WORLD TRADE
ORGANIZATIONG/VAL/N/2/KGZ/1
15 March 2000
(00-1060)
Committee on Customs Valuation Original:  English
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE
AGREEMENT ON CUSTOMS VALUATION
Checklist of Issues
KYRGYZ REPUBLIC
The following communication has been received from the Permanent Mission of the Kyrgyz
Republic.
_______________
Customs value is currently implemented under the Customs Code of 30 July 1997, the
Regulation on Methods for Determining Customs Value of Goods Imported to the Kyrgyz Republic
(passed by the Order of the State Cust oms Committee #15-12/372 of 29 August 1998).
1. Questions concerning Article 1
(a) Sales between related persons:
(i) Are sales between related persons subject to special provisions?
Provisions of Article 174 of the Customs Code concerning sales between related persons are
consistent with Articles 1 and 15.4 of the Customs Valuation Agreement.
(ii) Is the fact of intercompany prices prima-facie considered as grounds for regarding the
respective prices as being influenced?
According to the provisions of paragraph 3 of Article 174 of the Customs Code, intercompany
prices are not considered as a prima facie  basis for regarding the respective prices as being
influenced.
(iii) What is the provision for giving the communi cations of the afore-mentioned grounds in
writing if the importer so requests? (Article 1.2(a))
Article 174 of the Customs Code provides that if a customs body has grounds for considering
that the relationship influenced the price, it shall provide recommendations to the declarant
(in writing if the declarant so requests).  In such a case, the declarant is given 90 days to
respond.G/VAL/N/2/KGZ/1
Page 2
(iv) How has Article 1.2(b) been implemented?
Provisions of Article 1.2(b) of the Customs Valuation Agreement are fully implemented
under Paragraph 3 of Article 174 of the Customs Code.  The provisions of this Article provide
importers with the opportunity to submit information to the customs administration,
demonstrating that the declared value closely approximates to one of the following, occurringat or about the same time: (i) the customs value of identical or similar merchandise in sales
between unrelated buyers and sellers; (ii) the customs value of identical or similar goods
determined according to the deductive value me thod; (iii) the customs value of identical or
similar goods determined according to the computed value method.
(b) Price of lost or damaged goods:
Are there any special provisions or practical arrangements concerning the valuation of lost or
damaged goods?
The practice under the current legislation is that the purchase price or value of damaged goods
is reduced to the extent of the damage, as determined by an ad hoc  committee consisting of
representatives of the States Customs Inspectorate and the declarant, as well as an independent expert.
This practice will continue under the proposed legislation.  No reduction in duties is given for thegoods, which have been declared and included in the invoice, but are not found upon customs
examination, unless the importer can satisfy the committee that the goods were lost before importation
into Kyrgyzstan for no fault of the importer.
2. How has the provision of Article 4 to allow the importer an option to reverse the order
of application of Articles 5 and 6 been implemented?
Article 173 of the Customs Code provides that the methods of Articles 5 and 6 of the Customs
Valuation Agreement may, at importer's option, be used in any sequence.
3. How has Article 5.2 been implemented?
Article 5.2 of the CVA, concerning the use of the deductive value after further processing is
implemented in Paragraph 5 of Article 177 of the Customs Code.
4. How has Article 6.2 been implemented?
Article 6.2 of the CVA, barring compulsory pr oduction of, or access to, records of any person
not resident in the Kyrgyz Republic for the purposes  of determining a computed value is implemented
in the section Method of Determining Customs Value on the Basis of Computed Value (the 5
th
Method) of the Regulation on Methods for Determining Customs Value of Goods Imported to the
Kyrgyz Republic (passed by the Order of the State Customs Committee #15-12/372 of
29 August 1998).  Customs bodies may not require or  compel any person, not resident of the Kyrgyz
Republic, to furnish its records for the purposes of determining a computed value unless the foreign
producer agrees to that.
5. Questions concerning Article 7:
(a) What provisions have been made for making value determinations pursuant to Article 7?
Article 179 of the Customs Code provides for a "provisional" method, when other methods
may not be applied, describing it as the "customs value to be determined by taking into account worldpractice".  The Implementing Regulation on Methods for Determining Customs Value of GoodsG/VAL/N/2/KGZ/1
Page 3
Imported to the Kyrgyz Republic (passed by the Order of the State Customs Committee #15-12/372 of
29 August 1998) provides that under "the provisional method" custom value is determined by using
reasonable means consistent with the principles and general provisions of the Customs Valuation
Agreement and of Article VII of GATT 1994.  General principles of the Agreement and Article VII
GATT which are subject to observance in applyi ng "the provisional method" may refer to the
following:
- valuation should be based, to the maximum extent possible, on the transaction value of
imported goods, the use of the cost [price] based on actual estimation (i.e. prices at which the
imported goods are sold in the country in the course of usual trade under the conditions of
competition);
- unification of valuation, providing uniformity in implementing valuation of goods for
customs purposes;
- fair and impartial valuation, i.e. aspiration for finding an actual and real value of imported
goods; adjustments being made should provide a maximum real valuation;
- simplicity and objectiveness of valuation criteria;- compatibility with commercial practice, inadmissibility of creating situations, or application
of the valuation methods which never occur in commercial practice;
- if value cannot be determined on the basis of method 1 – the use of the closest equivalents
(alternative values);
- value of domestic goods or arbitrary (fictitious) prices shall not be used as the basis for
valuation.
(b) What is the provision for informing the impor ter of the customs value determined under
Article 7?
Under Article 172 of the Customs Code customs bodies must, upon request of the importer,
provide a written explanation of how the customs value of imported goods was determined.
According to Implementing Resolution #15-12/372 of 29 August 1998, importer shall submit a
request in writing within 90 days after the goods are released.
(c) Are the prohibitions found in Article 7.2 delineated?
All of the prohibitions found in Article 7.2 of the Customs Valuation Agreement are included
in Article 179 of the Customs Code.
6. How have the options found in Article 8.2 been handled?  In the case of f.o.b.
application, are ex-factory prices also accepted?
Paragraph 1 of Article 174 of the Customs Code provides for the addition of the costs
specified in Article 8.2 of the CVA incurred on goods up to the time they cross the customs border ofthe Kyrgyz Republic in determining customs value, when they are not included in the purchase price.
7. Where is the rate of exchange published, as required by Article 9.1?
The rate of exchange is published by the National Bank of the Kyrgyz Republic in
newspapers of general circulation.  For the purpose of determining the customs value, a foreignG/VAL/N/2/KGZ/1
Page 4
currency is converted into the currency of the Kyrgyz Republic at the rate of exchange in effect on the
date of receipt of the customs declaration for the goods.
8. What steps have been taken to ensure confidentiality, as required by Article 10?
Confidentiality is ensured in Article 170 of th e Customs Code, except for certain information
stipulated in the legislation of the Kyrgyz Republic which may be required by law enforcement and
judicial authorities and, for which purposes it cannot be treated as a commercial secret or, as
confidential.
9. Questions concerning Article 11:
(a) What rights of appeal are open to the importer or any other person?
Article 172 and Chapters 61, 62 and 63 of the Customs Code provide for the right of any
aggrieved person to challenge decisions of the SCI concerning the customs value in accordance with
the procedure established by the legislation of the Kyrgyz Republic, which provides for both
administrative and judicial appeals.
(b) How is he to be informed of his right to further appeal?
Currently, the national legislation does not provide for the importer's right to be informed of
further appeal.  However, in practice customs bodies in all cases inform the importer of his right to
further appeal in courts.
10. Provide information on the publication, as required by Article 12, of :
(a)(i) The relevant national laws
Article 3 of the Law on Publication of Laws #9 of 14 February 1997, as amended, requires
that laws relating, inter alia , to valuation of goods for customs purposes, be published and
enter into force not earlier than 15 days from the date of publication.  Article 409 of theCustoms Code requires the State Customs Inspectorate to publish the most important relevant
national laws and regulations in the mass media, while Article 410 requires local customs
bodies to publicize the basic provisions of t hose laws.  In addition, under Article 405, copies
of already-published texts of laws, regulations, and customs directives will be presented to the
interested persons by the State Customs Inspectorate upon payment of a fee in the amount
established by the Ministry of Finance.
(ii) The regulations concerning the application of the Agreement
Article 39 of the Law on Normative Legal Acts #34 of 1 July 1996, as amended, requires that
laws and regulations relating, inter alia , to valuation of goods for customs purposes, be
published and enter into force not earlier than after 15 days from the date of publication (seethe response to the question above).
(iii) The judicial decision and administrative rulings of general application relating to the
Agreement
Legislation of the Kyrgyz Republic does not require publication of judicial rulings.  Note, that
according to the Kyrgyz legislation judicial decisions are not of general application.G/VAL/N/2/KGZ/1
Page 5
(iv) General or specific laws being referred to in the rules of implementation or application
Article 3 of the Law on Publication of Laws #9 of 14 February 1997, as amended, requires
that all laws referred to in Article X of GATT 1994, be published.
(b) Is the publication of further rules anticipated?  Which topics would they cover?
See the response to the question above.
11. Questions concerning Article 13
(a) How is the obligation of Article 13 (last sentence) being dealt with in the respective
legislation?
Article 171 of the Customs Code permits importers to receive and use imported goods under
pledge, guaranty, or payment of the estimated duties, pending final determination of value.
(b) Have additional explanations been laid down?
Additional explanations have been laid down in implementing instructions for Article 166.
12. Questions concerning Article 16
(a) Does the respective national legislation contain a provision requiring customs authorities to
give an explanation in writing as to how the customs value was determined?
Under Article 172 of the Customs Code customs bodies must, upon request of the importer,
provide a written explanation of how the customs value of imported goods was determined.
(b) Are there any further regulations concerning an above-mentioned request?
According to Implementing Regulation #15-12/372 of 29 August 1998, the importer shall
submit the above-mentioned request in writing within 90 days after the goods are released.
13. How have the Interpretative Note s of the Agreement been included?
Interpretative Notes have been included in Implementing Regulation #15-12/372 of
29 August 1998.
14. How have the provisions of the Decision on  the Treatment of Interest Charges in the
Customs Value of Imported Goods been implemented?
According to the Section "Special Provisions" of Regulation #15-12/372 of 29 August 1998,
interest charges are not included in the customs value of imported goods, provided that: (i) duties are
separated from the price, actually paid or payable; (ii) the financial agreement was concluded in
writing; (iii) on the requirement of customs bodies the declarant must submit authentic information
proved by documents, that such goods are actually sold at the price declared as the price actually paidor payable and the given interest rate doesn't exceed the usual interest for such deals, which prevail in
the country, where and when finance was provided.G/VAL/N/2/KGZ/1
Page 6
15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier
Media Bearing Software for Data Processing Equipment, how have the provisions of this
paragraph been implemented?
According to the Section "Special Provisions" of Regulation #15-12/372 of 29 August 1998,
in determining customs value of the imported carrier media bearing data or instructions, only the costof the carrier medium itself is taken into account.
__________