G/VAL/W/366  
 
19 October  2020 
(20-7203) Page: 1/2 
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  
SOLOMON ISLANDS  
Replies from the Solomon Islands to the Questions from the United States  
contained in document G/VAL/W/298  
The following communication, dated 12 October  2020, is being circulated at the request of the 
delegation of the Solomon Islands . 
 
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The Solomon Islands  would like to thank Solomon Islands  for its notification contained in 
G/VAL/N/1/SLB/1.  Having reviewed this notification, we have the following questions r egarding the 
Customs Valuation Act 2009 that was notified . 
1.  Articles (7)(2)(g) and 7(3)(d) of the Act appear to concern the costs or charges 
related to the purchase of the finance for the imported goods.  Please explain which 
provision of the CVA these articles implement . 
Answer:  
Articles (7)(2)(g) of the Customs Valuation Act 2009 have been repealed with Amendment to the 
Act in 2010  (see document G/VAL/N/1/SLB/Add.1) .  
The provision for deductible financing costs is not included in the Articles of the WTO Valuation 
Agreement itself, but in Decision 3.1 adopted by the WTO Committee on Customs Valuation during 
its ninth meeting, 1984  (see document G/VAL/N/3/SLB/1)  
2. Article 8(2) of the Act appears to provide for situations with respect to identical 
goods where customs may disregard a requirement that such goods were produced 
by or on behalf of the producers of the imported goods . Artic le 15(2)(e) of the CVA 
refers to identical and similar goods, and provides that goods produced by a different 
person shall be taken into account only when there are no identical goods or similar 
goods, as the case may be, produced by the same person as the  goods being valued.  
Please indicate how Solomon Islands plans to implement Article  15(2)(e) with 
respect to similar goods . 
Answer:  
Article (8)(2) of the Act provides for identical goods whilst Article (9 ) of the Act provides for similar 
goods. Therefore A rticle 15(2)(e) of the CVA, specifically for similar goods can be addressed by 
Article (9) of the Act.  
3. Article 12(2)(f) appears to provide that goods and services provided for in 
Article  8(1)(b) of the CVA are included in the computed value of imported 
merchandise. We note that the interpretative note to Article 6 of the CVA further 
specifies that the value of any engineering, development, artwork, design work, and G/VAL/W/366  
 
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  plans and sketches which  are undertaken in the country of importation shall be 
included only to the extent that such elements are charged to the producer. Please 
indicate how this provision will be implemented .  
Answer:  
Note to Article (6) of the CVA indeed further specifies th at the value of any engineering, 
development, artwork, design work, and plans and sketches which are undertaken in the country of 
importation shall be included only to the extent that such elements are charged to the producer. 
The approach  that will address the implementation of th ese measures  is Article (7)(2)(h) of the Act.  
4. Article 12(2)(e) appears to provide that proceeds of any subsequent resale are 
included in the computed value of imported merchandise.  Please explain how this 
provision is implemente d in accordance with the CVA, which does not provide for 
such an addition to computed value.   
Answer:  
Article (8)(1)(d)  of the CVA correlates to Article 12(2)(e) of the Act. In determining the customs 
value under the CVA, it says "there shall be added to the price actually paid or payable for the 
imported goods " and (d) provides for "the value of any part of the proceeds of any subsequent 
resale, disposal or use of the imported goods that accrues directly or indirectly to the seller ". Hence, 
Article (12)(2 )(e) of the Act is consistent with Article (8)(1)(d) of the CVA.   
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