WORLD TRADE  
ORGANIZATION  G/VAL/W/138 
22 October 2004 
 
 (04-4494) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
US questions regarding Mexico's legi slation related to customs valuation
 
 
 
 The following communication, dated 8 October 2004, is being circulated at the request of the Delegation of the United States.  
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Estimated Prices (G/VAL/W/129)
 
 
1. In its responses to questions on estimated prices, Mexico states that "the estimated price 
mechanism is used only as a surety  mechanism", and "there is no other surety method other than 
estimated prices".  Also, Mexico states that estimat ed prices are used in reference to undervaluation.  
"Can Mexico confirm that if transaction valu e cannot be applied because there is no sale and 
deductive value is to be applied -- the "sur ety mechanism" would not be applied"  
 2. Does Mexico use estimated prices as the only mechanism to apply when it suspects 
undervaluation?  Please explain whether, and if so, how Mexico applies Decision 6.1 of the 
Committee on Customs Valuation when it has reasons to  doubt to the truth or accuracy of documents 
submitted by an importer.  3. In response to question 9, Mexico states that it does not use estimated prices to value 
merchandise, but always uses transaction value.  Pl ease clarify:  does this mean that the estimated 
pricing mechanism is not used to reject applicat ion of transaction value, or that application of 
transaction value is never rejected on the basis of estimated prices?   Post-importation verification practices (G/VAL/W/132
) 
 
1. In response to question 13, Mexico cites Article 17 and paragraph 6 of Annex III of the 
Agreement, which states in part that customs admi nistrations may need to make inquiries concerning 
the truth or accuracy of any statement, documen t or declaration presented to them for customs 
valuation purposes, and Members have the right to e xpect the full cooperation of importers in their 
enquiries. 
 
• What export or exporter documents are presente d to Mexico customs for customs valuation 
purposes? 
• Also, does Mexico interpret "full cooperation of  importers" to mean the full cooperation of 
importers and exporters? 
 G/VAL/W/138 
Page 2  
 
 2. In response to our first question of Question 14 asking for the nature of the contract between 
the Government of Mexico and any post-impor tation provider, Mexico responds that it has 
agreements with other governments to exchange information. 
 
• What is the nature of any contract between th e Government of Mexico and a private party to 
collect information from exporters?  In this  regard, please confirm that Mexico views 
agreements between Mexico and another government to exchange information as the basis for 
permitting for a private verification provider to  demand information directly from an exporter 
outside of Mexico regarding the valuation of goods imported into Mexico, and explain 
whether these agreements explicitly allow for su ch undertakings by private parties on behalf 
of Mexico. 
 
3.   We do not understand Mexico's response to  Question 15.  It appears the term "post-
importation verification provider" was misinterpreted to mean something other than the entity carrying out the verification.  We will clarify our question: 
 
• What specific findings are expected from the post-importation verification provider to the 
Government of Mexico as a result of the examin ation of exporters outside of Mexico?  For 
example, is there an expectation for certain speci fic types of information, or determinations of 
valuation under the Valuation Agreement? 
  
4.   In response to Question 16 and 24, Mexico states that confidentiality of information provided by exporters is protected by Mexican law, which provides for safeguarding of information by public 
officials. 
 
• Is information surrounding the valuation of imported goods, such as declared value, 
considered confidential info rmation under Mexico Law? 
• Can Mexico confirm that it does not provide su ch information to non-government persons or 
entities, such as domestic industry association? 
• If such information relating to valuation of goods  imported into Mexico is made available to 
non-government persons such as domestic  industry associations, please outline the 
circumstances and procedures for doing so, along with an explanation of  the consistency of 
such a practice with Article 10 of the Customs Valuation Agreement. 
• Would Mexico’s law protecting confidentiality of information apply to a post-importation 
verification provider located outside of Mexi co and conducting verifications of exporters 
outside of Mexico? 
 
5.   Concerning the response to Question 17, our understanding of exchange  agreements is that 
they relate to the exchange of information between governments. 
 
•
 Please explain how such government-to-government agreements provide a basis for a private 
party to act on behalf of Mexico in obtaini ng business-confidential export information from a 
business outside of Mexico for purposes of customs valuation determinations. 
 
6.  In response to Question 19 on what information importers/exporters will be asked to provide to the 
post-importation verification providers, Mexico states only “information related to commercial 
operations and their documentation,” which is a very broad category. 
 
• Please provide the specific information or data  elements that are sought from exporters by 
post-importation verification providers under su ch arrangements, and please explain their 
relevance to customs valuation determina tions on imported goods in accordance with the 
Agreement on Customs Valuation.  G/VAL/W/138 
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7.    Export value information is not gene rally required to be based on the application  of the WTO 
Valuation Agreement.  Thus for most countries fo r export value there is no transaction value, no 
provisions for assists, royalties, etc. and no hierarchy of methods. 
 
• Please explain the purpose of obtaining such information from exporters and its use for 
purposes of verifying customs valuation of impor tations in accordance with the application of 
the Customs Valuation Agreement. 
 
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