RESTRICTED  
  
G/VAL/W/305  
 
26 October 2017  
(17-5842) Page: 1/6 
Committee on Customs Valuation    
 
 
 DRAFT  
  TWENT Y-THIRD  ANNUAL REVIEW OF THE  IMPLEMENTATION AND  
OPERATION OF THE AGR EEMENT ON IMPLEMENTA TION OF ARTICLE VII  
OF THE GENERAL AGREE MENT ON TARIFFS AND TRADE 19941 
Article 23 of the Agreement provides that "the Committee shall review annually the implementation 
and operation of this Agreement taking into account the objectives thereof".  The main objectives of 
the Agreement are those listed in the Genera l Introductory Commentary. The  annual review of the 
Committee should cover the implementation and  operation of the Agreement in the light of its 
objectives and specific obligations.  
At its meeting  of 6 November 2017 , the Committee on Customs Valuation conducted and adopted 
the 23rd annual review of the implementation and operation of the Agreement . 
 
_______________  
 
                                                
 
1 This report was adopted by the Committee on Customs Valuat ion at its meeting of 6 November  2017. G/VAL/W/305  
 
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  The contents of this document are as follows:  
  Page 
  
I. MEMBERS' DELAYED APP LICATIONS, RESERVATI ONS AND OBSERVER 
STATUS  ................................ ................................ ................................ ............................  2 
(a) Delayed Application and Reservations  ................................ ................................ ...........  2 
(i) Article 20.1 (delayed application of the provisions of the Agreement)  ...............................  2 
(ii) Article 20.2 (delayed application of the computed value method)  ................................ ..... 2 
(iii) Annex III, paragraph 1 (extension of the five -year delay period)  ................................ ...... 2 
(iv) Annex III, paragraph 2 (reservation concerning minimum values)  ................................ .... 3 
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of 
Articles 5 and  6) (53)  ................................ ................................ ................................ ..........  3 
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the 
importer so requests) (51)  ................................ ................................ ................................ ... 3 
(b) Observer Governments  (20) ................................ ................................ ........................  3 
(c) Observer International Organizations (6)  ................................ ................................ ...... 4 
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS  VALUATION ...............................  4 
III. MEETINGS OF THE COMM ITTEE  ................................ ................................ ...............  4 
IV. NATIONAL LEGISLATION  AND OTHER NOTIFICATI ONS PRESENTED  .......................  4 
(a) Texts of national legislation  ................................ ................................ .........................  4 
(b) Checklist of issues  ................................ ................................ ................................ ...... 4 
(c) Information on the application of the Committee Decisions  ................................ ...............  5 
V. TECHNICAL ASSISTANCE  ................................ ................................ .........................  5 
VI. ISSUES RELATED TO IM PLEMENTATION OF THE AGREEMENT  ................................ .. 5 
VII.  PRESHIPMENT INSPECTI ON ................................ ................................ ....................  6 
VIII.  REPORTS BY THE TECHN ICAL COMMITTEE ON CU STOMS VALUATION  .....................  6 
IX. CONSULTATION AND DIS PUTE SETTLEMENT  ................................ ...........................  6 
X. ANNUAL REPORT TO THE  COUNCIL FOR TRADE IN  GOODS  ................................ ...... 6 
 
I. MEMBERS ' DELAYED APPLICATIONS , RESERVATIONS AND O BSERVER STATUS  
(a) Delayed Application and Reservations  
1.1. This section reflects the situation with respect to special and differential treatment provisions 
available for de veloping country Members as of 18 October  2017. These provisions have been 
invoked as follows:  
(i) Article 2 0.1 (delayed application of the provisions of the Agreement)  
1.2. No Member maintains this special and differential treatment provision.  
(ii) Article 20.2 (delayed application of the computed value method)  
1.3. No Member maintains this special and differential treatment provision.  
(iii) Annex III, paragraph 1 (extension of the five -year delay period)  
1.4. No Member maintains this special and differential treatment provision.  G/VAL/W/305  
 
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  (iv) Annex III, paragraph 2  (reservation concerning minimum values)  
1.5. No Member maintains this s pecial and differential treatment provision.  
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5 
and 6) (53)  
Argentina2 Guatemala  Niger 
Bahrain, Kingdom of  Guyana  Pakistan  
Bangladesh  Haiti Panama  
Benin  Honduras  Peru3 
Brazil3 India3 Philippines  
Brunei Darussalam  Indonesia  Senegal  
Burkina Faso  Israel  Sri Lanka  
Cameroon  Jamaica  Thailand  
Chile Kenya  Togo 
Colombia  Madagascar  Tunisia  
Costa Rica  Malawi3 Turkey3 
Côte d'Ivoire  Malaysia  Uganda  
Djibouti  Maldives  United  Arab Emirates  
Dominican Republic  Mali Uruguay  
Ecuador  Mexico3 Venezuela, Bol. Rep. of   
Egypt  Morocco3 Zambia  
El Salvador  Myanmar  Zimbabwe3 
Gabon  Nicaragua   
 
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so 
requests) (51)  
Argentina3 Dominican Republic  Kenya  Peru4 
Bahrain, Kingdom of  Ecuador  Madagascar  Philippines  
Bangladesh  Egypt  Malaysia  Senegal  
Benin  El Salvador  Malawi  Sri Lanka  
Brazil4 Gabon  Maldives  Thailand  
Brunei Darussalam  Guatemala  Mali Togo 
Burkin a Faso  Guyana  Mexico4 Tunisia  
Cameroon  Haiti Morocco4 Turkey4 
Chile Honduras  Myanmar Uruguay  
Colombia  India4 Nicaragua  Venezuela, Bol. Rep. of   
Costa Rica  Indonesia  Niger Zambia  
Côte d'Ivoire  Israel  Nigeria  Zimbabwe4 
Djibouti  Jamaica  Pakistan   
 
(b) Observer Governments (2 0) 
Algeria  Holy See  
Andorra  Iran 
Azerbaijan  Iraq 
Bahamas  Lebanese Republic  
Belarus  Libya  
Bhutan  Sao Tomé and Principe  
Bosnia and Herzegovina  Serbia  
Comoros  Sudan  
Equatorial Guinea  Syrian Arab Republic  
Ethiopia  Uzbekistan  
                                                
 
2 Members that maintain in the WTO the special and differential treatment provisions that had been 
invoked under the Tokyo Round Agreement through Decision WT/L/38.  
3 Members that maintain in the WTO the special and d ifferential treatment provisions that had been 
invoked under the Tokyo Round Agreement through Decision WT/L/38.  G/VAL/W/305  
 
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  (c) Obser ver International Organizations (6)4 
African, Caribbean and Pacific Group of States (ACP)  
Inter-American Development Bank (IADB)  
International Monetary Fund (IMF)  
United Nations Conference on Trade and Development (UNCTAD)  
World Bank  
World Customs Org anization (WCO)  
 
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS  VALUATION  
2.1. Chairperson (elected in July 2016)   Dr Yasser Korani (Egypt)  
 Chairperson ( elected in May 2017 )  Ms Luciana Nader (Uruguay)  
 
III. MEETINGS OF THE COMM ITTEE  
3.1. During the period under r eview , the Committee held two formal meetings :  on 15 May 2017 
(G/VAL/M/ 64) chaired by Dr Yasser Korani (Egypt); and on 6 November 2017  (G/VAL/M/6 5)5, 
chaired by Ms Luciana Nader (Uruguay).  
IV. NATIONAL LEGISLATION  AND OTHER NOTIFICATI ONS PRESENTED  
(a) Texts of na tional legislation  
4.1. Article 22 of the Agreement requires each Member to inform the Committee of any changes 
in its laws and regulations relevant to the Agreement , and in the administration of such laws and 
regulations. At its first meeting, on 12 May 1 995, the Committee agreed on procedures for the 
notification of national legislation (G/VAL/M/1, paragraphs 29 -35, 71 and 72).  Paragraph i) of the 
"Decision on Notification and circulation of national legislation in accordance with Article  22 of the 
Agreem ent"6 requires Members to submit the complete texts of their national legislation (laws, 
regulations, etc.) on customs valuation in one of the three official WTO languages.  
4.2. The status of these notifications is contained in document s G/VAL/ W/232/Rev.7 and 
G/VAL/ W/232/Rev.7/Corr.1 . During the period under review , new notification s were submitted by  
Kazakhstan (G/VAL/N/ 1/KAZ/1) and by Malawi (G/VAL/N/ 1/MWI/2).  
4.3. At the meeting of 15 May , the Committee continued the examination of the national 
legislat ions of 18 Members . It concluded the review of the national legislation s of Cabo Verde, 
Colombia, Montenegro and Nicaragua , and agreed to revert at the next meeting to the examination 
of the legislations of the following 14 Members: the Kingdom of Bahrain;  Belize; Ecuador; The 
Gambia; Guinea; Honduras; Kazakhstan; Malawi; Nepal; Nigeria; Russian Federation; Rwanda; 
Solomon Islands; and Sri Lanka.   
4.4. At its meeting of 6 November , the Committee continued the examination of the national 
legislations  of 14 Members and agreed to revert at the next meeting to the examination of the 
legislations of  the following Members: [the Kingdom of Bahrain; Belize; The Gambia; Guinea; 
Honduras; Kazakhstan; Malawi; Nepal; Nigeria; the Russian Federation; Rwanda; Solomon 
Islands; and Sri Lanka. .] [In addition, the Comm ittee concluded the review of the national 
legislation[s] of [ ]] . 
(b) Checklist of issues  
4.5. At its first meeting, on 12 May 1995, the Committee agreed on procedures for the 
submission of replies to a checklist of  issues (G/VAL/M/1, paragraphs 36 -39). The checklist of issues 
is contained in G/VAL /5. 
                                                
 
4 These organizations now have official observer status following Agreement in the Committee 
(G/VAL/M/5) and Agreements between the World Bank and the IMF with the WTO (WT/L/195).  
5 To be issued.  
6 Section B.2 of document G/VAL/5 . G/VAL/W/305  
 
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  4.6. The status of the checklist of issues notifications is contained in document s 
G/VAL/ W/232/Rev.7 and G/VAL/ W/232/Rev.7/Corr.1 . During the period under review , new 
notifications were submitted by Malawi (G/VAL/N/2/ MWI/ 1) and by Nicaragua (G/VAL/N/2/NIC/ 2). 
 
(c) Information on the application of the Committee Decisions  
4.7. At its first meeting on 12 May 1995, the Committee adopted Decisions which had been 
previously adopt ed by the Tokyo Round Committee. These Decisions are reproduced in document 
G/VAL/5. The  Committee also adopted Decisions that were referred by the Ministers at Marrakesh to 
the Committee. The texts of the decisions are contained in document G/VAL /1. 
4.8. Notifications on the application of the Decision on the Treatment of Interest Charges in the 
Customs Value of Imported Goods and of paragraph 2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing Equipment (G/VAL/5) were summarized by the 
Secretariat in document s G/VAL/W/5/Rev.2 7 and G/VAL/W/5/Rev.28 . During the period under 
review , new notification s were submitted by Malawi (G/VAL/N/3/MWI/1) and by Nicaragua 
(G/VAL/N/3/NIC/1).  
 
4.9. The Committee  suspended , at the 15 May meeting, its ongoing discussions on a proposal by 
Uruguay (G/VAL/W/241/Rev.1) to update the Decision on the Valuation of Carrier Media Bearing 
Software for Data Processing Equipment until the next meeting of the Committee. [At the 6 
November meeting, the C ommittee ….]. Additional documents related to this item include a related 
proposal by Switzerland (G/VAL/W/254), a report with statistics on imports of th ose products  
(G/VAL/ W/249 ), which was prepared by the Secretariat at the Committee's request , and Urug uay's 
responses to questions raised by one delegation (G/VAL/ W/264 ).  
4.10.  [No decisions were taken by the Committee during the period under review .] 
V. TECHNICAL ASSISTANCE  
5.1. The Committee took note that technical assistance in the area of customs valuat ion was 
incorporated in to the WTO -wide technical assistance programme, and that the 2016-2017 biennial 
technical assistance plan was currently being implemented.  
5.2. Training  on customs valuation was carried out as part of the following WTO activities: a 
regional market access workshop for the Arab region delivered i n Kuwait ; WTO Regional Trade 
Policy Courses  in English -speaking Africa, French -speaking Africa,  Asia, the Caribbean,  CEECAC 
and Latin America; a WTO Advanced Trade Policy Course  in Geneva ; and, a national workshop on 
customs valuation for St. Vincent and the Grenadines carried out in cooperation with the WCO . 
5.3. Members ha ve the possibility to request at any time  technical assistance on customs 
valuation, which would be met by a national activ ity designed to meet the needs of the recipient .  
5.4. The Committee took note of information compiled by the Technical Committee on Customs 
Valuation in documents  G/VAL/8/Add.34 , G/VAL/8/Add.35 and G/VAL/8/Add.35 /Corr.1  concerning 
technical assistance act ivities carried o ut by the WCO and its Members.  
VI. ISSUES RELATED TO IM PLEMENTATION OF THE AGREEMEN T 
6.1. During the period under review,  the Committee : 
 
 agreed to remove the agenda item "Paragraph 12 of the Doha Minis terial Declaration  
WT/MIN/(01)/Dec/1): I mplementation -related issues" (meeting of 15 May) ; 
 took note of statements made under the agenda item "Armenia's R eference Price System in 
Connection with the  Valuation of Goods, raised by the United States (meetings of 15 May  
and 6 Novemb er);  
 took note o f statements made  under the agenda item "P akistan's Determination of Customs  
Values of Paper", raised by  Thailand (meeting of 15 May),  and agreed to revert to it at the 
next meeting . At the meeting of 6 November , the Committee [ …]. 
 G/VAL/W/305  
 
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  VII.  PRESHIPMENT INSPECTI ON 
7.1. During the period under review, the committee:  
  
 took note of two report s consolidating the status of all the notifications which had been  
received on preshipment inspection ( G/PSI/N/1/Re v.2/Add. 4) and (G/PSI/N/1/Rev. 3). No 
new notifications were subm itted during the period under review ,; 
 took note , at the meeting of 15 May, of statements made under the agenda item "Egypt's  
status of Notification of PSI"  raised by  the United States and which was referred to in 
document G/VAL/W/299 , circulated at the re quest of the United States;  
 took note of statements made under the agenda item of questions and responses by the 
United States and Indonesia, respectively ;  
 took note  of the latest report s by the International Federation of Inspection Agencies ( IFIA) 
conce rning countries that use preshipment inspection services  which were circulated  in 
document s G/VAL/W/63/Rev. 20 and G/VAL/W/63/Rev.2 17; and  
 undertook the Fourth  Triennial Review pursuant to Article 6 of the PSI Agreement  and took 
note of the draft factual re port prepared by the Secretariat and circulated in document 
G/VAL/W/ 307.  
 
VIII.  REPORTS BY THE TECHNI CAL COMMITTEE ON CUS TOMS VALUATION  
8.1. The representative of the WCO presented report s at the 15 May and 6 November meetings 
on the work of the Technical Commi ttee on Customs Valuation , including the 44th session of the 
Technical Committee, which was held from 8 to 12 May 2017 and the 45th session which w as held 
from 23 to 26 October 2017. 
 
IX. CONSULTATION AND DIS PUTE SETTLEMENT  
9.1. During the period under review , there were no request s for consultations involving either the 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 
(Agreement on Customs Valuation)  or the Agreement on Preshipment Inspection . 
X. ANNUAL REPORT TO THE  COUNCIL FOR TRADE IN GOODS  
10.1. The Committee adopted its annual report to the Council for Trade in Goods in accordance 
with the requirements of Article  23 of the Agreement  (G/L/xxx). 
__________  
                                                
 
7 To be issued