G/VAL/Q/EU/2  
 
4 April 2023 
(23-2331) Page: 1/3 
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 THE EUROPEAN UNION TO QUESTIONS FROM CHINA  
REGARDING DOCUMENT G/VAL/ N/1/EU/1 
EUROPEAN UNION 
The following communication, dated 30 March  2023, is being circulated at the request of the 
delegation of the European Union . 
 
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QUESTION 1 : 
 
Article 142 Paragraph 6 of the Commission Implementing Regulation (EU) provides that the customs 
value of certain perishable goods as referred to in Annex 23 -02 imported on consignment may be 
directly determined in accordance with Deductive method, based on unit prices notified to the 
Commission by the Member States and disseminated by the Com mission, which will be valid for a 
period of 14 days.  
 
However, according to CVA, the primary basis for customs value should be "transaction value"; 
alternative methods should be used in sequential order where transaction value method is not 
applicable; th e use of arbitrary or fictitious customs value should be precluded.  
 
Question 1.1  
 
Could the EU explain  whether Article 142 of the Commission Implementing Regulation (EU) is in 
conformity with the general principles and relevant provisions of the CVA ? 
 
Response  
 
Article 142 "Deductive Method " of Implementing Regulation 2015/2447 (UCC IA) is in conformity 
with the principles and relevant provisions of the Agreement. The transaction value remains the 
primary basis for customs valuation. The application of Article 142(6) UCC IA is strictly limited to 
certain perishable goods (listed in Annex 23 -02 UCC IA) and imported on consignment (i.e. in the 
absence of a valid transaction value at the moment of import).  
 
Question 1.2  
 
Could the EU explain h ow the unit pr ices of the perishable goods (disseminated by the Commission)  
are formulated?  
 
Response  
 
EU member States notify to the Commission unit prices for each product category listed in 
Annex  23-02 UCC  IA per 100 kg net, which are calculated under the methodology detailed in 
paragraphs 4 and 5 of Annex 23 -02 UCC IA. Then, the European Commission disseminates such 
information via the electronic system TARIC as EUR per 100 kg net.  G/VAL/Q/EU/2  
 
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  QUESTION 2: 
 
Article 135 Paragraph 5 of the Commission Implementing Regulation (EU) stipulates that "For the 
purposes of Article 71(1)(b)(iv) of the Code, the costs of research and preliminary design sketches 
shall not be included in the customs value. " 
 
According to A rticle 8.1(b)(iv) of the CVA: "In determining the customs value under the provisions 
of Article 1 , there shall be added to the price actually paid or payable for the impo rted goods:  (b) the 
value, apportioned as appropriate, of the following goods and services where supplied directly or 
indirectly by the buyer free of charge or at reduced cost for use in connection with the production 
and sale for export of the imported go ods, to the extent that such value has not been included in 
the price actually paid or payable:  (iv) engineering, development, artwork, design work, plans and 
sketches, undertaken elsewhere than in the country of importation and necessary for the productio n 
of the imported goods ". 
 
Could the EU explain the difference between "research and preliminary design " referred to 
Article  135 Paragraph 5 of the CIR and "development and design work " as specified in 
Article  8.1(b)(iv) of the CVA, and whether Article 135 Paragraph 5 of the CIR implements any 
provisions of the CVA?  
 
Response  
 
Article 71(1)(b)(iv) of Regulation 952/2013 (UCC) reflects the provisions of Article 8.1(b)(iv) of the 
Agreement. The costs described in Article 135(5) UCC IA precede those described in 
Article  71(1)(b)(iv) UCC in the process of knowledge acquisition and are generally reflected 
differently from an accounting standpoint. This is in line with Decision on Linguistic consistency of 
the item "development" in Article 8.1(b)(iv) of the Agreement available at document G/VAL/5.  
 
QUESTION 3 : 
 
Article 136 Paragraph 3 of the Commission Implementing Regulation (EU) stipulates that "If royalties 
or licence  fees relate partly to the goods being valued and partly to other ingred ients or component 
parts added to the goods after their importation, or to post -importation activities or services, an 
appropriate adjustment shall be made. " 
 
Can "appropriate adjustment " here be understood as apportionment of royalties and licence  fees? 
However, apportionment of Article 8 adjustment is expressly provided for in Article 8.1 (b) while 
Article 8.1 (c) remains silent in this point. Could the EU explain whether Article 136 Paragraph  3 of 
the CIR implements any provisions of the CVA?  
 
Response  
 
Article 136(3) UCC IA implements Article 8.3 and Note to Article 8 of the Agreement.  
 
QUESTION 4 : 
 
Article 73 paragraph 1 of the UCC stipulates that "The customs authorities may, upon application, 
authorize  that the following amounts be determine d on the basis of specific criteria, where they are 
not quantifiable on the date on which the customs declaration is accepted: " 
 
Question 4.1  
 
Could the EU explain or clarify  whether Article 73 of the UCC is in accordance with the principles of 
the CVA ? 
 
Response  
 
Article 73 UCC is in accordance with the principles and the law of the Agreement. Furthermore, it is 
in line with the Agreement on Trade Facilitation, which provides for the simplification of import 
requirements with a view to facilitate the rapi d release of goods and to implement the least trade 
restrictive measure that fulfils the relevant policy objective.  
 G/VAL/Q/EU/2  
 
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  Question 4.2  
 
Could the EU explain or clarify w hether Article 73 implements any provisions of the CVA ? 
 
Response  
 
See previous answer. Article 73 UCC is a trade facilitation provision and, as such, it is in line with 
both the Customs Valuation Agreement and the Agreement on Trade Facilitation.  
 
Question 4.3  
 
Could the EU explain or clarify w hether a uniform procedure is in place f or the determination of 
"specific criteria " in each cases ? 
 
Response  
 
The specific criteria used in authorisations under Article 73 UCC are determined in conformity to the 
type of amounts that they replace. Under Article 71(1)(b) of Regulation 2015/2446 (U CC DA), an 
authorisation under Article 73 UCC can only be granted if the customs value determined will not 
significantly differ from that determined in the absence of an authorisation.  
 
Question 4.4  
 
Could the EU explain or clarify t he treatment applicable  when the actual amounts deviate largely 
from the amounts determined based on "specific criteria "? 
 
Response  
 
The relevant amounts cannot differ significantly from the specific criteria, as this is a legal 
requirement for the granting of the authorisation under Article 71(1)(b) UCC DA. If they were to 
differ significantly due to exceptional and unforeseen circumstances, the customs authorities have 
the possibility to, inter alia, amend or revoke the authorisation under Article 28 UCC.  
 
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