./.  WORLD TRADE  
ORGANIZATION  G/VAL/W/131 
27 February 2004  
 
(04-0874) 
Committee on Customs Valuation Original:   English 
   
INFORMATION ON CERTAIN ASPECTS OF THE 
EUROPEAN COMMUNITIES VALUATION POLICY  
 
Communication from the European Communities
 
 
 
 The following communication, dated 24 February 2004, from the Delegation of the European 
Communities is being circulated  in response to questions raised  by the delegation of Brazil 
(G/VAL/W/122). 
 
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EC replies to Brazil’s request for clarification concerning  
Regulation (EC) 3223/94 on the EC valuation policy  
 
 
Question 1 (Incentive to use the standard value)  
 The standard value is one way to determine the entry price, and as such offers added choice to 
an importer. There is no obligation to use it, a nd this was made clear in order to satisfy WTO 
obligations.  
 
Question 2 (Relationship with Agreement on Implementation of Article VII of GATT 1994) 
 
 Customs value is determined in accordance with the WTO Customs Valuation Agreement. 
Regulation 3223/94 provides for determination of the entry price, and identifies the primary method 
of customs value (transaction value method) in this context. The entry price may also be determined 
by the 'standard value' which is a facility for importe rs and which, strictly speaking, ought not be used 
by importers when such means to dete rmine a customs value is available. 
  The responses to questions raised by India in th e past have also given some clarification on 
this point and may be helpful.   
  
Question 3 (all in relation to Regulation 3223/94) 
 
(a) (criteria and methodology for the choice of rep resentative markets ) 
 
 The representative markets are determined on a practical basis, and precise quantitative 
criteria are not specified. Initially, the representativ e markets as used under the former system were 
used. From time to time, modifications are made as the objective is to remain representative with respect to importations.   G/VAL/W/131 
Page 2  
 
(b) (cost structure of qualifying produc ts – definition of standard value) 
 
 It is not clear what is being asked here, but th e cost structure of imported products is not taken 
into account and is not a direct factor in dete rmining the indicative 'standard import price'.  
 
(c) (elements affecting the price)  
 
 The calculation is only concerned with the actua l market price, without reference to elements 
having an influence on this price.  (d) (transparency) 
 
 Transparency is ensured by specifying by  regulation the calculation basis, as well as 
publication of the results of these calculations.  (e) (seasonality) 
 
 The relevant prices are established on a daily basis, as are the calculations. Seasonal variations are fully reflected and in that sense cannot have an adverse effect on the results.  
 
(f) (representative markets)  
 
 The methodology for the weight of the 'repre sentative markets' is based on the taking into 
account of the quantities dealt with by these markets,  thus assuring their relative representativity. 
 
(g) (advantage to importer)  
 
 With respect to the rules on customs value, the importer should first of all declare his goods in accordance with the transaction value method. However, if the imported goods are not sold for export 
to the EC (which would be the case, for example,  if the goods are supplied on consignment) then the 
importer is not able to declare the transaction va lue method. In such case s, the secondary customs 
value methods must be applied. When this is th e case, importers are keen to use reliable data 
established in accordance with the rul es in force and up until now have wanted that this is done by the 
competent authorities.    
(h) (implications of not using standard value)  
  The choice made by an importer will have an effect on the duty paid in accordance with the 
tariff schedule in place.    
(i) (statistics) 
 
 Statistics are not recorded with respect to the choices made by importers in this context, so it 
is not possible to indicate the extent of use of the standard import value. 
 
(j) and (k) (queries on use of standard value, audit  and goods imported from Brazil) 
 
 Same response as for the question at point (i).  
 
 It is hoped that the above information is usef ul. We would be pleased to provide any further 
clarification of the regulation in question.  
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