G/VAL/W/281  
17 November 2015  
(15-6069)  Page: 1/2  
Committee on Customs Valuation  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON 
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
NICARAGUA  
Replies to the Questions Posed by the United States Regarding Documents 
G/VAL/N/1/NIC/1 and G/VAL/N/2/NIC/1 
The following communication, dated 20 October 2015, is being circulated at the request of the 
delegation of Nicaragua. 
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The United States would like to thank Nicaragua for its replies in G/VAL/W/265 to the 
United States questions circulated in G/VAL/W/261. While we are continuing to review the replies 
from Nicaragua, at this time we ha ve the following additional requests. 
 
Regarding the document in Implementing Regula tions for the Central American Uniform Customs 
Code (G/VAL/N/1/NIC/1): 
1. In response to a question regarding Article 3 of the Implementing Regulations, which refers to 
the use of reference prices as the basis for reasonable doubt, and how Nicaragua ensures that 
reference prices are not used as the basis for determining customs value, Nicaragua replied in part, " Reference prices are used only for the purpos e of investigating and verifying the declared 
value where there is a reasonable doubt ." 
Follow-up question: Please elaborate how the reference prices are used in these 
situations, and indicate whether the refere nce prices are being substituted for the 
importer's declared customs value. 
Reply: 
In the event of reasonable doubt on the part of the customs authority regarding the declared 
customs value and in accordance with Decision 6.1 of the Committee on Customs Valuation, the 
importer may be asked to provide further explanation, including documents or other evidence, that 
the declared value represents the total amount actually paid or payable for the imported goods. This is for the purpose of " investigating and verifying the declared value ". 
The investigation takes into consideration the valuation database comprising the values declared 
by importers for identical or similar goods, which serve as a reference where these goods were 
exported at "about the same time", within the meaning of Articles 1.2(b)(i), 1.2(b)(iii), 2 and 3 of the Agreement. 
The reference prices are not substituted for the importer's declared customs value. Where the 
customs value cannot be determined under the provis ions of Article 1 of the Agreement, a basis of 
value is established under the provisions of Articles 2 or 3. G/VAL/W/281 
- 2 - 
  2. In response to a question regarding Article 189 of the Implementation Regulations, Nicaragua 
replied, " Article 189 provides that transport and insuranc e costs are to be calculated in accordance 
with the rates normally applicable only in cases where the importer has not paid for these services 
because they were free of charge, not contracted or carried out by the importer's own means. If 
no payment was made to cover these costs, the customs value of the goods cannot be determined 
and the rates normally applied must therefore be used. The rates provided by the Customs Service 
take account of the different types of goods and their origin and provenance; they are therefore 
considered to be objective and quantifiable, given that they are established on the basis of similar 
goods originating in and coming from the same country ." 
Follow-up question: What is the source of the rates that the Customs Service is applying 
in these cases? Where are these rates publis hed? We note that the Customs Service is 
not an insurance company or surety. How does  Nicaragua ensure that additions for the 
cost of insurance are based on objective and qu antifiable data as set out in Article 8.3 of 
the CVA? 
Reply: 
In accordance with Article 8.2 of the Agreement, in order to establish the transport and insurance 
costs of the goods import operations referred to in Article 189 of the Implementing Regulations for 
the Central American Uniform Customs Code (RECAUCA), the Directorate-General of Customs 
Services established the objective and quantifiable data as follows: 
(a) The freight rate was based on the rates usually applied by the transport companies 
registered with the Customs Service for the tr ansport of goods of the same class or kind, 
applying the methodology set out in the seco nd paragraph of Article 189 of the RECAUCA. 
(b) The insurance rate was based on the rates usually applied by insurance companies to goods 
of the same class or kind, applying the methodology set out in the third paragraph of 
Article 189 of the RECAUCA. 
(c) These rates are published on the website of the Directorate-General of Customs Services: 
http://www.dga.gob.ni . 
3.  Last follow-up question: Nicaragua indicated that "the adoption of the Agreement constitutes 
a legal provision already applicable in Nicaragua." Could Nicaragua please provide us 
with a copy of the legal provision which implements Article 7.2 of the CVA ? 
Reply: 
Pursuant to Article 22 of the Agreement, Nicara gua notified the Committee on Customs Valuation 
on 15 October 2012 (G/VAL/N/1/NIC/1) that the customs valuation legislation in respect of goods was established in the Central American Uniform Customs Code (CAUCA), 
Resolution No. 223-2008, approved on 25 April 2008 and published in Official Journal 
La Gaceta  No. 135 of 16 July 2008, and in the Implemen ting Regulations for the Central American 
Uniform Customs Code (RECAUCA), Resolution  No. 224-2008 (COMIECO-XLIX), approved on 
25 April 2008 and published in Official Journal Nos. 136, 137, 138, 139, 140, 141 and 142 of 17, 
18, 21, 22, 23, 24 and 25 July 2008 respectively. 
Please see: 
https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S006.aspx?Query=%28%20@Symbol=%20g/
val/n/*%20and%20nic%29&Language=SPANISH&Context=FomerScriptedSearch&languageUICha
nged=true# ; G/VAL/N/1/NIC/1, 15 October 2012 
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