G/VAL/N/2/ MWI /1 
 
3 July 2017 
(17-3579)  Page: 1/4 
Committee on Customs Valuation  Original: English  
 
 NOTIFICATION UNDER A RTICLE 22 OF THE AGR EEMENT ON  
IMPLEMENTATION OF AR TICLE VII OF THE  
GENERAL AGREEMENT ON  TARIFFS AND TRADE  1994  
CHECK -LIST OF ISSUES  
MALAWI 
The following communication, dated 17 March  2017, is being circulated at the request of the 
delegation of Malawi . 
_______________  
 
1. Questions concerning Article 1 : 
(a)  Sales between related persons:   
(i) are sales between related persons subject to special provisions?  
The Customs and Excise Act (42:01) (2014)1 does not list any provisions regula ting sales of 
imported goods between related persons specifically, but only determines that as the value 
of an imported good should be:  
"(…) the normal price, (…), the price which they would fetch at the time when the duty 
becomes payable, (…), on a sale i n the open market between a buyer and a seller 
independent of each other ." (Customs and Excise Act (42:01) (2014), Schedule A, 
Paragraph 1)  
Provisions for dealing with sales between related persons in the context of exported goods  
from the Republic of Mala wi are found in Schedule B of the Customs and Excise Act (42:01)  
(2014).  
(ii) Is the fact of intercompany prices prima facie considered as grounds for 
regarding the respective prices as influenced?  
No.  The fact that buyer and seller are related within the  meanin g of Schedule B, 
Paragraph  2 is not in itself grounds for regarding the transactional value as unacceptable in 
the case of goods exported  from the republic of Malawi ( Regulations of the Customs and 
Excise Act (42:01)  (2014), Schedule B, Paragraph 4) .  The act does not list any special 
provisions in this regard concerning the value of imported goods.  
(iii) What is the provision for giving  the communication of the afore mentioned 
ground in writing if the importer so requests? (Article 1.2 (a))  
Not appl icable.  
                                                
1 Please see document G/VAL/N/1/MWI/2.  G/VAL/N/2/ MWI/1 
 
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  (iv) How has article 1.2 (b) been implemented?  
Not applicable.  
(b) Price of lost or damaged goods:  
Are there any special provisions or practical arrangements concerning the 
valuation of lost or damaged goods?  
Article 99 of the Customs and Excise Ac t (42:01) (2014) and  Regulations No. 118, 119, 120 
and 121 of the Customs and Excise Regulations of the Customs and Excise Act (42:01) 
(2014) provide provisions for procedure in cases where goods were lost or damaged whilst 
under customs control.  
2.  How h as the provision of Article 4 to allow the importer an option to reverse the 
order of  application of Articles 5 and 6 been implemented?  
Article 111(2) of the Customs and Excise Act (42:01) (2014) states:  
"The value of imported goods shall be determined in accordance with the provisions of 
Schedule A and customs duties ad valorem or ad rem shall be paid on that value. " 
Neither the procedures for the valuation of imported goods for customs purposes listed in 
Schedule A of the Customs and Excise Act (42:01) (2 014) nor the Regulations to the 
Customs and Excise Act (42:01)  (2014) provide provisions relating to Article 4 of the 
Agreement on Implem entation of Article VII of the General Agreement on Tariffs and Trade  
1994.  
3.  How has article 5.2 been implemented?  
Article 111(2) of the Customs and Excise Act (42:01) (2014) states:  
"The value of imported goods shall be determined in ac cordance with the provisions of 
Schedule A and customs duties ad valorem or ad rem shall be paid on that value. " 
Neither the procedures  for the valuation of imported goods for cust oms purposes listed in 
Schedule  A of the Customs and Excise Act (42:01) (2014) nor the Regulations to the 
Customs and Excise Act (42:01)  (2014) provide provisions relating to Article 5.2  of the 
Agreement on Impl ementation of Article VII of the General Agreement on Tariffs and Trade  
1994.  
4.  How has article 6.2 been implemented?  
Article 111(2) of the Customs and Excise Act (42:01) (2014) states:  
 "The value of imported goods shall be determined in accordance with  the provisions of 
Schedule A and customs duties ad valorem or ad rem shall be paid on that value. " 
Neither the procedures for the valuation of imported goods for customs purposes listed in 
Schedule A of the Customs and Excise Act (42:01) (2014) nor the Re gulations to the 
Customs and Excise Act (42:01)(2014) provide provisions relating to Article 6.2  of the 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade  
1994.  
5.  Questions concerning Article 7 : 
(a)  What provisions have been made for making value determinations pursuant to 
 Article 7?  
Article 111(2) of the Customs and Excise Act (42:01) (2014) states:  G/VAL/N/2/ MWI/1 
 
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  "The value of imported goods shall be determined in accordance with the provisions of 
Schedule A and customs duties a d valorem or ad rem shall be paid on that value. " 
Neither the procedures for the valuation of imported goods for customs purposes listed in 
Schedule A of the Customs and Excise Act (42:01) (2014) nor the Regulations to the 
Customs and Excise Act (42:01)  (2014) provide provisions relating to Article 7 of the 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade  
1994.  
(b)  What is the provision for informing the importer of the customs value determined 
under Article 7?  
See a nswer to Question 5  (a). 
(c)  Are the prohibitions found in Article 7.2 delineated?  
See answer to Question 5  (a). 
6.  How have the options found in Article 8.2 been handled?  In the case of f.o.b. 
application, are ex -factory prices also accepted?  
Not appli cable.  
7.  Where is the rate of exchange published, as required by Article 9.1?  
As laid out in Article 113 of the Customs and Excise Act (42:01)  (2014), the rate of 
exchange for customs purposes will be published on the website of the Reserve Bank of 
Malawi. 
8.  What steps have been taken to ensure confidentiality, as required by Article 10?  
Not applicable.  
9.  Questions concerning Article 11:  
(a) What rights of appeal are open to the importer or any other person?  
As outlined in Article 112 of the Customs and  Excise Act (42:01)  (2014), importers  have the 
right to appeal to the controller determining the value of imported goods. Disputes as to the 
amount of duty payable are outlined in Part XIV of the Customs and Excise Act (42:01)  
(2014).  
(b)  How is he to be info rmed of his right to further appeal?  
Not applicable.  
10.  Provide information on the publication, as required by Article 12, of:  
(a)  (i) the relevant national laws;  
Relevant national laws and regulations are published in the Malawi Government Gazette.  
(ii) the regulations concerning the application of the Agreement;  
Relevant national laws and regulations are published in the Malawi Government Gazette and 
can be found in the Customs and Excise Act (42:01)  (2014).   G/VAL/N/2/ MWI/1 
 
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  (iii) the judicial decision and administr ative rulings of general application relatin g 
to the Agreement;  
See answer to Q uestion 10  (a)(ii). 
(iv) general or specific laws being referred to in  the rules of implementation or 
application.  
See answer to Question 10  (a)(ii). 
(b) Is the publication of f urther rules anticipated? Which topics would they cover?  
No further rules are anticipated at this stage.  
11.  Questions concerning Article 13:  
(a)  How is the obligation of Article 13 (last sentence) being dealt with in the 
respective legislation?  
Article  6 of Schedule A of the Customs and Excise Act (42:01)  (2014), is concerned with the 
case of missing documentary evidence relating to the clearance of goods.  
(b) Have additional explanations been laid down?  
Not applicable.  
12. Questions concerning Articl e 16:  
(a)  Does  the respective national legislation contain a provision requiring customs 
authorities to give an explanation in writing as to how the customs value was 
determined?  
Such a provision exists for exporters, but is not listed as a requirement in  Schedule A of the 
Customs and Excise Act (42:01)  (2014), which is concerned with the valuation of imports.  
(b)  Are there any further regulations concerning an above -mentioned request?  
Not applicable.  
13.  How have the Interpretative Notes of the Agreem ent been included?  
Not applicable.  
14.  How have the provisions of the Decision on the Treatment of Interest Charges in 
the Customs  Value of Imported Goods been implemented?  
Interest charges are not listed as a component of the value on which duties are a pplied (see 
Schedule A of the Customs and Excise Act (42:01)  (2014)).  
15.  For those countries applying paragraph 2 of the Decision on the Valuation of 
Carrier Media  Bearing Software for Data Processing Equipment, how have the 
provisions of this paragraph been  implemented?  
Not applicable.  
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