RESTRICTED  
  
G/VAL/M/67  
 
2 April 2019  
(19-2084) Page: 1/25 
Committee on Customs Valuation    
 
 
MINUTES OF THE MEETI NG OF 19 NOVEMBER  2018  
CHAIRPERSON: MR YUIC HIRO OKUMURA (JAPAN)  
The agenda proposed for the meeting, circulated in  document  WTO/AIR/VAL/ 8, was adopted with 
one change : it was agreed to take up a genda item agenda item C "Information on the Application 
of Decisions of the Committee on Customs Valuation" after agenda item G "Egypt and status of 
notification of PSI – Request by the United States ".  
 
1   REPOR T OF THE WORK OF THE  TECHNICAL COMMITTEE  ON CUSTOMS VALUATIO N ..... 2 
2   INFORMATION ON I MPLEMENTATION AND AD MINISTRATION OF THE AGREEMENT  .... 2 
2.1   Notification of national legislation  ................................ ................................ ...................  2 
A. Kingdom of Bahrain  ................................ ................................ ................................ ...... 3 
B. Belize  ................................ ................................ ................................ ..........................  3 
C. China  ................................ ................................ ................................ ..........................  3 
D. Guinea  ................................ ................................ ................................ ........................  4 
E. Honduras  ................................ ................................ ................................ .....................  4 
F. Kazakhstan  ................................ ................................ ................................ ..................  4 
G. Malawi  ................................ ................................ ................................ ........................  5 
H. Nepal  ................................ ................................ ................................ ..........................  5 
I. Nigeria  ................................ ................................ ................................ ........................  5 
J. Russian Federation  ................................ ................................ ................................ ....... 5 
K. Rwanda  ................................ ................................ ................................ .......................  6 
L. Solomon Islands  ................................ ................................ ................................ ...........  6 
M. Sri Lanka  ................................ ................................ ................................ .....................  6 
N. The Gambia  ................................ ................................ ................................ .................  7 
3   TECHNICAL ASSIST ANCE  ................................ ................................ ..............................  8 
3.1   Proposed Experience -Sharing Workshop to take place in Spring  2019 – update by the 
Chairperson ................................ ................................ ................................ .........................  8 
3.2   Linkage between the Customs Valuation Agreement and the Trade Facilitation Agreement – 
report by the Secretariat  ................................ ................................ ................................ ....... 9 
3.3   Information on Technical Assistance  ................................ ................................ ...............  9 
3.4   Article  20.3 – Technical Assistance and Trade -Related Technical Assistance  .........................  9 
4   SPECIFIC TRADE C ONCERNS  ................................ ................................ ......................  10 
4.1   Armenia's reference price system in connection with the valuation of goods –  
request by The United States  ................................ ................................ ..............................  10 
4.2   Pakistan's det ermination of customs values of paper – request by Thailand  .......................  10 G/VAL/M/67  
 
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  4.3   Oman's customs valuation of cigarettes and introduction of the sel ective tax –  
request by Switzerland  ................................ ................................ ................................ ....... 11 
4.4   Tajikistan – issues related to customs valuation – request by Ukraine  ...............................  11 
5   PRESHIPMENT INSP ECTION  ................................ ................................ .......................  11 
5.1   Status of notifications by Members  ................................ ................................ ...............  12 
5.2   Questions and Responses by the United States and Indonesia  ................................ ..........  12 
5.3   Information on PSI  programmes  ................................ ................................ ...................  12 
6   EGYPT'S STATUS O F NOTIFICATION OF PS I – REQUEST BY THE U NITED STATES ....... 12 
7   INFORMATION ON T HE APPLICATION OF DE CISIONS OF THE COMMI TTEE ON 
CUSTOMS VALUATION  ................................ ................................ ................................ ..... 12 
7.1   The status of notifications under the Committee's Decisions  ................................ .............  13 
7.2   Uruguay's pr oposal to update the carrier media decision  ................................ .................  13 
8   ANNUAL REVIEW OF  THE IMPLEMENTATION AND OPERATION OF THE  CUSTOMS 
VALUATION AGREEMENT  ................................ ................................ ................................ . 13 
9   ANNUAL REPORT OF  THE COMMITTEE ON CU STOMS VALUATION TO  
THE COUNCIL FOR TRAD E IN GOODS  ................................ ................................ ..............  14 
10   OTHER BUSINESS  ................................ ................................ ................................ ..... 14 
10.1   Date of next meeting  ................................ ................................ ................................  14 
ANNEX I  ................................ ................................ ................................ ..........................  15 
ANNEX II  ................................ ................................ ................................ ........................  17 
 
_______________  
 
 
1  REPORT OF THE WORK O F THE TECHNICAL COMM ITTEE ON CUSTOMS VAL UATION  
1.1.  The representative of the World Customs Organization  (WCO), Mr  Luximan Babajee , reported 
on the 47th session of the WCO Technical Committee on Customs Valuation (TCCV), which had taken 
place from 22 to 26  October  2018. His report is contained in Annex  I to this document . 
1.2.  The Chairperson  thanked Mr  Badajee for his report and expressed the Committee's 
appreciation for the continued valuable work of the TCCV . 
1.3.  The Committee took note  of the report.  
2  INFORMATION ON IMPLE MENTATION AND ADMINI STRATION OF THE AGRE EMENT  
2.1  Notification of national legislation  
2.1.  The Chairperson  recalled that,  pursuant to Article  22 of the Agreement and the Decision on  
"Notification and circulation of national legislation in accordance with Articl e 22 of the Agreement", 
Members must submit the complete texts of their national legislation on customs valuation in one of 
the three  official WTO  languages. They should also inform the Committee of any changes relevant 
to this Agreement in their laws and regulations , including any changes to  the administration of their 
laws and regulations. The notification procedures had been a dopted by the Committee at its meeting 
of 12  May 1995 and were contained in section  B.2 of document  G/VAL/5. As agreed at the 
Committee's meeting of 25  October  2012, the Se cretariat had issued a document  summariz ing the 
current status of notifications ; the latest version of this document had been circulated as 
document  G/VAL/ W/232/Rev. 9. As agreed at the Committee 's meeting  of 7 October  2015, this 
document ha d been revised  to include references to documents contai ning the questions and 
responses regarding notifications.  G/VAL/M/67  
 
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  2.2.  The Chairperson  also recalled that  the situation regarding the notification of  Chinese Taipei 's 
legislation remain ed unchanged.  
2.3.  The Chairperson  referred to the lack of progress made by the Committee  in its examination of 
national legislations , in most cases  due to a number of outstanding responses, which he listed as 
follows: from Nigeria,  to questions raised in 2009; from Rwanda,  to questions raised in 2012; from 
the Gambia,  to questions raised in 2 014; from Belize, Guinea, and Honduras,  to questions raised in 
2015; from the Russian Federation,  to questions raised in 2016; and, from Kazakhstan, Malawi, 
Nepal,  and the Solomon Islands,  to questions raised in 2017.  The Chairperson had written to these 
delegations in July  to inform them of his availability to provide any a ssistance that may be helpful.  
2.4.  However, there had been no changes in the current situation which meant that once again, the 
Committee would fail to make progress on this item.  
A. Kingdom of Bahrain  
2.5.  The Chairperson  recalled that it had been agreed at the Committee's previous meeting to revert 
to the examination of Bahrain's notification of national legislation and re sponses to the checklist of 
issues that had been circulated in documents  G/VAL/ N/1/BHR/ 1, G/VAL/ N/1/BHR/ 2, and 
G/VAL/N/ 2/BHR/ 1. The latest questions raised by the United States had been circulated  in 
document  G/VAL/ W/223  and Bahrain had provided its respon ses in document  G/VAL/W/308. The  US 
had raised additional questions in document  G/VAL/W/310.  
2.6.  The representative of the United States  said that her delegation looked forward to receiving 
written responses from Bahrain.  
2.7.  The representative of Canada  said that her delegation was looking forward to receiving 
responses to the questions that they had raised bilaterally with Bahrain. These questions would be 
submitted to the Committee in writing.  
2.8.  The representative of the Kingdom of Bahrain  said that the questions were still being reviewed 
in Capital.  
2.9.  The Committee took note  of the statement s made and agreed  to revert to Bahrain's notification 
at its next meeting.  
B. Belize  
2.10.   The Chairperson  recalled that it had been agreed at the Committee's previous  meetin g to 
revert  to the examination of Belize's notification of national legislation and responses to the checklist 
of issues , which had been circulated in documents  G/VAL/N/1/BLZ/1 a nd G/VAL/N/2/BLZ/1 . 
The Committee was awaiting responses from Belize to the la test questions raised by the 
United  States in documents  G/VAL/ W/188 , G/VAL/ W/272 , and G/VAL/W/272/Corr.1.  
2.11.   The representative of the United States  said that her delegation continued to look forward to 
receiving a written response to their questions, which dated from September  2015.  
2.12.   The Committee took note  of the statement made and agreed  to revert to Belize's notification  
at its next meeting.  
C. China  
2.13.   The Chairperson  recalled that it had been agreed at the Committee's previous  meeting to 
revert to the examination of China's notification of its amended national legislation, which had been 
circulated in document  C/VAL/1/CHN/6. Questions had been raised by t he United States and had 
been circulated in document  G/VAL/W/315 . 
2.14.   The representative of the United States  said that her delegation looked forward to receiving 
China's written responses to their questions.  G/VAL/M/67  
 
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  2.15.   The representative of Canada  requested that China provide a response to the questions that 
Canada had raised bilaterally, and which her del egation would notify to the Committee. 
Her authorities supported the questions raised by the US, particularly Question  3 on the 
circumstances surrounding a sale.  
2.16.   The representative of the European Union  thanked China for its notification  and said that it 
would be submitting its questions in writing to China in due course. The EU also supported the 
questions raised by the US.  
2.17.   The representative of China  said that China's responses to the US  questions were being 
prepared. He requested Canad a and the EU to submit their questions in writing.  
2.18.   The Committee took note  of the statement s made and agreed  to revert to China's notification  
at its next meeting.  
D. Guinea  
2.19.   The Chairperson  recalled that the Committee had agreed at its previous meeting to revert to 
its examination of Guinea's notification of national legislation , which had been circulated in 
document  G/VAL/ N/1/GIN/1.  Questions raised by the United States had been circulated in 
document  G/VAL/W/266.  
2.20.   The representative  of the United States  said that her delegation continued to look forward to 
receiving a written response to their questions, which dated from September  2015.  
2.21.   The Committee took note  of the statement made and agreed  to revert to Guinea's notification  
at its next meeting.  
E. Honduras  
2.22.   The Chairperson  recalled that the Committee had agreed at its previous meeting to revert to 
its examination of Honduras' notification of national legislation and its responses to the checklist of 
issues , which had been  circula ted in documents  G/VAL/ N/1/HND/1 and G/VAL/ N/2/HND/1 . 
The United States had submitted its questions in document  G/VAL/W/268.  
2.23.   The representative of the United States  said that her delegation looked forward to receiving 
a written response to their questions,  which dated from September  2015.  
2.24.   The representative of Honduras  said that the questions were being examined in Capital.  
2.25.   The Committee took note  of the statement s made and agreed  to revert to Honduras' 
notification  at its next meeting.  
F. Kazakhstan  
2.26.   The Chairperson  drew the Committee's attention to Kazakhstan 's notification of its national 
legislation, which had been circulated in document  G/VAL/N/1/KAZ/1. Questions had been raised by 
the United States and circulated in document  G/VAL/W/302 . 
2.27.   The representative of the United States  said that her delegation looked forward to receiving 
Kazakhstan's written responses to their questions. Kazakhstan was a recently -acceded Member to 
the WTO and the US had a number of outstanding questions for which  they required replies.  
2.28.   The representative of the European Union  said that the EU supported the US  position. The EU 
had raised several questions at the last Committee meeting, which they had also submitted 
bilaterally to the Kazakh delegation.  
2.29.   The Committe e took note  of the statements made and agreed  to revert to Kazakhstan's  
notification at its next meeting.  G/VAL/M/67  
 
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  G. Malawi  
2.30.   The Chairperson  recalled that the Committee had agreed at its previous meeting to revert to 
its examination of the national legislation of Malawi, which ha d been circulated in 
document  G/VAL/ N/1/MWI/2 . Subsequent to that meeting, Malawi's notification of its responses to 
the checklist of issues had been circulated in document  G/VAL/N/2/MWI/1. The United States had 
raised additional questio ns in document  G/VAL/W/303.  
2.31.   The representative of the United States  said that her delegation looked forward to receiving 
a written response to their questions, which dated from 2015.  
2.32.   The representative of Malawi  said that the questions were being reviewed in Capital and that 
the responses would be provided in writing.  
2.33.   The Committee took note  of the statement s made and agreed  to revert to Malawi's notification  
at its next meeting.  
H. Nepal  
2.34.   The Chairperson  recalled that the Committee had agreed at its previou s meeting to revert to 
its examination of  Nepal's notification of its national legislation, which had been circulated in 
document  G/VAL/N/1/NPL/1. The United States had raised questions, which had been circulated in 
document  G/VAL/W/286, to which Nepal had  provided its responses in document  G/VAL/W/300. 
The United States had raised follow -up questions in document  G/VAL/W/301.  
2.35.   The representative of the United States  thanked Nepal for its written responses  and said that 
her delegation also looked forward to r eceiving written responses to their follow -up questions.  
2.36.   The representative of Nepal  stated that the responses would be forthcoming.  
2.37.   The Committee took note  of the statements made and agreed  to revert to Nepal's notification  
at its next meeting.  
I. Nigeria  
2.38.   The Chairperson  recalled that the Committee had agreed at its previous  meeting to revert to 
its examination of Nigeria's notification of national legislation and responses to the checklist of 
issues , which had been circulated in d ocuments  G/VAL/N/1/NGA/1 and G/VAL/N/2/NGA/1. 
The United  States and Canada had raised questions,  which had been circulated in 
documents  G/VAL/W/175 and G/VAL/W/176, respectively.  
2.39.   The representative  of Canada  said that her delegation supported the introduct ory comments 
made by the Chairperson urging Members to provide written responses to outstanding questions. 
She urged Nigeria to provide a written response to the question raised by Canada nine  years 
previously.  
2.40.   The representative of the European Union  supported the questions raised by the US and 
Canada, as well as the Chairperson's introductory remarks. The EU would like to see the replies after 
such a long delay.  
2.41.   The representative of the United States  said that  her delegation continued to await a written 
response to their questions, which dated from 2009 . 
2.42.   The Committee took note  of the statements made and agreed  to revert to Nigeria's notification  
at its next meeting.  
J. Russian Federation  
2.43.   The Chairperson  recalled that the Committee had agreed at its previous meeting to revert to 
its examination of the Russian Federation's notification of legislation , which had been circulated in G/VAL/M/67  
 
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  the series of documents  G/VAL/N/1/RUS/1  and G/VAL/N/1/RUS/1/Add.1,  G/VAL/N/1/RUS/2  and 
G/VAL/N/1/RUS/2 /Add.1,  and G/VAL/N/1/RUS/3  and G/VAL/N/1/RUS/3 /Add.1. 
The Russian  Federation's response s to the checklist of issues  had been circulated in 
document  G/VAL/N/2/RUS/1 . Questions raised by the United States had been circula ted in 
document  G/VAL/W/287.  
2.44.   The representative of the European Union  said that his delegation looked forward to receiving 
a response to the question that they had raised at the Committee's previous meeting, in April  2018.  
2.45.   The representative of the United States  said that her delegation looked forward to receiving 
a written response to their questions, which dated from April  2016.  
2.46.   The representative of the Russian Federation  said that the questions were still being examined 
in Capital. Due to changes in the  respective legislation, the Russian Federation was holding internal 
consultations in order to provide updates to the Committee.  
2.47.   The Committee took note  of the statement s made and agreed  to revert to the Russian 
Federation's notification  at its next meeting.  
K. Rwanda  
2.48.   The Chairperson  recalled that the Committee had agreed at its previous meeting to revert to 
its examination of Rwanda's notification of its national legislation and its responses to the checklist 
of issues , which had been  circulate d in documents  G/VAL/ N/1/RWA/1 and G/VAL/N/2/RWA/1. 
The United States had raised questions in document  G/VAL/W/215.  
2.49.   The representative of the United States  said that her delegation remained interested in 
receiving in a written response to their questions, which dated from June  2012. 
2.50.   The Committee took note  of the statement made and agreed  to revert to Rwanda's notification  
at its next meeting.  
L. Solomon Islands  
2.51.   The Chairperson  recalled that the Committee had agreed at its previous meeting to revert to 
its examination of  the Solomon Islands' national legislation, which had been circulated in 
document  G/VAL/N/1/SLB/1. The United States had raised questions, which had been circulated in 
document  G/VAL/W/298.  
2.52.   The representative of  the United State s said that her delegation remained interested in 
receiving in a written response to their questions, which dated from May  2017.  
2.53.   The Committee took note  of the statement made and agreed  to revert to the Solomon Islands' 
notification  at its next meeting.  
M. Sri Lanka  
2.54.   The Chairperson  recalled that the Committee had agreed at its previous meeting to revert to 
its examination of Sri Lanka's notification of its national legislation and its responses to the checklist 
of issues , which  had been circulated in docume nts G/VAL/N/1/LKA/1 , G/VAL/N/1/LKA/1 /Corr.1, and 
G/VAL/N/2/LKA/1.  The United States had raised questions in document  G/VAL/W/269 and Sri Lanka 
had provided its responses in document  G/VAL/W/291. The United States had raised additional 
questions in document  G/VAL/W/297, to which Sri Lanka had provided its written responses in 
document  G/VAL/W/304. The United States had raised further questions in document  G/VAL/W/313.  
2.55.   The representative of Sri Lanka  thanked the United States for its ongoing interest in 
Sri Lanka's customs valuation legislation. The latest questions had been received one  week prior to 
the Committee meeting and a written response would be provided in due course. Nevertheless, her 
deleg ation would provide a number of preliminary replies.  G/VAL/M/67  
 
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  2.56.   Regarding the question seeking c larification on subsection  (1)(B) of the Gazette Notification 
No. 1971/10 , the meaning of "not coming under the category  (A)", referred to vehicles that were 
regarded as " used" at the time of importation. It d id not include new motor vehicles that were 
imported into Sri Lanka but ha d not been subject to a sale. All brand -new motor vehicles f ell under 
subsection  (1)(A) . 
2.57.   Regarding the question on the relevant article of the C ustoms Valuation Agreement , the types 
of used vehicles under subsection  (1)(B) of the Gazette Notification No.  1971/10 were mostly 
vehicles that were imported pursuant to a purchase without intervening use. When the requirements 
and conditions of Article  1 of the Customs Valuation Agreement were not fulfilled, then the goods 
had to be valued with reference to the conditions prevail ing at the time of importation. In order to 
facilitate trade, the price was adjusted to take account of depreciation to have a s tandard method 
of valuation.  When the provision of Article  1 could no t be applied, the application of Article s 2 to 6 
also bec ame inappropriate. In all such cases, the customs value of used vehicles ha d to be 
determined under the provisions of Article  7 of the Agreement . 
2.58.   Regarding the question concerning S tudy 1.1 and its Supplement of the WCO's TCCV, 
Sri Lanka noted that p aragraph  19 of Study 1.1 cover ed the other category of used vehicles, namely  
vehicles imported after additional use since purchase. The study provided a table exemplifying the 
procedures that could be applied for making adjustments in the case of depreciation, either based 
on the time or use since the date of purchase.  Therefore, the method specified in Section  (1)(B) of 
the Gazette Notification No.  1971/10 was consistent with th at case study and with using reasonable 
means consistent with the Agreement.  
2.59.   The representative of the United States  thanked Sri Lanka for its oral respons e as well as for 
circulating Gazette No.  1971/10. The United States would revert to this issue once they had reviewed 
the written responses.  
2.60.   The Committee took note  of the statement s made and agreed  to revert to Sri Lanka's 
notification  at its next meeting . 
N. The Gambia  
2.61.   The Chairperson  recalled that the Committee had agreed at its previous meeting to revert to 
its examination of the Gambia's notification of national legislation , which had been circulated in 
documents  G/VAL/N/1/GMB/1 and G/VAL/N/4/GMB/1.  The United States had submitted questions 
to the Gambia in document  G/VAL/W/245.  
2.62.   The representative of the United States  said that her delegation  continued to look forward to 
receiv ing replies to its questions, which dated from May 2014.  
2.63.   The Committee took note  of the statement made and agreed  to revert to the Gambia's 
notification  at its next meeting.  
2.64.   The Chairperson  thanked Members that had notified their national legislation and responses 
to the checklist of issues. The notifi cation and examination of national legislation were important 
aspects of the Committee's work. To date, 99  Members had notified their national legislation on 
customs valuation, including 16  Members that had submitted communications indicating that their 
legislation notified under the Tokyo Round Customs Valuation Agreement remained valid under the 
WTO Customs Valuation Agreement. In addition, 68  Members had provided responses to the 
checklist of issues. There were 36  Members that had not yet made either of these two notifications 
(see document  G/VAL/W/232/Rev.9).  
2.65.   The Chairperson  urged Members to expedite their responses to questions raised by Members 
and informed the Committee that he was available for consultations with interested Members on 
possible actions with a view to making progress on th is issue.  
2.66.   The Committee took note  of the information  and of the statements made . G/VAL/M/67  
 
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  3  TECHNICAL ASSISTANCE  
3.1  Proposed Experience -Sharing Workshop to take place in Spring  2019 – update b y the 
Chairperson  
3.1.  The Chairperson  recalled that , at its meeting of  23 April 2018, the delegate s of Senegal and 
Togo had informed the Committee that their authorities  continued to f ace a number of difficulties 
with regard to customs valuation , and that technical assistance could help to overcome those 
difficulties. They also said that technical assistance was all the more  important in view of 
implementation of the Trade Facilitation Agreement  (TFA) . Members had responded in a supportive 
manner to the intervention s and the Committee had agreed to continue its discussions. Following 
two rounds of consultations and two inform al meetings , held in July and September , the Committee 
had agreed on two  issues: (1)  there was an  importan t linkage between the CVA and the TFA  that 
should be further  explored; and (2)  the Committee would hold an experience -sharing workshop on 
implementati on of the CVA . Accordingly, the Committee agreed to hold a workshop on 
14 February  2019, immediately following the next meeting of the Committee on Trade Facilitation 
which was scheduled to take place on 12 and 13 February.  
3.2.  The representative of Senegal  said that participants should include Capital -based experts from  
countries that had highlighted their difficulties in implementing the CVA, as well as experts from the 
West African regional organizations UEMOA (West African Economic and Monetary Union) and 
ECOWAS ( Economic Community of West African States ). 
3.3.  The representative of the European Union  confirmed the EU's participation in the workshop. 
The EU believed that the list of implementation challenges that had been identified by least 
developed country Mem bers related broadly to general administrative capacity more than to specific 
customs valuation issues. Consequently, it would be helpful to make the connection between the 
CVA and the TFA because some TFA  provisions could address the CVA  challenges highli ghted by the 
LDCs. The EU and its member States were already providing considerable assistance to those 
countries that had identified implementation challenges; for this reason, the Secretariat should 
ensure that the workshop would not overlap with ongoing  technical assistance, and that it would 
rather add value by building upon existing synergies.  
3.4.  The representative of Togo said that Togo looked forward to participating in the workshop. 
He also endorsed Senegal's proposals regarding participants.  
3.5.  The representative of Japan  expressed her delegation's support for the workshop , which  they 
considered  would allow the Committee to clarify the LDCs ' needs and identify possible solutions. 
They also agreed that the Committee should avoid dupl ication of any work already being carried out 
by other international organizations. As regards the programme,  it would be helpful to consider why 
LDCs were still having implementation problems  in light of the technical assistance that had already 
been prov ided to them. T his would be a good bas is for considering future means to address all the  
LDCs' implementation challenges.  
3.6.  The representative of Canada  expressed her delegation's support for the workshop. 
They looked forward to providing their input on the proposed programme . 
3.7.  The representative of the United States  expressed her delegation's interest in participating in 
the workshop. It would  be important to understand the effect of trade facilitation on customs 
valuation. Considering that the Committee was still awaiting 36  outstanding notifications of 
legislation and checklists of issues, the US would like to understand why this was still the case 
25 years after the entry into force of the CVA. In that context, the US supported the participation of 
the two  regional organizations in order to gain a better insight into the issue.  
3.8.  The Chairperson  informed the Committee that he would invite Members to a working session 
on the design, agenda , and speakers for the information session.  
3.9.  The Committee took note  of the information and of the statements made . G/VAL/M/67  
 
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  3.2  Linkage between the Customs Valuation Agreement  and the Trade Facilitation 
Agreement  – report by the Secretariat  
3.10.   The Chairperson  drew the Committee's attention to his presentation to the Committee on 
Trade Facilitation at its meeting of 9  October  2018 on the significance of the CVA to the 
implementation of the TFA and of the benefits of building on the synergy between both agreemen ts. 
The presentation is contained in Annex  II of this document.  
3.11.   The representative of Hong Kong, China  expressed her delegation's support for exploring the 
synergy between the CVA and the TFA , believing that it  could lead to a more effective use of 
resourc es and a better representation of both agreements . The TFA provisions relating to t echnical 
assistance , for example, could provide for assistance on customs valuation that would be beneficial 
to both agreements. In addition, the National Trade Facilitation  Committees mandated under the 
TFA could be used as a mechanism to coordinate the domestic implementation of the CVA as well 
as the TFA.  
3.12.   The Committee took note  of the information  and of the statement made . 
3.3  Information on Technical Assistance  
3.13.  The Chairpers on recalled that , at its meeting of 12  May 1995, and as reflected in section  B.4 of 
document  G/VAL/5, the Committee on Customs Valuation had agreed that greater transparency with 
regard to  technical assistance activities would be ensured if information documents prepared for the 
WCO's Technical Committee  on Customs Valuation were also made available as WTO  documents. 
Accordingly, document  G/VAL/8/Add.37 contain ed the most recent information  compiled by the TCCV  
concerning technical assistance activities carried out by WCO Members  and the WCO Secretariat.  
3.14.  The representative of the World Customs Organization  provided an update on the technical 
assistance activities undertaken by WCO  Members an d the Secretariat. The US had undertaken 
technical assistance to the Kingdom of Saudi Arabia during the week of 15  May 2018, and Japan had 
undertaken two  technical assistance activities on post -clearance audit , to Viet  Nam (6 -12 May 2018) 
and to Bhutan (2 -10 June 2018). 
3.15.  The WCO  Secretariat had carried out the following  technical assistance  and capacity -building 
activities: Diagnostic Mission on the Infrastructure for Customs Valuation and Tariff Classification Work, 
Côte d'Ivoire ( 9-13 April 2018); Accredit ation Workshop for Customs Valuation Experts of the Europe 
region in Azerbaijan (27  May-1 June 2018); National Training Workshop on Customs Valuation and 
Transfer Pricing, for the benefit of Senegal Customs (23 -27 July 2018); National Workshop on Customs 
Valuation, Sierra Leone (20 -24 August  2018); Diagnostic Mission on the Infrastructure for Customs 
Valuation and Tariff Classification Work, Liberia (27 -31 August  2018); Training of Trainers on Customs 
Valuation and Tariff Classification for French -speaking countries of the East ern and Southern Africa 
region, Mauritius (1 -5 October  2018); and National Workshop on Customs Valuation, Bahamas 
(1-5 October  2018).  
3.16.  One purpose of a diagnostic mission was to examin e the existing customs infrastructure to 
evaluate whether it was sufficient ly robust  and had the necessary bodies to properly implement the 
CVA (for example, trained customs officials, an independent appeal body, and a post -clearance audit 
unit). It also identified if the country's national legisla tion was in line with the CVA and if Customs had 
an appropriate relationship with the private sector.  
3.17.  The Committee  took note  of the information.  
3.4  Article  20.3 – Technical Assistance and Trade -Related Technical Assistance  
3.18.   The Chairperson  recalled that the Committee's work programme on technical assistance for 
capacity -building regarding the implementation and administration of the CVA had now been 
incorporated into the WTO's  overall technical assistance programme. The WTO was currently 
implementing the 2018 -2019 Biennial TA  Plan as contained  in document  WT/COMTD/W/227/Rev.1.  
3.19.   A member of the Secretariat (Ms  Dolores Halloran) presented a report on technical assistance 
activity for the period following the Committee's previous meeting, in Apr il 2018. The majority of G/VAL/M/67  
 
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  the technical assistance on the Customs Valuation Agreement had been undertaken in WTO  Regional 
Trade Policy Courses. The Secretariat had not received any request for national assistance on 
implementation of the CVA.  
3.20.   The Committee took note  of the information.  
4  SPECIFIC TRADE CONCE RNS 
4.1  Armenia's reference price system in connection with the valuation of goods  – request 
by The United States  
4.1.  The Chairperson  recalled that the Committee  had agreed at its previous meeting to revert to 
this issue. Armenia had notified its national legislation in August  2003, in 
document  G/VAL/N/1/ARM/1, as well as its responses to the checklist of issues, in 
document  G/VAL/N/2/ARM/1. The Committee had concluded its examination of this legislation at its 
meeting on 18  October  2005. The United States  had raised follow -up questions, in 
document  G/VAL/W/208, to which Armenia had provided responses in document  G/VAL/W/213. 
Canada had subsequently submitted questions in document  G/VAL/W/214 , to which Armenia had 
provided responses in document  G/VAL/W/316. The United States had raised additional questions 
in document  G/VAL/W/314.  
4.2.  The representative of Canada  thanked Armenia for its response and her delegation welcomed 
the information  that Canada's concern regarding Armenia's legislation raised in 2012 was no longer 
an issue, since Armenia had subsequently adopted the Eurasian Economic Union (EAEU) Customs 
Code in 2015 , and "orientation prices" or "control prices" were no t used for valuing g oods under that 
Code. She encouraged Armenia to notify the Committee of its current rules on the customs valuation 
of goods pursuant to the adoption of the EAEU  Customs Code.  
4.3.  The representative of Armenia  said that his delegation would meet bilaterally wit h Canada to 
provide additional detailed information.  
4.4.  The Committee  took note  of the statements made.  
4.2  Pakistan's determination of customs values of paper – request by Thailand  
4.5.  The Chairperson  recalled that it had been agreed at the last meeting that the Com mittee would  
revert to this item.  
4.6.  The representative of Thailand  said that , in January  2018, Pakistan had amended its valuation 
ruling and reduced the customs values of paper imported from Thailand. This improvement had 
alleviated the negative impact on Thailand's paper exports. However, Thailand was still concerned 
that Pakistan was not usi ng the transaction value as the basis for customs valuation of imported 
paper products and was instead using values published in valuation rulings by its customs 
authorities. As a result, Pakistan's measure appeared to be inconsistent with GATT  Article  VII and 
the CVA. In order to ensure predictability, consistency , and clarity, Thailand requested Pakistan to 
accept transaction values for valuation purposes. Thailand  would closely monitor future 
developments and would remove the item from the agenda once it  had been  satisfied that the issue 
had been resolved . Thailand was available to engage bilaterally with Pakistan and hoped that the 
issue would be resolved amicably in the near future.  
4.7.  The representative of Pakistan  referred to statements made by his deleg ation at previous 
meetings of the Committee. Pakistan's customs valuation rulings were consistent with its 
WTO obligations. However, his delegation was available to engage constructively with Thailand to 
find a mutually convenient solution to the issue.  
4.8.  The Committee took note  of the statements made and agreed to revert to this item at its next 
meeting . G/VAL/M/67  
 
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  4.3  Oman's customs valuation of cigarettes and introduction of the selective tax – request 
by Switzerland  
4.9.  The Chairperson  recalled that it had been agreed at th e last meeting that the Committee would  
revert to this item.  
4.10.   The representative of Switzerland  said that Switzerland and Oman had held successful 
discussions on this issue and that her authorities were satisfied with Oman's explanation . 
Nevertheless, Switzerland reserved its right  to raise the issue again should there be any change. 
Switzerland also requested Oman to confirm when it intended to implement the selective tax on 
Tobacco Products and Energy Drinks and Carbonated Soft Drinks.  
4.11.   The representative of the European Union  joined Switzerland in its request for confirmation.  
4.12.   The representative of Oman  thanked Switzerland for its understanding and cooperation 
throughout the process . Her delegation would provide the requested information on the selective 
tax following a communication from Capital.  
4.13.   The Committee took note  of the statements made.  
4.4  Tajikistan – issues related to customs valuation – request by Ukraine  
4.14.   The Chairperson  informed the Committee that t his item had been added to the a genda at the 
request of Ukraine.  
4.15.   The representative of Ukraine  said that his delegation had asked for  the inclusion of  this item 
in order t o better understand Tajikistan's customs valuation procedures and practices. 
Some  Ukrainian stakeholders had reported  that Tajikistan's Customs Services used reference 
(indicative) prices in connection with the valuation of goods that were higher than the values 
declared by Ukrainian companies. As a result, higher duties and value added tax were being paid on 
imports of Ukrainian goods.  
4.16.   While Ukraine and Tajikistan had discussed the issue bilaterally, the analysis of available 
information showed that Tajikistan's customs practice appeared to be inconsistent with the 
provisions of Article  VII of the GATT  1997 and the Customs Valuation Agreement . 
4.17.   Ukraine requested Tajikistan to provide information on the legal basis for the reference price 
system that it applied , and how Tajikistan used the reference price in determining customs value . 
Ukraine also requeste d a detailed description of the reference price system, including a description 
of how the indicative prices were calculated and how regularly  they were updated.  
4.18.   Ukraine encouraged Tajikistan to adhere to the WTO 's rules, in particular to the CVA , to ensure 
a transparent and predictable trading environment.  
4.19.   The representative of Tajikistan  said there was no outstanding customs valuation issue 
between  the two  countries. He requested Ukraine to submit their questions in writing for review in 
Capital.  
4.20.   The Committee took note  of the statements made.  
5  PRESHIPMENT INSPECTI ON 
5.1.  The Chairperson  noted that Preshipment Inspection was a standing item on the agenda of the 
Committee on Customs Valuation and that the item contained three  sub-items for discuss ion, 
namely: status of notifications; questions and responses by the United States and Indonesia,  
respectively ; and i nformation  on PSI  programmes . G/VAL/M/67  
 
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  5.1  Status of notifications by Members  
5.2.  The Chairperson  drew the Committee's attention to the compilation of notifications pursuant 
to Article  5 of the Agreement on Preshipment Inspection , which was contained in the following series 
of documents: G/PSI/N/1/Rev.2; G/PSI/N/1/Rev.2/Add.1; G/PSI/N/1/Rev.2/Add.2; 
G/PSI/N/1/Rev.2/Add.3; G/PSI/N/1/Rev.2/Add.4 ; and G/PSI/N/1/Rev.3 . The latest compilation of 
notifications on PSI was contained in document  G/PSI/N/1/Rev.3/Add.1.  
5.3.  The Committee  took note  of the aforementioned documents.  
5.2  Questions and Responses by the United States and Indonesia  
5.4.  The Chairperson  recalled that the Committee  had agreed at its previous  meeting to revert to 
the issue of Questions and Responses by the United States and Indonesia. The United States had 
raised questions to Indonesia that had been circulated in documents  G/VAL/W/167, G/VAL/W/180, 
G/VAL/W/237 , and G/VAL/W/278. Indonesia had provided responses in documents  G/VAL/W/256, 
G/VAL/W/257, and G/VAL/W/257/Corr.1 (in Spanish and English only) and G/VAL/W/309. 
The United States had then submitted additional questions, which had been circulated in 
document  G/VAL/W/314.  
5.5.  The representative of Indonesia  said that the questions from the United States were being 
reviewed in Capital.  
5.6.  The representative of the United States  thanked Indonesia for its previous response s and said 
that her delegation looked forward to receiving responses to their follow -up questions.  
5.7.  The Committee  took note  of the statement s made and agreed  to revert to this issue at its next 
meeting.  
5.3  Information on PSI  programmes  
5.8.  The Chairperson  drew the Committee's attention to document  G/VAL/W/63/Rev. 23, which 
contained the most recent update of the information received from the International Federation of 
Inspection Agencies (IFIA) on Members that use d preshipment  inspection services . 
5.9.  The Committee took note of the information . 
6  EGYPT'S S TATUS OF NOTIFICATIO N OF PSI – REQUEST BY THE UNI TED STATES  
6.1.  The Chairperson  recalled that, at its previous meeting, the Committee had agreed to revert to 
this issue.  
6.2.  The representat ive of Egypt  thanked the United States for their continued interest in this 
matter. He referred to the statement made by Egypt at the Committee's meeting of 23  April 2018. 
The concerns raised by the  United States in document  G/VAL/W/299 were being studied in Capital 
and Egypt would revert t o the matter at  the Committee 's next meeting.  
6.3.  The representative of the United States  reiterate d the points made by her delegation at the 
Committee's meetings of November  2017 and April 2018 on Decree No.  991/215 . 
Document  G/VAL/W/299 included the request that Egypt notify the Decree to the Committee.  
6.4.  The Committee  took note  of the statement s made  and agreed to revert to this issue at its next 
meeting . 
7  INFORMATION ON THE A PPLICATION OF DECISI ONS OF THE COMMIT TEE ON CUSTOMS 
VALUATION  
7.1.  The Chairperson  stated that the Committee had two  issues under this agenda item: (i)  the 
status of notifications under the Committee's Decisions; and (ii)  the proposal by Uruguay, which had 
been circulated in document  G/VAL/W/241/Rev.1.  G/VAL/M/67  
 
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  7.1  The status of notifications under the Committee's Decisions  
7.2.  The Chairperson  recalled that the Committee had examined notifications pursuant to 
two Decisions that had been adopted by the Committee at its meeting of 12  May 1995 and which 
were contained in document  G/VAL/5 , namely,  the Decisions on "Treatment of Interest Charges in 
the Customs Value of Imported Goods" , and "Valuation of Carrier Media Bearing Software for Data 
Processing Equipment". A report by the Secretariat listin g the notifications received had been 
circulated in document  G/VAL/W/5/Rev.2 9. 
7.3.  The Committee took note  of the information.  
7.2  Uruguay's proposal to update the carrier media decision  
7.4.  The Chairperson  recalled Uruguay's  proposal to amend the Carrier Media Decision, also known 
by Customs as "Decision  4.1", which was contained in document  G/VAL/W/241/Rev.1. According to 
Uruguay, software was increasingly being imported using new types  of carrier media, such as 
USB flash dr ives or other similar devices, which did not necessarily fall under the definition of "carrier 
medium" as set out in the Decision. This meant that imports  of certain software could be treated 
differently from software  imported using other types of media, s uch as CDs or DVDs. Switzerland 
had submitted comments on Uruguay's proposal , which had been circulated in 
document  G/VAL/W/254. At the request of the Committee, the Secretariat had also prepared a 
report containing  statistics on imports of these products , which had been circulated in 
document  G/VAL/W/249.  
7.5.  The representative of Uruguay  reiterated the salient points of their proposal, which were that 
it met the need to keep the appropriate level of technical provisions for software containing media 
in view o f the developments as set out by the WCO TCCV. The proposal enjoyed support from the 
TCCV as well a significant number of WTO  Members. His delegation was available to work with 
Members and to provide relevant tariff information.  
7.6.  The representative of the European Union  said that their position had remained unchanged. 
They looked forward to hearing more about  Uruguay's technical discussions with their experts.  
7.7.  The representative of South Africa  said that South Africa did not agree to Uruguay's proposal 
as it amounted to a substantive market access negotiating proposal and did not belong in the 
Committee on Customs Valuation.  
7.8.  The Committee took note  of the statement s made and agreed  to revert to Uruguay's proposal 
at its next meeting.  
8  ANNUAL REVIEW OF THE  IMPL EMENTATION AND OPERA TION OF THE CUSTOMS 
VALUATION AGREEMENT  
8.1.  The Chairperson  drew the Committee's attention to Article  23 of the Customs Valuation 
Agreement, which provide d that the Committee shall review annually the implementation and 
operation of the Agreement, taking into account the objectives thereof. The Secretariat ha d prepared 
a draft review, which ha d been circulated in document  G/VAL/ W/311. 
8.2.  He proposed that the Co mmittee adopt the Annual Review1 and instructed the Secretariat to 
update it as necessary to take account of the discussions in the November  meeting.  
8.3.  The Committee  so agreed . 
                                                
1 Subsequently issued as document  G/VAL/76 and G/VAL/76/Corr.1.  G/VAL/M/67  
 
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  9  ANNUAL REPORT OF THE  COMMITTEE ON CUSTOM S VALUATION TO THE C OUNCIL FOR 
TRADE IN G OODS  
9.1.  The Chairperson  recalled that Article  23 of the Agreement also required the Committee to 
annually inform the Council for Trade in Goods of developments during the relevant reporting period. 
The Secretariat had prepared a draft report, which had been c irculated in document  G/VAL/W/ 312. 
9.2.  He proposed that the Committee adopt  the Annual Report to the Council for Trade in Goods2 
and instructed the Secretariat to update it as necessary to take account of the discussions in the 
November  meeting.  
9.3.  The Committee so agreed . 
10  OTHER BUSINESS  
10.1  Date of next meeting  
10.1.   The Chairperson  stated that the date of the Committee's next meeting  would be fixed in 
consultation with Members.  
_______________  
 
 
  
                                                
2 Subsequently issued as document  G/L/1284.  G/VAL/M/67  
 
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  ANNEX I  
REPORT TO THE W TO COMMITTEE ON CUSTOMS VALUATION  
ON THE WORK OF THE TECHNICAL COMMITT EE ON CUSTOMS VALUATION  
AND RELATED ACTIVITI ES OF THE WCO SECRETARIAT  
19 November 2018  
The Technical Committee on Customs Valuation held its 47th Session at WCO Headquarters in 
Brussels from 22 to 26 October 20 18.  
The Session was chaired by Mr.  J. BIRKHOFF  from the  Netherlands and 65 Members were present, 
as well as Observers from  the Customs  Administrations of Algeria;  Islamic Republic of Iran; Libya ; 
Palestine ; and Serbia; the International Chamber of Commerce (ICC); the Gulf Cooperation Council 
(GCC); the Organisation for Economic Co -operation and Development (OECD) and the World Trade 
Organization (WTO).  
1.  Specific technical questions examined, and outcomes achieved  
The Technical Committee continued its discussions on the  five specific technical questions on its 
Agenda . 
The first question, submitted by Mauritius, related to the v aluation of imported goods purchased in 
"Flash sales" . The Technical Committee re ached consensus on the draft Advisory Opinion on this 
question which will be submitted in the three languages for approval at the next Session.  
The second question, submitted by Uruguay, related to the i nterpretation of the value o f adjustments 
under Artic le 8.1 (b) of the Customs Valuation Agreement . bout. The Technical Committee decided 
to continue its discussions on this question at the 48th  Session.  
The third question, submitted by Canada, related to the s ale for Export to the Country of Importation 
under Article 1 . The Technical Committee decided to continue its discussions on this question at the 
48th Session.  
The fourth question, also submitted by Uruguay, concerned the r oyalties and  licence fees under 
Article 8.1 (c) of the Agreement . The Technical Co mmittee decided to continue its discussions on this 
question at the 48th  Session.  
The fifth and final question, submitted by China, related to income tax paid on r oyalties and licence 
fees under Article 8.1 (c) of the Agreement, and is similar to advisory o pinion 4.17, except for the 
additional income tax element. The Technical Committee decided to continue its discussions on this 
question at the 48th  Session.   
2.  Other items  
Under Agenda Item II , the Technical Committee adopted  the Report of the 46th Sessi on. 
Under Agenda Item III , the Technical Committee took note of:  
- the Director 's report on intersessional developments;  
- the oral report by the Observer for the WTO Committee on Customs Valuation;  
- the presentation "Update on the task force on the digital economy" by the OECD;  
- the Secretariat 's presentation "WCO study report on IFFs and Trade Mis -invoicing";  and 
- the Secretariat 's presentation "E -Commerce WCO Framework of Standards on Cross -Border 
E-Commerce".  
Under Agenda Item IV , the Technical Committee took note of:  
- the report on the technical assistance/capacity building activities undertaken by the 
Secretariat and Members;  G/VAL/M/67  
 
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  - the presentation by South African Revenue Service under the item Progress report on 
developing countries ' application of the WTO Customs Valuation Agreement; and  
- the Secretariat 's report and presentation on the Revenue Package update.  
Under Agenda Item VI , the Technical Committee considered four questions raised during the 
intersession by China (1), Egypt (1)  and Uruguay (2) and : 
- accepted three of them as specific technical questions to be examined at the Technical 
Committee 's 48th Session. These questions are: (i) Commissions payable under Promotion 
and Marketing Service Agreements: requested by Uruguay; (i i) Treatment applicable to a 
situation in which the price depends on the own trademark of the buyer: requested by 
Uruguay; and (iii) Valuation of imported goods sold at discounted prices to accredited buyers 
related to the seller: requested by Egypt;  
- noted that there was no consensus to examine as a specific technical question the request 
raised by China concerning "Valuation of imported chip cards relating to transportation service 
and tourist admission tickets"; and  
Under Agenda Item VII , the Technical Committee agreed to continue to discuss a proposal from the  
EU regarding "Review of working methods for dealing with technical questions of the Technical  
Committee".  
 
Finally, the dates of next Session were provisionally set for 13 to 17 May 2019.   
 
______ _________  
 
 
  G/VAL/M/67  
 
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  ANNEX II* 
 
LINKAGES BETWEEN THE  AGREEMENT ON CUSTOM S VALUATION AND TRAD E FACILITATION – 
PRESENTATION BY MR Y UICHIRO OKUMURA, CHA IRPERSON OF THE COMM ITTEE ON CUSTOMS 
VALUATION  
 
 
 
 
                                                
* In English only.  
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