RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/SPEC/RUS/9
12 May 1998
(98-1888)
Working Party on the Accession
of the Russian FederationOriginal:  English
ACCESSION OF THE RUSSIAN FEDERATION
Information on Customs Valuation and Procedures
Note by the Secretariat
This note, prepared by the Secretariat at the request of members of the Working Party,
purports to bring together all information on cust oms valuation methods and procedures available so
far to the Working Party on the accession of the Russian Federation to the WTO.
I. Legislation
At April 1998, the Working Party had before it the following legislation (reproduced in the
Annexes to this note) as an aid to its examination of customs valuation methods and procedures in the
Russian Federation:
- Law on No. 5003-1 of 21 May 1993 on Customs Tariff (with amendments of 21 August
1995) (Annex 1);
- Resolution No. 1461 of 7 December 1996 On the Procedure for Determining for Customs
Purposes the Value of Goods Exported From the Territory of the Russian Federation.  In
presenting this Resolution, the representative of the Russian Federation stated that Resolution
No. 1461 established new rules for the customs valuation of exported goods. These rulesconformed with the provisions and requirements of Article VII of GATT 1994 and the
corresponding interpreting WTO Agreement as closely as possible. (Annex 2);
- Procedure For Estimating the Customs Value of Goods Brought Into the Territory of the
Russian Federation (approved by the Government Resolution No. 856 of 5 November 1992)
(Annex 3);
- Order of the State Customs Committee of the Russian Federation No. 1 Concerning the
Customs Value of Goods Brought to the Russian Federation of 5 January 1994, (Annex 4);and
- Letter of the State Customs Committee of the Russian Federation No. 07-11/12510 On the
Delivery of Materials of 31 August 1995 (Annex 5).
II. Information provided by the Russian Federation
As a starting point, the representative of the Russian Federation provided members of the
Working Party with information on the customs valuation system in section 3.1.4 of the Memorandum
on the Foreign Trade Regime (L/7410).  In response to that information, members of the Working
Party posed questions, and the representative of the Russian Federation provided responses inWT/ACC/SPEC/RUS/9
Page 2
documents WT/ACC/RUS/2 (questions 182-185), WT/ACC/RUS/4 (questions 279-284);  and
WT/ACC/RUS/9/Add.1 (questions 49-52).
Following those preliminary exchange of views, and in response to requests that the Russian
Federation supply further information in the outline format on customs valuation contained in
Annex 4 to document WT/ACC/1, on 30 Augu st 1996 in document WT/ACC/RUS/14 the
representative of the Russian Federation provided the Working Party with the additional information
reproduced below.
Implementation and Administration of the Customs Valuation Agreement
(WT/ACC/RUS/14)
The Russian Federation customs authorities in their practical work are governed by Russian
legislation, which currently does not include the obligations of the WTO Agreement onImplementation of Article VII, GATT, 1994, Rules on Customs Valuation (WTO Customs Valuation
Agreement).  Therefore, rather than describing how any provisions of the WTO Customs ValuationAgreement are being implemented, this response to the questionnaire more correctly describes how
similar obligations are already imposed by Russian legislation.
1. Questions concerning Article 1 [of the Customs Valuation Agreement]:(a) Sales between related persons:(i) Are sales between related persons subject to special provisions?
Article 19.2(d) of the Russian Law On Customs Tariff No. 5003-1 of 21 May 1993 (the
Russian Federation Law) does include special provisions for valuing sales between mutuallydependant (“related”) persons.  The method of determining the value of imported goods on the basis
of the transaction value (method 1) in sales betwee n mutually dependant persons is still however used
when the declarer (importer) demonstrates that his relationship with the seller of the goods has not
influenced the transaction price.  The rules for applying transaction value (method 1) under Russian
Federation Law correspond to the rules established by Article 1 of the WTO Customs Valuation
Agreement.
(ii) Is the fact of intercompany prices prima facie considered as grounds for regarding the
respective prices as being influenced?
Article 19.2(d) of the Russian Federation Law identifies a number of relationships in which
common ownership or control requires the declarant to prove that mutual dependence has not
influenced the value of the deal.
(iii) What is the provision for giving the communication of the aforementioned grounds in
writing if the importer so requests? (Article 1.2(a) [of the Customs ValuationAgreement])
Article 16.3 of the Russian Federation Law requires the customs administration to provide a
written communication of the grounds for refusing to accept the customs value as declared by the
importer if the importer so requests.
(iv) How has Article 1.2(b)  [of the Custom s Valuation Agreement] been implemented?
Article 19.1 of the Russian Federation Law states the general rule that the customs value of
goods imported to Russian customs territory shall be “the price of the deal that has actually been paidor is subject to be paid” (transaction value).  Article 19.2(d) of the Russian Federation Law states an
exception where this (transaction value) method may not be used when the parties to the transactionare “mutually dependent persons” (related persons), and then a reservation to this exception when the
declarant can prove that mutual dependence has not influenced the value of the deal:WT/ACC/SPEC/RUS/9
Page 3
19.2 The said method may not be used to determine the customs value of the goods if:
- the parties to the transaction are mutually dependent persons with the exception of
cases where mutual dependence has not influenced the value of a deal, which shall be
proved by the declarant. 
Verification includes the possibility of the declarant/importer providing comparison prices of
identical or similar goods with the suspect prices.
(b) Price of lost or damaged goods:
Are there any special provisions or practi cal arrangements concerning the valuation of
lost or damaged goods?
Existing procedures allow for the possible adjustment of the customs value of lost or damaged
goods.  Such adjustment is made pursuant to the Regulations on the Procedure and Conditions for
Declaring the Customs Value of Goods Imported Onto the Customs Territory of the Russian
Federation, which have been approved by Order No. 1 of the Russian State Customs Committee,dated 5 January 1994, and registered with the Russian Ministry of Justice.  The Supplement No. 3 to
these regulations contain temporary instructions for completing forms CCV-1 and CCV-2 which
explain in detail the procedures to be followed du ring the final determination of the goods’ customs
value on the basis of additional information submitted by the declarant.  Such information could
include a change in the customs value’s size and structure, or a deduction in the price paid or to bepaid.
2. How has the provision of Article 4  [of th e Customs Valuation Agreement] to allow the
importer an option to reverse the order of application of Articles 5 and 6 been
implemented?
The provision of Article 4 of the WTO Customs Valuation Agreement which allows the
importer an option to reverse the order of application of Articles 5 and 6 of the WTO Customs
Valuation Agreement is reflected in Article 18 of the Russian Federation Law.
3. How has Article 5.2  [of the Customs Valuation Agreement] been implemented?
The provision of Article 5.2 of the WTO Customs Valuation Agreement is reflected in
Article 22.4 of the Russian Federation Law.
4. How has Article 6.2  [of the Customs Valuation Agreement] been implemented?
Customs procedures in the Russian Federation do not provide for compelling the producer to
produce cost estimates for the purpose of valuing his goods if the producer does not agree to make
such estimates available (see the previously referenced Regulations on the Procedure and Conditions
for Declaring the Customs Value of Goods Imported Onto the Customs Territory of the RussianFederation).
5. Questions concerning Article 7 [of the Customs Valuation Agreement]:
(a) What provisions have been made for making value determinations pursuant to
Article 7?
Articles 18 through 23 of the Russian Federation Law establish the methods and procedures
for determining the customs value of goods.  If the customs value of goods cannot be determined as a
result of such methods, the customs value shall be determined with due regard for world practice.  InWT/ACC/SPEC/RUS/9
Page 4
addition, upon its accession to the WTO, the obligations of the WTO Customs Valuation Agreement
will specifically apply in the Russian Federation.
(b) What is the provision for informing the importer of the customs value determined under
Article 7?
Issues concerning notification to importers are regulated by Article 16.3. of the Russian
Federation Law.
(c) Are the prohibitions found in Article 7.2 [of the Customs Valuation Agreement]
delineated?
Article 24.2 of the Russian Federation Law, just as Article 7.2. of the WTO Customs
Valuation Agreement, makes requirements on price criteria for the valuation of goods using method 6.
Regulatory documents issued by the Russian State Customs Committee explain those provisions
which have in practice led to disputes.
6. How have the options found in Article 8.2  [of the Customs Valuation Agreement] been
handled?  In the case of f.o.b. application are ex-factory prices also accepted?
According to Article 19.1(a) of the Russian Federation Law, the customs value of imported
goods includes expenses for the transportation of the goods to the airport, port, or any other place of
importation onto the customs territory of the Russian Federation. These expenses comprise: the cost
of transport; loading, unloading, handling, and transshipment charges; and the cost of insurance. If thegoods are, in accordance with the delivery terms as established in the foreign trade contract (EXW,
FCA, FOB port of the country of exportation), deem ed delivered prior to the place of importation, the
transaction price is adjusted for the corresponding transportation expenses according to Article 19.1(a)
of the Russian Federation law.
7. Where is the rate of exchange published, as required by Article 9.1 [of the Customs
Valuation Agreement]?
The rate of exchange quoted by the Central Bank of the Russian Federation is published in the
national daily Izvestia.
8. What steps have been taken to ensure confid entiality, as required by Article 10 [of the
Customs Valuation Agreement]?
The confidentiality of information provided when declaring the customs value of goods is
ensured by Article 14 of the Russian Federation Law and Article 16 of the Customs Code of the
Russian Federation.
9. Questions concerning Article 11 [of the Customs Valuation Agreement]:
(a) What rights of appeal are open to the importer or any other person?(b) How is he to be informed of his right to further appeal?
Article 16.3 of the Russian Federation Law, and Article 2.9 of the previously referenced
Regulations on the Procedure and Conditions fo r Declaring the Customs Value of Goods Imported
Onto the Customs Territory of the Russian Federation, provide that the declarant may request in
writing that the customs office explain why it has not accepted the declarant’s customs value.
Article 16.3 of the Russian Federation Law provides that the Russian customs agency receiving such a
written request shall be obliged to provide a written explanation of the reasons why the customs valuedeclared by the declarant cannot be accepted by the customs agency.WT/ACC/SPEC/RUS/9
Page 5
Article 16.4 of the Russian Federation Law stipulates that, should the importer disagree with a
value determination by a customs authority of the Russian Federation, he may lodge an appeal inaccordance with the procedure established by the Customs Code of the Russian Federation.
Article 407 requires the initial appeal to be filed with the higher customs administration of the
Russian Federation, while Article 416 stipulates that should this appeal be turned down, the importer
may further appeal to court.
10. Provide information on the publication, as required by Article 12 [of the Customs
Valuation Agreement], of:
(a) (i) the relevant national laws;
(ii) the regulations concerning th e application of the Agreement;
(iii) the judicial decision and administrative rulings of general application relating to
the Agreement;
(iv) general or specific laws being referr ed to in the rules of implementation or
application.
The existing procedures provide for the publication of all legislative acts of the Russian
Federation and regulatory legal acts of the Russian State Customs Committee.  The RussianFederation Law is uniformly applied for the entire territory of the Russian Federation and sets up a
single system of customs valuation methods.  The State Customs Committee of the RussianFederation is taking the necessary measures to ensure a uniform and proper application of these
provisions both by customs officials, businessmen and specialized organizations.  A number of
textbooks on customs affairs are being developed and published, including special sections about
customs valuation.  All the standard documents on customs valuation with respect to foreign trade are
subject to registration with the Ministry of Justice of the Russian Federation and to compulsorypublication in the mass media before they become effective.
(b) Is the publication of further rules anticipated? What topics would they cover?
The Russian State Customs Committee continues updating customs regulations regarding
customs valuation matters on a number of issues.  All newly-adopted regulatory legal acts must at alltimes be published.
11. Questions concerning Article 13[of the Customs Valuation Agreement] :(a) How is the obligation of Article 13 (last sentence) being dealt with in the respective
legislation?
The provision of Article 13 of the Customs Valuation Agreement is reflected in Article 15.3
of the Russian Federation Law.
(b) Have additional explanations been laid down?
Additional explanations regarding Article 13 of the Customs Valuation Agreement are set
forth in the previously referenced Regulations on the Procedure and Conditions for Declaring the
Customs Value of Goods Imported Onto the Customs Territory of the Russian Federation.
12. Questions concerning Article 16[of the Customs Valuation Agreement]:
(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?
Article 16.3 of the Russian Federation Law contains a provision requiring customs authorities
to give an explanation in writing as to how the customs value was determined.WT/ACC/SPEC/RUS/9
Page 6
(b) Are there any further regulations co ncerning an above-mentioned request?
Since the Russian Federation Law only recently came into effect on 1 July 1993, there has
been no need so far to issue such additional regula tory acts for the practical work of Russian customs
authorities.
13. How have the Interpretative Note s of the Agreement been included?
A number of provisions contained in the Notes to the Customs Valuation Agreement have
been included in the Russian Law On Customs Tariff and the previously referenced Regulations onthe Procedure and Conditions for Declaring the Customs Value of Goods Imported Onto the Customs
Territory of the Russian Federation.
14. How have the provisions of the Decision of 26 April 1984 on the Treatment of Interest
Charges in the Customs Value of Imported Goods (Val/6/Rev.1) been implemented?
15. For those countries applying paragraph 2 of the Decision of 24 September 1984 on the
Valuation of Carrier Media Bearing Softwa re for Data Processing Equipment (Val/8),
how have the provisions of this paragraph been implemented?
There are as yet no special provisions in Russian legislation regarding the matters addressed
in the Decision of 26 April 1984 on the Treatment of Interest Charges in the Customs Value ofImported Goods (VAL/6/Rev.1) nor paragraph 2 of the Decision of 24 September 1984 on the
Valuation of Carrier Media Bearing Software for Data Processing Equipment (Val/8).
III. Discussion
In response to the information submitted in document WT/ACC/RUS/14 in section II above,
the Working Party carried out further examination of this matter, which is reflected in the Russian
Federation's replies to follow-up questions set out below.
Question 1.
We are concerned how the Russian Government  will implement the WTO rules on customs
valuation.  Will the Russian Government make amendments to their domestic laws andregulations on customs valuation to make the Russian customs valuation systems consistent with
the WTO Agreement?  Or, will the WTO Customs Valuation Agreement be directly applied in
Russia?  [Question 18 of document WT/ACC/RUS/17]
Answer
In accordance with Clause 4 of Article 15 of the Constitution of the Russian Federation,
generally recognized norms of international law and international agreements to which the Russian
Federation is a party form part and parcel of its legal system and, in the event of a conflict between
rules stipulated by an international treaty and those established by internal legislation of the RussianFederation, the rules set forth in the international treaty prevail.
Pursuant to Article 5 of the Russian Federation Law No. 101-FZ “On International
Agreements of the Russian Federation” dated 15 July 1995 rules which have been established by an
international agreement and officially published in the Russian Federation, to which the RussianFederation is a party, have direct application throughout the Russian Federation unless it is required
that internal regulatory legal acts be issued  to govern their enforcement; for other rules ofWT/ACC/SPEC/RUS/9
Page 7
international agreements to apply, corresponding legal acts need to be adopted (in keeping with
Article 34 and Section 5 of the Russian Federation Law “On International Agreements of the Russian
Federation”). See also, answer 98 of WT/ACC/RUS/13/Add.1.
Finally, Article 38 of the Russian Law on Customs Tariff No. 5003-1 of 21 May 1993
specifically provides that if an international agreement, to which Russia is a party, establishes
different norms other than those laid down hereunde r, the norms established by such international
agreement shall prevail.
The Russian Federation is not yet a member of the WTO, however upon the entry into force
of this treaty, the terms set forth in the international treaty will prevail.  As far as customs valuation is
concerned, work is under way to update existing customs legislation, including changes which take
account of WTO rules on customs valuation. The Russian Federation will amend inconsistent
domestic laws and regulations to ensure fulfilment of the provisions of the international agreement,
and to reduce the confusion in the application and enforcement of such other laws within the territoryof the Russian Federation.
Question 2.
Russia has stated that Article 15(2) of the Customs Law states that the importer has the right to
prove that the relationship has had no impact on  the transaction value.  Information on prices
of similar or identical goods supported by relevant documents can be used in this case.[Question 19 of document WT/ACC/RUS/17]
Answer
Yes, this statement is correct.  In cases where the acceptability for customs valuation purposes
using the transaction value method one in a sale between related parties is questioned by the customs
administration, the importer may confirm that the relationship did not influence the transaction value,by demonstrating that such value closely approximates one of the following occurring at or about the
same time as the sale of the goods being valued:
- the transaction value in sales between unrelated buyers and sellers of identical or similar
goods for export to the Russian Federation; or
- the customs value of identical or similar goods as determined under Articles 22 and 23 of the
Customs Tariff Law.
When comparing the above test values, due account is taken of the actual differences in
commercial levels and quantity levels, as well as the additional value components listed in Article
19(1) of the Customs Tariff Law.
Question 3.
This response does not completely answer the question.  Article 15, paragraph 2 of the Law
deals with the obligation of the declarer to supply information proving valuation.  It does not
address the criteria stipulated in Article 1.2(b)  of the Customs Valuation Agreement which list
the conditions under which transaction value may be applied in a sale between related persons.
[Question 20  of document WT/ACC/RUS/17]WT/ACC/SPEC/RUS/9
Page 8
Answer
The principal criteria for allowing the application of transaction value method one in a sale
between related parties is set forth in Article 19(2) of the Customs Tariff Law, which says that method
one may not be applied for customs valuation purposes if the parties to a transaction are related,
except where their relationship did not impact the transaction value, something which the declarer
should prove.
The Customs Tariff Law does not establish any special restrictions on how the importer can
demonstrate the absence of such impact. The use of the above test values for comparison with the
transaction value in a sale between related parties follows from the logic of the Customs Tariff Law,
and is indeed accepted in practice (See also the answer to question 19 herein).
Question 4.
While Article 19(1) of Russia's Customs Law states that the customs value of goods import to
Russian custom territory shall be the transaction value, Article 19(2) of the Law says that this
method may not be used where the related partie s are concerned “with the exception of cases
where mutual dependence has not influenced the value of a deal, which shall be proved by the
declarant”.  This would appear to establish th at there is a legal presumption that the use of
transaction value for the customs valuation of tr ade between related parties is not automatically
acceptable.  [Question 21 of document WT/ACC/RUS/17]
Answer
The Customs Valuation Agreement does not provide for a legal presumption that the use of
transaction value for the customs valuation of trade between related parties is automatically
acceptable.  Instead, Article 1.2(a) of the Customs Valuation Agreement requires that:
“...in such (related party) case(s) the circumstances surrounding the sale shall be
examined and the transaction value shall be accepted provided  that the relationship
did not influence the price”.In the opinion of the Russian Delegation, the inclusion in the Customs Valuation Agreement
of this condition, for the customs valuation of tr ade between related parties, rules out the automatic
application of the transaction value for the purpose.   It therefore follows from Article 15(2) of the
Russian Law on Customs Tariff No. 5003-1 of 21 May 1993, "where the declared customs value
needs to be confirmed," i.e. where the transaction value made the customs administration doubt its
acceptability for customs valuation using method one, the customs administration may require thatsupporting documents be presented.  In the absence of such documents, the declarer uses methods two
to six for customs valuation purposes.
If the declarer needs additional time to supply  the required data, the Article 15(3) of the
Russian Law on Customs Tariff No. 5003-1 of 21 May 1993 envisages the possible use of a special
procedure (the provision of goods for use against a pledge of assets or a guarantee of an authorized
bank pursuant to legislation of the Russian Federation, or the payment of customs dues in accordance
with the customs value of the goods as determined by the customs administration of the Russian
Federation) if the declarer wishes such procedure to be invoked.
The data which is usually used to demonstrate that the relationship between a buyer and a
seller did not influence the transaction value in a sa le between them is described in answer 19 herein.WT/ACC/SPEC/RUS/9
Page 9
Question 5.
Please provide clarification of how this measure is consistent with Article 1.2a of the Customs
Valuation Agreement, which specifically states th at “the fact that the buyer and the seller are
related within the meaning of Article 15 shall not in itself be grounds for regarding the
transaction value as unacceptable.”  [Question 22 of document WT/ACC/RUS/17]
Answer
See the answers to questions 19-21 herein.  In addition, the approach of the Russian
Federation is similar to other developed WTO Members’ law and regulations which provide that the
transaction value between a related buyer and seller is acceptable if an examination of the
circumstances of the sale indicates that their relationship did not influence the price paid or payable.
Where Customs authorities in other developed WTO Member countries do have doubts about the
acceptability of the price and are unable to accept the transaction value without further inquiry, the
importer is given an opportunity to supply such further detailed information as may be necessary toenable Customs to examine relevant aspects of the transaction.
The approach is also in accord with the WTO Decision Regarding Cases Where Customs
Administrations Have Reason to Doubt the Truth or  Accuracy of the Declared Value which provides
that where the customs administration has reason to doubt the truth or accuracy of the particulars, the
importer may be asked to provide further explanation, and if after receiving further information, or inthe absence of a response, the customs administration still has reasonable doubts about the truth or
accuracy of the declared value, it may be deemed that the customs value of the imported goods cannot
be determined under the provisions of Article 1 of the Agreement on Implementation of Article VII of
the General Agreement on Tariffs and Trade - 1994.
Question 6.
Please clarify if, in a sale between related persons, the transaction value shall be accepted and
the goods valued in accordance wi th the method set forth in Article 19(1) whenever the importer
demonstrates that such value closely approximat es to the conditions set forth in Article 1.2b of
the Customs Valuation Agreement.  [Question 23 of document WT/ACC/RUS/17]
Answer
According to Article 19(2) of the Russian Law on Customs Tariff No. 5003-1 of
21 May 1993, where the parties to a transaction are related, but the importer demonstrates that their
relationship did not impact the transaction value, the goods are to be valued under Article 19(1) of the
Law (provided that there are no other restrictions on the use of method one as imposed by
Article 19(2) of the Law).
Question 7.
Please provide specific examples of what “pro of” is otherwise acceptable to show that the
relationship has had no impact on the customs transaction at issue.  [Question 24 of document
WT/ACC/RUS/17]
Answer
As noted in the Russian response to the Customs Valuation Questionnaire, WT/ACC/RUS/14
at 1(a)(iv), verification of the transaction value includes the possibility of the declarant providingcomparison prices of identical or similar goods.WT/ACC/SPEC/RUS/9
Page 10
See also the answer to question 19 herein.
Question 8.
Provisions regarding lost or damaged goods - Russ ia has existing procedures to allow for the
possible adjustment of the customs value of lost  or damaged goods.  We appreciate the citation
of the law regarding the possible adjustment of the customs value of lost or damaged goods.
[Question 25 of document WT/ACC/RUS/17]
Answer
See the answer to question 26 herein.
Question 9.
Please briefly describe the guidance set forth in  the applicable regulations or legislation that
provides in what cases and in what manner an importer can adjust the customs value for lost ordamaged merchandise.   [Question 26 of document WT/ACC/RUS/17]
Answer
The Order of the State Customs Committee of the Russian Federation No. 1 of
5 January 1994 “Concerning the Customs Value of Goods Brought to the Russian Federation”includes Supplement No. 2 the Rules of Filing a Customs Value Declaration as per Form DCV-1
which provides in relevant part:
- If in the process of effecting customs formalities, discrepancies emerge between the data on
the quantity and/or quality of the goods actually established by customs inspectors, thesedifferences shall be recorded as due.  However, only the initial value of goods shall be
included in the declaration.  The goods’ customs value shall be recalculated, the customs
declaration specified as indicated by Provisions’ rules (Item 2.9) and payments finalized as
per the declarant’s written application after it settles claims with the person responsible forthe discrepancy established (the seller, carrier or insurer).
- If a commodity was lost or spoiled prior to decl aring its customs value, its initial invoice price
may be reduced as dictated by the size of the spoilage or loss only if the declarant submits to
the customs office concerned documents to confirm the spoilage (loss) and the satisfaction ofthe spoilage-loss-related claims by the persons responsible for the preservation of the said
goods (the seller, carrier or insurer).
This Order also includes Supplement No. 3 Temporary Instructions for Filing Form CCV-1
and Form CCV-2 for the purpose of correcting the goods’ customs value during the final
determination of the goods’ customs value on the basis of additional information submitted by the
declarant or (in the absence of such information) in the course of the goods’ evaluation by a customs
office  (see Article 11 of the Customs Code on the status of regulatory acts of the State Customs
Committee of the Russian Federation).
Question 10.Implementation of provision of Article 4 to allo w the importer an option to reverse the order of
application of Articles 5 and 6 - Please clarify how the Customs Law ensures that only theWT/ACC/SPEC/RUS/9
Page 11
importer can request reversal the order of application of customs valuation methods set out in
Articles 5 and 6 of the Agreement  [Question 27 of document WT/ACC/RUS/17]
Answer
Under Article 13 of the Russian Law on Customs Tariff No. 5003-1 of 21 May 1993, the
customs value is initially declared and determined by the declarant. Accordingly, the provision in
Article 18(2) of the Law to the effect that the methods of value subtraction and value summation may
be applied in any order presupposes the choice of the use of these methods primarily by the declarer.
Question 11.
Implementation of Article 6.2 - Russia notes that the Regulations on the Procedure and
Conditions for Declaring the Customs Value of Goods Imported Onto the Customs Territory of
the Russian Federation implements Article 6.2.
What is the specific article in these regulations  that provide for implementation of Article 6.2?
[Question 28 of document WT/ACC/RUS/17]
Answer
According to Article 13 of the Russian Law on Customs Tariff No. 5003-1 of 21 May 1993,
the customs value is declared to the customs administration by the declarant, and only Russian parties
may be declarants under Article 172 of the Customs Code of the Russian Federation. Consequently,
any and all demands for the presentation of documented proof of declared customs values, as listed inprovisions 2.4 and 2.5 of the Regulations on the Procedure and Conditions for Declaring the Customs
Value of Goods Imported Onto the Customs Territory of the Russian Federation, may be made by
Russian customs authorities only to Russian declarants.
Question 12.
Article 7 - The provision in Russia’s customs law that requires “due regard for world practice”
does not actually mandate that the methods and procedures for determining the customs value
of goods contained in Article 7 of the Valuation Agreement be used.
Will Russia revise its law to correspond with this part of Article 7?  [Question 29 of document
WT/ACC/RUS/17]
Answer
Section IV of the Customs Tariff Law is a virtual restatement of the corresponding provisions
of the Agreement on Implementation of Article VII of GATT on customs valuation methods. The
"world practice" referred to, therefore, is precise ly the practice of applying these methods, i.e. the
Agreement on Implementation of Article VII of GATT and the other applicable GATT/WTO
documents (see also the answers to questions 18 and 36 herein).
Question 13.
In addition, Russia states in its response to question 5(c) regarding the delineation of the
prohibitions found in Article 7.2 that the Customs Law makes requirements on price criteria for
the valuation of goods using method 6.WT/ACC/SPEC/RUS/9
Page 12
Has Russia's Customs Law been amended to include the prohibited prices as a basis for
determining valuation it omitted in its passage in May 1993, including (b) a system which
provides for the acceptance for customs purposes of  the higher of two alternative values, (d) the
cost of production other than computed valu es which has been determined for identical or
similar goods in accordance with he provisions of Article 6, and (f) minimum customs values?  If
not, when will the law be amended to be co nsistent with the Customs Valuation Agreement?
[Question 30 of document WT/ACC/RUS/17]
Answer
See the answer to question 18 herein.
Question 14.
Article 10 - Please clarify the specific measur es or circumstances “envisaged by Russian
legislative acts” that would nullify the commitment on confidentiality required in Article 10 of
the Agreement.  [Question 31 of document WT/ACC/RUS/17]
Answer
Such circumstances include judicial proceedings over customs matters, as well as
circumstances arising as a result of operations of other Russian law enforcement investigative
authorities (the Interior Ministry, the Federal Counter-Intelligence Service, the tax police, etc.) the
limits of whose competence are set by each of their applicable legislative acts of the RussianFederation.
Question 15.
Interpretive Notes - Please provide citation of Russian legislation or regulations that
incorporate the provision of the Interpretive Note s in Russia’s law.  Where such citations are
not possible, please discuss how the necessary changes will be made to ensure that they are dealtwith in the same manner as the other provision s of the Agreement.  [Question 32 of document
WT/ACC/RUS/17]
Answer
The citations of the Russian legislation and regulations which incorporate the provisions of
the Interpretative Notes into Russian law are as follows:
- Law No. 5003-1 “On The Customs Tariff” of 21 May 1993 (as amended); and
- Resolution of the Government of the Russian  Federation No. 856 “On The Approval Of The
Procedure For Estimating The Customs Value Of Goods Brought Into The Territory of the
Russian Federation” dated 5 November 1992.
The provisions of Item 3 of the Interpretative Note to Article 1 on the costs and expenses
which are not included in the customs value are reflected in the Instructions on the Completion of a
Customs Value Declaration (Section C). All the other notes will likewise be gradually taken into
account in regulatory acts of the State Customs Committee of the Russian Federation (see also
Answer 18 herein).WT/ACC/SPEC/RUS/9
Page 13
Question 16.
Implementation of Decision of 26 April 1984 on  Treatment of Interest Charges in the Customs
Value of Imported Goods - Currently there are no provisions regarding this decision.  What, if
any, are Russia’s plans to implement this decision?  [Question 33 of document
WT/ACC/RUS/17]
Answer
See the answer to question 18 herein.
Question 17.
Paragraph 2 of the 1984 Decision on Valuation of Carrier Media Bearing Software - Currently
there are no provisions regarding this decision.  What, if any are Russia’s plans to implement
this decision?  [Question 34 of document WT/ACC/RUS/17]
Answer
See the answer to question 35 herein
Question 18.
We seek Russia's agreement to implement this d ecision in favour of valuing the import based on
the cost of the media, not the software it contains.  [Question 35 of document WT/ACC/RUS/17]
Answer
The 1984 Decision of the Technical Committee under the Customs Cooperation Council on
the valuation of carrier media bearing software does not stipulate its obligatory enforcement by all
member countries. The Russian Federation applies general provisions set forth in the Agreement on
Implementation of Article VII of GATT for the valuation of software products, and its related
regulations are fully consistent with this Agreement.   It therefore appears more proper to examine the
issue of implementing Paragraph 2 of the Technical Committee's 1984 Decision as part ofnegotiations on trade concessions, rather than as part of an evaluation of how consistent Russian
legislation on customs valuation is with the GATT/WTO Customs Valuation Agreement.
Question 19.
In its response to Question 5(a) in Document WT/ACC/RUS/14, in relation to value
determinations made pursuant to Article 7, the Russian Federation states that "the customsvalue shall be determined with due regard for world practice".
Can the Russian Federation explain what is this world practice?  [Question 36 of document
WT/ACC/RUS/17]
Answer
An explanation regarding the provisions of Article 24(1) of the Customs Tariff Law has been
provided by the Customs Tariff Department of the State Customs Committee of the Russian
Federation in its Letter of Instruction No. 07/11/12510, dated 31 August 1995, which states in
relevant part:WT/ACC/SPEC/RUS/9
Page 14
"World practice treats method six as a flexible use of the preceding valuation
methods. This is why it is necessary, when using this method, to observe all the basic
principles of customs valuation which relate to the application of methods one
through five".
This explanation is in line with Notes 1-2 to Article 7 of the Customs Valuation Agreement (see also
Answer 18 and 29 herein).
Question 20.
The reply to Question 5(c)-Prohibitions found in  Article 7.2 of the WTO Agreement- states that
Russian Federation Law "makes requirements on price criteria for the valuation of goods using
method 6".
Can the Russian Federation provide further details and examples, or, if contained in the
"regulatory documents" issued by the State Cu stoms Committee, which specific documents are
relevant?  [Question 37 of document WT/ACC/RUS/17]
Answer
Such  requirements are made in a letter of the Customs Tariff Department of the State
Customs Committee of the Russian Federation mentioned in Answer 36, which states in relevant part:
“...the following may be used as the basis for customs valuation when determining
the customs value by means of method six:
- the customs value of identical or similar goods, or goods of the same class or
kind, accepted by the customs administration and meeting established
requirements (in this case, method six is used on the basis of methods one,
two, or three);
- the value of imported identical or similar goods, or goods of the same class or
kind, at which they are sold on the domestic market of the Russian Federation
and which shall be adjusted for permitted deductions (method six on the basis
of method four); or
- value data from neutral sources of information (catalogues of independent
firms like Eurotax, OTTO, etc.; publications containing detailed descriptionsof specific goods and clear-cut definitions of value structures; published or
mailed-in official price lists for goods or firms' commercial offers to supply
specific goods at specific prices, as well as exchange price quotations).
Where data regarding other transactions, as well as permitted value data, is used as
part of method six, it shall be required to take into account the underlying, initialconditions of specific transactions (such as quantities of goods being purchased and
their commercial sale levels, price discounts, and contractual terms for deliveries and
payments). Requirements for the composition of costs included in the customs value
(Articles 19, 22, and 23 of the Russian Federation Law 'On the Customs Tariff') also
must be fulfilled.
One common requirement for all source value data used for customs valuation under
Method Six shall be its narrowly targeted use, meaning that values (prices) must referto specific goods described in a manner making it possible to identify themWT/ACC/SPEC/RUS/9
Page 15
unequivocally (commercial name of the goods, their description as an assortment,
data regarding the producer firm, materials, technical parameters, and other
characteristics depending on the category of the goods).
Customs valuation according to method six shall, therefore, be based on real,
substantiated value data, unless its use contradicts requirements set forth in
Article 24(2) of the Russian Federation Law 'On the Customs Tariff”.
Another obligatory requirement during the use of method six shall be ensuring the maximum
possible similarity of goods (meaning that where possible analogues are being considered for
comparing the values of goods, first identical goods and then similar goods shall be selected or, in
their absence, goods of the same class or kind shall be chosen).
It is in the light of the above requirements for value data and the selection of analogous goods
that one shall treat the provisions of Article 24(2) of the Russian Federation Law 'On the Customs
Tariff' which prohibits the use as the basis for customs valuation of 'the value of goods if arbitrarilyfixed or not confirmed by reliable evidence' (which happens if the choice of an analog for the
valuation of goods was made incorrectly). It shall thus not be permitted to use, for customs valuation
purposes under method six, any mean data for generalized categories of goods (women's footwear,
men's suits, perfumes, grape wine, etc.).
Question 21.
With respect to the replies to Questions 14 a nd 15, could the Russian Federation indicate when
the provisions referred to in these questions will be addressed? [Question 38 of document
WT/ACC/RUS/17]
Answer
See the answers to questions 33 to 35 herein.WT/ACC/SPEC/RUS/9
Page 16
Annex 1
LAW OF THE RUSSIAN FEDERATION
NO. 5003-1 OF 21 MAY 1993
ON THE CUSTOMS TARIFF1
(with the additions and amendments of 7 August 1995)
SECTION III. CUSTOMS VALUE OF GOODS
Article 12. The System of Determining Customs Value
1. The system for determining the customs value (customs valuation) of goods shall be based on
the general principles of customs valuation accepted in international practice and applied to goods
imported to the Russian customs territory.
The procedure for customs valuation of goods imported to the Russian customs territory shall
be established by the Russian Government pursuant to the provisions of this Law.
Procedure for customs valuation of goods is established by the Decision of the Government of
the Russian Federation No. 856 of 5 November 1992.
2. The procedure for determining the customs value of goods exported from the Russian
customs territory shall be established by the Russian Government.
Article 13. Declaration of Customs Value of Goods
1. The customs value shall be declared by the declarer to the Russian customs agency when
moving goods across the Russian customs border.
The procedure for, and the terms and conditions of, the declaration of the customs value of
imported goods, including the form of the declaration, shall be established by the State Customs
Committee of Russia pursuant to Russian legislation.
2. The customs value of goods shall be determined by the declarant in accordance with such
methods for determining the customs value as are laid down hereunder.
Control over the accuracy of customs value determination shall be exercised by the Russian
customs agency clearing the goods.
Article 14. Confidential Information
Information submitted by the declarant of the customs value of goods and determined as a
commercial secret or confidential information may be used by the customs agencies exclusively for
the purposes of customs valuation but may not be passed on to third parties, including other state
bodies,  without express permission by the declarant, with the exception of cases envisaged by
Russian legislative acts.
                                                     
1 English only.  The translations of these laws into English are not official Russian Government
translations.  Readers should refer to the Russian language originals where necessary.WT/ACC/SPEC/RUS/9
Page 17
The Russian customs agency and its officials sh all be liable for divulging such information
constituting a commercial secret or is confidential pursuant to Russian legislation.
Article 15. Rights and Obligations of the Declarant
1. The customs value declared by the declarant and the data related to its determination shall  be
based on trustworthy, quantitatively defined, and documented information.
2. Should it be necessary to confirm the customs va lue declared by the declarant, the latter shall
be obliged, upon request from the Russian customs agency, to provide the requisite data.  Should the
customs agency have any doubts about the trustworthiness of the data submitted by the declarant for
customs valuation, the declarant shall have the right and be obliged to prove such data as accurate.
In the case of non-submission of proof confirming the accuracy of the data used by the
declarant, the customs agency shall be entitled to  decide on the impossibility of using the customs
valuation method  chosen by the declarant.
3. Should it be necessary to check the customs value of goods declared by the declarant, the
latter may ask the Russian customs agency to give the declared goods to him for use against pledged
property  or against a guarantee from an authorized bank pursuant to Russian legislation or pay
customs duties  in accordance with the customs valuation of goods by the Russian customs agency.
4. The extra expenses on the part of the declarant in connection with checking the customs value
declared thereby or with the provision of additional information to the Russian customs agency shallbe borne by the declarant.  In such case, the increased period of customs clearance of goods in
connection with the customs valuation may not be used by the declarant to obtain an actual respite for
paying the duty on goods.
Article 16. Rights and Obligations of Customs Agency
1. The customs agency exercising control over the accuracy of customs valuation of goods may
decide on the accuracy of such customs value of the goods as has been declared by the declarant with
due regard to the provisions of Article 15 of this Law.
2. In the absence of data confirming the accuracy of the customs value declared by the declarant
or in the presence of grounds for believing that the data submitted by the declarant are not accurate
and/or sufficient, the Russian customs agency may independently determine the customs value of thedeclared goods, by successively using such methods for determining the customs value as are
established hereunder, on the basis of the data available thereto (including information about the
prices of identical or homogeneous goods (with adjustments in accordance with this Law).
3. The Russian customs agency receiving a written request by the declarant shall be obliged to
provide the same within three months with a written explanation of the reasons why the customs valuedeclared by the declarant cannot be accepted by the customs agency as the base for assessing duties.
4. Should the declarant disagree with the Russian customs agency's decision as regards
determination of the customs value of goods, such decision may be protested in accordance with such
procedure as  is established by the Customs Code of the Russian Federation.WT/ACC/SPEC/RUS/9
Page 18
Article 17. Duty Assessment, Payment and Exaction
1. Duties on goods shall be assessed, paid and exacted based on the customs value of such goods
pursuant to the Customs Code of the Russian Federation.
2. Such duties shall be paid to the Republican budget of Russia.
SECTION IV. METHODS FOR DETERMINING CUSTOMS VALUE OF GOODS AND
PROCEDURE FOR APPLYING SUCH METHODS
On methods of customs valuation of goods see also Procedure for Estimating the Customs Value of
Goods Brought into the Territory of the Russian Federation approved by the Decision of the
Government of the Russian Federation No. 856 of 5 November 1992.
Article 18. Methods for Determining Customs Value
1. The customs value of goods imported to Russian customs territory shall be determined by the
following methods:
- the method based on the value of the deal with imported goods;
- the method based on the value of the deal with identical goods;
- the method based on the value of the deal involving homogeneous goods;
- value subtraction;
- value addition; and
- the reserve method.
2. The principal method for determining the customs value shall be the one based on the value
of the deal involving imported goods.
If the principal method cannot be used, consecutive use shall be made of each of the other
methods listed in Item 1 of this Article.  In such case, each successive method shall be used if the
customs value cannot be determined by means of the previous method.
The methods of value subtraction and addition may be used in any succession.
Article 19. The Method Based on the Value of Deals with Imported Goods
1. The customs value of goods imported to Russian customs territory shall be the price of the
deal that has been actually paid or is subject to be paid for imported goods at the moment they cross
the Russian customs border (before they reach a port or any other place of entry).
When determining the customs value, the pric e of the deal shall comprise the following
components unless these have been included therein before:
(a) expenses incurred to deliver goods to the airport, port or another place of entry of goods to
Russian customs territory:
- transportation costs;
- expenses on loading, unloading, handling and transshipment of goods; and
- insured amount;
(b) expenses borne by the buyer:WT/ACC/SPEC/RUS/9
Page 19
- commission and brokerage fees, save the commission for purchasing goods;
- the cost of containers and/or other reusable crates if they are regarded as a single
whole with goods being evaluated in k eeping with Goods Classification; and
- the cost of packaging, including the cost of packaging materials and packaging jobs;
(c) the appropriate part of the cost of the following goods and services provided by the customer
directly or indirectly for free charge or at a discount to be used in the manufacture or sale ofgoods being evaluated for export:
- raw and other materials, components, semi-finished products and other accessories
that are part and parcel of goods being evaluated;
- tools, dyes, module and like products used in the manufacture of goods being
evaluated;
- materials used in the manufacture of goods being evaluated (lubricants, fuel and
others); and
- engineering research, development, design, styling, sketching and drawing done
outside Russia and directly needed for the manufacture of goods being evaluated;
(d) license and other fees for the use of intellectual property assets that the customer has to effect
directly or indirectly as a condition for the sale of goods being evaluated; and
(e) part of the sellers' direct income from any subsequent resale, transfer or use of goods in the
Russian territory.
2. The said method may not be used to determine the customs value of goods if:
(a) There are restrictions with respect to the customer's rights and goods being evaluated other
than:
- such restrictions as are imposed by Russian legislation;
- Limitation of the geographical region where the goods may be resold; and
- such restrictions as do not affect the price of goods in any tangible manner;
(b) the sale and price of a deal depend on compliance with conditions the influence of which
cannot be registered;
(c) data used by the declarant in declaring the customs value are not documented or
quantitatively defined or trustworthy; and
(d) the parties to the transaction are mutually dependent persons with the exception of cases
where mutual dependence has not influenced the value of a deal, which shall be proved by the
declarant.  In such case, mutually dependent persons shall be understood to mean persons
fitting even one of the following characteristics:
- either party to the transaction (natural person) or an official of either parties to the
transaction is simultaneously the official of the other party;
- parties to the transaction are called co-owners of the enterprises;
- parties to the transaction are bound by employment arrangements;
- either party to the transaction is the holder of an ownership interest (equity) or of
voting shares in the authorized capital of the other party, constituting at least
5 per cent of such authorized capital;
- both parties to the transaction are under the direct or indirect control of a third party;
- the parties to the transaction jointly control, directly or indirectly, a third party;WT/ACC/SPEC/RUS/9
Page 20
- either party to the transaction is under the direct or indirect control of the other party;
and
- the parties to the transaction or their officials are relatives.
Article 20. The Method Based on the Value of Deals with Identical Goods
1. When using the assessment method based on the price of the deal involving identical goods,
the price of the deal involving identical goods sha ll be accepted as a basis for determining the customs
value of goods, provided that conditions set forth in this Article are met.  In such case, identical goods
shall be understood to mean goods which are the same as the goods being evaluated in every respect,
including the following aspects:
- physical characteristics;
- quality and reputation on the market;
- country of origin; and
- manufacturer.
Insignificant differences in external appearance may not serve as grounds for refusing to
regard goods as identical should such goods meet the requirements of this Item in every other respect.
2. The price of the deal with identical goods shall be accepted as a basis for determining the
customs value if such goods:
(a) have been sold to be brought to the Russian territory;(b) have been imported simultaneously with assessed goods or not earlier than 90 days prior to
the importation of goods being evaluated;  and
(c) have been imported on the same commercial terms and/or in about the same quantities.
Should the identical goods be imported in different quantities or on different commercial
terms, the  declarant shall appropriately adjust their prices with due regard for suchdifferences and confirm by documents the validity of such adjustments to the Russian
customs agency.
3. The  customs value determined on the basis of the value of a deal involving identical goods
shall be corrected with due regard for such expenditures as are indicated in Article 19 of this Law.
Such corrections shall be carried out by the declarant on the basis of trustworthy and
documented data.
4. Should, in the use of this method, more than one price of the deal with identical goods be
identified, the lowest of them shall be used to determine the customs value of goods being imported.
Article 21. The Method Based on the Value of Deals with  Homogenous Goods
1. When using the assessment method based on the value of the deal with homogenous goods,
the price of the deal involving goods similar to those being imported shall be accepted as a basis for
determining the customs value of such goods, provided the conditions set forth in this Article are met.
In such case, homogenous goods shall be understood to mean goods which, although they are not
alike in every respect, have similar characteristics and consist of similar components, this enabling
them to perform the same functions as the goods being evaluated and be mutually replaceable in
commercial terms.WT/ACC/SPEC/RUS/9
Page 21
The following criteria shall be taken into account when establishing the homogeneity of
goods:
- quality, presence of a trademark and reputation on the market; and
- country of origin.
2. When using the method of determining the customs value based on the price of the deal
involving homogenous goods the provisions of Item s 2-4 of Article 20 of this Law shall apply.
3. When using the methods of customs evaluation pursuant to Article 20 and this Article:
(a) goods shall not be regarded as identical or homogenous to those being evaluated if not
manufactured in the same country as goods being evaluated;
(b) goods produced not by the manufacturer of goods being evaluated, but by some other person
shall be considered only if there are neither identical nor homogenous goods produced by  the
person that has manufactured goods being evaluated; and
(c) goods shall not be regarded as identical or homogenous if the design, including artistic
design, development, sketching and drawing and like works on them have been performed in
Russia.
Article 22. The Method Based on Value Subtraction
1. The customs value shall be determined using the method based on value subtraction if
evaluated identical or homogenous goods shall be sold in Russia without any changes to their originalcondition.
2. When using the method of value subtraction as a basis for determining the customs value of
such goods, the price of a unit of goods, at which the largest batch of evaluated identical or
homogenous goods, shall be sold in the Russian territory no later than 90 days after the importation of
evaluated goods to the participant of the transaction, who is not a mutually dependent with the seller,shall be accepted.
3. The following components shall be subtracted from the price of the unit of the goods:
(a) expenses on commission fees, the usual mark-ups on profits and general expenditures
involved in the sale of imported goods of the same type and category in Russia;
(b) the amounts of import customs duties, taxes, dues and other payments due to payment in
Russia in connection with the import or sale of goods; and
(c) usual expenses for transportation, loading, unloading, and insurance incurred in Russia.WT/ACC/SPEC/RUS/9
Page 22
Annex 2
DECISION OF THE GOVERNMENT OF THE RUSSIAN FEDERATION
NO. 1461 OF 7 DECEMBER 1996
ON THE PROCEDURE FOR DETERMINING FOR CUSTOMS PURPOSES
THE VALUE OF GOODS EXPORTED FROM THE TERRITORY
OF THE RUSSIAN FEDERATION
On the basis of Article 12 of the Law of the Russian Federation on the Customs Tariff the
Government of the Russian Federation hereby resolves:
To approve the attached Procedure for Determining for Customs Purposes the Value of Goods
Exported from the Territory of the Russian Federation.
Chairman of the Government
of the Russian Federation V. ChernomyrdinWT/ACC/SPEC/RUS/9
Page 23
PROCEDURE
FOR DETERMINING FOR CUSTOMS PURPOSES THE VALUE OF GOODS EXPORTED
FROM THE TERRITORY OF THE RUSSIAN FEDERATION
(Approved by the Decision of the Government of the Russian Federation
No. 1461 of 7 December 1996)
1. Determination for customs purposes of the value of the goods exported from the customs
territory of the Russian Federation (hereinafter referred to as the exported goods) shall be performed
as applicable to Part III of the Law of the Russian Federation on the Customs Tariff.
The rules for the application of the present Procedure shall be established by the State
Customs Committee of the Russian Federation.
2. The value for customs purposes of the exported goods shall be determined on the basis of the
transaction price, i.e. the price actually paid or due to be paid when the goods are sold for export.
In the  value for customs purposes of the exported goods there shall also be included the
following expenses incurred by the buyer but not incl uded in the transaction price actually paid or due
to be paid:
(a) commission and broker's fee;
(b) cost of containers and/or other multiple-use tare, should it be considered as an integral part
with the exported goods per the  foreign economic activities goods nomenclature;
(c) cost of package including the cost of packing materials and packing works;
(d) appropriate part of the cost of the following goods and services provided by the buyer to the
seller free of charge or at a reduced price for the manufacturing or sale for export of the
exported goods:
- raw materials, materials, parts, semi-finished products and other components being an
integral part of the exported goods;
- tools, dies, moulds and other similar objects used for the manufacturing on the
exported goods;
- auxiliary materials spent in the manufacturing of the exported goods;
- engineering work-out, experiment and design work, artist design work, sketches and
drawings;
(e) licence and other payments for the use of intellectual property products which the buyer has
to effect directly or indirectly as a condition for the purchase of the exported goods;
(f) the part of the earnings coming to the seller directly or indirectly from the subsequent re-sale,
transfer or use by the buyer of the goods upon the exporting thereof from the customsterritory  of the Russian Federation;
(g) taxes (excluding the customs payments paid at declaring the value for customs purposes)
levied  on the customs territory of the Russian Federation, should under the tax legislation or
the international treaties of the Russian Federation they not be subject to be compensated to
the seller when the goods are exported from the customs territory of the Russian Federation.WT/ACC/SPEC/RUS/9
Page 24
3. Should there be no sale transaction in respect to the exported goods or the sale transaction
price cannot be used as the basis for determining the value for customs purposes, this value shall be
determined either proceeding from the exporting seller's accounting information submitted by
declarant which expresses the seller's expenses for the manufacturing and sale of the exported goods
as well as the amount of profit received by the exporter through exporting from the customs territory
of the Russian Federation identical or homogenous goods or on the basis of accounting informationabout  entering the exported goods on the balance sheet and writing them off the balance sheet.
When the value of the said  goods for customs purposes is being determined the expenses
specified under Subitems "a" - "g", Item 2 of the present Procedure shall be taken into account.
4. Should there be no possibility for using the information submitted by the declarant as
specified  under Item 3 of the present Procedure, the value of the exported goods for customs
purposes shall be determined either on the basis of information on the prices for identical or
homogenous goods or proceeding from calculation of the cost (production cost) of exported identicalor homogenous goods with account taken of the expenses specified under Subitems "a" - "g", Item 2
of the present Procedure.
When the determination in respect of identical or homogenous goods is being done it shall be
necessary to be governed by Articles 20 and 21 of the Law of the Russian Federation on the Customs
Tariffs.WT/ACC/SPEC/RUS/9
Page 25
Annex 3
PROCEDURE FOR ESTIMATING THE CUSTOMS VALUE OF
GOODS BROUGHT INTO THE TERRITORY OF THE RUSSIAN FEDERATION
(Approved by the Decision of the Government of the Russian Federation
No. 856 of 5 November 1992)
The Procedure for Determining for Customs Purpos es the Value of Goods Exported from  the
Territory of the Russian Federation was approved by Decision of the Government of the Russian
Federation No. 1461 of 7 December 1996.
I. General Provisions  (Items 1 - 7)
II. Methods of Estimating Customs Value and the Order of their Application  (Items 8 - 11)
III. The  Method  of  Valuation  of the Price of Imported Goods (Method 1)  (Items 12 - 15)
IV. The Method of Estimating the Price of Transactions with Identical Goods (Method 2)
(Items 16 - 22)
V. The Method of Estimating the Price of Transactions with Homogeneous Goods (Method 3)
(Items 23 - 25)
VI. The Method of Estimation on the Basis of Deducting Customs Value (Method 4) (Items 26 -
29)
VII. The Method of Estimation on the Basis of Adding Value (Method 5) (Items 30 - 31)VIII. The Reserve Method (Met hod 6)  (Items 32 - 33)
About goods to which the present Procedure applied to see Order of the State Customs
Committee of the Russian Federation No. 380 of 1 October 1993
I. GENERAL PROVISIONS
1. The present Procedure shall be applied to estimate the customs value of goods brought
(imported)  to the Russian Federation by juridical and natural persons.
2. The customs value of goods shall be used to determine the customs duty, dues and other
customs payments, to establish the value of goods for other customs purposes, including the
imposition of fines  and the application of other sanctions for customs offenses  provided  for by the
legislation of the Russian Federation, and to keep customs statistics.
3. The customs value of goods imported to the Russian Federation shall be estimated by the
declarant according to the rules of customs assessment provided for by the present Procedure
applicable in accordance with the general principles of the system of customs estimation of the
General Agreement on Tariffs and Trade (GATT).
A decision on the application of the method chosen by the declarant shall be taken by a
customs agency of the Russian Federation (hereinafter referred to as the customs agency) that
formalized cargo.
4. The customs value and information about its estimation, stated by the declarant, shall be
based  on the authentic and quantitatively determinable and documentarily confirmed data.  In the
absence  of such data the customs agencies shall have the right to make use of the information they
possess (information about prices for similar goods, including those contained in the catalogues of
trading firms and in other reference books) with the appropriate correction.WT/ACC/SPEC/RUS/9
Page 26
5. Information submitted by the declarant as a component of commercial secret or confidential
information may be used for customs purposes alone and may not be divulged, applied by officials of
customs agencies for personal purposes and transferred  to third persons, including other state organs,
without the declarant's special permission, with the exception of cases provided for by the legislation
of the Russian Federation.  For the divulgence of a commercial secret, the workers of customs
agencies  shall bear responsibility in accordance with the current legislation of the Russian Federation.
6. Should the need arise for the time, additional to that established by the customs legislation  of
the Russian Federation for estimating customs value, the declarant may apply to a customs agency
with the request that goods be given to him for use on the security of property, or the guarantee of  an
authorized bank in accordance with the statutory order of granting a delay in the payment of the
import duty.
7. All additional expenses of the declarant in connection with the specification of the customs
value declared  by him, or the submission of additional information to a customs agency, shall becharged to the declarant's account.
The increased period of customs clearance of cargo caused by the estimation of customs value
may not be used by the importer to delay the payment of customs duty.  As a result of the action or
inaction of the importer, a penal fine shall be exacted in the amount of 0.2 per cent of due payments
calculated by the customs agency from the final magnitude of the customs value of goods.
See the Procedure for Indisputable Exaction of Fines Collected by Customs Bodies of the
Russian Federation approved by Decision of the Government of the Russian Federation No. 801 of
12 July 1996.
II. METHODS OF ESTIMATING CUSTOMS VALUE AND THE ORDER OF THEIR
APPLICATION
8. The customs value of imported goods shall be estimated by the consecutive application of the
following methods of the valuation of:
(a) the price of transactions with imported goods (method 1);
(b) the price of transactions with identical goods (method 2);
(c) the price of transactions with homogeneous goods (method 3);(d) the deduction of value (method 4);
(e) the addition of value (method 5);
(f) the reserve method (method 6).
9. The valuation of the price of the transaction with imported goods shall be the main method of
estimating customs value (method 1).
If the main method cannot be used, one of the methods above-listed in Item 8 shall be applied.
Every method of customs value that follows further shall be applied, if customs value cannot be
estimated by using the previous method.
The methods of deduction and addition (methods 4 and 5) may be applied in reverse sequence
at the declarant's discretion.
10. The procedure for declaring the customs value of goods imported to the Russian Federation
and the form of the declaration shall be determined by the State Customs Committee of the RussianFederation. If there is a need to confirm the customs value of goods declared by the declarant, the
latter shall be obliged to submit, to the customs agency, information it requires. Should the customsWT/ACC/SPEC/RUS/9
Page 27
agency express doubts as to the authenticity of information submitted by the declarant to estimate the
customs value of goods, the declarant shall have the right and duty to prove such authenticity.  If no
evidence is submitted to confirm the authenticity of the data used by the declarant, the customs
agency shall have the right to adopt a decision that it is impossible to apply the method of valuation
chosen by the declarant.
At the written inquiry of the declarant, the customs agency shall be obliged, within a week, to
submit a written explanation why the customs value of goods estimated by the declarant may not be
accepted.
11. Should the declarant disagree with the decision of a customs agency, this decision may be
appealed against with a higher customs agency within 10 days from the time the declarant has
received this decision.
The decisions taken by the State Customs Committee of the Russian Federation on the
estimation of the customs value of goods imported to the Russian Federation, the interpretation andapplication of the rules of customs valuation shall be binding for execution.
III. THE METHOD OF VALUATION OF THE PRICE OF IMPORTED GOODS (METHOD 1)
12. The price of a direct transaction with imported goods subject to valuation shall be accepted as
a base for estimating customs value by method 1, if the terms of Item 15 of the present Procedure are
observed.
13. The price of a transaction shall be understood to mean both the price actually paid for and the
price subject to payment for imported goods.
14. In case of using the price of a transaction to estimate customs value, the latter shall include
the following expenses, unless they have been included in it earlier:
(a) expenses on the transportation of imported goods to the place of their customs clearance, viz.:
- expenses on loading, unloading, transshipment and keeping goods in storage;
- expenses on insurance;
- expenses on the payment of commission and other go-between remuneration;
- the value of containers in cases when they are regarded as a single whole with the
estimated goods in accordance with Commodity Classification for foreign economicactivity;
(b) the value of packing, including the value of packing material and packaging operations
(c) the corresponding part of the value of the following goods (works, services) which were given
the purpose of using the estimated goods for production or sale (alienation) for export:
- raw and auxiliary materials, parts, semi-finished goods and other accessory items that
are a part of the estimated goods;
- instruments, dies, forms and other similar equipment used in the production of the
estimated goods;
- auxiliary materials used in the production of the estimated goods (grease oil, fuel,
etc.);
- engineering, research and development works, designs, schemes, drawings performed
outside the Russian Federation and needed directly for the production of estimatedgoods;WT/ACC/SPEC/RUS/9
Page 28
(d) license and other payments for the use of objects of intellectual property, which the importer
shall be obliged to make directly or indirectly as a condition for the sale (alienation) of
estimated goods;
(e) part of the income of the importer from any subsequent sale (alienation) or use of estimated
goods that are subject to return to an exporter.
15. The price of a transaction with imported goods may not be used for estimating customs value,
if:
(a) there are limitations on the rights of the importer to the estimated goods, with the exception:
- limitations introduced by the legislation of the Russian Federation;
- limitations of the geographical region in which goods may be resold (alienated);
- limitations which do not affect essentially the prices of goods;
(b) the price of a transaction depends on the observance of any conditions whose influence
cannot be accounted for;
(c) the data used by the declarant in estimating customs value have not been corroborated by
documents;
(d) the importer and exporter are interdependent persons, with the exception of cases when their
interdependent did not influence the price of transactions, which shall be provided by the
declarant.
Juridical and natural persons shall be regarded as interdependent for purposes of the present
Procedure, if:
- one of the parties of a transaction (natural person) or the official of one of the parties
is at the same time the official of the other party to the transaction;
- the parties to a transaction are co-owners;- the parties to a transaction are connected by relations of hire;
- one of the parties to a transaction owns a un it or holding with the right of the vote that
comprises not less than 5 per cent of the other party's authorized capital;
- both parties to a transaction are under the direct control of the third juridical or
natural person;
- the parties to a transaction jointly control the third person directly or indirectly;
- the parties to a transaction or their officials are close relatives.
IV. THE METHOD OF ESTIMATING THE PRICE OF TRANSACTIONS WITH IDENTICAL
GOODS (METHOD 2)
16. The price of a transaction with identical goods shall be accepted as a base for estimating
customs value by using method 2 with the observance of conditions indicated below.
17.  Goods, similar in all respects with estimated  goods, shall be understood to mean "identical"
according, among other things, to the following parameters:
- designation and characteristics;
- quality, trademark and reputation on the market;
- country of origin of goods;
- manufacturer.WT/ACC/SPEC/RUS/9
Page 29
Immaterial differences in outer outlook may not serve as a ground for the refusal to consider
goods as identical, if in other respects such goods meet the requirements of this Item.
18. Goods produced by different persons may be regarded as identical only in the case, if the
declarant and customs agencies have no information about identical goods produced by the person
who has manufactured the estimated goods.
19. The price of a transaction with identical goods shall be accepted as a base for estimating
customs value, if these goods were:
(a) sold (alienated) for bringing in to the Russian Federation;
(b) brought in simultaneously or not later than 90 days before the importation of the estimated
goods;
(c) brought in on the same commercial condit ions and roughly in the same amounts as the
estimated goods.
20. If identical goods were brought in in other quantities or on other commercial conditions, the
declarant shall make appropriate corrections of their price with an eye to these differences and
confirm by documents, its validity to a customs agency.
21. Customs value estimated by the price of a transaction with identical goods shall be corrected
with account of expenditures indicated in Item 14 of the present Procedure.
Corrections may be made by the declarant on the basis of authentic information confirmed by
documents.
22. If the application of the present method reveals the existence of more than one price of the
transaction with identical goods, then the lowest price shall be used to estimate the customs value of
imported goods.
V. THE METHOD OF ESTIMATING THE PRICE OF TRANSACTIONS WITH
HOMOGENEOUS GOODS (METHOD 3)
23. The price of a transaction with goods which are homogeneous on a par with imported goods
shall be accepted as a base for estimating customs value by using method 3 with the observance of
conditions indicated below.
24. Homogeneous goods shall be understood to mean the goods which, although are not similar in
all respects, have similar characteristics and consist of similar components, which makes it possible
for them to discharge the same functions as the estimated goods do and act as mutually replaceable in
commercial terms.
In determining the homogeneity of goods account shall be made of their following
characteristics:
- designation and characteristics;
- quality, trademark and reputation on the market;
- country of origin of goods.
25. Provisions of Items 19-22 of the present Procedure shall be applicable in the use of the
method of estimating customs value according to the price of a transaction with homogeneous goods.WT/ACC/SPEC/RUS/9
Page 30
VI. THE METHOD OF ESTIMATION ON THE BASIS OF DEDUCTING CUSTOMS VALUE
(METHOD 4)
26. Customs value shall be estimated by the method of deducting value, if estimated identical or
homogeneous goods are sold (alienated) in the terr itory of the Russian Federation in an invariable
condition.
27. The price of a unit of goods shall be accepted as a base of estimating customs value by using
the method of deducting value, with estimated identical or homogeneous goods being sold in small
batches in the territory of the Russian Federation in the period, maximally approximated to the time of
importation (not later than 90 days from the date of importation of estimated goods), to the purchaser
independent of the seller.
28. The following components shall be deducted from the unit of goods, if they can be singled
out:
(a) expenses on the payment of commission and expenses on transportation, insurance, loading
and unloading operations in the territory of the Russian Federation after goods have been
released for free turnover;
(b) the amounts of import customs duties, taxes, dues and other payments subject to payment in
the Russian Federation in connection with the importation or sale (alienation) of goods.
29. In the absence of cases of sale (alienation) of estimated identical or homogeneous goods in
the same condition in which they were at the time of importation, the price of a unit of goods may be
used at the request of the declarant after they have been processed with an eye to added value and
with the observance of Items 27 and 28 of the present Procedure.
VII. THE METHOD OF ESTIMATION ON THE BASIS OF ADDING VALUE (METHOD 5)
30. The price of goods shall be accepted as a base for estimating customs value by the use of
method 5. It shall be calculated by adding up:
(a) the value of materials and other expenses incurred by the manufacturer in the production of
estimated goods;
(b) general expenses incurred in the sale of similar goods to the Russian Federation from the
exporting country, including the value transportation, loading and unloading operations, andinsurance to the place of customs clearance in the territory of the Russian Federation, etc.;
(c) profit usually received by the exporter as a result of delivery of such goods to the Russian
Federation.
31. In estimating customs value by this method, account shall be taken of all the expenses
included in the price of goods in accordance with Item 14 of the present Procedure.
VIII. THE RESERVE METHOD (METHOD 6)
Concerning application of method 6 (the Reserve Method) for determination of customs value of
imported goods see explanations advised by Letter of the State Customs Committee of the Russian
Federation No. 07-11/12510 of August 31, 1995
32. If customs value cannot be estimated by the declarant as a result of the consecutive
application of five said methods, or if customs agencies have valid reasons to believe that these fiveWT/ACC/SPEC/RUS/9
Page 31
methods of estimating customs value may not be used, then the customs value of goods shall be
estimated and substantiated with account of the world customs practice.
Other methods of estimating customs value shall be  used in keeping with the legislation of the
Russian Federation and the principles of the GATT System of customs estimation.
While applying the reserve method, the customs agencies shall submit available information
about prices to the declarant.
33. The following prices may not be used as a base for estimating the customs value of goods
according to method 6:
(a) the price of goods on the home market;
(b) the price of goods of natural origin;
(c) the price of goods delivered from the exporting country to third countries;
(d) the arbitrarily fixed prices or prices unconfirmed with certainty.WT/ACC/SPEC/RUS/9
Page 32
Annex 4
ORDER OF THE STATE CUSTOMS COMMITTEE OF THE RUSSIAN FEDERATION
NO. 1 OF 5 JANUARY 1994
ON CONCERNING THE CUSTOMS VALUE OF GOODS BROUGHT
TO THE RUSSIAN FEDERATION
In conformity with the Law on Customs Duties in the Russian Federation I hereby order:
1. To endorse Provisions on the Procedure and Conditions of Declaration of the Customs Value
of Goods Brought to the Russian Federation (Suppl ement No. 1) and Regulations on Control Over the
Declared Customs Value of Goods Brought to  the Russian Federation (Supplement No. 2).
Concerning the Distribution of Jurisdiction in the Sphere of Customs Value of Goods among
the Customs Agencies of Various Levels see the Temporary Regulations approved by Order of the
State Customs Committee of the Russian Federation No. 796 of 29 December 1996.
2. To invalidate Instructions of the State Customs Committee of the Russian Federation
No. 01-12/248 of 18 December 1992.
3. Compliance with the present Order shall be ensured by V.I. Meshcheryakov, Deputy
Chairman of the State Customs Committee of the Russian Federation.
4. This Order shall come into effect upon its publication in the newspaper Rossiiskiye Vesti.
First Deputy Chairman
of the State Customs Committee
of the Russian Federation V.F. Kruglikov
Registered at the Ministry of Justice of the Russian Federation on 17 January 1994
Registration No. 461WT/ACC/SPEC/RUS/9
Page 33
Supplement No. 1
to the Order of the State Customs Committee of the Russian Federation
No. 1 of 5 January 1994
PROVISIONS ON THE PROCEDURE AND CONDITIONS OF DECLARATION OF
THE CUSTOMS VALUE OF GOODS BROUGHT TO THE RUSSIAN FEDERATION
I. General ProvisionsII. The Procedure of Declaring the Customs Value of Imports
Supplement 1. Forms of Declaration of Customs Value (DCV-1, DCV-2)
Supplement 2. Instructions on Filling Customs Value Declarations
Supplement 3. The Correction Form of Customs Value and Recalculation Customs Payments and
Instructions for Filling Forms CCV-1 and CCV-2
Supplement 4. The Form (Model) of Declarant's Application for Allowing him to Use Imported
Goods
Supplement 5. Examples for Filling DCV
I. General Provisions
1.1. Provisions on the Procedure and Conditions of  Declaration of the Customs Value of Goods
Brought to the Russian Federation (Provisions) shall be mandatory for the declarants of imports,
except persons who bring goods intended not for commercial purposes.
1.2. Provisions are intended for use by:
- declarants - for determining and declaring the customs value of goods brought into this
country.
- customs authorities - for control over the customs value of imports stated by the declarant.
1.3. Control over imports' customs value shall be established as early as possible to prevent
ungrounded delays with their clearance. If it proves impossible to pass a decision on recognition, or
grounded correction, of goods' customs value as stated by the declarant, the customs authority
concerned may decide to conditionally clear the goods in question. The conditional clearance of goods
means that the goods are cleared upon the conditional (temporary) determination of their customs
value, their final customs value to be determined upon the goods' clearance provided the declarantsubmits the additional necessary information. The goods cleared conditionally may be used as per the
stated customs regime.
For a provisional (conditional) valuation there shall be used the prices established by the
Appendixes to the Orders of the State Customs Committee of the Russian Federation No. 796 of
29 December 1995 and No. 332 of 30 May 1996.
1.4 Determination of the customs value of goods brought into this country shall be effected by the
declarant as per the Law on Customs Duties in the Russian Federation (Paragraph 2, Article 13)
*,
using techniques indicated thereunder.
The customs body concerned shall control the correctness of determination of the customs
value by the declarant (Item 2, Article 13), including the appropriateness and feasibility of the
                                                     
* Here and elsewhere brackets indicate the corr esponding articles and paragraphs of the Law
on Customs Duties in the Russian Federation.WT/ACC/SPEC/RUS/9
Page 34
customs value gauge chosen by the declarant (Item 2, Article 15), the comprehensiveness
(completeness) of the documents (obligatory and additional) submitted by the declarant an their
compliance with the statutory requirements.
Concerning the control over correctness of determination of customs value see also Letter of
the State Customs Committee of the Russian Federation No. 01-15/13231 of 24 July 1996.
1.5. To declare the customs value of imports, the following forms of declaration of customs value
shall be used: DCV-1 and DCV-2 (Supplement 1). The procedure of DCV filling is set forth in
Supplement 2.
1.6. Form DCV-1 is for declaring customs value as determined by Method 1 "Price of the
Consignment of Imports".
1.6.1. Method 1 "Price of the Consignment of Imports" is applied as per the Law on the Customs
Duties of the Russian Federation (Article 19) with regard to the customs value of goods imported in
conformity with purchase or sales transactions having a value base (that is, settlements for the goodsbought are effected by means of money payments).
To simplify and unify customs estimations, Method 1 may be used to determine the customs
value of goods imported under the conditional value transactions plan (that is, transactions which do
not generate real movement of money). These transactions can include exchange deals (commodity
exchange operations) such as barter and compensation deliveries, deliveries against guarantees andgrant-in-aid deliveries provided the relevant docu ments - the contract (treaty, agreement), proforma
account, or the exporter country's customs declaration contain the value estimation of every
commodity subject to such a transaction (provided the general conditions of application of Method 1
are complied with).
1.6.2. Method 1 can also be used if it is possible to effect the value estimation of (with the necessary
substantiation and documentary confirmation) the limitations and terms that affected the price of the
deal.
1.7. Form DCV-2 is intended for determining customs value by one of Methods 2-6 (Method 2
"Price of a Deal with Identical Goods, Method  3 "Price of a Deal with Homogeneous Goods",
Method 4 ("Deduction of Value"), Method 5 ("Addition of Value"), and Method 6 ("ReserveMethod") as indicated in the Law (Articles 20-24).
1.8. As per the Law on Customs Duties in the Russian Federation, the customs value of imports
shall include expenditures on bringing goods to the point of importation to the customs territory of the
Russian Federation.
For the purpose of determining goods' customs value, the point of importation shall be:
(a) for air cargo - the airport of destination or the first airport in the Russian Federation, where
the air carrier lands and where goods are unloaded;
(b) for sea - or river-borne cargo - the first port of unloading or transshipment in the Russian
Federation, if the unloading is confirmed by this port's customs authority;
(c) for cargo delivered by other modes of transport - the point of importation on the Russian
Federation's customs border along the goods' route;WT/ACC/SPEC/RUS/9
Page 35
(d) postal cargo - the point of international postal exchange.
The customs value of imports (and the rate of exchange of foreign currencies) shall be as on
the date of adoption of the customs declaration.
1.9. If inaccuracies or errors in determining customs value emerge in the process of carrying out
customs formalities and checking on the customs value declaration submitted, all corrections in DCVs
and CCDs shall be as per Paragraph 2.9 of the present Provisions.
If discrepancies are revealed, upon the goods' clearance or in other cases, between the
declared and real value of goods as on the date of the acceptance of the customs declaration, in
connection with imports' deviations in quantity and/or quality from the terms of the contract, the
customs authority may, upon the application of the declarant (buyer), correct the customs value as per
the procedure established by the State Customs Committee of Russia (all corrections in customs value
and the procedure of introducing each of these corrections are subject to special bylaws of the State
Customs Committee of Russia).
II. The Procedure of Declaring the Customs Value of Imports
2.1. The customs value of imports to Russia shall be stated by the declarant to a Russian customs
office as per Form DCV-1 or Form DCV-2, indicating the customs regimes under which the imports
in question are subject to customs duties and/or taxes. Indicating customs regimes under which
imports are not subject to customs duties (with the exception of charges for customs formalities), thecustoms value of goods shall be stated in the cargo customs declaration. If a customs office has
grounded doubts as regards the customs value declared, it may demand that the declarant fill the
customs value declaration.
The specificities of determining the customs value of imports in placing them under specific
customs regimes, or in changing the initially declared regime, shall be subject to other bylaws by theState Customs Committee of the Russian Federation.
A customs value declaration shall be a customs document.
Under Russian legislation, the declarant shall be  liable for all information included in its
customs value declaration and documents submitted to confirm customs value.
2.2. A customs value declaration shall be submitted simultaneously with a cargo customs
declaration and other documents necessary for customs procedures in the statutory manner to the
customs office concerned.
2.3. Under Section XIII of the Cust oms Code of the Russian Federation, the declarant (buyer) may
appeal against a decision taken by the customs office with regard to the customs value of its goods.
2.4. To confirm data on the customs value of its goods (Paragraphs 1 and 2, Article 15), apart
from a customs value declaration, the declar ant shall submit the following documents:
- founding documents of the person who transfers the goods;
- a treaty (contract) and supplementary documents (if any);WT/ACC/SPEC/RUS/9
Page 36
- an invoice and bank payments documents (if a bill has been paid) or a proforma account (for
conditional value deals)** as well as other payment and/or accounting documents which
confirm the value of the commodities in question;
- transport and insurance documents, if any under delivery conditions;
- a transportation bill or officially certified transport cost estimates if transport charges are not
included in the dispatch note-come-invoice;
- a customs declaration (if any) of the dispatching country;
- packing lists;
- a licence for licensable goods;
- a certificate of the origin of goods, a certificate of quality, a certificate of safety, etc.
2.5. A customs office may demand, if the documents as per Item 2.4. are not enough, that the
declarant submit the necessary additional information (Item 2, Article 15). As additional information,
a customs office may require the following documents:
- contracts with third parties which have a relation to the deal in question;
- accounts for payments to third parties in favour of the buyer;
- accounts for the commissions and brokerage linked to the transaction with the goods, whose
customs value is being measured;
- accounting documentation;- licence or authorship agreements;
- export (import) licences;
- warehouse warrants;
- delivery orders;
- producer catalogues, specifications and price lists;- producer cost estimates for the goods in question (if the producer agrees to submit these
estimates to the Russian buyer);
- other documents which can be used to confirm the content of the customs value declaration.
2.6. To effect the customs evaluation of goods and verify the customs value of the goods stated by
the declarant, information may be employed, which is supplied by the declarant or which is inpossession of a customs office.
Information shall be authentic and full (comprehensive) and shall confirm the declared
customs value.
2.6.1. The declarant (buyer) can possess information on the customs value of earlier identical or
homogeneous imports or their domestic prices, or the producer estimates and price lists not in thepossession of the customs office carrying out the necessary customs formalities.  Such information
may be employed if confirmed by relevant documents, such as commercial, customs and payments
documents relating to deals with identical or homogeneous products, accounts, bills of lading, etc.
                                                     
** In formalizing imports as per foreign trade deals from other CIS participants, instead of an invoice
the declarant may submit an itemized commodity specifi cation of the import consignment (giving the name of
every commodity, unit price and the overall value of the batch of the commodity in question) and a paymentorder to contain all the necessary requisites (the name, address and banking requisites of the seller and buyer;the list of goods, stating unit prices and the overall value of the batch of every commodity; the date of payment;
and the name and requisites of the bank used to effect the said payment).WT/ACC/SPEC/RUS/9
Page 37
2.6.2. The customs office concerned may have information not possessed by the declarant, such as
import and export reference prices and data on the identical and homogeneous goods subject to earlier
customs clearance. In such cases, the declarant may be supplied, if they are available to the customs
office, either with average contract prices or information on the customs value of a separate
transaction only in a depersonalized form to ensure the confidentiality of the said information (that is,
without disclosing the names of the seller, buyer or declarant and other data which would helpidentify the deal).
2.7. The declarant shall personally fill all the Columns of the customs value declaration (DCV-1
or DCV-2) as per the relevant instructions, except Columns to be filled by the customs office.
2.8. If a customs value declaration is filled correctly, the declarant correctly chose and used the
method of determining the customs value of its goods and its statutory data are confirmed by
documents, the "customs notes" Column of all DCV lists shall bear a note "customs value accepted"
to be formalized by the signature and personal (numbered) seal of the officer who checked on thegiven DCV.
2.9. The customs official who verified and formalized a customs value declaration may not on its
own or at the declarant's request add any information on the customs value declared to the Columns to
be filled by the declarant, or introduce amendments or corrections into the said Columns.
Upon the acceptance of documents for customs formalities, all corrections made by the
customs office to the customs value stated by the declarant shall be treated as the customs evaluation
of the goods and may be appealed against by the declarant in the established manner.
If it proves necessary to correct the declarant's calculations (particularly upon the submission
of the necessary additional information to the customs office), a customs officer shall make relevant
entries and calculations in the Columns "for customs notes" or on the form's reverse side under theheadline "customs notes".
All notes by the customs official shall be dated and confirmed by his or her signature and
personal (numbered) seal.
In conformity with the customs office's calcul ations, the declarant shall make corresponding
amendments to the filled DCV Columns, confirm them by his or her signature and seal and indicatethe date of a correction (entry).
If corrections are numerous, a new DCV form may be filled, with a note "customs value
recomputed. A new form (No.) filled" made on the previous DCV form. Both forms (the initial one
with an incorrectly computed customs value and th e new one, with the specified customs value) shall
be kept by the customs office.
In the upper part of the new DCV form a customs official shall make an inscription "customs
corrections" and in the Column "for customs notes" an inscription "customs value recomputed" shall
be made and confirmed by the official's signature an d personal (numbered) seal, and the date of filling
(or making a correction) put. If the declarant agrees with the customs office's corrections, the
declarant shall fill Column 10b in a general manner.
Upon the correction of the customs value of goods, a customs officer makes a note "customs
value corrected" in the CCD. The declarant or a customs official fills a Customs Value CorrectionForm (CCV-1, CCV-2) which, together with a DCV,  is part and parcel of a CCD (Supplement 3).WT/ACC/SPEC/RUS/9
Page 38
If the declarant disagrees with the corrections of the customs value of its goods made by the
customs office, it may not introduce the said corrections into the DCV or not to sign the DCV forms
which indicate the said goods' customs value as recomputed by the customs official (that is, not to fill
the Column 10b.
In this case, as per the Law on Customs Duties in the Russian Federation (Item 3, Article 16),
the declarant may request in writing that the customs office explain why it has not accepted thedeclarant's customs value (expect cases of temporary (conditional) customs estimation).
The declarant's written application to the customs office in connection with the latter's
customs value determination or its appeal against the customs office's decision shall not relieve the
declarant of paying customs duties as per the customs office's determination of the customs value of
its goods.
Prior to specifying the customs value of goods as stated by the declarant, a decision on the
goods declared shall comply with existing customs legislation.
2.10. If at the time of performing customs formalitie s the declarant lacks documents to confirm the
declared customs value of its goods or evidence to confirm the authenticity of the information used, or
if the contract provides for a sales-oriented revision of prices so that the final price of the said imports
can be determined with the help of total sales re ceipts, the customs office may decide to permit the
declarant to use the imports in question provided it pays customs charges in full:
(a) upon the declarant's written application (Supplement 4), the customs office may allow it to
use the declared goods against the collateral of property or the guarantee of an authorized
bank as per existing legislation.
The value of a collateral or a bank guarantee shall suffice to pay customs charges calculated
with a view to a possible correction of the customs value of the goods in question (that is, on the basis
of the temporary (conditional) customs estimation of the said goods' value). If customs charges are
paid at the time of performing customs formalities, the value of the collateral or bank guarantee is
determined proceeding from the difference between the temporary (conditional) customs statutory
estimation of the goods' customs value and the goods' customs value as stated by the declarant.
Example:
Two sets of equipment are imported EXW, import customs duty is 10 per cent and VAT is 20
per cent. In the dispatch note-come-invoice the seller indicated 10,000 money units to be paid for the
goods delivered.
At the time of performing customs formalities the import customs duty was paid in the
amount of 1,000 money units and VAT in the amount of 2,200 money units, that is, the total ofcustoms charges for the said imports constituted 3,200 money units (to simplify calculations in our
case, charges for customs formalities are ignored).
As with the EXW terms the invoice addressed by the seller to the buyer does not include
transport charges as far as the Russian customs border and the declarant has not submitted documents
by which to measure the cost of the goods' delivery, a customs office will effect the temporal
(conditional) customs estimation of the imports' value, considering possible transport expenses. In
conformity with this estimation, the customs value of the goods was fixed at 13,000 money units.Accordingly, the customs duty will be 1,300 money units and VAT will constitute 2,860 money units,
i.e. the total of charges will be 4,160 money units.WT/ACC/SPEC/RUS/9
Page 39
In this case, until the customs office receives the declarant's documents thereby to precisely
measure the transport costs involved, the said imports may be released against a bank guarantee of
960 money units (4,160-3,200=960 money units).
During the time indicated by the customs office (not more than 60 days), the declarant will
collect and submit to the customs office documents necessary to specify and/or confirm the said
imports' customs value. A bank guarantee or a collateral treaty may not be shorter than the timeinterval fixed by the customs office for the submission of these documents.
In this case, on the face of the DCV form in the Column "for customs notes" a customs
official makes the following entry: "Customs value is being specified. The goods are released against
bank guarantee (collateral) dated ".......... ", No. ..... . The date of correction "......."" The date should
be verified in the established manner.
An analogous entry should be made in Column S of the CCD.
Upon the submission of the required information by the declarant, the customs office passes a
decision on the customs value of the goods and performs the final recalculation of the customs
charges.
(b) upon the declarant's written application, the customs office may put the goods declared at its
disposal provided the declarant transfers the necessary payments to the customs office's
deposit account, proceeding from the temporary (conditional) customs estimation of thegoods made by the customs office in the established manner.
In this case, on the face of the DCV in the Column "for customs notes" a customs officer
makes an entry: "Customs value is being specified. Temporary customs value No......., dated....... The
deadline of specification "....... " " to be verified in the statutory manner.
Upon the presentation by the declarant of a ll the documents necessary to specify and/or
confirm the customs value of the goods, recalculation of the customs value and the corresponding
customs  payments shall be carried out, including the refund of excessively collected sums or
collection of not paid ones.
Note:
1. In correcting the customs value of goods and customs charges, all calculations shall be made as per the
legislation in force on the date of the acceptance of the customs declaration.
2. If as the result of any of the variants indicated above the declarant fails to documentarily confirm the
customs value it declared, the customs office may gauge customs value by the consequential assessment
methods.
3. If the declarant refuses to submit the necessary additional information to determine and/or confirm the
customs value of its goods and duly formalize their clearance as per the declared customs regime, the goodsshall remain in bond until the customs office adopts a final decision on the customs value of the goods in
question.
2.11. The declarant's rights and duties with regard to determining and stating the customs value of
its goods are formulated in the Law on Customs Duties in the Russian Federation (Article 15).
[Note by Secretariat - following 72 pages of prescribed forms deleted]WT/ACC/SPEC/RUS/9
Page 40
Annex 5
LETTER OF THE STATE CUSTOMS COMMITTEE OF THE RUSSIAN FEDERATION
NO. 07-11/12510 OF 31 AUGUST 1995
ON THE DELIVERY OF MATERIALS
We are sending you for use in work the interpretations of the Customs-Tariff Department on
the issues of the application of method 6 (Reserve Method) for the determination of the customs valueof the imported goods (see the Annex).
Please ensure the distribution of the given materials to your jurisdictional customs bodies
within the period before 1 October 1995.
Deputy Director of the
Customs-Tariff Department L.A. BondarWT/ACC/SPEC/RUS/9
Page 41
Annex to the Letter of the State Customs Committee of the Russian Federation
No. 07-11/12510 of 31 August 1995
As a result of the analysis, carried out by the Customs-Tariff Department of the State
Customs Committee of Russia, of the application of method 6 (Reserve Method) for the determination
of the customs value of the imported goods it has been revealed that in certain cases the customs
bodies, when applying the given method, commit procedural errors:  the basis for the determination ofthe customs value is chosen incorrectly;  the price information is applied improperly;  the possibility
of using various versions and ways of valuati on within the framework of method 6 is groundlessly
interpreted too widely, disregarding the principles of the customs valuation and the restrictions
established by the Law of the Russian Federation on the Customs Tariff. The treatment of certain
provisions of the Law of the Russian Federation on the Customs Tariff and of the departmental
normative documents on the customs value is carried out formally and separately from the context of
the document, disregarding the whole document in its entirety and ignoring the effective legislation.
With this in view and in order to ensure the correct use of method 6 when valuing a
commodity for the customs purposes, the Customs-Tariff Department of the State Customs
Committee of Russia is giving the following interpretation:
1. The interpretation of Article 24 the "Reserve Method" of the Law of the Russian Federation
on the Customs Tariff should be carried out in interrelation with the provisions of Articles 19-23 ofthe Law. Besides, it shall be necessary to bear in mind that the specific feature of method 6 (reserve
method) of determining the customs value is that unlike the previous five methods, it does not
establish any special initial valuation basis (for example, in method 1 such basis is the price of a
transaction with the imported goods, in method 2 the price of a transaction with identical goods, and
in method 5 the calculation of the expenses for the production and sale of goods for export, etc.).
In accordance with the Law of the Russian Federation on the Customs Tariff (Item 1 of
Article 24), the customs value in method 6 must be determined "taking into account the world
practice".
The world practice has been treating method 6 as a flexible use of all the previous valuation
methods. In this connection, when using the given method, it shall be necessary to observe all themain principles of the customs valuation relating to the application of methods 1-5. This means that
when determining the customs value by method 6, as the basis for the customs valuation there may be
used:
- the customs value of identical or similar goods, or of goods of the same class or type
***
accepted by the customs body and meeting the established requirements (in this case, method
6 is used on the basis of methods 1, 2 or 3);
- the price of imported, identical or homogeneous, goods, or of goods of the same class or kind
at which they are sold on the internal market of the Russian Federation, corrected taking into
account the permitted deductions (method 6 on the basis of method 4);
- price data from neutral sources of information (catalogues of independent firms, like Eurotax,
OTTO, etc.); publications containing a detailed description of a specific commodity and a
clear explanation of the structure of the price; published or delivered official price-lists for
                                                     
*** Goods of the same class or kind shall be the goods comprising the same group or range of goods
manufactured by an individual branch or subbranch (sector) of industry and having approximately the same
reputation on the market.WT/ACC/SPEC/RUS/9
Page 42
goods, or trade tenders of firms to supply specific goods with the indication of their prices,
and also exchange price quotations).
When using, within the framework of method 6, the data on any other transactions, and also
the permitted price information, it shall be necessary to  take into account the basic initial conditions of
specific transactions (for example, such as the quantity of the commodity being purchased and the
commercial level of its sale, the availability of price rebates, the conditions of the supply and of thepayments under the contract, etc.). There must also be met the requirements for the composition of the
costs included in the customs value (Articles 19, 22 and 23 of the Law of the Russian Federation on
the Customs Tariff).
A general requirement for all the initial price data used to determine the customs value by
method 6 shall be their strict specificity, i.e. the price (cost) must concern a concrete commodity
described in a univocally identifiable way (the co mmercial name of the commodity, its description at
the assortment level, the data on the manufacture firm, the material, the technical parameters and anyother characteristics depending on the type of the commodity).
Thus, the determination of the customs value by method 6 must be based on real and
well-grounded price data, unless their use is contrary to the requirements of Item 2 of Article 24 of the
Law of the Russian Federation on the Customs Tariff.
An obligatory requirement, when using method 6, shall also be the ensurance of the greatest
possible similarity of goods (i.e., when considering the supposed analogues for comparing the cost of
goods, first there shall be chosen identical goods, the homogeneous goods, and where those are
unavailable, goods of the same class or kind).
The above mentioned requirements for the price information and the choice of analogous
goods should be taken into account when considering Item 2d of Article 24 of the Law of the RussianFederation on the Customs Tariff, which item prohibits the use, as the basis for determining the
customs value, of "a randomly established or reliably unconfirmed price of a good" (which happens in
the case when the choice of an analogue for valuing a good has been made incorrectly). Thus, it shall
be impermissible for the purposes of the customs va luation within the framework of method 6 to use
the averaged data on the generalized groups of goods (women's shoes, men's suits, perfumes, grapewine, etc.).
2. In Item 2a of Article 24 of the Law of the Russian Federation on the Customs Tariff it is
established that "the price of a good on the internal market of the Russian Federation may not be used
as the basis for determining the customs value of the good by the reserve method".
In some cases this provision has been applied by the customs bodies literally, disregarding
other provisions of the Law. This results in excluding the possibility of applying, to determine the
customs value of goods, method 6 on the basis of method 4 ("Method on the Basis of Deducting the
Cost").
But the essence of Item 2a of Article 24 of the Law of the Russian Federation on the Customs
Tariff consists in that it is impermissible to use, for valuing the goods for the customs purposes by
method 6, the price of a good on the internal market of the Russian Federation "in its pure" form, i.e.
without the relevant correction ensuring the bringing of the internal price to the required structure ofthe customs value (i.e. without the correction stipulated by Article 22 of the Law of the Russian
Federation on the Customs Tariff). To make it possible to calculate the customs value on the basis of
the internal price for the valued identical or homogeneous goods, or for the goods of the same class or
kind, it shall be necessary to separate from the said price those elements of the costs which, in
accordance with the Law of the Russian Federation on the Customs Tariff, are not includable in theWT/ACC/SPEC/RUS/9
Page 43
customs value (for example, the amounts of the value added tax and the special tax, the import
customs duty, or the fees for the customs clearance collected when importing the goods into the
territory of the Russian Federation; the expenses on the delivery of the goods after the place of
importation; the expenses on the presales processing of the good, the amount of the additional trade
charge, etc.).
As an example we are giving the following pattern of calculating the customs value of the
Mitsubishi television set with the diagonal of 21 inches (54 cm) by method 6 on the basis of the price
of the sale of the TV set on the territory of Russia and of its relevant correction (i.e. method 6 on the
basis of method 4):
- The sale price of a TV set of the given brand for the Moscow area is 360 US dollars.
- The amount of the additional trade charge, including the expenses of the buyer on the territory
of the Russian Federation and his profit, when realizing the TV set in Moscow is about 25%:
- 360 x 25% / 125% = 72 US dollars.
- From the resulting amount of 288 US dollars (360 - 72 = 288) it is now necessary to deduct
the amounts of the import customs duties and of the taxes.
- The amount of the value added tax and of the special tax when importing the TV set with the
rates of 20% and 1.5% is:
- 288 x 21.5% / 121.5% = 50.96 US dollars
- The amounts of the import customs duty and of the fees for the customs clearance with the
rates of 30% and 0.15% is:
- 237.04 x 30.15 / 130.15 = 54.91 US dollars
- The total amount of the deductible components is:
- 72 + 50.96 + 54.91 = 177.87 US dollars
- The calculated customs value of the TV set is:
- 360 - 177.87 = 182.13 US dollars.
We are drawing your attention to the fact that when determining the customs value of a good
by method 6 on the basis of method 4, it shall be necessary to take into account the concrete
conditions of each region (the level of the regional prices, additional trade charges, etc. Besides, itshall be necessary to prevent a double deduction of the elements).
3. When determining the customs value of a comm odity with the use of method 6 on the basis of
methods 2-4, and also when working with reference li terature (catalogues, price-lists, etc.), special
attention should be given to the correct choice of an analogue for the customs valuation.
When determining the customs value by method 6 in the case if there is no data on identical
and homogeneous goods, as an analogue there may be considered goods of the same class or kind, i.e.
those having the same reputation on the market as the valued ones and which are fungible for theWT/ACC/SPEC/RUS/9
Page 44
consumer. The goods may have been imported both from the same country as the valued ones, and
from other countries.
For example, a commodity of the same class for a television set may be a TV set with the
same diagonal, with the same quantity of system s, with the same type of audio accompaniment
(mono, stereo), with the same type of the screen (flat, convex), with the same additional functions
(timer, teletext, etc.), and having the same reputation on the market as the valued one. Approximatelyequal reputation on the consumer market (with the same technical parameters) is enjoyed by the TV
sets of such firms as Sony and Panasonic; to another class of goods with approximately equal
reputation among the consumers there may be referred the TV sets of the firms Mitsubishi, Orion and
Hitachi (with comparable technical parameters).
When choosing the analogues for the customs valuation of motor vehicles by method 6, the
following should be taken into account.
A commodity of the same class for a motor car shall be a motor car with the same
functional-technical possibilities, which, as a rule, is reflected in the type of the body (sedan, liftback,
cross-country vehicle, minibus, van, special form of a sports car, etc.); with about the same volume of
the engine; and with the same feeding system (petrol (carburettor, spraying, diesel). For example, to
the same class there may be referred the small town cars like Toyota Starlet, Toyota? Corolla
Compact, Opel Corsa City, and Renault Clio with the engine volume of up to 1500 cub.cm, having, asa rule, the form of a liftback. Although they come  from different countries, the new cars of these
models may be considered as analogues in the valuation, since they have not only similar design and
technical characteristics, but also approximately the same reputation on the motor car market.
For the used motor vehicles the analogues should be chosen with due account of the country
of origin. For example, German motor vehicles of all classes in the course of their service life arelosing mush less in their value than Italian or French vehicles; and Japanese motor vehicles are in
between.
Quite essential for the value of motor vehicles is the country when they have been purchased.
Thus, for the new and used motor vehicles exported from Europe the analogues should not be chosen
from among the vehicles imported from the USA, South-Eastern Asia or Japan. When choosing theanalogues for determining the customs value of motor vehicles be method 6, it shall also be
impermissible to use vehicles with a different position of the steering column (left-hand or
right-hand).
However, for the new motor vehicles produced by the leading European and U.S. companies
and assembled at their branch enterprises in other countries, but launched under the trade mark ofthese companies, it shall be possible to choose the analogues among the new motor vehicles imported
from the countries where the head enterprise of th ose companies is located (while making in their
valuation the relevant corrections to the price of the base motor vehicle).
4. When using method 6, where a flexible use of methods 2-5 is impossible, it shall be
permissible to use reasonable approaches in valuing a commodity which are not contrary to the
established statutory principles of the customs valuation, which agree with the real commercial
practice and are based on the information available in the importing country (which corresponds to the
international legal norms in the field of the customs valuation and thus satisfies the provision of
Article 24 of the Law of the Russian Federation on the Customs Tariff requiring that the customs
value should be determined with due account of the world practice).
The following may be given as examples of the impossibility, when applying method 6, of
using the valuation bases established by methods 1-5:WT/ACC/SPEC/RUS/9
Page 45
- the goods are imported under an agreement of lease or tenancy;
- the goods are reimported after a repair or modernization;
- the goods are imported temporarily as test samples or show exhibits;
- there are being imported unique products, artistic works, etc.
For example, a commodity is being imported under the terms of agreements of lease or
tenancy, i.e. method 1 is inapplicable, and, besides, such equipment has never been imported intoRussia, the lessor has no data on the calculation of the costs of the production of the given equipment,
or refuses to furnish them, i.e. it is impossible to use methods 2-5, or method 6 on their basis. In this
case the most realistic basis for determining the customs value by method 6 may be the value of the
lease payment recalculated for the whole period of the operation of the given equipment. For example,
if the equipment is imported under a lease agreement for two years and its normative service life is ten
years, then to determine the value of the eq uipment the lease payment for two years must be
recalculated for ten years. It shall also be necessary  to bear in mind that if the amount of the current
lease payments have comprised the expenses unincludable in the customs value (for example, the
expenses on the repair and maintenance of the equi pment in working order), then in the case if they
have been separated as an individual line and, if necessary, may be checked and confirmed
documentarily, these expenses may not be included in the customs value.
Another example of determining the customs value of the imported goods by method 6, not
based on a flexible use of methods 1-5, shall be the use, as the initial price base, of the value of the
commodity determined as a result of the expert examination of the commodity value.
However, in all the cases of the application of method 6 there must be ensured the most
realistic evaluation of a commodity, taking into account the actual and generally accepted conditions
of the commercial practice existing in the usual course of trade (i.e. in the conditions of normalcompetition and a free market).
__________