G/VAL/W/223  
 
3 May 2013  
(13-2383)  Page: 1/3  
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 
BAHRAIN 
Questions from the United States to the Kingdom of Bahrain  
regarding G/VAL/N/1/BHR/2 and G/VAL/W/217 
 The following submission, dated 1 May 2013, is being circulated at the request of the 
Delegation of the United States. 
  
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 The United States would like to thank the Kingdo m of Bahrain for its notification of the 2008 GCC 
Common Customs Law, Kingdom of Bahrain, containe d in G/VAL/N/1/BHR/2.  Having reviewed this 
notification, we have the following questions. 
1. It appears that Article 12 of the Customs Valuation Agreement (CVA), requiring publication 
of laws, regulations, judicial decisions, and administrative rulings of general application 
giving effect to the CVA, is not reflected in the notified legislation.  How does the notified legislation implement Article 12? 
2. A few terms are defined in both Article 2 of  the Common Customs Law (CCL) and Clause II, 
Article I, Rules of Implementation (ROI).  While  many of the definitions in both places are 
the same or contain only minor differences, a few of the definitions, including that for "price actually paid or payable," contain significant differences.  How will Bahrain reconcile these 
differences?   
3. The definitions given in Article 2 of the CCL appear to be less complete or specific than those 
provided in the ROI.  Will the ROI be the prim ary source of law for Bahrain’s implementing 
the CVA? 
4. We are still concerned with the use of "experts" by the valuation committee on appeal, as 
discussed in Articles 61 and 62 of the CCL.  
5. Article 62 states that the director may release goods subject to dispute "if not prohibited."  
Please clarify if the use of the term "prohibited" refers to the nature of the goods, or 
whether there is another reason a release may be prohibited.  Additionally, the Article allows for the release of the goods upon the payment of a deposit; would other forms of 
guarantees other than a deposit in cash be allowed as well, as discussed in Article 13 of the 
CVA? 
Rules of Implementation  
6. Clause I.4, ROI, states that the exchange rate to be used in the case of currency calculation 
should be the "exchange rate announced in bulletins issued by the competent agencies."  Will Bahrain publish the agency and bulletin where this information can be found? G/VAL/W/223 
 
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  7. Clause I.6, ROI states that the Article does no t restrict the right of "Customs to undertake 
whatever is necessary" to ascertain the validity or accuracy of information submitted to customs.  What procedures does Bahrain envision will comprise these undertakings?   
8. Can Bahrain explain Clause I.7.A in light of In terpretive Note, Generally Accepted Accounting 
Principles 2, CVA?  
9. Clause I.7.B states that Customs may not reject information prepared in accordance with 
the Generally Accepted Accounting Principles on the ground of the accounting principles 
used.  May Customs still reject the information on other grounds?  
10. Clause II.1 defines "price actually paid or payable" to include payments made by the buyer 
"or under his knowledge."  Could Bahrain clarify this phrase in light of Note to Article 1, Price Actually Paid or Payable 1, CVA?   
11. Clause II.4 defines "produced" to include "services, or intellectual products."  Could Bahrain 
explain this addition in light of the definition set forth in Article 15.1(c), CVA? 
12. Please clarify the definition of "unit in greate st aggregate quantity" as provided in Clause 
II.8 and explain its interpretation in light of the definition provided in Article 2, CCL.  
13. Clause IV.A.1 states that for transaction value to be applicable there may be no restrictions 
on the disposition or use of the imported goods by the buyer, "other than restrictions 
provided for in the GCC Common Customs Law. "  Please explain the limitation of this 
provision to customs law, given that Article 1.1(a)(i) of the CVA allows the use of transaction value regardless of any restrictions on disposition or use imposed by the public authorities in the country of importation, not just restrictions required under the customs laws. 
14. How does the ROI implement Article 1.2(a), CVA, which provides, "the fact that the buyer 
and seller are related within the meaning of Article 15 shall not itself be grounds for regarding transaction value as unacceptable"?  
15. Clause IV.B.1 provides for additions to the price actually paid or payable for certain costs 
incurred by the importer .  If the buyer is not the importer, how will Bahrain reconcile this 
clause with Article 8.1(a), CVA, for the addition of costs incurred by the buyer? 
16. Clause IV.C.1.f provides an exclusion from transaction value for activities undertaken by the 
buyer on his own account.  Does Bahrain interpret this exclusion to apply to activities undertaken by the buyer to the extent that there is not an adjustment to the price actually paid or payable in Article 8 of the CVA (see Note  to Article 1, Price Actually Paid or Payable 
2, CVA)? 
17. Could Bahrain further explain Clauses IV.C.2, 3, and 4, and provide further explanation as to 
Interpretive Annex provision IV.C.2 and how it is interpreted with Clause IV.C.2?  
18. Under what authority are adjustments made to the transaction value of identical or similar 
merchandise for the costs in Clause IV.B.1?  Would such adjustments be made to the transaction value of identical or similar merchandise pursuant to Clause V? 
19. Please clarify if the reference to identical or similar goods in Clause VI.1 means identical or 
similar imported goods. 
20. Please clarify how Clause VII.1.b is consistent with Note 4 to Article 6, CVA, which requires 
the importing country to use the producer’s actu al figures, unless they are inconsistent with 
the usual amounts.  
21. Please explain what is meant by the requir ement of Clause VIII.a that the methods of 
valuation to be again applied sequentially, but "with reasonable flexibility".  Does Clause 
VIII.a implement a provision of the CVA? G/VAL/W/223 
 
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  Interpretive Annex 
22. IV.B.1.i provides that buying commissions are not included in the customs value.  Please 
clarify how this will be implemented.  Would a buying commission be deducted if it has been included in the price actually paid or payable, or would it simply not be added to the price 
actually paid or payable?  
23. IV.B.1.iv.B.2 provides that tools, dyes, moulds, and other similar items, when acquired from 
an unrelated seller, are valued at the cost to produce.  Can Bahrain explain how this 
provision is consistent with Note 2 to Article 8.1(b)(ii)?  
24. Is the explanation of reproducible works in IV.B.1.v.2 exemplary or limiting? If this is 
limiting, please explain how Bahrain sees such a limitation as consistent with the CVA?  
25. Please clarify the intended meaning and effect of IV.C.1.d when it says "Share dividends 
must be distinguished from the proceeds si nce the proceeds represent a part of the 
proceeds due to the seller from any subsequent resale." 
26. Please clarify how the provisions of V.A.5 and V.B.5 with respect to "same sale 
circumstances" would this be applied.  
27. It appears that the examples from notes 2 and 3 to Article 5 of the CVA have been combined 
in VI.1.a; is this combination intentional? 
We have the following comment with respect to Document G/VAL/W/217 (Responses from Bahrain 
to the United States): 
1. It remains unclear in the answer to Question  3 if the experts consulted with are government 
officials or independent experts.  Please clarify if non-government officials may be consulted 
by the valuation committee.   
 
 
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