G/VAL/W/362   
2 September 2020  
(20-5958) Page: 1/9 
Committee on Customs Valuation  Original:  Spanish  
 
  
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON IMPLEMENTATION OF 
ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994  
DOMINICAN REPUBLIC  
Replies from the Dominican Republic to questions from the United States  
regarding documents G/VAL/N/1/DOM/2 and G/VAL/N/2/DOM/1  
The following communication, dated 13 August 2020, is being circulated at the request of the 
delegation of the Dominican Republic.  
 
_______________  
 
 
The United States would like to thank the Dominican Republic for its notification of its customs 
valuation legislation contained in document G/VAL/N/1/DOM/2 as well as its responses to the 
Checklist of Issues contained in document G/VAL/N/2/ DOM/1.  
The United States requests re plies to the following questions on the notified measure, Decree 
No. 36-11 of January 2011:  
Articles 2 and 3  
1.  Where are the "general rules issued by the Directorate -General of Customs" 
published?  
Reply : 
The general rules, including the Valuation Regulations (Decree No. 36 -11), are published on the 
Customs website https://www.aduanas.gob.do/nosotros/marco -legal. Since they constitute a 
Presid ential Decree, the  Valuation Regulations  are also published on the website of the Office of the 
President of the Republic, https://www.scribd.com/user/167066606/Presidencia -Republica -
Dominican . 
Regarding general rules , Article 3  states that the instruments of the Technical Committee on 
Customs  Valuation of the World Customs Organization  (WCO)  (advisory opinions, case studies, 
studies, explanatory notes, commentaries, etc.) will be incorporated into domestic law to the extent 
they are adopted under general rules issued by the Directorate -General  of Customs and will be 
published in the same form. It is important to note, however, that  these instruments are currently 
non-binding, since no general rule has incorporated them into domestic law.  
Article 4  
2. Paragraph 13 defines "reference value" as " an indicator established by the customs 
authorities to measure the risk in customs valuation controls ." How does customs 
choose this indicator? What sources does customs reference when establishing this 
indicator? What does it mean to "measure the risk in customs valuation controls"?  G/VAL/W/362  
 
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  Reply : 
The Dominican Republic uses a Reference Price Database as a risk indicator.  
An alert system has been developed for when the declared value of certain highly fraud -prone goods 
is far lower than the average price or statis tical price that has been determined. The database is 
used, along with other aspects of the importer's profile, to assess the potential risk related to the 
truth or accuracy of the customs value declared by the importer.  
The first step is to establish the mechanisms and sources that will  feed the database and 
subsequently  update it. As part of the Integrated Customs Management System (SIGA), a 
mechanism has been implemented to input products that are linked to a reference value , so as  to 
prevent duplication  and include  only one unique value.  
Where  the declared value  is not within the tolerance range applied to certain goods, and other risk 
factors exist (goods, origins and importers , past fraud , imports from the informal sector), concurrent 
or post -clearance controls may be conducted . In such circumstances , the reasonable doubt 
procedure is initiated  and the importer may obtain clearance under bond.  
A reference value  is selected  using the followi ng rules:  
(a) values determined in a subsequent audit;  
(b) average value of investigated values of the same type of good; and  
(c)  average value declared over a range of dates.  
The reference values database is filled with values that have been determined i n audits and values 
provided by importers' associations, chambers of commerce, specialized journals, values declared 
by low -risk companies, etc.  
Other data sources include price studies, general -trend studies, commercial price -setting practices 
and fluctu ations in certain goods.  
Regarding the second question, on how to "measure the risk in customs valuation controls", the risk 
is measured by determining the inherent critical level or risk level of one or several operations.  
In the subsequent control, the r isk is measured using a model with three risk levels: high, medium 
and low. These levels are obtained by multiplying the probability of each factor by a weighting based 
on importance  or impact. Control measures are then established based on the outcome or critical 
level: the cargo selectivity system and the reasonable doubt procedure are used in the primary zone, 
then the inspection plan is applied.  
3.  The definition of "generally accepted accounting principles" in Paragraph 14 does 
not appear to implement  the definition under the General Note of the Interpretative 
Notes of the Customs Valuation Agreement (CVA). Please explain this apparent 
discrepancy. What is the source of the definition provided in Paragraph 14?  
Reply : 
We do not believe there is any discrepancy between our definition of generally accepted accounting 
principles (GAAP) as "the set of basic concepts and rules that must be observed in financial records 
and reporting regarding the business affairs and activities of nat ural or legal persons" and the 
definition found in the General Note of the Interpretative Notes of the Customs Valuation Agreement 
(CVA), since it is only the form of drafting, or conceptualization, that does not limit the scope of the 
GAAP, given that the  Dominican Republic has adopted as its GAAP the international accounting 
standards (IAS) issued by the International Accounting Standards Committee (IASC).  
In this context, it is clear to us that the GAAP are based on rules and standards that serve as an 
accounting guide to formulate criteria for measuring assets and information on an entity's economic 
elements, which is why the rules "must be observed", that  is, complied with.  G/VAL/W/362  
 
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  It should be noted that each country, through the legal instrument it deems appropriate, informs 
entities through public channels that it is compulsory to adopt GAAP and supplementary IAS issued 
by the relevant agencies, as the Dominica n Republic has done through the "Resolution adopting 
International Accounting Standards and International Standards on Auditing", which was issued by 
the Institute of Certified Public Accountants on 14 September 1999. Article 1 of the Resolution reads 
as follows :  
"Article 1: Adopt the International Accounting Standards (IAS) that have  been and will be 
issued by the International Accounting Standards Committee (IASC) as the generally accepted 
accounting principles in the Dominican Republic. " 
The adopted con ceptual framework can be found in the following texts:  
- https://url2.cl/wgain  
- https://url2.cl/MPfZC . 
4.  Paragraph 21 defines "related sales" as "a sale involving a condition or  
consideration relating to another commercial transaction not subject to customs 
valuation at the time of the import declaration. " Please further explain this 
definition. How does it interact with the term "related" as defined in the CVA with 
respect to re lated persons?  The term "related sales" does not appear to be used in 
the notified measure. Please confirm if this understanding is accurate and clarify the 
purpose of including this defined term.  
Reply : 
The definition does not interact with the term "related" with respect to related persons . It was 
included in reference to the Note to Article 1, which, referring to paragraph 1(b), states:  
If the sale or price is subject to some condition or consideration for which a value cannot be 
determined with res pect to the goods being valued, the transaction value shall not be 
acceptable for customs purposes.  Some examples of this include:  
(a)     the seller establishes the price of the imported goods on condition that the buyer will 
also buy other goods in speci fied quantities;  
(b)     the price of the imported goods is dependent upon the price or prices at which the buyer 
of the imported goods sells other goods to the seller of the imported goods.  
Article 5  
5.  Is the customs value declaration form required by Article 5 available on the 
Internet? If  so, please provide the internet address (web link) for the form.  
Reply : 
This article stipulates: "The customs value declaration form established by the Directorate -General 
of Customs must be used for imports with an FOB value over two thousand US dollars 
(USD  2,000.00) so that the customs value of the imported goods may be determined."  
Initially, there was a paper customs form drawn up by the Directorate -General of Customs, which 
the user had to purchase. However, Dir ectorate -General of Customs Regulation No. 001 -2015, of 
20 March 2015, abolishes the Value Declaration (DVA) form, incorporating the information into the 
Single Customs Declaration (DUA). Appropriate adjustments were therefore made to the Customs 
Managemen t System (SIGA).  
https://www.aduanas.gob.do/media/2546/norma_001 -2015_eliminacion_dva.pdf  (Regulation 
No. 001-2015 abolishing the DVA form ) 
https://aduanasdigital.gob.do/2015/05/06/aviso -eliminacion -del-dva-2/ (Notice on the abolition of 
the DVA form , published on the digital customs portal)  G/VAL/W/362  
 
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  Article 7  
6.  Article 7(d) provides that customs may reject transaction value "where part of the 
proceeds of a subsequent resale by the buyer accrues to the seller ." Would 
transaction value be rejected if an adjustment could be made as provided for in 
Article 8 of the C VA based on objective and quantifiable data?  
Reply : 
The transaction value would not be rejected. This Regulation does not replace the provisions of the 
Agreement, so it applies as provided for in Article 1 .1(c). 
If an adjustment is possible under Article 8  and there are objective and quantifiable reasons for 
making one, the transaction value would not be rejected.  
Article 9  
7.  Article 9(b) indicates that , "the price expressed in the commercial invoice may be 
taken as the valuation basis, provided that… [i] t is supported by original documents, 
with no smudges, corrections or signs of alteration."  
(a) Why are original supporting documents necessary in order for the invoice price 
to be accepted as the valuation basis?  
(b) Can an importer submit support for a c ommercial invoice electronically?  
(c) Why does the presence of smudges or corrections preclude the use of a 
commercial invoice?  
Reply : 
The original term refers to invoices submitted digitally or physically that are issued by the supplier 
accrediting the tr ansaction.  
Domestic legislation  establishes the formalities required for documents submitted to customs, but 
the documents are submitted electronically together with the Single Customs Declaration (DUA), 
and the importer must keep copies of them in order t o prove their authenticity.  
Any smudges, corrections or signs of alteration reduce the guarantee of a document and cast doubt 
on its authenticity and integrity. In such cases, the reasonable doubt procedure is applied before a 
transaction  value is refused . 
Article 10  
8.  In accordance with Article 1.2(b) of the CVA, does the Dominican Republic also take 
into account under Article 10, paragraph II, the differences in commercial levels, 
quantity levels, elements enumerated in Article 8 of the WTO CVA, and cos ts incurred 
by the seller in sales in which the seller and the buyer are not related that are not 
incurred by the seller in sales in which the seller and the buyer are related?  
Reply : 
Yes. For the purposes of accepting the transaction value between related persons and valuing the 
goods in accordance with Article 1 .1 of the Agreement, the Dominican Republic takes into 
consideration the elements indicated in Article 1.2 (b)(ii) . Furthermore, certain factors listed in 
Article  10, paragraph II, of the Val uation Regulations  (Decree No. 36 -11) are also considered, such 
as the nature of the imported goods, the industry and the time -period of importation.  
It is important to draw attention to the content of Article 2 of Decree No. 36 -11. While c ertain details 
in the Agreement may therefore not be specifically present in the Regulations , the valuation 
procedure in the Dominican Republic is, nevertheless,  governed primarily by the Agreement.  G/VAL/W/362  
 
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  ARTICLE 2. Customs valuation in the Dominican Republic will be governed b y: (i) the 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade, 
referred to hereinafter as "the GATT 1994 Valuation Agreement" or "the WTO Valuation 
Agreement"; (ii) these Regulations; (iii) decisions of the Committee o n Customs Valuation of 
the World Trade Organization (WTO); and (iv) general rules issued by the Directorate -General 
of Customs.  
9.  Further, in accordance with the Interpretative Note to Article 1, paragraph 2(b), 
does the Dominican  Republic take into account the season in which the goods are 
imported , and, whether the difference in values is commercially significant?  
Reply : 
The time -period of importation is already addressed in Article 10 , paragraph II, of Decree No. 36 -11. 
In reply to the second part of the question, w hether the difference in values is commercially 
significant is determined on a case -by-case basis by the tax -risk unit , which determines the 
acceptable percentage variation for each type of good.  
Article 12  
10.  The paragraph under Article 12 provides that customs will calculate the value of the 
elements of CVA Article 8 "in accordance with the fees usually applied for those 
services ." Does this provision apply with respect to both CVA Article 8.1 and 8.2? If 
not, to which paragraph of CVA Article 8 does it apply? How are the fees calculated? 
How does customs determine the fees usually applied for varied services across 
varied industries?  
Reply : 
The paragraph refers to the contents of Article 8.2. In this regard, our domestic legislation, Law 
No. 146-00 of 27 December 2000  on tariff reform,  states the following:  
"ARTICLE 7 - Payment of the tariff charges referred to in Ar ticle 6 of this law shall be made 
on the taxable base of the CIF (cost, insurance and freight) value, expressed in the national 
currency, in accordance with the official exchange rate in force on the date the goods were 
entered for consumption.  PARAGRAPH I  - If the insurance value or freight value is not entered 
in the customs declaration, the administration shall estimate it by referring to prevailing 
market prices at the time of import for similar goods carried by similar modes of transport 
and on an iden tical route."  
Article 13  
11.  What is the basis in the CVA for the formulas found in Article 13?  
Reply : 
Article 13 contains two formulas: one for when a finished product is imported and the royalty is paid 
for the distribution and marketing rights, and one  for when raw materials are imported and the 
royalty is paid for the manufacturing rights.  
The CVA does not specify how the royalties and licence fees are to be added to the price actually 
paid or payable. Based on practical experience with such adjustment s, the Dominican Republic 
adopted the formula found in Article 13 in order to be able to distribute  the amounts transferred in 
this respect among all the imported goods for which an adjustment is due.  
The Technical Committee on Customs Valuation is current ly discussing this topic (doc uments 
VT1147S1a, VT1157S1a, VT1171S1a and VT1183S1a). In those discussions, some delegates 
believed the total royalty payment should be included in the price paid or payable, while others held 
the opposing view that the royalt y payments should be apportioned, since local ingredients had been 
added during the manufacturing  process .  G/VAL/W/362  
 
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  Article 20  
12.  Please explain how Article 20(d) is applied, in light of CVA Article 1.2(a), which 
provides, "in determining whether the transaction  value is acceptable…the fact that 
the buyer and the seller are related…shall not in itself be grounds for regarding the 
transaction value as unacceptable." The Interpretative Note to Article 1, 
Paragraph  2 further provides that, "[i]t is not intended that  there should be an 
examination of the circumstances in all cases where the buyer and the seller are 
related. Such examination will only be required where there are doubts about the 
acceptability of the price." Further, we would like to remind the Dominica n Republic 
of Advisory Opinion 2.1 in which the Technical Committee on Customs Valuation 
determined that the mere fact that a price is lower than prevailing market prices for 
identical goods should not cause it to be rejected for purposes of Article 17 of the 
CVA.  
Reply : 
Article 20 begins as follows: "The customs administration may deem that reasonable grounds exist 
to doubt  …". Where this occurs with related companies, the circumstances of the transaction are 
examined in line with Article 1 .2. 
The Dominican Republic does not consider the transaction value unacceptable merely because 
companies are related. Article 10 of these Reg ulations sets out the procedure, in accordance with 
the stipulations of the CVA.  
The Dominican Republic agrees with Advisory Opinion 2.1 that "the mere fact that a price is lower 
than prevailing market prices for identical goods should not cause it to be r ejected". However, the 
reference to related companies in Article 10 of these Regulations is in contrast with unrelated buyers, 
as defined in Article 1.2(b)(i) . 
Article 21  
13.  The procedure for applying the reasonable doubt mechanism in Article 21 provides  
importers with as little as five business days to respond to a request from customs 
for documentation and evidence to support its declared value. Does the Dominican 
Republic consider five days a sufficient time for importers to gather the information 
customs needs and to present it in a format most useful for customs? May customs 
provide a longer time -period?  
Reply : 
The Valuation Agreement does not stipulate a time -frame. The Dominican Republic considers that 
five days is sufficient time. However, the importer may make a reasoned request for an extension 
and may also release its goods under Article 13 of the Valuation Agreement.  
Article 27  
14.  When customs value cannot be determined through the flexible application, in 
accordance with CVA Article 7, of  the valuation methodologies delineated in the CVA, 
Article 27 provides that, "a value can, as a last resort, be determined by applying 
other reasonable methods involving the use of specialized publications on goods 
prices on the international market ." 
(a) What are "specialized publications on goods prices"? Where can they be found? Are 
they published? What are the sources for those publications?  
Reply : 
They are publications such as Metal Bulletin  and Steel Business  that regularly address specific topics 
in greater detail than other publications and are referred to in mining and metallurgy sales contracts. G/VAL/W/362  
 
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  Other specialized publications are Kelly Blue Book  (used vehicles) and Black Book  (new vehicles). 
These  journals  are subscription -based publications.  
(b) Why and in what manner would "specialized publications" be used to determine 
customs value? Can the Dominican Republic explain how this "last resort" is 
consistent with CVA Article 7.2?  
Reply : 
Where efforts have been made to apply the above methods flexibly and data are not available, we 
believe that using information from publications specializing in price information, with appropriate 
adjustments, is a reasonable criterion. This is supported b y paragraphs 7 and 8 of the Technical 
Committee on Customs Valuation's Supplement to Study 1.1.  
Question 3 (paragraph 7) of the Supplement to Study 1.1 asks: "Could values listed in a foreign 
catalogue, published by an independent authority indicating pri ces of new and used cars, with and 
without tax, on the domestic market of the exporting country, be used as a basis (initial price) for 
establishing the customs value of a used motor vehicle by applying the procedure in paragraph 19 
of the Technical Commit tee's Study 1.1?"  
The response (paragraph 8) states: "Article 7.2(c) prohibits the use of the price of goods on the 
domestic market of the country of export as a basis for valuation. Study 1.1 of the Technical 
Committee outlines a procedure which involves using catalogue prices pertaining to the country of 
importation, from which adjustments would be made for duties, tax and certain other charges (i.e.  a 
flexible application of  the deductive method). In the absence of other data, any reasonable means 
consis tent with the principles of the Agreement may be used in determining the customs value."  
Article 29  
15.  Under Article 29, confidential information may be disclosed to "ensure transparency 
in the tax system, in connection with audits of value carried out b y this Institution, 
which are firm and irrevocable." Please explain how confidential customs valuation 
information is used to ensure transparency in the tax system.  
Reply : 
Article 33 of Law No. 11 -92 (Tax Code of the Dominican Republic) requires the Tax Ad ministration, 
to which the Directorate -General of Customs belongs, to comply with its confidentiality and 
disclosure duties.  
Clarifying the Tax Administration's disclosure duties, Articles 48 and 49 indicate the following:  
Article 48. Duty of disclosure . The actions taken by the Tax Administration are, in principle, 
public. Interested parties or their representatives and lawyers shall have access to the records 
of the Tax Administration's proceedings and may, by their very status and by proving their 
identi ty, consult them, with the exception of items or documents that are kept confidential , 
either because the Tax Administration so determines by reasoned decision, because the 
provisions of this code or its special regulations so determine, or because the ver y nature of 
the documents requires that they remain confidential .  
Article 49. Resolutions that the Tax Administration deems to be of general interest may be 
made public through publication in a national newspaper or other appropriate channel.  
With regard to the Tax Administration's confidentiality duty, Article 47 states the following:  
Article 47. Duty of confidentiality. (As amended by Law No. 147 -00 of 27 December 2000.) 
Statements and information collected by the Tax A dministration  from taxpayers, perso ns in a 
position of responsibility and third parties by any means shall, in principle, be confidential . 
The Tax Administration may use such statements and information for its own lawful purposes. 
Paragraph I. This duty of confidentiality shall not apply wh ere it hinders efforts to make the 
tax system transparent, where legislation makes it non -applicable, and where judicial bodies G/VAL/W/362  
 
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  rule that the duty shall not apply in proceedings related to tax or enforced tax collection, 
criminal procedures, alimony hearin gs, family court hearings and divorce hearings.  
In addition, Article 4, subparagraph (l) , of Law No. 226 -06, giving the Directorate -General of 
Customs its own legal status, its own operational, financial, administrative and technical autonomy 
and its own a ssets, makes the Directorate -General of Customs responsible for ensuring compliance 
with all applicable provisions of Law No. 200 -04 on Free Access to Public Information.  
In this regard, the Directorate -General of Customs of the Dominican Republic, as a state entity, is 
required to provide any public information, any financial information and any other information that 
form the basis for administrative decisions, as laid down in General Law No. 200 -04 and its 
implementing regulations.  
Where  confidential information is provided for valuation purposes, Customs must comply with 
Article  10 of the Agreement and national legislation. In this regard, in the area of taxation there is 
a special duty of confidentiality regarding information collected from taxpayers, persons in a position 
of responsibility and third parties. However, for a judge to order that confidential information be 
submitted to the court, either for the purposes envisaged in tax l egislation  or to enable criminal 
proceedings to go a head, the judge must send a duly written court order to the customs authority.  
For administrative procedures in which information is required on the value that was determined in 
an inspection on a company, the public authority carrying out the procedure mu st request the 
information in writing and justify why they require it.  
General Law No. 200 -04 on Free Access to Public Information promotes transparency, but provisions 
and limitations on access must be observed according to preponderant public and private interests. 
In this regard, information is not available where it may affect the following:  
(a) national or personal security (criminal inquiries);  
(b) public order;  
(c) public health or morals;  
(d) people's right to privacy;  
(e) the rights and repu tation of others.  
Confidential information regarding the value is communicated, for instance:  
(a) when information is exchanged for tax purposes as part of inter -agency cooperation between 
the Directorate -General of Taxes and the Directorate -General of Cus toms;  
(b) as part of anti -money laundering and anti -terrorism measures under Law No. 155 -17; and  
(c) when final and irrevocable audited values are published under Regulation No. 01 -2010 of 
22 February 2010.  
- https://www.aduanas.gob.do/media . 
Article 30  
16.  Article 30 allows an importer to withdraw goods when there is a delay in 
determining the customs value by providing a guarantee covering "the difference in 
the customs duties and taxes to which the good s may be subject ." It is unclear to 
what value the customs duties and taxes are compared in order to determine the 
"difference ." Please provide an explanation of the comparison required under 
Article  30 to calculate the "difference" that must be covered by the guarantee.  
Regulation No. 02/2001 of 29 June 2001 implementing the range of acceptable transaction values 
and rules on the management of customs bonds was published in the "El País" section of the 
newspaper Hoy on 30 June 2001.  G/VAL/W/362  
 
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  The regulati on stipulates various tolerance ranges, depending on the tariff rate:  
Tariff rate  Tolerance range  
20% or more  3% 
8-14% 6% 
0-3% 10% 
 
The tolerance range refers to the maximum percentage difference between the value declared by 
the importer and the reference value. This is used to determine the acceptability of the declared 
value and whether a guarantee must be paid.  
Once a guarantee has  been paid, it is released and returned only after an inspection has verified the 
declared value. A guarantee is implemented in all cases where the importer is found to have 
submitted an incomplete or fraudulent declaration.  
Article 31  
17.  Article 31 establishes the right to appeal customs valuation determinations made by 
the customs administration, but paragraph III provides, "nothing in this article shall 
prevent full payment being required for fines imposed prior to an appeal ." Please 
explain this p aragraph, including the meaning of "fines imposed prior to an appeal" . 
(a) ARTICLE 31. Complaints and appeals. With respect to the determination of customs 
value, the procedures for complaints and appeals against decisions of the customs 
authorities will b e the same as those under domestic law.  
(b) PARAGRAPH I: As set forth in Article 11 of the WTO Valuation Agreement, importers or 
any other persons liable for the payment of duties and taxes have the right to appeal, 
without penalty, determinations of value  made by the customs administration for the 
goods being valued.  
(c) PARAGRAPH II: "Without penalty" means that the importer shall not be subject to a fine 
or threat of fine merely because the importer chose to exercise the right of appeal. 
Payment of normal court costs and lawyers' fees is not considered to be a fine.  
(d) PARAGRAPH III: However, nothing in this article shall prevent full payment being 
required for fines imposed prior to an appeal.  
The basis of paragraph III is the interpretation of Adv isory Opinion 17.1 of the Technical Committee 
on Customs Valuation, which reiterates the stipulation in paragraph II that "the importer shall not 
be subject to a fine or threat of fine merely because the importer chose to exercise the right of 
appeal". The  Committee also interprets that the importer's right of appeal under Article 11 affects 
the decisions made by Customs Administrations with respect to the determination of the customs 
value under the Agreement and does not cover cases of fraud, in which cas e, exercise of the right 
of appeal should comply with the provisions of national legislation, which may require payment of a 
fine and payment of duties prior to the filing of the appeal.  
__________