RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/167
17 November 1999
(99-4990)
Council for Trade in Goods Original:  Spanish
AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
Progress Report by Peru
Decision WT/L/307 of 15 July 1999
The following communication, dated 12 November 1999, has been received from the
Permanent Mission of Peru.
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I. PURPOSE
The purpose is to inform the WTO Council for Trade in Goods of the progress made by Peru
in fulfilling the work programme that forms part of decision WT/L/307 of 15 July 1999 granting a
waiver from implementation of the Agreement on Customs Valuation as well as the other terms and
conditions of the waiver.
II. REPORT
1. Waiver Decision
Item 1:
Peru's authorities have established a detailed work programme, involving the relevant
ministries and agencies, for the purpose of drafting and approving its legislation and completing its
domestic administrative and legal procedures, including training and dissemination of information, forthe implementation and application of the WTO Agreement on Customs Valuation.
Action:
The sectors involved (Ministry of the Economy and Finance (MEF), Ministry of Industry,
Tourism, Integration and International Trade Negotiations (MITINCI) and the Ministry of Foreign
Affairs (MRREE)) are coordinating and taking the necessary action to apply the Customs Valuation
Agreement in accordance with the terms and timetable agreed.
The National Customs Administration (ADUANAS), in Customs Administration Resolution
No. 000939 of 17 August 1999, decided to set up a commission responsible for applying the
Agreement on Implementation of Article VII of the GATT 1994 in so far as customs valuation is
concerned, according to the guidelines fixed in the work programme approved by the WTO General
Council.
The commission is chaired by the National Customs Administrator and is composed of the
managers and heads of the various sectors involved.G/C/W/167
Page 2
Item 2:
Peru does not and will not apply minimum values; minimum values for customs valuation
purposes are prohibited under the laws of Peru, and reference prices will not be applied following
implementation of the WTO Agreement on Customs Valuation.
Action:
The database of prices for the Goods Valuation System (SIVAM) is being revised by the
National Customs Administration so that it can be used as an indicator of price risk when the Customs
Valuation Agreement is applied.
Item 3:
The Government of Peru will implement and apply as of 1 August 1999, paragraph 2 of
Decision 4.1 on the Valuation of Carrier Media Bearing Software for Data Processing Equipment.
Action:
Paragraph 2 of Decision 4.1 on the Valuation of Carrier Media Bearing Software for Data
Processing Equipment was adopted by Supreme Decree No. 128 99-EF of 30 July 1999.  Moreover,
the specific procedure for the valuation of carrier media bearing software was approved by NationalInspectorate Resolution No. 000628 of 5 August 1999.
Item 4:
Peru's intention, should it decide to continue to use preshipment inspection after
implementing the WTO Agreement on Customs Valuation, to limit the use of preshipment inspection
services in the area of customs valuation to post-entry risk assessment procedures, and to establish a
government mechanism to address expeditiously any problems exporters from other countries might
encounter with preshipment inspection services.
Action:
The Ministry of Foreign Affairs is examining the rules regulating preshipment inspection to
be used for risk assessment when the Agreement on Customs Valuation enters into force, within the
framework of the Agreement on Preshipment Inspection, as well as the special procedures to be
applied where appropriate.
The examination also covers the creation of a government mechanism to address
expeditiously any problems exporters from other countries might encounter with preshipment
inspection services.
Item 5
The Government of Peru will apply the provisions of the WTO Agreement on Customs
Valuation to 50 per cent of the Harmonized System headings in Peru's current Customs Tariff
(Arancel de Aduanas del Perú) as of 1 January 2000, with such headings being notified by the
Government of Peru to the Council for Trade in Goods prior to implementation under this paragraph.G/C/W/167
Page 3
Action
The National Customs Administration has drawn up a proposal to give effect to this
commitment.  The proposal is currently being considered by the Ministry of the Economy and
Finance and will be notified to the WTO before being applied.
2. Programme of work
2.1 General activities
DEFINITION OF THE OVERALL STRATEGY FOR APPLYING THE CUSTOMS VALUATION AGREEMENT
This activity, envisaged for the first two quarters of this year, has already been carried out
under the responsibility of the sectors concerned:  MEF, MITINCI and MRREE.
Allocation of resources
(a) Budgetary resources
This activity will be ongoing throughout the implementation of the programme of work, and
will be coordinated by the Technical Secretariat of the Implementation Commission and the
Planning and Budget Division both this year and next in accordance with the medium-term
strategic plan of the National Customs Admini stration.  The Commission is responsible for
final approval of the budget according to th e new organizational structure adopted for the
purposes of applying the WTO Agreement on Customs Valuation.
(b) International technical cooperation
APEC:
The following training modules for customs valuation instructors have been given as part of
APEC's  technical cooperation.
Module 1:  Complex aspects of WTO valuation
This course was given by Messrs. Feldman and Spencer of the United States Customs from
3 to 11 June 1999 at the National Customs College and was attended by twenty (20) people
from the various sectors responsible for applying the Agreement.
Module 2:  Valuation infrastructure
This course was given by Mr. Stuart MacDonald and Ms Carolyn Baker of the Canadian
Customs from 21 to 25 June 1999 at the National Customs College, and was attended by
twenty (20) participants from the various sectors responsible for applying the Agreement.
Module 3:  Ex post verification of value
This course was given by Messrs. Leo Olvera and Howard Spencer of the United States
Customs from 20 to 24 September 1999 at the National Customs College and was attended by
twenty (20) persons from the various sectors responsible for applying the Agreement.
The training materials and the recordings of the course are being held at the National Customs
College.G/C/W/167
Page 4
IDB:
The IDB-ADUANAS project is providing support similar to that provided by the APEC for
the training of forty instructors.
At the request of the Government of Peru, in November 1999 the Inter-American
Development Bank approved the fourth consecutive technical cooperation programme for the
National Customs Administration whose objectives and activities include adaptation to the
provisions of the WTO Agreement on Customs Valuation.
REPORTING AND MONITORING STAGES
Ongoing assessment (Multisectoral Commission)
In Note No. 505-99-EF/15, the Deputy Minister for the Economy requested the National
Customs Administration to inform her of the progress made in fulfilling the programme of work set
out in the Waiver Decision (WT/L/307).
Reports to WTO Members
The Ministry of the Economy and Finance, on behalf of the Government of Peru, is
responsible for informing the WTO Council for Trade in Goods before 15 November 1999 of progress
made in the programme of work to implement the Agreement.
2.2 Specific activities
2.2.1 Updating of Legislation
DEFINITION OF TECHNICAL ASPECTS CONTAINED IN THE CUSTOMS VALUATION AGREEMENT
Under this activity, the National Customs Administration transmitted Report
No. 152-99-ADUANAS/INTA/GNVNO/DV to the MEF indi cating the instruments of the Brussels
Technical Valuation Committee and the decisions of the Geneva Valuation Committee which should
be incorporated into domestic legislation.  The document also indicates the definitions not contained
in the Agreement which should be taken into account in the regulations to be adopted.  This report is
being considered by the Ministry of the Economy and Finance.
PREPARATION AND APPROVAL OF THE LEGAL RULES FOR THE APPLICATION OF THE CUSTOMS
VALUATION AGREEMENT
This activity is currently being carried out in coordination with the National Customs
Administration in order to establish the necessary rules within the timetable fixed.
The National Customs Administration is preparing a proposal on the regulations and
operational rules envisaged in the programme of work, on the basis of a proposal submitted to the
MEF.
DETERMINATION OF HEADINGS FOR THE APPLICATION OF THE CUSTOMS VALUATION AGREEMENT
Report No. 157-99-ADUANAS/INTA/GNVNO/DV contains a proposal from the National
Customs Administration on the tariff headings in the Harmonized System that will form the first
group subject to the Customs Valuation Agreement as from 1 January 2000.  This proposal is being
considered by the MEF and will be notified to th e Council for Trade in Goods before entering into
effect.G/C/W/167
Page 5
APPLICATION OF THE CUSTOMS VALUATION AGREEMENT
There are three specific dates for application of the Customs Valuation Agreement under this
heading.
Software
This activity was carried out through publication of Supreme Decree No. 128-99-EF of
30 July 1999 in the Official Journal " El Peruano ", adopting paragraph 2 of Decision 4.1 on the
Valuation of Carrier Media Bearing Software for Data-Processing Equipment.  National Inspectorate
Resolution No. 000628 of 5 August 1999 also approved the specific procedure for the valuation of
carrier media bearing software.
First group of headings (50 per cent)
As mentioned above, the MEF is considering the proposal prepared by the National Customs
Administration.
Second group of headings (50 per cent)
The remaining tariff headings of the Harmonized System (50 per cent), will become subject to
the Agreement on Customs Valuation as of 1 April 2000.
2.2.2 Training in and publicizing the Customs Valuation Agreement, its decisions and the national
implementation rules.
TRAINING OF CUSTOMS PERSONNEL AND OPERATORS
Training of instructors with APEC support (20)
As mentioned above, the National Customs Ad ministration is carrying out a three-module
training programme for 20 people during this year, with support from APEC.
Training of instructors with IDB support (40)
The IDB-ADUANAS project will train 40 instructors in addition to those trained with APEC
support.
Training of customs personnel (by instructors)
Training courses will be given to customs personnel by instructors trained with support from
APEC and the IDB project.  The National Customs College is drawing up the following training
programmes:
(a) Officials, basic level
A basis course on WTO valuation will be given to administrative officials and heads
with a corresponding assessment so that they understand the important changes that
will take place with the new valuation system in comparison with the Brussels
Definition of Value and the normal competition price method.G/C/W/167
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(b) Specialists, higher level
A course will be held for personnel of the customs valuation section of the National
Inspectorate of Customs Technique on the basis of module 1of the APEC course. The
National Inspectorate of Customs Technique will be responsible for applying the newvaluation system.
(c) Auditors, intermediate level
A course will be given to personnel of the National Customs Inspectorate, which is
responsible for ex post verification of the various customs regimes and operations.
P
UBLICIZING THE AGREEMENT AMONG THE FOREIGN TRADE OPERATORS , USERS AND THE PUBLIC IN
GENERAL
It is envisaged that this activity will take place in the fourth quarter of this year and the first
quarter of next year after approval of the rule s governing the application of the WTO Agreement on
Customs Valuation.
2.2.3 Material infrastructureR
EORGANIZATION OF THE AREAS INVOLVED IN THE APPLICATION OF THE CUSTOMS VALUATION
AGREEMENT
Through its planning and budget division, the National Customs Administration is drawing up
a proposal on the new structure of the sectors directly involved in applying the new valuation system.
ADAPTATION OF THE COMPUTERIZED MODULES THAT MAKE UP THE INTEGRATED CUSTOMS
MANAGEMENT SYSTEM (SIGAD)
This activity is envisaged for the fourth quarter of this year up until the middle of the first
quarter of next year and includes the following:
Electronic transmission of the Declaration of Value format (B1)
The B1 format of the DUI (import licence) will be the main risk indicator for the ex post
verification of value under the WTO Customs Valuation Agreement and also for application of the
second and third methods established in the Agreement concerning identical and similar goods
respectively.
For this purpose, the National Customs Administration is preparing a draft B1 format to
replace the existing one and is adapting the electronic data transmission systems.
Computerized import formalities
After completing the restructuring of the sectors responsible for applying the new valuation
system, namely, the customs operations, the National Inspectorate of Customs Technique (INTA) and
the National Customs Inspectorate (INFA), the import procedures will have to be adapted to the new
structure and the WTO valuation rules.  The National Customs Administration is revising the
computerized modules of the computerized customs clearance system (SIGAD) to adapt it to the new
rules.G/C/W/167
Page 7
Electronic links between the customs offices in the valuation area
The National Customs Administration is coordinating compliance with this commitment with
the respective sectors in order to link customs operations and so improve ex post  verification of the
customs value declared during the clearance procedure.
Reorganization of the inspection area
This activity is currently being carried out and includes the following action in particular:(a) Definition of functions
The National Customs Inspectorate (INFA) is responsible for valuation under the
import inspection system.  Its functions are therefore being reviewed to adapt them to
the new rules of the WTO Agreement on Customs Valuation.
(b) Determination of resources
The National Customs Administration is currently determining the resources needed
for the most effective application of the WTO Customs Valuation Agreement.  In
order to meet the objectives fixed, the Administration intends to reinforce the
National Customs Inspectorate with auditors.
(c) Determination of the ex post  risk management procedure
The effective implementation of the Customs Valuation Agreement requires proof
and verification of value after import, so as to speed up the clearance of goods and
minimize delays in customs formalities.  The National Customs Administration is
therefore developing ex post risk management procedures that will come into effect
when the aforementioned Agreement is applied.
(d) Auditors' training (target 300)
The National Customs College is drawing up a training programme for auditors in
order to comply with this target and by the end of the year expects to have trained
over 100 persons.
(e) Adaptation of the data base for use in the ex post  risk control procedure in the
framework of the WTO Customs Valuation Agreement
The National Customs Administration is currently adapting the database to the new
rules in the WTO Customs Valuation Agreement so that it can be used as an ex post
risk control procedure.  The SIVAM will be used as a price risk indicator.
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