G/VAL/72  
 
25 July 2014  
(14-4283)  Page: 1/3  
Committee on Customs Valuation  Original: English  
 
 TERMS OF REFERENCE:  INFORMAL WORKSHOP ON THE USE OF 
CUSTOMS VALUATION DATABASES 
I. BACKGROUND 
i. Institutional Framework 
Pursuant to Article 18.1 of the Agreement on the Implementation of Article VII of the General 
Agreement on Tariffs and Trade 1994  (Customs Valuation Agreement), the purpose of meetings of 
the CCV is to afford "Members the opportunity to consult on matters relating to the administration of the customs valuation system by any Member as it might affect the operation of this 
Agreement." 
Pursuant to Article 7.2(b), (f), and (g) of the Customs Valuation Agreement: "[n]o customs value 
shall be determined under the provisions of this Article on the basis of:  a system which provides 
for the acceptance for customs purposes of the higher of two alternative values; minimum customs 
values; or arbitrary or fictitious values." 
According to Paragraph 10 of the Guidelines for the Development and Use of a National Valuation 
Database as a Risk Assessment Tool
1: "[a] valuation database may be used by a Customs 
Administration only as a risk assessment tool.  It has to be designed specially to assess potential 
risk regarding the truth or accuracy of the declared value for imported goods."  Paragraph 18 states that a "Customs Administration may not:  
 Use a database to determine the Customs value of  imported goods, as a substitute value for 
imported goods or as a mechanism to establish minimum values; 
 Reject the declared value solely on the basis of a difference between the declared value and 
the database values; 
 Disregard the requirements of article 13 of  the WTO Valuation Agreement (concerning 
release of imported goods upon sufficient guarantee) in order to employ a valuation database; or 
 Use a valuation database as a substitute for other techniques, such as post-importation 
audit, to assess the truth or accuracy of the declared value." 
ii. Recent WTO Discussions 
On 7 May 2012 the International Chamber of Commerce (ICC) wrote a letter to the Chair of the 
WTO Committee on Customs Valuation (CCV) outlining concerns regarding the "rapid proliferation of valuation databases among Members".  The ICC wrote a follow-up letter on 10 July 2012, 
thanking the Chair for holding consultations on the 7 May letter, and requesting observer status to 
the CCV for the purposes of discussing the use of customs valuation databases.  
At the CCV on 25 October 2012, the Chair informed Members that the ICC wishes "to cooperate 
with the Committee and, in particular, with respec t to problems that could arise from the eventual 
misuse of customs valuation databases to set minimum or reference prices."  The Chair "saw 
                                               
 Adopted by the Committee at its formal meeting of 23 July 2014. 
1 The guidelines are establishe d by the World Customs Organi zation and are available at: 
http://www.wcoomd.org/en/topic s/valuation/instruments-and-
tools/~/media/WCO/Public/Global/PD F/Topics/Valuation/Instruments%20and%20Tools/Guides/guidelines_nati
onal_db.ashx   G/VAL/72 
 
- 2 - 
 
  interest to continue work in this area" and "proposed holding informal consultations" 
(G/VAL/M/54). 
On 30 April 2013, the Chair of the CCV invited 28 de legations to informal consultations to discuss 
the letters from the ICC, and in particular problems which may arise from the eventual misuse of 
customs valuation databases to set minimum or reference prices.  While Members recognized that 
the ICC was not an observer, and could not become an observer, to the CCV, most delegations indicated flexibility to explore other options to al low the ICC to participate, including through an 
informal seminar or workshop.  Members agreed  that the process should be Member-driven. 
A communication, dated 15 May 2013, sent by the Chair of the Technical Committee on Customs 
Valuation (TCCV) to the Chair of the CCV states that “it should be noted that Customs valuation databases are not an essential component of a Customs valuation control programme for those 
administrations that have developed programmes which principally use post-clearance audits 
based on the profiling of importers.  The WCO recommends that its Members use Customs 
Valuation databases as a risk management and analysis tool.  These Members should not use 
minimum values for the purposes of Customs valuation" (G/VAL/W/227). 
At the CCV on 15 May 2013 "Canada proposed to invite the ICC to come and speak to the 
Committee about their work on [databases], which co uld be done either in a dedicated session, an 
informal workshop or a seminar.  This presentation could also encourage a broader discussion 
amongst Members regarding their experiences in im plementing the valuation code, particularly as 
it concerns the use of reference prices."  The European Union; Australia; United States; and Chinese Taipei were supportive of Canada's pr oposal.  Since no Members opposed the proposal, 
the Chair "proposed that her successor would hold informal consultations to continue the 
discussion and elaborate on how to proceed" (G/VAL/M/55).   
On the suggestion of the Chair and Secretariat, Australia, Canada, Chinese Taipei, the European 
Union and the United States issued a written proposal on 22 August 2013 to increase 
transparency, and to encourage the engagement  of capital-based experts (G/VAL/W/231). 
The proposal was discussed during informal consultations on 23 September 2013, and at the 
formal CCV on 27 September.  While the proposal  g a i n e d  s u p p o r t  f r o m  s o m e  M e m b e r s ,  o t h e r s  
asked for more information regarding the purpose and objective of the proposal, and for more specific details, including with respect to timing and participation.  These questions were reiterated and further clarified during informal consultati ons on 11 February 2014.  In particular, some 
Members asked about the possibility of presenta tions by customs experts, noting significant 
interest on behalf of their capital-based officials.  Co-sponsors indicated an openness to re-draft the proposal to respond to Members' questions and comments.  
II. UPDATED PROPOSAL 
Co-sponsors propose that the CCV hold an informal workshop to discuss the use of customs 
valuation databases.  
iii. Purpose and Objective 
The purpose of the proposed workshop is to share experiences and perspectives to improve 
understanding, raise awareness, evaluate experien ces collected by the Customs administrations on 
the implementation of the WCO Guidelines on th e use of Customs Valuation databases as a risk 
management and analysis tool, including possible methods of verification, and promote good 
practices with respect to the use of customs valuation databases. Participants may also discuss how the use of valuation databases can be supplemented through the use of other tools of 
customs control such as exchange of information among Customs administrations, post clearance 
audit etc. for verifying an import declaration where there are reasonable grounds to doubt its truth or accuracy. 
The workshop is without prejudice to and will no t implicate the specific practices of any Member, 
and will not result in any specific recommendations, outcomes, or next steps for the CCV. The workshop will be held outside the scope of the fo rmal session of CCV and will have no implication 
for the formal work program of the CCV, without the consent of Members.  Nothing in this proposal 
affects the rights and obligations of WTO Members.     G/VAL/72 
 
- 3 - 
 
  International organizations, including representa tives from the WTO Secretariat, World Customs 
Organization, and Technical Committee on Customs Valuation will be invited to present their organizations' work on databases, providing usef ul background for the discussion by drawing the 
link between institutional and legal frameworks and current practices.  
Drawing from this background, the ICC will be invited to present a private sector perspective on 
the use of customs valuation databases, raising awareness by providing a general outline of the challenges faced by exporters, as well as identifying potential best practices.  
A balanced representation of capital-based experts drawn from Africa, Asia, Europe, North and 
South America will be invited to share their experiences with the use of valuation databases. The presentations will be aimed at improving pa rticipants' understanding of current practices, 
including challenges faced, with a view to improving institutional and infrastructural knowledge 
and capacity with respect to best practices in customs valuation.  
iv. Provisional Agenda  
9:30 Welcoming remarks (15 minutes) 
 Chair of the CCV  
 Director of the Market Access Division of the WTO  
9:45 International Organizations Session (45 minutes) 
 WTO Secretariat 
 World Customs Organization 
 Technical Committee on Customs Valuation  
10:30  Private Sector Session (15 minutes) 
 International Chamber of Commerce 
10:45  Public Sector Session (100 minutes) 
 Capital-based experts drawn from Africa, Asia, Europe, North and South America  
13:30  Statements and questions from Members (50 minutes) 
v. Details 
Participation:  The workshop will be open to WTO Members, observers, and the ICC.  
Duration:  The workshop will last three hours taking place either in the morning immediately 
before, or the afternoon immediately fo llowing, the formal CCV meeting.  
Timing:  To promote greater capital based representation, the workshop is tentatively 
scheduled for Friday, 24 October immediately after the Technical Committee on 
Customs Valuation, scheduled for 20-23 October.  
Documents:  No specific documentation is proposed. Presenters will be encouraged, but not 
required, to provide their presentations and any other inputs in advance of the 
workshop. 
Venue:  Centre William Rappard, WTO, Geneva Further Details:  Any changes or clarifications to the provisional agenda and details listed above 
will be determined by Members through subsequent informal consultations of the CCV.  
__________