G/VAL/Q/ARE/1  
 
23 October  2023 
(23-7132) 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 THE UNITED ARAB EMIRATES REGARDING 
DOCUMENTS G/VAL/N/1/ ARE/1 AND G/VAL/N/2/ ARE/1 
UNITED ARAB EMIRATES  
The following communication, dated 20 October 2023, is being circulated at the request of the 
delegation of the United States.  
 
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The United States would like to thank United Arab Emirates  for notif ication of its customs valuation 
legislation contained in document G/VAL/N/1/ ARE/1 and its responses to the Checklist of Issues 
contained in document G/VAL/N/2/ ARE/1. 
 
The United States requests written responses to the following questions:  
 
Questions  in respect of information contained in G/VAL/N/1/ARE/1  
 
Rules of Implementation of the Common Customs Law of the Member States of the Cooperation 
Council for the Arab States of the Gulf  
 
• Article 1(I)(6): Article 9.2 of the WTO Customs Valuation Agreement (CVA) states that the 
conversion rate to be used shall be that in effect at the time of importation or exportation. 
Article 1(I)(6) states that "The time of payment of the customs taxes 'duties ' shall be t he 
time approved for currency exchange rate ". Does the time of payment of customs duties 
always coincide with the time of importation in the GCC states?  
 
• Article 1(II): Fourth Method: Deductive Value states that the value should be based on the 
earliest sa le in the Kingdom minus expenses incurred after the arrival in the GCC states. 
Can you clarify the reference to "Kingdom " in the translation and why the term 'country ' or 
'GCC states ' is not being used here?  
 
Principles of Value Determination for Customs P urposes  
 
• General Provision 1.5: This provision states that no credit balances pertaining to previous 
consignments will be considered when determining the value of the goods being valued. Can 
you clarify how this is consistent with the Note to Article 1 in  Annex I to the CVA, which 
states "An example of an indirect payment would be the settlement by the buyer, whether 
in whole or in part, of a debt owed by the seller " and TCCV Advisory Opinion 8.1, which 
states a "credit is part of the price paid and for va luation purposes must be included in the 
transaction value. "? 
 G/VAL/Q/ARE/1  
 
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  Questions in respect of information contained in G/VAL/N/ 2/ARE/1  
 
Checklist of Issues  
 
• Question 1(b):  The regulation states that "Damaged goods shall be subject to the customs 
tariff based on their value at the date of registering the customs declaration. " How does 
customs determine the value of damaged goods at registration of the customs declaration?  
 
• Question 7:  The regulation provides the exchange rate publication for Saudi Arabia. Please 
indicate if this also applies to the other GCC States.  
 
• Question 9(b):  Article 61 states "The importer shall be informed in writing of the decision 
taken by the committee concerning his complaint. Such decision shall be reasonable. " Does 
the written notific ation outline the reasons for the valuation decision? Article 61 also states 
"Without prejudice to the importer's right to appeal to court, the importer may appeal before 
the valuation committee against the decisions of increased value within fifteen days following 
registration of the customs declaration or from the date of the valuation notice sent to him 
by registered mail.  "Please explain the rationale for providing a deadline of only 15 days for 
the importer to appeal.  
 
• Question 10(a)(iii):  The GCC Stat es responded that "Judicial decision and administrative 
rulings are not published ". Do the GCC States rulings of general application that implement 
the CVA?  
 
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