WORLD TRADE
ORGANIZATIONG/L/277
24 November 1998
(98-4696)
REPORT (1998) OF THE COMMITTEE ON CUSTOMS VALUATION
A. BACKGROUND
1. The Agreement on Implementation of Article VII of the General Agreement on Tariffs and
Trade 1994 (the Agreement) entered into force on 1 January 1995.  This report covers the year 1998.  It
addresses the work undertaken by the Committee on Customs Valuation (the Committee) in respect of
the objectives of the Agreement, which are:  to  provide greater uniformity and certainty in the
implementation of the provisions of Article VII of  the GATT 1994;  to establish a fair, uniform and
neutral system for the valuation of goods for cust oms purposes that precludes the use of arbitrary or
fictitious customs values;  to ensure that the basi s for valuation of goods for customs purposes should, to
the greatest extent possible, be the transaction value of the goods being valued;  and to secure additional
benefits for the international trade of developing countries.
2. During the period under consideration, the Committee has held three formal meetings, on
8 May 1998 (G/VAL/M/7), on 26, 30 June and 2 Ju ly 1998 (G/VAL/M/8), and on 13 November 1998
(G/VAL/M/9).  The Committee elected Mr. Mohamed Bentaja (Morocco) as Chairperson and Ms. Julia
Nielson (Australia) as Vice-Chairperson for 1998.
3. Participation in the Committee is open to all WTO Members.  In addition, Governments granted
observer status by the WTO General Council attended Committee meetings as observers.  At the
April 1997 meeting, the Committee granted observer status to those organization which had had
observer status on an ad hoc  basis, namely UNCTAD and the WCO, as well as to the ACP and the
IADB.   The Committee took note of the fact that the World Bank and the IMF had observer status by
virtue of the Agreements between  these organizations and the WTO.
4. The Committee's rules of procedure, which were approved by the Council for Trade in Goods,
are contained in G/L/146.
B. IMPLEMENTATION OF THE AGREEMENT
5. The Committee examined the national legislations of ten Members, eight of which had been
submitted during the period under consideration.  Th e Committee concluded its examination of the
legislations of Canada, Cyprus, Indi a, Iceland, Mexico, Singapore, and of  Slovenia's checklist of issues.
It is continuing its examination of the legislations  of Israel, Morocco, and Panama.  Two notifications of
legislation, from Brazil and from Trinidad and Tobago have been received following the Novembermeeting and will be examined during the next reporting period.
6. In conformity with Article 20.1 of the Ag reement, 53 developing country Members have
invoked delayed application of the provisions of the Agreement.  Understanding has been reached in the
Committee that the texts of the national legisla tion of these developing country Members will be
supplied to the Committee before the developing count ry Members begin applying the provisions of the
Agreement (G/VAL/5, para. B 2(ii)).
7. To date, 15 Members have submitted communicati ons indicating that their legislation notified
under the Tokyo Round Customs Valuation Agreement remained valid under the WTO CustomsG/L/277
Page 2
Valuation Agreement;  in addition 19 Members have no tified either their complete national legislation
on customs valuation or amendments thereto;  29 Members have not yet made any notification  (See
Annex).  The Chairman of the Committee has repeat edly expressed concern that a number of Members
have not yet complied with the notification require ments, and urged those Members who have not yet
done so to submit their notifications without further delay.
8. Two Members, Panama (G/VAL/N/3/PAN/1) and Slovenia (G/VAL/N/3/SVN/1), have notified
the date of their application of paragraph 2 of the Decision of the Committee on Customs Valuation on
Valuation of Carrier-Media Bearing Soft ware for Data Processing Equipment.
9. The Committee took note of the report on the wo rk of the Sixth (27 April - 1 May 1998) and
Seventh (5-9 October 1998) Sessions of the Tech nical Committee on Customs Valuation of the WCO.
10. At the May meeting, the Chairman reported on two informal meetings which had been held on
technical assistance.  The Committee reviewed res ponses to its request for information which were
subsequently circulated in G/VAL/W/24.  The WTO Secretariat briefed the Committee on the progress
and plans for its Technical Assistance Programm e on Customs Valuation which would operate on a
request basis.  Also at this meeting, the Secretaria t circulated an inventory of the technical assistance
activities related to implementation of the Customs Valuation Agreement by country (G/VAL/W/25).  It
was agreed that Members would continue to respond to the request for information which could help to
design bilateral and regional technical assistance ac tivities as well as feed into the WTO Secretariat
Programme.  It was also agreed that the Chai rman would hold informal consultations to review
additional responses to the request, to hear progre ss on the Secretariat Programme, and to discuss any
Members' particular situation and/or new pr oposals on how the Committee could further pursue its
mandate under Article 20.3 of the Agreement.
11. At the 26, 30 June and 2 July meeting, the Committee discussed the terms and conditions of
Morocco's reservation concerning minimum values under paragraph 2, Annex III.  The formal meeting
was suspended over the course of the three days to  allow for informal consultations during the interim
periods.  The Committee ultimately agreed on the terms and conditions as stated in the Decision of the
Committee contained in G/VAL/M/8, paragraph 18.
12. At the November meeting, it was agreed that  technical assistance in the area of customs
valuation was an urgent matter as time was quickly  passing for those developing countries which must
implement the Agreement by 1 January 2000.  The S ecretariat reported on its technical assistance
programme which utilises expert consultants to conduct one-week missions of a practical nature for
those developing countries which requ est such assistance.  It was reported that of 30 letters sent during
the programme's first phase, 19 responses had receiv ed and 10 missions had been carried out during the
period from August through November 1998.  The Comm ittee agreed that the Secretariat would prepare
a paper highlighting the priority areas for technical  assistance activities designed for implementation of
the Agreement which would be based on the responses received upon the Chairman's request for
information and other sources which may be availabl e.  An informal meeting of the Committee would
be held quickly thereafter to discuss the paper.   Further, the Committee adopted its report for 1998 and
adopted, ad referendum, the Fourth Annual Review  of the Implementation and Operation of the
Customs Valuation Agreement.  It initiated a discussion under the agenda item trade facilitation where it
was agreed that the Chairman would carry out info rmal consultations with interested delegations.G/L/277
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ANNEX1
Notifications
Members Members who have
indicated their
legislation remains valid
under the WTO
Committee
(G/VAL/M/1)Members who have
submitted their legislation or
amendments under Articles
22.1 and 22.2 of the
AgreementMembers who have
submitted their replies to the
Checklist of Issues
(G/VAL/5)Members who are
delaying
application of the
Agreement under
Article 20.1 of the
Agreement
Angola Not notified Not notified
Antigua & Barbuda Not notified Not notified
Argentina G/VAL/N/1/ARG/1 VAL/1/Add.22 + Suppl. 1-4
+Suppl. 2/Rev.1VAL/2/Rev.2/Add.4
Australia G/VAL/N/1/AUS/1 VAL/1/Add.14 + Suppl. 1-4 VAL/2/Rev.1/Add.12 +
Suppl.1
Bahrain WT/Let/149
Bangladesh WT/Let/1/Rev.1
Barbados Not notified Not notified
Belize Not notified Not notified
Benin WT/Let/242
Bolivia WT/Llet/48
Botswana Not notified VAL/1/Add.16 Not notified
Brazil VAL/1/Add.20 + Suppl.1
G/VAL/N/1/BRA/2VAL/2/Rev.2/Add.3
Brunei Darussalam WT/Let/36
Bulgaria G/VAL/N/1/BLG/1 Not notified
Burkina Faso WT/Let/19
Burundi WT/Let/24
Cameroon WT/Let/41
Canada VAL/1/Add.17 + Suppl.1-3
G/VAL/N/1/CAN/1 and 2VAL/2/Rev.2/Add.7
Central African Rep. WT/Let/19
Chad WT/Let/237
Chile WT/Let/1/Rev.1
Colombia WT/Let/1/Rev.2
Congo Not notified Not notified
Costa Rica WT/Let/1/Rev.2
Côte d'Ivoire WT/Let/1/Rev.1
Cuba WT/Let/19
Cyprus VAL/1/Add.26
G/VAL/N/1/CYP/2VAL/2/Rev.2/Add.7
Czech Republic VAL/1/Add.18 +
Suppl.1/Corr.1 - 2G/VAL/N/1/CZE/1VAL/2/Rev.1/Add.15 +
Suppl.1
Dem Rep. of Congo Not notified Not notified
Djibouti WT/Let/108
Dominica Not notified Not notified
Dominican Rep. WT/Let/1/Rev.1
Ecuador WT/Let/72
European
CommunitiesVAL/1/Add.2 + Suppl.1-13 +
Suppl.1G/VAL/N/1/EEC/1/Rev.1VAL/2/Rev.1/Add.6
Egypt WT/Let/19
El Salvador WT/Let/1/Rev.2
Fiji G/VAL/N/1/FJI/1 G/VAL/N/2/FJI/1
                                                     
1 Documents that begin with the code "VAL" are Tokyo Round documents.  Where a Member has
indicated that its legislation notified under the Tokyo Round Committee remains valid under the WTOCommittee (second column), that Member is not counted in the total under the column listing Members whohave submitted legislation under Article 22.1 and 22.2;  that Member is counted under the second column.G/L/277
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Members Members who have
indicated their
legislation remains valid
under the WTO
Committee
(G/VAL/M/1)Members who have
submitted their legislation or
amendments under Articles
22.1 and 22.2 of the
AgreementMembers who have
submitted their replies to the
Checklist of Issues
(G/VAL/5)Members who are
delaying
application of the
Agreement under
Article 20.1 of the
Agreement
Gabon WT/Let/1/Rev.1
Gambia Not notified Not notified
Ghana WT/Let/1/Rev.1
Grenada Not notified Not notified
Guatemala WT/Let/24
Guinea Bissau Not notified Not notified
Guinea, Rep. of Not notified Not notified
Guyana WT/Let/226
Haiti WT/Let/231
Honduras WT/Let/1/Rev.1
Hong Kong, China G/VAL/N/1/HKG/1 VAL/1/Add.9 Not applicable
Hungary G/VAL/N/1/HUN/1 VAL/1/Add.6 VAL/2/Rev.1/Add.4
Iceland G/VAL/N/1/ISL/1 Not notified
India VAL/1/Add.24 + Suppl.1
G/VAL/N/1/IND/2VAL/2/Rev.2/Add.6
Indonesia WT/Let/1/Rev.1
Israel G/VAL/N/1/ISR/1 Not notified
Jamaica WT/Let/1/Rev.2
Japan G/VAL/N/1/JPN/1 VAL/1/Add.7 VAL/2/Rev.1/Add.8
Kenya WT/Let/1/Rev.1
Korea G/VAL/N/1/KOR/1 VAL/1/Add.19
+ Suppl. 1-4+ Suppl.3/Corr.1VAL/2/Rev.2/Add.1
+ Suppl.1
Kuwait WT/Let/72
Lesotho Not notified VAL/1/Add. 21 + Suppl.1 VAL/2/Rev.2/Add.2
Liechtenstein G/VAL/N/1/LIE/1 Not applicable
Macau G/VAL/N/1/MAC/1 Not applicable
Madagascar WT/Let/85
Malawi G/VAL/N/1/MWI/1 VAL/1/Add.27 Not notified
Malaysia WT/Let/1/Rev.1
Maldives Not notified Not notified
Mali WT/Let/78
Malta WT/Let/1/Rev.1
Mauritania WT/Let/82
Mauritius WT/Let/1/Rev.2
Mexico VAL/1/Add.25 + Suppl. 1-3
+ Suppl.1/Rev.1VAL/2/Rev.1/Add.10
Mongolia Not notified Not notified
Morocco G/VAL/N/1/MAR/1 G/VAL/N/2/MAR/1
Mozambique Not notified Not notified
Myanmar WT/Let/1/Rev.1
Namibia Not notified Not notified
New Zealand G/VAL/N/1/NZL/1 VAL/1/Add.12 + Suppl.1 VAL/2/Rev.1/Add.10
Nicaragua WT/Let/29
Niger Not notified Not notified
Nigeria WT/Let/106
Norway G/VAL/N/1/NOR/1 VAL/1/Add.11 + Corr.1
+ Suppl. 1-2VAL/2/Rev.1/Add.7
Pakistan WT/Let/1/Rev.1
Panama G/VAL/N/1/PAN/1 G/VAL/N/2/PAN/1
Papua New Guinea Not notified Not notified
Paraguay WT/Let/1/Rev.1
Peru Decision in
WT/L/38
Philippines WT/Let/1/Rev.1G/L/277
Page 5
Members Members who have
indicated their
legislation remains valid
under the WTO
Committee
(G/VAL/M/1)Members who have
submitted their legislation or
amendments under Articles
22.1 and 22.2 of the
AgreementMembers who have
submitted their replies to the
Checklist of Issues
(G/VAL/5)Members who are
delaying
application of the
Agreement under
Article 20.1 of the
Agreement
Poland VAL/1/Add.28
G/VAL/N/1/POL/1Not notified
Qatar Not notified Not notified
Romania G/VAL/N/1/ROM/1 VAL/1/Add.8 + Suppl. 1-2 VAL/2/Rev.1/Add.9
Rwanda Not notified Not notified
St. Kitts & Nevis Not notified Not notified
St. Lucia Not notified Not notified
St. Vincent &
GrenadinesNot notified Not notified
Senegal WT/Let/1/Rev.1
Sierra Leone Not notified Not notified
Singapore G/VAL/N/1/SGP/1 G/VAL/N/2/SGP/1
Slovak Republic G/VAL/N/1/SVK/1 VAL/1/Add.18
+ Suppl.1/Corr.1-2VAL/2/Rev.1/Add.15
+ Suppl.1
Slovenia G/VAL/N/1/SVN/1 G/VAL/N/2/SVN/1
Solomon Islands Not notified Not notified
South Africa VAL/1/Add.15 + Corr.1
+ Suppl. 1-3G/VAL/N/1/ZAFVAL/2/Rev.1/Add.13
Sri Lanka WT/Let/1/Rev.1
Suriname Not notified Not notified
Swaziland Not notified Not notified
Switzerland G/VAL/N/1/CHE/1 VAL/1/Add.5 Not applicable
Tanzania Not notified Not notified
Thailand WT/Let/1/Rev.1
Togo WT/Let/19
Trinidad & Tobago G/VAL/N/1/TTO/1 G/VAL/N/2/TTO/1
Tunisia WT/Let/1/Rev.2
Turkey G/VAL/N/1/TUR/1 VAL/1/Add.29 Not notified
Uganda WT/Let/108
United Arab
EmiratesWT/Let/72
United States G/VAL/N/1/USA/1 VAL/1/Add.1 + Suppl.1-5 VAL/2/Rev.1/Add.1
Uruguay WT/Let/1/Rev.1
Venezuela WT/Let/1/Rev.1
Zambia WT/Let/28
Zimbabwe G/VAL/N/1/ZWE/1 VAL/1/Add.23 VAL/2/Rev.2/Add.5
TOTAL NOTIFIED 15 19 26 53
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