RESTRICTED
WORLD TRADE G/VAL/M/5
3June 1997
ORGANIZATION(97-2319)
Committee onCustoms Valuation
MINUTES OFTHE MEETING OF25APRIL 1997
CHAIRMAN: Mr.P.Palec ka(Czech Republic)
Theagenda proposed forthemeeting, circulated inWTO/AIR/572, wasadopted asfollows:
1. Observer status ofinternational intergovernmental organizations (G/VAL/W/16)
2. Report onthework oftheTechnical Committee onCustoms Valuation
3. Information onimplementation andadministration oftheAgreement
(a) Notification ofnational legislation
- India (G/VAL/N/1/IND/2; G/VAL/W/8; G/VAL/W/14)
- Mexico (VAL/1/Add.25/Suppl.1, 2and3;VAL/2/Rev.2/Add.8)
- Fiji(G/VAL/N/1/FJI/1; G/VAL/N/2/FJI/1)
- Bulgaria (G/VAL/N/1/BGR/1)
- Liechtenstein (G/VAL/N/1/LIE/1)
(b) Notification that national legislation under theTokyo Round Customs Valuation
Agreement remained valid under the WTO Customs Valuation Agreement
(G/VAL/N/1/ARG/1)
(c) Notifications made bydeveloping country members (G/VAL/2/Rev.5)
4. Information ontheapplication ofDecisions oftheCommittee onCustoms Valuation
(G/VAL/W/5/Rev.2)
5. Valuation ofsoftware imported bysatellite (G/VAL/W/12)
6. Technical assistance
(a) Information ontechnical assistance (G/VAL/8/Rev.1)
(b) Article 20.3 technical assistance activities
7. Useoftheterm "entretenimiento" intheInterpretative Note toArticle 1oftheAgreement
(G/VAL/W/15; G/VAL/W/17)
8. Other business
(a) Date forthenext meeting
9. Election ofofficersG/VAL/M/5
Page 2
1. Observer status ofinternational intergovernmental organizations (G/VAL/W/16)
1.1 The Chairman noted that document G/VAL/W/16 contained alistoftheinternational
intergovernmental organizations having observer status onanadhocbasis intheCommittee onCustoms
Valuation andothers whose requests forobserver status were pending. Herecalled thatatitsmeeting
of18July 1996, theGeneral Council approved the"Guidelines onObserver Status forInternational
Intergovernmental Organisations" (Annex 3ofdocument WT/L/161). However there wastheissue
ofthestatus oftheWorld Bank andtheInternational Monetary Fund which hadbeen leftoutstanding
pending thefinalization oftheAgreements between theWorld Bank andtheIMF with theWTO. These
were resolved only inDecember 1996.
1.2 Heconsidered thattheCommittee waspresently intheposition togrant observer status tothose
organizations which hadhadobserver status onanadhocbasis, namely theUnited Nations Conference
onTrade andDevelopment andtheWorld Customs Organization. Herecalled thatthese organizations
were alsoobservers intheTokyo Round Committee onCustoms Valuation. Concerning thepending
applications oftheIMF andtheWorld Bank, hedrew attention todocument WT/L/195 which contained
theAgreements between theIMF andtheWorld Bank with theWTO. These Agreements provided
thattheWTO should invite theWorld Bank andtheIMF tosend amember oftheir staff tothemeetings
ofWTO bodies. Itappeared, therefore, thatobserver status was already being granted tothese
organizations byvirtue ofthese Agreements andherequested thattheCommittee takenoteofthisfact.
1.3 Headded that, aswasindicated inG/VAL/W/16, therequests forobserver status from the
African, Caribbean andPacific (ACP) Group andtheInter-American Development Bank (IADB) had
notyetbeen considered. These twoorganizations hadbeen granted observer status intheCommittee
onRules ofOrigin, another body dealing with customs related matters, andtheCommittee onMarket
Access. Inlight ofthisandonthebasis oftheir applications, heproposed thattheCommittee also
grant these twoorganizations observer status.
1.4 Therepresentative ofAustralia noted thatdiscussions were stillon-going intheCouncil on
Trade inGoods ontheobserver status ofanumber ofinter-governmental organizations, including the
ACP. Herdelegation therefore considered thatadecision onthestatus oftheACP andtheIADB be
deferred until adecision wastaken intheCTG.
1.5 Therepresentative ofCôte d'Ivoire noted thathercountry wasamember oftheACP. Although
notspeaking onbehalf oftheACP, shenoted thattheACP hadalready been granted observer status
intheCommittee onRules ofOrigin which dealt with customs matters. Shedidnotunderstand the
purpose oflodging areservation onitsobserver status while consideration wason-going intheCTG,
since there were nocustoms matters being considered inthatbody. Sheurged thatobserver status
begiven totheACP inthisCommittee.
1.6 Therepresentative oftheEuropean Communities supported thestatement byCôte d'Ivoire
andconsidered thatitwasonly intheinterest oftheCommittee onCustoms Valuation thattheACP
begranted observer status.
1.7 Therepresentative ofAustralia saidthatherdelegation 'sconcern wasprocedural, noting the
different responses towards observers indifferent bodies. However herdelegation didnotinsist on
deferring adecision ontheACP inthisCommittee.
1.8 TheCommittee took note ofthestatements made andagreed togrant observer status tothose
organizations which hadhadobserver status onanadhocbasis, namely theUnited Nations Conference
onTrade andDevelopment andtheWorld Customs Organization, aswellastotheACP andtheIADB.G/VAL/M/5
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2. Report onthework oftheTechnical Committee onCustoms Valuation
2.1 Theobserver from theWCO presented, onbehalf ofChairman Mr.P.R.V. Ramanan (India),
areport onthework oftheFourth Session oftheTechnical Committee onCustoms Valuation, held
inBrussels from 3to7March 1997. Henoted thatattendance atthissession wasvery good with many
Members intransition toimplementation oftheAgreement present.
2.2 Under Intersessional Developments, theobserver reported thattheTechnical Committee had
been informed oftheresults ofthe89th Session oftheWCO Council, held inBrussels on
6December 1996. TheCouncil hadmettoexamine thequestion ofthefuture location oftheWCO
Headquarters. After considering thefinancial, legal, strategic andfinancial aspects ofanumber of
proposals, theCouncil decided thattheHeadquarters would remain inBrussels, inanewbuilding which
wastobecompleted byJuly1998. TheCommittee wasalsoinformed about thecontinuing development
oftheWCO 'scustoms reform andmodernization programme, akeyactivity setoutintheStrategic
Plan adopted bytheCouncil. The Programme isacomprehensive strategy tohelp Member
administrations improve their customs administration tomeet thechallenges ofthemodern commercial
environment. Inaddition tofocusing oncustoms matters, theprogramme involved consideration of
thetrade, economic andfiscal aspects oftheenvironment inwhich customs operated. Itwasbeing
developedinconsultationwithMemberadministrationsaswellasanumberofinternationalorganizations,
including UNCTAD, theIMF, theWorld Bank andtheWTO. Finally, theCommittee wasinformed
thatthethird edition ofthe"Brief Guide totheCustoms Valuation Code" which incorporated the
amendments introduced intheUruguay Round wasnow available, andrevisions ofthe"Customs
Valuation Compendium" andthe"Valuation Training Course" would beavailable soon.
2.3 UnderTechnicalAssistance,henotedthattheTechnicalCommitteehadtakennoteofinformation
document 41.091 which updated theinformation onseminars andtraining courses organized onthe
WTO Valutation Agreement andtheactivities oftheWCO inthisarea.
2.4 Theaimofeach ofthese activities hadbeen toassist Members tounderstand thechanges
necessary toimplement theWTO Valuation Agreement, toidentify thetasks thathadtobecarried
outandtodevelop their action plans forimplementation by2000 orbefore. These technical assistance
activities went beyond pure valuation issues andencouraged Members to,inconjunction withthechange
totheir valuation system, take theopportunity toreview allaspects oftheir legislation, procedures
andadministration tobring them intolinewith bestpractices inusearound theworld. Topics examined
during thecourse ofthese assistance activities included facilitation, theuseofcomputers, declaration
procedures, adoption ofriskmanagement techniques andpost clearance audit techniques. Members
were encouraged toadopt practices which reduced theburden onhonest traders andwhich focused
ontheareas ofgreatest compliance andrevenue risk. Presentations were alsomade totheCommittee
bytheSecretariat which explained theWCO 'scustoms reform andmodernisation programme andthe
technical assistance provided bytheValuation Directorate inthecontext ofthisprogramme.
2.5 TheWCO representative recalled thattheTechnical Committee haddecided atitsFirst Session
totakeamore active roleinmonitoring newMembers 'progress towards implementation with aview
toidentifying their technical assistance needs. Inthisregard, anew Agenda item, progress reports
onimplementation, hasbeen included aspart ofthetechnical assistance item. Henoted thatthe
Committee hadexamined Document 41.097 which contained information regarding implementation
oftheAgreement provided byChile, Panama andThailand. Panama, although asyetonly anobserver
totheWTO, haddecided tointroduce theWTO Valuation Agreement onaunilateral basis. Thailand
hadannounced itsplans toaccelerate implementation to1January 1998, provided thatthelegislation
could beapproved bythattime. Thedocument alsocontained brief summaries ofrecent andplanned
technical assistance activities bytheWCO andMembers.G/VAL/M/5
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2.6 RegardingTechnicalIssuesCurrentlyBeingConsideredbytheTechnicalCommittee,hereported
asfollows:
(a) Scope oftheterm "control" inArticle 15.4(e): Information document
2.7 Henoted thattheTechnical Committee hadconsidered aninformation document prepared by
theSecretariat which examined theissues associated with theconcept ofcontrol within theterms of
Article 15.4(e) oftheAgreement. This itemhadarisen inthecontext ofconsideration ofcases involving
importations bysoleagents, soleconcessionaires andsoledistributors. Atthecentre ofthediscussion
wastheextent towhich such associations might, incertain situations, result intheestablishment of
"control" andthusrelationship forthepurposes oftheAgreement. Other issues under consideration
includedloanandfinancingarrangementsaswellasdistributionandroyaltyagreements.Afterexamining
thedocument, theCommittee haddecided tore-examine Explanatory Note 4.1with aview toamending
ittoaddressconcernsexpressedbyMembers.AproposednewExplanatoryNote4.1whichincorporated
amendments suggested byMembers would becirculated forconsideration atthe5thSession.
(b) Correlation between paragraphs (c)and(d)ofArticle 8.1oftheWTO Agreement
2.8 TheTechnical Committee hadcontinued itsconsideration ofthistopic. Atthecentre ofthe
discussion wasthequestion ofwhether aroyalty orlicence feewhich failed tomeet therequirements
forinclusion incustoms value under Article 8.1(c) could beincluded incustoms value under Article
8.1(d)when itwasaproceed ofsubsequent resale, disposal oruseaccruing tothevendor. Members
oftheTechnical Committee continued tobedivided intheir position inrelation totheanswer tothis
question. Inanattempt toarrive atacommon position, theTechnical Committee hadinstructed the
Secretariat towork with Members during theintersession with aview todeveloping aninstrument
forconsideration atthenext session.
(c) Warranty charges: Information document
2.9 Hereported thatthistopic arose from thediscussion ofthescope oftheterm maintenance during
theSecond Session. TheTechnical Committee hadexamined aninformation document which included
specific examples ofwarranty situations. TheCommittee made anumber ofproposed amendments
tothedocument which itwould consider atitsnext meeting.
(d) Meaning oftheexpression "related tothegoods being valued": Information document
2.10 TheCommittee hadexamined adraft information document which discussed how aroyalty
and/or licence feemight be"related tothegoods being valued" under Article 8.1(c) oftheAgreement.
TheCommittee suggested anumber ofamendments tothedocument which itwould consider atits
next meeting.
(e) Meaning oftheexpression "condition ofsale": Information document
2.11 TheCommittee hadalsoexamined adraft information document which examined theconcept
ofhow aroyalty and/or licence feemight bepaid asa"condition ofsale" under Article 8.1(c) ofthe
Agreement. TheCommittee hadsuggested anumber ofamendments tothedocument which itwould
consider atitsnext meeting.
2.12 Regarding theitem transmission ofsoftware bysatellite, theCommittee hadexamined copies
ofthecorrespondence between theChairman oftheWTO Committee andtheSecretariat relating to
thisissue. TheCommittee noted thatissues associated with treatment ofelectronic commerce were
being considered intheappropriate forum anddecided toawait theoutcome ofthose considerationG/VAL/M/5
Page 5
before itdidanyfurther work inthisregard. Members noted thatthere also appeared tobesome
confusion regarding thesubject. Thequestion initially raised byColombia related tothetreatment
ofsoftware imported bysatellite initsown right, however, thecomments oftheSecretariat related
tothesituations where atransmission ofsoftware wasclosely related totheimportation ofgoods which
were subject tocustoms valuation.
2.13 Foritsprogramme offuture work, theTechnical Committee would continue itsexamination
ofthescope oftheterm "control" inArticle 15.4(e), therelationship between paragraphs (c)and8(d)
ofArticle 8.1,warranty charges andthemeaning oftheexpressions "related tothegoods being valued"
and"condition ofsale" inArticle 8.1(c). Inaddition, theTechnical Committee would consider proposals
toamend Explanatory Note 4.1andexamine adraft information document which examined freight
equalisation schemes. New Members 'progress towards implementation andtechnical assistance needs
would continue tobeamajor topic ofinterest totheCommittee. TheCommittee alsointended tospend
some time during thenextsession todiscuss thefuture direction ofitswork toensure thatitwasrelevant
totheneeds ofMembers, particularly tothenew signatories totheAgreement.
2.14 TheCommittee hadelected Mr.H.O.Vincente (Argentina) asitsnext Chairman andMr.
M.Kemp (New Zealand) asVice-Chairman. TheFifth Session oftheTechnical Committee would
take place from 6-10October 1997.
2.15 TheCommittee took note ofthereport bytheobserver from theWCO.
3. Information onimplementation andadministration oftheAgreement
3.1 TheChairman explained thatthere were three items tobeconsidered under thisagenda item
andsuggested dealing with each separately.
(a) Notification ofnational legislation
India
3.2 The Chairman recalled thenotification made byIndia and circulated indocument
G/VAL/N/1/IND/2 which concerned amendments totheCustoms Valuation Rules 1988, bringing these
Rules intoconformity with themethod ofdetermination ofcustoms value aslaiddown intheCustoms
Valuation Agreement. AttheApril 1996 meeting oftheCommittee, theUnited States hadposed several
questionsduringthediscussionofIndia'slegislationwhichhadbeencirculatedindocumentG/VAL/W/8.
The responses byIndia hadbeen circulated attheOctober 1996 meeting oftheCommittee and
subsequently indocument G/VAL/W/14. Atthatmeeting itwasagreed torevert tothisitem atthe
present meeting.
3.3 TherepresentativeoftheUnitedStatesexpressinghisdelegation'sappreciationfortheresponses,
remainedconcernedabouttheprovisotoRule9(2)oftheIndianCustomsValuationRuleswhichappeared
tosetforth arbitrary uplifts. Specifically, notwithstanding theright toprovide fortheinclusion for
certain "cif" costs under Article 8.2oftheAgreement onCustoms Valuation, such aninclusion had
tobetiedtoactual costs andcharges. Otherwise such anaction would become contrary toArticle
8.4oftheAgreement asanunacceptable addition totheprice actually paid orpayable. Moreover,
itwould also create anarbitrary orfictitious value contrary toArticle 7.2oftheAgreement. His
delegation wasalsoconcerned bythedescription ofthecircumstances where thesituation arose, as
being formostly casual imports. Hisdelegation therefore sought further andmore specific clarification
astotheso-called specified percentages used foradditions totheprice. First, hisdelegation was
interested inwhat percentages were used andhow they hadbeen calculated andsecond, clarification
thatthismethodology foradditions wasnotused forcommercial shipments.G/VAL/M/5
Page 6
3.4 The representative ofIndia, noting thetechnical nature oftheUSquestions, said thathis
delegation would respond assoon aspossible.
3.5 TheCommittee took note ofthestatements made andagreed torevert tothisitem atthenext
meeting.
Mexico
3.6 TheChairman recalled thatdiscussion onthemodifications thathadbeen introduced toMexico 's
customs legislation hadbeen on-going forseveral years both intheTokyo Round Committee andin
theWTO Committee onCustoms Valuation. These amendments, andMexico 'slegislation hadbeen
circulated indocuments VAL/1/Add.25/Suppl.1, 2,and3.Mexico 'sresponses totheChecklist of
Issues hadbeen circulated indocument VAL/2/Rev.2/Add.8. Headded thatMexico 'slegislation was
alsothesubject ofconsultations pursuant toArticle XXII:1 oftheGATT 1994 andArticle 4ofthe
Understanding onRules andProcedures Governing theSettlement ofDisputes, aswell asinthe
Committee onRegional Trade Agreements.
3.7 Therepresentative ofNorway recalled thathisGovernment hadjoined theconsultations with
Mexico thathadbeen initiated bytheEuropean Communities under theDispute Settlement Body (DSB)
ontheMexican customs valuation legislation. Theconsultations dealt with what appeared tobea
discriminatory practice oftheuseof"cif" and"fob" respectively: the"fob" system being granted
only togoods from NAFTA countries while the"cif", entailing ahigher basis forthecalculation of
customs, applying toother WTO Members. While notwishing toopen thedebate onthesubstance
oftheissue, hewished torequest through theChairman thatthequestions thatwere puttoMexico
during theconsultations beanswered inwriting. Theconsultations were held inSeptember 1996 and
therequest forwritten responses wasmade atthattime. This should have given theMexican authorities
sufficient time torespond. Hereserved hisdelegation 'srights with respect totheMexican customs
valuation legislation andwished toseethisitem ontheCommittee 'sagenda atitsnext meeting.
3.8 Therepresentative ofSwitzerland stated thathisGovernment hadalsojoined theconsultations
with Mexico, initiated bytheEuropean Communities under theDSB. Hisdelegation alsorequested
thatwritten responses beprovided byMexico andsupported theproposal tokeep thisitem onthe
Committee 'sagenda foritsnext meeting. Headded thathisdelegation wasaware thatMexico was
using the"fob" system, notonly inthecaseofproducts originating from NAFTA, butalsoforproducts
originating from anumber ofother freetrade areas towhich Mexico wasaparty. Hetherefore requested
thatMexico include allrelated, relevant information inthewritten responses. This would assist his
delegation toassess thesituation concerning theMexican customs valuation legislation. Hisdelegation
reserved itsrights onthisissue andremained open toanybilateral discussions with Mexico onthis
issue.
3.9 Therepresentative oftheEuropean Communities supported thestatements made byNorway
andSwitzerland.
3.10 Therepresentative ofMexico stated thatthismatter hadbeen discussed bythisCommittee on
anumber ofoccasions over anumber ofyears. Hisdelegation hadgiven aseries ofresponses when
theNAFTA wasbeing examined, andattheinitiative oftheEuropean Communities, hadbegun aseries
ofconsultations under Article XXII.1 oftheGATT 1994 under theDSB. Hedidnotwish toaddto
these responses; anyreference atthismeeting totheprocess ofquestions andawaited answers would
beaviolation oftheconfidential nature oftheconsultations inprogress. Hisdelegation hadnocomment
tomake before thisCommittee inlight oftheconfidentiality required under theDSB process.G/VAL/M/5
Page 7
3.11 Therepresentative ofSwitzerland saidhisdelegation wished tonotethatithadnotyetreceived
certain information andthat, therefore, itcould nothave afullunderstanding oftheMexican legislation.
3.12 Therepresentative ofKorea indicated hisdelegation 'sinterest inthematter andrequested a
detailed explanation, including ofthelegal issues, forfulltransparency andabetter understanding.
3.13 TherepresentativeofMexicosuggestedthatdelegationswishingmoreinformationonthematter,
refer totheminutes ofprevious meetings oftheCommittee. These would indicate thathisdelegation
hadconsistently maintained fulltransparency onthismatter.
3.14 TheCommittee took note ofthestatements made andagreed torevert tothisitem atthenext
meeting.
Fiji
3.15 TheChairmandrewMembers'attentiontothenotificationmadebyFijiwhichhadbeencirculated
indocument G/VAL/N/1/FJI/1. Thisdocument contained thenewGATT Valuation Legislation enacted
inParliament inNovember 1996. Healsonoted thatFijihadsubmitted itsresponses tothechecklist
ofissues which hadbeen circulated indocument G/VAL/N/2/FJI/1.
3.16 TherepresentativeoftheEuropeanCommunitiesvoicedhisdelegation'ssatisfactioninreceiving
thecomprehensive notification andwould beexamining it.
3.17 TheCommittee agreed toconclude examination ofthislegislation.
Bulgaria
3.18 TheChairman drew Member 'sattention tothenotification made byBulgaria which hadbeen
circulated indocument G/VAL/N/1/BGR/1. This document contained theRegulation oftheCouncil
ofMinisters No.39of8March 1996 onthedetermination ofcustoms value ofgoods imported inthe
Republic ofBulgaria, theExcerpt from Instruction No.2oftheMinister ofFinance of12March 1996,
concerning theparticulars ofthecustoms value, andtheDeclarations ofParticulars relating tocustoms
value DCV-1, andDCV-2.
3.19 TheCommittee agreed toconclude examination ofthislegislation.
Liechtenstein
3.20 TheChairman drew theCommittee 'sattention tothenotification made byLiechtenstein which
hadbeen circulated indocument G/VAL/N/1/LIE/1.
3.21 TheCommittee agreed toconclude examination ofthislegislation.
(b) Notification that national legislation under theTokyo Round Customs Valuation
Agreement remained valid under theWTO Customs Valuation Agreement
3.22 TheChairman recalled thatatitsmeeting inMay 1995, theCommittee hadagreed onprocedures
forthenotificationandcirculationofnationallegislationforMemberswhowereTokyoRoundsignatories
andwhose legislation hadalready been examined (paragraph 34(1) and35ofG/VAL/M/1). Since
thelastmeeting, oneMember, namely Argentina, hadsubmitted acommunication indicating thatits
legislation notified under theTokyo Round Customs Valuation Agreement remained valid under the
WTO Customs Valuation Agreement (G/VAL/N/1/ARG/1).G/VAL/M/5
Page 8
3.23 TheCommittee took note oftheinformation.
3.24 TheChairman urged those Members who hadnotnotified their legislation, aswell astheir
replies tothechecklist ofissues, tosubmit therequired notifications assoon aspossible.
(c) Notifications made bydeveloping country Members
3.25 TheChairman noted thatdocument G/VAL/2/Rev.5 contained alistofdeveloping country
Members thathadinvoked special provisions available tothem under Article 20.1 and20.2 andunder
paragraphs 2,3and4ofAnnex IIIoftheCustoms Valuation Agreement. Thedocument alsolisted
thedeveloping country Members affected bytheDecision on"Continued Application under theWTO
Customs Valuation Agreement onInvocations ofProvisions forDeveloping Countries forDelayed
Application andReservations Under theCustoms Valuation Agreement 1979" (WT/L/38).
3.26 Headded thatthere were now 51developing countries thathadinvoked thespecial provisions
under Article 20.1, which allowed them todelay application oftheAgreement foraperiod notexceeding
fiveyears. Herecalled thatthisdelay period wasgiven inorder toallow developing countries the
time necessary tobring their systems intoconformity with theWTO Agreement. For27ofthese
countries, thedelay period would expire on1January 2000. That meant thattheperiod during which
thistransition should bemade washalfover. Foranother 20developing countries, theendoftheyear
2000wouldsignaltheexpirationoftheirdelayperiod.Heconsidereditappropriatetoreminddeveloping
countries thatthey should beusing thistime toprepare forimplementation oftheWTO Agreement,
and,atthesame time, notethatArticle 20.3, alsocontained provisions forfurnishing technical assistance
onarequest basis. Article 20.3 stated thatdeveloped country Members should furnish todeveloping
countries thatsorequest, programmes oftechnical assistance which may include, inter alia,training
ofpersonnel,assistanceinpreparingimplementationmeasures,accesstosourcesofinformationregarding
customs valuation methodology, andadvice ontheapplication oftheprovisions ofthisAgreement.
3.27 TheCommittee took note oftheinformation.
4. Information ontheapplication ofDecisions oftheCommittee onCustoms Valuation
4.1 TheChairman drew Members attention todocument G/VAL/W/5/Rev.2 which contained the
document references ofnotifications thathadbeen received pursuant totheDecision ontheTreatment
ofInterest Charges intheCustoms Value ofImported Goods andtheDecision ontheValuation of
Carrier Media Bearing Software forData Processing Equipment, both adopted bytheCommittee and
contained indocument G/VAL/5. The document circulated forthepresent meeting updated the
information contained inG/VAL/W/5/Rev.1 with theaddition ofanewdocument reference forBrunei
Darussalam. Specifically, indocument G/VAL/N/1/BRN/1, theGovernment ofBrunei Darussalam
hadnotified thatitdidnotapply thetreatment ofinterest charges inthecustoms value ofimported
goods andonthevaluation ofcarrier media bearing software fordata processing equipment.
4.2 TheCommittee took note oftheinformation.
5. Valuation ofsoftware imported bysatellite
5.1 TheChairman recalled thatattheOctober 1996 meeting, theCommittee hadtaken note of
theletter from theDirector oftheValuation Directorate oftheWCO, circulated inG/VAL/W/12
providingfurtherexplanationandelaborationofthecircumstanceswherethecostofsoftware"imported"
bysatellite may form partofthecustoms value ofimported goods. Henoted thatthisletter wasin
response tohisletter totheChairman oftheTechnical Committee which hadbeen circulated indocument
G/VAL/W/7. Itwasagreed attheOctober meeting torevert tothisitem atthismeeting.G/VAL/M/5
Page 9
5.2 Therepresentative oftheUnited States understood thatthisissue hadbeen raised atthelast
WCO Technical Committee meeting. Atthattime itwasnoted thatthequestion presented bysoftware
down-loaded from asatellite involved questions outside therealm ofcustoms valuation, infactthe
question ofwhether animportation hadeven taken place. Inview ofthereferral ofthisquestion to
appropriate experts, asfarashisdelegation wasconcerned, thematter hadbeen satisfactorily resolved.
5.3 Theobserver from theWCO clarified thattheTechnical Committee hadreviewed thematter
andnoted thatthisparticular issue raised bythecorrespondence between thetwoCommittees related
tovery limited circumstances. Thepoint thathadbeen made wasthatthedelivery ofinformation or
software viasatellite didnotconform tothetraditional definition ofimportation ofgoods upon which
customs duty might bepayable. TheWCO Secretariat hadsuggested thatthere could becircumstances
where thedelivery ofinformation wasclosely associated totheimportation ofgoods and, inthiscase,
thesoftware could betaken intoaccount inthedetermination ofthevalue oftheimported goods. He
hadprovided twoexamples ofthissituation. Both were inrespect toadditions thatwould bemade
totheprice actually paidorpayable under theprovisions ofArticle 8(b)oftheAgreement, ifthevalue
ofthese elements were tobeincluded intheprice ofthegoods. TheCommittee didnotconsider that
itneeded tocomment further onthese situations andthatthey didnotfallwithin thearea concerned
thathadbeen raised bythisCommittee. TheTechnical Committee haddeferred totheoutcome of
discussions ofthese questions inother fora.
5.4 TheCommittee took note ofthestatements.
6. Technical assistance
(a) Information ontechnical assistance
6.1 TheChairman noted thatthere were twosubitems under thisagenda item. Thefirst was
information ontechnical assistance which wascontained indocument G/VAL/8/Add.1. This document
provided additional information ontechnical assistance activities conducted bytheWCO. Thesecond
sub-item, Article 20.3 technical assistance activities, hadbeen added totheagenda following agreement
bytheCommittee attheOctober 1996 meeting.
(b) Article 20.3 technical assistance activities
6.2 Therepresentative oftheUnited States noted thathisdelegation hadrequested thatthisbeon
theagenda forthismeeting. Hepresented hisdelegation 'sproposal ontechnical assistance which was
distributed toparticipants asanon-paper, andsubsequently circulated asG/VAL/W/18.
6.3 Therepresentative ofNew Zealand believed thattheUSproposal warranted apositive and
favourable hearing inthisCommittee. New Zealand hadrecently accepted anASEAN request for
training ofASEAN customs officials intheimplementation oftheCustoms Valuation Agreement.
HisGovernment 'sacceptance ofthisrequest underscored theimportance itattached toencouraging
trading partners toimplement theAgreement assoon aspossible. Even ifcountries hadinvoked
Article 20.1 todelay implementation, they would benefit byimplementing theCustoms Valuation
Agreement assoon aspossible. TheUSproposal would goalong waytoward coordinating technical
assistance efforts andensuring noduplication oftechnical assistance inrelation toimplementing this
Agreement. Hisdelegation supported theproposal andencouraged other Members todothesame.
6.4 Therepresentative ofPakistan welcomed thistimely andconstructive USinitiative. Itwas
timely because almost halfofthetransition period thathadbeen granted tocertain developing countries
wasover andthere wasstillalotofwork tobedone. Hisdelegation wasgenerally inagreement with
theUSproposal andoffered twopreliminary comments atthisstage. One wassubstantive: ontheG/VAL/M/5
Page 10
firstpage, inthelastparagraph, there were fourbasic elements mentioned andhewondered ifelements
3and4could becombined. Thesecond wasaprocedural comment: heagreed toproceed assuggested
intheUSpaper andconsidered thatthispaper itself could bethefirstsubstantive input forthework
oftheinformal working group. Since quick progress wasdesirable, hesuggested thatthisinformal
workinggroupreportitsfindings,conclusionsorrecommendationstothenextmeetingoftheCommittee
forfurther action asrequired.
6.5 Therepresentative ofCanada stated hisdelegation 'ssupport fortheUSproposal. Clearly,
technical assistance intheareaofcustoms valuation wasimportant. This washighlighted inthereport
oftheCommittee totheSingapore Ministerial Conference. Theideas contained intheUSpaper were
worth pursuing because problems ofimplementation oftheAgreement required afairdegree of
commitment andnecessary resources, given thattheproblems were often unique toparticular countries.
Theidentificationoftheseproblemsrequiredafairdegreeofthoroughness,andclearlyamoresystematic
approach totechnical assistance would likely improve thelikelihood thatthese Members would beable
toapply theAgreement assoon aspossible. Asapreliminary comment onthethree steps proposed
intheUSpaper, heconsidered itwould behelpful tohear theviews oftheWCO, inparticular on
thesuggestion thattheCommittee request theTechnical Committee toprovide additional background
information. Hewasnottoosureabout thetiming forthispreparation, whether thiswould complicate
theCommittee 'stask, andwhether there could bebetter ways ofinitiating informal consultations,
including perhaps through theparticipation ofaWCO representative intheinformal consultations.
Clarification inthisareawould bewelcome. Finally, henoted thattechnical assistance wasahorizontal
issue andthere were competing demands forthisassistance, butcustoms valuation should begiven
apriority.
6.6 Therepresentative ofSingapore, speaking onbehalf oftheASEAN Members, saidthathis
delegation could agree with thegeneral thrust oftheUSproposal ontheneed foracooperative and
coordinated approach ontechnical assistance fordeveloping countries asconcerned customs valuation.
Preliminarily, hisdelegation haddoubts ontheneed foragroup asproposed because ofbudgetary
implications. Perhaps theCommittee could meet inaninformal setting prior totheformal Committee
meeting. TheUSpaper wasinteresting andmerited further consideration inrespective capitals. He
alsothanked New Zealand forthetechnical assistance provided totheASEAN countries.
6.7 TherepresentativeoftheEuropeanCommunitiesagreedontheimportanceoftechnicalassistance.
Thought should begiven astohowthistechnical assistance could bestbegranted. Hisdelegation would
examine thepaper, andwasinterested inthereaction oftheWCO tothethird proposal inthepaper.
6.8 TherepresentativeofAustraliaalsoagreedwiththebroadthrustoftheUSproposal,inparticular,
thegeneralideaofsupportingeffectivetechnicalassistancetohelpWTOMembersmeettheirforthcoming
obligations. Herdelegation hadsome queries andreservations regarding inparticular theroleofthe
WCO andthepotential foranoverlap ofresponsibility, although greater coordination mayameliorate
thissituation. Inthatregard, herdelegation would beinterested inanyclarification ofthethird point,
aswasraised byCanada. Another point inthisregard waswhether itwould beprudent tobeguided
bytheoutcome oftheFourth Session oftheWCO Technical Committee. Overall, shenoted apositive
initial response totheUSproposal andopenness tofurther consideration.
6.9 Therepresentative ofSwitzerland shared theconcerns inrelation toduplicating efforts aswell
astheappeal formore cohesion inproviding technical assistance forcustoms valuation purposes or
foranyother WTO-related activities. Preliminarily, henoted thattechnical assistance wasahorizontal
issue,thattherewerediscussionsinotherforaconcerningthesystematicprovisionoftechnicalassistance,
andthatguidelines hadbeen adopted. Thethrust oftheUSpaper went intheright direction, andwas
within theframework ofthisgeneral WTO effort. However, there wasaneed tofurther think and
consult onpractical action theWTO could takeinthiscontext. Hisdelegation reserved itspositionG/VAL/M/5
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ontheconstitution ofaninformal working group. Should such aninformal working group becreated,
itwould have tobase itswork onanumber ofassessments such asonthetechnical assistance which
could beconducted bytheWCO. Henoted thattransparency hadbeen mentioned bytheUSandwas
alsoanelement which should guide, notonly theorganizations dealing with technical assistance, but
alsoindividual Members providing technical cooperation. Inthatregard, thegeneral assessment this
Committee could make onthestate ofaffairs intechnical assistance andwhat todonext would also
have torelyoninformation provided either byindividual orgroups ofMembers. Hewaspleased to
hear thatinthecontext ofAPEC some activities hadbeen developed. Itwould beuseful toshare such
activities among theMembers oftheCommittee forafullpicture ofthesituation. Itwasalsonecessary
tobase anytechnical assistance ontheneeds identified bydeveloping countries. Inthatregard, the
roleofthedeveloping countries insuch consultations wasvital toguarantee thattheoutcome would
address their issues, problems, andquestions. Heagreed thattheChairman conduct open consultations
todetermine thebasis forfurther work. Inthatregard itwould certainly beuseful andnecessary to
invite theWCO.
6.10 Therepresentative ofHungary welcomed theUSproposal, believing thatitwasinthecommon
interest toensure theeffectiveness oftheoperation ofArticle 20oftheAgreement. Sheagreed that
thismatter related totheoperation oftheAgreement, andcould notbeconsidered asatechnical issue.
Herdelegation realised theimportance oftechnical assistance, butneeded more timetocomment further,
particularly ontheproposal toestablish aninformal working group.
6.11 Therepresentative ofHong Kong alsowelcomed theUSinitiative which provided apossible
approach toassessing theneed fortechnical assistance todeveloping countries. Heagreed thatgiven
thediversity ofsituations andproblems encountered byEuropean countries, there wasmerit intackling
thetaskwith amore specific approach, namely finding outtheexpectations ofindividual developing
country Members with regard tocompliance with theAgreement.
6.12 Therepresentative ofMexico welcomed theUSdocument. Heconsidered itagood ideato
grant technical assistance todeveloping countries fortheimplementation oftheAgreement. His
delegation agreed with other delegations inthisregard, butwasnotinaposition tocomment onthe
specific proposals. Heagreed thatitwould beagood idea fortheChairman tohold informal
consultations toseeexactly how theentire issue oftechnical assistance could beapproached.
6.13 Therepresentative oftheWCO considered itimportant toclarify, forthepurposes ofthe
Members, exactly what theWCO wasdoing. Technical assistance wasoneofthemost fundamental
activities thatattracted countries tobecome Members oftheWCO. They counted ontheorganization
tocarry out,asaprimary objective, thedevelopment ofinternational instruments fortheharmonization
ofsimplified andeffective customs systems andprocedures. They alsocounted onthefactthatthe
WCO would promote andsupport such instruments which itdidthrough itstechnical assistance
programmes. Invaluation, theentire thrust ofthetechnical assistance programme prior totheWTO
wastopromote theGATT (now WTO )Valuation Agreement toitsMembers. This hadresulted form
aCouncil Decision thatthisAgreement hadthebest chance ofachieving universal application in
fulfilment oftheCouncil 'sgoal inrespect ofallitsConventions, i.e.thesimplification and
standardization ofCustoms procedures andsystems around theworld.
6.14 Heconsidered thatithadbeen theWCO onwhich both WTO andWCO Members hadrelied
tofulfil theAnnex IIandArticle 20commitments with respect totechnical assistance. Thetechnical
assistance document which thisCommittee hadadopted intoitsbody ofwork wasatestimonial tothat
effort andheconsidered thatthiswork hadassisted theCommittee inarriving where itwasatpresent.
Could theWTO Agreement have been accepted bysomany countries without themissionary work
undertaken ontheValuation Agreement bytheWCO? Headded thatthetechnical assistance work
hadlargely been aWCO effort, inthatWCO Members sponsored andfinanced some oftheprogrammes,G/VAL/M/5
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theyhadparticipated with theSecretariat insome programmes, andhadundertaken bilateral assistance
invaluation over theyears, i.e.theECPhare programme andthecurrent initiative underlay with APEC
countriesweregoodexamples.SincemostoftheWCOMemberswerealsoWTOmembers,andcustoms
valuation wasoneofthemost basic ofcustoms functions, thishadbeen anappropriate course tofollow.
6.15 However, thesituation hadevolved dramatically. Thenumber ofMembers totheAgreement
hadrisen from 44to130. Where before thelarge majority ofthecountries applying theValuation
Agreementhadbeendevelopedcountries,nowthebulkwereinthedevelopingcountrycategory.Before,
thetimetablesforimplementationhadbeenspreadout,dependingonwhenacountrysignedtheValuation
Agreement. Now thetimetable forthe80orsonew Members were allthesame, with afinal date
forfullimplementation on1January 2000 orbefore. Initsrecently-agreed Strategic Plan, theWCO
listed theimplementation andapplication oftheWTO Valuation Agreement asoneoftheCouncil 's
keyactivities forthefirst three years ofthePlan. Hestressed thatthiswasnotaplan forthework
oftheSecretariat butrather aplan forthework oftheWCO asawhole: theMembers supported by
itsSecretariat. Thesecond partofthekeyactivity intheWCO 'sStrategic Plan gave recognition to
thefactthatspecial emphasis would have tobegiven totheneeds ofnewsignatories -thiswaswhere
technical assistance came in.
6.16 Henoted thatbyidentifying valuation asakeyactivity, theCouncil hadauthorized theSecretary
General toallocate part ofthebudget oftheSecretariat tovaluation. Thebudget wasfunded by
Members 'contributions, andthevaluation portion itself covered allofthework undertaken bythe
Secretariat onbehalf oftheCommittee aswell asaportion allocated totechnical assistance work.
TheSecretariat staff thatwasdevoted solely tovaluation wasvery limited. Itwould beimpossible
toforesee thateach newMember oftheValuation Agreement could receive assistance onanindividual
basis from theWCO Secretariat, neither from apersonnel standpoint norfrom abudgetary standpoint.
TheWCO wasproviding aconsiderable amount ofdocumentation andsources ofinformation toassist
countries intheir implementation planning -ithadarange ofbrochures, papers, etc.-andwasensuring
thatdirect assistance projects, principally theseminars, workshops andmissions conducted were carried
outasmuch aspossible within specific regional priorities -inLatin America, inWest Africa, inSouth
andEastern Africa andinAsia/Pacific, etc. Aspecific emphasis wasputonproviding, asmuch as
possible, individual attention tothose Members thatexpressed thegreatest andmost urgent need.
6.17 HeacknowledgedthattheWCOcoulddomore.SomeMemberswereaskingforthesecondment
ofadvisors -some long term -toassist inspecific aspects ofimplementation. Butoneofthemajor
constraints wasfunding. Hecalled upon theexpertise ofMembers which were already applying the
Agreement totake onsome ofthetechnical assistance work. However, inthese times ofrestraint,
henoted thatMembers were often notabletocommit resources without financial compensation but,
many would nothave theresource tocommit, regardless offunding. TheWCO hadhadextensive
discussions with international lending organizations (IMF, World Bank) andothers (OAS, UNDP,
UNCTAD) about thepossibility ofobtaining sponsorship. Henoted that there appeared tobe
considerable interest inensuring thatcountries were able tosuccessfully implement new valuation
procedures, particularly where thiswasaccompanied byanoverall review ofthecustoms andapush
towards modernization. However, thefunding request must beinitiated bythecountry concerned and
theproject managed atthatlevel. WCO support forsuch projects would beaplus inobtaining the
financing. Therefore, Members needed tobeaware thatthey didhave possibilities inthisregard but
thatitwasuptothem toexploit it.They would then beinaposition tomanage anddirect their own
assistance needs.
6.18 Heexplained thattheWCO nowhadaStrategic Plan forthekeyactivity ofvaluation, approved
bytheCouncil. Theplan called forwork tocontinue inthearea oftechnical interpretation ofthe
Agreement,theresolutionofissuesanddifficultiesraisedbyadministrationsandtheadoptionandsharing
of"best practices" among Members. Much ofthiswork would continue tobeaccomplished throughG/VAL/M/5
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thework oftheTechnical Committee. TheCommittee hadalsoundertaken tomonitor theprogress
ofMembers astheymoved towards implementation inorder thattheWCO could quickly react, where
asked, toidentify problem areas. Implementation strategy wasalsocovered bythePlan, with thekey
areas tobefocused onbynew signatories setouttherein. Agood deal ofinformation hadalready
been disseminated onallthekeyareas butthemain aspects ofconcentration nowwere forthecountries
concerned toestablish project teams toplantheir implementation work; their firstareaofconcentration
should necessarily beinensuring thepreparation ofthelegislation base fortheir newvaluation system.
Direct assistance bytheSecretariat intheform ofseminars andexpert missions focused onthese issues.
This change instrategy -from promotion oftheAgreement toassisting initsimplementation -was
themain focus ofWCO programmes asitmoved towards 2000. Heemphasized again thatthisstrategy
wasadopted byWCO Members andwasnotaSecretariat strategy.
6.19 Henoted thattheSecretariat 'splan ofactivities wasdriven toaconsiderable extent bythe
specific requests received from Members. TheWCO managed theidentification ofMembers 'specific
needs inallareas oftechnical assistance, including valuation, through asophisticated datamanagement
system which wascalled WIDEBAND. Although relatively new, thissystem wasavaluable toolin
both data gathering andretention andtheyearly action plans were largely based ontheinformation
input intothesystem from information received from Members. Inlarge part, given theresource
constraints placed upon theorganization, activities were decided with aview toresponding toseveral
requests through oneactivity, aregional seminar, forexample. Theorganization was, however, able
toundertake several short-term missions each year toprovide more direct advice. Sometimes, these
depended ontheavailability ofsponsor 'sfunding. Forexample, theJapan/CCC Customs Cooperation
Fund hadbeen awelcome source ofsponsorship inthisregard. Although technical assistance had
notbeen aWTO priority inthepast, especially inthevaluation area, theWCO would welcome amore
direct involvement inthefuture.
6.20 Heconsidereditimportantthatgovernmentsrecognizeandaccepttheresponsibilitiesundertaken
within thecontext oftheWTO Agreement. Itwasnotanisolated case fortheWCO tolearn thatthe
mandate foreffecting thechange toanewsystem ofvaluation intheyear 2000 hadnever orhadyet
tobeassigned, nottothecustoms administrations, theorganization with whom theWCO dealt. Nor
wastheimpact ofthechange fully understood. Governments which relied heavily oncustoms duties
astheprincipal source ofgovernment revenue were interested inrevenue maximization from their
customs authorities. Apotential lossofrevenue inexchange forfacilitation anddown-the-road increases
intrade activity could beahard selltotheofficial whose performance wascurrently being measured
byrevenue collection. Governments needed togive those responsible forimplementation theright
signals. These were important issues forwhich only theWTO could provide theproper incentives
toensure compliance with itsrules.
6.21 Hewould welcome Members 'views ontheprogramme. Henoted thattheCommittee had
nottaken avery active roleinthepastontechnical assistance matters. That thismatter should beraised
nowwasareflection oftheincreased membership intheCommittee andtheincreased stake andconcern
ofMembers. Inconclusion, hewished toreact tosome oftheissues raised intheearlier discussion.
Henoted thattheUSproposal wasinteresting. TheWCO hadathorough examination oftechnical
assistance ways andmeans andwasinconsultation with Members; anything thatcould complement
thiscould beuseful. Henoted, forexample, theAPEC programme within which theWCO hadavery
active role. With respect tothespecific issue ofaseminar tobeheld with theASEAN countries, the
WCO hadhadalong-term relationship with theASEAN Secretariat andhadplanned tocontinue this
yearwith aseminar inthePhilippines. TheAPEC countries were alsowelcomed toattend thisseminar
andJapan would beparticipating through providing technical expertise andsponsorship. Henoted
thatactivities were planned through June 1997, listed inasection oftheTechnical Committee document
41.097. This was done toensure transparency intheactivities andatthesame time topreventG/VAL/M/5
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unnecessary duplication ofefforts. Heconsidered thatneither theWCO northeWTO could afford
tospend scarce resources unproductively.
6.22 Therepresentative oftheUnited States understood thatmany Members 'comments hadtobe
preliminary given thefactthatthepaper wascirculated atthepresent meeting. Hewished tosummarize
hisdelegation 'sviews, given thatseveral delegations noted theimportance ofageneral awareness of
technical assistance programmes; ofwhat theWCO wasdoing; andofwhat individual Members and
regional groups were doing. Henoted inparticular Switzerland 'spoint about transparency. With
respect tothisinformal working group, hisdelegation proposed thatitbeaforum forMembers to
assess on-going activities andtodiscuss what theywere doing under various initiatives. Hisdelegation
supported theidea oftransparency inthisprocess which wasafundamental aspect ofitsproposal.
Secondly, theproposal wastrying toenhance theroleofdeveloping countries intheprocess, through
what hetermed "empowerment". This wasaneffort toallow, onaninformal andfrank basis, those
whowere receiving technical assistance totelltheCommittee theshortcomings ofthisassistance, where
itwasnotaddressing their needs, andhow thisspecifically would relate totheir ability toimplement
theCustoms Valuation Agreement attheendofthetransition period.
6.23 Finally, heappreciated thecomments andtheefforts oftheWCO toprovide technical assistance,
albeit with restricted resources. Hisdelegation wasaware thatitwould continue todoanexemplary
jobinthisrespect. However heemphasised thatimplementation oftheAgreement, specifically of
Article 23,ultimately hadtorestwith theWTO andspecifically with thisCommittee. Itwasnota
responsibilitytoconcedetoanotherorganization.HisdelegationwasthussuggestingthattheCommittee,
through aninformal process, begin togive guidance totheefforts ontechnical assistance, toprovide
aframework toassist intheallocation ofresources, andmost importantly todoitsparttohelpidentify
specific individual needs andtoensure thatthese individual needs were matched. Hisdelegation
considered thatonly theWTO could dothiscomprehensively.
6.24 TheChairman noted thatabroad spectrum ofviews hadbeen expressed ontheUSproposal.
There were stillalotofdifferences inviews anditwould bepremature todraw conclusions, especially
given thenewness ofthedocument. This document andtheoralproposals made were ripeforfurther
consideration. Therefore, hesaw thenecessity forconducting informal consultations within the
Committee ontheUSproposal aswell asontheother orally-made proposals. Hesuggested thatthe
new Chairman oftheCommittee carry outthistask.
6.25 TheCommittee took note ofstatements andagreed thatthenew Chairman should conduct
informal consultations ontheUSproposal.
7. Useoftheterm "entretenimiento" intheInterpretative Note toArticle 1oftheAgreement
7.1 TheChairman recalled thatatthelastmeeting oftheCommittee, ithadbeen agreed torevert
tothisitem atthismeeting. Thematter hadbeen initially raised attheApril 1996 meeting bytheWCO
representative inhisreport ofthework oftheTechnical Committee. Aletter hadbeen subsequently
received from theChairman oftheTechnical Committee onthismatter andcirculated inG/VAL/W/15.
Theletter requested theCommittee toaddress theconcern ofSpanish-speaking countries ontheuse
oftheterm "entretenimiento" intheInterpretative Note toArticle 1oftheAgreement. Itsuggested
replacing theterm with theterm "mantenimiento" which would bethecorrect translation oftheterm
"maintenance" intheInterpretative Note. Heconsidered thesimplest waytoaddress thismatter was
through therectification oftheSpanish texttobemade through theissuance ofaProcès Verbale.
Henoted thatasimilar problem with theFrench textwashandled inthismanner in1981. Inorder
toproceed onthisbasis, heasked thattheCommittee review theproposed rectification contained in
G/VAL/W/17. IftheCommittee could agree onthismanner ofproceeding andontheproposed
rectification, thantherectification would becirculated inaWT/Let document towhich Members wouldG/VAL/M/5
Page 15
have theopportunity toobject during a30-day period. Ifnoobjections were received, theDirector-
General would issue aProcès Verbal formally rectifying thetext.
7.2 Therepresentative ofArgentina agreed with themethod ofproceeding. Hisdelegation wished
tomake certain that, after therectification tothetexthadbeen made, when documents would beissued
bytheWTO atalater stage, therectification would alsoautomatically bemade. Herequested the
Secretariat todowhatever wasnecessary toensure thatthecorrect term would beused infuture issues.
7.3 TheCommittee soagreed.
8. Other business
(a) Date forthenext meeting
8.1 TheChairman proposed thatthenextmeeting oftheCommittee onCustoms Valuation beheld
on23October 1997 assuggested bytheSecretariat inthecalendar ofmeetings for1997 andsubject
tochange intheevent ofunforeseen developments.
8.2 TheCommittee soagreed.
9. Election ofOfficers
9.1 TheChairman stated thattheRules ofProcedure formeetings oftheCommittee onCustoms
Valuation provided thattheCommittee elect aChairperson attheendofthefirstmeeting oftheyear.
Henoted thattheChairman oftheCouncil forTrade inGoods hadcarried outinformal consultations
onaslate ofnames forappointment aschairpersons ofstanding bodies inaccordance withtheestablished
Guidelines forappointment ofofficers. Onthebasis oftheunderstanding reached, heproposed that
theCommittee elect M.Tullio diPietro (Italy) asChairperson.
9.2 TheCommittee soagreed.
9.3 TheChairman noted thattheRules ofProcedure also allowed thepossibility ofelecting a
Vice-Chairman atthistime. Heasked ifthere were anynominations forVice-Chairman.
9.4 Therepresentative oftheUnited States stated thathisdelegation wished tonominate Mr.Ernesto
delaGuardia (Argentina) asVice-Chairman. Therepresentative ofHong Kong stated thathisdelegation
seconded thenomination.
9.5 TheCommittee agreed toelect Mr.Ernesto delaGuardia asVice-Chairman