WORLD TRADE
ORGANIZATIONG/VAL/W/108
25 October 2002
(02-5877)
Committee on Customs Valuation
EIGHTH 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 eighth 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 4-5 November 2002.  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.
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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/108
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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 Members ................................................................................................................. ..........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)..............................................4
(iii) Annex III, paragraph 1 (extension of  the five-year de lay period)...............................................4
(iv) Annex III, paragraph 2 (reservatio n concerning minimum values)............................................4
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of
Articles 5 and 6) ............................................................................................................. ............5
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer
so requests) ................................................................................................................... ..............5
(c) Observer Go vernments ........................................................................................................ .......5
(d) Observer Internati onal Organizations ........................................................................................ .6
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 ......................................................................................................... .............7
(c) Examination of nati onal legislation ......................................................................................... ...7
(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 .....................................................8
VII. TECHNICAL ASSIST ANCE ..................................................................................................8
VIII. REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS
VALUATIO N ...................................................................................................................... ......8
IX. CONSULTATION AND DI SPUTE SETTLE MENT............................................................8
X. ANNUAL REPORT TO THE COUNCI L FOR TRADE IN  GOODS.................................8G/VAL/W/108
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I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER
STATUS
(a) WTO Members (144)
Albania Germany Niger
Angola Ghana NigeriaAntigua and Barbuda Greece NorwayArgentina Grenada Oman
Australia Guatemala Pakistan
Austria Guinea Bissau Papua New GuineaBahrain Guinea, Rep. of ParaguayBangladesh Guyana PeruBarbados Haiti PhilippinesBelgium Honduras Poland
Belize Hong Kong, China Portugal
Benin Hungary QatarBolivia Iceland RomaniaBotswana India RwandaBrazil Indonesia Saint Kitts and Nevis
Brunei Darussalam Ireland Saint Lucia
Bulgaria Israel Saint Vincent & GrenadineBurkina Faso Italy SenegalBurundiCameroonCanadaJamaica
JapanJordanSeparate Customs Territory of
  Taiwan, Penghu, Kinmen, and  Matsu
Central African Republic Kenya Sierra Leone
Chad Korea SingaporeChile Kuwait Slovak RepublicChina Kyrgyz Republic SloveniaColombia Latvia Solomon IslandsCongo Lesotho South Africa
Congo, Democratic Rep. of the Liechtenstein Spain
Costa Rica Lithuania Sri LankaCôte d'Ivoire Luxembourg SurinameCroatia Macao, China SwazilandCuba Madagascar SwedenCyprus Malawi Switzerland
Czech Republic Malaysia Tanzania
Denmark Maldives ThailandDjibouti Mali TogoDominica Malta Trinidad and TobagoDominican Republic Mauritania Tunisia
Ecuador Mauritius Turkey
Egypt Mexico UgandaEl Salvador Moldova United Arab EmiratesEstonia Mongolia United KingdomEuropean Community Morocco United StatesFiji Mozambique Uruguay
Finland Myanmar Venezuela, The Bolivaran Rep. of
France Namibia ZambiaGabon Netherlands ZimbabweGambia New ZealandGeorgia NicaraguaG/VAL/W/108
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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 4 November 2002.  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) (45)
Bahrain Kenya
Bangladesh Kuwait
Bolivia Madagascar
Brunei Darussalam MalaysiaBurkina Faso Mali
Cameroon Malta
Chile Mauritania
Colombia Myanmar
Costa Rica NicaraguaCôte d'Ivoire Nigeria
Djibouti Pakistan
Dominican Republic Philippines
Ecuador Senegal
Egypt Sri LankaEl Salvador Tanzania
Gabon Thailand
Guatemala Togo
Guyana Tunisia
Haiti United Arab EmiratesHonduras Uruguay
Indonesia Venezuela, The Bolivaran Rep. of
Israel Zambia
Jamaica
(iii) Annex III, paragraph 1 (extension of the five-year delay period)(3)
Rwanda (request pending since 22/05/01)
Sri Lanka (request pending since 31/10/02)
United Arab Emirates (request pending since 10/04/01)
(iv) Annex III, paragraph 2 (reservation concerning minimum values) (12)
Colombia (30/4/02 and 30/04/03)
1Honduras (1/01/02 and 1/01/03)
Gabon (1/01/03) Jama ica (10/03/03)
Guatemala (21/11/02;  21/05/03;  and 21/11/04) Nicar agua (3/09/02 and 3/09/03)
                                                     
1 Dates represent expiration of reservation for the products concerned.G/VAL/W/108
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(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 Togo
Colombia Madagascar Tunisia
Costa Rica Maldives Turkey2
Côte d'Ivoire Malawi2Uganda
Djibouti Malaysia United Arab Emirates
Dominican Republic Mali Uruguay
Ecuador Malta Venezuela, The
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 PakistanCôte d'Ivoire Jamaica Peru
2
Djibouti Kenya Philippines
Dominican Republic Madagascar Senegal
Ecuador Maldives Sri Lanka
(c) Observer Governments (32)
Algeria Nepal
Andorra Russian Federation
Armenia Samoa
Azerbaijan Sao Tome and Principe
Bahamas Saudi ArabiaBelarus Seychelles
Bhutan Sudan
Bosnia and Herzegovina Tajikistan
                                                     
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/108
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Cambodia Tonga
Cape Verde Ukraine
Equatorial Guinea Uzbekistan
Ethiopia Vanuatu
Former Yugoslavia Republic VietnamHoly See Yemen
Kazakstan Yugoslavia – Fed. Rep. of
Laos
Lebanon
(d) Observer International Organizations (6)
3
World Customs Organization UNCTAD IADB
IMF ACP World Bank
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION
Chairperson: Mr. Raimundas Karoblis (Lithuania)
III. MEETINGS OF THE COMMITTEE
During the reporting period, the Committee has held two formal meetings on
26 February (G/VAL/M/25) and 27 March 2002 (G/VAL/M/26) under the Chairship of
Mr. K. J. Weerasinghe (Sri Lanka);  and five  formal meetings on 6-7 May 2002 (G/VAL/M/27 and
Corr.1, G/VAL/M28), 26 June (G/V AL/M/29), 3 and 26  July 2002 (G/VAL/M/30, Corr.1, and Add.1),
30 September-1 October 2002 (G/VAL/M/31) and [4 -5 November 2002 (G/VAL/M/32 to be issued)
under the Chairmanship of Mr. Raimundus Karoblis (Lithuania).  In addition, a meeting was held on 21
November 2001 (G/VAL/M/24) that was not reflected in the Seventh Annual Review.
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:
Brunei Darussalam (G/VAL/N/1/BRN/1)
Burkina Faso (G/VAL/N/1/BFA/1)
China (G/VAL/N/1/CHN/1)
Côte d'Ivoire (G/VAL/N/1/CIV/1)Croatia (G/VAL/N/1/HRV/1)
Georgia (G/VAL/N/1/GEO/1)
India (G/VAL/N/1/IND/3)
Kenya (G/VAL/N/1/KEN/1)
Korea (G/VAL/N/1/KOR/2)Lithuania (G/VAL/N/1/LTU/1)
                                                     
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/108
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Moldova (G/VAL/N/1/MDA/1)
Peru (G/VAL/N/1/PER/1)
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
(G/VAL/N/1/TPKM/1)
Slovakia (G/VAL/N/1/SVK/2)
Tunisia (G/VAL/N/1/TUN/1)
Venezuela (G/VAL/N/1/VEN/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:
China (G/VAL/N/2/CHN/1)
Croatia (G/VAL/N/2/HRV/1)Cuba (G/VAL/N/2/CUB/1)
India (G/VAL/N/2/IND/1 and Corr.1)
Kenya (G/VAL/N/2KEN/1)
Lithuania (G/VAL/N/2/LTU/1)
Moldova (G/VAL/N/2/MDA/1)Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
(G/VAL/N/2/TPKM/1 and 2)
(c) Examination of national legislation
At its meeting of 6-7 May 2002, the Committee pursued its examination of various
communications and implementing legislations.  The Committee agreed to conclude the examination of
the legislations of Brunei Darussalam, Croatia, Georgi a, Kenya, Korea, Lithuania, Moldova, Tunisia and
Venezuela. Since the notification of Peru did not c ontain the customs act, it was agreed not to conclude
its examination in the Committee.
[At the 4-5 November 2002 meeting, the Committee concluded the examination of the
legislations of …..;  the examination of the legi slation of …were still underway.   To be updated.].
(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 documents G/ VAL/W/5/Rev.11 and Rev.12.
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.G/VAL/W/108
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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 an extension of the delay period in accordance with
paragraph 1, Annex III to Sri Lanka.
VII. TECHNICAL ASSISTANCE
Following adoption of the proposal by the European Communities to reinvigorate the
Committee’s work (G/VAL/W/82/Rev.1) last year, the Committee agreed at its February 2002
meeting to hold a seminar on technical assistance in November 2002.  The Committee adopted  theprogramme for this seminar in July which was subsequently circulated as G/VAL/47/Rev.1.   [The
seminar was held on 6 and 7 November 2002.]
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 Fourteenth Session of the Technica l Committee on Customs Valuation which was held
from 15-19 April 2002.  At the September-October mee ting, the representative of the WCO presented an
oral report on the work of the Technical Committ ee on the exchange of information for cusotms
administrations.  [At the November meeting, the representative of the WCO presented a report on the
Fifteenth Session of the Technical Co mmittee, held from 21-25 October 2002.]
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, there were no consultation and/or dispute settlement
matters to report.
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).]G/VAL/W/108
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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
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/1VAL/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/1-3VAL/2/Rev.2/Add.3
Brunei Darussalam G/VAL/N/1/BRN/1 G/VAL/N/2/BRN/2
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 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/CZE/1-3VAL/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
Iceland G/VAL/N/1/ISL/1 G/VAL/N/2/ISL/1
                                                     
1 Documents beginning with "VAL" are documents issued under the Tokyo Round Committee on Customs ValuationG/VAL/W/108
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Member National legislation Replie s to the Checklist of Issues
India VAL/1/Add.24 + Suppl.1
G/VAL/N/1/IND/1-3VAL/2/Rev.2/Add.6
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/MAR/1/Rev.1+Corr.1 G/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, Kinmen
and Matsu (ChineseTaipei)G/VAL/N/1/TPKM/1 G/VAL/N/2/TPKM/1-2G/VAL/W/108
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Member National legislation Replie s to the Checklist of Issues
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
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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