G/VAL/77  
 
11 November 2020  
(20-8085) Page: 1/6 
Committee on Customs Valuation    
 
TWENTY -SIXTH ANNUAL REVIEW OF THE IMPLEMENTATION AND OPERATION  
OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF  
THE GENERAL AGREEMENT ON TARIFFS AND TRADE 19941 
Article 23 of the Agreement provides that "the Committee shall review annually the implementation 
and operation of this Agreement taking into account the objectives thereof".  The main objectives of 
the Agreement are those listed in the Genera l Introductory Commentary. The annual review of the 
Committee should cover th e implementation and operation of the Agreement in the light of its 
objectives and specific obligations.  
At its meeting  of 19 October 2020 , the Committee on Customs Valuation conducted the 26th annual 
review of the implementation and operation of the Agree ment. 
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1 This report was adopted by the Committee on Customs Valuation at its meeting of 19 October 2020.  G/VAL/77  
 
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  The contents of this document are as follows:  
  Page 
I. MEMBERS' DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER STATUS  ... 2 
(a) Delayed Application and Reservations  ................................ ................................ ........  2 
(i) Article 20.1 (delayed application of the provisions of the Agreement)  ............................  2 
(ii) Article 20.2 (delayed  application of the computed value method)  ................................ .. 2 
(iii) Annex III, paragraph 1 (extension of the five -year delay period)  ................................ ... 2 
(iv) Annex III, paragraph 2 (reservation concerning minimum values)  ................................ . 3 
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5 
and 6) (53)  ................................ ................................ ................................ .....................  3 
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so 
requests) (51)  ................................ ................................ ................................ .................  3 
(b) Observer Governments (25)  ................................ ................................ .....................  3 
(c) Observer International Organizations (6)  ................................ ................................ ... 4 
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION ............................  4 
III. MEETINGS OF THE COMMITTEE  ................................ ................................ ............  4 
IV. NATIONAL LEGISLATION AND OTHER NOTIFICATIONS PRESENTED  ....................  4 
(a) Texts of national legislation  ................................ ................................ ......................  4 
(b) Checklist of issues  ................................ ................................ ................................ ... 4 
(c) Information on the application of the Committee Decisions  ................................ ...........  5 
V. TECHNICAL ASSISTANCE  ................................ ................................ ......................  5 
VI. ISSUES  RELATED TO IMPLEMENTATION OF THE AGREEMENT  ...............................  5 
VII.  PRESHIPMENT INSPECTION  ................................ ................................ .................  5 
VIII.  REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION  ..................  5 
IX. CONSULTATIONS AND DISPUTE SETTLEMENT  ................................ ......................  5 
X. ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS  ................................ ... 6 
  
I. MEMBERS ' DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER STATUS  
(a) Delayed Application and Reservations  
1.1. This section reflects the situation with respect to special and differential treatment provisions 
available for de veloping country Members as of 1 9 October  2020. These provisions have been 
invoked as follows:  
(i) Article 20.1 (delayed applica tion of the provisions of the Agreement)  
1.2. No Member maintains this special and differential treatment provision.  
(ii) Article 20.2 (delayed application of the computed value method)  
1.3. No Member maintains this special and differential treatment provision.  
(iii) Annex III, paragraph 1 (extension of the five -year delay period)  
1.4. No Member maintains this special and differential treatment provision.  G/VAL/77  
 
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  (iv) Annex III, paragraph 2  (reservation concerning minimum values)  
1.5. No Member maintains this special and different ial treatment provision.  
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5 
and 6) (53)  
Argentina2 Guatemala  Niger 
Bahrain, Kingdom of  Guyana  Pakistan  
Bangladesh  Haiti Panama  
Benin  Honduras  Peru2 
Brazil2 India2 Philippines  
Brunei Darussalam  Indonesia  Senegal  
Burkina Faso  Israel  Sri Lanka  
Cameroon  Jamaica  Thailand  
Chile Kenya  Togo 
Colombia  Madagascar  Tunisia  
Costa Rica  Malawi2 Turkey2 
Côte d'Ivoire  Malaysia  Uganda  
Djibouti  Maldives  United Arab Emirates  
Dominican Republic  Mali Uruguay  
Ecuador  Mexico2 Venezuela, Bol. Rep. of   
Egypt  Morocco2 Zambia  
El Salvador  Myanmar  Zimbabwe2 
Gabon  Nicaragua   
 
(vi) Annex III , paragraph 4 (reservation to apply Article 5.2 whether or not the importer so 
requests) (51)  
Argentina2 Dominican Republic  Kenya  Peru2 
Bahrain, Kingdom of  Ecuador  Madagascar  Philippines  
Bangladesh  Egypt  Malaysia  Senegal  
Benin  El Salvador  Malawi2 Sri Lanka  
Brazil2 Gabon  Maldives  Thailand  
Brunei Darussalam  Guatemala  Mali Togo 
Burkina Faso  Guyana  Mexico2 Tunisia  
Cameroon  Haiti Morocco2 Turkey2 
Chile Honduras  Myanmar Uruguay  
Colombia  India2 Nicaragua  Venezuela, Bol. Rep. of   
Costa Rica  Indonesia  Niger Zambia  
Côte d'Ivoire  Israel  Nigeria  Zimbabwe2 
Djibouti  Jamaica  Pakistan   
 
(b) Observer Governments (2 5)  
Algeria  Iraq 
Andorra  Lebanese Republic  
Azerbaijan  Libya  
Bahamas  Sao Tomé and Principe  
Belarus  Serbia  
Bhutan  Somalia  
Bosnia and Herzegovina  South Sudan  
Comoros  Sudan  
Curaçao  Syrian Arab Republic  
Equatorial Guinea  Timor -Leste  
Ethiopia  Turkmenistan  
Holy See  Uzbekistan  
Iran  
 
2 Members that maintain in the WTO the special and differential treatment provisions that had been 
invoked under the Tokyo Round Agreement through Decision WT/L/38.  G/VAL/77  
 
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  (c) Observer International Organizations (6)3 
African, Caribbean and Pacific Group of States (ACP)  
Inter-American Development Bank (IADB)  
International Monetary Fund (IMF)  
United Nations Conference on Trade and Development (UNCTAD)  
World Bank  
World Customs Organization (WCO)  
 
II. OFFICERS OF THE WTO COMMITTE E ON CUSTOMS VALUATION  
2.1. Chairperson ( elected in June 2019)  Mr Winega BAMANA (Togo)  
 Chairperson (elected in July 2020) Mr Carlos GUEVARA (Ecuador)  
 
III. MEETINGS OF THE COMMITTEE  
3.1. On 4 June 2020, the Committee held an informal meeting to discuss continuation of the work 
of the Committee during the short to medium term period  in light of the COVID -19 pandemic.  
The Committee agreed to postpone the meeting scheduled for 9 July 2020 unt il the Autumn of 
2020 and to continue its work through written procedures until then. The Committee thus held one 
formal meeting on 19 October 2020 (G/VAL/M/70)4, chaired by  Mr Carlos GUEVARA ( Ecuador) .   
IV. NATIONAL LEGISLATION AND OTHER NOTIFICATIONS PRESE NTED  
(a) Texts of national legislation  
4.1. Article 22 of the Agreement requires each Member to inform the Committee of any changes in 
its laws and regulations relevant to the Agreement , and in the administration of such laws and 
regulations. At its first meeting, on 12 May 1995, the Committee agreed on procedures for the 
notification of national legislation (G/VAL/M/1, paragraphs 29 -35, 71 and 72).  Paragraph i) of the 
"Decision on Notifi cation and circulation of national legislation in accordance with Article  22 of the 
Agreement"5 requires Members to submit the complete texts of their national legislation (laws, 
regulations, etc.) on customs valuation in one of the three official WTO lan guages.  
4.2. The status of these notifications is contained in document G/VAL/W/232/Rev.12. During the 
period under review , Tonga (G/VAL/N/1/T ON/1) and Vanuatu (G/VAL/N/1/V UT/1) submitted their 
customs legislation. The European Union (G/VAL/N/1/EU/1)  and t he Solomon Islands 
(G/VAL/N/1/SLB/Add.1) notified amendments to their customs legislation.  
4.3. At the meeting  of 19 October , the Committee closed its examination of the legislations of three 
Members (the Kingdom of Bahrain, China and Myanmar) and agreed to revert at the next meeting 
to the examination of the legislations of the following 2 1 Members: Belize; Burundi; Dominican 
Republic; European  Union; The Gambia; Guinea; Honduras; India; Kazakhstan; Kyrgyz Republic; 
Malawi; Nepal; Niger; Nigeria; Russian F ederation; Rwanda; Solomon Islands; Sri Lanka; Togo; 
Tonga and Vanuatu .  
(b) Checklist of issues  
4.4. At its first meeting, on 12 May 1995, the Committee agreed on procedures for the submission 
of replies to a checklist of issues (G/VAL/M/1, paragraphs 36 -39). The checklist of issues is contained 
in G/VAL /5.  
4.5. The status of the checklist of issues notifications is contained in document 
G/VAL/ W/232/Rev.12. During the period under review, the Dominican Republic (G/VAL/N/2/DOM/1) 
notified its  Checklist of Issues.  
 
3 These organizations now have official observer status following Agreement in the Committee  
(G/VAL/M/5) and Agreements between the World Bank and the IMF with the WTO (WT/L/195).  
4 To be issued.  
5 Section B.2 of document G/VAL/5.  G/VAL/77  
 
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  (c) Information on the application  of the Committee Decisions  
4.6. At its first meeting on 12 May 1995, the Committee adopted Decisions which had been 
previously adopted by the Tokyo Round Committee. These Decisions are reproduced in docu ment 
G/VAL/5. The  Committee also adopted Decisions that were referred by the Ministers at Marrakesh to 
the Committee. The texts of the decisions are contained in document G/VAL /1. 
4.7. Notifications on the application of the Decision on the Treatment of In terest Charges in the 
Customs Value of Imported Goods and of paragraph 2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing Equipment (G/VAL/5) were summarized by the 
Secretariat in document  G/VAL/W/5/Rev.32 . During the period under review Myanmar submitted a 
notification (G/VAL/N/3/MMR/1).  
 
4.8. No decisions were taken by the Committee during the period under review.  
V. TECHNICAL ASSISTANCE  
5.1. At the meeting of 19 October, t he Committee took note that technica l assistance in the area 
of customs valuation was incorporated in to the WTO -wide technical assistance programme, and 
that the 2020-2021 biennial technical assistance plan (WT/COMTD/248/Rev.1) was currently being 
implemented.  
5.2. At the meeting of  19 October, t he Committee also took note of information compiled by the 
Technical Committee on Customs Valuation in G/VAL/8/Add. 40 concerning technical assistance 
activities carried o ut by the WCO Secretariat.  
 
VI. ISSUES RELATED TO IMPLEMENTATION OF THE AGR EEMENT  
6.1. At the meeting of 19 October, the Committee  took note of statements made under the 
agenda item "P akistan's Determination of Customs Values of Paper", raised by  Thailand.  
 
VII.  PRESHIPMENT INSPECTION  
7.1. At the meeting of 19 October, the Committee took note of information on  the status of t he 
notifications which had been received on preshipment inspection ( reflected in documents in the 
G/PSI/N/1/Rev.4 series ). During the period under review , new notificati ons were submitted by 
China (G/VAL/N/4/Add.1), Egypt (G/VAL/N/4/Add.4), Seychelles (G/VAL/N/4/Add.3) and Tonga 
(G/VAL/N/4/Add.2). The Committee also took note  of statements made under the agenda item of 
questions and responses regarding notifications submi tted by  Indonesia , Egypt, China and Saint 
Lucia. The fifth triennial review of the PSI Agreement was launched at the meeting of 19 October 
(background note contained in G/VAL/W/363) and the Committee agreed to a date of 30 March 
2021 for Members to provide  any statements in the context of this review. The Committee also 
took note of the latest report by the Testing, Inspection and Certification (TIC)  Council (formerly 
the International Federation of Inspection Agencies  (G/VAL/W/363, Annex I)) concerning cou ntries 
that use preshipment inspection services which was circulated  in document  G/VAL/W/63/Rev. 25. 
 
VIII.  REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION  
8.1. The representative of the WCO presented a report at the meeting of 19 October on the work 
of the Technical Committee on Customs Valuation  (TCCV),  including the 49th and 50th/51st session s 
of the Technical Committee, which had been  held from 4 to 8 November 2019 and 12 to 
14 October  2020, respectively. The TCCV commemorated its 50th session at its October 2020 
meeting.  
 
IX. CONSULTATION S AND DISPUTE SETTLEMENT  
9.1. During the period under review , there were no requests for consultations regarding the 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 
(Agreement on Customs Valuation)  or the Agreement on Preshipment Inspection . G/VAL/77  
 
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  X. ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS  
10.1. The Committee adopted its annual report to the Council for Trade in Goods in accordance with 
the requirements of Article  23 of the Agreement  and requested the Secretariat to update it to take 
account of the 19 October  meeting  (G/L/ 1372). 
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