WORLD TRADE
ORGANIZATIONG/VAL/W/124
24 September 2003
(03-5062)
Committee on Customs Valuation Original:  English
NINTH ANNUAL REVIEW OF THE IMPLEMENTATION AND
OPERATION OF THE AGREEMENT ON IMPLEMENTATION
OF ARTICLE VII OF THE GENERAL AGREEMENT
ON TARIFFS AND TRADE 1994
Background Working Document by the Secretariat
This working document is circulated by the S ecretariat in preparation for the ninth annual
review of the implementation and operation of the Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade 1994 (the Agreement), to be conducted at the forthcoming
meeting on 6 October 2003.  As indicated in the text below, this document will have to be updated in
light of the discussion at that meeting in order to  give a full picture of the developments in the
Committee during the current year.
_______________
Article 23 of the Agreement provides that  "the Committee shall review annually the
implementation and operation of this Agreement taking into account the objectives thereof".
The main objectives of the Agreement are those listed in the General Introductory Commentary.
The annual review of the Committee should cover the implementation and operation of the Agreement
in the light of its objectives and specific obligations.G/VAL/W/124
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The contents of this document are as follows:
Page
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND
OBSERVER ST ATUS ..............................................................................................................3
(a) WTO Memb ers (146)........................................................................................................... .......3
(b) Delayed Applicati on and Reservations.......................................................................................4
(i) Article 20.1 (delayed application of the provisions of the Agreement).......................................4
(ii) Article 20.2 (delayed application of the computed value method) (19)......................................4
(iii) Annex III, paragraph 1 (extension of  the five-year de lay period)(2)..........................................4
(iv) Annex III, paragraph 2 (reservation concerning minimum values) (1)......................................4
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of
Articles 5 and 6) (52) ......................................................................................................... .........4
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer
so requests) (50).............................................................................................................. ............5
(c) Observer Gove rnments (31)................................................................................................... .....5
(d) Observer Internationa l Organizati ons (6) ...................................................................................5
II. OFFICERS OF THE WTO COMMI TTEE ON CUSTOMS  VALUATION......................6
III. MEETINGS OF TH E COMMITTEE ....................................................................................6
IV. NATIONAL LEGISLAT ION PRESEN TED .........................................................................6
(a) Texts of nati onal legislation............................................................................................... .........6
(b) Checklist of issues ......................................................................................................... .............6
(c) Examination of nati onal legislation ......................................................................................... ...6
(d) Information on the applicati on of the Committee Decisions ......................................................7
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OF THE
TEXT OF THE AG REEMENT ..............................................................................................7
VI. OTHER DECISIONS TAKE N BY THE CO MMITTEE .....................................................7
VII. TECHNICAL ASSIST ANCE ..................................................................................................7
VIII. REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS
VALUATIO N ...................................................................................................................... ......7
IX. CONSULTATION AND DI SPUTE SETTLE MENT............................................................7
X. ANNUAL REPORT TO THE COUNCI L FOR TRADE IN  GOODS.................................8G/VAL/W/124
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I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER
STATUS
(a) WTO Members (146)
Albania Georgia Niger
Angola Germany NigeriaAntigua and Barbuda Ghana NorwayArgentina Greece Oman
Armenia Grenada
Australia Guatemala PakistanAustria Guinea Bissau Papua New GuineaBahrain Guinea, Rep. of ParaguayBangladesh Guyana PeruBarbados Haiti Philippines
Belgium Honduras Poland
Belize Hong Kong, China PortugalBenin Hungary QatarBolivia Iceland RomaniaBotswana India Rwanda
Brazil Indonesia Saint Kitts and Nevis
Brunei Darussalam Ireland Saint LuciaBulgaria Israel Saint Vincent & GrenadineBurkina Faso Italy SenegalBurundiCameroon
CanadaJamaica
Japan
JordanSeparate Customs Territory of
  Taiwan, Penghu, Kinmen, and
  Matsu
Central African Republic Kenya Sierra LeoneChad Korea SingaporeChile Kuwait Slovak RepublicChina Kyrgyz Republic SloveniaColombia Latvia Solomon Islands
Congo Lesotho South Africa
Congo, Democratic Rep. of the Liechtenstein SpainCosta Rica Lithuania Sri LankaCôte d'Ivoire Luxembourg SurinameCroatia Macao, China SwazilandCuba Madagascar Sweden
Cyprus Malawi Switzerland
Czech Republic Malaysia TanzaniaDenmark Maldives ThailandDjibouti Mali TogoDominica Malta Trinidad and Tobago
Dominican Republic Mauritania Tunisia
Ecuador Mauritius TurkeyEgypt Mexico UgandaEl Salvador Moldova United Arab EmiratesEstonia Mongolia United KingdomEuropean Community Morocco United States
Fiji Mozambique Uruguay
Finland Myanmar Venezuela, The Bolivaran Rep. ofFormer Yugoslav Rep. of Macedonia Namibia ZambiaFrance Netherlands ZimbabweGabon New ZealandGambia NicaraguaG/VAL/W/124
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(b) Delayed Application and Reservations
This table reflects the situation with respect to special and differential treatment provisions
available for developing country Members as at 23 September 2003.  These provisions have been
invoked as follows:
(i) Article 20.1 (delayed application of the provisions of the Agreement)
No Member maintains this special and differential treatment provision.
(ii) Article 20.2 (delayed application of the computed value method) (19)
Bolivia
Cameroon
Côte d'Ivoire
Dominican RepublicEcuador
Egypt
El SalvadorGuatemala
Haiti
Jamaica
KuwaitMadagascar
Mauritania
MyanmarSenegal
Sri Lanka
Tanzania
TunisiaUnited Arab Emirates
(iii) Annex III, paragraph 1 (extension of the five-year delay period)(2)
Rwanda (request pending since 22/05/01)
United Arab Emirates (extension granted in G/VAL/55)
(iv) Annex III, paragraph 2 (reservation concerning minimum values)
1 (1)
Guatemala (21/11/02;  21/05/03;  and 21/11/04)
Sri Lanka (28/02/05)
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5
and 6) (52)
Argentina2Guyana Niger
Bahrain Haiti Pakistan
Bangladesh Honduras Peru2
Brazil2India2Philippines
Brunei Darussalam Indonesia Senegal
Burkina Faso Israel Sri Lanka
Cameroon Jamaica Thailand
Chile Kenya TogoColombia Madagascar Tunisia
Costa Rica Maldives Turkey
2
Côte d'Ivoire Malawi2Uganda
Djibouti Malaysia United Arab Emirates
Dominican Republic Mali UruguayEcuador Malta Venezuela, The
                                                     
1 This paragraph does not include those Members which have been granted reservations under the
Article IX waiver provisions of the WTO Agreement.
2 These Members maintain in the WTO the special and differential treatment provisions invoked under
the Tokyo Round Agreement through Decision WT/L/38.G/VAL/W/124
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Egypt Mexico2  Bolivaran Rep. of
El Salvador Morocco2Zambia
Gabon Myanmar Zimbabwe2
Guatemala Nicaragua
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so
requests) (50)
Argentina2Egypt Malaysia Thailand
Bahrain El Salvador Mali Togo
Bangladesh Gabon Malta Tunisia
Brazil2Guatemala Mexico2Turkey2
Brunei Darussalam Guyana Morocco2Uruguay
Burkina Faso Haiti Myanmar Venezuela, The
Cameroon Honduras Nicaragua   Bolivaran Rep. of
Chile India2Niger Zambia
Colombia Indonesia Nigeria Zimbabwe2
Costa Rica Israel Pakistan
Côte d'Ivoire Jamaica Peru2
Djibouti Kenya PhilippinesDominican Republic Madagascar Senegal
Ecuador Maldives Sri Lanka
(c) Observer Governments (31)
Algeria Nepal
Andorra Russian Federation
Azerbaijan Samoa
Bahamas Sao Tome and PrincipeBelarus Saudi Arabia
Bhutan Seychelles
Bosnia and Herzegovina Sudan
Cambodia Tajikistan
Cape Verde TongaEquatorial Guinea Ukraine
Ethiopia Uzbekistan
Former Yugoslavia Republic Vanuatu
Holy See Vietnam
Kazakstan Yemen
Laos Yugoslavia – Fed. Rep. of
Lebanon
(d) Observer International Organizations (6)
3
World Customs Organization UNCTAD IADB
IMF ACP World Bank
                                                     
3 These organizations now have official observer status following Agreement in the Committee
(G/VAL/M/5) and Agreements between the World Bank and the IMF with the WTO (WT/L/195).G/VAL/W/124
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II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION
Chairperson: Mr. Ivan Lee (Hong Kong, China)
III. MEETINGS OF THE COMMITTEE
During the reporting period, the Committee has held [three] formal meetings.  The meeting on
28 February (G/VAL/M/34) was chaired by Mr. Raimundas Karoblis (Lithuania);  the meeting on
23 May, 22 July, [and 6 October 2003] (G/VAL/M/35) was chaired by Mr. Karoblis and Mr. Ivan Lee
(Hong Kong, China);  [and the meeting on 6 Octobe r 2003 (G/VAL/M/36 to be issued) was chaired by
Mr. Lee. ]
IV. NATIONAL LEGISLATION PRESENTED
(a) Texts of national legislation
Article 22  of the Agreement requires each Memb er to inform the Committee of any changes in
its laws and regulations relevant to the Agreem ent and in the administration of such laws and
regulations.  At its first meeting, on 12 May 1995, the Committee agreed on procedures for the
notification of national legislation (G /VAL/M/1, paragraphs 29-35, 71 and 72).
During the reporting period, the following communications and texts have been submitted:
Armenia (G/VAL/N/1/ARM/1)
Australia (G/VAL/N/1/AUS/2)
Bolivia (G/VAL/N/1/BOL/1)China (G/VAL/N/1/CHN/2 and 3)
Morocco (G/VAL/N/1/MAR/2)
Thailand (G/VAL/N/1/THA/1)
(b) Checklist of issues
At its first meeting, on 12 May 1995, the Committee agreed on procedures for the submission of
a checklist of issues (G/VAL/M/1, paragraphs 36-39).  The checklist of issues is contained in G/VAL/5.
During the reporting period, the following communications have been submitted:
Armenia (G/VAL/N/2/ARM/1)
Brunei Darussalam (G/VAL/N/2/BRN/1)
(c) Examination of national legislation
At its meeting of 23 May 2003, the Committee pursued its examination of various
communications and implementing legislations.  The Committee agreed to conclude the examination of
amendments to Australia's legislation, and the legi slation 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 the next meeting.
[At the 6 October 2003 meeting, the Committee concluded the examination of the legislations
of …..;  the examination of the legislati on of …were still underway.  To be updated.].G/VAL/W/124
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(d) Information on the application of the Committee Decisions
Information on the application of the Decision on the Treatment of Interest Charges in the
Customs Value of Imported Goods and of paragra ph 2 of the Decision on the Valuation of Carrier
Media Bearing Software for Data Processing Equipm ent (G/VAL/5), made available by Members, was
summarized in documen ts G/VAL/W/5/Rev.13.
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OF THE TEXT OF
THE AGREEMENT
At its first meeting on 12 May 1995, the Committee adopted the Decisions relating to the
interpretation of the Agreement, which had previously been adopted by the Tokyo Round Committee
(G/VAL/M/1, paragraphs 66-67).  The decisions were reproduced in document G/VAL/5.  No new
decisions relating to the interpretation of the Agreement were adopted during the reporting period.
VI. OTHER DECISIONS TAKEN BY THE COMMITTEE
At its first meeting on 12 May 1995, the Committee adopted other Decisions which had been
previously adopted by the Tokyo Round Committee.   These Decisions are reproduced in document
G/VAL/5.  The Committee also adopted  Decisions that were referred by the Ministers at Marrakesh to
the Committee.  The texts of the decisions are c ontained in document G/VAL/1. During the reporting
period, the Committee adopted a Decision granting a reservation to maintain a system of minimum
values in accordance with paragra ph 2, Annex III to Sri La nka (G/VAL/53);  and an extension of the
delay period in accordance with paragraph 1, Annex III to the United Arab Emirates (G/VAL/55).
VII. TECHNICAL ASSISTANCE
The Committee took stock of the seminar on technical assistance and capacity-building which
was held on 6-7 November 2002 and agreed to continue to discuss the follow-up to this work, in light
of its work programme on the matter (G/VAL/W/82/Rev.1).
VIII.  REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION
At the May meeting, the representative of the World Customs Organization (WCO) presented a
report on the Sixteenth Session of the Technical Committee on Customs Valuation which was held in
two separate weeks, from 26 – 28 February 2003 and from 28 April – 2 May 2003.  The representative
introduced the Technical Committee's response (G/VAL/ 54) to the Terms of Reference provided by the
WTO Committee with respect to the latter's work on paragraph 8.3 of the Decision on Implementation-
Related Issues and Concerns.
The Committee on Customs Valuation took note of these reports and expressed appreciation for
the continued valuable work of the Technical Committee.
IX. CONSULTATION AND DISPUTE SETTLEMENT
During the period under consideration, Guatemala requested consultations with the
Government of Mexico pursuant to Article 4 of the Understanding on Rules and Procedures
Governing the Settlement of Disputes (DSU), Article XXIII of the General Agreement on Tariffs and
Trade 1994 (GATT 1994), Article 19 of the Agreemen t on Implementation of Article VII of the
General Agreement on Tariffs and Trade 1994 (Agreement on Customs Valuation) and Article 19 ofthe Agreement on Agriculture (G/VAL/D/7).G/VAL/W/124
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X. ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS
[The Committee adopted its annual report to th e Council for Trade in Goods in accordance with
the requirements of Article 23 of the Agreement (G/L/XX).  In addition, the Committee adopted its
report to the Council for Trade in G oods on China's Transitional Review.]G/VAL/W/124
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ANNEX I
Information on National Legislation
Below are listed the references of the documents1 containing national laws, regulations etc. and
replies to the Checklist of Issues received from Members.
Member National legislation Replie s to the Checklist of Issues
Albania G/VAL/N/1/ALB/1
Armenia G/VAL/N/1/ARM/1 G/VAL/N/2/ARM/1
Argentina VAL/1/Add.22 + Suppl. 1-4 +
Suppl.2/Rev.1
G/VAL/N/1/ARG/1VAL/2/Rev.2/Add.4
Australia VAL/1/Add.14 + Suppl.1-4
G/VAL/N/1/AUS/1 – 2VAL/2/Rev.1/Add.12 + Suppl.1
Bolivia G/VAL/N/1/BOL/1
Botswana VAL/1/Add.16 (not notified under
WTO)Not received
Brazil VAL/1/Add.20 + Suppl.1
G/VAL/N/1/BRA /1, 2, and 3VAL/2/Rev.2/Add.3
Brunei Darussalam G/VAL/N/1/BRN/1 G/VAL/N/2/BRN/1
Bulgaria G/VAL/N/1/BGR/1-2 G/VAL/N/2/BGR/1
Burkina Faso G/VAL/N/1/BFA/1
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
China G/VAL/N/1/CHN/1, 2, and 3 G/VAL/N/2/CHN/1
Colombia G/VAL/N/1/COL/1 G/VAL/N/2/COL/1
Costa Rica G/VAL/N/1/CRI/1 G/VAL/N/2/CRI/1
Côte d'Ivoire G/ VAL/N/1/CVI/1
Croatia G/VAL/N/1/HRV/1 G/VAL/N/2/HRV/1
Cuba G/VAL/N/1/CUB/1 G/VAL/N/2/CUB/1
Cyprus VAL/1/Add.26
G/VAL/N/1/CYP/2VAL/2/Rev.2/Add.7
Czech Rep. VAL/1/Add.18 + Suppl.1/ Corr.1-2
G/VAL/N/1/CZ E/1, 2, and 3VAL/2/Rev.1/Add.15 + Suppl.1
G/VAL/N/2/CZE/1
Dominica G/VAL/N/1/DMA/1
Dominican Rep G/VAL/N/1/DOM/1
Estonia G/VAL/N/1/EST/1 G/VAL/N/2/EST/1
EEC VAL/1/Add.2 + Suppl.1-13 + Suppl.1
G/VAL/N/1/EEC/1/Rev.1VAL/2/Rev.1/Add.6
Fiji G/VAL/N/1/FJI/1 G/VAL/N/2/FJI/1
Gabon G/VAL/N/1/GAB/1
Georgia G/VAL/N/1/GEO/1
Hong Kong China VAL/1/Add.9
G/VAL/N/1/HKG/1Not applicable
Hungary VAL/1/Add.6
G/VAL/N/1/HUN/1VAL/2/Rev.1/Add.4
                                                     
1 Documents beginning with "VAL" are documents issued under the Tokyo Round Committee on Customs ValuationG/VAL/W/124
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Member National legislation Replie s to the Checklist of Issues
Iceland G/VAL/N/1/ISL/1 G/VAL/N/2/ISL/1
India VAL/1/Add.24 + Suppl.1
G/VAL/N/1/IN D/1, 2, and 3VAL/2/Rev.2/Add.6
G/VAL/N/2/IND/1 + Corr.1
Indonesia G/VAL/N/IDN/1 G/V AL/N/2/IDN/1+Corr.1
Israel G/VAL/N/1/ISR/1+Corr.1 G/VAL/N/2/ISR/1
Jamaica G/VAL/N/1/JAM/1 G/VAL/N/2/JAM/1
Japan VAL/1/Add.7
G/VAL/N/1/JPN/1VAL/2/Rev.1/Add.8
G/VAL/N/2/JPN/1
Jordan G/VAL/N/1/JOR/1 G/VAL/N/2/JOR/1
Kenya G/VAL/N/1KEN/1 G/VAL/N/2/KEN/1
Korea, Rep.of VAL/1/Add.19 + Suppl.1-4+
Suppl.2/Corr.1-2 + Suppl.3/Corr.1
G/VAL/N/1/KOR/1-2VAL/2/Rev.2/Add.1 + Suppl.1
Kyrgyz Rep G/VAL/N/1/KGZ/1 G/VAL/N/2/KGZ/1
Latvia G/VAL/N/1/LVA/1 G/VAL/N/2/LVA/1
Lesotho VAL/1/Add.21 + Suppl.1 (not notified
under WTO)VAL/2/Rev.2/Add.2
Liechtenstein G/VAL/N/1/ LIE/1 Not applicable
Lithuania G/VAL/N/1/LTU/1
Macao G/VAL/N/1/MAC/1 Not applicable
Madagascar G/VAL/N/1/MDG/1
Malawi VAL/1/Add.27
G/VAL/N/1/MWI/1
Malaysia G/VAL/N/1/MYS/1 G/VAL/N/2/MYS/1
Malta G/VAL/N/1/MLT/1 G/VAL/N/2/MLT/1
Mauritius G/VAL/N/MUS/1 G/VAL/N/2/MUS/1
Mexico VAL/1/Add.25 + Suppl.1-3
+ Suppl.1/Rev.1 (not notified under
WTO)VAL/2/Rev.1/Add.10
VAL/2/Rev.2/Add.8
Moldova G/VAL/N/1/MDA/1 G/VAL/N/2/MDA/1
Morocco G/VAL/N/1/MA R/1/Rev.1+Corr.1
G/VAL/N/1/MAR/2G/VAL/N/2/MAR/1-2
Namibia G/VAL/N/1/NAM/1
New Zealand VAL/1/Add.12 + Suppl.1
G/VAL/N/1/NZL/1VAL/2/Rev.1/Add.10
Norway VAL/1/Add.11 +Corr.1 + Suppl.1-2
G/VAL/N/1/NOR/1VAL/2/Rev.1/Add.7
Oman G/VAL/N/1/OMN/1 G/VAL/N/2/OMN/1
Pakistan G/VAL/N/1/PAK/1
Panama G/VAL/N/1/PAN/1 G/VAL/N/2/PAN/1
Philippines G/VAL/N/1/PHI/1
Poland VAL/1/Add.28
G/VAL/N/1/POL/1-2G/VAL/N/2/POL/1
Romania VAL/1/Add.8 +  Suppl.1-2
G/VAL/N/1/ROM/1-2VAL/2/Rev.1/Add.9
Senegal G/VAL/N/1/SEN/1
Separate Customs
Territory of Taiwan
Penghu, KinmenG/VAL/N/1/TPKM/1 G/VAL/N/2/TPKM/1-2G/VAL/W/124
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Member National legislation Replie s to the Checklist of Issues
and Matsu (Chinese
Taipei)
Singapore G/VAL/N/1/SGP/1 G/VAL/N/2/SGP/1
Slovak Rep VAL/1/Add.18 + Suppl.1/ Corr.1-2
G/VAL/N/1/SVK/1-2VAL/2/Rev.1/Add.15+ Suppl.1
Slovenia G/VAL/N/1/SVN/1-2 G/VAL/N/2/SVN/1
South Africa VAL/1/A dd.15 + Corr.1 + Suppl.1-3
G/VAL/N/1/ZAF/1VAL/2/Rev.1/Add.13
Suriname G/VAL/N/1/SUR/1
Swaziland G/VAL/N/2/SWZ/1
Switzerland VAL/1/Add.5
G/VAL/N/1/CHE/1Not applicable
Thailand G/VAL/N/1/THA/1
Trinidad and
TobagoG/VAL/N/1/TTO/1 G/VAL/N/2/TTO/1
Tunisia G/VAL/N/1/TUN/1
Turkey VAL/1/Add.29
G/VAL/N/1/TUR/1-2G/VAL/N/2/TUR/1
United States VAL/1/ Add.1 +  Suppl.1-5
G/VAL/N/1/USA/1VAL/2/Rev.1/Add.1
Uruguay G/VAL/N/1/URY/1 G/VAL/N/2/URY/1
Venezuela G/VAL/N/1/VEN/1 G/VAL/N/2/VEN/1
Zambia G/VAL/N/1/ZMB/1
Zimbabwe VAL/1/Add.23
G/VAL/N/1/ZWE/1VAL/2/Rev.2/Add.5
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