G/VAL/Q/MNG/2  
 
12 May 2022  
(22-3716) 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  
QUESTIONS FROM THE UNITED STATES TO MONGOLIA  
REGARDING DOCUMENT G/VAL/N/1/MNG/1  
MONGOLIA  
The following communication, dated 10 May 2022, is being circulated at the request of the delegation 
of the United States.  
 
_______________  
 
 
The United States would like to thank Mongolia for notification of its customs valuation legislation 
contained in document G/VAL /N/1/MNG/1.  
 
Questions  
 
The United States requests written responses to the following questions with respect to the Law of 
Mongolia on Customs Tariffs and Customs Duties : 
 
1. Article 8.3: According to Article 7.1, a declarant must determine Customs value based on 
required documents and declare it to Customs, but in certain cases where Customs deems the 
documents invalid, Customs may choose to determine Customs value by an alternative method, 
according to Article 8.3. Under Article 8.3, how does Mongolia de termine the applicable valuation 
method?  
 
2. Article 8.5: Article 8.5 assures that declarant may get an explanation of a Customs determined 
value upon request. Please confirm whether this Article would include an explanation of the method 
used under Article 1 5, the fall -back or residual method?  
 
3. Article 10.3.1.1: Article 10.3.1.1 lists charges for transportation, and appears to be associated 
with CVA Article 8.2, but it refers to charges for the use or lease of means of transport or 'containers'. 
Could Mongoli a clarify the nature of this charge for containers?  
 
4. Article 10.3.2: According to CVA Article 8.1(a)(i), buying commissions are to be excepted from 
the types of commissions that can be added to transaction value. However, it is not clear that this 
is speci fied in Article 10.3.2. Could Mongolia clarify whether or not buying commissions are excluded 
from Article 10.3.2 and if not, why?  
 
5. Article 10.7.6: Article 10.7.6 deals with related parties and allows the use of transaction value 
if test values in Article 10.9 are closely approximated. Yet, under CVA Article 1.1(d), if the 
circumstances of the sale test in CVA Article 1.2(a) is satisfied, transaction value may also be used. 
How does Mongolia's law account for CVA Article 1.2(a)?  
 
6. Article 11.10: Article 11. 10 prohibits sales of certain types of goods for use as comparisons 
for the identical goods method of CVA Article 2. Please explain why goods listed in Article 11.10.6 
through 11.10.11 cannot be used for identical goods comparison?  
 G/VAL/Q/MNG/2  
 
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  7. Article 12.10: The same  goods listed in Article 11.10 cannot be used as comparisons for the 
similar goods method of CVA Article 3. Please explain why goods listed in Article 11.10.6 through 
11.10.11 cannot be used for similar goods comparison?  
 
8. Article 13.4: Article 13.4 defines  'goods of the same class or kind' as used in Article 13.3.1 for 
the deductive value method (CVA Article 5). However, in CVA Article 15.3, 'goods of the same class 
of kind' is defined to include identical or similar goods. Please explain why identical or s imilar goods 
are not included in Article 13.4?  
 
9. Article 15.2.1.1: Article 15.2.1.1 allows for the us e of 'reliable similar data available to 
Customs and other importers and compare with other costs' when there is no documentary evidence 
to justify transact ion value or its components. Please specify which resources are used by Customs 
to collect the data referred to in this article?  
 
10. Article 15.2.2: Article 15.2.2 specifies prices that may be used under the fall -back method 
(CVA Article 7) based on 'internat ional trade practices and other commercial data valid at that time.' 
Does Customs use the prices under 15.2.2 before it considers the flexibilities set out in Article 
15.2.1? If so, how is this consistent with WCO TCCV Advisory Opinion 12.1 which provides that the 
methods used under Article 7 should begin with applying Articles 1 to 6 with reasonable flexibility, 
and only use other reasonable methods as a "final resort".  
 
11. Article 41.4: Article 41.4 provides for regulations on the issuance of a guarantee to pay the 
Customs duties and other taxes. When will Mongolia notify these regulations to the WTO?  
 
The United States requests written responses to the following questions with respect to the Customs 
Law of Mongolia : 
 
12. Article 5.3: Article 5.3 cites to the Law  on Confidential Information as governing the use and 
storage of confidential information. When will Mongolia notify these regulations to the WTO?  
 
The United States requests written responses to the following question that applies generally to 
Mongolia's  legislation and regulations:  
 
13. We note that some provisions of the CVA are not reflected in Mongolia's notified measures, 
including:  
 
a. Article 1.2(a) concerning the circumstances of sale test.  
b. Article 1.2(b)(ii) -(iii) and Article 1.2(c) concerning requirements for test values.  
c. Article 8(1)(b)(i) -(iv) concerning goods and services.  
d. Article 8.4 concerning limits on the types of additions that can be made to transaction value.  
e. Article 9.2 concerning conversion of currency.  
f. Article 14 states that the In terpretative Notes at Annex I and the notes in Annexes II and 
III form an integral part of the CVA, and that the articles of the CVA are to be read and 
applied in conjunction with their respective notes.  
 
• What are Mongolia's plans for incorporating these p rovisions into its national legislation?  
 
14. It does not appear that all of the Interpretative Notes in Annex I of the CVA have been included 
in Mongolia's legislation, as provided in CVA Article 14. How and when does Mongolia intend to 
implement the Interpre tative Notes in their entirety?  
 
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