G/VAL/W/355  
 
30 June 2020  
(20-4543) Page: 1/3 
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  
DOMINICAN REPUBLIC  
Questions from the United States to the Dominican Republic regarding document s 
G/VAL/N/1/DOM/2 and G/VAL/N/2/DOM/1  
The following submission, dated 24 June 2020, is being circulated at the request of the delegation 
of the United States.  
 
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The United States would like to thank the Dominican Republic for its notification  of its customs 
valuation legislation contained in document G/VAL/N/1/DOM/2 as well as its responses to the 
Checklist of Issues contained in document G/VAL/N/2/DOM/1.   
The United States requests responses to the following questions on the notified measure , Decree 
No. 36 -11 of January 2011:  
Question 1  
Articles 2 and 3: Where are the "general rules issued by the Directorate -General of Customs " 
published?  
Question 2  
1. Article 4 : Paragraph 13 defines "reference value " as "an indicator established by the customs 
authorities to measure the risk in customs valuation controls. " How does customs choose this 
indicator? What  sources does customs reference when establishing this indicator? What does it mean 
to "measure the risk in customs valuation controls? " 
2. The definition of "generally accepted accounting principles " in Paragraph 14 does not appear 
to implement the definition under the General Note of the Interpretative Notes of the Customs 
Valuation Agreement1 (CVA). Please explain this apparent discrepan cy. What is the source of the 
definition provided in Paragraph 14?   
3. Paragraph 21 defines "related sales " as "a sale involving a condition or consideration relating 
to another commercial transaction not subject to customs valuation at the time of the im port 
declaration. "   
a. Please further explain this definition. How does it interact with the term "related " as 
defined in the CVA with respect to related persons?   
 
1 The Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994.  G/VAL/W/355  
 
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  b. The term "related sales " does not appear to be used in the notified measure. Please 
confirm if this understanding is accurate and  clarify the purpose of including this defined 
term.   
Question 3  
Article 5 : Is the customs value declaration form required by Article 5 available on the internet? If  so, 
please provide the internet address (web li nk) for the form.   
Question 4  
Article 7 : Article 7(d) provides that customs may reject transaction value "where part of the proceeds 
of a subsequent resale by the buyer accrues to the seller. " Would transaction value be rejected if an 
adjustment could be made as provided for in Article 8 of the CVA based on objective and quantifiable 
data?  
Question 5  
Article 9 : Article 9(b) indicates that, "the price expressed in the commercial invoice may be taken 
as the valuation basis, provided that…[i]t is supported by original documents, with no smudges, 
corrections or signs of alteration. "   
a. Why are original supporting documents necessary in order for the invoice price to be 
accepted as the valuation b asis?   
b. Can an importer submit support for a commercial invoice electronically?   
c. Why does the presence of smudges or corrections preclude the use of a commercial 
invoice?   
Question 6  
1. Article 10 : In accordance with Article 1.2(b) of the CVA, does  the Dominican Republic also 
take into account under Article 10, paragraph II, the differences in commercial levels, quantity levels, 
elements enumerated in Article 8 of the WTO CVA, and costs incurred by the seller in sales in which 
the seller and the buy er are not related that are not incurred by the seller in sales in which the seller 
and the buyer are related?   
2. Further, in accordance with the Interpretative Note to Article 1, paragraph 2(b), does the 
Dominican  Republic take into account the season i n which the goods are imported, and, whether the 
difference in values is commercially significant?  
Question 7  
1. Article 12 : The paragraph under Article 12 provides that customs will calculate the value of 
the elements of CVA Article 8 "in accordance with the fees usually applied for those services. " Does 
this provision apply with respect to both CVA Article 8.1 and 8.2? If not, to which paragraph of CVA 
Article 8 does it apply?   
2. How are the fees calculated? How does customs determine the fees usually a pplied for varied 
services across varied industries?   
Question 8  
Article 13 : What is the basis in the CVA for the formulas found in Article 13?   
Question 9  
Article 20 : Please explain how Article 20(d) is applied, in light of CVA Article 1.2(a), which provides, 
"in determining whether the transaction value is acceptable …the fact that the buyer and the seller 
are related…shall not in itself be grounds for regarding the tr ansaction value as unacceptable. " 
The Interpretative Note to Article 1, Paragraph 2 further provides that, "[i]t is not intended that G/VAL/W/355  
 
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  there should be an examination of the circumstances in all cases where the buyer and the seller are 
related. Such examinat ion will only be required where there are doubts about the acceptability of 
the price. " Further, we would like to remind the Dominican Republic of Advisory Opinion 2.1 in which 
the Technical Committee on Customs Valuation determined that the mere fact that  a price is lower 
than prevailing market prices for identical goods should not cause it to be rejected for purposes of 
Article 17 of the CVA.    
Question 10  
Article 21 : The procedure for applying the reasonable doubt mechanism in Article 21 provides 
importers with as little as five business days to respond to a request from customs for documentation 
and evidence to support its declared value. Does the Dominican Republic c onsider five days a 
sufficient time for importers to gather the information customs needs and to present it in a format 
most useful for customs? May customs provide a longer time period?  
Question 11  
Article 27 : When customs value cannot be determined throu gh the flexible application, in accordance 
with CVA Article 7, of the valuation methodologies delineated in the CVA, Article 27 provides that, 
"a value can, as a last resort, be determined by applying other reasonable methods involving the 
use of specializ ed publications on goods prices on the international market. "   
a. What are "specialized publications on goods prices "? Where can they be found? Are they 
published? What are the sources for those publications?  
b.  Why and in what manner would "specialized publications " be used to determine customs 
value? Can the Dominican Republic explain how this "last resort " is consistent with CVA 
Article  7.2?   
Question 12  
Article 29 : Under Article 29, confidential information may be disclosed to "ensure transparency in  
the tax system, in connection with audits of value carried out by this Institution, which are firm and 
irrevocable. " Please explain how confidential customs valuation information is used to ensure 
transparency in the tax system.   
Question 13  
Article 30 : Article 30 allows a n importer to withdraw goods when there is a delay in determining the 
customs value by providing a guarantee covering "the difference in the customs duties and taxes to 
which the goods may be subject. " It is unclear to what value the customs duties and taxes are 
compared in order to determine the "difference. " Please provide an explanation of the comparison 
required under Article 30 to calculate the "difference " that must be covered by the guarantee.   
Question 14  
Article 31 : Article 31 establishes the right to appeal customs valuation determinations made by the 
customs administration, but paragraph III provides, "nothing in this article shall prevent full payment 
being required for fines imposed prior t o an appeal. " Please explain this paragraph, including the 
meaning of "fines imposed prior to an appeal. "  
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