WORLD TRADE
ORGANIZATIONG/VAL/55
28 May 2003
(03-2854)
Committee on Customs Valuation
UNITED ARAB EMIRATES - DECISION CONCERNING ANNEX III, PARAGRAPH 1
OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF
THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
Decision
TAKING NOTE of the Government of United Arab Emirates’ request under Paragraph 1 of
Annex III of the Agreement on Implementation of Article VII of the General Agreement on Tariffsand Trade 1994 (“WTO Agreement on Customs Valuation”), done at Marrakesh on 15 April 1994, to
extend its delay in the application of the provisions of that Agreement;
RECOGNIZING that on 10 April 1996 , the United Arab Emirates became a contracting party
to the WTO Agreement on Customs Valuation and invoked paragraph 1 of Article 20 of thatAgreement to delay application of its provisions for a period of five years from the date of entry into
force of the Agreement on 10 April 1996, and was therefore scheduled to apply the provisions of that
Agreement by 10 April 2001;
CONSIDERING the United Arab Emirates has made substantial efforts to implement the
provisions of the WTO Agreement on Customs Valuation;
CONSIDERING also that the United Arab Emirates has requested technical assistance in
support of implementation and application of the WTO Agreement on Customs Valuation;
NOTING the United Arab Emirates’ long-standing commitment and considerable efforts in
reforming and modernizing its customs administration;
NOTING also the United Arab Emirates’ objective of ensuring the effective implementation
and administration of the WTO Agreement on Customs Valuation;
NOTING that the United Arab Emirates’ authorities have established a detailed work
program
 1, involving the relevant ministries and agency, to enable the elaboration and approval of its
legislation and the completion of its domestic administrative and legal procedures, including training,
dissemination of information, and other actions, for implementing and applying the WTO Agreement
on Customs Valuation;
NOTING that the United Arab Emirates does not apply currently minimum values to any
products and its intention not to apply any minimum values during or after the requested extension in
the delay of its application of the WTO Agreement on Customs Valuation;
NOTING  that the United Arab Emirates implement and apply Paragraph 2 of the Decision on
the Valuation of Carrier Media Bearing Software for Data Processing Equipment 2;
                                                     
1Attachment 1 – Work Programme
2G/VAL/5G/VAL/55
Page 2
NOTING that the Government of the United Ar ab Emirates does not use or plan to use
preshipment inspection services for purposes of customs valuation;
RECOGNIZING the United Arab Emirates’ indication that this would be a single request for
an extension to delay its implementation of the WTO Agreement on Customs Valuation;
Members, acting pursuant to the provisions of paragraph 1 of Annex III of the WTO
Agreement on Customs Valuation,
DECIDE, in view of the exceptional circumstances set out above, that:
1. Subject to the terms and conditions set out hereunder, the United Arab Emirates may delay
further the application of the provisions of the WTO Agreement on Customs Valuation for a
period not extending beyond 31 December 2003.
2. This Decision shall not prejudice the rights and obligations of the United Arab Emirates under
the WTO Agreements, in particular those rights and obligations under the WTO Agreement
on Customs Valuation.G/VAL/55
Page 3
Attachment 1- Work Programme
Execution Plan of the Work Program
 
Objectives Programs Description ExecutionAchievements
REGULATORY
FRAMEWORK
LegislationGCC Customs Common Law, which
contains customs valuation provisions,has been submitted to the UAE
Council of Ministers in order to be
approved and implemented at theUAE level.
 The approval is
envisaged tointervene
before the end
of the Year2002.The GCC Customs
Common Law wasapproved &
implemented on
1/1/2003 as a legal
instrument for the
GCC CustomsUnion.
REGULATORY
FRAMEWORK
Regulations and
InstructionsThe customs valuation committee is:
-Preparing explicative regulations and
benchmarks regarding the
implementation measures of valuation
rules and appeal in pursuance of the
interpretative notes of the Customs
Valuation Agreement.
-Harmonizing internal implementation
and administrative regulations and
forms in all customs entry and transitpoints in the UAE in order to reach a
harmonized procedures and norms of
customs valuation and clearance.
-Reconsidering the available customs
data and information in order to
enhance transparency in declaration
procedures and methods of valuation
in pursuance of the Custom valuation
Agreement.
 
 It is expected
to terminate
this step by theend of 2002.
 In order to form a
UAE Customs
Valuation
Committee,
member staff
requires intensivetraining to be
qualified for
carrying out the
tasks set for this
Committee.
 - Done and
documented and
still awaitingapproval.
 - The working
papers of the GCC
Customsdocuments are
prepared, but the
new designs should
be incorporated in
the e-clearingsystem.
- The e-clearing
system contains
the H.S. Codeclassification
system. However,
the customs
valuation
agreementG/VAL/55
Page 4
requirements are
expected to be
incorporated in
the system by the
end of 2004
Objectives Programs Description ExecutionAchievements
INSTITUTIONAL
FRAMEWORK:
Administration of
customs valuation- Preparing the establishment of
customs valuation Divisions and the
institutional structure of the Customs
Valuation Department and
determining their competencies,
including in the area of the CVAgreement implementation.
- Setting up information basis and
references necessary for customs
valuation to serve clients and respondto questions posed by officials in the
Customs departments in addition to
the appointment and training of staff
with regard to customs valuation
issues.
 This will be
terminated at
the end of
2003.The institutional
framework is
formed as
Customs valuation
sections. The tasks
of these sectionshave also been
produced. The
valuation sections
are entrusted with
training the staffon valuation
methods.
The General
Customs
DepartmentThe competent authorities are now
working on the establishment of a
general department of customs with
the aim of harmonizing customs
regimes in all technical, financial and
administrative fields. This will
facilitate the implementation of theCV Agreement.
 The decision of
creating the
federal
structure is
expected to be
approved by
the end of2002. The Federal
Customs
Authority is
already formed
and approved by
His Highness the
UAE President.The Director
General is already
appointed and his
staff is
operational.
Database  The Customs Department is updating
the computer systems applied in
implementing the Customs Valuation
Agreement, including:
 
-Determining necessary information to
set up database allowing computerized
custom valuation systemThe database is
expected to be
established and
fullyoperational by
the end of
2002.
 
 - The necessary
information
database has been
set up.G/VAL/55
Page 5
-Determining information resources
and references and its updating
methods
  - The information
resources is
determined fromthe transactions
cleared at the
various Customs
points, and
updated within 90days as stated in
WTO customs
valuation
agreement . 
 
Objectives Programs Description ExecutionAchievements
Database  -Improving computer system on the
basis of work experience available inadvanced countries
-Setting up a Division in charge of
risk management in order for the
customs valuation staff to capture
products with higher risks, and animport prices database of these
products for using in applying
customs valuation methods.
 
 - Based on WCO
reform &
modernization
program we arereengineering our
systems (2003-
2005).
- Elements
determining
requirements of
the electronic
database are
handed over to theInformation
Technologies
Department to be
incorporated into
the system (2005).
 
- The Division in
charge of riskmanagement and
its function
procedures is
planned in the
strategy of thereform &
modernization
program (2003-2005).G/VAL/55
Page 6
Training programs
 
 Setting up a program to train customs
staff to support the implementation of
the custom valuation agreementDuring the
period of
extension andbeyond- The training
scheme for 2002-
2003 is attached.
The training is
attracting the
operations &
inspection staff.
The valuationsection has also set
standards to select
staff to support the
implementation of
customs valuationagreement (end of2004).
 - Separate
training scheme is
set for our tradepartners.
Objectives Programs Description ExecutionAchievements
Technical
AssistanceAssessing technical assistance needs
of the customs administrations in the
UAE and requesting assistance from
the WTO, WCO and their MemberStates.During the
extension
period and
beyondWe are still in
need of WTO
technical
assistance toenhance our
Customs
administration in
the field of the
implementation of
the Customs
valuationagreement.
We will present
later our specific
needs in this area.G/VAL/55
Page 7
Valuation-Training course
1. The valuation-training course held at UAE Customs in accordance with Article VII of GATT 1994.
Course Dates Venue
19-21/04/2001 Al Ghuwaifat Customs.
22-24/04/2001 Al Ghuwaifat Customs.
05-09/05/2001 Mazyad Customs.
12-16/05/2001 Al Ain (Airport/Postal) Customs.
26-30/05/2001 Abu Dhabi Airport Customs.
09-20/06/2001 Abu Dhabi (Zayed Port/Postal) Customs.
28-30/05/2002 Customs Training  Department (Dubai).
01-05/06/2002 Customs Training  Department (Dubai).
08-12/06/2002 Customs Training  Department (Dubai).
21-25/12/2002 Tariff Department (Dubai).
28/12/2002-8/1/2003 Cu stoms Training Department (Dubai).
05-16/04/2003 Airport Free Zone Customs
12/04/2003 Dubai Police Academy
19/04/2003 Dubai Police Academy
03-14/05/2003 Customs Training  Department (Dubai).
2. 15 valuation-training courses to be arranged until the end of 2003.
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