G/VAL/W/239  
4 October 2013  
(13-5350)  Page: 1/8  
Committee on Customs Valuation  Original: French  
 
  NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON IMPLEMENTATION OF 
ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
REPLIES BY CABO VERDE TO THE QUESTIONS FROM THE UNITED STATES 
 REGARDING DOCUMENT G/VAL/N/1/CPV/1 
CABO VERDE 
The following communication, dated 25 September 2013,  is being circulated at the request of the 
delegation of Cabo Verde. 
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 Question 1 
Chapter II: The provisions under Chapter II, wh ich seem to apply during the transitional 
period, raise questions in light of the requir ements of the CVA. Can Cabo Verde provide a 
time-frame for when the transition period w ill end and the post-transition period begin? 
Reply: 
The transition period ended on 31 December 2011 and implementation of the GATT valuation 
system commenced on 1 January 2012, pursuant to Order  No. 51/2011 of 30 December 2011. 
Question 2 
Article 11: Can Cabo Verde clarify whether the "day of registration" is the date 
of exportation or the date of importation? Is the rate of exchange that is used the rate 
published by Cabo Verde authorities, as required by Article 9 of the CVA? 
Reply: 
The "day of registration" is the date on which the customs declaration is registered at the relevant 
customs station. The conversion rate is the rate of  exchange on the day in question, as established 
by the Bank of Cabo Verde (Central Bank). 
 Question 3 
Article 256(1): Can Cabo Verde explain how the document of proof of origin is evidence 
of declared value? 
Reply: 
The rationale for this question is a mistake in the notified translation of the Code. The corrected 
translation of Article 256(1) reads as follows: 
"Article 256: Supplementary information. (1)  Where the customs authorities have 
reason to doubt the accuracy or authenticity of the information or documents submitted to 
substantiate the declared value, they may request the importer to provide additional 
evidence, including documents or other elements of proof certifying that the declared value G/VAL/W/239 
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  corresponds to the total amount actually paid or payable for the imported goods, as 
adjusted in accordance with the provisions of Article 262 of this Code." 
Question 4  
Article 260(2)(d): Per Article 1(d) of the CVA, this provision should refer to 
paragraphs 2 and 4 of Article 264. 
Reply: 
Cabo Verde agrees with this comment. The reference to paragraph 4 of Article 264 will be added to 
the text during a future review of the Code. 
Question 5 Article 261(1): Can Cabo Verde further descri be what is considered a "pre-condition 
of sale"? 
Reply: 
This is clarified in the corrected translation of Article 261(1), which now reads as follows: 
"Article 261 - Price actually paid or payable: (1)  The price actually paid or payable is the 
total payment made or to be made by the buyer to the seller or representative thereof 
in exchange for the imported goods and includes all payments made or to be made by the buyer, as a condition for the sale of the imported goods, or to a third party to meet 
an obligation of the seller." 
Question 6 Article 262(a): Can Cabo Verde explain how the cost of brokerage will be included in the 
price actually paid or payable for the goods per the CVA? 
Reply: 
These costs are included in the adjusted value when they appear on the invoice accompanying the 
detailed declaration form or in the company accounts in the event of an audit or ex-post control. 
Question 7 
Article 263: Can Cabo Verde explain how the charges listed in Article 263 will be 
accounted for in determining the price actu ally paid for the imported merchandise? 
Will they be deductions from the price actually paid, or will they be exclusions which are 
not added to the price actually paid or payable? 
Reply: 
They are exclusions which are not added to the price actually paid or payable . 
Question 8 
Article 264(4): Per Article 1(2)(b) of the CVA, this provision should refer to Article 260, 
rather than Article 270 and Article 273. 
Reply: 
Cabo Verde agrees with this comment and it will be reflected in the next review of the Code. 
In the meantime, an interim solution may be adopted by issuing internal instructions to the 
customs authorities. G/VAL/W/239 
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  Question 9 
Article 264(4)(b): Per Article 1(2)(b)(ii) of  the CVA, this provision should refer 
to Article 275 rather than Article 270 and Article 273. 
Reply: 
Cabo Verde agrees with this comment and it will be reflected in the next review of the Code. 
In the meantime, an interim solution may be adopted by issuing internal instructions to the customs authorities. 
Question 10 
Article 264(4)(c): Per Article 1(2)(b)(iii) of the CVA, th is provision should refer 
to Article 277 rather than Article 270 and Article 273. 
Reply: 
Cabo Verde agrees with this comment and it will be reflected in the next review of the Code. 
In the meantime, an interim solution may be adopted by issuing internal instructions to the customs authorities. 
Question 11 
Article 267(1): Can Cabo Verde explain how this  article can be reconciled with Article 4 
of the CVA, which states that the first th ree methods of customs valuation must be 
applied sequentially and that, at the request of the importer, only the sequence of the 
deductive value (Article 268(c)) and computed  value (Article 268(d)) may be reversed. 
Reply: 
This is clarified in the corrected translation of Article 267(1), which now reads as follows: 
 "Article 267 - Alternative methods: (1)  Where the customs value cannot be established 
in application of Article 260 of this Code, subpar agraphs (a), (b), (c) and (d) of the following 
article shall be reviewed in turn until the first applicable subparagraph is found, unless the 
order of subparagraphs (c) and (d) is reversed at the request of the declarant." 
Question 12 Article 268(c): Can Cabo Verde explain how this  article can be reconciled with Article 5 
of the CVA, which requires that value be base d on the unit price at  which the imported 
goods or identical or similar imported goods are sold "at or about the time of importation of the goods being valued" and that the value is subject to certain 
deductions. How does Article 268(c) relate to Article 275? 
Reply: 
The text of the Article is currently incomplete; its translation should read as follows: 
 "Article 268 -  Customs value under the preceding Article: (1)  The customs value 
established in application of the preceding article shall be: (c) The value based on the unit 
price at which the imported goods or identical or similar imported goods are sold in Cabo Verde, in the largest aggregate quantity, to persons not related to the sellers, at the time 
or on the closest date to that on which the goods to be valued were imported, subject to the 
deductions stated in Article 275." 
The full text will be reflected in the next revised version of the Code. In the meantime, with a view 
to the application of Article 5 of the Agreement,  an interim solution may be adopted by issuing 
internal instructions to the customs authorities. G/VAL/W/239 
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  Question 13 
Article 268(d)(iii): Per Articl e 6(c) of the CVA, Article 268(d)(iii) should refer to 
paragraph (1)(e) of Article 262 rather than paragraph (1). 
Reply: 
Correct. There is a lacuna in the notified translation. The published official text is in accordance 
with the Agreement. 
Question 14 
Article 270(3): Can Cabo Verde explain how this article is fully implementing Article 2(b) 
of the CVA? 
Reply: 
Article 2(b) of the CVA is implemented through the joint implementation of paragraphs 2 
and 3 of Article 270 of the notified Customs Code. 
Question 15 Article 270(4): Per Article 2(2) of th e CVA, Article 270(4) should refer to 
paragraph (1)(e) of Article 262 rather than paragraph (1). 
Reply: 
Cabo Verde agrees with this comment and it will be reflected in the next revised version of the 
Code. In the meantime, an interim solution may be adopted by issuing internal instructions to the 
customs authorities. 
Question 16 Article 271(2): Can Cabo Verde explain how this  article can be reconciled with the Note 
to Article 2 of the CVA, which explains that a valid price list is not a requirement but 
rather an example of evidence that can establish the reasonableness and accuracy of adjustments? 
Reply: 
This is clarified in the corrected translation of Article 271(2), which now reads as follows: 
 " Article 271 - Value adjustment: (2)  Adjustments reflecting differences in commercial 
level or quantity, whether they result in an increase in or a reduction of the value, must be 
based on evidence that clearly establishes their reasonableness and accuracy, such as current price lists for different commercial levels and quantities." 
Question 17 
Article 272(5): What is the difference be tween Article 272(5) and Article 272(4)? 
Reply: 
Article 272(4) defines similar goods and Article 272(5) defines terms of comparison in the absence 
of similar goods. 
 The corrected translation of these two paragraphs is as follows: G/VAL/W/239 
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   " Article 272  - Similar goods: (4)  Goods shall be deemed to be similar only if they were 
produced in the same country as the goods to be valued. (5) Goods produced by different 
entities may be compared only where there are no similar goods produced by the entity that 
produced the goods to be valued." 
Question 18 
Article 273(2): Can Cabo Verde explain ho w this article can be reconciled with 
Article 3(1)(b) of the CVA, which requires the use, in determining the customs value, 
of the transaction value of similar goods in a sale at the same commercial level 
and in substantially the same quantity as the goods being valued? 
Reply: 
This is clarified in the corrected translation of Article 273(2), which now reads as follows: 
 " Article 273  - Transaction value of similar goods: (2) In applying the provisions of this 
article, the customs value shall be calculated on  the basis of the transaction value of similar 
goods sold at the same commercial level and in the same quantity as the goods 
to be valued." 
Question 19 Article 273(3): Can Cabo Verde explain how this article implements Article 3(1)(b) 
of the CVA, that where no sale at the same  commercial level and in substantially the 
same quantity as the goods being valued is found, the transaction value of similar goods 
sold at a different commercial level and/or in  different quantities, adjusted to take 
account of differences attributable to commerc ial level and/or to qu antity, shall be used, 
provided that such adjustments can be made  on the basis of demonstrated evidence 
which clearly establishes the reasonableness and accuracy of the adjustment, whether 
the adjustment leads to an increa se or a decrease in the value? 
Reply: 
This is clarified in the corrected translation of Article 273(3), which now reads as follows: 
"Article 273  - Transaction value of similar goods: (3)  In the absence of such sales, the 
transaction value of similar goods sold at different commercial levels or in different 
quantities, adjusted to reflect the differences in those commercial levels or quantities, shall be used, provided that such adjustments, regardless of whether they result in an increase or a decrease in the value, are based on reasonable and accurate evidence." 
Question 20 
Article 274(2): Can Cabo Verde explain how this  article can be reconciled with the Note 
to Article 3 of the CVA, which explains that a valid price list is not a requirement but 
rather is provided as an example of evidence that can establish the reasonableness 
and accuracy of adjustments? 
Reply: 
This is clarified in the corrected translation of Article 274(2), which now reads as follows: 
"Article 274 - Value adjustment: (2)  Adjustments reflecting differences in commercial 
level or quantity, regardless of whether they result in an increase in or a reduction of the value, shall be based on evidence that clearly establishes their reasonableness 
and accuracy, such as current price lists for different commercial levels and quantities." G/VAL/W/239 
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  Question 21 
Article 275(2): Can Cabo Verde explain ho w this article can be reconciled with 
Article 5(b) of the CVA, which requires that if neither the imported  goods nor identical 
nor similar imported goods are sold at or about the time of importation of the goods 
being valued, the customs value should be base d on the unit price at which the imported 
goods or identical or similar imported goods are sold in the country of importation in the 
condition as imported at the earliest date  after the importation of the goods being 
valued but "before the expiration of 90 days after such importation"? 
Reply: 
This is clarified in the corrected translation of Article 275(2), which now reads as follows: 
"Article 275 -  Deductive method: (2)  In the event that the imported goods, or identical 
or similar imported goods, are not sold at or near the time of their importation, the customs 
value shall be based, subject to the provisions of the preceding paragraph, on the unit price 
at which the imported goods or identical or similar goods have been sold in Cabo Verde 
in the same state and at the closest date to that on which the goods to be valued were 
imported and, in any case, within 90 days of  the date on which they were imported." 
Question 22 
Article 275(3): Can Cabo Verde reconcile this  article with Article 5(2) of the CVA, 
which clarifies that this provision applies upon request to imported goods that are 
further processed? 
Reply: 
This is clarified in the corrected translation of Article 275(3), which now reads as follows: 
"Article 275 - Deductive method: (3)  Where neither the imported goods nor identical 
or similar imported goods have been sold in Cabo Verde in the state in which they were 
imported, the customs value shall, upon written application from the importer, be based on 
the unit price at which the highest aggregated quantity of the imported goods has been sold after subsequent manufacturing or processing , taking the value added by the subsequent 
manufacturing or processing and the deductions envisaged in paragraph 1 into account, 
provided that the sale was made in Cabo Verde and to persons not related to the seller." 
Question 23 Article 277: "Estimated value" should be "computed value". 
Reply: 
Correct, that is what is written in the published official version. The translation "estimated value" 
instead of "computed value" is not accurate. 
Question 24 
Article 278: "1944 General Agreement on Tariffs and Trade" should be corrected 
to indicate "1994 General Agr eement on Tariffs and Trade". 
Reply: 
Correct, that is what is written in the published official version. The translation is not accurate. G/VAL/W/239 
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  Question 25 
Article 311: Are the information and decision s discussed in this article communicated 
to the applicant in writing? 
Reply: 
Yes. Question 26 Please indicate which article implements Arti cle 7(2) of the CVA concerning the fall-back 
method of valuation. 
Reply: 
Article 278  - Last Recourse. 
Question 27 
Please indicate which article implements Article 11 of the CVA concerning appeals. 
Reply: 
See Article 614. Appeals are governed by Title VII - Customs Technical Litigation, 
Articles 614 to 641 . 
Question 28 Please indicate when all of the Interpreta tive Notes to the CVA will be implemented 
(e.g. paragraphs 1 and 2 of the Note to Ar ticle 2; paragraphs 6 and 7 of the Note 
to Article 5; the Notes to Articles 6 and 7). 
Reply: 
The draft Regulations to the Customs Code were recently approved by the Government and will 
subsequently be promulgated and published in order to enter into force. 
 Question 29 
 
Is Article 12 of the CVA concerning admini strative rulings implemented by Article 635 
of the Code? Please specify which article requ ires the publication of laws, regulations, 
judicial decisions, and administrati ve rulings of general application. 
Reply: 
Yes, Article 12 of the CVA concerning administrati ve rulings is implemented by Article 635 of the 
Code. With regard to the Regulations as a whole, it was Legislative Decree No. 4/2010 
of 3 June 2010 which approved the Customs Code. 
Question 30 Please indicate which article implements Article 13 of the CVA concerning provision 
of a surety by the importer for the release of goods. G/VAL/W/239 
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  Reply: 
See Article 637, the translation of which is as follows: 
"Article 637  - Removal of goods: (1) Once all the evidence required for settlement of the 
dispute is available, the contesting party may remove disputed goods whose importation is 
not prohibited from the customs office by pres enting a guarantee of payment of the higher 
customs duties and other charges. Where tax lia bility is presumed, the guarantee shall also 
include an amount deemed sufficient to discharge that liability. (2) Identical goods which 
require or will require clearance shall be subj ect as appropriate to the provisions of the 
preceding paragraph if the interested parties pr efer not to await the final decision of the 
competent authorities. (3) For the purposes set out in paragraph 2 of this article, the 
customs office where the dispute arose shall inform the other fiscal offices immediately." 
Question 31 
Please indicate which article implements Articl e 16 of the CVA concerning the right of an 
importer to a written explanation by the customs authority as to the determination 
of the customs value of a good. 
Reply: 
Article 311. 
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