G/VAL/W/286  
 
14 April 2016  
(16-2112)  Page: 1/3  
Committee on Customs Valuation  Original: English  
 
 
NOTIFICATION UNDER ARTICLE 22 OF THE  
AGREEMENT ON IMPLEMENTATI ON OF ARTICLE VII OF  
THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
NEPAL 
Questions from the United States to Nepal regarding G/VAL/N/1/NPL/1 
 
The following communication, dated 7 April 2016, is being circulated at the request of the delegation of the United States.  
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The United States would like to thank Nepal for its notification on its customs valuation legislation, 
contained in G/VAL/N/1/NPL/1.  Having reviewed this notification, we would like to seek the 
following additional information:  
Question 1 
As reflected in G/VAL/N/1/NPL/1, Chapter 1,  Section 2(b) of Nepal's Customs Act of 
2007 states, "transaction value means the tota l amount to be set by adding freight, 
insurance and other related costs incurred or incurable in the transportation of goods 
imported by an importer up to the border of Nepal to the price actually paid or payable, 
directly or indirectly, by the importer to the seller of such imported goods."   
This definition of transactio n value appears to account for adjustment under Article 8.2 
of the WTO Customs Valuation Agreement ("CVA ").  Pursuant to Article 1.1 of the CVA, 
transaction value is the price actually paid or payable for the goods when sold for export 
to the country of importation adjusted in a ccordance with provisions of Article 8.  
Can Nepal please indicate how it provides for adjustments under Articles 8.1, 8.3, 
and 008.4 of the CVA, and provide cites to the relevant legal measures? 
Question 2 Customs Act of 2007, Chapter 5, Section 13(1) provides, "The rules on customs 
valuation, annexes and interpretative notes set forth in the Agreement on 
Implementation of Article VII of the Genera l Agreement on Tariffs and Trade 1994 (CVA) 
shall be pursued in determining the cu stoms value of the imported goods." 
In light of Articles 22 and 14 of the CVA, co uld Nepal provide further information as to 
how it intends to implement the following provisions of the CVA (including the 
respective Interpretative Notes):  Articles  1.1(a)-(d), Article 1.2, Article 2.1(b), 
Article 2.2, Article 2.3, Article 3.1(b), Arti cle 3.2, Article 3.3, Article 5, Article 6, 
Articles 7.2 and 7.3, Articles 8.1, 8.3, an d 8.4, Article 10, Article 12, and Article 15? 
Question 3 Customs Act of 2007, Chapter 5, Section 13(4) states that "if… transaction value does 
not appear to include freight, insurance,  and other related expenses, the Customs G/VAL/W/286 
 
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  Officer shall determine the transaction value by  adding an estimated amount likely to be 
incurred for the same." 
Could Nepal please explain how the Customs Officer will determine an estimated amount 
for freight, insurance and other related expens es, and identity the source of information 
that would be the basis for that determination? 
Question 4 Customs Act of 2007, Chapter 5, Section 13(8) provides for the definition of identical 
goods.   
Could Nepal clarify if minor differences in appearance would preclude goods from being 
regarded as identical? 
Question 5 
Customs Act of 2007, Chapter 5, Section 13(15) and Customs Rules 2007, Chapter 6, 
Section 29 provide for the Customs Officer's ability to purchase the imported goods the 
Customs Officer considers to be undervalued.   
Could Nepal please explain fu rther the circumstances under which such purchases would 
be approved, and how such purchases would be conducted, including the role of the 
Fund identified under Section 29?  Please also explain the basis for providing for such 
purchases, as opposed to allowing the goods to be released upon payment of amounts 
owed.  Could Nepal also please provide further information as to how it will ensure this provision does not create a conflict of intere st on the part of the Customs officer doing 
his official duty?    
Question 6 
Customs Act of 2007, Chapter 12, Section 62(2), on judicial appeal, provides that a 
person who files an appeal "may make such appeal by making payment of or furnishing 
a deposit of duty and amount of  fine and penalty chargeable pursuant to that decision or 
order against which such appeal is to be  made, to or with the concerned Customs 
Office." 
Could Nepal please explain what appears to be a requirement that a person filing an 
appeal pay for duties and fines and penalt ies, in light of Article 11.2 of the CVA? 
Please also indicate how Nepal has implemen ted Article 11.3 of the CVA, which provides 
that notice of a decision on appeal shall be  given to the appellant, that reasons for such 
a decision shall be provided in  writing, and that the appellant shall be informed of any 
rights of further appeal.  Please provid e cites to the relevant legal measures. 
Question 7 
Customs Rules 2007, Chapter 5, Section 27(1) stat es that "for purpose of sub-rule (2) of 
the rule (34) of the Act, in order to de termine whether the transaction value of the 
goods as declared by the importer is rea listic or not, the value may be determined 
through the application of all or any methods as stipulated in Section 13 of the Act."   
Please explain how Nepal has implemented Ar ticle 7.2 of the CVA, which provides that 
customs value shall not be determined on ce rtain bases.  Please indicate where in 
Nepal's law this article is implemented.  
Question 8 
Customs Rules 2007, Chapter 13, Section 54, pr ovides for the establishment of a special 
Valuation Committee to determine the value of  vehicles and means of transportation 
deposited in the customs office. G/VAL/W/286 
 
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  Can Nepal confirm that the valuation of vehicles by the Valuation Committee is 
determined pursuant to the methods of valuat ion specified in the CVA and in accordance 
with Study 1.1 (Treatment of Used Motor Vehicles)?    
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