G/VAL/Q/EU/1  
 
21 October  2021 
(21-7965) Page: 1/2 
Committee on Customs Valuation  Original: English  
 
NOTIFICATION UNDER ARTICLE 22 OF AGREEMENT  ON IMPLEMENTATION  
OF ARTICLE VII OF THE GENERAL AGREEMENT  
ON TARIFFS AND TRADE  1994  
QUESTIONS  FROM CHINA  TO THE EUROPEAN UNION  
REGARDING DOCUMENT G/VAL/ N/1/EU/11 
EUROPEAN UNION 
The following communication, dated 21 October 2021, is being circulated at the request of the 
delegation of China . 
 
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China  would like to thank the European Union for the notification of its customs valuation  legislation 
contained in document G/VAL/N/1/EU/1.  As a follow -up to this notification,  China  would like to ask 
the European Union to respond to the  following questions:  
 
Question 1:  
 
Article 142 Paragraph 6 of the Commission Implementing Regulation (EU) provides that the customs 
value of certain perishable goods as referred to in Annex 23 -02 imported on consignment may be 
directly determined in accordance with Deductive m ethod, based on unit prices notified to the 
Commission by the Member States and disseminated by the Commission, which will be valid for a 
period of 14 days.  
 
However, according to CVA, the primary basis for customs value should be "transaction value"; 
alternative methods should be used in sequential order where transaction value method is not 
applicable; the use of arbitrary or fictitious customs value should be precluded.  
 
Could the EU explain : 
 
1. Whether Article 142 of the Commission Implemen ting Regulation (EU) is in conformity with 
the general principles and relevant provisions of the CVA;  
2. How the unit prices of the perishable goods (disseminated by the Commission)  are formulated?  
 
Question 2 : 
 
Article 135 Paragraph 5 of the Commission Implementing Regulation (EU) stipulates that "For the 
purposes of Article 71(1)(b)(iv) of the Code, the costs of research and preliminary design sketches 
shall not be included in the customs value. " 
 
According to A rticle 8.1(b)(iv) of the CVA: "In determining the customs value under the provisions 
of Article 1 , there shall be added to the price actually paid or payable for the impo rted 
goods:…(b)  the value, apportioned as appropriate, of the following goods and services where 
supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection 
with the production and sale for export of the imported go ods, to the extent that such value has not 
 
1 Previous documents containing questions or replies pertaining to the customs legislation of the 
European Union were issued in the G/VAL/W series as follows: G/VAL/W/51, G/VAL/W/ 66, G/VAL/W/3 74 and 
G/VAL/W/37 7. G/VAL/Q/EU/1  
 
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  been included in the price actually paid or payable:…(iv) engineering, development, artwork, design 
work, plans and sketches, undertaken elsewhere than in the country of importation and necessary 
for the productio n of the imported goods ".  
 
Could the EU explain the difference between "research and preliminary design " referred to 
Article  135 Paragraph 5 of the CIR and "development and design work " as specified in 
Article  8.1(b)(iv) of the CVA, and whether Article 135 Paragraph 5 of the CIR implements any 
provisions of the CVA?  
 
Question 3 ： 
 
Article 136 Paragraph 3 of the Commission Implementing Regulation (EU) stipulates that "If royalties 
or licence  fees relate partly to the goods being valued and partly t o other ingredients or component 
parts added to the goods after their importation, or to post -importation activities or services, an 
appropriate adjustment shall be made. " 
 
Can "appropriate adjustment " here be understood as apportionment of royalties and licence  fees? 
However, apportionment of Article 8 adjustment is expressly provided for in Article 8.1 (b) while 
Article 8.1 (c) remains silent in this point.  Could the EU explain whether Article 136 Paragraph  3 of 
the CIR implements any provisions of the C VA? 
 
Question 4 ： 
 
Article 73 paragraph 1 of the UCC stipulates that "The customs authorities may, upon application, 
authorize  that the following amounts be determined on the basis of specific criteria, where they are 
not quantifiable on the date on which the customs declaration is accepted: " 
 
Could the EU explain or clarify:  
 
1. Whether Article 73 of the UCC is in accordance with the principles of the CVA;  
2. Whether Article 73 implements any provisions of the CVA;  
3. Whether a uniform procedure is in place for the determination of "specific criteria " in each 
cases;  
4. The treatmen t applicable when the actual amounts deviate largely from the amounts 
determined based on "specific criteria "? 
 
 
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