. /.WORLD TRADE
ORGANIZATIONG/VAL/W/117
6 December 2002
(02-6757)
Committee on Customs Valuation
DRAFT TERMS OF REFERENCE FOR THE WORK OF THE
TECHNICAL COMMITTEE ON CUSTOMS VALUATION IN CONNECTION WITH
CONCERNS ON THE ACCURACY OF THE DECLARED VALUE
Ministers at Doha adopted the Decision on Implementation-Related Issues and Concerns
(WT/MIN(01)17), paragraph 8.3 of which:
"Underlines the importance of strength ening cooperation between the customs
administrations of Members in the prevention of customs fraud.  In this regard, it is
agreed that, further to the 1994 Ministerial Decision Regarding Cases Where Customs
Administrations Have Reasons to Doubt the Truth or Accuracy of the Declared Value,
when the customs administration of an importing Member has reasonable grounds todoubt the truth or accuracy of the declared value, it may seek assistance from the
customs administration of an exporting Member on the value of the good concerned.  In
such cases, the exporting Member shall offer cooperation and assistance, consistent with
its domestic laws and procedures, including furnishing information on the export value
of the good  concerned.  Any information provided in this context shall be treated in
accordance with Article 10 of the Customs Valuation Agreement.  Furthermore,
recognizing the legitimate concerns expressed by the customs administrations of several
importing Members on the accuracy of the declared value, the Committee on Customs
Valuation is directed to identify and assess  practical means to address such concerns,
including the exchange of information on export values and to report to the General
Council by the end of 2002 at the latest."
The Committee on Customs Valuation (hereafter the Committee), in carrying out its mandate,
has considered three written submissions, which aim to address this mandate.  One from India is
contained in G/VAL/W/102, from Canada in G/ VAL/W/110 and from the European Communities in
G/VAL/W/112.  In light of these proposals, questions received from Mexico in G/VAL/W/104, and
the exchange of views as contained in the minutes of the meetings (G/VAL/M/31 and G/VAL/M/32),the Committee requests the Technical Committee on Customs Valuation (hereafter, the TCCV), in
accordance with paragraph 2(d) of Annex II of the Agreement on Customs Valuation, to provide
technical input and advice on the issues listed below.  In carrying out this request, the Committee
urges the TCCV, in accordance with paragraph 3 of Annex II of the Agreement, to carry out its work
as expeditiously as possible.  In any case, the TCCV should conclude its work and report to theCommittee by 15 May 2003.
In light of the elements contained in the above-mentioned submissions and those expressed by
Members in the Committee's discussions, the Committee requests the TCCV to:
1) Examine the technical aspects of the practical means considered in the Committee or others
related to them to address concerns about the accuracy of declared value, including the exchange of
information on export values, to cover, inter alia , the following points:G/VAL/W/117
Page 2
• the elements contained in the format provided in the Annex of G/VAL/W/102, possibly
taking note of the current work in the TCCV1;
• the bilateral approach through exchange of information arrangements;
• techniques or processes used by customs administrations in [the final determination and/or
verification respecting the value of goods];
• the method of communication and the ideal time-frame for exchange of information;
• the usefulness of contact points for exchange of information on export values
2) Intensify its efforts towards finalizing the guidelines on the development and use of a
valuation database as a risk assessment tool.  The Committee also urges the TCCV to explorecooperation and coordination with similar work being carried out by other international organizations.
3) Taking into account relevant work of other bodies[
2], indicate appropriate customs tools,
mechanisms, and practices in cases involving fraud and suspected fraud, in customs valuation;
indicate the feasibility of making a distinction between such cases in the context of exchange ofinformation on customs value.
4) Provide data and information on the principles and practices governing cooperation and
assistance between customs administrations, including practical technical assistance and capacity-
building initiatives that might be appropriate to address concerns regarding the accuracy of the
declared value.
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1such as the Draft Guide to the Exchange of Cust oms Valuation Information, under consideration by
the TCCV.
[2such as the World Customs Organization Enforcement Committee.]