WORLD TRADE
ORGANIZATIONG/L/323
5 October 1999
(99-4121)
REPORT 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 1999.  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 two formal meetings, on
26 April 1999 (G/VAL/M/10), under the Chairmanship of Mr. Mohammed Bentaja (Morocco), and on
4 October 1999 (G/VAL/M/11).  At the April mee ting, the Committee elected Mr. Edward Brown
(United Kingdom) as Chairperson and Mr. Syed Habib Ahmed (Pakis tan) as Vice-Chairperson for 1999.
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.
IMPLEMENTATION OF THE AGREEMENT
5. In conformity with Article 20.1 of the Ag reement, 55 developing country Members have
invoked delayed application of the provisions of the Agreement.  Understanding has been reached in the
Committee that the texts of the national legisla tion of these developing country Members will be
supplied to the Committee before the developing count ry Members begin applying the provisions of the
Agreement (G/VAL/5, para. B.2(ii)).
6. To date 14 Members have submitted communications indicating that their legislation notified
under the Tokyo Round Customs Valuation Agreement remained valid under the WTO Customs
Valuation Agreement;  in addition 23 Members have no tified either their complete national legislation
on customs valuation or amendments thereto;  27 Members have not yet made any notification  (See
Annex).G/L/323
Page 2
7. At the meeting in April 1999:
- the Committee examined the national legislations of Brazil, Israel, Latvia, Morocco, Panama,
Poland, Suriname and Trinidad and Tobago, and the responses provided by Iceland, Latvia, Morocco
and Trinidad and Tobago to the checklist of issues.  The Committee concluded its examination of thelegislations of Latvia, Poland, Suriname and Trinidad and Tobago, and of the responses to the checklist
of issues submitted by Iceland, Latvia and Trinidad and Tobago.
- the Committee took note of the information in  document G/VAL/2/Rev.8 which contains a list
of Members having invoked the special and diffe rential provisions of the Customs Valuation
Agreement.  Under this agenda item, the Committee also considered Peru's request (G/VAL/W/31) for
an extension of the delay period for an additional two years.  The Committee agreed that consultations
should be held between Peru and interested delegations to reach a solution
1.
- the Committee took note of the informa tion on technical assistance by the WCO
(G/VAL/8/Add.5).  Additionally, an update was prov ided by the WTO Secretariat on its Technical
Assistance Programme.  Canada and the United States  also provided information on technical assistance
programmes in the area of customs valuation conducted by their respective administrations. This
information was circulated subsequently in documents G/VAL/W/36 a nd 37.  India, though a
developing country, also provided information on its  technical assistance activities besides raising some
issues that technical assistance should generally a ddress.  The Committee was informed that following
the agreement reached by the Committee at its in formal meeting on 12 February 1999 on a proposal by
Canada (made at the 13 November 1998 meeting), a letter from the Deputy-Director General had been
sent to international organizations working in th e area of customs matters (the African Development
Bank, Asian Development Bank, European Bank fo r Construction and Development, Inter-American
Development Bank, International Monetary F und, UNCTAD, World Bank and the World Customs
Organization) to draw their attention to the Comm ittee's activities with respect to technical assistance
and, in particular to encourage them to take in to account in their activities the needs expressed by
developing country Members.
- the Committee continued its discussion on paragraph I(b)(iii) of the "Fourth Annual Review of
the Implementation and Operation of the Cu stoms Valuation Agreement" (G/VAL/W/29) , which had
been adopted on an ad referendum basis by the Committee at its meeting of 13 November 1998 , but no
conclusion was reached at this meeting on this document.
- in its communication circulated in G/VAL/ W/33, Korea expressed concern and cited cases
relating to the lack of uniformity in the interpretation and application of the Agreement by major trading
partners.
- the United States expressed concern about the us e of minimum prices and the inappropriate use
by customs administrations of price databases.
- India raised questions in which it referred to certain aspects of the EC's valuation policy, and a
matter concerning section 6 of the minutes of  the Committee meeting held on 13 November 1998
(G/VAL/M/9).
- the Committee took note of the report on the work of the Eighth (29 March – 1 April 1999)
Session of the Technical Committee of the WCO.
                                                     
1 This matter was resolved by a Decision of the General Council (WT/L/307) which granted Peru an
extension of one year under the terms and conditions as contained in the Decision.G/L/323
Page 3
8. At the meeting in October 1999, the Committee adopted the present report and agreed to
forward it to the Council  for Trade in Goods.
C. TRADE FACILITATION
9. In accordance with the request made by the Council for Trade in Goods (CTG), on 1 April 1999
the Committee sent to that body, through the Chai rman, the results of its discussions held on
13 November 1998 (formal meeting), 12 February and 22 March 1999 (informal meetings) on the
subject of trade facilitation and the Customs Valua tion Agreement (G/C/W/149).  In this connection, to
assist the Committee in its consideration of the linkages between trade facilitation and the Customs
Valuation Agreement, a background note was pr epared by the Secretariat (G/VAL/W/32).G/L/323
Page 4
ANNEX2
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 of the
Agreement
Angola Not notified Not notified
Antigua & Barbuda Not notified Not notified
Argentina G/VAL/N/1/ARG/1 VAL/1/Add.22 + Suppl. 1-4
+Suppl. 2/Rev.1VAL/2/Rev.2/Add.4
Australia G/VAL/N/1/AUS/1 VAL/1/Add.14 + Suppl. 1-4 VAL/2/Rev.1/Add.12 +
Suppl.1
Bahrain WT/Let/149
Bangladesh WT/Let/1/Rev.1
Barbados Not notified Not notified
Belize Not notified Not notified
Benin WT/Let/242
Bolivia WT/Let/48
Botswana Not notified VAL/1/Add.16 Not notified
Brazil VAL/1/Add.20 + Suppl.1
G/VAL/N/1/BRA/2VAL/2/Rev.2/Add.3
Brunei Darussalam WT/Let/36
Bulgaria G/VAL/N/1/BLG/1 Not notified
Burkina Faso WT/Let/19
Burundi WT/Let/24
Cameroon WT/Let/41
Canada VAL/1/Add.17 + Suppl.1-3
G/VAL/N/1/CAN/1 + 2VAL/2/Rev.1/Add.14
G/VAL/N/2/CAN/1
Central African Rep. WT/Let/19
Chad WT/Let/237
Chile WT/Let/1/Rev.1
Colombia WT/Let/1/Rev.2
Congo Not notified Not notified
Costa Rica WT/Let/1/Rev.2
Côte d'Ivoire WT/Let/1/Rev.1
WT/Let/307
Cuba WT/Let/19
Cyprus VAL/1/Add.26
G/VAL/N/1/CYP/2VAL/2/Rev.2/Add.7
Czech Republic VAL/1/Add.18 +
Suppl.1/Corr.1 – 2
G/VAL/N/1/CZE/1
G/VAL/N/1/CZE/3VAL/2/Rev.1/Add.15 +
Suppl.1
G/VAL/N/1/CZE/2
G/VAL/N/2/CZE/1
Dem Rep. of Congo Not notified Not notified
Djibouti WT/Let/108
Dominica Not notified Not notified
Dominican Rep. WT/Let/1/Rev.1
Ecuador WT/Let/72
European
CommunitiesVAL/1/Add.2 + Suppl.1-13 +
Suppl.1
G/VAL/N/1/EEC/1/Rev.1VAL/2/Rev.1/Add.6
                                                     
2 Documents that begin with the code "VAL" are Tokyo Round documents.  Where a Member has
indicated that its legislation notified under the Tokyo Round Committee remains valid under the WTO
Committee (second column), that Member is not counted in the total under the column listing Members who
have submitted legislation under Article 22.1 and 22.2;  that Member is counted under the second column.G/L/323
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 of the
Agreement
Egypt WT/Let/19
El Salvador WT/Let/1/Rev.2
Fiji G/VAL/N/1/FJI/1 G/VAL/N/2/FJI/1
Gabon WT/Let/1/Rev.1
Gambia Not notified Not notified
Ghana WT/Let/1/Rev.1
Grenada Not notified Not notified
Guatemala WT/Let/24
Guinea Bissau Not notified Not notified
Guinea, Rep. of Not notified Not notified
Guyana WT/Let/226
Haiti WT/Let/231
Honduras WT/Let/1/Rev.1
Hong Kong, China G/VAL/N/1/HKG/1 VAL/1/Add.9 Not applicable
Hungary G/VAL/N/1/HUN/1 VAL/1/Add.6 VAL/2/Rev.1/Add.4
Iceland G/VAL/N/1/ISL/1 G/VAL/N/2/ISL/1
India VAL/1/Add.24 + Suppl.1
G/VAL/N/1/IND/2VAL/2/Rev.2/Add.6
Indonesia WT/Let/1/Rev.1
Israel G/VAL/N/1/ISR/1 + Corr.1 Not notified
Jamaica WT/Let/1/Rev.2
Japan G/VAL/N/1/JPN/1 VAL/1/Add.7 VAL/2/Rev.1/Add.8
Kenya WT/Let/1/Rev.1
Korea G/VAL/N/1/KOR/1 VAL/1/Add.19
+ Suppl. 1-4
+ Suppl.3/Corr.1VAL/2/Rev.2/Add.1
+ Suppl.1
Kuwait WT/Let/72
Kyrgyz Republic Not notified Not notified
Latvia G/VAL/N/1/LVA/1 G/VAL/N/2/LVA/1
Lesotho Not notified VAL/1/Add. 21 + Suppl.1 VAL/2/Rev.2/Add.2
Liechtenstein G/VAL/N/1/LIE/1 Not applicable
Macau G/VAL/N/1/MAC/1 Not applicable
Madagascar WT/Let/85
Malawi G/VAL/N/1/MWI/1 VAL/1/Add.27 Not notified
Malaysia WT/Let/1/Rev.1
Maldives WT/Let/285
Mali WT/Let/78
WT/Let/306
Malta WT/Let/1/Rev.1
Mauritania WT/Let/82
Mauritius WT/Let/1/Rev.2
Mexico Not notified VAL/1/Add.25 + Suppl. 1-3
+ Suppl.1/Rev.1VAL/2/Rev.1/Add.10
VAL/2/Rev.2/Add.8
Mongolia Not notified Not notified
Morocco G/VAL/N/1/MAR/1
G/VAL/N/1/MAR/1/Rev.1 +
Corr.1G/VAL/N/2/MAR/1
G/VAL/N/2/MAR/2
Mozambique Not notified Not notified
Myanmar WT/Let/1/Rev.1
Namibia G/VAL/N/1/NAM/1 Not notified
New Zealand G/VAL/N/1/NZL/1 VAL/1/Add.12 + Suppl.1 VAL/2/Rev.1/Add.10
Nicaragua WT/Let/29
Niger WT/Let/301
Nigeria WT/Let/106G/L/323
Page 6
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 of the
Agreement
Norway G/VAL/N/1/NOR/1 VAL/1/Add.11 + Corr.1
+ Suppl. 1-2VAL/2/Rev.1/Add.7
Pakistan WT/Let/1/Rev.1
Panama G/VAL/N/1/PAN/1 G/VAL/N/2/PAN/1
Papua New Guinea Not notified Not notified
Paraguay WT/Let/1/Rev.1
Peru Decision in
WT/L/38,
WT/L/307
Philippines WT/Let/1/Rev.1
Poland VAL/1/Add.28
G/VAL/N/1/POL/1Not notified
Qatar Not notified Not notified
Romania VAL/1/Add.8 + Suppl. 1-2
G/VAL/N/1/ROM/2VAL/2/Rev.1/Add.9
Rwanda Not notified Not notified
St. Kitts & Nevis Not notified Not notified
St. Lucia Not notified Not notified
St. Vincent &
GrenadinesNot notified Not notified
Senegal WT/Let/1/Rev.1
Sierra Leone Not notified Not notified
Singapore 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.1-2VAL/2/Rev.1/Add.15
+ Suppl.1
Slovenia G/VAL/N/1/SVN/1 G/VAL/N/2/SVN/1
Solomon Islands Not notified Not notified
South Africa VAL/1/Add.15 + Corr.1
+ Suppl. 1-3G/VAL/N/1/ZAFVAL/2/Rev.1/Add.13
Sri Lanka WT/Let/1/Rev.1
Suriname G/VAL/N/1/SUR/1 Not notified
Swaziland Not notified Not notified
Switzerland G/VAL/N/1/CHE/1 VAL/1/Add.5 Not applicable
Tanzania Not notified Not notified
Thailand WT/Let/1/Rev.1
Togo WT/Let/19
Trinidad & Tobago G/VAL/N/1/TTO/1 G/VAL/N/2/TTO/1
Tunisia WT/Let/1/Rev.2
Turkey G/VAL/N/1/TUR/1 VAL/1/Add.29 Not notified
Uganda WT/Let/108
United Arab
EmiratesWT/Let/72
United States G/VAL/N/1/USA/1 VAL/1/Add.1 + Suppl.1-5 VAL/2/Rev.1/Add.1
Uruguay WT/Let/1/Rev.1
Venezuela WT/Let/1/Rev.1
Zambia WT/Let/28
Zimbabwe G/VAL/N/1/ZWE/1 VAL/1/Add.23 VAL/2/Rev.2/Add.5
TOTAL NOTIFIED 14 23 28 55
__________