RESTRICTEDWORLD TRADE
ORGANIZATIONG/VAL/W/54
22 December 1999
(99-5549)
Committee on Customs Valuation Original:  Spanish
COMMUNICATION FROM THE DOMINICAN REPUBLIC CONCERNING
PARAGRAPH 1 OF ANNEX III OF THE AGREEMENT ON
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994
The following communication, dated 14 December 1999, has been received from the
Permanent Mission of the Dominican Republic.
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In order to ensure the application of the Agreement on Implementation of Article VII ("the
Agreement") of the General Agreement on Tariffs and Trade 1994 ("GATT 1994") the Government
of the Dominican Republic, resorting to the speci al provisions relating to the special and more
favourable treatment for the developing countries, wishes to avail itself of the possibilities offered by
Annex III, paragr aph 1, which permits developing country Members which have invoked the five-year
delay provided for in Article 20.1 to request an extension of such period provided it does so within the
period referred to in the text.
We would like to submit a request to this Committee for an extension of the delay in the
application of the provisions of the Agreement on Customs Valuation, starting on 9 March 2000 forthe specific purpose of properly conducting all of the reforms essential to the strict implementation of
Article VII, which would enter into force on 9 March 2002.
This request takes account of Article VII of the GATT 1994, under which the
Dominican Republic is granted a transitional period of five years which began on 9 March 1995(G/VAL/2/Rev.1).
The background for this request is as follows:(a) The Dominican Republic deposited its instrument of ratification of the Marrakesh
Agreement on 9 March 1995, having invoked the special provisions for the
developing country Members contained in Article 20.1 (delayed application of the
provisions of the Agreement), Article 20.2 (delayed application of the computed
value method), paragraphs 2, 3 and 4 of Annex III, which refer to the sequential order
of application of Articles 5 and 6, the application of Articles 5 and 6, and theapplication of Article 5.2 whether or not the importer so requests;
(b) the five-year transition period invoked upon signing and accepting the Agreement
comes to an end on 9 March 2000, as indicated in document G/VAL/2/Rev.1-9;
(c) the Government of the Dominican Republic has made enormous and serious efforts to
reform the administrative and technical structure of its customs system, stressing theG/VAL/W/54
Page 2
professionalization of staff, trade facilitation and the automation of a large part of its
customs procedures;
(d) the United Nations Development Programme (UNDP) and the Organization of
American States (OAS) cooperated in these reform efforts, and both institutions haverecognized the progress achieved, in particular the OAS which continues to provide
considerable technical cooperation assistance;
(e) thus far, we have asked the WTO Committee on Customs Valuation for the technical
assistance offered by that body to the countries interested in improving the
operational conditions for giving effect to the specific provisions of Article VII of the
GATT 1994.
The process of transforming the technical structure of the customs system is now quite
advanced, and to ensure the proper administration of the Agreement to the benefit of international
trade and the continuation of the full liberalization impetus under the terms of the General Agreement,
the transition period needs to be extended.
The modernization of customs in the Dominican Republic can be seen in the new procedures
implemented.  Accelerated clearance of goods, computerized networks, declarations using magnetic
media, express clearance, advance declaration, checking at destination and online clearance are all
expeditious procedures forming part of the ordinary  work of the Dominican customs.  Added to all of
this is the introduction of new trade instruments, such as the cargo consolidation warehouses
(Decree 48/99), reexport warehouses (Decree 106/95) and the new working procedures with the cargo
consolidators and courier enterprises (Decrees 96/98 and 107/98).
As regards the goods valuation system, the LETTERS OF GUARANTEE represent a
movement towards the full adoption of the WTO Customs Valuation Agreement.  It is a mechanism
aimed at gradually eliminating the real difficulti es connected with under-valuation and the possibility
of arbitrariness.  It allows traditional importers  to benefit from automatic acceptance of the values
presented in the original commercial invoices under conditions that are specifically set forth and in
accordance with the principle of subsequent inspection.
However, the progress achieved in the technical customs reform process and the adjustments
made with a view to bringing the existing stru cture into conformity with the Customs Valuation
Agreement are in themselves no guarantee of the strict implementation of Article VII, and a further
period of time will be essential to take such action as is st ill required.
This additional time would make it possible to attain the following objectives:  introduce
changes in the country's legal structure;  complete the process of simplification of customs
regulations;  optimize the work of the customs valuation department;  boost the efficiency of the work
of the customs auditing service;  complete the upgrading of the computer network;  modify the
organizational structure;  continue the process of technical improvement of human resources;  and
establish inspection services to control compliance with origin requirements.
These considerations provide ample justification for our request, and we would like to thank
the Members of the WTO in advance for their willingness to accept this extension and provide us with
the time required to bring our customs into conformity with the valuation system established in
Article VII of the GATT 1994 Agreement.G/VAL/W/54
Page 3DOMINICAN REPUBLIC
GENERAL CUSTOMS DIRECTORATE (DGA)
Work Programme
Period 2000 - 2002
General objective: Completion of the process of implementation of the Customs Valuation Agreement
(Implementation of Article VII of the GATT 1994)
Specific objectives Activities P eriod Requirements Goals Indicators
1. Updating of the legal
structure of the
Dominican customs(a) Approval of the Draft Tariff
Reform and development of
legislation to ensure its efficient
implementation.
(b) Approval of the Draft Customs Law
in order to bring the institution intoconformity with modern traderequirements and with the
commitments assumed.
(c) Updating of the regulations
necessary for the implementation ofthe new legal system.18 months Consultations with the economic
sectors in order to achieve the
broadest possible agreement on
the implementation of the NewTariff Code and the DominicanCustoms Law.New Tariff Code and
Customs Law24 months:  full entry into
force of the Customs Code
and the Dominican
Customs Law with thecorresponding regulationsfor their implementation inall customs areas.
2. Simplification of
customs procedures(a) Completion of the General Manual
of Procedures for all operational
and technical areas.
(b) Completion of the process of
amending all of the documents usedfor internal control.
(c) Development of risk assessment
programmes to enhance selectivity
in the inspection of goods.
(d) Re-equipment and modernization of
the laboratory in keeping with thecurrent requirements of customsoperations.18 months - Technical assistance of
international bodies for
reviewing the outcome of the
process of re-engineeringprocedures and amendingdocuments.
- Intensification of work
towards achieving conformity
of all customs officials
directly involved in theapplication of the entireinternal reform process.
- Modernization of laboratory
installations.Automation of all customs
procedures.
Monitoring of the reformed
customs structure.
Installation of new
laboratory equipment.18 months:  reduction to a
minimum of the time
required for clearing goods
through customs and of thecosts of that process.
3. Strengthening of the
customs valuation
service(a) Completion of the adaptation of the
valuation system to bring it into full
conformity with Article VII of theGATT 1994.
(b) Development of valuation
regulations so as to fully15 months - Hiring of specialists in the
implementation of WTO
valuation systems usingelectronic tools (eightmonths).
- Organization of specializedFull application of the
GATT 1994 Customs
Valuation Agreement.15 months:  application of
the GATT valuation
concept and maintenance ofeffective control of thetransaction value of 50% ofdeclarations usingG/VAL/W/54
Page 4Specific objectives Activities P eriod Requirements Goals Indicators
incorporate these provisions into the
internal operating system.
(c) Strengthening of the central
valuation unit in the DGA.
(d) Strengthening of the local units
responsible for operating in
accordance with the new WTOvaluation system.
(e) Creation of the Technical
Consultation and Support Library
for staff working in the customs
valuation area.training for six officials over a
period of four weeks incountries with experience inimplementing the newvaluation system.
- Completion of the database
organized in the valuationdepartment of the DGA.mechanisms that permit the
selection and control ofsensitive goods.
4. Improve the auditing of
customs administration(a) Improvement of the auditing
department in the areas of internaland external control.
(b) Selection of a representative sample
of major importers to confirm the
efficiency and flexibility of
controls.
(c) Development risk assessment
programmes in order to make thesubsequent control section moreeffective.
(d) Definition, development and
implementation of a database inaccordance with inspection needs.
(e) Placing auditing functions under the
Technical Sub-Directorate of the
DGA.18 months - Hiring of an international
consultant specialized in theorganization of auditingfunctions (six months).
- Advanced training programme
for auditors (six months)
- Purchase of new computer
equipment with high storagecapacity.All customs service users. 12 months:  scope of
inspection in one year, upto 50% of service users.18 months:  scope ofinspection in the second
year up to 90% of service
users.
5. Upgrading of the
computer system.(a) Expansion of programmes for the
conditional relief and specialcustoms import regimes.
(b) Preparation of manuals containing
the operational design of thenetwork.
(c) Expansion of the computer system
to all points of the network.
(d) Further application of the continued
training programme to improve themanagement of the computersystem by authorized officials.15 months - Training of highly qualified
professionals in dataprocessing.
- Formation of technical
customs teams to optimizecomputerized tariffs.
- Further implementation of the
special continued trainingprogramme in the area ofnetwork control andoperation.Complete utilization of
computer resources for thecontrol of the new valuationsystem.In 15 months:  all customs
declarations should beprocessed by computer.G/VAL/W/54
Page 5Specific objectives Activities P eriod Requirements Goals Indicators
6. Stepping up the process
of upgrading theorganizational structure(a) Completion of the development of
the organizational structure withcargo description and definition ofadministrative and technicalfunctions.18 months - Specialized consultation with
domestic companies.Introduction of the new
structure.In 12 months:
establishment of a newstructure in keeping withthe requirements of amodern customs
administration.
7. Optimization of existing
human resources andestablishment of acontinued trainingprogramme(a) Definition of the administrative
career structure with rulesgoverning recruitment, entryselection and promotion.
(b) Establishment of salary levels and
incentives corresponding to the
responsibilities held.
(c) Determination of areas requiring
training and implementation of thecorresponding programmes.12 months - Consultation in human
resources management (sixmonths)
- Support in respect of
infrastructure and equipment
for training.Establishment of the
administrative careerstructureIncorporation of
professionals:  first year,25% of staff.Second year, 50% of staff.
8. Creation of the
Inspection Department
for the Application of
Rules of Origin(a) Establishment of a specific unit for
the inspection of the origin of
goods.
(b) Preparation of a manual on the
application of specific rules oforigin.
(c) Tightening of links with other
customs administrations to establish
risk perimeters.
(d) Establishment of the database
concerning the provenance andorigin of goods.12 months - Technical advice from
international organizations
(six months).
- Further implementation of the
continued training programmeon rules of origin (sixmonths).
- Programme of training
courses in model customs
administrations with respectto the application of rules oforigin.Development of a team
capable of performing tasks
relating to rules of origin.Levels of efficiency in
determining the origin of
goods.
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