G/VAL/Q/GBR/1  
 
14 October  2021 
(21-7761) 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 KINGDOM   
REGARDING DOCUMENT S G/VAL/ N/1/GBR/1 AND G/VAL/ N/2/GBR/21 
UNITED KINGDOM  
The following communication, dated 12 October 2021, is being circulated at the request of the 
delegation of the United States . 
 
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The United States would like to thank the United Kingdom for its notification of its customs valuation 
legislation contained in document G/VAL/N/1/GBR/1 as well as its responses to the Checklist of 
Issues contained in document G/VAL/N/2/GBR/1.   
The United States requests written responses to the following questions:  
 
G/VAL/N/1/GBR/1  
 
Question 1:  Could the UK please explain the difference between the total amount of consideration 
"payable for the goods " and the total amount of consideration "payable in connection 
with the importation of the goods into the United Kingdom ," as used in Section 16(3) of 
the Taxation (Cross -Border Trade) Act?  
 
Question 2:  Regulation 107 defines the "full value " of a good as "the total amount which would be 
payable in an arm 's length transaction for, or in connection with the importation of, 
goods. " The reference to "arm's length transaction " suggests a connection with 
related -party sales; however, the term "full value " is also used in regulations (such as 
108 and 114) that do not deal with related -party transactions.  Could the UK please 
provid e further explanation of the concept of "full value " and how it relates to the 
determination of customs value?  
 
Question 3:  Regulation 113 states that a royalty "paid by the buyer to the seller " must, in certain 
circumstances, be included in the transaction value of imported goods.  As a condition 
for adding such royalties to the price actually paid or payable, does the UK require that 
the royalty payment be related to the goods being valued and m ade as a condition of 
the sale, as contemplated by Article 8.1(c) of the Customs Valuation Agreement 
("Agreement ")?  
 
Question 4:  Also, regarding regulation 113, could the UK please specify under what conditions, if 
any, royalties that the buyer pays to a third party would be added as an addition to the 
price actually paid or payable for the goods?   
 
 
1 A previous document containing questions pertaining to the customs legislation of the United Kingdom 
was issued in G/VAL/W/378 . G/VAL/Q/GBR/1  
 
- 2 - 
 
  Question 5:  Regarding regulation 117 on "finance interest, " could the UK please explain the purpose 
of subparagraph 3(b) ( "in cases where the buyer sells the g oods within a period of 30 
days beginning with the day after the date of their release to free -circulation, they are 
sold at no less than the value declared in the Customs declaration. "), which is not a 
requirement under WTO Decision 3.1?  
 
Question 6:  Could the UK please clarify whether, under regulation 123, the goods must have been 
produced in the same country in order to be considered identical or similar goods?  
 
Question 7:  Regarding regulation 123(6), could the UK please explain what criteria are used to 
determine whether a quantity is "sufficient " in order to "give a representative quantity 
in order to determine a unit price "? 
 
G/VAL/N/2/GBR/1  
 
Question 1:  Regarding the response to Question 1(a)(iii), would the UK please clarify whether the 
importer is  entitled to receive an explanation of why HMRC believes that the relationship 
has influenced the price before it takes action, or if such explanation is provided only 
after HMRC has concluded that the intercompany price is not acceptable.  
 
Question 2:  Regarding the response to Question 1(a)(iv), would the UK please identify the specific 
provision of law that implements the methods provided for in Article 1.2(b)?  The cited 
provision (Part 12, Chapter 2, 108) does not appear to reference the methods in Artic le 
1.2(b)(i), (ii), or (iii).  
 
Question 3:  Regarding the response to Question 1(b), please clarify where the cited provision 
addresses valuation procedures for lost or damaged goods.  
 
Question 4:  Regarding the response to Question 2, which concerns the imp orter's option to reverse 
the order of application of Articles 5 and 6, the UK notes that it "allows the application 
of Articles 5 and 6 to be reversed where the use of Article 6 above Article 5 is reasoned 
to be the appropriate course of action, and where  evidence to this effect can be 
produced upon request. " The cited provision, however, states that Methods 4 and 5 can 
be applied "in reverse order as the person who makes the Customs declaration elects. " 
Would the UK please clarify what criteria, if any, t he importer must meet in order to 
reverse the application of Methods 4 and 5?  
 
Question 5:  Regarding the response to Question 5, please clarify whether the importer must demand 
a review or appeal in order to receive a written explanation of how the value w as 
determined under Article 7 of the Agreement.  
 
Question 6:  Regarding the response to Question 5(c), please identify the UK legislation or regulation 
that specifically lists the prohibited valuation methods provided for in Article 7.2(a) 
through (g) of the Agreement.   
 
Question 7:  Regarding the response to Question 7, the cited provision on currency conversion, at 
subparagraph 18(3), states that "[t]he conversion must be made in accordance with 
provision contained in a public notice given by HMRC Commiss ioners. " We note that the 
conversion rates are provided online ( Exchange rates from HMRC in CSV and XML format 
- GOV.UK (www.gov.uk) ), but would the UK please specify whether this is the public 
notice required?   
 
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