G/VAL/Q/MNG/3  
 
1 June 2023 
(23-3780) Page: 1/2 
Committee on Customs Valuation  Original: English  
 
  
NOTIFICATION UNDER ARTICLE 22 OF AGREEMENT  ON IMPLEMENTATION  
OF ARTICLE VII OF THE GENERAL AGREEMENT  
ON TARIFFS AND TRADE  1994  
REPLIES FROM MONGOLIA TO QUESTIONS  FROM THE EUROPEAN UNION  
REGARDING DOCUMENT G/VAL/ N/1/MNG /1 
MONGOLIA  
The following communication, dated 23 May  2023, is being circulated at the request of the delegation 
of Mongolia . 
 
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Question 1  
 
Articles 11 and 12 of the Law of Mongolia on Customs Tariffs and Customs Duties provide that the 
prices of "goods imported by foreign investment " and "large-scale maintenance equipment " cannot 
be used under the transaction value of identical and similar go ods methods. Could Mongolia please 
elaborate on how this is consistent with Articles 2 and 3 of the Agreement?  
 
Response  
 
Articles 11 and 12 of the Law of Mongolia on Customs T ariffs and Customs Duties state that "the 
determination of transaction value by the transaction value method for identical and similar goods 
is based on the transaction value of the identical and similar goods imported at the same commercial 
level and in approximate the same quantities ". 
 
Article 2 .1(A) and Articl e 3.1(A) of the  Agreement on Implementation of Article VII of the GATT 1994 
states that "if the customs value of an imported item cannot be determined in accordance with 
Articles 1 and 2, then the customs value shall be the transaction value of identical g oods sold for 
export to the same country of importation and exported at or about the same time as the goods 
being valued ". 
 
In addition, Notes to Article 2 and Article 3 of the Interpretative notes of the said A greement states 
that "the customs administrat ion shall, wherever possible, use a sale of similar and identical goods 
at the same commercial level and in substantially the same quantities as the goods being valued ". 
 
Consequently,  "goods imported by foreign investment " and "large-scale maintenance equ ipment " 
specified  in Articles 11 and 12 of the Law of Mongolia on Customs T ariffs and Customs Duties do not 
meet the conditions of "export to the country of importation " and, therefore, they comply with 
Articles 2 and 3 of the Agreement on Implementation of Article VII of the G ATT 1994 and 
Interpretati ve Notes.  
 
Question 2  
 
Article 15 of the Law of Mongolia on Customs Tariffs and Customs Duties provides the use of 
"statistical data and price breakdown tariffs for public use " and "average price indicators timely 
established with regard to goods declared to Customs " under the fall -back method. Could Mongolia 
please elaborate on how this is consistent with Article 7 of the Agreement?  G/VAL/Q/MNG/3  
 
- 2 - 
 
  Respon se 
 
Article 7 of the Agreement states that "If the customs value of the imported goods cannot be 
determined under the provisions of Articles 1 through 6, inclusive, the customs value shall be 
determined using reasonable means consistent with the principles  and general provisions of this 
Agreement and of Article VII of GATT 1994 and on the basis of data available in the country of 
importation ". 
 
According to Article 15.2.2 of Law of Mongolia on Customs T ariffs and Customs Duties, statistical 
data and price b reakdown tariffs for public use  and a verage price indicators timely established with 
regard to goods declared to Customs  office  are applied.  
 
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