. /.WORLD TRADE
ORGANIZATIONG/VAL/W/110
29 October 2002
(02-5956)
Committee on Customs Valuation Original:  English
IMPLEMENTATION-RELATED ISSUES AND CONCERNS WITH RESPECT TO THE
CUSTOMS VALUATION AGREEMENT (DOHA MINISTERIAL DECISION 8.3)
Identifying and Assessing Practical Means to Address
Concerns about the Truth and Accuracy of the Declared Value
Proposals by Canada
I. INTRODUCTION
At Doha, Ministers agreed to Decision 8.3, which:
“underlines the importance of strengthening coop eration between the customs administrations of
Members in the prevention of customs fraud.  In this regard, it is agreed that further to the 1994
Ministerial Decision Regarding Cases Where Customs Administrations Have Reasons to Doubt the
Truth or Accuracy of the Declared Value, when the customs administration of an importing Member
has reasonable grounds to doubt the truth or accuracy of the declared value, it may seek assistancefrom the customs administration of an exporting Member on the value of the goods concerned.   In
such cases, the exporting Member shall offer cooperation and assistance, consistent with its domestic
laws and procedures, including furnishing information on the export value of the good concerned.
Any information provided in this context shall be treated in accordance with Article 10 of the Customs
Valuation Agreement.  Furthermore, recognizing the legitimate concerns expressed by the customs
administrations of several importing Members on th e accuracy of the declared value, the Committee
on Customs Valuation is directed to identify and assess practical means to address such concerns,
including the exchange of information on export values and to report to the General Council by the
end of 2002 at the latest.”
The objective for this Committee is clear: identify and assess practical means to address the
concerns expressed in the Ministerial Decision. To this end, Canada would like to put forward some
proposals to be considered by the Committee.
In developing these proposals, Canada has reflected the parameters found in the Ministerial
Decision, especially the following:
• Importing members “may” seek assistance .  While assistance may help to address the
problem in some specific cases, it should not be used as a matter of routine, as a replacementfor good management practices, or as a substitute for implementing effectively the Customs
Valuation Agreement.  If seeking such assistance, the requesting administration should
demonstrate that it has exhausted all avenues internally to satisfy its need for information
(e.g., by ensuring that the importer has made all relevant documentation available; that allcommercial documentation has been examined; and, that the reason for doubt has been clearly
identified).
• The confidentiality provisions of Article 10  will apply to any information provided.G/VAL/W/110
Page 2
• Cooperation and assistance shall be offered consistent with domestic laws and procedures.
Proposals:
In order to fulfil its task under Decision 8.3, the Customs Valuation Committee could, in
Canada’s view, assess the following practical means to address concerns about the truth and accuracy
of the declared value.
1. Examination of techniques or processes used by the Customs administration in conducting a
valuation review.  In this regard, the Committee should be aware that the Secretariat of the World
Customs Organization (WCO) has been working on a Self-Assessment Guide for the
consideration of the Technical Committee on Customs Valuation.  The Guide would be
essentially a “check-list” that would outline the various prior steps that would need to be taken to
ensure that any such request for assistance only be made following thorough examination by theimporting Member.
2. Guidelines on the development and use of a valuation database as a risk assessment tool.  Canada
understands that the WCO is developing such Guidelines.
3. Provision of focused technical assistance and capacity building efforts to those countries that are
facing difficulties in ensuring compliance with the Customs Valuation Agreement.
4. Exchange of information arrangements with key exporting countries.  Distinguishing those cases
of fraud from other cases where under-valuation (not deliberate) is suspected will assist infostering exchange of information arrangements.
5. Prioritize reforming and modernizing the customs administration to: promote compliance; allow
for more effective post-release verification processes; adopt risk-management processes; and,
disseminate customs valuation policies and procedures.
Canada would submit that while the Customs Valuation Committee can identify practical
means to address concerns about the truth or accuracy  of the declared value, the further examination
of such practical means would be more usefully undertaken by the Technical Committee on Customs
Valuation (TCCV).
Conclusion:
Other practical means to address concerns about the truth and accuracy of the declared value
might be available.  Canada believes that there is no one solution that will address the concerns
expressed but rather it may be necessary for us to be more creative and recommend a combination of
measures.
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