G/VAL/75  
 
15 December  2016 
(16-6839) Page: 1/6 
Committee on Customs Valuation    
 
 
  TWENT Y-SECOND  ANNUAL REVIEW OF THE  IMPLEMENTATION AND  
OPERATION OF THE AGR EEMENT ON IMPLEMENTA TION OF ARTICLE VII  
OF THE GENERAL AGREE MENT ON TARIFFS AND TRADE 19941 
Article 23 of the Agreement provides that "the Committee shall review annually the imple mentation 
and operation of this Agreement taking into account the objectives thereof".  The main objectives of 
the Agreement are those listed in the Genera l Introductory Commentary. The  annual review of the 
Committee should cover the implementation and oper ation of the Agreement in the light of its 
objectives and specific obligations.  
At its meeting  of 31 October  2016, the Committee on Customs Valuation conducted and adopted 
the 22nd annual review of the implementation and operation of the Agreement . 
 
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1 This report was adopted by the Committee on Customs Valuation at its meeting of 31 October 201 6. G/VAL/ 75 
 
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  The contents of this document are as follows:  
  Page 
I. MEMBERS' DELAYED APP LICATIONS, RESERVATI ONS AND OBSERVER 
STATUS  ................................ ................................ ................................ ............................  2 
(a) Delayed Application and Reservations  ................................ ................................ ...........  2 
(i) Article 20.1 (delayed application of the provisions of the Agreement)  ...............................  2 
(ii) Article 20 .2 (delayed application of the computed value method)  ................................ ..... 3 
(iii) Annex III, paragraph 1 (extension of the five -year delay period)  ................................ ...... 3 
(iv) Annex III, paragraph 2 (reservation concerning minimum values)  ................................ .... 3 
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of 
Articles 5 and  6) (53)  ................................ ................................ ................................ ..........  3 
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the 
importer so requests) (51)  ................................ ................................ ................................ ... 3 
(b) Observer Governments (20)  ................................ ................................ ........................  4 
(c) Observer International Organizations (6)  ................................ ................................ ...... 4 
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS  VALUATION ...............................  4 
III. MEETINGS OF THE COMM ITTEE  ................................ ................................ ...............  4 
IV. NATIONAL LEGISLATION  AND OTHER NOTIFICATI ONS PRESENTED  .......................  4 
(a) Texts of national legislation  ................................ ................................ .........................  4 
(b) Checklist of issues  ................................ ................................ ................................ ...... 4 
(c) Information on the application of the Committee Decisio ns ................................ ...............  5 
(d) Examination of national legislation  ................................ ................................ ...............  5 
V. DECISIONS TAKEN BY T HE COMMITTEE  ................................ ................................ .. 5 
VI. TECHNICAL ASSISTANCE  ................................ ................................ .........................  5 
VII.  ISSUES RELATED TO IM PLEMENTATION OF THE AGREEMENT  ................................ .. 6 
VIII.  UNITED STATES - ARMENIA'S REFERENCE P RICE SYSTEM IN CONNE CTION 
WITH THE VALUATION O F GOODS ................................ ................................ ....................  6 
IX. UKRAINE RESOLUTION N O. 724  ................................ ................................ ...............  6 
X. PAKISTAN'S DETER MINATION OF CUSTOMS VALUES OF PAPER  ..............................  6 
XI. PRESHIPMENT INSPECTI ON ................................ ................................ ....................  6 
XII.  REPORTS BY THE TECHN ICAL COMMITTEE ON CU STOMS VALUATION  .......................  6 
XIII.  CONSULTATION AND DIS PUTE SETTLEMENT  ................................ ...........................  6 
XIV.  ANNUAL REPORT TO THE  COUNCIL FOR TRADE IN  GOODS  ................................ ...... 6 
 
I. MEMBERS ' DELAYED APPLICATIONS , RESERVATIONS AND O BSERVER STATUS  
(a) Delayed Application and Reservations  
This section reflects the situation with respect to special and differential treatment provisions 
available for de veloping country Members as of 5 October  2016. These provisions have been 
invoked as follows:  
(i) Article 20.1 (delayed application of the provisions of the Agreement)  
No Member maintains this special and differential treatment provision.  G/VAL/ 75 
 
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  (ii) Article 20.2 (delayed application of the computed value method)  
No Member maintains this special and differential treatment provision.  
(iii) Annex III, paragraph 1 (extension of the five -year delay period)  
As a result of its Accession to the WTO, Yemen  will start fully implementing the Agreement by 
31 December 2016 .2 No other Member maintains this special and differential treatment provision.  
(iv) Annex III, paragraph 2  (reservation concerning minimum values)  
No Member maintains this special and differential treatment provision.  
(v) Annex III, paragraph 3 (reservation concerni ng reversal of sequential order of Articles 5 
and 6) (53)  
Argentina3 Guatemala  Niger 
Bahrain, Kingdom of  Guyana  Pakistan  
Bangladesh  Haiti Panama  
Benin  Honduras  Peru3 
Brazil3 India3 Philippines  
Brunei Darussalam  Indonesia  Senegal  
Burkina Faso  Israel  Sri Lanka  
Cameroon  Jamaica  Thailand  
Chile Kenya  Togo 
Colombia  Madagascar  Tunisia  
Costa Rica  Malawi3 Turkey3 
Côte d'Ivoire  Malaysia  Uganda  
Djibouti  Maldives  United Arab Emirates  
Dominican Republic  Mali Uruguay  
Ecuador  Mexico3 Venezuela, Bol. Rep. of   
Egypt  Morocco3 Zambia  
El Salvador  Myanmar  Zimbabwe3 
Gabon  Nicaragua   
 
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so 
requests) (51)  
Argentina4 Dominican Republic  Kenya  Peru4 
Bahrain, Kingdom of  Ecuador  Madaga scar Philippines  
Bangladesh  Egypt  Malaysia  Senegal  
Benin  El Salvador  Malawi  Sri Lanka  
Brazil4 Gabon  Maldives  Thailand  
Brunei Darussalam  Guatemala  Mali Togo 
Burkina Faso  Guyana  Mexico4 Tunisia  
Cameroon  Haiti Morocco4 Turkey4 
Chile Honduras  Myanmar Uruguay  
Colombia  India4 Nicaragua  Venezuela, Bol. Rep. of   
Costa Rica  Indonesia  Niger Zambia  
Côte d'Ivoire  Israel  Nigeria  Zimbabwe4 
Djibouti  Jamaica  Pakistan   
 
                                                
2 See paragraphs 108 -115 of the Report of the Working Party on t he Accession o f Yeme n to the WTO, 
WT/ACC/YEM/42.  
3 Members that maintain in the WTO the special and differential treatment provisions that had been 
invoked under the Tokyo Round Agreement through Decision WT/L/38.  
4 Members that maintain in the WTO the special and differentia l treatment provisions that had been 
invoked under the Tokyo Round Agreement through Decision WT/L/38.  G/VAL/ 75 
 
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  (b) Observer Governments (2 0) 
Algeria  Holy See  
Andorra  Iran 
Azerbaijan  Iraq 
Bahamas  Lebanese  Republic  
Belarus  Libya  
Bhutan  Sao Tomé and Principe  
Bosnia and Herzegovina  Serbia  
Comoros  Sudan  
Equatorial Guinea  Syrian Arab Republic  
Ethiopia  Uzbekistan  
 
(c) Observer International Organizations (6)5 
African, Caribbean and Pacific Group of States (AC P) 
Inter-American Development Bank (IADB)  
International Monetary Fund (IMF)  
United Nations Conference on Trade and Development (UNCTAD)  
World Bank  
World Customs Organization (WCO)  
 
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS  VALUATION  
Vice Chairperson ( elected in October 2015 )      Mrs. Joanna Cheung (Hong Kong, China)  
Chairperson (elected in July 2016)        Dr Yasser Korani (Egypt ) 
 
III. MEETINGS OF THE COMM ITTEE  
During the reporting period, the Committee held two formal meetings.  The first meeting was he ld on 
25 April 2016  (G/VAL/M/ 62) and was chaired by Mrs. Joanna Cheung (Hong Kong, China) , in her 
capacity as Vice Chair . The second meeting w as held on 31 October 2016 (G/VAL/M/63)6, and was 
chaired by Dr Yasser Korani (Egypt ). 
IV. NATIONAL LEGISLATION  AND OT HER NOTIFICATIONS PRESENTED  
(a) Texts of national legislation  
Article 22 of the Agreement requires each Member to inform the Committee of any changes in its 
laws and regulations relevant to the Agreement , and in the administration of such laws and 
regulations.  At its first meeting, on 12 May 1995, the Committee agreed on procedures for the 
notification of national legislation (G/VAL/M/1, paragraphs 29 -35, 71 and 72).  Paragraph i) of the 
"Decision on Notification and circulation of national legislation in accord ance with Article  22 of the 
Agreement"7 requires Members to submit the complete texts of their national legislation (laws, 
regulations, etc.) on customs valuation in one of the three official WTO languages.  
The status of these notifications is contained in  document G/VAL/ W/232/Rev.5. During the reporting 
period, new notification s were submitted by  the Russian Fede ration (G/VAL/N/1/RUS/1/Add.1)  and 
the Solomon Islands (G/VAL/N/1/ SLB/1). 
(b) Checklist of issues  
At its first meeting, on 12 May 1995, the Committee agreed on procedures for the submission of 
replies to a checklist of issues (G/VAL/M/1, paragraphs 36 -39). The checklist of issues is contained in 
G/VAL /5. 
                                                
5 These organizations now have official observer status following Agreement in the Committee 
(G/VAL/M/5) and Agreements between the World Bank and the IM F with the WTO (WT/L/195).  
6 To be issued.  
7 Section B.2 of document G/VAL/5 . G/VAL/ 75 
 
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  The status of these notifications is also contained in document G/VAL/W/232/Rev. 5. During the 
report ing period, one communication was received from Kazakhstan (G/VAL/N/2/KAZ/1 ). 
 
(c) Information on the application of the Committee Decisions  
Notifications on the application of the Decision on the Treatment of Interest Charges in the Customs 
Value of Imported Goods and of paragraph 2 of the Decision on the Valuation of Carrier Media 
Bearing Software for Data Processing Equipment (G/VAL/5) were summarized by the Secretariat in 
document G/VAL/W/5/Rev.26. During the reporting period, the Committee received new not ifications 
from Kazakhstan (G/VAL/N/3 /KAZ/1 and G/VAL/N/3/KAZ/2).  
(d) Examination of national legislation  
At its meeting of 25 April , the Committee continued the examination of various national legislations.  
In this regard, it agreed to revert at the next mee ting to the examination of the legislations of the 
Kingdom of Bahrain; Belize; Cabo Verde; Colombia; Ecuador; The Gambia; Guinea; Honduras; 
Montenegro; Nepal; Nicaragua; Nigeria; Russian Federation; Rwanda; Sri Lanka,  and Ukraine. 
In addition, the Committe e concluded the review of the national legislation  of Mali, Moldova and 
South Africa . 
 
At its meeting of 31 October , the Committee continued the examination of various national 
legislations. In this regard, it agreed to revert at the next meeting to the ex amination of the 
legislations of  the Kingdom of Bahrain; Belize; Cabo Verde; Colombia; The Gambia; Guinea; 
Honduras; Montenegro; Nepal; Nicaragua; Nigeria; Russian Federation; Rwanda and,  Sri Lanka.   It 
took note of  a new notification from the Solomon Isla nds, circulated prior to the meeting .  
In addition, the Comm ittee concluded the review of the national legislation s of Ecuador and Ukraine . 
V. DECISIONS TAKEN B Y THE COMMITTEE  
At its first meeting on 12 May 1995, the Committee adopted Decisions which had been  previously 
adopted by the Tokyo Round Committee. These Decisions are reproduced in document G/VAL/5. The 
Committee also adopted Decisions that were referred by the Ministers at Marrakesh to the 
Committee. The texts of the decisions are contained in docume nt G/VAL /1. 
The Committee has also been having ongoing discussions on a proposal by Uruguay 
(G/VAL/W/241/Rev.1) to update the Decision on the Valuation of Carrier Media Bearing Software for 
Data Processing Equipment, as  well as a related proposal by Switze rland (G/VAL/W/254). At the 
request of the Committee, the Secretariat had prepared a report with statistics on imports of th ose 
products, which was circulated in G/VAL/ W/249.  Uruguay had also provided responses to 
questions raised by one delegation which w ere circulated in document G/VAL/ W/264.  
There were  no decisions adopted during the reporting period.  
VI. TECHNICAL ASSISTANCE  
The Committee took note that technical assistance in the area of customs valuation was now 
incorporated in to the WTO -wide technical as sistance programme, and that 201 6-2017 biennial 
technical assistance plan was currently being implemented.  
During the reporting period, training on customs valuation was included in the WTO Regional Trade 
Policy Courses for English -speaking Africa; French -speaking Africa; Asia; the Caribbean; and, Latin 
America, as well as in three Advanced Trade Policy Courses held at the WTO.  
Members also have the possibility to request at any time  technical assistance on customs 
valuation, which would be met by a nationa l activity designed to meet the needs of the recipient . 
In July 2016, a national activity was carried out for Honduras  in cooperation with the WCO.  G/VAL/ 75 
 
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  VII.  ISSUES RELATED TO IM PLEMENTATION OF THE AGREEMENT  
At the meetings of 25 April  and 31 October,  the Committee took note of statements made regarding 
the work in relation to the Committee's mandate in paragraph 8.3 of the Ministerial Decision on 
Implementation -Related Issues and Concerns.  
VIII.  UNITED STATES - ARMENIA'S REFERENCE PRICE SYSTEM IN CONN ECTION WITH 
THE VALUA TION OF GOODS  
At the meetings of 25 April  and 31 October,  the Committee  discussed the alleged used by Armenia 
of a reference price system in connection with the valuation of goods . 
IX. UKRAINE RESOLUTION N O. 724  
At the meeting of 25 April , the Committee took n ote of the statements made under the agenda 
item "Ukraine Resolution No. 724 ", included at the request of the United States.  At the meeting of 
31 October, the Committee took note of the statements made under the agenda item "Abolition of 
the Resolution of  the Cabinet of Ministers of Ukraine  "on the Use of Benchmarks for Customs 
Valuation of Goods in the System of Risk Management" No. 724 dated 16 September 2015 ", 
included at the request of Ukraine. The Committee was informed that Resolution No. 724 had bee n 
abolished on 6 October 2016.   
 
X. PAKISTAN'S DETERMINA TION OF CUSTOMS VALU ES OF PAPER  
At the 31 October meeting, the Committee took note of statements made  under the agenda item 
"Pakistan's Determination of Customs Values of Paper", included at the request  of Thailand.  
 
XI. PRESHIPMENT INSPECTI ON 
The Secretariat prepared a report consolidating all the notifications which had been received on 
preshipment inspection ( G/PSI/N/1/Re v.2/Add.3 ). During the reporting period, new notification s 
were submitted  by Kazakhst an and Vanuatu . 
With regard to  the report by the International Federation of Inspection Agencies ( IFIA) concerning 
countries that use preshipment inspection services, new information was provided  in November 2015 
which  was circulated in documents G/VAL/W/6 3/Rev.18 and G/VAL/W/63/Rev.18/Add.1. Information 
was provided at the b eginning of May  2016 which was circulated in document  G/VAL/W/63/Rev.1 9. 
XII.  REPORTS BY THE TECHN ICAL COMMITTEE ON CU STOMS VALUATION  
At the 25 April meeting, the representative of the WCO p resented a report on the 42nd session of 
the Technical Committee on Customs Valuation (TCCV), which was held from  18 to 22 April 2016. 
At the 31 October meeting , the representative of the WCO presented a report on the 43rd session of 
the Technical Committe e on Customs Valuation (TCCV), which was held from 17 to 20 October  2016. 
XIII.  CONSULTATION AND DIS PUTE SETTLEMENT  
During the reporting period, there were no request s for consultations involving either the Agreement 
on Implementation of Article VII of the Gener al Agreement on Tariffs and Trade 1994 (Agreement 
on Customs Valuation)  or the Agreement on Preshipment Inspection . 
XIV.  ANNUAL REPORT TO THE  COUNCIL FOR TRADE IN  GOODS  
The Committee adopted its annual report to the Council for Trade in Goods in accordance wit h the 
requirements of Article  23 of the Agreement  (G/L/1160 ). 
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