G/VAL/W/247  
 
20 June 2014  
(14-3603)  Page: 1/2  
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 
UKRAINE 
Responses to questions from the United States posed in document G/VAL/W/235 
Answers to Questions 2 and 7: 
According to paragraph 2 of Article 53 of the Cust oms Code of Ukraine, the document confirming 
the customs value of a good is a foreign economic activity agreement (contract) or a document that replaces it. 
The documents that replace a foreign economic agreement (contract) are documents that are the 
basis for the movement of goods across the customs border of Ukraine, but those that have not secured the rights or obligations of the relationsh ip of two or more parties.  For example, the 
document for goods temporarily imported into the customs territory of Ukraine may be invitation 
to participate in an exhibition. 
Answers to Questions 6 and 9: 
If there are grounds provided by  paragraph 3 and paragraph 4 of Article 53 of the Customs Code 
of Ukraine, the customs authority (body of re venues and charges) shall request additional 
documentation within four working hours of the submission to the customs authority of goods, vehicles for commercial use that are subject to customs clearance (if under this Code goods, 
vehicles for commercial use are subject to presentation), of a customs declaration or document, 
which according to the law it replaces, and all necessary documents and information specified in Articles 257 and 335 of the Code.  The declarant (or his authorized representative) of such written 
request, shall, within ten days provide (if any), such additional documents at any time.  
As a result of monitoring the accuracy of dete rmining the customs value of goods, the customs 
authority recognizes claimed by the declarant or his authorized representative customs value or 
takes a written decision as to its adjustment in accordance with the provisions of Article 55 of the 
Code.  
The final decision is made by the customs authority within four working hours of receipt by 
customs (customs point) of such documents or wr itten refusal of the declarant or his authorized 
representative providing them.  
Answer to Question 8: 
In accordance with paragraph 1 (c) of Article 8 of  the Agreement on Implementation of Article VII 
of GATT (hereinafter - Agreement), in determin ing the customs value under Article 1 of the 
Agreement, that is according to the price of ag reement (contract), there shall be added royalties 
and licence fees related to the goods being valued that the buyer must pay, either directly or 
indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and 
fees are not included in the price actually paid or payable. G/VAL/W/247 
 
- 2 - 
 
  According to Ukrainian law, if at the time of customs clearance of the goods being valued, the 
amount of the royalties or other licence fees is unknown, during the determination of the customs value of the goods being valued, the declarant or his authorized representative shall calculate the 
amount of royalties or other licence fees based on: 
 its performance based on the amount of royalties or other licence fees paid for identical 
goods in the previous period, unless the licence agreement or any other agreement regarding disposition of intellectual property rights provided for the payment of royalties or 
other licence fees based on income earned; 
 prediction index of base of royalties and other licence fees, that is used for the 
determination of the royalties or other licence fees under the terms of the licence agreement 
or other agreement regarding disposition of intellectual property rights. 
As a result of the actual payment of royalties or other licence fees, a declarant or his authorized 
representative shall provide, within 180 days of the date of declaration (circulation) of goods, 
further refinement of the customs value of the goods being valued, and provide the information 
about the specified actually paid royalties or other licence fees.  In accordance with paragraph 3 of 
the Interpretative Notes to Article 8 of the Agreem ent, if there is no objective and quantifiable 
data with regard to the additions required to be made under the provisions of Article 8 of the 
Agreement, the transaction value cannot be dete rmined in accordance with Article 1 of the 
Agreement. 
As a result of actual payment of royalties or other licence fees the declarant or his authorized 
representative within 180 days from the date of manufacture of the goods, can provide additional 
clarification of the declaration of the customs value of the goods being valued, and provide 
information about the specified actually paid royalties or other licence fees. 
In accordance with paragraph 3 of the Interpretati ve Notes to Article 8 of the Agreement, unless 
there is objective and quantifiable data with regard  to the additions required to be made under the 
provisions of Article 8 of the Agreement, the tran saction value cannot be determined in accordance 
with Article 1 of the Agreement. 
Thus, if within 180 days the declarant or his author ized representative is not able to provide the 
specified information that is based on objective, documentarily confirmed data subjected to the calculation, the method of determining the custom s value at the price of agreement (contract) in 
respect of goods imported into customs territory of  Ukraine under the customs regime of import is 
not applied. 
Considering the above, we believe that the national legislation on determining the customs value if 
at the time of customs clearance of the goods being valued, the amount of royalties or other 
licence fees is unknown, is not contrary to th e Agreement, namely to the provisions of the 
mentioned Interpretative Note and Article 13 of the Agreement. 
__________