G/VAL/W/264  
10 June 2015  
(15-3010)  Page: 1/3  
Committee on Customs Valuation  Original: Spanish  
 
  PROPOSAL FOR UPDATING THE "DECISION ON THE VALUATION OF CARRIER MEDIA 
BEARING SOFTWARE FOR DATA PROCESSING EQUIPMENT" 
COMMUNICATION FROM URUGUAY 
Replies to the Questions Posed by the EU 
The following communication, dated 8 June 2015, is being circulated at the request of the 
delegation of Uruguay. 
 
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Question 1 
Can Uruguay confirm that the principal (and only) issue relates to the non-eligibility of 
USB drives in the context of the application of Decision 4.1? 
Reply 1 
Uruguay confirms that, to date, the principal issue relates to USB flash drives (HS 8523). 
The ICC informed the WCO TCCV that there were  other storage devices under HS heading 8523 
which incorporated integrated circuitry in order to function, but which were not marketed with 
pre-loaded software for transfer to data-processing equipment (see paragraph 3 of WCO TCCV document VT0889, drafted for the TCCV's 36th Session in spring 2013). 
Question 2 
The Harmonized System (HS) Explanatory No tes to Chapter 85.23 under "semiconductor 
media" define the group as "solid-state, non- volatile data storage devices for recording 
data from an external source" and explain th at it is referred to both USB and Smart 
Cards (decoders), which are not "carrier media". 
Therefore the broad definition provided: ci rcuits, semiconductors and similar devices 
which are presented to customs solely as a means of temporary storage for transfer of 
data or instructions (software) to data proc essing equipment in order to be used might 
have the purpose of indeed limiting the scope to "carrier" media. Can this be confirmed? 
Reply 2 
Yes, in line with the original intention of Decision 4.1, applied to date exclusively for magnetic or 
optical media. 
This intention is very clear from the statement made by the Chair of the WTO Customs Valuation 
Committee dated 24 September 1984, and has been applied, to date, by Customs. G/VAL/W/264 
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  Question 3 
If this is the case, why it is considered th at USB keys are not covered by the existing 
text of the decision ("data or instructions (software) recorded on carrier media for data 
processing equipment")? 
Reply 3 
Because the wording of the Decision expressly excludes them, meaning that no other 
interpretation is possible. It is clear and emphatic. 
Question 4 
What is the difference between "recording" and "storage" with reference to the 
suggested drafting? 
Reply 4 
These terms have two different meanings and applications in this Decision. For example, in his above-mentioned statement,  the Chairman of the WTO Customs Valuation 
Committee noted that, "In addition, the carrier medium is usually a temporary means of storing 
the instructions or data; in order to use it, the buyer has to transfer or reproduce the data or 
instructions into the memory or database of his own system...". 
The mention of "recordings" comes from the Decision itself but is in relation to another application, 
and is kept the same, unchanged: 
"the expression "data or instructions" shall not be taken to include sound, cinematic or video 
recordings." 
Question 5 
The same HS explanatory notes indicate that  "products of this group contain one or 
more electronic integrated circuits". Are th ose circuits functional only to storage and 
transport of data? 
Reply 5 
In the case of USB flash drives, yes; for other devices (according to the ICC itself), no. 
Question 6(a) 
Customs-related text 
(a) What is the scope (and the sense) of  the expression "presented to customs"? 
Reply 6(a) 
This is an expression used by Customs and relates to the moment at which goods are presented 
for control or verification prior to entry into an importing country. G/VAL/W/264 
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  Question 6(b) 
Why should the storage of data be "tempora ry"? What is the scope of the term "for 
transfer"? 
Reply 6(b) 
The Swiss delegation suggested removing the term "temporary". As mentioned before, both expressions, "temporary" and "for transfer", derive from the cited 
and very illustrative statement by the Chai r of the WTO Customs Valuation Committee. 
Technically both were adopted, without po sing any problem for Customs practices. 
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