(d) oftheRussian LawOnCustoms Tariff No.5003-1 of21May1993(theRussian
FederationLaw)doesincludespecialprovisionsforvaluingsalesbetweenmutuallydependant(“related”)
persons. Themethod ofdetermining thevalue ofimported goods onthebasisofthetransaction value
(method 1)insales between mutually dependant persons isstillhowever usedwhen thedeclarer
(importer)demonstratesthathisrelationshipwiththesellerofthegoodshasnotinfluencedthetransaction
price. Therulesforapplying transaction value (method 1)under Russian Federation Lawcorrespond
totherules established byArticle 1oftheWTO Customs Valuation Agreement.
(ii) Isthefactofintercompany prices prima facie considered asgrounds forregarding the
respective prices asbeing influenced?
Article 19.2(d) oftheRussian Federation Lawidentifies anumber ofrelationships inwhich
common ownership orcontrol requires thedeclarant toprove thatmutual dependence hasnotinfluenced
thevalue ofthedeal.WT/ACC/RUS/14
Page2
(iii) What istheprovision forgiving thecommunication oftheaforementioned grounds in
writing iftheimporter sorequests? (Article 1.2(a))
Article 16.3oftheRussian Federation Lawrequires thecustoms administration toprovide
awritten communication ofthegrounds forrefusing toaccept thecustoms value asdeclared bythe
importer iftheimporter sorequests.
(iv) How hasArticle 1.2(b) been implemented?
Article 19.1oftheRussian Federation Lawstates thegeneral rulethatthecustoms value of
goods imported toRussian customs territory shallbe“theprice ofthedealthathasactually beenpaid
orissubject tobepaid”(transaction value). Article 19.2(d) oftheRussian Federation Lawstates an
exception where this(transaction value) method maynotbeusedwhen theparties tothetransaction
are“mutually dependent persons ”(related persons), andthenareservation tothisexception when the
declarant canprove thatmutual dependence hasnotinfluenced thevalue ofthedeal:
19.2Thesaidmethod maynotbeusedtodetermine thecustoms value ofthegoods if:
- theparties tothetransaction aremutually dependent persons withtheexception ofcases
where mutual dependence hasnotinfluenced thevalue ofadeal,which shallbeproved
bythedeclarant.
Verification includes thepossibility ofthedeclarant/importer providing comparison prices of
identical orsimilar goods withthesuspect prices.
(b) Price oflostordamaged goods:
Arethere anyspecial provisions orpractical arrangements concerning thevaluation of
lostordamaged goods?
Existing procedures allow forthepossible adjustment ofthecustoms value oflostordamaged
goods. Such adjustment ismade pursuant totheRegulations ontheProcedure andConditions for
Declaring theCustoms Value ofGoods Imported OntotheCustoms Territory oftheRussian Federation,
which have been approved byOrder No.1oftheRussian State Customs Committee, dated
5January 1994, andregistered withtheRussian Ministry ofJustice. TheSupplement No.3tothese
regulations contain temporary instructions forcompleting forms CCV-1 andCCV-2 which explain
indetail theprocedures tobefollowed during thefinaldetermination ofthegoods ’customs value on
thebasisofadditional information submitted bythedeclarant. Suchinformation could include achange
inthecustoms value’ssizeandstructure, oradeduction intheprice paidortobepaid.
2. How hastheprovision ofArticle 4toallow theimporter anoption toreverse theorder
ofapplication ofArticles 5and6been implemented?
TheprovisionofArticle4oftheWTOCustomsValuationAgreementwhichallowstheimporter
anoption toreverse theorder ofapplication ofArticles 5and6oftheWTO Customs Valuation
Agreement isreflected inArticle 18oftheRussian Federation Law.
3. How hasArticle 5.2been implemented?
Theprovision ofArticle 5.2oftheWTO Customs Valuation Agreement isreflected in
Article 22.4oftheRussian Federation Law.WT/ACC/RUS/14
Page3
4. How hasArticle 6.2been implemented?
Customs procedures intheRussian Federation donotprovide forcompelling theproducer
toproduce costestimates forthepurpose ofvaluing hisgoods iftheproducer doesnotagree tomake
suchestimates available (seethepreviously referenced Regulations ontheProcedure andConditions
forDeclaring theCustoms Value ofGoods Imported Onto theCustoms Territory oftheRussian
Federation).
5. Questions concerning Article 7:
(a) What provisions havebeenmade formaking value determinations pursuant toArticle 7?
Articles 18through 23oftheRussian Federation Lawestablish themethods andprocedures
fordetermining thecustoms value ofgoods. Ifthecustoms value ofgoods cannot bedetermined as
aresult ofsuchmethods, thecustoms value shallbedetermined withdueregard forworld practice.
Inaddition, uponitsaccession totheWTO, theobligations oftheWTO Customs Valuation Agreement
willspecifically apply intheRussian Federation.
(b) What istheprovision forinforming theimporter ofthecustoms value determined under
Article 7?
Issues concerning notification toimporters areregulated byArticle 16.3. oftheRussian
Federation Law.
(c) Aretheprohibitions found inArticle 7.2delineated?
Article 24.2oftheRussian Federation Law, justasArticle 7.2.oftheWTO Customs Valuation
Agreement, makes requirements onpricecriteria forthevaluation ofgoods using method 6.Regulatory
documents issued bytheRussian State Customs Committee explain those provisions which havein
practice ledtodisputes.
6. Howhavetheoptions found inArticle 8.2beenhandled? Inthecaseoff.o.b. application
areex-factory prices alsoaccepted?
According toArticle 19.1(a) oftheRussian Federation Law, thecustoms value ofimported
goods includes expenses forthetransportation ofthegoods totheairport, port, oranyother place
ofimportation ontothecustoms territory oftheRussian Federation. These expenses comprise: the
costoftransport; loading, unloading, handling, andtransshipment charges; andthecostofinsurance.
Ifthegoods are,inaccordance withthedelivery terms asestablished intheforeign tradecontract (EXW,
FCA, FOBportofthecountry ofexportation), deemed delivered prior totheplace ofimportation,
thetransactionpriceisadjustedforthecorrespondingtransportationexpensesaccordingtoArticle19.1(a)
oftheRussian Federation law.
7. Where istherateofexchange published, asrequired byArticle 9.1?
Therateofexchange quoted bytheCentral Bank oftheRussian Federation ispublished in
thenational daily Izvestia.
8. What steps have been taken toensure confidentiality, asrequired byArticle 10?
Theconfidentialityofinformationprovidedwhendeclaringthecustomsvalueofgoodsisensured
byArticle 14oftheRussian Federation LawandArticle 16oftheCustoms Code oftheRussian
Federation.WT/ACC/RUS/14
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9. Questions concerning Article 11:
(a) What rights ofappeal areopen totheimporter oranyother person?
(b) How ishetobeinformed ofhisright tofurther appeal?
Article 16.3oftheRussian Federation Law, andArticle 2.9ofthepreviously referenced
Regulations ontheProcedure andConditions forDeclaring theCustoms Value ofGoods Imported
OntotheCustoms Territory oftheRussian Federation, provide thatthedeclarant mayrequest inwriting
thatthecustoms office explain whyithasnotaccepted thedeclarant ’scustoms value. Article 16.3
oftheRussian Federation Lawprovides thattheRussian customs agency receiving suchawritten request
shallbeobliged toprovide awritten explanation ofthereasons whythecustoms value declared by
thedeclarant cannot beaccepted bythecustoms agency.
Article 16.4oftheRussian Federation Lawstipulates that,should theimporter disagree with
avalue determination byacustoms authority oftheRussian Federation, hemaylodge anappeal in
accordance withtheprocedure established bytheCustoms Code oftheRussian Federation. Article 407
requires theinitial appeal tobefiledwiththehigher customs administration oftheRussian Federation,
while Article 416stipulates thatshould thisappeal beturned down, theimporter mayfurther appeal
tocourt.
10. Provide information onthepublication, asrequired byArticle 12,of:
(a) (i) therelevant national laws;
(ii) theregulations concerning theapplication oftheAgreement;
(iii) thejudicial decision andadministrative rulings ofgeneral application relating to
theAgreement;
(iv) general orspecific laws being referred tointherules ofimplementation or
application.
TheexistingproceduresprovideforthepublicationofalllegislativeactsoftheRussianFederation
andregulatory legalactsoftheRussian State Customs Committee. TheRussian Federation Lawis
uniformly applied fortheentire territory oftheRussian Federation andsetsupasingle system ofcustoms
valuation methods. TheStateCustoms Committee oftheRussian Federation istaking thenecessary
measures toensure auniform andproper application ofthese provisions bothbycustoms officials,
businessmen andspecialized organizations. Anumber oftextbooks oncustoms affairs arebeing
developedandpublished,includingspecialsectionsaboutcustomsvaluation.Allthestandarddocuments
oncustoms valuation withrespect toforeign tradearesubject toregistration withtheMinistry ofJustice
oftheRussian Federation andtocompulsory publication inthemassmedia before theybecome effective.
(b) Isthepublication offurther rules anticipated? What topics would theycover?
TheRussianStateCustomsCommitteecontinuesupdatingcustomsregulationsregardingcustoms
valuation matters onanumber ofissues. Allnewly-adopted regulatory legal actsmust atalltimes
bepublished.
11. Questions concerning Article 13:
(a) How istheobligation ofArticle 13(last sentence) being dealt with intherespective
legislation?
Theprovision ofArticle 13oftheCustoms Valuation Agreement isreflected inArticle 15.3
oftheRussian Federation Law.WT/ACC/RUS/14
Page5
(b) Have additional explanations been laiddown?
Additional explanations regarding Article 13oftheCustoms Valuation Agreement aresetforth
inthepreviously referenced Regulations ontheProcedure andConditions forDeclaring theCustoms
Value ofGoods Imported Onto theCustoms Territory oftheRussian Federation.
12. Questions concerning Article 16:
(a) Does therespective national legislation contain aprovision requiring customs authorities
togiveanexplanation inwriting astohowthecustoms value wasdetermined?
Article 16.3oftheRussian Federation Lawcontains aprovision requiring customs authorities
togiveanexplanation inwriting astohowthecustoms value wasdetermined.
(b) Arethere anyfurther regulations concerning anabove-mentioned request?
Since theRussian Federation Lawonlyrecently came intoeffect on1July1993, there has
beennoneedsofartoissuesuchadditional regulatory actsforthepractical work ofRussian customs
authorities.
13. How have theInterpretative Notes oftheAgreement been included?
Anumber ofprovisions contained intheNotes totheCustoms Valuation Agreement havebeen
included intheRussian LawOnCustoms Tariff andthepreviously referenced Regulations onthe
Procedure andConditions forDeclaring theCustoms Value ofGoods Imported Onto theCustoms
Territory oftheRussian Federation.
14. How have theprovisions oftheDecision of26April 1984 ontheTreatment ofInterest
Charges intheCustoms Value ofImported Goods (Val/6/Rev.1) been implemented?
15. Forthose countries applying paragraph 2oftheDecision of24September 1984 onthe
Valuation ofCarrier Media Bearing Software forData Processing Equipment (Val/8),
howhave theprovisions ofthisparagraph been implemented?
There areasyetnospecial provisions inRussian legislation regarding thematters addressed
intheDecision of26April 1984ontheTreatment ofInterest Charges intheCustoms Value ofImported
Goods(VAL/6/Rev.1)norparagraph2oftheDecisionof24September1984ontheValuationofCarrier
Media Bearing Software forDataProcessing Equipment (Val/8).