G/VAL/N/2/LKA/1
11 May 2015
(15-2473)  Page: 1/4
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 
CHECK-LIST  OF ISSUES 
SRI LANKA 
The following submission, dated 5 May 2015, is being circulated at the request of the delegation of 
Sri Lanka.    
_______________ 
 
1. Questions concerning Article 1:  
(a) Sales between related persons:  (i) Are sales between related per son subject to special provisions?  
 Provisions for dealing with sales between related person in the context of the transaction 
value method are found in of Article 1.2 of Schedule E of the Act. 
 (ii) Is the fact of intercompany pric es prima facie considered as grounds for 
regarding the respective prices as being influenced? 
 No.  The fact that the buyer and seller are rela ted within the meaning of Article 9 is not in 
itself grounds for regarding the transaction value as unacceptable.  Subparagraph 2 (a) of Article 1 of Schedule E is clear on this point.  It serves to alert the Customs that there may 
be a need to inquire as to the circumstances surrounding the sale. 
 (iii) What is the provision for giving the communication of the afore-mentioned 
ground in writing if the importer  so requests? (Article 1.2(a))  
 Subparagraph 2 (a) of Article 1 of Schedule E of the Act. 
 (iv) How has Article 1.2(b) been implemented?  Subparagraph 2 (a) of Article 1 of Schedule E of the Act provides for the use of the "test 
values" provided for in Article 1.2 (b). 
(b) Price of lost or damaged goods:  
Are there any special provisions or practical arrangements concerning the 
valuation of lost or damaged goods?  
No special provisions exist concerning the valuation of lost or damaged goods. G/VAL/N/2/LKA/1 
 
- 2 - 
 
  2. How has the provision of Article 4 to allow the importer an option to reverse the 
order of application of Article 5 and 6 been implemented?  
 Article 4 of Schedule E of the Act allows the option to reverse the order of application of 
Articles 5 and 6. 
3. How has Article 5.2 been implemented?  
 Article 5.2 is provided for in Subparagraph 2 of Article 5 of Schedule E of the Act 4. How has Article 6.2 been implemented?  
 It is incorporated in Subparagraph 2 of Article 6 
5. Questions concerning Article 7:  
(a) What provisions have been made for making value determinations pursuant to 
Article 7?  
 Article 7 of Schedule E provides for value determinations pursuant to Article 7. 
(b) What is the provision for informing the importer of the customs value determined 
under Article 7? 
Section 51 A of the Act sets out the valuation procedure that are to be followed.  
This includes the rights of importer to receive in writing the information. 
(c) Are the prohibitions found in Article 7.2 delineated?  
 Yes, paragraph 2 of Article 7 of Schedule E prescribes. 
6. How have the options found in Article 8. 2 been handled?  In the case of f.o.b 
application, are ex-factory prices also accepted?  
 Article 8.1 (e) of Schedule E includes all three elements of costs, freight and insurance. 
7. Where is the rate of exchange pu blished, as required by Article 9.1?  
 Section 17 of the Customs Ordinance had already provided a clear mechanism for 
conversion of currency in conformity with the provisions of Article 9 of the Agreement.  
The rates are published by the Director General in the Customs official website. 
8. What steps have been taken to ensure confidentiality, as required by Article 10?  
 The requirement of confidentiality is prescribed in Section 51 C of the said Act. 
9. Questions concerning Article 11:  
(a) What rights of appeal are open to the importer or any other person? 
 There are three tiers of appeal procedure.  The first one in terms of Section 51 A (6) to the 
Director General of Customs.  The second is  in terms of Customs (Amendment) Act No. 09 
of 2013 appeal to Tax Appeals Commission established under the provisions of the Tax 
Appeals Commission Act No. 23 of 2011.  The th ird one is Judicial review in terms of 
Article 140 of the Constitution of Sri Lanka. In addition the Appellants can recourse to The 
Minister of Finance. G/VAL/N/2/LKA/1 
 
- 3 - 
 
  (b) How is he to be informed of his right to further appeal?  
 Section 51a (4) and Section 51A (6) require officers to give explanation and the decision of 
appeal in writing. 
10.   Provide information on the public ation, as required by Article 12, of: 
(a) (i) The relevant national laws:  
 Relevant national laws are published in the Government Gazette.  It is used by government 
as the official way of communicating to the public. 
 (ii) The regulations concerning the application the Agreement:  
 Relevant regulations are also published in the Government Gazette. At times they are 
published in the national newspaper. 
(iii) The judicial decision and administ rative rulings of general application 
relating to the Agreement:  
 Judicial decisions are published in the Sri Lankan Law Reports. 
(iv) General or specific laws being referr ed to in the rules of implementation or 
application.  
 See answers to 10(a)(i) and 10(a)(ii) above. (b) Is the publication of further rules anticipated?  Which topics would they cover?  
 No further rules are anticipated at this stage. Administrative material will be issued as and 
when the need arises. 
11. Questions concerning Article 13:  
(a) How is the obligation of Article 13 (l ast sentence) being dealt with in the 
respective legislation?  
 Section 51A (7) provides the release of goods upon furnishing security pending 
determination of value. 
(b) Have additional explanations been laid down?  
 Yes, except in case where fraud is suspected. 12. Questions concerning Article 16:  
(a) Does the respective national legislat ion contain a provision requiring customs 
authorities to give an explanation in writing as to how the customs value was 
determined?  
 Yes, Section 51 A (4) requires. 
(b) Are there any further regulations co ncerning an above-mentioned request?  
 No. 13. How have the Interpretative Notes of the Agreement been included?  G/VAL/N/2/LKA/1 
 
- 4 - 
 
   In terms of Section 101 of the Customs Ordinance, the Minister of Finance made the 
regulations of Interpretative Notes by way of a gazette notification (No. 1335/25 of 10 April 2014) 
14. How have the provisions of the decision  on the treatment of Interest Charges in 
the Customs Value of Imported Goods been implemented?  
 By an administrative instruction. 15. For those countries applying paragraph 2 of the decision on the Valuation of 
Carrier Media bearing Software for Data  Processing Equipment, how have the 
provisions of this paragraph been implemented? 
 This decision is published as a regulation by a gazette notification (No. 1756/30 of 
4 May 2012) under the hand of Minister of Fi nance in terms of Section 101 of the Customs 
Ordinance. 
__________