G/VAL/W/349  
 
30 October 2019  
(19-7299) Page: 1/4 
Committee on Customs Valuation  Original: English  
 
NOTIFICATION UNDER A RTICLE 22 OF THE AGR EEMENT ON  
IMPLEMENTATION OF AR TICLE VII OF THE GEN ERAL  
AGREEMENT ON TARIFFS  AND TRADE 1994  
KINGDOM OF BAHRAIN  
Replies from the Kingdom of Bahrain to Questions from the United States  
contained in document G/VAL/W/310  
The following communication , dated 25 October 2019, is being circulated at the request of the 
delegation of the Kingdom of Bahrain.  
 
_______________  
 
 
In reference to the questions raised by the United States to the Kingdom of Bahrain in G/VAL/W/310, 
kindly note the following answers:  
Question 1  
In response to Question 1 of G/VAL/W/223, Bahrain indicated that "[j]oining the [CVA] 
and publishing it in t he official Gazette and its application is now considered to be a law 
in Bahrain." However, this response does not identify a particular provision in Bahrain's 
law that reflects the requirements of Article 12 of the WTO Customs Valuation Agreement 
(CVA).  
Could Bahrain please identify the specific provision in its law that implements Article 12 
of the CVA?  
Answer:   
Legislative Decree No. (7) of 1994 on the ratification of the document establishing the World Trade 
Organization. Which according to it the "Results of the Uruguay Round " became part of the Bahraini 
Law along with it the implementation of CVA.  
Question 2 
In response to Question 2 of G/VAL/W/223, Bahrain noted that the Common Customs 
Law (CCL) definitions apply when the CCL is being applied and the  Rules of 
Implementation (ROI) definitions apply when the ROI are being applied. However, it 
remains unclear why certain terms, such as "price actually paid or payable", have different 
definitions in the CCL and the ROI.  
Could Bahrain please explain how i t reconciles these differing definitions?  
Answer:   
The definition in the CCL is a general definition, while the ROI provides further explanation.  G/VAL/W/349  
 
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  Question 3 
In response to Question 10 of G/VAL/W/223, Bahrain noted that the price actually paid 
or payable is the total amount paid or payable by the buyer to the seller, in accordance 
with the Interpretative Note to Article 1 of the CVA. However, the Interpretive Note to 
Article 1 of the CVA does not refer to payments made "under his knowledge."  
Could Bahrain please explain the meaning of the phrase "under his knowledge" as used 
in clause II.1 of Article 1(1) of the ROI?  
Answer:   
We understand your concerns, and the matter therefore is being reviewed with the our regional 
partners at the Gulf Cooperati on Council.  
Question 4 
In response to Question 12 of G/VAL/W/223, Bahrain noted that "[t]he meaning of "unit 
price in greatest aggregate quantity " is in accordance with the explanatory notes of the 
Customs Valuation Agreement…". However, while the ROI prov ides a definition of "unit 
price in the greatest aggregate quantity," the definition in Article 2 of the CCL refers to 
the "unit price at the greatest total quantity." Could Bahrain explain the meaning of "unit 
price at the greatest total quantity," as use d in the CCL, and how to reconcile that 
definition with the definition in clause II.8 of Article 1(1) of the ROI?  
Answer:   
The law is applicable in the Arabic version, where the definition is the same. The English version is 
indicative.  
Question 5 
The re sponse provided to Question 14 of G/VAL/W/223 is unclear. Could Bahrain please 
identify a provision in the CCL or ROI that clarifies that the transaction value should not 
be disregarded merely because the buyer and the seller are related?  
Answer:  
Clause I V.A and IV.B of Article 1(1) of the ROI . 
Question 6 
In response to Question 15 of G/VAL/W/223, Bahrain notes that there is "no difference 
between the buyer and the importer." However, the response does not provide a citation 
to the CCL or ROI in support. A s such, it remains unclear how clause IV.B.1 of Article 1(1) 
of the ROI, which refers to the "importer," relates to Article 8.1(a) of the CVA, which 
refers to the "buyer." Could Bahrain please explain how clause IV.B.1 implements the 
CVA?  
Answer:  
The law i s applicable in the Arabic version, where the text used translates to "buyer ". 
Question 7 
The response provided to Question 16 of G/VAL/W/223 is not clear. Could Bahrain please 
clarify whether Bahrain interprets clause IV.C.1.f of Article 1(1) of the ROI to apply to 
activities undertaken by the buyer to the extent that there is not an adjustment to the 
price actually paid or payable in Article 8 of the CVA?  G/VAL/W/349  
 
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  Answer:  
Clause IV.C.1.f of Article 1(1) of the ROI refers to activities undertaken by the buyer on his own 
account post -importation which will have no adjustment to the price actually paid or payable.  
Question 8 
The response provided to Question 17 of G/VAL/W/223 is not clear. Could Bahrain please 
elaborate on clauses IV.C.2, 3, and 4 of Article 1(1)  of the ROI, as well as the 
Interpretative Note to IV.C.2 in the Interpretative Annex and how it is interpreted with 
clause IV.C.2.  
Answer:  
We have no further explanation.  
Question 9 
The response provided to Question 18 of G/VAL/W/223 is not clear. Could Bahrain please 
identify the authority under which adjustments are made to the transaction value of 
identical or similar merchandise, and indicate whether such adjustments would be made 
to the transaction value of identical or similar merchandise pursuant t o clause V?  
Answer:   
The authority under which adjustments are made is the Bahrain Customs Affairs ' Customs Valuation 
Committee  
Question 10 
In response to Question 20 of G/VAL/W/223, Bahrain cited "Clause (b) of paragraph (1) 
of Article 79 of the (ROI)" and indicated that it is the same as paragraph 1(b) of Article 6 
of the CVA. Although clause VII.1.b. is similar to paragraph 1(b) of the CVA,  we were 
unable to find the cited ROI Article (79). We also note that clause VII.1.b does not 
expressly require the importing country to use the producer's figures unless they are 
inconsistent with those usually reflected in sales of the same class or kind  of goods. Could 
Bahrain explain if paragraph 4 of the Interpretative Note to Article 6 of the CVA is 
implemented in Bahrain's customs laws, and, if so, identify under which provision?  
Answer:  
Bahrain implements GCC Common Customs Law, and paragraph 4 of t he Interpretative Note to 
Article 6 of the CVA is implemented according to Clause VII.1.b of the ROI.  
Question 11 
The response provided to Question 23 of G/VAL/W/223 is unclear. Paragraph 2 of the 
Note to Article 8.1(b)(ii) of the CVA states that "if the i mporter acquires the element from 
a seller not related to the importer at a given cost, the value of the element is that cost." 
Could Bahrain explain how clause IV.B.1.iv.b.2, which requires that a tool, die, mould, or 
similar item used in the production o f a good be valued at the cost of production if acquired 
from an unrelated seller, can be reconciled with Note 2?  
Answer:   
Clause IV.B.1.iv.b.2 does not exist in the CCL, however, Clause IV.B.1.iv.b is in compliance with the 
CVA G/VAL/W/349  
 
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  Question 12 
The response p rovided to Question 26 of G/VAL/W/223 states that the question is not 
clear. In the context of the valuation of merchandise under Articles 2 and 3 of the CVA 
(i.e., transaction value of identical merchandise and transaction value of similar 
merchandise), B ahrain's Interpretative Annex states that "if … more than one transaction 
value … is found, which were sold at the same commercial level, in the same quantity and 
in the same sale circumstances … then the lowest of such values shall be used." Could 
Bahrain  clarify how it applies the "same sale circumstances" language?  
Answer:  
The explanation is in Article 5.B.5 of the Interpretative Annex.  
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