G/VAL/N/1/KNA/1  
 
25 February  2021 
(21-1647) Page: 1/9 
Committee on Customs Valuation  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON  
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL  
AGREEMENT ON TARIFFS AND TRADE 1994  
SAINT KITTS AND NEVIS  
 
 
The following communication , dated 12 Febru ary 2021 , is being circulated at the request of the 
delegation of Saint Kitts and Nevis . 
 
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In accordance with Article 22 of the Customs Valuation Agreement, attached is a copy of the relevant 
sections and schedules of The Customs Act 2014 of St. K itts and Nevis. The sections and schedules 
therein will bring the valuation of goods in line with the provisions of the Valuation Agreement.  
https://skncustoms.com/Customs%20Act%202014/Schedules.pdf  
 
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  G/VAL/N/1/KNA/1  
 
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  SECOND SCHEDULE (Sections 80(1), 80(2) and 247)  
VALUATION OF IMPORTED GOODS  
 
1. (1) In this Schedule,  
 
(a)  “customs value of imported goods” means the value of goods for the purposes of levying 
ad valorem duties of customs on imported goods;  
 
(b)  “goods of the same class or kind” means goods which fall within a group or range of 
goods produced by a particular industry or industry sector, and includes identical or 
similar goods;  
 
(c)  “identical goods” means goods produced in the same country which are the same in all 
respects, including physical characteristics, quality and reputa tion. Minor differences in 
appearance shall not preclude goods otherwise conforming to the definition from being 
regarded as identical;  
 
(d)  “identical goods and similar goods”, as the case may be, do not include goods which 
incorporate or reflect engine ering, development, artwork, design work, and plans and 
sketches for which no adjustment has been made under paragraph 8 (1) (b) (iv) 
because such elements were under taken in Saint Christopher and Nevis;  
 
(e) “produced” includes grown, manufactured and m ined;  
 
(f)  “similar goods” means goods produced in the same country which, although not alike 
in all respects, have like characteristics and like component materials which enable them 
to perform the same functions and to be commercially interchangeable. The quality of 
the goods, their reputation and the existence of a trademark are among the factors to 
be considered in determining whether goods are similar.  
 
(2) For the purpose of this Schedule,  
 
(a)  persons shall be deemed to be related only if:  
(i)  they are officers or directors of one another’s business,  
(ii)  they are legally recognized partners in business,  
(iii)  they are employer and employee,  
(iv)  any person directly or indirectly owns, c ontrols or holds 5 per cent or more of the 
outstanding voting stock or shares of both of them,  
(v)  one of them directly or indirectly controls the other,  
(vi)  both of them are directly or indirectly controlled by a third person,  
(vii) together they di rectly or indirectly control a third person, or  
(viii)  they are members of the same family;  
 
(b)  one person shall be deemed to control another when the former is legally or 
operationally in a position to exercise restraint or direction over the latter;   
 
(c)  persons who are associated in business with one another in that one is the sole agent, 
sole distributor or sole concessionaire, however described, of the other shall be deemed 
to be related only if they fall within the criteria of subparagraph 2 (a);  
 
(d)  the term person means a natural or legal person;  
 
(e)  an event shall be deemed to occur about the same time as another event if the first 
event occurs on the same day as the other event or within the forty -five days 
immediately before or the forty -five days immediately after, the day on which the other 
event occurs.  
 
2. (1) The customs value of imported goods shall be determined under paragraph 3 whenever the 
conditions prescribed therein are fulfilled.  
 
(2) Where such value cannot be determined under paragraph 3, it shall be determined by proceeding 
sequentially through paragraphs 4 to 7, inclusive, to the first such paragraph under which it can be G/VAL/N/1/KNA/1  
 
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  determined, subject to the provision that, where the impo rter requests it and the Comptroller agrees, 
the order of application of paragraphs 6 and 7 shall be reversed.  
 
(3) Except as provided for in sub -paragraph (2), it is only when the customs value of imported goods 
cannot be determined under a particular pa ragraph that the provisions of the next paragraph in the 
sequence established by sub -paragraph (2) can be applied.  
 
(4) Where the customs value of imported goods cannot be determined under paragraphs 3 to 7, 
inclusive, it shall  
 
(a)  be determined using r easonable means consistent with the principles and general 
provisions of this Schedule;  
 
(b)  to the greatest extent possible, be based on previously determined customs values; and  
 
(c)  make use of the methods of valuation laid down in paragraphs 3 to 7 , inclusive, using, 
where necessary, reasonable flexibility in their application.  
 
(5) No customs value shall be determined under sub -paragraph (4) on the basis of:  
 
(a)  the selling price in Saint Christopher and Nevis of goods produced in Saint Christo pher 
and Nevis;  
 
(b)  a system which provides for the acceptance for customs purposes of the higher of two 
alternative values;  
 
(c)  the price of goods on the domestic market of the country of exportation;  
 
(d)  the cost of production, other than comput ed values which have been determined for 
identical or similar goods in accordance with paragraph 7;  
 
(e)  the price of goods for export to a country other than Saint Christopher and Nevis;  
 
(f)  minimum customs values; or  
 
(g)  arbitrary or fictitious v alues.  
 
3. (1) The customs value of imported goods determined under this paragraph shall be the transaction 
value, that is, the price actually paid or payable for the goods when sold for export to 
Saint Christopher and Nevis, adjusted in accordance with paragraph 8, and in appropriate cases 
paragraph 9, provided:  
 
(a)  that there are no restrictions as to the disposition or use of the goods by the buyer, 
other than restrictions which  
(i)  are imposed or  required by law or by the public authorities in Saint Christopher 
and Nevis,  
(ii)  limit the geographical area in which the goods may be resold, or  
(iii)  do not substantially affect the value of the goods;  
 
(b)  that the sale or price is not subject to some condition or consideration for which a value 
cannot be determined with respect to the goods being valued;  
 
(c)  that no part of the proceeds of any subsequent resale, disposal or use of the goods by 
the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment 
can be made in accordance with paragraph  8; and  
 
(d)  that the buyer and seller are not related, or, where the buyer and seller are related, 
that the transaction value is a cceptable for customs purposes under sub -paragraph (2).  
 
(2)  (a) In determining whether the transaction value is acceptable for the purposes of sub -
paragraph  (1), the fact that the buyer and the seller are related within the meaning of 
paragraph 1 shall not in itself be grounds for regarding the transaction value as G/VAL/N/1/KNA/1  
 
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  unacceptable. Where necessary, the circumstances surrounding the sale shall be 
examined and the transaction value shall be accepted provided that the relationship did 
not influence the price. If, in the light of information provided by the importer or 
otherwise the Comptroller has grounds for considering that the relationship influenced 
the price, he or she shall communicate the grounds to the importer who shall be given 
a reasonable opportunit y to respond;  
   
 (b)  in a sale between related persons, the transaction value shall be accepted and the goods 
valued in accordance with sub -paragraph (1) whenever the importer demonstrates that 
such value closely approximates to one of the following occ urring at or about the same 
time:  
 
(i)  the transaction value in sales, between buyers and sellers who are not related in 
any particular case, of identical or similar goods for export to Saint Christopher 
and Nevis,  
(ii)  the customs value of identical o r similar goods, as determined under paragraph  6,  
(iii)  the customs value of identical or similar goods, as determined under paragraph  7, 
in applying the foregoing texts, due account shall be taken of demonstrated 
differences in commercial levels, quanti ty levels, the elements enumerated in 
paragraph 8 and costs incurred by the seller in sales in which he or she and the 
buyer are not related that are not incurred by the seller in sales in which he or 
she and the buyer are related; (c) the tests set forth in sub -paragraph 2 (b) shall 
be used at the initiative of the importer and only for comparison purposes. 
Substitute values may not be established under that sub -paragraph.  
 
(3)  (a)  The price actually paid or payable is the total payment made or to be made by the buyer 
to or for the benefit of the seller for the imported goods. Payments may be made directly 
or indirectly, and need not necessarily take the form of a transfer of money, and shall 
include:  
(i)  all payments made or to be made as a condition of sale of the imported goods by 
the buyer to the seller or by the buyer to a third party to satisfy an obligation of 
the seller, and  
(ii)  any settlement by the buyer, whether in who le or in part, of a debt owed by the 
seller;  
 
 (b)  activities, including marketing activities, undertaken by the buyer on his or her own 
account, other than those for which an adjustment is provided in paragraph 8, are not 
considered to be an indirect pa yment to the seller, even though they might be regarded 
as of benefit to the seller or have been undertaken by agreement with the seller, and 
their cost shall not be added to the price actually paid or payable in determining the 
customs value of imported g oods.  
 
(4) The customs value of imported goods shall not include the following charges or costs, provided 
that they are distinguished from the price actually paid or payable for the imported goods:  
 
 (a)  charges for construction, erection, assembly, mai ntenance or technical assistance, 
undertaken after importation on imported goods such as industrial plant, machinery or 
equipment;  
 
 (b)  customs duties and other taxes payable in Saint Christopher and Nevis by reason of the 
importation or sale of the goo ds; (c) the cost of transport after importation.  
 
(5) The fact that goods which are the subject of sale are entered for home use within Saint 
Christopher and Nevis shall be regarded as adequate indication that they were sold for export to 
Saint Christophe r and Nevis. This indication shall also apply where successive sales of goods have 
taken place before valuation. Where such successive sales have taken place each price resulting 
from them may be used as a basis for valuation.  
 
4. (1) (a)  The customs value of imported goods determined under this paragraph shall be the 
transaction value of identical goods sold for export to Saint Christopher and Nevis and 
exported at or about the same time as the goods being valued;  
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  (b) in applying this pa ragraph, the transaction value of identical goods in a sale at the same 
commercial level and in substantially the same quantity as the goods being valued shall 
be used to determine the customs value. Where no such sale is found, the transaction 
value of id entical goods sold at a different commercial level and/or in different 
quantities, adjusted to take account of differences attributable to commercial level 
and/or to quantity, shall be used, provided that such adjustments can be made on the 
basis of demons trated evidence which clearly establishes the reasonableness and 
accuracy of the adjustment, whether the adjustment leads to an increase or a decrease 
in value.  
 
(2) Where the costs and charges referred to in paragraph 8 (1) (e) are included in the transa ction 
value, an adjustment shall be made to take account of significant differences in such costs and 
charges between the imported goods and the identical goods in question arising from differences in 
distances and modes of transport.  
 
(3) In applying this paragraph,  
 
(a)  if more than one transaction value of identical goods is found, the lowest such value 
shall be used to determine the customs value of the imported goods;  
(b)  a transaction value for goods produced by a different per son shall be taken into account 
only when no transaction value can be found under sub -paragraph (1) for identical 
goods produced by the same person as the goods being valued; and  
(c)  a condition for adjustment because of different commercial levels or di fferent quantities 
shall be that such adjustment shall be made only on the basis of demonstrated evidence 
that clearly establishes the reasonableness and accuracy of the adjustment.  
 
(4) For the purposes of this paragraph, the transaction value of identic al imported goods means a 
customs value previously determined under paragraph 3, adjusted as provided for in 
sub-paragraph  (1) (b) and (2) of this paragraph.  
 
5. (1) (a)  The customs value of imported goods determined under this paragraph shall be the 
transaction value of similar goods sold for export to Saint Christopher and Nevis and 
exported at or about the same time as the goods being valued.  
 
(b)  In applying this paragraph, the transaction value of similar goods in a sale at the same 
commercial leve l and in substantially the same quantity as the goods being valued shall 
be used to determine the customs value. Where no such sale is found, the transaction 
value of similar goods sold at different commercial level and/or in different quantities, 
adjusted  to take account of differences attributable to commercial level and/or to 
quantity, shall be used, provided that such adjustments can be made on the basis of 
demonstrated evidence which clearly establishes the reasonableness and accuracy of 
the adjustment , whether the adjustment lead to an increase or a decrease in value.  
 
(2) Where the costs and charges referred to in paragraph 8 (1) (c) are included in the transaction 
value, an adjustment shall be made to take account of significant differences in such costs and 
charges between the imported goods and the similar goods in question arising from differences in 
distances and modes of transport.  
 
(3) In applying this paragraph,  
 
(a)  if more than one transaction value of similar goods is found, the lowest s uch value shall 
be used to determine the customs value of the imported goods;  
 
(b)  a transaction value for goods produced by a different person shall be taken into account 
only when no transaction value can be found under subparagraph (1) for similar goo ds 
produced by the same person as the goods being valued;  
 
(c)  a condition for adjustment because of different commercial levels or different quantities 
shall be that such adjustment shall be made only on the basis of demonstrated evidence 
that clearly e stablishes the reasonableness and accuracy of the adjustment.  
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  (4) For the purposes of this paragraph, the transaction value of similar imported goods means a 
customs value previously determined under paragraph 3, adjusted as provided for in 
sub-paragraph  (1) (b) and 2 of this paragraph.  
 
6. (1) (a)  If the imported goods or identical or similar imported goods are sold in Saint Christopher 
and Nevis in the condition as imported, the customs value of the imported goods, 
determined under this paragraph, shall be based on the unit price at which the impor ted 
goods or identical or similar imported goods are sold in the greatest aggregate quantity, 
at or about the time of the importation of the goods being valued, to persons who are 
not related to the persons from whom they buy such goods, subject to deducti ons for 
the following:  
 
(i)  either the commissions usually paid or agreed to be paid or the additions usually 
made for profit and general expenses (including the direct and indirect costs of 
marketing the goods in question) in connection with sales in Sa int Christopher 
and Nevis of imported goods of the same class or kind.  
(ii)  the usual costs of transport and insurance and associated costs incurred within 
Saint Christopher and Nevis, and  
(iii)  the customs duties and other taxes payable in Saint Chris topher and Nevis by 
reason of the importation or sale of the goods;  
 
(b) if neither the imported goods nor identical nor similar imported goods are sold at or 
about the time of importation of the goods being valued, the customs value of imported 
goods determined under this paragraph shall, subject otherwise to the provisions of  
sub-paragraph (1) (a), be based on the unit price at which the imported goods or 
identical or similar imported goods are sold in Saint Christopher and Nevis in the 
condition as imported at the earliest date after the importation of goods being valued 
but before the expiration of ninety days after such importation.  
 
(2) If neither the imported goods nor identical nor similar imported goods are sold in Saint 
Christopher and Nevis in the condition as imported, then, if the Comptroller so decides, the customs  
value shall be based on the unit price at which the imported goods, after further processing, are sold 
in the greatest aggregate quantity to persons in Saint Christopher and Nevis who are not related to 
the persons from whom they buy such goods, due allow ance being made for the value added by 
such processing and the deductions provided for in subparagraph (1) (a). Where this method of 
valuation is used, deductions made for the value added by further processing shall be based on 
objective and quantifiable d ata relating to the cost of such work. Accepted industry formulas, recipes, 
methods of construction and other industry practices shall form the basis of the calculations.  
 
(3) In this paragraph, the unit price at which imported goods or identical or simil ar imported goods 
are sold in the greatest aggregate quantity is the price at which the greatest number of units is sold 
in sales to persons who are not related to the persons from whom they buy such goods at the first 
commercial level after importation at  which such sales take place.  
 
(4) Any sale in Saint Christopher and Nevis to a person who supplies directly or indirectly free of 
charge or at a reduced cost for use in connection with the production and sale for export of the 
imported goods any of the e lements specified in paragraph 8 (1) (b), shall not be taken into account 
in establishing the unit price for the purposes of this paragraph.  
 
(5) For the purposes of sub -paragraph (1) (a) (i),  
 
(a)  profit and general expenses shall be taken as a whole. The figure for the purposes of 
this deduction shall be determined on the basis of information supplied by or on behalf 
of the importer unless his or her figures are inconsistent with those obtaining in sales 
of imported goods of the same class or kind. Whe re the importer’s figures are 
inconsistent with such figures, the amount for profit and general expenses may be based 
upon relevant information other than that supplied by or on behalf of the importer;  
 
(b)  in determining either the commission or the add itions usually made for profit and 
general expenses, the question whether certain goods are of the same. Class or kind as 
other goods shall be determined on a case -by-case basis by reference to the 
circumstances involved. In doing this, sales for which the  necessary information can be G/VAL/N/1/KNA/1  
 
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  provided of the narrowest group or range of imported goods of the same class or kind 
as the goods being valued should be examined; and  
 
(c)  goods of the same class or kind includes goods imported from the same country as the  
goods being valued as well as goods imported from other countries.  
 
(6) For the purposes of sub -paragraph (1) (b), the earliest date shall be the date by which sales of 
the imported goods or of identical or similar imported goods are made in sufficient q uantity to 
establish the unit price.  
 
7. (1) The customs value of imported goods determined under this paragraph shall be based on a 
computed value which shall consist of the sum of:  
 
(a)  the cost or value of materials and fabrication or other processing employed in producing 
the imported go ods; 
  
(b)  an amount for profit and general expenses equal to that usually reflected in sales of 
goods of the same class or kind as the goods being valued which are made by producers 
in the country of exportation for export to Saint Christopher and Nevis;  and  
 
(c)  the cost or value of the items referred to in paragraph 8(1) (e).  
 
(2) The cost or value of materials and fabrication referred to in sub -paragraph (1) (a) above shall 
include the cost of elements specified in paragraph 8 (1) (a) (ii) and (iii) . It shall also include the 
value, duly apportioned, of any element specified in paragraph 8 (1) (b) which has been supplied 
directly or indirectly by the buyer for use in connection with the production of the imported goods. 
The value of the elements spec ified in paragraph 8 (1) (b) (iv) which are undertaken in Saint 
Christopher and Nevis shall be included only to the extent that such elements are charged to the 
producer. No cost or value of an element referred to in this sub -paragraph shall be counted mor e 
than once in determining the computed value.  
 
(3) The cost or value referred to in sub -paragraph (1) (a) shall be determined on the basis of 
information relating to the production of the goods being valued, supplied by or on behalf of the 
producer. It s hall be based upon the commercial accounts of the producer, provided that these 
accounts are consistent with the generally accepted accounting principles applied in the country 
where the goods are produced.  
 
(4) For the purposes of sub -paragraph (1) (b),  
 
(a)  the amount for profit and general expenses shall be taken as a whole and shall be 
determined on the basis of information supplied by or on behalf of the producer unless 
his or her figures are inconsistent with those usually reflected in sales of goo ds of the 
same class or kind as the goods being valued which are made by producers in the 
country of exportation for export to Saint Christopher and Nevis.  
 
(b)  if the producer’s own figures for profit and general expenses are not consistent with 
those u sually reflected in sales of the goods of the same class or kind referred to in sub -
paragraph (4) (a) the amount for profit and general expenses may be based upon 
relevant information other than that supplied by or on behalf of the producer of the 
goods;  
 
(c)  goods of the same class or kind means goods imported from the same country as the 
goods being valued;  
 
(d)  whether goods are of the same class or kind as other goods shall be determined on a 
case-by-case basis with reference to the circumstances in volved. In doing this, sales for 
export to Saint Christopher and Nevis of the narrowest group or range of goods of the 
same class or kind as the goods being valued for which the necessary information can 
be provided should be examined;  
 
(e)  the general e xpenses referred to cover the direct and indirect cost of producing and 
selling the goods for export which are not included under sub -paragraph (1) (a).  G/VAL/N/1/KNA/1  
 
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  8. (1) In determining the customs value under paragraph 3, there shall be added to the price actually 
paid or payable for the imported goods;  
 
(a)  the following, to the extent that they are incurred by the buyer but are not included in 
the price actually paid or payable for the goods:  
(i)  commission and brokerage, except buying commissions,  
(ii)  the cost of containers which are treated as being one of the customs purpose with 
the goods in question,  
(iii)  the cost of packing, whether for labor or materials;  
 
(b)  the value, apportioned appropriately of the following goods and services where supplied 
directly or indirectly by the buyer free of charge or at reduced cost for use in connection 
with the production and sale for export of the imported goods, to the extent  that such 
value has not been included in the price actually paid or payable:  
(i)  materials, components, parts and similar items incorporated in the imported 
goods,  
(ii)  tools, dyes, moulds and similar items used in the production of the imported 
goods ,  
(iii)  materials consumed in the production of the imported goods,  
(iv)  engineering, development, artwork, design work, and plans and sketches 
undertaken elsewhere than in Saint Christopher and Nevis and necessary for the 
production of the imported go ods;  
 
(c)  royalties and license fees, which among other things, may include payments in respect 
of patents, trademarks and copyrights, related to the goods being valued that the buyer 
must pay either directly or indirectly, as a condition of sale of the goods being valued, 
to the extent that such royalties and fees are not included in the price actually paid or 
payable.  
 
(d)  the value of any part of the proceeds of any subsequent resale, disposal or use of the 
imported goods that accrues directly or ind irectly to the seller;  
 
(e)  (i)  the cost of transport of the imported goods to the port or place of importation,  
(ii) loading and handling charges associated with the transport of the imported goods 
to the port or place of importation, and  
(iii)  the cost of insurance.  
 
(2) No additions shall be made to the price actually paid or payable in determining the customs value 
except as provided in this paragraph.  
 
(3) Additions to the price actually paid or payable shall be made under this paragraph only o n the 
basis of objective and quantifiable data; and if such do not exist a transaction value shall not be 
determined under the provisions of paragraph 3.  
 
(4) In this paragraph, the term “buying commissions” means fees paid by an importer to his or her 
agent for the service of representing him or her abroad in the purchase of the goods being valued.  
 
(5) Notwithstanding sub -paragraph (1) (c) of this paragraph,  
 
(a)  charges for the right to reproduce the imported goods in Saint Christopher and Nevis 
shall not be added to the price actually paid or payable for the imported goods in 
determining the customs value; and  
 
(b)  payments made by the buyer for the right to di stribute or re -sell the imported goods 
shall be added to the price actually paid or payable for the imported goods if such 
payments are not a condition of the sale for export to Saint Christopher and Nevis of 
the goods.  
 
9. (1) Charges for interest under a financing arrangement entered into by the buyer and related to 
the purchase of imported goods shall not be included in the customs value determined under 
paragraph 3 provided that  
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  (a)  the charges are distinguished from the price actually paid or payab le for the goods;  
 
(b)  the financing arrangement has been made in writing;  
 
(c)  where required by the Comptroller, the buyer can demonstrate that:  
(i)  such goods are actually sold at the price declared as the price actually paid or 
payable, and  
(ii)  the claimed rate of interest does not exceed the level for such transactions 
prevailing in the country where, and at the time when, the finance was provided.  
 
(2) The provisions of sub -paragraph (1) shall apply regardless of whether the finance is provid ed by 
the seller, a bank or another person; and it shall also apply, mutatis mutandis, where customs value 
is determined under a method other than the transaction value.  
 
 
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