WORLD TRADE
ORGANIZATIONG/VAL/17/Rev.1
8 December 1999
(99-5395)
Committee on Customs Valuation Original:  Spanish
RESERVATION BY PARAGUAY UNDE R PARAGRAPH 1 OF ANNEX III OF
THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF
THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
Decision
Revision
The following Decision concerning the reservation by Paraguay under paragraph 1 of
Annex III of the Agreement on Customs Valuation was adopted by the Committee on
12 November 1999.1
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Taking into account the request by the Government of Paraguay under paragraph 1 of
Annex III of the Agreement on Implementation of Article VII of the General Agreement on Tariffs
and Trade 1994 (WTO Agreement on Customs Valuation), done at Marrakesh on 15 April 1994, for
an extension of the period for the application of the provisions of the Agreement,
Recognizing that, on 1 January 1995, Paraguay became a contracting party of the WTO
Agreement on Customs Valuation and, under paragraph 1 of Article 20 of the Agreement, requested
an extension of five years as from 1 January 1995, the effective date of said Agreement, and istherefore scheduled to apply the rules of the aforementioned Agreement as from 1 January 2000,
Considering that Paraguay has made substantial endeavours to implement the provisions of
the WTO Agreement on Customs Valuation,
Considering further that Paraguay has an ongoing interest in receiving technical assistance in
support of the implementation and application of the WTO Agreement on Customs Valuation,
Noting Paraguay's commitment and endeavours to reform and modernize its customs
administration,
Noting that the Paraguayan authorities have established a detailed work programme involving
the respective ministries and offices in order to make it possible to draw up and approve its legislation
as well as to adapt its legal and administrative procedures, including training, dissemination of
information and other activities, in order to implement and apply the WTO Agreement on CustomsValuation,
Seeing as regards paragraph 2 of Annex III of the WTO Agreement on Customs Valuation,
that Paraguay currently values goods on the basis of officially-established minimum values, solely in
respect of the following products:
                                                     
1 See document G/VAL/M/12 to be issued.G/VAL/17/Rev.1
Page 2
(a) Worn clothing and other worn articles of tariff headings 63.09 and 63.10;
(b) used footwear, of Chapter 64;  and
(c) used vehicles other than railway or tramway rolling stock, and parts and accessories
thereof, of Chapter 87.
Seeing also Paraguay's intention not to apply these minimum values to other products during
the extension period requested for the implementation of the WTO Agreement on Customs Valuation,
and to endeavour not to apply these minimum values to any other product upon expiry of the
requested extension period,
Seeing that the Government of Paraguay is already applying paragraph 2 of the Decision on
the Valuation of Carrier Media Bearing Software for Data Processing Equipment,
Seeing that the Government of Paraguay neither uses nor envisages using pre-inspection
services for the purposes of customs administration and valuation,
Recognizing Paraguay's indication that this would be the only extension request for the
implementation of the WTO Customs Valuation Agreement,
The Members, pursuant to the provisions of paragraph 1 of Annex III of the WTO Agreement
on Customs Valuation,
Decide in the light of the exceptional circumstances mentioned above, that:
1. Subject to the terms and conditions mentioned hereunder, Paraguay may postpone the
implementation of the provisions of the WTO Agreement on Customs Valuation for a period
not extending beyond 1 January 2001;
2. The Government of Paraguay shall report to the Committee on Customs Valuation, at the
Committee's regular meetings scheduled for the year 2000, on the progress made in executing
the work programme contained in Annex II and on the level of implementation of the WTOAgreement on Customs Valuation, in keeping with the terms and conditions of this Decision;
3. This Decision neither prejudges nor prejudices the rights and obligations of Paraguay under
the WTO Agreements, in particular, rights and obligations under the WTO Agreement on
Customs Valuation.G/VAL/17/Rev.1
Page 3WORK PROGRAMME
Period 2000-2001
General Objective:  To strengthen the application of the Agreem ent on Implementation of Article VII of the GATT 1994 (Customs V aluation)
SPECIFIC
OBJECTIVESACTIVITIES PERIOD REQUIREMENTS GOALS INDICATORS
1. To update the
legal frameworkof the Customs
Service• To adapt the Paraguayan
Customs Code so as to meet
the requirements ofinternational trade and bring
it into line with regional
regulations and treaties
signed by the country.
• To update its regulations by
incorporating new regimes,destinations and customs
figures.
• To incorporate into the
regulations the legal
recognition of the
application of technology to
the procedures.12 months • To recruit consultants with
experience in drafting customs
regulations and in processes ofintegration (4 months/consultancy).
• To provide the facilities to assist
customs inspections at frontiers
(vehicles, boats, infra-red
equipment, etc.)• Updated
framework of
customsregulations
• To achieve effective
customs control at
frontiers.• 24 months:  Draft
Customs Code
completed, revisedand submitted;
Draft Regulations
completed, revised
and submitted.
• Decrease in the
percentage of
estimated
smuggling
(increase in
customs revenue).
• To create the legal
framework to regulatefrontier inspections (air, land
and river).G/VAL/17/Rev.1
Page 4SPECIFIC
OBJECTIVESACTIVITIES PERIOD REQUIREMENTS GOALS INDICATORS
2. To simplify
customs
procedures• Reorganization of
procedures and customs
documentation through the
use of technology.12 months • To establish working groups of
officials of the Paraguayan Customs
Service.• All customs
procedures to be
automated.• To reduce clerical
costs and time
(user surveys).
• To draft procedural manuals. • To carry out training  courses on
model customs procedures.• Implementation
completed.
• To draw up risk assessment
programmes so as to
improve selectivity inchecking goods.• To make a survey of the procedures
used in the most productive customs
units.• Chemical laboratory
installed and
functioning.
• To set up a laboratory to
meet customs needs.• To hire consultants specializing in
procedures (6 months)
• To hire consultants to establish the
laboratory and organize its structure
(6 months)
• To set up laboratory teams.
3. To strengthen the
Customs
Valuation Service• To adapt the valuation
system so as to fully complywith Article VII of the
GATT.
• To strengthen the local units.
• To prepare a manual on
customs valuation.
• To structure the Central Unit
of the Valuation Service.
• To establish a technical
library to provideconsultation and support
services.12 months • To hire computer experts
specializing in valuation (3 months).
• To organize training in a country
specializing in this field, 2 officials
(1 week).
• To purchase 4 high-velocity
scanning units.
• To speed up the establishment and
operation of a database.• To fully apply the
GATT concept ofvalue.• To introduce in the
next 12 months theapplication of the
GATT concept of
value and establish
effective controls
of the transactionvalue in a
posteriori form of
30 per cent of the
declarations made,
using proceduresthat allow for the
selection and
effective control
of sensitive
products.G/VAL/17/Rev.1
Page 5SPECIFIC
OBJECTIVESACTIVITIES PERIOD REQUIREMENTS GOALS INDICATORS
4. To improve the
auditing of
customs
administration• To improve auditing in the
areas of internal and external
control.
• To select, with a view to
achieving greater efficiency
and flexibility in thecontrols, a group of major
importers.
• To establish units to analyse
and process the information
so as to make the auditing
more efficient.
• To prepare risk assessment
programmes so as to
improve efficiency in the
selection of " a posteriori "
control.
• To define, develop and
establish a database tofacilitate inspections.
• To harmonize inspection
procedures with the Sub-
Secretariat of Taxation.12 months • To hire a specialized international
consultant to reorganize the system
of auditing (3 months).
• To hire consultants specialized in
customs auditing to select and train
the auditors (3 months).
• To purchase computer equipment
(10 computers).• All users to be
inspected.• Inspection in the
first year of 50%
of commercial
agents.
• Inspection in the
2
nd year of 100 per
cent of
commercial
agents.
5. To upgrade the
SOFIA computer
system• To develop programmes to
process the conditional relief
and special customs import
regimes.
• To prepare the appropriate
manuals.
• To extend the SOFIA system
to the customs units that are
not currently linked to it.12 months • Recruitment of highly qualified
computer staff.
• Training of a group of customs
experts for optimization of
computerized tariffs.
• To carry out specific training
programmes in this field.• 100% utilization by
the institution of the
technology for
inspection.• Management of
customs
declarations:
should be
processed 100%by administrations
equipped with the
SOFIA computer
system.G/VAL/17/Rev.1
Page 6SPECIFIC
OBJECTIVESACTIVITIES PERIOD REQUIREMENTS GOALS INDICATORS
• To improve the training of
customs officials in using the
system.
6. To establish a new
organizational
structure• To design and implement the
organizational structure with
job descriptions.8 months • Specialized consultants (4 months). • New structure
designed and
implemented so as
to meet
requirements.• Organizational
structure able to
provide efficient
support to the new
customs service.
7. To make optimum
use of the existinghuman resources
and establish
training
programmes• To establish an
administrative career
structure with rules forrecruitment, entry selection
and promotion.
• To establish salary levels
and incentives corresponding
to the levels of
responsibility.
• To determine areas of
training, and carry out
programmes.12 months • Consultants in human resources
management (4 months).
• Support in providing infrastructure
and teams for training.• To establish an
administrative
career structure.• Incorporation of
professionals:
1
st year 10%;
2nd year 25%G/VAL/17/Rev.1
Page 7SPECIFIC
OBJECTIVESACTIVITIES PERIOD REQUIREMENTS GOALS INDICATORS
8. To step up
inspection so as to
ensure verification
of origin• To establish a specific unit
with regard to origin.
• To prepare a manual on
inspection procedures for the
verification of origin.
• To strengthen links with
other customs services thatcould lead to the
establishment of risk
parameters.
• To establish a database on
the provenance and origin of
goods.8 months • To provide the
customs service
with the expertise
required in this field
to fulfil thecountry's
commitments.• Levels of
efficiency in
determining the
origin of goods.
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