G/VAL/Q/TON/1  
 
4 October 2023  
(23-6637) Page: 1/4 
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  
REPLIES FROM TONGA TO QUESTIONS FROM THE UNITED STATES  
REGARDING DOCUMENT G/VAL/ N/1/TON/11 
TONGA 
The following communication, dated 27 September 2023, is being circulated at the request of the 
delegation of Tonga.  
 
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Question 1  
 
It appears that Article 20 of Tonga 's Customs Act allows for the Minister to review a determination 
or other dec ision made by a Customs officer.  What would prompt or provoke the Minister to 
undertake such a review?  Does Tonga consider that Article 20 implements a provision of the WTO 
Customs Valuation Agreement (CVA)?  If so, please identify the relevant provision.  
 
Response  
 
Section 20 (1) of the Customs Act 2007 states that:  
 
(a) At any time after the making of a determination or other decision by a Customs officer 
under this Part in relation to imported goods, the Minister may review the determination or 
other decision and may — 
(i) affirm the determination or other decision;  
(ii) vary the determination or other decision; or  
(iii) revoke the determination or other decision and make any other determination or 
decision that is required to be made for the pur pose of determining the customs value of the 
goods in accordance with this Part;  
 
(b) "Where, by reason that the Minister, under paragraph (a), has varied or revoked a 
determination or other decision of a proper officer, –  
(i) the amount of duty that was levie d is less than the amount that should have been 
levied; or  
(ii) the amount of duty that was refunded is greater than the amount that should have 
been refunded;  
a letter of demand will be issued by the Minister for the payment of the amount of duty so 
short le vied or so erroneously refunded, as the case may be. " 
 
 
1 The p revious document containing questions pertaining to the customs legislation of Tonga  were 
issued in document G/VAL/W/ 373. G/VAL/Q/TON/1  
 
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  This provision provides an avenue for the Minister to reconsider a decision with reason to believe 
that the determinations were incorrectly applied and that the proper valuation is applied. Incident 
reporting, internal audit, staff identification and/or other identification methods would prompt for 
the Minister to review a determination or decision.  
 
Customs cannot be required to depend on documentation which is incomplete in respect of relevant 
informa tion or which contain errors which have the effect of distorting the relevant information.  
 
Situations may arise when it becomes necessary to use the information contained in an incomplete 
document and to make further enquires so as to obtain information o r facts missing from such a 
document. In addition, only a part of a document might contain errors and reliance might be placed 
on other parts of the document which do not have any such errors.  
 
This is consistent with Article 17 of the WTO Customs Valuation Agreement (CVA)  and the 
clarification written under Annex III of the "Agreement " paragraph 6:   
 
"The Article thus acknowledges that enquiries may be made which are, for example, aimed at 
verifying that the elements of value declared or presented to customs in connection with a 
determination of customs value are complete and correct. Members, subject to their national laws 
and procedures, have the right to expect the full co -operation of importers in these enquiries. " 
Furthermore, accordi ng to the TCCV Texts; Advisory Opinions 19.1 – Application of Article  17 
of the Agreement and paragraph 6 of Annex III : 
 
"…the rights and obligations of importers and Customs in the determination of the Customs value 
would depend on national laws and regul ations. " 
 
Where Customs has reason to doubt the truth or accuracy of the particulars or of documents 
produced in support of the declaration, they may ask the importer to provide further explanation, 
including documents or other evidence. If after receiving  the information or in the absence of a 
response, Customs still has reasonable doubts about the truth or accuracy of the declared value, it 
may be deemed that the Customs value of the imported goods cannot be determined under Section 
12 of the Customs Act.  When a final decision is made, Customs shall communicate to the importer 
in writing its decision and the grounds thereof.  
 
Question 2  
 
Has Tonga made a reservation in accordance with paragraph 3 of CVA Annex III and CVA Article 21 
to disallow requests by importers to reverse the order of application of the deductive and computed 
valuation methods provided for in Articles 15 and 16 respectively in the Customs Act?  
 
Response  
 
We have not made such a reservation and are considering this matter in our current view of Tonga 's 
Customs Act.  
 
Question 3  
 
Please explain which provision of Tonga 's Customs Act ensures that Tonga will not require or compel 
any person not resident in Tonga to produce for examination, or allow access to, any account or 
other reco rd for the purposes of determining computed value, as provided in CVA Article 6.2.  
 
Response  
 
The law as it stands does not require any person not resident in Tonga to produce for examination, 
or allow access to, any account or other record for the purpose s of determining computed value, as 
referenced in CVA Article 6.2. Nevertheless, we have taken note of the question and will consider 
this matter in our current review of Tonga 's Customs Act.  
 G/VAL/Q/TON/1  
 
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  Question 4  
 
Please explain which provision of the CVA is implemented by Article 12(2)(h) of Tonga 's Customs 
Act. 
 
Response  
 
We have taken note of the question and will consider this matter, including whether to omit this 
provision, in our current review of Tonga 's Customs Act.  
 
Question 5  
 
It appears that Articl e 15(2)(d) of Tonga 's Customs Act indicates that in determining the customs 
value of the merchandise under the deductive value method, the Minister must be satisfied that the 
purchaser did not incur any costs related to the finance cost to purchase the imp orted goods referred 
to Article 12(2)(h). Please explain if Tonga considers that this Article implements a provision of the 
CVA, and identify that provision.  
 
Response  
 
We implement provision Article 5(1)(a)(iii) which states: where appropriate the deduction of costs 
and charges referred to in paragraph 2 of provision Article 8 of CVA. Therefore, we will consider a 
correction to Customs Act Section 15(2)(d) in our current review of Tonga's Customs Act.  
 
Question 6  
 
It appears that according to Articl e 15(4)(c) of Tonga 's Customs Act, in order to apply Article 15(4), 
the transaction must first satisfy Article 15(4)(b). However, Article 15(2)(b) refers to goods which 
are sold in Tonga in the same condition in which they were imported. Please explain how  this 
condition could be required since Article 15(4) appears to apply to deductive value of goods that are 
further processed upon importation.  
 
Response  
 
We have taken note of the apparent conflict in these provisions and will consider this matter in our 
current review of Tonga 's Customs Act.  
 
Question 7  
 
What is the basis in the CVA for referring to Articles 12(2)(g) and 12(2)(h) in Article 16 of Tonga 's 
Customs Act on computed value?  
 
Response  
 
Section 16: Computed Value  of Tonga 's Customs Act is intended to implement provision 
Article  6 of the CVA.  
 
In question 4 above we have addressed the matter pertaining to Section 12(2)(h); similarly, we 
have taken note of this question as it pertains to Section 12(2)(g) and will consider thi s matter, 
including to omit this reference, in our current review of Tonga 's Customs Act.  
 
Question 8 : 
 
Please explain which provision in Tonga 's Customs Act provides for notice of a decision on appeal in 
writing, as provided under CVA Article 11.3?  
 
Response  
 
A general provision relating to appeals of customs determinations is contained in Section  126: 
Appeal under our Customs Excise Management Act (CEMA) which states:  G/VAL/Q/TON/1  
 
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  "Any person may appeal to Tax Tribunal within 30 days of receipt of a decision of t he Minister under 
Customs laws ." 
We have taken note of this question as it pertains to CVA Article 11.3  and will consider this in our 
current review of Tonga 's Customs Act.  
 
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