G/VAL/N/1/COL/3
19 November 2014
(14-6771)  Page: 1/115
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 
COLOMBIA  
The following communication, dated 26 August 2014, is being circulated at the request of the 
delegation of Colombia. 
_______________ 
 The Government of Colombia hereby notifies the application of the following regulations of the 
Andean Community: 
1. Decision No. 571  of the Commission of the Andean Community of 12 December 2003, 
Customs Valuation of Imported Goods (Annex 1). 
2. Resolution No. 1239  o f  t h e  C o m m i s s i o n  o f  t h e  A n d e a n  C o m m u n i t y  o f  2 9  M a y  2 0 0 9  
(Annex 2). This Resolution superseded Resolutions Nos. 1112 and 1137. 
Resolution No. 1684 mentioned below annulled paragraphs 3 and 7 of Resolution No. 1239. 
3. Resolution No. 1379  of the Commission of the Andean Community of 5 November 2010 
(Annex 3). This Resolution was subsequently amended by Resolution No. 1574 of the 
Commission of the Andean Community of 7 May 2013 (Annex 4). 
4. Resolution No. 1456 of the Commission of the Andean Community of 28 February 2012 
(Annex 5). This Resolution superseded Resolution No. 961 (special cases). 
5. Resolution No. 1684  of the Commission of the Andean Community of 23 May 2014, 
Community Regulations implementing Decision  No. 571, Customs Valuation of Imported 
Goods (Annex 6). This Resolution replaces Resolutions Nos. 846 and 1486 of the 
Commission of the Andean Community. 
_______________ 
 G/VAL/N/1/COL/3 
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  ANNEX 1 
DECISION NO. 571 - CUSTOMS VALUATION OF IMPORTED GOODS 
THE COMMISSION OF THE ANDEAN COMMUNITY, 
CONSIDERING: Article 58 of the Cartagena Agreement; Decisions Nos. 378 on Customs 
Valuation, 379 on the Andean Customs Value Declaration and 521 on amendment of Decision 
No. 378; and 
WHEREAS: The Andean regulations on customs valuation were adopted by Decisions Nos. 378 
and 379, taking into account the "Agreement on Implementation of Article VII of the General 
Agreement on Tariffs and Trade 1994" of the Wo rld Trade Organization (WTO Customs Valuation 
Agreement), and the Andean Customs Value Declaration (DAV) form was created; 
The member countries of the Andean Communi ty are also Members of the World Trade 
Organization and are therefore bound to a pply the WTO Customs Valuation Agreement; 
The member countries of the Andean Community are also members of the World Customs 
Organization (WCO); 
It is necessary to implement harmonized legislation setting out the provisions on determining the 
customs value of goods imported into the customs territory of the Andean Community; 
For proper implementation of the WTO Customs Valuation Agreement, sufficient information 
enabling the elements of commercial transactions in imported goods to be known is needed in 
order to determine the customs value; 
In order to ensure proper and uniform implementation of this Decision, provision has to be made 
for the adoption of its implementing regulations; 
At its XIth Meeting, the Andean Presidential Council instructed the Commission of the Andean 
Community, in coordination with the Council on Customs Matters, to approve rules to enable flexible and streamlined customs procedures to be determined consistent with the level of progress 
in the expanded subregional market; 
With a view to complying with this mandate from the Andean Presidential Council, and with the 
objective of establishing the Andean Common Market by 2005 at the latest, it is necessary 
to replace Andean Decisions Nos. 378, 379 and 521 of the Commission; 
The General Secretariat has submitted its Proposal 92/Rev.2 on the customs valuation 
of imported goods; 
HEREBY DECIDES: 
Chapter I: Scope 
Article 1: Legal basis For the purposes of customs valuation, the member countries of the Andean Community shall be 
governed by the provisions in the "Agreement on  Implementation of Article VII of the General 
Agreement on Tariffs and Trade 1994", hereinafter the "WTO Customs Valuation Agreement" attached to this Decision, by this Decision and by its Community implementing regulations to be 
adopted for this purpose in a Resolution by the General Secretariat. G/VAL/N/1/COL/3 
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  Chapter II: Determination of the customs value 
Article 2: Customs value The customs value of imported goods shall be determined according to the methods laid down 
in Articles 1 to 7 of the WTO Customs Valuation Agreement and its respective Interpretative Notes, 
taking into account the general guidelines in the Agreement itself, in this Decision and its 
implementing regulations. 
Article 3: Methods for determining customs value 
Pursuant to the provisions in the WTO Custom s Valuation Agreement, the following are the 
methods to be used to determine the customs value or the taxable base for the payment of import duties and taxes: 
1. First method:   Transaction value of imported goods 
2. Second method:   Transaction value of identical goods 
3. Third method:   Transaction value of similar goods 4. Fourth method   Deductive value 
5. Fifth method:  Computed value 
6. Sixth method:   "Fall-back" 
Article 4: Order of application of the methods 
In accordance with the General Note in Annex I to the WTO Customs Valuation Agreement, 
the methods indicated in the preceding Article sh all be applied in the order indicated therein. 
The transaction value of imported goods shall be the first basis used to determine their customs 
value and shall always be followed provided that the relevant requirements are met. 
The order of application of the methods indicated in numbers 4 and 5 of the preceding Article may 
be reversed, if requested by the importer and with the consent of the Customs Administration. 
Article 5: Application of Article 5.2 of the WTO Customs Valuation Agreement 
If the imported goods or identical or similar imported goods are not sold in the country 
of importation in the condition as imported, the method indicated in number 4 of Article 3 of this Decision shall be followed in accordance with Article 5.2 of the WTO Customs Valuation 
Agreement, whether or not requested by the importer, taking into account the Interpretative Note 
to Article 5 of the aforementioned Agreement. 
Chapter III: Delivery Costs 
Article 6: Elements to be included in the customs value 
All the elements indicated in Article 8.2 of th e WTO Customs Valuation Agreement concerning the 
cost of transport of the imported goods and the related cost of transporting the said goods to the port or place of importation, loading, unloading and handling charges associated with the transport 
of the imported goods to the port or place of importation, and the cost of insurance, shall form 
part of the customs value. 
The cost of unloading and handling at the place of importation into Andean Community Customs 
Territory shall not form part of the customs value provided that it is distinguished from the overall 
transport costs. 
If any of the aforesaid elements results free of ch arge for the buyer or importer, is provided using 
their own means or services, is not eligible or has not been duly substantiated by documents, the 
cost of delivery to the place of importation shall be included in the customs value, calculated 
according to the procedures, rates or payments customarily applicable to the same type of costs. If no information on such rates or payments is available, the transaction value shall not be used 
and the goods shall be valued using the subsequent methods indicated in Article 3 of this Decision. G/VAL/N/1/COL/3 
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  Article 7: Place of importation 
For the purpose of applying the adjustments for delivery costs mentioned in the preceding Article, 
irrespective of the customs regime applicable to the goods, the place of importation is the place of entry into Andean Community Customs Territory, namely, the place at which the goods are for the 
first time subject to customs formalities, mean ing the receipt and inspection of the transport 
documents at the time of arrival. 
Chapter IV: Declaration of the Customs Value 
Article 8: Andean Customs Value Declaration and its content 
The Andean Customs Value Declaration is a supporting document for the customs declaration 
of imported goods. It shall contain information re lating to the elements of fact and circumstances 
concerning the commercial transaction in imported goods that have determined the customs 
value declared. 
Article 9: Imposition of the Andean Customs Value Declaration The Customs Administrations of Andean Community member countries shall require the importer 
to produce the "Andean Customs Value Declaration (DAV)" in order to determine the customs 
value of the imported goods. The utilization and the format of the DAV shall be governed 
by a Resolution by the General Secretariat. 
Article 10: Simplified Declaration 
The Customs Administrations of Andean Communi ty member countries may authorize use of a 
simplified form for the declaration of value if the circumstances of the import transaction so warrant or if so provided for the customs declarat ion of the imported goods. The criteria and the 
procedure shall be set out in the Resolution of the General Secretariat of the Andean Community, 
which adopts the "Andean Customs Value Declarat ion", and in the provisions adopted for the 
customs declaration of imported goods. 
Article 11: Completion, signature and submission 
The Andean Customs Value Declaration shall be comp leted and signed by the importer or buyer of 
the goods; and if the domestic legislation of the member country so provides, by their legal 
representative or the person authorized to do so on their behalf. 
The Andean Customs Value Declaration shall be subm itted to the customs authority, together with 
the customs declaration of the imported goods, by the importer or by the person authorized to act 
on his/her behalf, as provided in domestic customs legislation. 
Article 12: Electronic declaration 
The Andean Customs Value Declaration may be submitted to the competent customs authority 
using an electronic data transmission system, in accordance with the provisions in domestic 
legislation. In such cases, all the information indicated in Article 8 of this Decision shall be 
forwarded. 
Electronic transmission of the Andean Customs Value Declaration shall take place simultaneously 
with the customs declaration of the imported goods,  by the importer or by the person authorized 
to act on his/her behalf, as provided in domestic customs legislation. 
The digital signature on the electronic declaration shall also be certified, as provided in domestic 
customs legislation. G/VAL/N/1/COL/3 
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  Article 13: Responsibilities 
Pursuant to Article 11 of this Decision, any pe rson completing and signing the Andean Customs 
Value Declaration shall be responsible for: 
(a) the truth, accuracy and completeness of the particulars given in the declaration of 
value; 
(b) the authenticity of the documents submitted in support of these particulars; and 
(c) the supply and submission of any additional information or document necessary 
to establish the customs value of the goods. 
Violation of the provisions in this Article shall be considered an administrative offence without 
prejudice to the relevant Community and domestic provisions on customs control and fraud. 
Chapter V: Customs Controls 
Article 14: Powers of the Customs Admini strations of Andean Community member 
countries 
Pursuant to Article 17 of the WTO Customs Valuation Agreement, in conjunction with the 
provisions in paragraph 6 of Annex III thereto, Customs Administrations of Andean Community 
member countries have the right to carry out the necessary controls and enquiries in order to ensure that the customs value declared as the taxable base is correct and has been determined in 
accordance with the criteria and requiremen ts in the WTO Customs Valuation Agreement. 
Article 15: Control of the customs value Taking into account the preceding Article, Customs Administrations shall bear general 
responsibility for valuation, which incudes, in addition to prior controls and those in the course of 
clearance, post-importation checks, controls, studies and enquiries in order to ensure the correct 
valuation of the goods imported. 
Article 16: Obligation to provide information 
Any person directly or indirectly concerned by import transactions for the goods in question or 
subsequent transactions concerning the same goods, as well as any person who has carried out any act at the Customs in relation to the customs declaration of the goods and the declaration of 
value, who is requested by the customs authority to provide information or proof for the purposes 
of customs valuation, shall provide these in a timely manner in the form and according to the terms laid down in domestic legislation. 
Article 17: Doubts concerning the trut h or accuracy of the value declared 
When a declaration has been submitted and the Customs Administration has reason to doubt the 
truth or accuracy of the value declared or the data or documents submitted in support of the 
declaration, the Customs Administration shall request the importers to provide written 
explanations, additional documents or proof to sh ow that the value declared represents the total 
amount actually paid or payable for the import ed goods, adjusted in accordance with the 
provisions in Article 8 of the WTO Customs Valuation Agreement. 
The customs value of the imported goods shall no t be determined by applying the transaction 
value method if the importer fails to respond to these requests or if the proof provided is inadequate or insufficient to prove the truth or accuracy of the value in the aforementioned way. G/VAL/N/1/COL/3 
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  Article 18: Burden of proof 
In determining the customs value, as well as in checks and enquiries by the Customs 
Administrations of Andean Community member countries concerning valuation, the burden of proof shall, in principle, lie with  the importer or buyer of the goods. 
If the importer and buyer are not the same person , the burden of proof shall lie with both the 
importer and the buyer of the imported goods; if the importer or buyer is a legal person, with its 
legal representative and the person authorized to act on its behalf. 
Article 19: Violations and penalties 
Customs violations with regard to customs valuation and the penalties applicable shall be defined 
and applied in accordance with the provisions in the domestic customs legislation of the Andean Community member country in which the offence is committed. 
Article 20: Administrative structures 
The national valuation services of the Customs of Andean Community member countries shall be 
given appropriate administrative structures with the powers and functions to enable them to fulfil 
their investigation responsibilities. 
Chapter VI: General Provisions 
Article 21: Currency 
The customs value of imported goods shall be de termined in the currency established by the 
member country. Where necessary, foreign currency shall be converted at the exchange rate prevailing on the date of acceptance of the customs declaration of the imported goods duly 
published by the competent authorities. 
When the exchange of information among member  countries and between them and the General 
Secretariat of the Andean Community has to be in United States dollars, conversion shall be governed by the provisions in this Article. 
Article 22: Implementing instruments 
When interpreting and implementing the value ru les in the WTO Customs Valuation Agreement, as 
set out in this Decision and its implementing regulations, the Decisions of the Committee on 
Customs Valuation of the World Trade Organization, together with the Advisory Opinions, 
Commentaries, Explanatory Notes, Case Studies and Studies by the Technical Committee on Customs Valuation of the World Customs Organization, shall be taken into account. 
Article 23: Dumping and subsidies 
The provisions in the WTO Customs Valuation Agreement's rules, and those contained in this 
Decision and its implementing regulations, shall not apply to combating dumping or remedying subsidization. The prevention or correction of distortions caused by their existence shall be 
resolved in accordance with the relevant Andean Community regulations and the WTO 
Agreements. 
Article 24: Preshipment inspection companies 
Preshipment inspection companies shall comply with the provisions in the World Trade 
Organization's Agreement on Preshipment Inspection. Accordingly, when Andean Community member countries utilize the services of such companies for goods to be valued, it shall be understood that their activities shall be limited to verifying the original price of the goods imported 
and not to determining their customs value. G/VAL/N/1/COL/3 
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  In accordance with the foregoing, the certifications issued by such companies shall not be binding 
for determination of the customs value and the price verified may be considered a risk indicator. 
Article 25: Data banks Andean Community member countries shall create data banks for the purpose of customs 
valuation to facilitate the proper application of the provisions of the WTO Customs Valuation 
Agreement. 
Utilization of data banks shall not lead to automatic rejection of the transaction value of the goods 
imported. It shall enable the values declared to be verified and risk indicators to be created in 
order to generate and substantiate the doubts referred to in Article 17 of this Decision for the control and development of programmes on studies and investigations on value. 
Likewise, the information in data banks may be used for application of the valuation methods 
indicated in Articles 2, 3 and 7 of the Agreement,  provided that the requirements for each method 
are met. 
Article 26: Mutual assistance and cooperation 
Member countries' customs authorities shall provide mutual assistance and cooperation 
in accordance with the relevant Community regulations. 
The assistance and cooperation envisaged shall lead  to broader exchange of information, including 
that contained in the data banks created pursua nt to the preceding Article, on a regular and 
updated basis, as well as the exchange of any ty pe of data or documents required in order to 
conduct studies or investigations on value. 
In accordance with the Ministerial Declaration and with paragraph 8.3 of the Ministerial Decision on 
implementation-related issues and concerns, both adopted during the IV
th Ministerial Conference of 
the WTO, held in Doha in November 2001, when  the customs administration of an importing 
member country has reasonable grounds to doubt the truth or accuracy of the declared value, 
it may seek assistance from the customs administration of an exporting member country on the 
value of the goods concerned In such cases, the exporting member country shall offer cooperation 
and assistance consistent with this Decision and with its domestic laws and procedures, including 
furnishing information on the export value of the goods concerned, bearing in mind the provisions 
in Article 10 of the WTO Customs Valuation Agreement. 
Article 27: Risk management and combating fraud Customs Administrations shall inform each other of cases detected concerning suppliers, importers 
or any person directly or indirectly related to international trade transactions or subsequent 
transactions concerning goods that have been the subject of proven fraudulent practices. For this 
purpose, the provisions adopted in decisions on combating fraud and on customs controls 
shall apply. 
Chapter VII: Final Provisions 
First. An Ad hoc group of government experts on customs valuation is hereby created within the 
Andean Committee on Customs Matters. It shall be composed of one regular member and one or 
more alternates from each member country and shall study technical issues raised by member countries, propose solutions to questions, problems or disputes arising with regard to the application of the valuation rules, recommend procedures for any special customs valuation cases 
and propose the updating of this Decision and of the Resolutions adopting its implementing 
regulations and the Andean Customs Value Declaration. 
Second. This Decision, together with the Resolutions adopting the Community regulations and the 
Andean Customs Value Declaration, shall be updated in the light of changes and priorities required 
for application of the rules contained in these provisions. G/VAL/N/1/COL/3 
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  Third. Decisions Nos. 378 and 521 are hereby repealed. Decision No. 379 will be repealed as soon 
as the General Secretariat's Resolution on the Andean Customs Value Declaration comes into effect. 
Fourth. This Decision shall come into force for member countries on the first day of January in the 
year 2004. 
Chapter VIII: Transitional Provisions 
First. Within a period not exceeding six calendar months from the date of entry into force of this 
Decision and subject to the opinion of the Committee on Customs Matters, the General Secretariat 
of the Andean Community shall adopt the Community's implementing regulations for this Decision and the Andean Customs Value Declaration by means of Resolutions. 
Second. Member countries which have already implemented national formats for the Declaration 
of Value and informatics applications for the said formats, both in the customs system and for 
foreign trade operators, may defer full application of  the provisions of Chapter IV of this Decision 
until 31 December 2005. 
Third. Inasmuch as the Andean Community is constituted as a Community customs territory, 
references in this Decision and in the Resolutions adopting the Community's implementing regulations on customs valuation of goods and the Andean Customs Value Declaration to the 
"Andean Community Customs Territory" shall be considered to mean the "Customs Territory of the 
importing member country". 
Done in the city of Lima, Peru, on the twelfth day of December in the year 
two thousand and three. 
 G/VAL/N/1/COL/3 
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  ANNEX 
AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE 
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
GENERAL INTRODUCTORY COMMENTARY 
1. The primary basis for customs value under this Agreement is "transaction value" as defined 
in Article 1. Article 1 is to be read together with Article 8 which provides, inter alia , for 
adjustments to the price actually paid or payable in cases where certain specific elements which 
are considered to form a part of the value for customs purposes are incurred by the buyer but are 
not included in the price actually paid or payable for the imported goods. Article 8 also provides for 
the inclusion in the transaction value of certain considerations which may pass from the buyer to the seller in the form of specified goods or services rather than in the form of money. Articles 2 
through 7 provide methods of determining the cu stoms value whenever it cannot be determined 
under the provisions of Article 1. 
2. Where the customs value cannot be determined under the provisions of Article 1 there 
should normally be a process of consultation between the customs administration and importer 
with a view to arriving at a basis of value under the provisions of Article 2 or 3. It may occur, for example, that the importer has information about the customs value of identical or similar 
imported goods which is not immediately available to the customs administration in the port of 
importation. On the other hand, the customs administration may have information about the customs value of identical or similar imported goods which is not readily available to the importer. A process of consultation between the two parties w ill enable information to be exchanged, subject 
to the requirements of commercial confidentiality,  with a view to determining a proper basis of 
value for customs purposes. 
3. Articles 5 and 6 provide two bases for determining the customs value where it cannot be 
determined on the basis of the transaction value of the imported goods or of identical or similar 
imported goods. Under paragraph 1 of Article 5 th e customs value is determined on the basis of 
the price at which the goods are sold in the condition as imported to an unrelated buyer in the 
country of importation. The importer also has the right to have goods which are further processed 
after importation valued under the provisions of Article 5 if the importer so requests. Under Article 6 the customs value is determined on the basis of the computed value. Both these methods present certain difficulties and because of this the importer is given the right, under the 
provisions of Article 4, to choose the order of application of the two methods. 
4. Article 7 sets out how to determine the customs value in cases where it cannot be 
determined under the provisions of any of the preceding Articles. 
Members,  
Having regard  to the Multilateral Trade Negotiations; 
Desiring  to further the objectives of GATT 1994 an d to secure additional benefits for the 
international trade of developing countries; 
Recognizing  the importance of the provisions of Article VII of GATT 1994 and desiring to 
elaborate rules for their application in order to provide greater uniformity and certainty in their implementation; 
Recognizing  the need for a fair, uniform and neutra l system for the valuation of goods for 
customs purposes that precludes the use of arbitrary or fictitious customs values; 
Recognizing  that the basis for valuation of goods for customs purposes should, to the 
greatest extent possible, be the transaction value of the goods being valued; G/VAL/N/1/COL/3 
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  Recognizing  that customs value should be based on simple and equitable criteria consistent 
with commercial practices and that valuation procedures should be of general application without distinction between sources of supply; 
Recognizing  that valuation procedures should not be used to combat dumping; 
Hereby agree as follows: 
PART I 
RULES ON CUSTOMS VALUATION 
Article 1  
1. The customs value of imported goods shall be  the transaction value, that is the price 
actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8, provided: 
(a) that there are no restrictions as to the disposition or use of the goods by the buyer 
other than restrictions which: 
(i) are imposed or required by law or by the public authorities in the country of 
importation; 
(ii) limit the geographical area in which the goods may be resold; or 
(iii) do not substantially affect the value of the goods; 
(b) that the sale or price is not subject to some condition or consideration for which a 
value cannot be determined with respect to the goods being valued; 
(c) that no part of the proceeds of any subsequent resale, disposal or use of the goods by 
the buyer will accrue directly or indirectly to the seller, unless an appropriate 
adjustment can be made in accordance with the provisions of Article 8; and 
(d) that the buyer and seller are not related, or where the buyer and seller are related, 
that the transaction value is acceptable for customs purposes under the provisions of 
paragraph 2. 
2. (a) In determining whether the transaction value is acceptable for the purposes of 
paragraph 1, the fact that the buyer and th e seller are related within the meaning of 
Article 15 shall not in itself be grounds for regarding the transaction value as 
unacceptable. In such case the circumstances surrounding the sale shall be examined and the transaction value shall be accepted provided that the relationship did not influence the price. If, in the light of information provided by the importer or 
otherwise, the customs administration has grounds for considering that the 
relationship influenced the price, it shall communicate its grounds to the importer and the importer shall be given a reasonable opportunity to respond. If the importer so 
requests, the communication of the grounds shall be in writing. 
(b) In a sale between related persons, the transaction value shall be accepted and the 
goods valued in accordance with the provisions of paragraph 1 whenever the importer 
demonstrates that such value closely approximates to one of the following occurring 
at or about the same time: 
(i) the transaction value in sales to unrelated buyers of identical or similar goods 
for export to the same country of importation; 
(ii) the customs value of identical or similar goods as determined under the 
provisions of Article 5; 
(iii) the customs value of identical or similar goods as determined under the 
provisions of Article 6; G/VAL/N/1/COL/3 
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  In applying the foregoing tests, due account shall be taken of demonstrated differences in 
commercial levels, quantity levels, the elements e numerated in Article 8 and costs incurred by the 
seller in sales in which the seller and the buyer are not related that are not incurred by the seller in sales in which the seller and the buyer are related. 
(c) The tests set forth in paragraph 2(b) are to be used at the initiative of the importer 
and only for comparison purposes. Substitute values may not be established under the provisions of paragraph 2(b). 
Article 2  
1. (a) If the customs value of the imported goods cannot be determined under the 
provisions of Article 1, the customs value shall be the transaction value of identical goods sold for export to the same country of importation and exported at or about the 
same time as the goods being valued. 
(b) In applying this Article, the transaction value of identical goods in a sale at the same 
commercial level and in substantially the same quantity as the goods being valued 
shall be used to determine the customs value. Where no such sale is found, the 
transaction value of identical goods sold at a different commercial level and/or in different quantities, adjusted to take account of differences attributable to commercial 
level and/or to quantity, 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 increase or a decrease in the value. 
2. Where the costs and charges referred to in paragraph 2 of Article 8 are included in the 
transaction value, an adjustment shall be made to take account of significant differences in such costs and charges between the imported goods and the identical goods in question arising from 
differences in distances and modes of transport. 
3. If, in applying this Article, more than one transaction value of identical goods is found, the 
lowest such value shall be used to determine the customs value of the imported goods. 
Article 3  
1. (a) If the customs value of the imported goods cannot be determined under the 
provisions of Articles 1 and 2, the customs value shall be the transaction value of similar goods sold for export to the same country of importation and exported at or 
about the same time as the goods being valued. 
(b) In applying this Article, 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 
shall be used to determine the customs value. Where no such sale 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 commercial 
level and/or to quantity, 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 increase or a decrease in the value. 
2. Where the costs and charges referred to in paragraph 2 of Article 8 are included in the 
transaction value, an adjustment shall be made to take account of significant differences in such costs and charges between the imported goods and the similar goods in question arising from 
differences in distances and modes of transport. 
3. If, in applying this Article, more than one transaction value of similar goods is found, 
the lowest such value shall be used to determine the customs value of the imported goods. G/VAL/N/1/COL/3 
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  Article 4  
If the customs value of the imported goods ca nnot be determined under the provisions of 
Articles 1, 2 and 3, the customs value shall be determined under the provisions of Article 5 or, when the customs value cannot be determined under that Article, under the provisions of Article 6 
except that, at the request of the importer, the order of application of Articles 5 and 6 shall 
be reversed. 
Article 5  
1. (a) If the imported goods or identical or similar imported goods are sold in the country of 
importation in the condition as imported, the customs value of the imported goods under the provisions of this Article shall be based on the unit price at which the imported goods or identical or similar imported goods are so sold in the greatest 
aggregate quantity, at or about the time of the importation of the goods being valued, 
to persons who are not related to the persons from whom they buy such goods, subject to deductions for the following: 
(i) either the commissions usually paid or agreed to be paid or the additions 
usually made for profit and general expenses in connection with sales in such country of imported goods of the same class or kind; 
(ii) the usual costs of transport and insurance and associated costs incurred within 
the country of importation; 
(iii) where appropriate, the costs and charges referred to in paragraph 2 
of Article 8; and 
(iv) the customs duties and other national taxes payable in the country 
of importation by reason of the importation or sale of the goods. 
(b) 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 shall, 
subject otherwise to the provisions of paragraph 1(a), be based 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. 
2. If neither the imported goods nor identical nor similar imported goods are sold in the 
country of importation in the condition as imported, then, if the importer so requests, the customs 
value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons in the country of importation who are not 
related to the persons from whom they buy such goods, due allowance being made for the value 
added by such processing and the deductions provided for in paragraph 1(a). 
Article 6  
1. The customs value of imported goods under the provisions of this Article shall be based on a 
computed value. Computed value shall consist of the sum of: 
(a) the cost or value of materials and fabrication or other processing employed in 
producing the imported goods; 
(b) an amount for profit and general expenses equal to that usually reflected in sales of 
goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the country of importation; 
(c) the cost or value of all other expenses necessary to reflect the valuation option chosen 
by the Member under paragraph 2 of Article 8. 
2. No Member may require or compel any person not resident in its own territory to produce 
for examination, or to allow access to, any account or other record for the purposes of determining 
a computed value. However, information supplied by  the producer of the goods for the purposes of 
determining the customs value under the provisions of this Article may be verified in another country by the authorities of the country of impo rtation with the agreement of the producer and G/VAL/N/1/COL/3 
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  provided they give sufficient advance notice to the government of the country in question and the 
latter does not object to the investigation. 
Article 7  
1. If the customs value of the imported goods cannot be determined under the provisions of 
Articles 1 through 6, inclusive, the customs value shall be determined using reasonable means 
consistent with the principles and general provisions of this Agreement and of Article VII of GATT 1994 and on the basis of data av ailable in the country of importation. 
2. No customs value shall be determined under the provisions of this Article on the basis of: 
(a) the selling price in the country of importation of goods produced in such country; 
(b) a system which provides for the acceptance for customs purposes of the higher 
of two alternative values; 
(c) the price of goods on the domestic market of the country of exportation; 
(d) the cost of production other than computed values which have been determined for 
identical or similar goods in accordance with the provisions of Article 6; 
(e) the price of the goods for export to a country other than the country of importation; 
(f) minimum customs values; or 
(g) arbitrary or fictitious values. 
3. If the importer so requests, the importer sh all be informed in writing of the customs value 
determined under the provisions of this Article and the method used to determine such value. 
Article 8  
1. In determining the customs value under the prov isions of Article 1, there shall be added to 
the price actually paid or payable for the imported goods: 
(a) the following, to the extent that they are in curred by the buyer but are not included in 
the price actually paid or payable for the goods: 
(i) commissions and brokerage, except buying commissions; 
(ii) the cost of containers which are treated as being one for customs purposes with 
the goods in question; 
(iii) the cost of packing whether for labour or materials; 
(b) the value, apportioned as appropriate, of  the following goods and services where 
supplied directly or indirectly by the buyer fr ee of charge or at reduced cost for use in 
connection with the production and sale for export of the imported goods, to the 
extent that such value has not been included in the price actually paid or payable: 
(i) materials, components, parts and similar items incorporated in the imported 
goods; 
(ii) tools, dies, moulds and similar items used in the production of the imported 
goods; 
(iii) materials consumed in the production of the imported goods; 
(iv) engineering, development, artwork, design work, and plans and sketches 
undertaken elsewhere than in the country of importation and necessary for the production of the imported goods; 
(c) royalties and licence fees related to the goods being valued that the buyer must pay, 
either directly or indirectly, as a condition of sale of the goods being valued, to the 
extent that such royalties and fees are not included in the price actually paid or payable; 
(d) the value of any part of the proceeds of an y subsequent resale, disposal or use of the 
imported goods that accrues directly or indirectly to the seller. G/VAL/N/1/COL/3 
- 14 - 
  2. In framing its legislation, each Member shall provide for the inclusion in or the exclusion 
from the customs value, in whole or in part, of the following: 
(a) the cost of transport of the imported goods to the port or place of importation; 
(b) loading, unloading and handling charges associated with the transport of the imported 
goods to the port or place of importation; and 
(c) the cost of insurance. 
3. Additions to the price actually paid or payable shall be made under this Article only on the 
basis of objective and quantifiable data. 
4. No additions shall be made to the price actually paid or payable in determining the customs 
value except as provided in this Article. 
Article 9  
1. Where the conversion of currency is necessary  for the determination of the customs value, 
the rate of exchange to be used shall be that duly published by the competent authorities of the 
country of importation concerned and shall reflect as effectively as possible, in respect of the 
period covered by each such document of public ation, the current value of such currency in 
commercial transactions in terms of the currency of the country of importation. 
2. The conversion rate to be used shall be that in effect at the time of exportation or the time 
of importation, as provided by each Member. 
Article 10  
All information which is by nature confidential or which is provided on a confidential basis for the 
purposes of customs valuation shall be treated as strictly confidential by the authorities concerned 
who shall not disclose it without the specific permission of the person or government providing 
such information, except to the extent that it ma y be required to be disclosed in the context of 
judicial proceedings. 
Article 11  
1. The legislation of each Member shall provide in regard to a determination of customs value 
for the right of appeal, without penalty, by the importer or any other person liable for the payment 
of the duty. 
2. An initial right of appeal without penalty may be to an authority within the customs 
administration or to an independent body, but the legislation of each Member shall provide for the right of appeal without penalty to a judicial authority. 
3. Notice of the decision on appeal shall be given to the appellant and the reasons for such 
decision shall be provided in writing. The appellant shall also be informed of any rights of further appeal. 
Article 12  
Laws, regulations, judicial decisions and administrative rulings of general application giving effect 
to this Agreement shall be published in conformi ty with Article X of GATT 1994 by the country of 
importation concerned. 
Article 13  
If, in the course of determining the customs valu e of imported goods, it becomes necessary to 
delay the final determination of such customs value, the importer of the goods shall nevertheless 
be able to withdraw them from customs if, wher e so required, the importer provides sufficient 
guarantee in the form of a surety, a deposit or some other appropriate instrument, covering the 
ultimate payment of customs duties for which the goods may be liable. The legislation of each 
Member shall make provisions for such circumstances. G/VAL/N/1/COL/3 
- 15 - 
  Article 14  
The notes at Annex I to this Agreement form an integral part of this Agreement and the Articles of 
this Agreement are to be read and applied in conj unction with their respective notes. Annexes II 
and III also form an integral part of this Agreement. 
Article 15 
1. In this Agreement: 
(a) "customs value of imported goods" means the value of goods for the purposes of 
levying ad valorem duties of customs on imported goods; 
(b) "country of importation" means country or customs territory of importation; and 
(c) "produced" includes grown, manufactured and mined. 
2. In this Agreement: 
(a) "identical goods" means goods which are the same in all respects, including physical 
characteristics, quality and reputation. Minor differences in appearance would not preclude goods otherwise conforming to the definition from being regarded 
as identical; 
(b) "similar goods" means goods which, althou gh not alike in all respects, have like 
characteristics and like component materials which enable them to perform the same 
functions and to be commercially interchangeable. The quality of the goods, 
their reputation and the existence of a trademark are among the factors to be considered in determining whether goods are similar; 
(c) the terms "identical goods" and "similar goods" do not include, as the case may be, 
goods which incorporate or reflect engineering, development, artwork, design work, 
and plans and sketches for which no adjustment has been made under paragraph 1(b)(iv) of Article 8 because such elements were undertaken in the country 
of importation; 
(d) goods shall not be regarded as "identical g oods" or "similar goods" unless they were 
produced in the same country as the goods being valued; 
(e) goods produced by a different person shall be taken into account only when there are 
no identical goods or similar goods, as the case may be, produced by the same person as the goods being valued. 
3. In this Agreement "goods of the same class or kind" means goods which fall within a group 
or range of goods produced by a particular indu stry or industry sector, and includes identical 
or similar goods. 
4. For the purposes of this Agreement, persons shall be deemed to be related only if: 
(a) they are officers or directors of one another's businesses; 
(b) they are legally recognized partners in business; 
(c) they are employer and employee; 
(d) any person directly or indirectly owns, controls or holds 5% or more of the 
outstanding voting stock or shares of both of them; 
(e) one of them directly or indirectly controls the other; 
(f) both of them are directly or indirectly controlled by a third person; 
(g) together they directly or indirectly control a third person; or 
(h) they are members of the same family. 
5. Persons who are associated in business with on e another in that one is the sole agent, sole 
distributor or sole concessionaire, however describ ed, of the other shall be deemed to be related 
for the purposes of this Agreement if they fall within the criteria of paragraph 4. G/VAL/N/1/COL/3 
- 16 - 
  Article 16  
Upon written request, the importer shall have the right to an explanation in writing from the 
customs administration of the country of importation as to how the customs value of the importer's goods was determined. 
Article 17  
Nothing in this Agreement shall be construed as restricting or calling into question the rights of 
customs administrations to satisfy themselves as to the truth or accuracy of any statement, 
document or declaration presented for customs valuation purposes. 
PART II 
ADMINISTRATION, CONSULTATIONS AND DISPUTE SETTLEMENT
1 
Article 18: Institutions 
1. There is hereby established a Committee on Customs Valuation (referred to in this 
Agreement as "the Committee") composed of representatives from each of the Members. The Committee shall elect its own Chairman and shall normally meet once a year, or as is 
otherwise envisaged by the relevant provisions of  this Agreement, for the purpose of affording 
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 or the 
furtherance of its objectives and carrying out such other responsibilities as may be assigned to it 
by the Members. The WTO Secretariat shall act as the secretariat to the Committee. 
2. There shall be established a Technical Committee on Customs Valuation (referred to in this 
Agreement as "the Technical Committee") under the auspices of the Customs Co-operation Council 
(referred to in this Agreement as "the CCC"), wh ich shall carry out the responsibilities described 
in Annex II to this Agreement and shall operate in accordance with the rules of procedure contained therein. 
Article 19: Consultations and Dispute Settlement 
1. Except as otherwise provided herein, the Di spute Settlement Understanding is applicable to 
consultations and the settlement of disputes under this Agreement. 
2. If any Member considers that any benefit accruing to it, directly or indirectly, under this 
Agreement is being nullified or impaired, or th at the achievement of any objective of this 
Agreement is being impeded, as a result of the actions of another Member or of other Members, 
it may, with a view to reaching a mutually satisfactory solution of this matter, 
request consultations with the Member or Members in question. Each Member shall afford 
sympathetic consideration to any request from another Member for consultations. 
3. The Technical Committee shall provide, upon  request, advice and assistance to Members 
engaged in consultations. 
4. At the request of a party to the dispute, or on its own initiative, a panel established to 
examine a dispute relating to the provisions of this Agreement may request the Technical 
Committee to carry out an examination of any questions requiring technical consideration. 
The panel shall determine the terms of reference of the Technical Committee for the particular 
dispute and set a time period for receipt of the report of the Technical Committee. The panel shall take into consideration the report of the Technical Committee. In the event that the Technical 
Committee is unable to reach consensus on a matter referred to it pursuant to this paragraph, 
the panel should afford the parties to the dispute an opportunity to present their views on the matter to the panel. 
                                               
1 In the GATT, the word " diferencias " in Spanish has the same meaning attributed to " controversias " in 
other organizations (this note only concerns the Spanish text). G/VAL/N/1/COL/3 
- 17 - 
  5. Confidential information provided to the panel shall not be disclosed without formal 
authorization from the person, body or authority providing such information. Where such information is requested from the panel but release of such information by the panel is not authorized, a non-confidential summary of this information, authorized by the person, body or 
authority providing the information, shall be provided. 
PART III 
SPECIAL AND DIFFERENTIAL TREATMENT 
Article 20  
1. Developing country Members not party to the Agreement on Implementation of Article VII 
of the General Agreement on Tariffs and Trade done on 12 April 1979 may delay application of the provisions of this Agreement for a period not exceed ing five years from the date of entry into force 
of the WTO Agreement for such Members. Developing country Members who choose to delay 
application of this Agreement shall notify th e Director-General of the WTO accordingly. 
2. In addition to paragraph 1, developing country Members not party to the Agreement 
on Implementation of Article VII of the Ge neral Agreement on Tariffs and Trade done 
on 12 April 1979 may delay application of paragraph 2( b)(iii) of Articl e 1 and Article 6 for a period 
not exceeding three years following their application of all other provisions of this Agreement. 
Developing country Members that choose to delay application of the provisions specified in this 
paragraph shall notify the Director-General of the WTO accordingly. 
3. Developed country Members shall furnish, on mu tually agreed terms, technical assistance to 
developing country Members that so request. On this basis developed country Members shall draw 
up programmes of technical assistance which may include, inter alia, training of personnel, 
assistance in preparing implementation measures, access to sources of information regarding customs valuation methodology, and advice on the a pplication of the provisions of this Agreement. 
PART IV 
FINAL PROVISIONS 
Article 21: Reservations 
Reservations may not be entered in respect of any of the provisions of this Agreement without the 
consent of the other Members. 
Article 22: National Legislation 
1. Each Member shall ensure, not later than the date of application of the provisions of this 
Agreement for it, the conformity of its laws, regulations and administrative procedures with the 
provisions of this Agreement. 
2. Each Member shall inform the Committee of any changes in its laws and regulations relevant 
to this Agreement and in the administration of such laws and regulations. 
Article 23: Review 
The Committee shall review annually the implementation and operation of this Agreement taking 
into account the objectives thereof. The Committe e shall annually inform the Council for Trade 
in Goods of developments during the period covered by such reviews. 
Article 24: Secretariat 
This Agreement shall be serviced by the WTO Secretariat except in regard to those responsibilities 
specifically assigned to the Te chnical Committee, which will be serviced by the CCC Secretariat. G/VAL/N/1/COL/3 
- 18 - 
  ANNEX I 
INTERPRETATIVE NOTES 
General Note 
Sequential Application of Valuation Methods 
1. Articles 1 through 7 define how the customs value of imported goods is to be determined 
under the provisions of this Agreement. The method s of valuation are set out in a sequential order 
of application. The primary method for customs valuation is defined in Article 1 and imported 
goods are to be valued in accordance with the pr ovisions of this Article whenever the conditions 
prescribed therein are fulfilled. 
2. Where the customs value cannot be determined und er the provisions of Article 1, it is to be 
determined by proceeding sequentially through the succeeding Articles to the first such Article 
under which the customs value can be determined. Except as provided in Article 4, it is only when 
the customs value cannot be determined under th e provisions of a particular Article that the 
provisions of the next Article in the sequence can be used. 
3. If the importer does not request that the or der of Articles 5 and 6 be reversed, the normal 
order of the sequence is to be followed. If th e importer does so request but it then proves 
impossible to determine the customs value under the provisions of Article 6, the customs value is 
to be determined under the provisions of Article 5, if it can be so determined. 
4. Where the customs value cannot be determined under the provisions of Articles 1 through 6 
it is to be determined under the provisions of Article 7. 
Use of Generally Accepted Accounting Principles 
1. "Generally accepted accounting principles" refers to the recognized consensus or substantial 
authoritative support within a country at a particular time as to which economic resources and obligations should be recorded as assets and liabilities, which changes in assets and liabilities 
should be recorded, how the assets and liabilities and changes in them should be measured, what 
information should be disclosed and how it should be disclosed, and which financial statements should be prepared. These standards may be broad guidelines of general application as well as 
detailed practices and procedures. 
2.  For the purposes of this Agreement, the customs administration of each Member shall 
utilize information prepared in a manner consistent with generally accepted accounting principles in the country which is appropriate for the Articl e in question. For example, the determination of 
usual profit and general expenses under the provis ions of Article 5 would be carried out utilizing 
information prepared in a manner consistent with generally accepted accounting principles of the country of importation. On the other hand, the determination of usual profit and general expenses 
under the provisions of Article 6 would be carried out utilizing information prepared in a manner 
consistent with generally accepted accounting principles of the country of production. As a further example, the determination of an element prov ided for in paragraph 1(b)(ii) of Article 8 
undertaken in the country of importation would be carried out utilizing information in a manner 
consistent with the generally accepted accounting principles of that country. 
Note to Article 1: 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 
or for the benefit of the seller for the imported goods. The payment need not necessarily take the 
f o r m  o f  a  t r a n s f e r  o f  m o n e y .  P a y m e n t  m a y  b e  m a d e  b y  w a y  o f  l e t t e r s  o f  c r e d i t  o r  n e g o t i a b l e  instruments. Payment may be made directly or indirectly. An example of an indirect payment 
would be the settlement by the buyer, whether in wh ole or in part, of a debt owed by the seller. 
2. Activities undertaken by the buyer on the buyer's own account, other than those for which 
an adjustment is provided in Article 8, are not considered to be an indirect payment to the seller, G/VAL/N/1/COL/3 
- 19 - 
  even though they might be regarded as of benefit to the seller. The costs of such activities shall 
not, therefore, be added to the price actually pa id or payable in determining the customs value. 
3. The customs value shall not include the follow ing charges or costs, provided that they are 
distinguished from the price actually paid or payable for the imported goods: 
(a) charges for construction, erection, assembly, maintenance2 or technical assistance, 
undertaken after importation on imported goods such as industrial plant, machinery or equipment; 
(b) the cost of transport after importation; 
(c) duties and taxes of the country of importation. 
4. The price actually paid or payable refers to the price for the imported goods. Thus the flow 
of dividends or other payments from the buyer to the seller that do not relate to the imported 
goods are not part of the customs value. 
Paragraph 1(a)(iii ) 
Among restrictions which would not render a price actually paid or payable unacceptable are 
restrictions which do not substantially affect the value of the goods. An example of such 
restrictions would be the case where a seller requires a buyer of automobiles not to sell or exhibit them prior to a fixed date which represents the beginning of a model year. 
Paragraph 1(b ) 
1. If the sale or price is subject to some condition or consideration for which a value cannot be 
determined with respect to the goods being valued, the transaction value shall not be acceptable for customs purposes. Some examples of this include: 
(a) the seller establishes the price of the imported goods on condition that the buyer will 
also buy other goods in specified quantities; 
(b) the price of the imported goods is dependent upon the price or prices at which the 
buyer of the imported goods sells other goods to the seller of the imported goods; 
(c) the price is established on the basis of a fo rm of payment extraneous to the imported 
goods, such as where the imported goods are semi-finished goods which have been 
provided by the seller on condition that the seller will receive a specified quantity of 
the finished goods. 
2. However, conditions or considerations relating to the production or marketing of the 
imported goods shall not result in rejection of the transaction value. For example, the fact that the 
buyer furnishes the seller with engineering and plans undertaken in the country of importation 
shall not result in rejection of the transaction value for the purposes of Article 1. Likewise, if the buyer undertakes on the buyer's own account, even though by agreement with the seller, activities 
relating to the marketing of the imported goods, the value of these activities is not part of the 
customs value nor shall such activities result in rejection of the transaction value. 
Paragraph 2  
1. Paragraphs 2(a) and 2(b) provide different means of establishing the acceptability 
of a transaction value. 
                                               
2 By means of an Act published by  the Director-General of the WTO in document WT/Let/147, the word 
"entretenimiento " in Spanish was officially corrected and the correction " mantenimiento" was included in the 
authenticated text of the Agreement. G/VAL/N/1/COL/3 
- 20 - 
  2. Paragraph 2(a) provides that where the buye r and the seller are related, the circumstances 
surrounding the sale shall be examined and the tran saction value shall be accepted as the customs 
value provided that the relationship did not influenc e the price. It is not intended that there should 
be an examination of the circumstances in all cases where the buyer and the seller are related. 
Such examination will only be required where there are doubts about the acceptability of the price. 
Where the customs administration have no doubts about the acceptability of the price, it should be accepted without requesting further information from the importer. For example, the customs 
administration may have previously examined the relationship, or it may already have detailed 
information concerning the buyer and the seller, and may already be satisfied from such examination or information that the relationship did not influence the price. 
3. Where the customs administration is unable to  accept the transaction value without further 
inquiry, it should give the importer an opportunity to supply such further detailed information as 
may be necessary to enable it to examine the circumstances surrounding the sale. In this context, the customs administration should be prepared to examine relevant aspects of the transaction, 
including the way in which the buyer and seller organize their commercial relations and the way in 
which the price in question was arrived at, in order to determine whether the relationship influenced the price. Where it can be shown that  the buyer and seller, although related under the 
provisions of Article 15, buy from and sell to each other as if they were not related, this would 
demonstrate that the price had not been influenced  by the relationship. As an example of this, 
if the price had been settled in a manner consis tent with the normal pricing practices of the 
industry in question or with the way the seller settles prices for sales to buyers who are not related 
to the seller, this would demonstrate that the price had not been influenced by the relationship. 
As a further example, where it is shown that the price is adequate to ensure recovery of all costs plus a profit which is representative of the firm's overall profit realized over a representative period 
of time (e.g. on an annual basis) in sales of goods of the same class or kind, this would 
demonstrate that the price had not been influenced. 
4. Paragraph 2(b) provides an opportunity for th e importer to demonstrate that the transaction 
value closely approximates to a "test" value previously accepted by the customs administration 
and is therefore acceptable under the provisions of Article 1. Where a test under paragraph 2(b) is met, it is not necessary to examine the question of influence under paragraph 2(a). If the customs administration has already sufficient info rmation to be satisfied, without further detailed 
inquiries, that one of the tests provided in paragraph 2(b) has been met, there is no reason for it 
to require the importer to demonstrate that the test can be met. In paragraph 2(b) the term 
"unrelated buyers" means buyers who are not related to the seller in any particular case. 
Paragraph 2(b ) 
A number of factors must be taken into consideration in determining whether one value "closely 
approximates" to another value. These factors include the nature of the imported goods, 
the nature of the industry itself, the season in which the goods are imported, and, whether the 
difference in values is commercially significant. Since these factors may vary from case to case, it would be impossible to apply a uniform standard such as a fixed percentage, in each case. For example, a small difference in value in a case involving one type of goods could be 
unacceptable while a large difference in a case involving another type of goods might be 
acceptable in determining whether the transaction value closely approximates to the "test" values set forth in paragraph 2(b) of Article 1. 
Note to Article 2 
1. In applying Article 2, the customs administra tion shall, wherever possible, use a sale of 
identical goods at the same commercial level and in substantially the same quantities as the goods 
being valued. Where no such sale is found, a sale of identical goods that takes place under any 
one of the following three conditions may be used: 
(a) a sale at the same commercial level but in different quantities; 
(b) a sale at a different commercial level but in substantially the same quantities; or 
(c) a sale at a different commercial level and in different quantities. G/VAL/N/1/COL/3 
- 21 - 
  2. Having found a sale under any one of these three conditions adjustments will then be made, 
as the case may be, for: 
(a) quantity factors only; 
(b) commercial level factors only; or 
(c) both commercial level and quantity factors. 
3. The expression "and/or" allows the flexib ility to use the sales and make the necessary 
adjustments in any one of the three conditions described above. 
4. For the purposes of Article 2, the transact ion value of identical imported goods means a 
customs value, adjusted as provided for in pa ragraphs 1(b) and 2, which has already been 
accepted under Article 1. 
5. A condition for adjustment because of different commercial levels or different quantities is 
that such adjustment, whether it leads to an increase or a decrease in the value, be made only on 
the basis of demonstrated evidence that clearl y establishes the reasonableness and accuracy of 
the adjustments, e.g. valid price lists containing prices referring to different levels or different 
quantities. As an example of this, if the import ed goods being valued consist of a shipment of 
10 units and the only identical imported goods for which a transaction value exists involved a sale of 500 units, and it is recognized that the seller grants quantity discounts, the required adjustment 
may be accomplished by resorting to the seller's price list and using that price applicable to a sale 
of 10 units. This does not require that a sale had to  have been made in quantities of 10 as long as 
the price list has been established as being bona  fide through sales at other quantities. In the 
absence of such an objective measure, however,  the determination of a customs value under the 
provisions of Article 2 is not appropriate. 
Note to Article 3 
1. In applying Article 3, the customs administra tion shall, wherever possible, use a sale of 
similar goods at the same commercial level and in substantially the same quantities as the goods 
being valued. Where no such sale is found, a sale of similar goods that takes place under any one of the following three conditions may be used: 
(a) a sale at the same commercial level but in different quantities; 
(b) a sale at a different commercial level but in substantially the same quantities; or 
(c) a sale at a different commercial level and in different quantities. 
2. Having found a sale under any one of these three conditions adjustments will then be made, 
as the case may be, for: 
(a) quantity factors only; 
(b) commercial level factors only; or 
(c) both commercial level and quantity factors. 
3. The expression "and/or" allows the flexib ility to use the sales and make the necessary 
adjustments in any one of the three conditions described above. 
4. For the purpose of Article 3, the transaction value of similar imported goods means 
a customs value, adjusted as provided for in paragraphs 1(b) and 2, which has already been 
accepted under Article 1. 
5. A condition for adjustment because of different commercial levels or different quantities is 
that such adjustment, whether it leads to an increase or a decrease in the value, be made only on 
the basis of demonstrated evidence that clea rly establishes the reasonableness and accuracy 
of the adjustment, e.g. valid price lists containing prices referring to different levels or different 
quantities. As an example of this, if the imported goods being valued consist of a shipment 
of 10 units and the only similar imported goods for which a transaction value exists involved a sale of 500 units, and it is recognized that the seller grants quantity discounts, the required adjustment 
may be accomplished by resorting to the seller's price list and using that price applicable to a sale 
of 10 units. This does not require that a sale had to  have been made in quantities of 10 as long as G/VAL/N/1/COL/3 
- 22 - 
  the price list has been established as being bona  fide through sales at other quantities. In the 
absence of such an objective measure, however,  the determination of a customs value under the 
provisions of Article 3 is not appropriate. 
Note to Article 5 
1. The term "unit price at which ... goods are sold in the greatest aggregate quantity" means 
the price at which the greatest number of units is sold in sales to persons who are not related to the persons from whom they buy such goods at the first commercial level after importation at 
which such sales take place. 
2. As an example of this, goods are sold from a price list which grants favourable unit prices for 
purchases made in larger quantities. 
Sale quantity Unit Price Number of sales Total quantity sold 
 at each price  
1-10 units 100 10 sales of 5 units 
5 sales of 3 units 65 
11 -25 units 95 5 sales of 11 units 55 
Over 25 units 90 1 sale of 30 units 
1 sale of 5 units 80 
 
The greatest number of units sold at a price is 80; therefore, the unit price in the greatest 
aggregate quantity is 90. 
3. As another example of this, two sales occur. In the first sale 500 units are sold at a price of 
95 currency units each. In the second sale 400 units are sold at a price of 90 currency units each. In this example, the greatest number of units sold  at a particular price is 500; therefore, the unit 
price in the greatest aggregate quantity is 95. 
4. A third example would be the following situ ation where various quantities are sold at 
various prices. 
(a) Sales 
Sale quantity Unit price 
40 units 100 
30 units 90 
15 units 100 
50 units 95 
25 units 105 
35 units 90 
5 units 100 
 
(b) Totals 
Total quantity sold Unit price 
65 90 
50 95 
60 100 
25 105 
 In this example, the greatest number of units sold  at a particular price is 65; therefore, the unit 
price in the greatest aggregate quantity is 90. 
5. Any sale in the importing country, as described in paragraph 1 above, to a person who 
supplies directly or indirectly free of charge or at reduced cost for use in connection with the 
production and sale for export of the imported goods any of the elements specified in 
paragraph 1(b) of Article 8, should not be taken into account in establishing the unit price for the purposes of Article 5. G/VAL/N/1/COL/3 
- 23 - 
  6. It should be noted that "profit and general expenses" referred to in paragraph 1 of Article 5 
should be taken as a whole. The figure for the purp oses of this deduction should be determined on 
the basis of information supplied by or on behalf of the importer unless the importer's figures are 
inconsistent with those obtained in sales in the country of importation of imported goods of the 
same class or kind. Where the importer's figures are inconsistent with such figures, the amount for 
profit and general expenses may be based upon relevant information other than that supplied by or on behalf of the importer. 
7. The "general expenses" include the direct and indirect costs of marketing the goods in 
question. 
8. Local taxes payable by reason of the sale of the goods for which a deduction is not made 
under the provisions of paragraph 1(a)(iv) of Arti cle 5 shall be deducted under the provisions of 
paragraph 1(a)(i) of Article 5. 
9. In determining either the commissions or th e usual profits and general expenses under the 
provisions of paragraph 1 of Article 5, the question whether certain goods are "of the same class 
or kind" as other goods must be determined on a case-by-case basis by reference to the 
circumstances involved. Sales in the country of importation of the narrowest group or range of imported goods of the same class or kind, which includes the goods being valued, for which the 
necessary information can be provided, should be examined. For the purposes of Article 5, "goods 
of the same class or kind" includes goods impo rted from the same country as the goods being 
valued as well as goods im ported from other countries. 
10. For the purposes of paragraph 1(b) of Articl e 5, the "earliest date" shall be the date by 
which sales of the imported goods or of identical or similar imported goods are made in sufficient 
quantity to establish the unit price. 
11. Where the method in paragraph 2 of Article 5 is used, deductions made for the value added 
by further processing shall be based on objective and quantifiable data relating to the cost of such 
work. Accepted industry formulas, recipes, methods of construction, and other industry practices would form the basis of the calculations. 
12. It is recognized that the method of valuation provided for in paragraph 2 of Article 5 would 
normally not be applicable when, as a result of the further processing, the imported goods lose their identity. However, there can be instances wher e, although the identity of the imported goods 
is lost, the value added by the processing can be determined accurately without unreasonable 
difficulty. On the other hand, there can also be instances where the imported goods maintain their 
identity but form such a minor element in the good s sold in the country of importation that the use 
of this valuation method would be unjustified. In view of the above, each situation of this type 
must be considered on a case-by-case basis. 
Note to Article 6 
1. As a general rule, customs value is determined under this Agreement on the basis of 
information readily available in the country of importation. In order to determine a computed 
value, however, it may be necessary to examin e the costs of producing the goods being valued 
and other information which has to be obtained from outside the country of importation. Furthermore, in most cases the producer of th e goods will be outside the jurisdiction of the 
authorities of the country of importation. The use of the computed value method will generally be 
limited to those cases where the buyer and seller are related, and the producer is prepared to 
supply to the authorities of the country of importation the necessary costings and to provide 
facilities for any subsequent veri fication which may be necessary. 
2. The "cost or value" referred to in paragraph 1(a) of Article 6 is to be determined on the 
basis of information relating to the production of the goods being valued supplied by or on behalf 
of the producer. It is to be based upon the co mmercial accounts of the producer, provided that 
such accounts are consistent with the generally accepted accounting principles applied in the country where the goods are produced. G/VAL/N/1/COL/3 
- 24 - 
  3. The "cost or value" shall include the cost of elements specified in paragraphs 1(a)(ii) 
and (iii) of Article 8. It shall also include the value, apportioned as appropriate under the provisions of the relevant note to Article 8, of any element specified in paragraph 1(b) of Article 8 which has been supplied directly or indirectly by the buyer for use in connection with the 
production of the imported goods. The value of  the elements specified in paragraph 1(b)(iv) 
of Article 8 which are undertaken in the country of importation shall be included only to the extent 
that such elements are charged to the producer. It is to be understood that no cost or value of the 
elements referred to in this paragraph shall be counted twice in determining the computed value. 
4. The "amount for profit and general expenses" referred to in paragraph 1(b) of Article 6 is to 
be determined on the basis of information suppli ed by or on behalf of the producer unless the 
producer's figures are inconsistent with those usually reflected in sales of goods of the same class 
or kind as the goods being valued which are made by producers in the country of exportation for 
export to the country of importation. 
5. It should be noted in this context that the "amount for profit and general expenses" has to 
be taken as a whole. It follows that if, in any particular case, the producer's profit figure is low and 
the producer's general expenses are high, the producer's profit and general expenses taken 
together may nevertheless be consistent with that usually reflected in sales of goods of the same 
class or kind. Such a situation might occur, for example, if a product were being launched in the 
country of importation and the producer accepted a nil or low profit to offset high general expenses associated with the launch. Where the producer can demonstrate a low profit on sales of the imported goods because of particular commercial circumstances, the producer's actual profit 
figures should be taken into account provided that the producer has valid commercial reasons to 
justify them and the producer's pricing policy re flects usual pricing policies in the branch of 
industry concerned. Such a situation might occur,  for example, where producers have been forced 
to lower prices temporarily because of an unforesee able drop in demand, or where they sell goods 
to complement a range of goods being produced in the country of importation and accept a low profit to maintain competitivity. Where the producer's own figures for profit and general expenses 
are not consistent with those usually reflected in sales of goods of the same class or kind as the 
goods being valued which are made by producers in  the country of exportation for export to the 
country of importation, the amount for profit an d general expenses may be based upon relevant 
information other than that supplied by or on behalf of the producer of the goods. 
6. Where information other than that supplied by or on behalf of the producer is used for the 
purposes of determining a computed value, the authorities of the importing country shall inform the importer, if the latter so requests, of the source of such information, the data used and the 
calculations based upon such data, subject to the provisions of Article 10. 
7. The "general expenses" referred to in paragraph 1(b) of Article 6 cover the direct and 
indirect costs of producing and selling the goods for export which are not included under 
paragraph 1(a) of Article 6. 
8. Whether certain goods are "of the same class or kind" as other goods must be determined 
on a case-by-case basis with reference to the circumstances involved. In determining the usual profits and general expenses under the provisions of Article 6, sales for export to the country 
of importation of the narrowest group or range of goods, which includes the goods being valued, 
for which the necessary information can be provided, should be examined. For the purposes of Article 6, "goods of the same class or kind" must be from the same country as the goods 
being valued. 
Note to Article 7 
1. Customs values determined under the provisions  of Article 7 should, to the greatest extent 
possible, be based on previously determined customs values. 
2. The methods of valuation to be employed und er Article 7 should be those laid down in 
Articles 1 through 6 but a reasonable flexibility in the application of such methods would be in conformity with the aims and provisions of Article 7. 
3. Some examples of reasonable flexibility are as follows: G/VAL/N/1/COL/3 
- 25 - 
  (a) Identical goods  - the requirement that the identical goods should be exported at or 
about the same time as the goods being valued could be flexibly interpreted; identical imported goods produced in a country other than the country of exportation of the goods being valued could be the basis for customs valuation; customs values of 
identical imported goods already determined under the provisions of Articles 5 and 6 
could be used. 
(b) Similar goods  - the requirement that the similar goods should be exported at or about 
the same time as the goods being valued could be flexibly interpreted; similar 
imported goods produced in a country other than the country of exportation of the goods being valued could be the basis for customs valuation; customs values of similar imported goods already determined under the provisions of Articles 5 and 6 
could be used. 
(c) Deductive method  - the requirement that the goods shall have been sold in the 
"condition as imported" in paragraph 1(a) of Article 5 could be flexibly interpreted; the 
"90 days" requirement could be administered flexibly. 
Note to Article 8 
Paragraph 1(a)(i) 
The term "buying commissions" means fees paid by  an importer to the importer's agent for the 
service of representing the importer abroad in the purchase of the goods being valued. 
Paragraph 1(b)(ii ) 
1. There are two factors involved in the a pportionment of the elements specified in 
paragraph 1(b)(ii) of Article 8 to the imported go ods - the value of the element itself and the way 
in which that value is to be apportioned to the imported goods. The apportionment of these elements should be made in a reasonable manner appropriate to the circumstances and in 
accordance with generally accepted accounting principles. 
2. Concerning the value of the element, if the importer acquires the element from a seller not 
related to the importer at a given cost, the value of the element is that cost. If the element was 
produced by the importer or by a person related to the importer, its value would be the cost 
of producing it. If the element had been previous ly used by the importer, regardless of whether 
it had been acquired or produced by such importer, the original cost of acquisition or production would have to be adjusted downward to reflect its use in order to arrive at the value 
of the element. 
3. Once a value has been determined for the element, it is necessary to apportion that value to 
the imported goods. Various possibilities exist. Fo r example, the value might be apportioned to the 
first shipment if the importer wishes to pay duty on the entire value at one time. As another 
example, the importer may request that the va lue be apportioned over the number of units 
produced up to the time of the first shipment. As  a further example, the importer may request that 
the value be apportioned over the entire anti cipated production where contracts or firm 
commitments exist for that production. The method of apportionment used will depend upon the documentation provided by the importer. 
4. As an illustration of the above, an importer provides the producer with a mould to be used in 
the production of the imported goods and contra cts with the producer to buy 10,000 units. By the 
time of arrival of the first shipment of 1,000 units, the producer has already produced 4,000 units. The importer may request the customs administrati on to apportion the value of the mould over 
1,000 units, 4,000 units or 10,000 units. 
Paragraph 1(b)(iv ) 
1. Additions for the elements specified in paragr aph 1(b)(iv) of Article 8 should be based on 
objective and quantifiable data. In order to mi nimize the burden for both the importer and G/VAL/N/1/COL/3 
- 26 - 
  customs administration in determining the values to be added, data readily available in the buyer's 
commercial record system should be used in so far as possible. 
2. For those elements supplied by the buyer which were purchased or leased by the buyer, the 
addition would be the cost of the purchase or the lease. No addition shall be made for those 
elements available in the public domain, other than the cost of obtaining copies of them. 
3. The ease with which it may be possible to calc ulate the values to be added will depend on a 
particular firm's structure and management practice, as well as its accounting methods. 
4. For example, it is possible that a firm which imports a variety of products from several 
countries maintains the records of its design centre outside the country of importation in such a way as to show accurately the costs attributable to a given product. In such cases, a direct adjustment may appropriately be made under the provisions of Article 8. 
5. In another case, a firm may carry the cost of the design centre outside the country 
of importation as a general overhead expense without allocation to specific products. In this instance, an appropriate adjustment could be made  under the provisions of Article 8 with respect 
to the imported goods by apportioning total design centre costs over total production benefiting 
from the design centre and adding such apportioned cost on a unit basis to imports. 
6. Variations in the above circumstances will, of course, require different factors to be 
considered in determining the proper method of allocation. 
7. In cases where the production of the element in question involves a number of countries and 
over a period of time, the adjustment should be li mited to the value actually added to that element 
outside the country of importation. 
Paragraph 1(c ) 
1. The royalties and licence fees referred to in paragraph 1(c) of Article 8 may include, 
among other things, payments in respect to patents, trademarks and copyrights. However, 
the charges for the right to reproduce the imported goods in the country of importation shall 
not be added to the price actually paid or pa yable for the imported goods in determining the 
customs value. 
2. Payments made by the buyer for the right to distribute or resell the imported goods shall not 
be added to the price actually paid or payable for the imported goods if such payments are not a condition of the sale for export to the country of importation of the imported goods. 
Paragraph 3  
Where objective and quantifiable data do not exist with regard to the additions required to be 
made under the provisions of Article 8, the transaction value cannot be determined under the provisions of Article 1. As an illustration of this, a royalty is paid on the basis of the price in a sale 
in the importing country of a litre of a particular product that was imported by the kilogram and 
made up into a solution after importation. If the royalty is based partially on the imported goods and partially on other factors which have nothing to do with the imported goods (such as when the 
imported goods are mixed with domestic ingredients and are no longer separately identifiable, or 
when the royalty cannot be distinguished from special financial arrangements between the buyer and the seller), it would be inappropriate to attempt to make an addition for the royalty. 
However, if the amount of this royalty is based only on the imported goods and can be readily 
quantified, an addition to the price actually paid or payable can be made. 
Note to Article 9 
For the purposes of Article 9, "time of impo rtation" may include the time of entry for 
customs purposes. 
Note to Article 11 G/VAL/N/1/COL/3 
- 27 - 
  1. Article 11 provides the importer with the right to appeal against a valuation determination 
made by the customs administration for the goods being valued. Appeal may first be to a higher level in the customs administration, but the importer shall have the right in the final instance to appeal to the judiciary. 
2. "Without penalty" means that the importer sha ll not be subject to a fine or threat of fine 
merely because the importer chose to exercise the right of appeal. Payment of normal court costs and lawyers' fees shall not be  considered to be a fine. 
3. However, nothing in Article 11 shall prevent a Member from requiring full payment of 
assessed customs duties prior to an appeal. 
Note to Article 15 
Paragraph 4 
For the purposes of Article 15, the term "persons" includes a legal person, where appropriate. 
Paragraph 4(e) 
For the purposes of this Agreement, one person  shall be deemed to control another when the 
former is legally or operationally in a position to exercise restraint or direction over the latter. 
ANNEX II 
TECHNICAL COMMITTEE ON CUSTOMS VALUATION 
1. In accordance with Article 18 of this Agreement, the Technical Committee shall be 
established under the auspices of the CCC with a view to ensu ring, at the technical level, 
uniformity in interpretation and application of this Agreement. 
2. The responsibilities of the Technical Committee shall include the following: 
(a) to examine specific technical problems arising in the day-to-day administration of the 
customs valuation system of Members and to give advisory opinions on appropriate solutions based upon the facts presented; 
(b) to study, as requested, valuation laws, procedures and practices as they relate to this 
Agreement and to prepare reports on the results of such studies; 
(c) to prepare and circulate annual reports on the technical aspects of the operation and 
status of this Agreement; 
(d) to furnish such information and advice on any matters concerning the valuation of 
imported goods for customs purposes as may be requested by any Member or the Committee. Such information and advice may take the form of advisory opinions, 
commentaries or explanatory notes; 
(e) to facilitate, as requested, technical assistance to Members with a view to furthering 
the international acceptance of this Agreement; 
(f) to carry out an examination of a matter refe rred to it by a panel under Article 19 
of this Agreement; and 
(g) to exercise such other responsibilities as the Committee may assign to it. 
General  
3. The Technical Committee shall attempt to conclude its work on specific matters, especially 
those referred to it by Members, the Committee or a panel, in a reasonably short period of time. 
As provided in paragraph 4 of Article 19, a panel shall set a specific time period for receipt 
of a report of the Technical Committee and the Technical Committee shall provide its report within 
that period. 
4. The Technical Committee shall be assisted as appropriate in its activities by the 
CCC Secretariat. G/VAL/N/1/COL/3 
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  Representation  
5. Each Member shall have the right to be  represented on the Technical Committee. 
Each Member may nominate one delegate and one or  more alternates to be its representatives on 
the Technical Committee. Such a Member so represented on the Technical Committee is referred 
to in this Annex as a "member of the Technical Committee". Representatives of members of the 
Technical Committee may be assisted by advisers. The WTO Secretariat may also attend such meetings with observer status. 
6. Members of the CCC which are not Members of the WTO may be represented at meetings of 
the Technical Committee by one delegate and one or more alternates. Such representatives shall attend meetings of the Technical Committee as observers. 
7. Subject to the approval of the Chairman of  the Technical Committee, the Secretary-General 
of the CCC (referred to in this Annex as "the Se cretary-General") may invi te representatives of 
governments which are neither Members of the WTO nor members of the CCC and representatives of international governmental and trade organizations to attend meetings of the Technical 
Committee as observers. 
8. Nominations of delegates, alternates and advisers to meetings of the Technical Committee 
shall be made to the Secretary-General. 
Technical Committee Meetings  
9. The Technical Committee shall meet as necessary but at least two times a year. The date of 
each meeting shall be fixed by the Technical Committee at its preceding session. The date of the meeting may be varied either at the request of any member of the Technical Committee concurred 
in by a simple majority of the members of the Technical Committee or, in cases requiring urgent 
attention, at the request of the Chairman. Notwit hstanding the provisions in sentence 1 of this 
paragraph, the Technical Committee shall meet as necessary to consider matters referred to it by 
a panel under the provisions of Article 19 of this Agreement. 
10. The meetings of the Technical Committee shal l be held at the headquarters of the CCC 
unless otherwise decided. 
11. The Secretary-General shall inform all members of the Technical Committee and those 
included under paragraphs 6 and 7 at least 30 days in advance, except in urgent cases, of the opening date of each session of the Technical Committee. 
Agenda  
12. A provisional agenda for each session shal l be drawn up by the Secretary-General and 
circulated to the members of the Technical Comm ittee and to those included under paragraphs 6 
and 7 at least 30 days in advance of the session, except in urgent cases. This agenda shall 
comprise all items whose inclusion has been approved by the Technical Committee during its 
preceding session, all items included by the Chairman on the Chairman's own initiative, and all items whose inclusion has been requested by the Secretary-General, by the Committee or by any 
member of the Technical Committee. 
13. The Technical Committee shall determine its agenda at the opening of each session. 
During the session the agenda may be altered at any time by the Technical Committee. 
Officers and Conduct of Business  
14. The Technical Committee shall elect from among the delegates of its members a Chairman 
and one or more Vice-Chairmen. The Chairman and Vice-Chairmen shall each hold office for a period of one year. The retiring Chairman an d Vice-Chairmen are eligible for re-election. 
The mandate of a Chairman or Vice-Chairman who no longer represents a member of the 
Technical Committee shall terminate automatically. G/VAL/N/1/COL/3 
- 29 - 
  15. If the Chairman is absent from any meeting or part thereof, a Vice-Chairman shall preside. 
In that event, the latter shall have the same powers and duties as the Chairman. 
16. The Chairman of the meeting shall participat e in the proceedings of the Technical Committee 
as such and not as the representative of a member of the Technical Committee. 
17. In addition to exercising the other powers conferred upon the Chairman by these rules, the 
Chairman shall declare the opening and closing of each meeting, direct the discussion, accord the 
right to speak, and, pursuant to these rules, ha ve control of the proceedings. The Chairman may 
also call a speaker to order if the speaker's remarks are not relevant. 
18. During discussion of any matter a delegation ma y raise a point of order. In this event, the 
Chairman shall immediately state a ruling. If this ruling is challenged, the Chairman shall submit it to the meeting for decision and it shall stand unless overruled. 
19. The Secretary-General, or officers of th e CCC Secretariat designated by the Secretary-
General, shall perform the secretarial work of meetings of the Technical Committee. 
Quorum and Voting  
20. Representatives of a simple majority of the members of the Technical Committee shall 
constitute a quorum. 
21. Each member of the Technical Committee shall have one vote. A decision of the Technical 
Committee shall be taken by a majority comprising at least two thirds of the members present. 
Regardless of the outcome of the vote on a particular matter, the Technical Committee shall be free to make a full report to the Committee and to  the CCC on that matter in dicating th e different 
views expressed in the relevant discussions. Notwithstanding the above provisions of this 
paragraph, on matters referred to it by a panel, the Technical Committee shall take decisions by 
consensus. Where no agreement is reached in th e Technical Committee on the question referred to 
it by a panel, the Technical Committee shall provide a report detailing the facts of the matter and 
indicating the views of the members. 
Languages and Records  
22. The official languages of the Technical Committee shall be English, French and Spanish. 
Speeches or statements made in any of these three languages shall be immediately translated into 
the other official languages unless all delegations agree to dispense with translation. Speeches or statements made in any other language shall be translated into English, French and Spanish, subject to the same conditions, but in that event the delegation concerned shall provide the 
translation into English, French or Spanish. Only English, French and Spanish shall be used for the 
official documents of the Technical Committee. Memoranda and correspondence for the consideration of the Technical Committee must be presented in one of the official languages. 
23. The Technical Committee shall draw up a report of all its sessions and, if the Chairman 
considers it necessary, minutes or summary records of its meetings. The Chairman or a designee of the Chairman shall report on the work of the Technical Committee at each meeting of the 
Committee and at each meeting of the CCC. 
ANNEX III 
1. The five-year delay in the application of th e provisions of the Agreement by developing 
country Members provided for in paragraph 1 of Article 20 may, in practice, be insufficient for 
certain developing country Members. In such cases a developing country Member may request 
before the end of the period referred to in paragr aph 1 of Article 20 an extension of such period, 
it being understood that the Members will give sympathetic consideration to such a request in 
cases where the developing country Member in question can show good cause. 
2. Developing countries which currently value goods on the basis of officially established 
minimum values may wish to make a reservation to enable them to retain such values on a limited 
and transitional basis under such terms and conditions as may be agreed to by the Members. G/VAL/N/1/COL/3 
- 30 - 
  3. Developing countries which consider that the reversal of the sequential order at the request 
of the importer provided for in Article 4 of the Agre ement may give rise to real difficulties for them 
may wish to make a reservation to Article 4 in the following terms: 
"The Government of ... reserves the right to pr ovide that the relevant provision of Article 4 
of the Agreement shall apply only when the customs authorities agree to the request to 
reverse the order of Articles 5 and 6." 
If developing countries make such a reservation,  the Members shall consent to it under Article 21 
of the Agreement. 
4. Developing countries may wish to make a reservation with respect to paragraph 2 
of Article 5 of the Agreement in the following terms: 
"The Government of ... reserves the right to provide that paragraph 2 of Article 5 of the 
Agreement shall be applied in accordance with the provisions of the relevant note thereto 
whether or not the importer so requests." 
If developing countries make such a reservation,  the Members shall consent to it under Article 21 
of the Agreement. 
5. Certain developing countries may have problems in the implementation of Article 1 of the 
Agreement insofar as it relates to importations into their countries by sole agents, sole distributors 
and sole concessionaires. If such problems arise in practice in developing country Members 
applying the Agreement, a study of this question shall be made, at the request of such Members, 
with a view to finding appropriate solutions. 
6. Article 17 recognizes that in applying the Agreement, customs administrations may need to 
make enquiries concerning the truth or accuracy of any statement, document or declaration 
presented to them for customs valuation purposes. 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 an d procedures, have the right to expect the full 
cooperation of importers in these enquiries. 
7. The price actually paid or payable includes all payments actually made or to be made as a 
condition of sale of the imported goods, by the bu yer to the seller, or by the buyer to a third party 
to satisfy an obligation of the seller. G/VAL/N/1/COL/3 
- 31 - 
  ANNEX 2 
RESOLUTION NO. 1239 
Updating Resolution No. 1112 - 
Adoption of the Andean 
Customs Value Declaration 
 
THE GENERAL SECRETARIAT OF THE ANDEAN COMMUNITY, 
CONSIDERING: Decision No. 571 - Customs Va luation of Imported Goods, Resolution 
No. 846 - Community Regulations implementing Decision No. 571, Resolution No. 1112 - Adoption of the Andean Customs Value Declaration, and Resolution No. 1137 - Amended entry into force 
of Resolution No. 1112; and 
WHEREAS: The Commission of the Andean Community approved Decision No. 571 
of 12 December 2003 by which the Customs Valuat ion Agreement of the World Trade Organization 
(WTO) was adopted as the subregional regulations for determining the customs value of 
imported goods; 
For the proper implementation of the WTO Custom s Valuation Agreement, a document is needed 
to enable the facts and circumstances of commercial transactions in imported goods to be declared 
and to serve in determining the customs value and ensuring uniform treatment for all imports into 
Andean Community Customs Territory; 
Pursuant to the provision in Article 9 of the First Transitional Provision of Decision No. 571, it is the 
responsibility of the General Secretariat of the Andean Community to adopt and regulate, 
by means of a resolution, the operation and format of the Andean Customs Value Declaration; 
This body of the Community implemented these regulations by means of Resolution No. 1112 
of 5 July 2007, amending the provisions on its entry into force by Resolution No. 1137 
of 20 December 2007; 
The Twenty-first Meeting of the Group of Experts on Customs Valuation, held in Lima, Peru, 
from 4 to 8 May 2009, recommended that the regulations on the Andean Customs Value 
Declaration be updated, together with its format and instructions for completing it; and that the 
time-limit for its submission and for electronic transmission of data be extended, considering that, although progress had been made in physical and electronic harmonization of the Andean Customs 
Value Declaration in member countries, nevertheless, a number of activities required for its 
implementation remained pending. 
The regulations on the Andean Customs Value Declar ation still require improvement, together with 
its format and the instructions for completing it, in order to assist the correct determination of the 
customs value of goods imported into the su bregion, therefore, the entire text of 
Resolution No. 1112 and amendments thereto need to be superseded in order to ensure that the regulations on using the Andean Customs Value Declaration are uniform; 
A time-limit needs to be set for the submission of the Andean Customs Value Declaration and for 
electronic transmission of data by users in the subr egion, therefore, a series of activities needs to 
be conducted to ensure full application of the Andean Customs Value Declaration in the Andean Community, within a reasonable timeframe, so as to achieve full compliance with the provisions in 
Decision No. 571 and its implementing regulations; G/VAL/N/1/COL/3 
- 32 - 
  HEREBY DECIDES: 
Article 1: Andean Customs Value Declaration 
1. To adopt the "Andean Customs Value Declaration" (hereinafter the "DAV") as the supporting 
document for the customs declaration or customs declaration of imported goods, in the printed 
format attached as Annex I to this Resolution. 
2. The DAV shall be completed in accordance with the instructions attached as Annex II 
to this Resolution. 
3. The Customs Administration shall grant users every facility to enable them to obtain the 
instructions mentioned in the preceding paragrap h and to add to them, where necessary, provided 
that the provisions in Annex II are not modified. 
4. For the purposes of electronic exchange of  DAV data among the Customs Administrations 
of member countries, the electronic format approv ed in the relevant Resolution of the General 
Secretariat shall be used. 
Article 2: Supporting documents 
The combined submission of the DAV and the cu stoms declaration of imported goods shall be 
accompanied by the following documents to be us ed in support of the checks to be undertaken 
by the customs authority: 
(a) the corresponding commercial invoice or contract in the case of a sale. If there is no 
sale, the document showing the commercial transaction; 
(b) the transport document; 
(c) the document proving insurance of the goods, where applicable; 
(d) other supporting documents which, where applicable, prove the facts and the 
commercial circumstances of the transaction. 
Article 3: Commercial invoice 
For the purposes of applying the first method  "transaction value of the imported goods" 
determined in Article 1 of the WTO Customs Valu ation Agreement, the commercial invoice shall: 
1. Reflect the total payment for the imported goods made or to be made by the buyer to the 
seller, whether paid directly and/or indirectly. 
2. Be an original final document. Accordingly, a pro forma invoice shall not be accepted. 
3. Be issued by the seller of the goods. 
4. Contain no erasures, additions or alterations. 
5. Contain the following information as a minimum: 
(a) number and date of the shipment; 
(b) name and address of the seller; 
(c) name and address of the buyer; 
(d) description of the goods; 
(e) quantity; 
(f) unit and total prices; 
(g) currency of the commercial transaction; 
(h) place and terms of delivery of the goods, according to the "INCOTERMS" international 
trade terms established by the International Chamber of Commerce, or other 
agreements. 
The commercial invoice may be in the form of an email, in which case it shall meet the 
requirements indicated above, in accordance with domestic legislation regulating e-trade. 
If the commercial invoice is in a language other than Spanish, the customs authority may require 
the importer to attach the corresponding translation. G/VAL/N/1/COL/3 
- 33 - 
  Article 4: Submission of the Andean Customs Value Declaration 
The DAV shall be submitted as a document in su pport of the customs declaration for the goods 
imported, regardless of whether the first "transaction value of the imported goods" method is used or not. 
Article 5: Exemption from submission 
Without prejudice to the provisions in each member country's domestic legislation, exemption from 
submitting the DAV may be given in the following cases: 
(a) imports not of a commercial nature; 
(b) imports of the luggage of passengers, crew, tourists and household effects, except for 
vehicles; 
(c) postal parcels and packages sent through international courier services. 
Article 6: Streamlined Andean Customs Value Declaration 
A streamlined DAV may be authorized for goods which are imported regularly, continuously or 
successively under the same commercial conditions , coming from the same supplier and intended 
for the same importer, if their diversity, volume and features warrant a streamlined procedure. 
Member countries may determine the mechanisms, methods and criteria for a streamlined DAV 
in their domestic legislation. 
Article 7: Declaration of provisional value 
1. An importer may declare a provisional value when, at the time of determining the customs 
value and applying the first "transaction value of imported goods" method, the value cannot be given definitively fo r the following reasons: 
(a) the agreed price has not been finally determined and depends on a particular situation 
in the future; 
(b) the amounts for the concepts indicated in Article 18.1(a)(i), (c) and (d) of the 
Community regulations implementing Decision No. 571 adopted by Resolution No. 846 
are not known at the time of import and have to be estimated; 
In such cases, the importer shall forwar d the written contracts showing and proving 
the situation. The provisional nature of the value shall be recorded in the DAV. 
Without prejudice to the provisions in preceding paragraphs, member countries may indicate the provisional nature of other factors according to their needs. 
2. In any of the situations indicated in the pr eceding paragraph, final determination of the 
customs value may be deferred; in such cases, the importer may withdraw the goods from the 
Customs, paying the import duties and taxes corresponding to the provisional value declared and providing the surety established for this purpose. 
3. The surety indicated in the preceding Article sh all consist of a percentage to be determined 
by each member country, applied to the value decl ared as the provisional taxable base and for the 
time the importer needs to declare the final value. This time-limit may not exceed 12 months as of 
the date of acceptance of the customs declarat ion of the imported goods, and shall only be 
renewable for a further maximum period of six months  or, exceptionally, for a longer period if the 
terms of the contract so warrant, subject to evaluation and acceptance by the Customs Administration. 
4. If the importer is aware of the final value, he shall inform the customs authority accordingly 
within the time-limit set for this purpose, which shall correspond to the period of validity of the surety. G/VAL/N/1/COL/3 
- 34 - 
  The surety shall be returned and no penalty shall be applied if the final value: 
(a) is the same as the provisional value; 
(b) is more than the provisional value and the importer has paid the taxes due; or 
(c) is less than the provisional value, in which case the importer may request refund 
of the excess payments made. 
5. If the provision in the first subparagraph of the preceding numbered paragraph is not met, 
the surety shall be enforced. Member countries may specify the penalties to be applied in such 
cases in their domestic legislation. 
6. The provisions in the preceding numbered paragr aphs neither prevent nor limit the power of 
the Customs Administration to exercise its controls. 
7. In their domestic legislation, member countries shall regulate the other aspects required for 
the efficient processing of provisional declarations of value. 
Article 8: Entry into force 
This Resolution shall enter into force upon publication in the Official Gazette of the 
Cartagena Agreement. 
The final date for implementing the submission of  the DAV approved by this Resolution, as well 
as the corresponding electronic transmission of data by users, shall be 1 June 2010. 
Article 9: Derogations 
Resolutions Nos. 1112 and 1137 of the General Secretariat of the Andean Community are hereby 
repealed. 
Done in the city of Lima, Peru, on the twenty-nin th day of May of the year two thousand and nine. 
ANA MARÍA TENENBAUM DE REÁTEGUI 
Director-General Responsible for the 
General Secretariat 
 G/VAL/N/1/COL/3 
- 35 - 
  ANNEX I 
 
 G/VAL/N/1/COL/3 
- 36 - 
  KEY TO THE TABLE 
ANDEAN 
COMMUNITY Andean Customs 
Value Declaration LOGO CUSTOMS 
AUTHORITY OF THE 
COUNTRY COUNTRY CODE 
 
Official use No. of form  
 
1. No. of additional sheets attached to the DAV 
2. No. of customs declaration of the goods - Date 
3. Decision - Type - Specify - Number - Year 
4. Decision - Type - Specify - Number - Year 
5. Decision - Type - Specify - Number - Year 
6. Decision - Type - Specify - Number – Year 
 
Between 7 and 56 (vertically on the left -hand side): I: General Information 
Between 1 and 12 - Importer Between 17 and 20 - Supplier Between 26 and 33 - Commercial transaction 
Between 39 and 43 - Intermediation 
Between 49 and 56 – Requirements  
7. Name or trade name 
8. Type and no. of identity document 
9. Commercial level code 
10. Specify 
11. Address 
12. City 
13. Country code 
14. Telephone 
15. Fax 
16. Email 
17. Name or trade name 
18. Code function. 
19. Specify 
20. Address 
21. City 
22. Country code 
23. Telephone 
24. Fax 
25. Email 
26. No. of invoices 
27. No. contract or other document - Date 
28. Specify 
29. Form of payment 
30. Specify 
31. Method of payment 
32.
 Specify 
33. Code form of consignment 
34. Code nature of transaction 
35. Specify 
36. Terms of delivery INCOTERMS - Place 
37. Specify 
38. Total value 
39. Any intermediation? 
40. Code type of intermediary 
41. Specify 
42. Name or trade name 
43. Address 
44. City 
45. Country code G/VAL/N/1/COL/3 
- 37 - 
  46. Telephone 
47. Fax 
48. Email 
49. Any restriction? 
50. Code type of restriction 
51. Any conditions or considerations? 
52. Code condition or consideration 
53. Specify 
54. Can they be determined? 
55. Any royalties and/or licence fees? 
56. Any accruals to seller? 
57. Any relationship between buyer and seller? 
58. Code relationship 
59. Influence of relationship on price 
60. Any test values? 
61. No. customs declaration - Date 
62. Total f.o.b. value 
 62.1 Price actually paid or payable 
63. Total transport costs 
64. Total insurance costs 
65. Total other additions 
66. Total deductions 
67. Total transaction value declared 
 
Between 68 and 120 (vertically on the le ft-hand side) :Detailed description and 
determination of the customs value  
68. Item 
69. Subheading 
70. No. commercial invoice - Date of invoice 
71. Designation of goods 
72. Trademark 
73. Type 
74. Class 
75. Model 
76. Condition 
77. 
Specify 
78. Year of manufacture 
79. Quantity 
80. Commercial unit 
81. Other features 
82. Price per item on invoice 
83. Deductions or additions - f.o.b. value per item 
84. F.o.b. value per item 
85. F.o.b. value per unit by product 
86. Indirect payments per item 
87. Retroactive discounts per item 
88. Other payments per item 
89. Total price paid or payable per item 
90. Transport costs per item 
91. Insurance cost per item 
92. Adjustment code 
93. Adjustment value per item 
94. Adjustment code 
95. Adjustment value per item 
96. Adjustment code 
97. Adjustment value per item 
98. Adjustment code 
99. Adjustment value per item 
100.  Adjustment code 
101.  Adjustment value per item 
102.  Adjustment code G/VAL/N/1/COL/3 
- 38 - 
  103.  Adjustment value per item 
104.  Adjustment code 
105.  Adjustment value per item 
106.  Adjustment code 
107.  Adjustment value per item 
108.  Adjustment code 
109.  Adjustment value per item 
110.  Adjustment code 
111.  Adjustment value per item 
112.  Customs value per unit by item 
113.  Customs value per unit by product 
114.  Estimated or provisional values 
115.  Currency code 
116.  Rate of exchange - Date 
117.  Box no. 
118.  Currency code 
119.  Rate of exchange - Date 
120.  Box no. 
121.  Currency code 
122.  Rate of exchange - Date 
123.  Box no. 
124.  Code country of origin 
125.  Code country of shipment 
126.  Code valuation method used 
 
Between 127 and 132 (vertically on the le ft-hand side): I: General information 
 
127.  Name or trade name 
128.  Type and no. of identity document 
129.  Address 
130.  City 
131.  Telephone 
132.  Surnames and first names of signatory 
133.  Type and no. of identity document 
In signing this document, I hereby confirm the accuracy and completeness of the information 
furnished on this form, on all the attached sheets accompanying it, and the authenticity of all the supporting documents. I also hold myself responsible for supplying any additional documents 
required to determine the customs value of the goods. 
134.  Signature and stamp of the declarant G/VAL/N/1/COL/3 
- 39 - 
  
 
 
 G/VAL/N/1/COL/3 
- 40 - 
  KEY TO THE TABLE 
ANDEAN 
COMMUNITY Andean Customs 
Value Declaration LOGO CUSTOMS 
AUTHORITY OF THE 
COUNTRY COUNTRY CODE 
 
Official use No. of form  
 
Vertically on the left-hand side: Detaile d description and determination of the 
customs value 
 68. Item 
69. Subheading 
70. No. commercial invoice - Date of invoice 
71. Designation of goods 
72. Trademark 
73. Type 
74. Class 
75. Model 
76. Condition 
77. Specify 
78. Year of manufacture 
79. Quantity 
80. Commercial unit 
81. Other features 
82. Price per item on invoice 
83. Deductions or additions - f.o.b. value per item 
84. F.o.b. value per item 
85. F.o.b. value per unit by product 
86. Indirect payments per item 
87. Retroactive discounts per item 
88. Other payments per item 
89. Total price paid or payable per item 
90. Transport costs per item 
91. Insurance cost per item 
92. Adjustment code 
93. Adjustment value per item 
94. Adjustment code 
95. Adjustment value per item 
96. Adjustment code 
97. Adjustment value per item 
98. Adjustment code 
99. Adjustment value per item 
100.
 Adjustment code 
101.  Adjustment value per item 
102.  Adjustment code 
103.  Adjustment value per item 
104.  Adjustment code 
105.  Adjustment value per item 
106.  Adjustment code 
107.  Adjustment value per item 
108.  Adjustment code 
109.  Adjustment value per item 
110.  Adjustment code 
111.  Adjustment value per item 
112.  Customs value per unit by item 
113.  Customs value per unit by product 
114.  Estimated or provisional values G/VAL/N/1/COL/3 
- 41 - 
  115.  Currency code 
116.  Rate of exchange - Date 
117.  Box no. 
118.  Currency code 
119.  Rate of exchange - Date 
120.  Box no. 
121.  Currency code 
122.  Rate of exchange - Date 
123.  Box no. 
124.  Code country of origin 
125.  Code country of shipment 
126.  Code valuation method used 
  G/VAL/N/1/COL/3 
- 42 - 
   
ANNEX II 
INSTRUCTIONS FOR COMPLETING THE ANDEAN CUSTOMS VALUE 
DECLARATION FORM (DAV) 
GENERAL ASPECTS 
Pursuant to Article 9 of Decision No. 571, importer s have to submit a declaration of the facts and 
circumstances concerning the commercial transaction involving the goods to be imported and 
being valued. 
For this purpose, in accordance with Article 8 of  the aforementioned Decision, the Andean Customs 
Value Declaration form (hereinafter the DAV) form ad opted in the first Article of this Resolution is 
to be used and completed in accordance with these instructions. 
The DAV is composed of the following: The cover sheet containing:  I. General information. 
 II. A detailed description of the goods and determination of the customs value. 
 III. The declarant. Additional sheets (which may be one or more) containing: 
II.  A detailed description of the goods and determination of the customs value. 
The DAV is designed for declaring the commercial facts and circumstances surrounding a single 
transaction that results in the importation of produc ts classified in one or more subheadings. If the 
transaction relates to a sale covered by several commercial invoices in which the seller, the buyer, 
the currency of the transaction, the terms of delivery and other information recorded in part I are the same, a single DAV may be completed. Otherwise, a form should be completed for each sale. 
If the goods can be valued using the transaction value method, parts I and II should be 
completed, determining the customs value per item, giving information by type of product. If the 
taxable base is determined using the secondary methods, in part I the boxes relating to the description of the goods should be completed and in part II the codes of the countries of origin, 
shipment and purchase, without filling in the boxes on values. 
In any event, the boxes in part III have to be filled in and the form signed. The goods should be described by item; if informat ion on more than one item has to be recorded, 
as many additional sheets as necessary should be co mpleted, being sure to indicate in box 1 of the 
cover sheet the number of additional sheets used. Two dashes (--) should be entered in boxes that are not utilized. 
For the purposes of these instructions, "Community regulations" mean the Community regulations 
implementing Decision No. 571 on the customs valuation of imported goods, adopted by 
Resolution No. 846. 
For the purposes of these instructions, "Agreem ent" means the Customs Valuation Agreement of 
the World Trade Organization (WTO). G/VAL/N/1/COL/3 
- 43 - 
  INSTRUCTIONS FOR COMPLETING THE FORM 
No. of form : The number attributed by the Customs Administration 
1. No. of additional sheets: Indicate  the number of sheets used. Example: 
(a) If there is only one item, indicate zero on the cover sheet because no additional 
sheets are required. 
(b) if there is more than one item, additional sheets have to be completed. Accordingly, 
on the cover sheet the number of additional  sheets used should be indicated; in the 
space provided on each of these, indicate  their sequential order and the total number 
used. For example, if there are 3 additional  sheets, on the cover sheet put 3; on the 
first additional sheet, put 1 of 3; on the second, 2 of 3; and on the third, 3 of 3.  
2. No. and date of customs declaration of the goods: Indicate the number and date of the 
customs declaration for the goods being imported to which the DAV corresponds.  
3, 4, 5 and 6: Decision:  Provide the following information: 
Type: Indicate the code corresponding to the decision of the Customs Administration that may 
affect determination of the customs value of the goods or completion of the DAV. 
1. Advance decision; 
2. Permanent adjustments of value; 
3. Streamlined; 
4. Other. 
Specify: If the code corresponding to "Other" has been entered in the previous box, indicate 
which decision. 
Number and year of the decision: Indicate the number of the decision and the year it was 
taken. 
For example, there is a decision on permanent adjustments of value for the importation in 
question and it should be recorded as follows: 
 Type: 02, Specify: - -, Number and year: 15/2007. I. GENERAL INFORMATION 
Contains general information concerning a transaction covered by one or more commercial 
invoices in the case of a sale or substitute document in other cases. 
IMPORTER 
Where the transaction is in the form of a sale, the information to be given refers to the buyer, 
otherwise to the importer. 
7. Name or trade name: Indicate the surnames and first names or the trade name of the 
buyer, as they appear on the commercial invoice, otherwise those of the importer appearing on 
the contract or document showing the commercial transaction. 
8. Type and number of identity document: Indicate  the code for the type of document and the 
identity number, using the codes in Table 5 of Annex IV. G/VAL/N/1/COL/3 
- 44 - 
  9. Commercial level code: Enter the code for the buyer's commercial level, according to the 
definition in Article 2(f) of the Community regulati ons. This box also needs to be filled in when 
there is a sale, using the codes below: 
1. Wholesaler; 
2. Retailer; 
3. Industrial user (manufacturer); 
4. End user; 
5. Other. 
10. Specify: If the code corresponding to "Oth er" has been entered in the previous box, 
give details. 
11. Address: Enter the address of the buyer or the importer, as applicable, as it appears on the 
commercial invoice or the document showing the transaction. 
12. City: Indicate the name of the city in the a ddress of the buyer or importer as shown in 
box 11. 
13. Country code: Enter the country code for the country in which the city indicated in box 12 is 
situated. Use the codes provided for the customs declaration of goods in Table 4 of Annex IV. 
14, 15 and 16. Telephone, fax and email: Indicate this information for the buyer or importer of the 
goods. For the telephone and fax numbers, enter the international dialling code in brackets 
followed by the local number. 
SUPPLIER 
The information to be entered in these boxes refe rs to the supplier of the imported goods, who 
may be the seller if the transaction corresponds to a sale. 
17. Name or trade name: Indicate the surnames and first names or the trade name of the seller, 
as they appear on the commercial invoice, otherwise those of the supplier appearing on the 
contract or document showing the commercial transaction. 
18. Code function: Indicate the code for the seller's function in the case of a sale, using the 
codes below: 
1. Manufacturer; 
2. Distributor; 
3. Dealer; 
4. Other. 
If there is no sale, enter two dashes (--). 
19. Specify: If the code corresponding to "Oth er" has been entered in the previous box, 
give details. 
20. Address: Enter the address as it appears on the commercial invoice or the document 
showing the transaction.  
21. City: Indicate the name of the city for the addr ess entered in the previous box as it appears 
on the commercial invoice or the document showing the transaction. 
22. Country code: Enter the country code for the country in which the city indicated in the 
previous box is situated as it appears on the commercial invoice or the document showing the transaction, using the codes indi cated in Table 4 of Annex IV. G/VAL/N/1/COL/3 
- 45 - 
  23, 24 and 25. Telephone, fax and email: Indicate this information for the seller or supplier of the 
goods. For the telephone and fax numbers, enter the international dialling code in brackets followed by the local number. 
COMMERCIAL TRANSACTION 
26. Number of invoices: Record the total number of commercial invoices issued by the seller 
relating to a single transaction and covering the goods that are the subject of the declaration. Each invoice should be identified by number and date in part II of the form. 
27. Number and date of the contract or other document: Indicate the number and date of the 
sales contract or other type of contract or document covering the transaction. 
28. Specify: Indicate which document covers the transaction if it is not the same as the sales 
contract. 
29. Form of payment: Indicate the form of paym ent of the goods that are the subject of the 
commercial transaction using the codes below: 
1. Advance payment; 
2. Cash payment; 
3. Credit payment; 
4. More than one form of payment (specify); 
5. No payment; 
6. Other (specify). 
30. Specify: If the code corresponding to "More than one form of payment" or "Other" has been 
entered in the previous box, give details. 
31. Method of payment: Indicate the method of payment used for the transaction. 
If "No payment" was indicated in the appropriate bo x, two dashes should be entered in this box. 
The information is to be recorded using the codes below: 
1. Cash; 
2. Cheque; 
3. Simple payment order; 
4. Clean remittance; 
5. Documentary remittance; 
6. Documentary credit; 
7. Other (specify). 
NOTE: Use of the payment methods should conform to the provisions in each member country's 
domestic legislation. 
32. Specify: If the code corresponding to "Oth er" has been entered in the previous box, 
give details. 
33. Form of consignment: Record the form of cons ignment of the goods that are the subject of 
the transaction using the codes below: 
1. Partial or split consignments; 
2. Entire consignment. 
34. Nature of the transaction: The nature of th e transaction must correspond to one of the 
codes in the list below: 
1. Sale at a fixed price for export to Andean Community Customs Territory; 
2. Sale at a fixed price for export to Andean Customs Territory after the goods have been 
shipped but prior to importation (successive sales); 
3. Sale at a provisional or reviewable price, subject to a future condition, for export to 
Andean Community Customs Territory; G/VAL/N/1/COL/3 
- 46 - 
  4. Sale for internal use abroad and subsequent export to Andean Community 
Customs Territory; 
5. Consignment of the goods; 
6. Supplied free of charge (gifts, samples, promotional material); 
7. Goods supplied to branches directly or indirectly from the parent company; 
8. Partial supply of materials and/or machinery under a general construction contract; 
9. Goods supplied under an assistance programme promoted or financed wholly or in 
part by the Andean Community or another international organization; 
10. Replacement of goods returned; 
11. Replacement of goods not returned (for example under a guarantee); 
12. Countertrade (barter, offset trade, voucher,  offer to purchase, switch arrangement, 
merchanting, swap or partial offset); 
13. Leasing or hire; 
14. Financial leasing; 
15. Loan or loan for use; 
16. Assembly or processing service; 
17. Repair or maintenance free-of-charge; 
18. Repair or maintenance against payment; 
19. Government aid; 
20. Other aid (private or from non-governmental organizations); 
21. Operations under intergovernmental joint manufacturing programmes; 
22. Other transactions for temporary use; 
23. Other transactions. 
35. Specify: If the codes 20, 22 or 23 have been entered in the previous box, give details. 
36. Terms of delivery: Indicate the terms and pl ace of delivery according to the arrangement 
between the seller and buyer using the INCOTERMS international trade terms of the International 
Chamber of Commerce in Paris, using Table 1 of A nnex IV. If terms of delivery other than those 
provided in the INCOTERMS are agreed, enter "Other". 
37. Specify: If the word "Other" has been ente red in the previous box, give details. 
38. Total value: Enter the total value of the commercial transaction according to the commercial 
invoice or equivalent document, taking into account the currency of the transaction and the terms 
of delivery. 
INTERMEDIATION 
39. Any intermediation?: Indicate whether any interm ediary termed an agent, broker or other is 
involved in the transaction. Enter "1" if the answer is yes or "2" if it is no. 
40. Code type of intermediary: Indicate the type of intermediary if the reply to the previous 
question is yes, using the codes below: 
1. Sales agent; 
2. Buying agent; 
3. Broker; 
4. Other type of intermediation. 
41. Specify: If the code corresponding to "Other type of intermediation" has been entered in the 
previous box, give details. 
42. Name or trade name: Enter the first names and surnames or the trade name of the 
intermediary, as applicable. 
43. Address: Indicate the address of  the intermediary's domicile. 
44. City: Indicate the name of the city corre sponding to the intermediary's address. G/VAL/N/1/COL/3 
- 47 - 
  45. Country code: Enter the country code for the city corresponding to the intermediary's 
address, using the codes indicated in Table 4 of Annex IV. 
46, 47 and 48. Telephone, fax and email: Indicate  this information for the intermediary. For the 
telephone and fax numbers, enter the international di alling code in brackets followed by the local 
number. 
REQUIREMENTS FOR APPLYING  THE TRANSACTION VALUE 
These boxes concern application of the transaction value method so should only be completed for 
transactions which correspond to a commercial sale. 
49. Any restriction?: Indicate whether there are any restrictions on the assignment or use of 
goods after importation by the buyer, in accordan ce with Article 10 of the Community regulations. 
Enter "1" if the answer is yes or "2" if it is no. 
50. Code type of restriction:  If the answer to the question in the previous box is "yes", indicate 
the type of restriction using the codes below: 
1. Taxes or restrictions required by law or by authorities in Andean Community 
Customs Territory; 
2. Limitation on the geographical area where the goods may be resold; 
3. No significant effect on the value of the goods; 
4. Affects the value of the goods. 
51. Any conditions or considerations?: Indicate whether there are any conditions or 
considerations imposed on the buyer by the seller in relation to the sale or the price of the goods being valued in accordance with the provisions in Article 11 of the Community regulations. 
Enter "1" if the answer is yes or "2" if it is no. 
52. Code condition or consideration: If the answer to the question in the previous box is "yes", 
indicate the type of condition or consideration using the codes below:  
1. The price of the goods depends on the purchase of other goods;  
2. The price of the goods depends on the price at which the buyer sells other goods 
to the seller;  
3. The price depends on a particular form of payment unrelated to the imported goods; 
4. The price depends on discounts granted according to the quantities bought, form 
of payment or any other condition of the transaction;  
5. Sale of the goods depends on activities related to the marketing of the imported 
goods (advertising, guarantees, exhibition in premises, at fairs or in shop 
windows, etc.);  
6. Sale depends on making indirect payment for the imported goods to the benefit of the 
seller (see Article 8.4 of the Community regulations); 
7. Sale of the goods depends on the supply of services related to their production 
(see Articles 2, 18 and 25 of the Community regulations); 
8. Sale depends on payments to be made by the buyer for the right to utilize patents, 
trademarks, copyright, distribution or resale or other rights, related to the imported goods being valued. 
9. Other types of condition or consideration. 
53. Specify: If the code corresponding to "Other types of condition or consideration" has been 
entered in the previous box, give details. 
54. Can the value of the conditions or consideratio ns be determined?: If "Yes" has been entered 
in box 51, enter "1" if the value of these conditions or considerations can be determined or "2" if it 
cannot be determined. 
55. Any royalties or licence fees?: Enter "1" if there is an obligation to pay the right to use 
patents, trademarks, copyright or other rights, as  a condition of sale of the goods being valued. 
If there is no such obligation, enter "2". G/VAL/N/1/COL/3 
- 48 - 
  56. Any accruals to the seller? Enter "1" if any part of the proceeds of the subsequent resale, 
disposal or use of the goods being valued is direct ly or indirectly paid to the seller abroad by the 
buyer. Enter "2" if there is no such accrual. 
57. Any relationship between buyer and seller: Enter "1" if there is a relationship between the 
buyer and seller or "2" if there is no such relationship. 
58. Code type of relationship: If th e reply to the question in the previous box is "Yes", enter the 
code corresponding to the category of relationsh ip between the buyer and seller according to the 
codes below: 
1. One of the persons is an officer or director of the other's firm; 
2. They are legally recognized partners in business (see Article 13.2 of the 
Community regulations); 
3. They are employer-employee; 
4. One of the persons directly or indirectly owns, controls or holds 5% or more of the 
outstanding voting stock or shares of both of them; 
5. One of them directly or indirectly controls the other (see Article 13.3 of the 
Community regulations); 
6. Both of them are directly or indirectly controlled by a third person. 
7. Together they directly or indirectly control a third person; 
8. They are members of the same family (see Article 13.4 of the 
Community regulations). 
59. Influence of the relationship on the price: If "yes" has been entered in box 57, enter "1" if 
the relationship has influenced the price of the goods or "2" if it has not. If there is no relationship, 
enter two dashes (--). 
60. Any test values? Enter "1" if any test value is known or "2" if none is known. This should be 
completed if the answer in the previous box was in the affirmative, otherwise cross out the box. 
61. Number and date of the customs declaration of the goods: Specify the number and date 
of the customs declaration in support of a test  value if the answer in the previous box was 
in the affirmative. 
62. Total f.o.b. value: Enter the total of  the sum of f.o.b. values per item. 
62.1 Total price actually paid or payable: Enter the total price actually paid or payable per item. 63.  Total transport costs: Enter the amount of transport and related costs paid or payable for 
all the goods declared. This sum should be en tered in the corresponding box in the customs 
declaration of the goods. 
64. Total insurance costs: Enter the amount of the insurance paid or payable for all the goods 
declared. This sum should be entered in the corresponding box in the customs declaration 
of the goods. 
65. Total other additions: Enter the total sum of the additions made under each item, 
as provided in Article 8 of the Agreement, and the additions corresponding to indirect payments, 
retroactive discounts and other payments. 
66. Total deductions: Enter the total sum of the deductions made from each item. 
The total sum of the amounts entered in boxes 65 and 66 (negative) should be entered in the 
corresponding box of the customs declaration of the goods. 
67. Total transaction value declared: Enter the to tal sum of the amounts entered in boxes 62.1 
to 65, minus the value entered in box 66. The to tal sum should be entered in the corresponding 
box of the customs declaration of the goods. G/VAL/N/1/COL/3 
- 49 - 
  II. DETAILED DESCRIPTION OF THE G OODS AND DETERMINATION OF THE 
CUSTOMS VALUE  
The description of the goods should enable them to be distinguished and identified. 
The calculations provided in part II and the determination of the customs value shall be in the 
currency stipulated in the domestic legislation of each member country. 
68. Item: Indicate the category or number corresponding to the description of the product. 
69. Subheading: Indicate the ten digit tariff subheading for the goods declared. 
70. Number and date of the commercial invoice: Indicate the number and date of the 
commercial invoice issued by the seller for the imported goods being valued. 
71. Designation of the goods: Indicate the name by which the goods imported are commercially 
known. Example: fried potatoes, chewing gu m, tights, bond paper, engine, truck. 
72. Trademark: Indicate the name or sign on the goods at the time of importation distinguishing 
them from others on the market. 
73. Type: Record the category for the goods being imported. 
74. Class: Record the special features which distinguish the goods from others in the 
same class. 
75. Model: Indicate the name given to the goods according to their special features and which 
reflect any modification or improvement of the product over a specific period; this is to distinguish 
them from others bearing the same trademark. May be in the form of a digital or numerical code. 
76. Condition: Indicate the condition of the goods being imported according to the codes in the 
following list:  
1. New; 
2. Used; 
3. Obsolescent; 
4. Dismounted/new 
5. Dismounted/used; 
6. Semi-assembled/new; 
7. Semi-assembled/used; 
8. Spoiled, damaged or deteriorated; 
9. Repaired, refurbished or rebuilt; 
10. Remanufactured; 
11. Other. 
77. Specify: If the code for "Other" has been entered in the previous box, give details.  
78. Year of manufacture: If applicable, indicate the year in which the good being imported was 
manufactured. This date is required in particular in respect of goods for which this information is 
important, for example, vehicles. 
79. Quantity: Indicate the number of goods in the transaction declared, according to the 
commercial unit. 
80. Commercial unit: Indicate the size (metres, yards, litres, gallons, linear metres, inches, etc.) 
in which the transaction is expressed. 
81. Other features: Indicate other features which clarify and identify the goods being valued. 
For goods for which there is only a minimum description, information complementing that entered 
in boxes 71 to 78 should be given.  G/VAL/N/1/COL/3 
- 50 - 
  For textile products and clothing, depending on each member country's legislation, the information 
contained in Annex III may be included for reference purposes. 
82. Net price per item on invoice: Enter the net price per item appearing on the commercial 
invoice using the agreed INCOTERMS and in the currency determined by each member country's 
legislation; if the transaction is in a foreign currency, it should be converted at the selling rate 
published by the competent authorities in effect on the date of acceptance of the value declaration for the imported goods. 
83. Additions or deductions to determine the f.o.b. value per item: Indicate the additions and/or 
deductions to be made to the net price per item on the invoice in order to convert it into the f.o.b. price, taking into account the terms of the transaction. 
Additions to be made using the INCOTERMS agreed for the transaction: 
- EXW: Total f.o.b. value per item US$ = Net price per item + clearance costs for export per 
item + transport costs to the place of shipment per item + handling and stevedoring charges per item + other charges in the country of export per item. 
- FAS or FCA: Total f.o.b. value per item  = Net price per item + handling and stevedoring 
charges per item + other charges in the country of export per item. 
- CFR, CPT, DAF or DES: Total f.o.b. value per item = Net price per item - Transport costs 
from the place of shipment to the country of import per item. 
- CIF or CIP: Total f.o.b. value per item = Net price per item - Transport costs from the 
place of shipment to the country of import pe r item - Cost of insurance from the place of 
shipment to the country of import per item. 
- DEQ: Total f.o.b. value per item = Net price per item - Transport costs from the place of 
shipment to the country of import per item - Unloading costs in the port of the country of import per item. 
- DDU: Total f.o.b. value per item = Net price per item- Transport costs from the place of 
shipment to the country of importation per it em - Cost of insurance from the place of 
shipment to the country of importation per item - Transport costs in the country of 
importation - Other charges in the country of importation per item. 
- DDP: Total f.o.b. value per item = Net price per item - Transport costs from the place of 
shipment to the country of importation per it em - Cost of insurance from the place of 
shipment to the country of importation per item - Transport costs in the country of 
importation - Other charges in the country of importation per item - Duties and taxes 
payable on the import of goods per item. 
84. F.o.b. value per item: Indicate the f.o.b. value per item, using the commercial unit entered 
in box 80. This figure should be entered even if the transaction corresponds to terms of delivery 
other than fo.b.  
85. F.o.b. value per unit by product: Enter the resu lt of dividing the f.o.b. value per item and 
the amount entered in box 79. 
86. Indirect payments per item: Enter in this box the amount of the indirect payment mentioned 
in Article 8.4 of the Community regulations. 
87. Retroactive discounts per item or others not accepted per item: Enter in this box the amount 
of the retroactive discounts mentioned in Article 9.4 of the Community regulations or others not 
accepted for valuation purposes. 
88. Other payments per item: Enter advance payments or other payments per item which 
compose the price actually paid or payable and not included in the commercial invoice or not 
entered in other boxes. G/VAL/N/1/COL/3 
- 51 - 
  89. Total price actually paid or payable per item: Enter the total of the amounts in boxes 82, 86, 
87 and 88. 
90. Transport costs from the place of shipment to the place of importation: Enter the cost per 
item incurred for carriage, transport-related costs and, in general, all costs incurred for 
transporting the goods from the place of shipment to the place of importation, provided that these 
are not included in the price actually paid or payable. 
If any of these elements is provided to the bu yer free of charge, uses the buyer's own means or 
services or was not duly incurred, the procedure laid down in Article 6 of Decision No. 571 and 
Article 28.3 of the Community regulations shall be followed. 
91. Insurance cost per item: Enter the cost of transport insurance per item, provided that it is 
not included in the price actually paid or payable.  If insurance is free of charge for the buyer or 
was not duly incurred, the procedure laid down in Article 6 of Decision No. 571 and Article 28.3 of 
the Community Regulations shall be followed. 
If the goods are insured in part, the parts not covered by an insurance policy may be determined 
in accordance with the preceding paragraph. The to tal of both parts shall be entered in this box. 
92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102 and 103: Other additions per item: Enter the code 
and the amount per item for the adjustment of addi tions to the price actually paid or payable for 
the imported goods, in accordance with Table 2 in Annex IV and the supporting documents for the 
elements to be added. 
104, 105, 106, 107, 108, 109, 110 and 111: Other deductions:  Enter the code and the amount per 
item for adjustment of deductions to the price actually paid or payable for the imported goods, in 
accordance with Table 2 in Annex IV and the supporting documents for the elements to be 
deducted. Deductions will only be allowed if the amount is actually included in the price paid or payable entered in box 89. 
112.  Customs value per item: Enter the total of the amounts in the boxes (89, 90, 91, 93, 95, 97, 
99, 101 and 103), minus the total in the boxes (105, 107, 109 and 111). 
113.  Customs value per unit by product: Enter the to tal obtained by dividing the customs value 
per item among the quantity entered in box 79. 
114.  Estimated or provisional values: Indicate the numbers of the boxes in which estimated or 
provisional values have been entered. 
115, 118, 121: Code for the currency used in the transaction: Indicate the code for the currency in 
which the transaction of the goods or any of the customs valuation elements for the goods took 
place, using Table 3 in Annex IV. 
116, 119, 122: Rate of exchange: Enter the exchan ge rate fixed by the competent authority in 
each member country on the date determined in domestic legislation, to be used as the basis for 
calculating the currency conversion, where applicable Also indicate the date of this exchange rate. 
117, 120, 123 Box No.: Indicate the number of the box corresponding to the amount of the 
adjustment for which the exchange rate is used if the transaction took place in a currency other 
than that selected by each member country for declaring customs value. 
124.  Code country of origin: Code for the country where the imported goods were manufactured, 
exploited, extracted or grown or other features wh ich make the country the origin of the goods, in 
accordance with Table 4 in Annex IV. 
125.  Code country of shipment: Code for the count ry where the goods were loaded with the 
country of importation as the final destination, in accordance with Table 4 in Annex IV. A country 
where the mode of transport makes a stop or wh ere the goods are transhipped is not considered 
to be the country of shipment. G/VAL/N/1/COL/3 
- 52 - 
  126.  Valuation method used: Enter the code corresp onding to the valuation method used to 
determine the customs value declared for the imported goods, in accordance with Table 6 in Annex IV. 
III. DECLARANT 
Enter data on the importer or buyer and, where the domestic legislation of the member country 
so requires, on their legal representative or the person authorized to act on their behalf. The provisions in Articles 11, 12 and 13 of De cision No. 571 shall be taken into account for 
this purpose. 
127.  Name or trade name: Indicate the trade name of the person acting as the legal 
representative or the person authorized to act on behalf of the importer. 
128.  Type and number of identity document: Indi cate the type and number of the declarant's 
identity document, using the codes listed in Table 5 in Annex IV. 
129.  Address: Indicate the address of the legal repres entative or the person authorized to act on 
behalf of the importer. 
130.  City: Enter the name of the city where the legal representative or the person authorized 
to act on behalf of the importer has his/her domicile. 
131.  Telephone: Indicate the telephone number together with the national and local 
dialling codes. 
132.  Surnames and first names of the signatory of the declaration. 
133.  Type and number of the identity document  of the person signing the declaration: 
Indicate the code corresponding to the type of identity document and its number, using the codes 
in Table 5 in Annex IV. 
134.  Signature and stamp: The DAV must be signed by the declarant and stamped if so required 
by the member country's legislation. G/VAL/N/1/COL/3 
- 53 - 
  ANNEX III 
MINIMUM DESCRIPTIONS FOR IMPORTS IN THE TEXTILE AND CLOTHING SECTORS 
(Chapter 50 to 63 of the Harmonized System) 
MINIMUM DESCRIPTION OF THE GOODS 
I. FIBRES 
1. Composition: % of fibres according to type; 
2. Level of preparation of the fibre: raw, carded, combed, staple fibres; 
3. Colour: unbleached, bleached, coloured; 
4. Form of presentation: bulk, bobbins, rolls, bales; 
5. Weight per commercial unit: net kilogrammes. 
II.  YARNS 
1. Description of the yarn: coated, sewing thre ad, yarn for weaving, gimped, loop-wale, 
chenille, metallized, etc.; 
2. Composition: % of fibres according to type; 
3. Decitex and number of filaments per tow: for example, 30 dtex/number of filaments per 
tow, etc.; 
4. Type of yarn: Single, multiple (folded), cabled, etc.; 
5. Level of processing and type of finishing: unb leached, coloured, bleached, yarns of different 
colours, printed, mercerized, dressed, etc.; 
6. Weight per commercial unit: net kilogrammes; 
7. Presentation: conical bobbins, hank s, skeins, reels, spools, etc. 
NOTE: In addition to the foregoing requirements, the following must also be taken into account: 
1. For silk yarn, clarify whether it is silk or silk waste (noil silk); 
2. For yarns in Chapter 54, specify the type of finishing: textured, high tenacity. 
III. FABRICS 
1. Description of the fabric: warp and weft, croc heted, netting, embroidered, woven pile, etc.; 
2. Composition: % of fibres according to type;. 
3. Level of processing and type of finishing: unbleached, bleached, yarns of various colours, 
sanforized, waterproofed, etc.; 
4. Weight per m2: grams per m2; 
5. Width of the fabric: example: 1.50 m., 2.20 m. 0.80 m. etc. 
NOTE: In addition to the foregoing requirements, the following must also be taken into account: 
1. For carpets in Chapter 57 and fabrics in Chapter 58 and heading 60.01, the composition of 
the ground fabric, the pile and looped surface should be separated, as applicable; 
2. For single carpets and tapestries in heading 58.05, their dimensions must be specified; 
3. For fabrics in Chapter 59, the composition must indicate the type of material used for 
waterproofing or coating, and the combined weight. 
IV. MADE-UP ARTICLES - A. CLOTHING  
1. Description of the clothing: trousers, bag, shirt, suit, blouse, etc.; 
2. Trade name: example: Adidas, Lacoste; 
3. Composition of the fabric used: % of fibres according to type; 
4. Type(s) of fabric(s): crocheted or other; 
5. Size and gender: men's, women's, unisex, etc.; 
6. Commercial unit; in units. G/VAL/N/1/COL/3 
- 54 - 
  NOTE: In addition to the foregoing requirements, the following must also be taken into account: 
- For clothing with lining, the composition of the lining must be indicated separately. 
IV. B. OTHER MADE-UP ARTICLES  
1. Description of the made-up article: bed linen, blankets, etc.; 
2. Composition of the fabric used: % of fibres according to type; 
3. Commercial unit: in units. G/VAL/N/1/COL/3 
- 55 - 
  ANNEX IV 
Table 1: Terms of delivery 
 
CODE MODE DEFINITION 
EXW Ex works 
(… named place of delivery) The seller makes the goods available to the buyer at the seller's 
works or in another place agreed wi thout clearing them for export or 
loading them on to a collecting vehicle.  
FCA Free carrier 
(... named place of delivery) The seller delivers goods, cleared for export, to the buyer-designated 
carrier at a named place. This term may be used for any means of transport.  
FAS Free alongside ship 
(… named port of shipment)  The seller places the goods alongside the ship at the named port of 
shipment. May only to be used fo r maritime or inland waterway 
transport. 
FOB Free on board 
(… named port of shipment)  The seller hands over the goods when they are actually on board the 
vessel in the named port of shipme nt. May only be used for maritime 
or inland waterway transport.  
CFR Cost and freight 
(… named port 
of destination)  The seller hands over the goods when they are actually on board the 
vessel in the port of shipment. The seller must pay the costs and 
freight. May only be used for maritime  or inland waterway transport.  
CIF Cost, insurance and 
freight (… named port of destination)  The seller pays the costs and freight needed for release of the goods 
in the named port of destination. The seller must also procure 
maritime insurance for the buyer's risk of loss or damage during 
transport.  
CPT Carriage paid to 
(… named place of destination)  The seller hands over the goods to the carrier designated by it; it 
must also pay the transport costs.  May be used for any mode of 
transport, including multimodal transport. 
CIP Carriage and 
insurance paid 
(… named place of destination)  The seller hands over the goods to the carrier designated by it, but 
must also pay the costs of carriage needed for release of the goods in 
the named destination. The seller must also procure insurance against the risk to the buyer of loss or damage of the goods during transport. May be used irrespecti ve of the mode of transport, 
including multimodal transport.  
DAF Delivered at frontier 
(… named place of delivery)  The seller hands over the goods when they are made available to the 
buyer on the mode of transport used and not unloaded, at the named 
frontier post and place, but befo re passing through the frontier 
Customs in the neighbouring country; the goods must be cleared for export but not for import. May be us ed irrespective of the mode of 
transport when the goods have to be delivered at a land frontier Where delivery has to be made at th e port of destination, on board a 
ship or on the quay (wharf), the terms DES or DEQ should be used 
DES Delivered ex ship 
(… named port of destination)  The seller hands over the goods to  the buyer on board the ship, not 
cleared by the Customs for import, in  the named port of destination. 
The seller must pay the costs and risks incurred for release of the 
goods at the port of destination agreed prior to unloading. May only 
be used when the goods have to be  handed over on board a vessel at 
the port of destination, after be ing carried by sea, by inland 
waterway or by multimodal transport. 
DEQ Delivered ex quay 
(… named port of destination)  The seller hands over the goods when they are made available to the 
buyer, without being cleared by th e Customs for import, on the quay 
(wharf) in the named port of destin ation. The seller has to bear the 
costs and risks incurred for release of  the goods in the named port of 
destination and for unloading the g oods on to the quay (wharf). May 
only be used when the goods are handed over, after carriage by sea, by inland waterway or by multimodal  transport, at the name port of 
destination.  
DDU Delivered duty unpaid 
(… named place of destination) The seller hands over the goods to the buyer, not cleared by the 
Customs for import and not unloaded from the means of transport, upon arrival in the named place of destination. The seller has to bear all the costs and risks incurred associ ated with supplying the goods to 
this place, other than  any "duty" payable upon import into the 
country of destination. The buyer is responsible for paying such 
"duty", together with any other costs and risks incurred for not delivering the goods for import in time. May be used irrespective of 
the mode of transport, but when deli very is to take place in the port 
of destination on board the vessel or on the quay (wharf), the terms DES or DEQ should be used.  G/VAL/N/1/COL/3 
- 56 - 
  CODE MODE DEFINITION 
DDP Delivered duty paid 
(… named place of destination)  The seller hands over the goods to the buyer, cleared for import and 
not unloaded from the means of tran sport, upon arrival in the named 
place of destination. The seller has to bear all the costs and risks 
incurred in supplying the goods to  this place, including, where 
applicable, any "duty" (term which includes liability and risks in completing customs formalities, and payment of the formalities, 
customs duties, taxes and other char ges) payable upon import into 
the country of destination. May be used irrespective of the mode of 
transport, but when delivery is in the port of destination on board the 
vessel or on the quay (wharf), the terms DES or DEQ should be used.  
Source: INCOTE RMS 2000. 
 G/VAL/N/1/COL/3 
- 57 - 
  Table 2: Codes for unit additions and/or deductions 
UNIT ADDITION CODES (Article  18 Community regulations) 
1. Commissions and brokerage, except buying commissions; 
2. The cost of containers or packaging which are treated as being one for customs purposes 
with the goods in question; 
3. Services: materials, components, parts and similar items incorporated in the imported 
goods; 
4. Services: tools, dies, moulds and similar items used in the production of the imported 
goods; 
5. Services: materials consumed in the production of the imported goods; 6. Services: engineering, development, artw ork, design work, and plans and sketches 
undertaken outside Community Customs Territory and necessary for the production of the 
imported goods; 
7. Royalties and licence fees related to the goods being valued that the buyer must pay, either 
directly or indirectly, as a condition of sale of the said goods, to the extent that such 
royalties and fees are not included in the price actually paid or payable; 
8. The value of any part of the proceeds of any subsequent resale, disposal or use of the 
imported goods that accrues directly or indirectly to the seller. 
UNIT DEDUCTIONS (Article 31 Community Regulations) 
9. Cost of construction, erection, installation, assembly, maintenance and technical assistance 
undertaken after importation of the imported goods, such as industrial plant, machinery or industrial equipment; 
10. Import duties and taxes or other charges payable in Community Customs Territory for 
import or sale of the goods in question; 
11. Transport, carriage and insurance incurred af ter the goods have arrived at the place of 
importation into Community Customs Territory, as well as the cost of temporary storage of 
the goods for reasons of carriage after arrival at the place of importation; 
12. Unloading and handling charges at the place of importation into Community Customs 
Territory, and the charges paid for ships' berthing in ports in this Territory; 
13. The interest included in the commercial invoice, paid under a financing arrangement 
entered into by the buyer and relating to the pu rchase of the imported goods, provided that 
the circumstances indicated in Decision No. 3.1 of the WTO Committee on Customs Valuation apply. If any of these circumstances do not apply, it shall be considered that the 
amount attributed to interest forms part of the transaction value; 
14. Other charges. G/VAL/N/1/COL/3 
- 58 - 
  Table 3: Currencies  
 
CODE NAME CODE NAME 
AED United Arab Emirates dirham CLF (funds 
code) Unidades de fo mento chilenas 
AFN Afghan afghani  CLP Chilean peso 
ALL Albanian lek CNY Chinese yuan renminbi  
AMD Armenian dram  COP Colombian peso 
ANG Netherlands Antillean guilder COU Unidad de valor real colombiana 
(UVR) (added to the COP) 
AOA Angolan kwanza  CRC Costa Rican colon 
ARS Argentine peso CSD Serbian dinar (It was replaced by 
RSD on 25 October 2006) 
AUD Australian doll ar CUP Cuban peso 
AWG Aruban florin  CVE Cape Verde escudo  
AZM Azerbaijani manat  CYP Cypriot pound 
BAM Bosnia and Herzegovina conv ertible mark CZK Czech koruna 
BBD Barbados dollar DJF Djiboutian franc 
BDT Bangladeshi taka DKK Danish krone  
BGN Bulgarian lev DOP Dominican peso 
BHD Bahraini dinar DZD Algerian dinar 
BIF Burundian franc EEK Estonian kroon  
BMD Bermudian dollar EGP Egyptian pound 
BND Brunei dollar ERN Eritrean nafka 
BOB Bolivian boliviano ETB Ethiopian birr  
BOV Bolivian mvdol (funds code) EUR Euro 
BRL Brazilian real FJD Fiji dollar 
BSD Bahamian dollar FKP Falkland Islands pound  
BTN Bhutanese ngultrum  GBP Pound sterling (British pound) 
BWP Botswana pula  GEL Georgian lari 
BYR Belarusian ruble GHC Ghanaian cedi 
BZD Belize dollar GIP Gibraltar pound 
CAD Canadian dollar GMD Gambian dalasi 
CDF Congolese franc GNF Guinean franc 
CHF Swiss franc GTQ Guatemalan quetzal  
GYD Guyanese dollar LTL Lithuanian litas  
HKD Hong Kong dollar LVL Latvian lats 
HNL Honduran lempira LYD Libyan dinar 
HRK Croatian kuna  MAD Moroccan dirham 
HTG Haitian gourde MDL Moldovan leu 
HUF Hungarian forint MGA Malagasy ariary (Madagascar)  
IDR Indonesian rupiah MKD Macedonian denar 
ILS Israeli new shekel MMK Myanmar kyat 
INR Indian rupee MNT Mongolian tugrik 
IQD Iraqi dinar MOP Macanese pataca 
IRR Iranian rial MRO Mauritanian ouguiya  
ISK Icelandic krona MTL Maltese pound  
JMD Jamaican dollar MUR Mauritian rupee 
JOD Jordanian dinar MVR Maldivian rufiyaa  
JPY Japanese yen MWK Malawian kwacha  
KES Kenyan shilling MXN Mexican peso  
KGS Kyrgystani som MXV Mexican Unidad de Inversión (UDI) 
(funds code) 
KHR Cambodian riel MYR Malaysian ringgit  
KMF Comoro franc  MZM Mozambican metical 
KPW North Korean won  NAD Namibian dollar 
KRW South Korean won  NGN Nigerian naira 
KWD Kuwaiti dinar NIO Nicaraguan cordoba 
KYD Cayman Islands dollar  NOK Norwegian krone  
KZT Kazakhstani tenge  NPR Nepalese rupee 
LAK Lao kip  NZD New Zealand dollar 
LBP Lebanese pound OMR Omani rial  
LKR Sri Lankan rupee PAB Panamanian balboa 
LRD Liberian dollar PEN Peruvian nuevo sol  
LSL Lesotho loti PGK Papua New Guinea kina 
PHP Philippine peso TWD Taiwan dollar  G/VAL/N/1/COL/3 
- 59 - 
  CODE NAME CODE NAME 
PKR Pakistani rupee TZS Tanzanian shilling 
PLN Polish zloty UAH Ukrainian hryvnia  
PYG Paraguayan guarani UGX Ugandan shilling 
QAR Qatari riyal USD United States dollar  
RON Romanian leu (since 1 July 2005) USN United States dollar (Next day) 
(funds code) 
RUB Russian rouble USS United States dollar (Same day) 
(funds code) 
RWF Rwandan franc UYU Uruguayan peso 
SAR Saudi riyal UZS Uzbekistan som  
SBD Solomon Islands dollar VEB Venezuelan bolivar 
SCR Seychelles rupee VE F Venezuelan bolivar  
SDD Sudanese pound VND Vietnamese dong 
SEK Swedish krona VUV Vanuatu vatu 
SGD Singapore dollar WST Samoan tala 
SHP Saint Helena pound XAF CFA franc 
SKK Slovakian koruna XAG Silver (one troy ounce) 
SLL Sierra Leonean leone  XAU Gold (one troy ounce)  
SOS Somali shilling XBA European Composite Unit (EURCO) 
(Bond market unit) 
SRD Surinamese dollar (as of 1 January 2004) XBB European Monetary Unit (E.M.U.-6) 
(Bond market unit) 
STD São Tomé and Principe dobra  XBC European Unit of Account 9 
(E.U.A.-9) (Bond market unit) 
SYP Syrian pound  XBD European Unit of Account 17 
(E.U.A.-17) (Bond market unit) 
SZL Swazi lilangeni (Swaziland)  XCD East Caribbean dollar 
THB Thai baht  XDR Special Drawing Rights (IMF) 
TJS Tajikistani  XFO Gold franc (Special settlement 
currency) 
TMM Turkmenistani manat XFU UIC franc (Special settlement 
currency) 
TND Tunisian dinar XOF CFA franc 
TOP Tongan pa'anga  XPD Palladium (one troy ounce)  
TRY New Turkish lira XPF CFP franc 
TTD Trinidad and Tobago dollar XP T Platinum (one troy ounce) 
XTS Code reserved for testing purposes ZAR South African rand 
XXX No currency ZMK Zambian kwacha 
YER Yemeni rial  ZWD Zimbabwe dollar 
Source: ISO 4217, Currency and fund codes G/VAL/N/1/COL/3 
- 60 - 
  Table 4: Country 
 
CODE NAME CODE NAME CODE NAME 
AD Andorra CD Congo, Democratic 
Republic of  GB United Kingdom 
AE United Arab 
Emirates CF Central African 
Republic GD Grenada 
AF Afghanistan CG Congo GE Georgia 
AG Antigua and 
Barbuda CH Switzerland GF French Guiana 
AI Anguilla CI Côte d'Ivoire   
AL Albania CK Cook Islands GH Ghana 
AM Armenia CL Chile GI Gibraltar 
AN Netherlands Antilles CM Cameroon GL Greenland 
AO Angola CN China GM Gambia 
AQ Antarctica CO Colombia GN Guinea 
AR Argentina CR Costa Rica GP Guadeloupe 
AS American Samoa  CS Serbia and 
Montenegro GQ Equatorial Guinea 
AT Austria CU Cuba GR Greece 
AU Australia CV Cape Verd e GS South Georgia and the 
South Sandwich Islands 
AW Aruba CX Christmas Island GT Guatemala 
AZ Azerbaijan CY Cyprus GU Guam 
BA Bosnia and 
Herzegovina CZ Czech Republic GW Guinea-Bissau 
BB Barbados DE Germany GY Guyana 
BD Bangladesh DJ Djibouti HK Hong Kong 
BE Belgium DK Denmark HM Heard Island and 
McDonald Islands 
BF Burkina Faso DM Dominica HN Honduras 
BG Bulgaria DO Dominican Republic HR Croatia 
BH Bahrain DZ Algeria HT Haiti 
BI Burundi EC Ecuador HU Hungary 
BJ Benin EE Estonia ID Indonesia 
BM Bermuda EG Egypt IE Ireland 
BN Brunei Darussalam EH Western Sahara  IL Israel 
BO Bolivia ER Eritrea IN India 
BR Brazil ES Spain IO British Indian Ocean 
Territory 
BS Bahamas ET Ethiopia IQ Iraq 
BT Bhutan FI Finland IR Iran, Islamic Republic 
of 
BV Bouvet Island FJ Fiji IS Iceland 
BW Botswana FK Falkland Islands 
(Malvinas)  IT Italy 
BY Belarus FM Federated States of 
Micronesia JM Jamaica 
BZ Belize FO Faroe Islands JO Jordan 
CA Canada FR France JP Japan 
CC Cocos (Keeling) 
Islands GA Gabon KE Kenya 
KG Kyrgyzstan MT Malta RE Reunion 
KH Cambodia MU Mauritius RO Romania 
KI Kiribati MV Maldives RU Russia, Federation of  
KM Comoros MW Malawi RW Rwanda 
KN Saint Kitts and 
Nevis MX Mexico SA Saudi Arabia 
KP Korea, Democratic 
Republic of MY Malaysia SB Solomon Islands G/VAL/N/1/COL/3 
- 61 - 
  CODE NAME CODE NAME CODE NAME 
KR Korea, Republic of MZ  Mozambique SC Seychelles 
KW Kuwait NA Namibia SD Sudan 
KY Cayman Islands NC New Caledonia SE Sweden 
KZ Kazakhstan NE Niger SG Singapore 
LA Laos, People's 
Democratic 
Republic of  NF Norfolk Island SH Saint Helena 
LB Lebanon NG Nigeria SI Slovenia 
LC Saint Lucia NI Nicaragua SJ Svalbard and Jan 
Mayen Islands 
LI Liechtenstein NL Netherlands SK Slovakia 
LK Sri Lanka NO Norway SL Sierra Leone 
LR Liberia NP Nepal SM San Marino 
LS Lesotho NR Nauru SN Senegal 
LT Lithuania NU Niue SO Somalia 
LU Luxembourg NZ New Zealand SR Surinam 
LV Latvia OM Oman ST São Tomé and 
Principe 
LY Libya PA Panama SV El Salvador 
MA Morocco PE Peru SY Syrian Arab Republic 
MC Monaco PF French Polynesia SZ Swaziland 
MD Moldova, Republic 
of PG Papua New Guinea TC Turks and Caicos 
Islands 
MG Madagascar PH Philippines TD Chad 
MH Marshall Islands PK Pakistan TF French Southern 
Territories 
MK Macedonia PL Poland TG Togo 
ML Malí PM Saint Pierre and 
Miquelon TK Tokelau 
MM Myanmar PN Pitcairn TL East Timor 
MN Mongolia PR Puerto Rico TM Turkmenistan 
MO Macao PS Palestine, State of TN Tunisia 
MP Northern Mariana 
Islands PT Portugal TO Tonga 
MQ Martinique PW Palau TT Trinidad and Tobago 
MR Mauritania PY Paraguay TV Tuvalu 
MS Montserrat QA Qatar TW Taiwan, Province of 
China 
TZ Tanzania, United 
Republic of  VC Saint Vincent and the 
Grenadines YE Yemen 
UA Ukraine VE Venezuela YT Mayotte 
UG Uganda VG Virgin Islands, Br itish ZA South Africa 
UM United States Minor 
Outlying Islands VI Vírgin Islands, U.S. ZM Zambia 
US United States VN Viet Nam ZW Zimbabwe 
UY Uruguay VU Vanuatu   
UZ Uzbekistan WF Wallis and Futuna   
VA Holy See WS Samoa   
Source: ISO 3166-1 Codes for countries and their subdivisions, Part 1, Country codes. G/VAL/N/1/COL/3 
- 62 - 
  Table 5 : Types of identity documents  
 
CODE NAME INCLUDES 
1 Single Taxpayer's Registration Tax identification number (BO, CO) 
Single Taxpayer's Registration (EC, PE) 
2 National Identity Document Identity card (EC, CO) 
Identification document (BO) National identification registration (BO) 
Single national registration (BO) 
National identity document (PE) 
3 Passport  
4 Public bodies  
5 Foreigner's identity card Foreigner's identification document 
6 International organizations  
7 Armed and police forces Police/Military identification document (PE) 
 
Table 6: Methods for determining customs value 
 
CODE NAME 
1 First method: transaction value of the imported goods 
2 Second method: transaction value of identical goods 
3 Third method: transaction value of similar goods 
4 Fourth method: deductive value 
5 Fifth method: computed value  
6 Sixth method: "fall-back"  
  G/VAL/N/1/COL/3 
- 63 - 
  ANNEX 3 
RESOLUTION NO. 1379 
Replaces Article 8 of Resolution No. 1239 
validity of the Andean Customs Declaration 
THE GENERAL SECRETARIAT OF THE ANDEAN COMMUNITY, 
CONSIDERING: Decision No. 571 "Customs Valuation of Imported Goods"; Resolutions Nos. 846, 
1239, 1280 and 1281; and 
WHEREAS: Pursuant to the provision in Article 9 and the First Transitional Provision of 
Decision No. 571, it is the responsibility of the General Secretariat of the Andean Community, by means of a resolution, to adopt and implement the operation of the Andean Customs Value Declaration (DAV); 
By means of Resolution No. 1281, it was decided to  update Resolution No. 1239 on adoption of the 
Andean Customs Value, setting 11 January 2011 as th e final date for implementing the submission 
of the DAV and the corresponding electronic transmission of data by users; 
By means of Circular No. AN-GNNGG-DVANC-C-034/2009 of 23 June 2009, the Bolivian National 
Customs informed that, pursuant to National Customs Directorate Resolution RD 01-010-09 of 21 May 2009, the Andean Customs Value Declaration (DAV) would enter into force throughout 
Bolivia as of 24 June 2009; 
By means of Note No. 21286/GVMCEI/DGINC/ 2010 of 31 August 2010, the Government of 
Ecuador requested an extension of the time-limit laid down in Decision No. 670 - as amended by Decision No. 716 - and in Resolutions Nos. 1280 and 1281, until March 2013, in order to be able to 
apply the formats for the Single Customs Document (DUA) and the Andean Customs Value 
Declaration (DAV); 
The aforementioned Government has justified this request by the fact that the Ecuadorian 
Customs Corporation is developing a new informatics infrastructure for the purpose of applying 
these Community formats; 
At the XXVIII
th Meeting of the Group of Experts on the Single Customs Document, held by 
videoconference on 22 October 2010 in conjunction with Customs Valuation Experts, it was agreed 
that, although considerable progress had been made in implementing the regulations required for the physical and electronic standardization of the DUA and the DAV, the request of the 
Government of Ecuador should be accepted; 
Accordingly, the Group of Experts recommended po stponing the entry into force of Resolution 
No. 1239, giving members not yet engaged in the procedure a maximum time-limit for implementing the DAV until 1 March 2013; 
At its XXVI
th Meeting, held in Lima on 26 October 2010, the Andean Committee on Customs 
Matters issued a favourable opinion on this recommendation and on the General Secretariat's draft Resolution; G/VAL/N/1/COL/3 
- 64 - 
  HEREBY DECIDES: 
Article 1. To replace Article 8 of Resolution No. 1239, replaced by Resolution No. 1281, 
by the following: 
"Article 8.- Entry into force 
This Resolution shall enter into force upon publication in the Official Gazette of the 
Cartagena Agreement. 
The final date for implementing the submission  of the DAV approved by this Resolution, 
as well as for the corresponding electronic transmission of data by users, shall be 
1 March 2013."  
Article 2. To be communicated to member countries and to enter into force upon publication 
in the Official Gazette of the Cartagena Agreement. 
Done in the city of Lima, Peru, on the fifth day of November in the year two thousand and ten. 
ANA MARÍA TENENBAUM DE REÁTEGUI 
Director-General 
responsible for the General Secretariat G/VAL/N/1/COL/3 
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  ANNEX 4 
RESOLUTION NO. 1574 
Extension of the final date for implementation of the 
Andean Customs Value Declaration for Colombia and Peru 
THE GENERAL SECRETARIAT OF THE ANDEAN COMMUNITY, 
CONSIDERING: Decision No. 571 "Customs Valuation of Imported Goods"; Resolutions Nos. 846, 
1239, 1280, 1281 and 1379; and 
WHEREAS: Pursuant to the provision in Article 9 and the First Transitional Provision of Decision 
No. 571, it is the responsibility of the Genera l Secretariat of the Andean Community, by means 
of a resolution, to adopt and implement the operation of the Andean Customs Value Declaration (DAV); 
By means of Resolution No. 1379, it was decided to  update Resolution No. 1239 on adoption of the 
Andean Customs Value Declaration, setting 1 March 2013 as the final date for implementing the submission of the DAV and for the corresponding electronic transmission of data by users; 
At its XXVIII
th meeting, held by videoconference on 30 November 2012, the Andean Committee on 
Customs Matters specified that full implementati on of the Andean regulations on the Single 
Customs Document and the Andean Customs Value Declaration includes the introduction of the 
essentially electronic formats in member countries' informatics systems for customs management, 
as well as electronic exchange among Andean Customs Administrations of the data contained and available in the DUA and the DAV and complementary documentation in electronic format; 
At the aforesaid meeting it was deemed a priority  to exchange information on the data contained 
and available in the DUA and the DAV among the Customs Administrations of member countries, 
an objective also declared in Decision 728 "Updati ng of the decision on mutual assistance and 
cooperation among the Customs Administrations of Andean Community member countries", 
accordingly its implementation as soon as possible was considered necessary provided that this 
was technologically viable; 
By means of Communication No. 000429, received on 29 November 2012, the Directorate 
of Colombia's National Revenue and Customs Dire ctorate (DIAN) requested extension of the final 
date for implementing the DAV by at least a further six months; 
By means of Circular No. 19-2013-SUNAT/300000, forwarded to this General Secretariat 
on 25 February 2013, Peru's National Tax Administ ration Supervisory Authority (SUNAT) requested 
extension of the final date for implementing the DAV until 31 December 2017 at the latest; 
At its thirty-first meeting, held by videoconfe rence on 14 February 2013, in conjunction with 
Customs Valuation Experts, the Group of Experts on the Single Customs Document recalled that, 
in the case of Bolivia, a longer period did not need to be applied inasmuch as the DAV had been 
implemented electronically since 2009. Likewise, no longer period was required for Ecuador as it had been fully implementing both the DUA and the DAV since October 2012 in its new customs 
management system called ECUAPASS; 
Accordingly, at the aforementioned meeting, th e said Group of Experts recommended amendment 
of the latest final date for full implementation of Resolution No. 1239, as amended by Resolutions 
Nos. 1281 and 1379, in the cases of Colombia and Peru; 
At its XXIX
th Meeting, held by videoconference on 10 April 2013, the Andean Committee on 
Customs Matters issued a favourable opinion on this recommendation and on the General Secretariat's draft Resolution; G/VAL/N/1/COL/3 
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  HEREBY DECIDES: 
Article 1. To replace Article 8 of Resolution No. 1239, superseded by Resolutions Nos. 1281 
and 1379, by the following: 
"Article 8.- Entry into force 
This Resolution shall enter into force upon publication in the Official Gazette of the 
Cartagena Agreement. 
Colombia and Peru, however, shall have 31 December 2017 as the final date for full 
implementation of the Andean Customs Value Declaration (DAV); 
Without prejudice to the foregoing, the implemen tation of electronic exchange of the data 
contained and available in the DAV and complementary documentation in electronic format among Andean Customs Administrations shall apply in accordance with the timetable 
defined by the Meeting of Experts on Customs Valuation by means of a Resolution. 
The General Secretariat of the Andean Community shall be responsible for coordinating 
and monitoring the procedure for implementation  of this Resolution and before the said 
final date for implementation may issue the necessary regulations for its effective 
application. " 
Article 2. To be communicated to member countries and to enter into force upon publication 
in the Official Gazette of the Cartagena Agreement. 
Done in the city of Lima, Peru, on the seventh of May in the year two thousand and thirteen. 
SANTIAGO CEMBRANO CABREJAS 
Secretary General a.i. G/VAL/N/1/COL/3 
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  ANNEX 5 
RESOLUTION NO. 1456 
Special Customs Valuation Cases 
THE GENERAL SECRETARIAT OF THE ANDEAN COMMUNITY, 
CONSIDERING:  The First Final Provision of Decision No. 571 on customs valuation of imported 
goods, its implementing regulations approved by Resolution No. 846 and Resolution No. 961 on 
Procedure for Special Cases of Customs Valuation; 
WHEREAS:  The First Final Provision of Decision No. 571 provides for the creation of an Ad Hoc 
group of government experts on customs valuation within the Andean Committee on Customs Matters for the purpose of recommending the procedures to be followed in special cases of customs valuation; 
Paragraph 2 of Article 46 of the Community regula tions approved by Resolution No. 846 provides 
that "The General Secretariat, by means of a Resolution, shall determine the special cases subsequently arising as a result of the practices of the Customs Administrations …"; 
Resolution No. 961 adopted the Procedure for Special Cases of Customs Valuation; 
At the Thirteenth Meeting of the Group of Expert s on Customs Valuation, held by videoconference 
on 14 December 2011, the representatives of me mber countries supported the draft Resolution 
prepared by the General Secretariat, which updates the procedures to be followed in certain 
special cases of customs valuation; 
HEREBY DECIDES: 
CHAPTER I 
General Provisions  
Article 1: Purpose  
The purpose of this Resolution is to lay down the criteria for determining customs value in certain 
special cases in which it is not possible to apply the principal transaction value method or the 
secondary methods, not even taking into account th e flexibility afforded by the "fall-back" method, 
either because of the special nature of the goods to be valued or the circumstances of the import 
transactions, or because there has been a change of regime or customs destination. 
In cases not covered by this present Resolution or by the legislation of each member country, 
the criteria set out in Article 17 shall be followed. 
Article 2: Additions and deductions in  order to determine the customs value 
In order to determine the customs value of impo rted goods, the additions and/or deductions 
provided in Article 6 of Decision No. 571 and Articles 18 and 31 of the Community regulations 
approved by Resolution No. 846 shall be made to the basic price resulting from application of the 
criteria contained in this Resolution. 
Article 3: Taxation This Resolution does not cover the tax treatment of imported goods, which is governed by each 
member country's domestic legislation. G/VAL/N/1/COL/3 
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  Article 4: Internal regulation of the criteria for determining customs value  
In order to implement the criteria for determining customs value established in the Articles in this 
Resolution more effectively, their order of application may be regulated by the domestic legislation of each member country. 
CHAPTER II 
Special Cases of Valuation 
Article 5: Used or obsolescent goods 
The customs value of goods which, subsequent to  their purchase but before importation, have 
been used or become obsolescent, shall be determin ed on the basis of one of the following criteria: 
(a) the reference price determined for identical or similar used or obsolescent goods 
imported, without any depreciation or application of obsolescence, as applicable; 
(b) the reference price determined for identical or similar new goods, to which 
depreciation or obsolescence shall be applied, as applicable; 
(c) the price in f.o.b. terms paid for such goods in the state in which they were 
purchased, to which the corresponding depreciation or obsolescence shall be applied; 
(d) the price estimated by an expert unrelated to the buyer or seller, with the cost being 
borne by the importer. 
For subparagraphs (b) and (c), the percentages for depreciation or obsolescence and the type 
of goods to which depreciation or obsolescence may be applied shall be determined in the legislation of each member country. Depreciation and obsolescence shall not be applied simultaneously. 
Article 6: Repaired, refurbished, remanuf actured, transformed or rebuilt goods 
The customs value of goods which, subsequent to their purchase but before importation, have 
been repaired, refurbished, remanufactured, tran sformed or rebuilt, shall be determined on the 
basis of one of the following criteria: 
(a) the reference price determined for the impo rted goods when repaired, refurbished, 
remanufactured, transformed or rebuilt without adding the value of the repair, 
refurbishment, remanufacturing, transformation or rebuilding; 
(b) the agreed price in f.o.b. terms as bought, adding the cost of the repair, 
refurbishment, remanufacturing, transformation or rebuilding. This value shall include the cost of the materials incorporated, labour, containers or packaging where 
applicable, and payment to the person who carried out the work; 
(c) the price estimated by an expert unrelated to the buyer or seller, with the cost being 
borne by the importer. 
Article 7: Spoiled, damaged or deteriorated goods  
The customs value of goods which, subsequent to their purchase but before importation, are found 
to be partly spoiled, damaged or deteriorated, with a residual value, shall be determined on the 
basis of the price actually paid or payable for th e said goods at the time of purchase or, in its 
absence, on the basis of a reference price for iden tical or similar goods, reduced pro rata to the 
spoiling, damage or deterioration, whose value may be determined using one of the 
following criteria: 
(a) an estimate by an expert unrelated to the buyer or seller, with the cost being borne 
by the importer; 
(b) the cost budgeted for the repairs or restoration; and 
(c) the compensation paid by the insurance company, where applicable. G/VAL/N/1/COL/3 
- 69 - 
  The customs value of goods completely spoiled, damaged or deteriorated shall be determined 
on the basis of the price estimated by an expert unrelated to the buyer or seller, the cost being 
borne by the importer or, where applicable, th e price estimated by the insurance company. 
Article 8: Goods imported in bulk whose quan tity or weight varies in the course of 
transport  
The customs value of goods imported in bulk in larger or smaller quantities than those agreed shall 
be determined on the basis of the unit price agre ed between the buyer and seller. The basic price 
shall be calculated by multiplying the unit price agreed in the contract by the quantity of the goods 
actually delivered. 
The percentage of variation and the goods for which this procedure shall be admissible shall be 
determined in the domestic legislation of member countries. 
Article 9: Imported goods of no commercial value  
The customs value of imported goods of no commercial value such as: presents, donations, 
publicity or promotional items and samples shall be determined using one of the following criteria: 
(a) the value recorded in the supporting documents for the transaction; 
(b) the reference prices for identical or similar goods; 
(c) the amount insured, as indicated on the insurance document; 
(d) the price estimated by an expert unrelated to the buyer or seller, with the cost being 
borne by the importer. 
Article 10: Goods imported to replace other goods  
The customs value of goods imported to replace ot her goods that have been spoiled, are defective 
or in general did not comply with the terms of the contract, shall be determined on the basis of 
one of the following criteria: 
(a) the price on the original invoice, if the replacement goods are not invoiced or invoiced 
as free-of-charge; 
(b) the price on the original invoice with an a ddition to or reduction of the value agreed 
and invoiced for the new replacement goods (where permitted by the legislation of 
each member country), provided that there has been a change in comparison with the 
goods originally imported. 
Article 11: Goods reimported after outward processing  
The customs value of goods reimported after ha ving undergone outward processing shall be 
determined taking into account the total value of the goods as reimported, including the value 
added abroad, transport costs, insurance costs and other handling costs for the shipment and return of the goods. 
The value added abroad includes the price paid or payable for the processing, preparation and 
repair of the goods, without or without a warranty, including the cost of the materials, labour, containers or packaging, other costs incurred abroad and payment to the person who carried out 
the work abroad. 
Article 12: Goods imported under the temporary admission regime The customs value of goods imported under the temporary admission regime shall be determined 
on the basis of one of the following criteria: 
(a) the value recorded in the supporting documents for the transaction; 
(b) the reference price for identical or similar goods; 
(c) the amount insured, as indicated on the insurance document; G/VAL/N/1/COL/3 
- 70 - 
  (d) the price estimated by an expert unrelated to the buyer or seller, with the cost being 
borne by the importer. 
If the goods entered under the temporary admission regime are subject to the import for 
consumption regime, the customs value shall be that determined at the time of submission and 
acceptance of the temporary admission regime declaration for the said goods. 
Article 13: Goods imported under a rental or financial leasing arrangement with or 
without a purchase option  
The customs value of goods imported under a rental or financial leasing arrangement, with or 
without a purchase option, shall be determined on the basis of one of the following criteria: 
 1. The reference price determined for identical or similar goods; 
 2. the terms of the leasing contract, in accordan ce with the following types of contract: 
(a) Without a purchase option 
The customs value shall be determined on the basi s of the present value of the rental paid or 
payable throughout the service life of the goods, using the following formulas for this purpose and 
taking into account: 
  i.  With leasing fees payable in advance:  
t
A [(1+r) – 1]
Vc = ______________
t-1
r(1+r) 
 
  ii.  With leasing fees payable in instalments:  
t
A [(1+r) – 1]
Vc = ______________
t-1
r(1+r) 
In which: 
Vc Is the actual value calculated; 
A Is the amount of the leasing fee (annual, twice-yearly, quarterly, two-monthly or monthly, 
as applicable); 
r Is the interest rate specified in the contract or, if not, the Libor (annual, twice-yearly, 
quarterly, two-monthly or monthly, according to the period indicated in A); 
t Is the service life of the goods, which may be expressed in years or fractions of a year, in 
consonance with the payments in A and r. 
If the service life is not known, the duration of identical or similar goods to those imported may 
be used or specialized firms may be consulted, with the collaboration of the importer. The service life of new or used goods shall be distinguished, using, for example, the terms "total service life" 
for the former and "remaining service life" for the latter. G/VAL/N/1/COL/3 
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   (b) With a purchase option 
The purchase option shall be exercised according to the terms of the leasing contract. Depending 
on the time of purchase, the customs value shall be determined: 
i. when the contract takes effect. The price of this option shall be the basis; 
ii. in the course of or upon expiry of the contract. The updated value of the rental fees 
paid or payable throughout the service life shall be the basis, using for this purpose 
the formulas and considerations set out in 2(a) of this Article, adding the residual 
value required. 
 
In determining the customs value according to the foregoing formulas, in addition to the additions 
and deductions presented in Article 2, the following deductions, inter alia , shall be made: 
(a) the cost of keeping and repairing the goods; 
(b) the cost of exploitation borne by the importer; 
(c) the importer's usual profit. 
Article 14: Antiquities, works of art or collectors' pieces 
The customs value of antiquities, works of art, co llectors' pieces or any goods in the making of 
which inventiveness or creativity predominated sh all be determined on the basis of one of the 
following criteria: 
(a) information obtained from specialized publications; 
(b) the values recorded in the documents relating to the transaction; 
(c) the price determined by an expert unrelated to the buyer or seller, with the cost being 
borne by the importer. 
Article 15: Determination of the customs va lue of waste from goods entering under 
a processing regime 
The customs value of waste generated by a transf ormation process, goods entering industrial 
facilities or for inward processing  shall be determined on the basis of one of the following criteria: 
(a) the selling price of the waste or other identical or similar waste on the domestic 
market, taking into account the percentage of foreign raw materials and inputs in the 
production process and with the deductions indicated in Article 5 of the WTO Customs Valuation Agreement, where applicable; 
(b) the price determined by an expert unrelated to the buyer or seller, with the cost being 
borne by the importer. 
Article 16: Valuation of cinematographic films  
The customs value of imported cinematographic films shall be determined on the basis of the value 
of the physical medium and of the licence paid for the right to show, project and distribute the 
film, purchased under a contract, to be applied pro rata to the number of copies of the films imported in each case. 
For digitally recorded cinematographic films incorporated into a physical medium, the customs 
value shall be determined in accordance with the provisions in the domestic legislation of member countries. G/VAL/N/1/COL/3 
- 72 - 
  Article 17: Criteria for othe r unregulated special cases  
In order to determine the customs value in special cases not regulated by this Resolution, by the 
instruments issued by the WTO's Committee on Customs Valuation or the WCO's Technical Committee on Customs Valuation, attached to the Community regulations approved by Resolution 
No. 846, or by member countries' legislation, th e price determined on the basis of one of the 
following criteria, inter alia, shall be taken into account: 
1. the reference price; 
2. the resale price in the country of importation, deducting the costs and charges 
incurred for import and marketing; 
3. the value recorded on the insurance documents for the goods; 
4. the value recorded in the contracts or other documents relating to the goods; 
5. the value recorded on the Export Declaration, confirmed by the customs authority in 
the exporting country; 
6. the price determined by an expert unrelated to the buyer or seller, with the cost being 
borne by the importer; 
7. the domestic market price of the goods in the exporting country and applicable in the 
importing country, provided that domestic taxes paid in the said country are 
deducted. 
To determine the customs value in accordance with the provisions in this Article, Article 7.2 of the 
WTO Customs Valuation Agreement shall be taken into account. 
Article 18: This Resolution repeals Resolution No. 961 and shall enter into force sixty days after 
its publication in the Official Gazette of the Cartagena Agreement. 
Done in the city of Lima, Peru, on the twenty-e ighth day of February in the year two thousand 
and twelve. 
ADALID CONTRERAS BASPINEIRO 
Secretary General a.i. 
 G/VAL/N/1/COL/3 
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  ANNEX 6 
RESOLUTION NO. 1684 - UPDATING OF THE COMMUNITY REGULATIONS 
IN DECISION NO. 571 - CUSTOMS VALUATION OF IMPORTED GOODS 
THE GENERAL SECRETARIAT OF THE ANDEAN COMMUNITY, 
CONSIDERING: The Treaty establishing the Court of Justice of the Andean Community, Articles 3 
and 58 of the Cartagena Agreement, Decision No. 571 of the Commission on the Customs Valuation of Imported Goods and the Administrative Procedures Regulations of the General 
Secretariat, contained in Decision No. 425 of the Andean Council of Foreign Ministers; and 
WHEREAS: The Commission of the Andean Community approved Decision No. 571 
of 12 December 2003 by which the Agreement on Customs Valuation of the World Trade 
Organization (WTO) was adopted as the subregional regulations for the customs valuation of 
imported goods; 
Pursuant to the First Transitional Provision of Decision No. 571, the General Secretariat, by means 
of Resolution No. 846, adopted the Community regu lations implementing the Decision's provisions, 
together with the Andean Customs Value Declaration' 
By means of Resolution No. 1239 on adoption of the Andean Customs Value Declaration, 
provisions on the commercial invoice and the declaration of provisional value were incorporated; 
Resolution No. 1486, Incorporation of the WCO's Technical Committee on Customs Valuation's 
implementing instruments in Resolution No . 846, complemented the aforesaid Community 
Regulations; 
It is necessary to update the single Community procedure establishing non-discriminatory 
treatment for all imports of goods into  Community Customs Territory; at its XXXI
st, XXXIInd, 
XXXIIIrd, XXXIVth, XXXVth, XXXVIth, XXXVIIth and XXXVIIIth meetings, the Group of Experts on 
Customs Valuation considered and approved a text to replace Resolution No. 846; have a single 
Community procedure that treats all goods imported into Community Customs Territory without 
discrimination; 
HEREBY DECIDES: 
First Article. The Community regulations on implementation of the customs valuation of goods 
imported into Community Customs Territory, repl acing Resolutions Nos. 846 and 1486, are hereby 
adopted and are attached as an Annex to this Resolution. 
Second Article. Articles 3 and 7 of Resolution No. 1239 shall be null and void. 
Third Article. This Resolution  shall enter into force sixty  days following its publication in the 
Official Gazette of the Cartagena Agreement. 
Done in the city of Lima, Peru, on the twenty-third day of May in the year two thousand 
and fourteen. 
Pablo Guzmán Laugier 
Secretary General G/VAL/N/1/COL/3 
- 74 - 
   
ANNEX 
Community Regulations implementing Decision No. 571 - 
Customs valuation of imported goods 
Contents 
Title I 
General provisions 
Article 1. Customs valuation of imported goods 
Article 2. Definitions 
Title II 
Determination of the customs value 
General provision 
Article 3. Methods for determining the customs value 
Chapter I 
First method: Transaction value of the imported goods 
Article 4. General aspects of the transaction value 
Section I 
Aspects essential for application 
Article 5. Requirements for applying the transaction value method 
Article 6. Sale Article 7. Sale for export 
Article 8. Price actually paid or payable 
Article 9. Commercial invoice Article 10. Price discounts or rebates 
Article 11. Restrictions 
Article 12. Conditions Article 13. Accruals 
Article 14. Relationship 
Article 15. Influence of the relationship Article 16. Test values Article 17. Transfer prices 
Article 18. Goods that do not comply with the terms of the contract 
Article 19. Time and quantity aspect 
Section II 
Elements to be included and excluded when determining the transaction value 
Article 20. Additions to the price actually paid or payable 
Article 21. Brokers or agents 
Article 22. Commission 
Article 23. Sales commission Article 24. Buying commission Article 25. Brokers and brokerage 
Article 26. Containers or packaging 
Article 27. Benefits Article 28. Royalties and licence fees 
Article 29. Proceeds of the resale, assignment or use of the goods 
Article 30. Cost of delivery to the place of importation Article 31. Transport costs 
Article 32. Cost of insurance 
Article 33. Elements to be deducted or which may not be added to the price paid or payable G/VAL/N/1/COL/3 
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  Section III 
Declaration of provisional value 
Article 34. Procedure for determining the pr ovisional customs value of imported goods 
Article 35. Action by the Customs Administration for the determination of provisional values 
Chapter II 
Secondary methods 
Article 36. Application of secondary methods 
Section I 
Second method: transaction value of identical goods 
Article 37. General aspects of application 
Article 38. Adjustments 
Article 39. Time element 
Article 40. Absence of prior transaction values for identical goods 
Section II 
Third method: transaction value of similar goods 
Article 41. General aspects of application 
Article 42. Adjustments 
Article 43. Time element 
Article 44. Absence of prior transaction values for similar goods 
Section III 
Fourth method: Deductive value 
Article 45. General aspects of application 
Article 46. Time element 
Section IV 
Fifth method: Computed value 
Article 47. General aspects of application 
Section V 
Sixth method: "Fall-back" 
Article 48. Procedure 
Article 49. Prohibitions 
Title III 
Customs valuation controls 
Article 50. General 
Article 51. Risk factors 
Article 52. Additional verifications and controls 
Article 53. Doubts concerning the truth or accuracy of the value declared and the supporting documents 
Article 54. Supporting documents 
Article 55. Use of reference prices Article 56. Fraudulent documents Article 57. Mutual assistance and cooperation with third countries G/VAL/N/1/COL/3 
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  Title IV 
Final provisions 
Article 58. Permanent adjustments of value 
Article 59. Generally accepted accounting principles 
Article 60. Values accepted by the Customs Administration 
Article 61. Objective and quantifiable data Article 62. Guarantees 
Article 63. Obligation to supply information 
Article 64. Conclusion of agreements with the private sector Article 65. Right of appeal Article 66. Implementing instruments 
Article 67. INCOTERMS 
Appendix 
Texts of the Technical Committee on Customs Valuation of the World Customs Organization (WCO) 
Advisory opinions 
Commentaries Explanatory notes 
Case studies 
Studies Decisions of the Technical Committee on Customs Valuation of the World Customs Organization (WCO) 
 G/VAL/N/1/COL/3 
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TITLE I 
GENERAL PROVISIONS 
Article 1: Customs valuation of imported goods 
1. The customs value of imported goods is the taxable base for payment of ad valorem 
customs duties and shall be determined in acco rdance with the methods and procedures in the 
WTO Customs Valuation Agreement, in conjunction with the provisions in Decision No. 571 and in 
these Regulations. 
2. The customs value may be taken into account for the purpose of determining the taxable 
base for other import duties and taxes defined in the Community regulations, in accordance with the provisions in these regulations and in relevant domestic legislation. 
Article : Definitions 
For the purposes of applying the provisions co ntained in the WTO Customs Valuation Agreement, 
in Decision No. 571 and in these regulations, the following definitions are adopted to complement 
those already contained in the said Agreement. 
(a) WTO Customs Valuation Agreement: 
The Agreement on Implementation of Articl e VII of the General Agreement on Tariffs 
and Trade 1994 of the World Trade Organization. 
(b) Objective and quantifiable data:  
Data that can be proved by material elements such as written documents, magnetic, digital or 
electronic media, and can be the subject of ma thematical calculations and/or verification. 
(c) Goods:  
Any good that can be transported, classified in the NANDINA nomenclature and be subject to 
customs control. 
(d) Goods of the same class or kind:  
Goods which fall within a group or range of goods produced by a particular industry or industry 
sector and includes, but is not limited to, identical or similar goods. 
(e) About the same time:  
T h e  p e r i o d  a s  c l o s e  a s  p o s s i b l e  t o  t h e  t i m e  o r  d a t e  o f  i m p o r t a t i o n ,  e x p o r t a t i o n  o r  s a l e  d e f i n e d  
according to the relevant method during which commercial practices and market conditions affecting the price remain the same. 
(f) Time of export:  
Date of shipment shown on the transport document or freight manifest for the purpose of applying 
Articles 2 and 3 of the WTO Customs Valuation Agreement. 
(g) Time of import:  
For the correct application of Article 5 of the Ag reement, the time of import means the date of 
arrival or physical introduction of goods of foreign origin into Community customs territory. G/VAL/N/1/COL/3 
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  (h) Commercial level:  
The rank or position occupied by the buyer in the scale of marketing and whose commercial 
conditions are of genuine benefit to the buyer as an industrial user (manufacturer), wholesaler, retailer, dealer, end user or otherwise; may be verified by the Customs Administration. 
(i) Direct payments:  
Payments actually paid or payable by the buyer to the seller as a condition of sale of the imported 
goods. 
(j) Country of procurement or purchase:  
Country in which the transaction takes place, i.e. where the invoice or any other documents 
reflecting the commercial transaction is issued. 
(k) Reference prices:  
International prices identical or analogous to the goods being valued, taken from specialized 
international sources such as books, publications, reviews, catalogues, price lists, estimates, prior 
import prices for the goods to be inspected by the Customs and those taken from the customs 
data banks, including prices for goods obtained by studying values. These sources may be taken 
from printed, digital or electronic media. 
(l) Transfer prices:  
The prices at which a company or person transfers material or intangible goods or provides 
services to related companies or persons. 
(m)  Benefits:  
Goods and services supplied, directly or indirectly , by the buyer to the producer, free of charge or 
at reduced cost, to be used for production and sale of the goods for export to Community Customs 
Territory. 
(n) Community customs territory:  
The territory that includes the national customs territories of Andean Community countries, within 
which the rules on customs valuation have effect and are fully applied. 
(o) Test values:  
The customs values indicated below, accepted in ad vance by the customs authority, in effect at or 
about the same time and used by the importer for the purpose of demonstrating that the first method of valuation, "Transaction value" is accepted, when the sale is between related persons: 
(i) the transaction value in sales to unrelated buyers of identical or similar goods for 
export to the same country of importation; 
(ii) the customs value of identical or similar goods as determined using the deductive 
value method; 
(iii) the customs value of identical or similar goods as determined using the computed 
value method. 
 
The values covered by this section are to be used solely for comparison purposes and may in no 
case replace the value declared. G/VAL/N/1/COL/3 
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  (p) Provisional customs value:  
Value declared by the importer when the price actually paid or payable has not been finally 
determined and depends on a particular situation in  the future or when the elements indicated in 
Article 8 of the Agreement are not known at the time of declaring the customs value and may be 
estimated. 
(q) Sale:  
Commercial transaction by which the ownership of a good is transferred in exchange for payment 
of a price. 
(r) Tie-in sales:  
Sales in which a condition or consideration concerning the price, the sale of the goods or both has 
been agreed. 
(s) Successive sales:  
Series of sales of the good prior to its import or introduction into Community Customs Territory, 
or a sale in the aforesaid Territory before acceptance of the customs declaration for the goods 
submitted for the purpose of their importation. 
TITLE II 
Determination of the customs value 
General Provision 
Article 3: Methods for determining the customs value The methods for determining the customs value or taxable base for the payment of import taxes 
are those indicated in Article 3 of Decision No. 571, namely: 
1. First method:  Transaction value of imported goods. 
2. Second method:  Transaction value of identical goods. 3. Third method:  Transaction value of similar goods. 
4. Fourth method  Deductive value. 
5. Fifth method: Computed value. 6. Sixth method:  "Fall-back". 
The methods for determining value shall be applied strictly in the sequential order indicated above 
in accordance with the General Note to the WTO Customs Valuation Agreement. 
The order of application of the methods indicated in numbers 4 and 5 of this Article may be 
reversed, if requested by the importer and with the consent of the Customs Administration. 
Accordingly, when application of the computed value method has been exhausted, the deductive 
value method shall be applied. 
If the Customs Administration has consented to such reversion, when it is not possible to 
determine the customs value or the taxable base using the computed value or deductive value 
methods, the "fall-back" method shall be followed. G/VAL/N/1/COL/3 
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  Chapter I 
First method: transaction value of the imported goods 
Article 4: General aspects of the transaction value 1. For the valuation of imported goods using the first or principal method called the transaction 
value, the provisions of Articles 1 and 8 of  the WTO Customs Valuation Agreement and the 
relevant Interpretative Notes shall be taken into account, together with the general guidelines in 
Decision No. 571 and the provisions in these regulations. 
2. The transaction value is defined as the price actually paid or payable for the goods when 
sold for export to the Community Customs Territory, adjusted in accordance with the additions provided in Article 20 and the deductions for expe nses and costs which do not form part of the 
customs value as indicated in Article 33 of these regulations, provided that the requirements set 
out in the following Article are met. 
3. The customs value using the transaction value method shall be calculated on the Andean 
Customs Value Declaration form in accordance with the provisions in the Community rules.  
Section I 
Aspects essential for application 
Article 5: Requirements for applyi ng the transaction value method 
In order to permit the transaction value method to be applied and accepted by the Customs 
Administration, the following requirements shall be met: 
(a) the goods to be valued have been the subject of an actual international transaction 
involving a sale for export to Community Customs Territory; 
(b) an actual price has been agreed implying the existence of a payment, irrespective of 
the date on which the transaction occurred and any subsequent change in prices; 
(c) in the foregoing terms, the price actually paid  or payable, directly or indirectly, to the 
seller of the imported good can be substantiated in the form indicated in Article 8 of 
these regulations; 
(d) all the conditions required pursuant to subparagraphs (a), (b), (c) and (d) 
of paragraph 1 of Article 1 of the WTO Customs Valuation Agreement have been met; 
(e) if appropriate, the price actually paid or payable for the imported goods may be 
adjusted in accordance with objective and quantifiable data, as provided in Article 20 of these regulations; 
(f) the imported goods correspond to the terms of the contract concerning the 
transaction, taking into account the indications in Article 18 of these regulations; 
(g) the commercial invoice complies with the requirements laid down in Article 9 of these 
regulations; and 
(h) the accounting information submitted has been prepared in accordance with generally 
accepted accounting principles. 
Article 6: Sale 
1. The transaction value method may only be applied if importation is obligatorily the result of 
a sale, as defined in Article 2(p) of these regula tions. If there is no such sale, the subsequent 
methods indicated in subparagraphs 2 to 6 of Article 3 of Decision No. 571 shall be used, in the 
sequential order laid down in Article 4 of the aforesaid Decision. 
2. Non-exhaustive instances of cases in which there is no sale include the following: 
(a) free gifts, such as presents, donations, samples, promotional items; 
(b) goods imported on consignment; 
(c) goods imported by intermediaries that have not bought them but sell them after they 
have been imported; G/VAL/N/1/COL/3 
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  (d) goods imported where the importer and supplier are the same person; 
(e) goods imported by subsidiaries that are not legal persons; 
(f) goods imported in execution of a hire or leasing contract; 
(g) goods supplied on loan that remain the property of the consignor; 
(h) goods (residues) imported for destruction in the country of importation; and 
(i) straightforward bartering, when the transaction is not expressed in monetary terms 
and there are no objective and quantifiab le data for determining the elements 
constituting a sale. 
3. In the case of barter or offsetting transact ions, considered to be an exchange of goods 
or services of more or less the same value without any exchange of money or those which are partly expressed in monetary terms, it shall be determined whether or not a sale has occurred. 
Offsetting transactions or barter operations expressed in monetary terms may be deemed sales 
provided that a price has actually been paid or is payable determined on the basis of a form of 
payment related to the imported goods. 
In such cases, account shall be taken of whether this type of transaction entails a condition whose 
value may be determined in accordance with Article 1(b) of the WTO Customs Valuation Agreement. 
Article 7: Sale for export 
1. The sale shall be for export to Community Customs Territory where the goods are to be 
imported, and this shall be proven to the satisfaction of the customs authorities. 
2. If the goods have been sold for the sole purpose of introducing them into the Customs 
Territory, this shall be taken into account as a sufficient indication that they have been sold for 
export to this Territory. 
3. The actual international transfer of ownership of goods introduced into Community Customs 
Territory shall also be considered an indication th at the sale has been for export to the aforesaid 
Territory. 
4. In the case of successive sales before importation, the indication appearing in the preceding 
paragraphs shall only apply to the last sale which led to the introduction or importation of the 
goods into Community Customs Territory or a sale taking place in the aforesaid Territory before acceptance of the customs declaration for the goods submitted for the purpose of their importation. 
Article 8: Price actually paid or payable 
1. Pursuant to Article 4.2 above, the fundamen tal basis on which the method involving the 
transaction value of the imported goods rests is the price actually paid or payable for the goods as 
incidental to their sale. 
2. The price actually paid or payable is the price of the imported goods and represents the total 
payment for these goods actually made or to be ma de by the buyer to the seller, directly and/or 
indirectly for the benefit of the said seller. 
3. Indirect payments are those made to a third party for the benefit of the seller or to meet a 
commitment by the seller as a condition imposed for the transaction and are decisive in determining the total price agreed for the goods.  The common trait is that such payments are 
separate from the direct payment made for the goods imported. 
Such payments shall be declared to and duly substantiated and documented with the customs 
authorities by the importer. G/VAL/N/1/COL/3 
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  4.  Where advance payments are made or when there are prior payments or payments covered 
by two or more commercial invoices or contracts incidental to the buying or selling of the good to be valued, all such payments shall form part of the price actually paid or payable and shall be 
declared. 
5. All payments made by the buyer for the sale of the imported goods shall be verified in order 
to establish whether any indirect payments to be used to determine the price actually paid or payable by the buyer to the seller for the goods have not been declared and accordingly to 
determine the correct customs value. 
6. Any acts by the buyer on his/her own behalf and not imposed by the seller, other than those 
for which an adjustment is provided according to Article 20 of these regulations, shall not be considered indirect payment to the seller, even if  they are for the seller's benefit, and therefore 
the costs incurred in carrying out such acts shall not form part of the customs value. 
Such acts by the buyer may concern the marketing of the imported goods, including that under an 
agreement with the seller, buying commissions, tests or analyses, or the cost of obtaining a letter 
of credit. 
7. Likewise, payments by the buyer to the seller unrelated to the imported goods, for example, 
dividends paid to the seller in his/her capacity as  a shareholder, do not form part of the customs 
value of such goods. 
8. Payment of the price of the imported goods need not necessarily take the form of money 
and may be made in other forms, for example, a letter of credit, a negotiable instrument or any other relevant security, as well as any form of consideration implying the existence of the price 
and the payment. Bills of exchange, transfer of shares or bonds or, in certain cases, of any 
negotiable document are also valid. 
9. The price resulting from "dumping", subsidization or export premiums may be accepted for 
the purposes of valuation if it is the price actually paid or payable by the buyer to the seller, 
provided that the requirements in Article 1.1 of the WTO Agreement on Customs Valuation are 
met. In order to combat such practices, the relevant rules shall be followed, in accordance with 
Article 23 of Decision No. 571. 
Article 9: Commercial invoice For the purposes of applying the first method  "transaction value of the imported goods" 
determined in Article 1 of the WTO Customs Valu ation Agreement, the commercial invoice shall: 
1. Reflect the price actually paid or payable for the imported goods by the buyer to the seller, 
whether paid directly and/or indirectly. 
2. Be an original final document. Accordingly, a pro forma invoice shall not be accepted. 
3. Be issued by the seller of the goods. 
4. Contain no erasures, additions or alterations. 
5. Contain the following information as a minimum: 
(a) number and date of the shipment; 
(b) place of issue of the invoice; 
(c) name and address of the seller; 
(d) name and address of the buyer; 
(e) description of the goods; 
(f) quantity; 
(g) unit and total prices; 
(h) currency of the commercial transaction; 
(i) place and terms of delivery of the goods, according to the "INCOTERMS" international 
trade terms established by the International Chamber of Commerce or any other 
designation setting out the seller's conditions of sale for the imported goods, unless 
this is covered by an international sales contract; 
(j) other information determined in accordance with each member country's legislation. G/VAL/N/1/COL/3 
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  6. The commercial invoice may be in the form of an email, in which case it shall meet the 
requirements indicated above. For the purposes of control, the provisions determined in domestic legislation regulating e-trade shall be taken into account. 
7. If the commercial invoice is in a language other than Spanish, the Customs Administration 
may require the importer to attach the corresponding translation. 
8. Invoices issued which indicate therein "for customs purposes" or those which have been 
issued in cases in which no transaction took place shall not be taken into account for the purpose 
of determining the customs value. 
9. If the goods invoiced are described using codes, the importer shall attach the lists giving 
descriptions of the goods corresponding to each code, if so required by the Customs Administration. 
10. In order to comply with the requirements in dicated in the foregoing paragraphs of this 
Article, the Customs Administration's power to carry out the necessary customs controls shall not be limited, in accordance with the provisions in Article 53 of these regulations. 
Errors or omissions relating to the requirements concerning the commercial invoice shall be 
handled in accordance with the indications in Advisory Opinion 11.1 of the Technical Committee on Customs Valuation. 
Article 10: Price discounts or rebates 
1. Discounts or rebates given by the seller of the imported good shall be taken into account 
when determining the customs value inasmuch as the actual and total payments by the buyer to 
the seller constitute the basis for the transaction value method. The price actually paid or payable 
obtained after applying such discounts or rebates shall be accepted provided that: 
(i) the discount is related to the goods to be valued; 
(ii) it is not a retroactive discount given for goods imported before the importation to 
which the rebate or discount applies, corresponding to transactions other than that 
relating to the goods to be valued; 
(iii) the buyer is actually benefiting from the discount, in other words, the assumptions 
that gave rise to the discount apply; 
(iv) the discount is clearly distinguished from the price of the goods in the commercial 
invoice and/or sales contract and the form and amount of the rebate is specified; 
(v) all the goods that are the subject of the transaction have been sold for export to 
Community Customs Territory and bought by the same person. 
If any of the aforementioned requirements is no t met, the discounts given by the seller shall be 
dismissed by the Customs Administration for the purpose of determining the customs value of the 
imported goods. In such cases, the said discounts shall be considered to be part of the price paid 
or payable for the purpose of calculating the customs value. 
2. Discounts for cash payment are acceptable, even if at the time of valuation total payment 
has not yet been made. As it is the price paid or payable, the amount to be paid by the importer 
for the goods shall be accepted as the basis for valuation. 
3. For discounts for volume, the total volume agreed for shipment within a specified period 
shall be taken into account and this applies to partial deliveries. 
4. The transaction value may not be rejected simply  because the declared value of the goods is 
lower than current market prices for identical or similar goods. A price lower than current market 
prices shall be accepted provided that the value declared corresponds to the price actually paid or 
payable, as indicated in the preceding Article. G/VAL/N/1/COL/3 
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  Article 11: Restrictions 
1. Restrictions imposed on the buyer by the selle r for the disposal or use of the goods after 
they have been imported and which significantly affect their price shall result in rejection of the transaction value. Such restrictions occur, for ex ample, when the goods imported are to be used 
for a specific purpose, as prototypes, for charitable or educational purposes, or are imported for 
promotional purposes, and are sold at a reduced or symbolic price. 
2. The transaction value shall not be rejected when the restrictions correspond to any of the 
provisions in Article 1.1(a) of the WTO Customs Valuation Agreement, namely: 
(i) restrictions imposed by national or community requirements or regulations under the 
law or by the authorities of Community Customs Territory; 
(ii) restrictions relating to the resale of the imported goods in certain territorial or 
geographical areas; 
(iii) restrictions that do not substantially affect the value of the imported goods and do not 
prevent acceptance of the transaction value. 
Article 12: Conditions 
1. For the purposes of customs valuation, conditions means those contractual requirements 
imposed by the seller concerning the price or sale of the imported goods. If the conditions cannot 
be quantified, in other words, it cannot be determined to what extent they are reflected in the 
price agreed, the transaction value shall be rejected; for this purpose, the examples cited in the Interpretative Note to Article 1, paragraph 1(b), of the WTO Customs Valuation Agreement shall be taken in account. 
The value of the condition, where it is known and is related to the goods imported, forms part 
of the price actually paid or payable and does not lead to rejection of the transaction value. 
2. According to the definition of related sales in  Article 2.1 of these regulations, where the 
condition refers to the price, it shall be deemed that this does not constitute the sole consideration 
inasmuch as it depends on conditions relating to other transactions between the seller and buyer whose value cannot be determined in relation to th e goods to be valued, therefore, the transaction 
value shall be rejected. 
Where the condition refers to the sale, it is a question of offsetting transactions, in other words, 
sales to a particular country depend on sales from that country and the payment mechanism consists of an exchange of goods or even services . In such cases, it shall be ascertained whether 
the requirements for the transaction value method apply and the value of the condition shall be 
added, provided that it can be quantified. 
3. Conditions or considerations relating to the production or marketing of imported goods shall 
not lead to rejection of the transaction value. Likewise, the value of marketing conditions shall not 
be included in the customs value, even if they have been agreed between the seller and the buyer. 
Article 13: Accruals 
1. Pursuant to Article 1.1(c) of the WTO Customs Valuation Agreement, for the purposes of 
applying the first method indicated in Article 3 of Decision No. 571, no part of the proceeds of resale or any subsequent disposal or use of the goods by the buyer shall accrue directly or indirectly to the seller, unless an appropriate corresponding adjustment can be made in 
accordance with Article 8 of the aforesaid Agreement. 
The proceeds referred to in the preceding paragraph mean any payment which by contract is 
directly or indirectly paid to the seller of the goods being valued, except for those payments 
relating to patents, trademarks or copyright. G/VAL/N/1/COL/3 
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  2. The mere existence of the proceeds of any subsequent resale, disposal or use of the goods 
by the buyer implies an adjustment in accordance with Article 8.1(d) of the WTO Customs Valuation Agreement, without the need for such payments to have been agreed as a condition of sale. If the adjustment cannot be made, the tr ansaction value method may not be applied. 
3. The most typical cases consist of transactions with sharing of profits, in which the 
two parties to the sale agree to share a specified pe rcentage of the profits earned from the sale of 
the goods in the Community Customs Territory into which they are imported. 
The proceeds of resale of the goods after they ha ve been imported should not be confused with 
payment of dividends inasmuch as these ar e based on a company's overall profits. 
Article 14: Relationship 1. The existence of a relationship between the buyer and seller, in accordance with the 
definition given in Article 15.4 of the WTO Customs Valuation Agreement, does not in itself 
constitute sufficient reason to consider the transaction value to be unacceptable. If the relationship has had no effect on the price agreed between the related parties, the transaction value method 
shall not be rejected. 
2. For the purposes of the relationship indicate d in Article 15.4(b) of the said Agreement 
concerning a business association, this shall only be considered to be a partnership if the national 
legal requirements for the creation of a partnership are satisfied. In this connection, Advisory 
Opinion 21.1 of the Committee on Customs Valuation defines a partner as "one who is associated with one or more persons in the same business  and shares with them its profits and risks; 
a member of a partnership". 
3. According to the Interpretative Note to Ar ticle 15.4(e) of the WTO Customs Valuation 
Agreement, one person shall be deemed to control another when the former is legally or operationally in a position to exercise restraint or direction over the latter, in other words, has 
decisive authority over the latter's decisions or management in any way. 
4. To complement Article 15.4(h) of the WTO Customs Valuation Agreement regarding family 
relationships, the following shall be deem ed to be members of the same family: 
(a) husband or wife; 
(b) children; 
(c) parents; 
(d) brothers and sisters; 
(e) grandchildren; 
(f) grandparents; 
(g) uncles or aunts, or nephews or nieces; 
(h) fathers- or mothers-in-law or sons- or daughters-in-law. 
(i) brothers- or sisters-in-law. 
5. In the case of sole agents, sole distributors or sole concessionaires, in order to determine 
whether or not there is a relationship, each transaction shall be examined in accordance with the 
criteria laid down in Article 15.4 of  the WTO Customs Valuation Agreement. 
6. In the case of subsidiaries, if they are not recognized as independent legal persons, 
the existence of a relationship requiring the existence of at least two parties cannot be presumed; 
in such cases, it shall be considered that no sale has taken place. G/VAL/N/1/COL/3 
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  Article 15: Influence of the relationship 
1. Where the relationship between the buyer and the seller of the imported goods has 
influenced the price agreed between the parties, the declarant shall notify this in the Andean 
Customs Value Declaration; in such cases, the transaction value method may not be applied and 
the imported goods shall be valued utilizing in sequence the other methods indicated in Articles 3 
and 4 of Decision No. 571. 
2. Where no specific declaration has been made in this respect and the Customs Administration 
has justified grounds for considering that the relationship has influenced the price, it shall inform 
the importer in writing of the reasons for which the transaction value is deemed unacceptable, giving a reasonable period for reply, providing evidence to prove that the relationship has not 
influenced the price, if this is the case. In such  cases, the provisions in Articles 16, 17 and 18 of 
Decision No. 571 shall be taken into account. 
3. Proof that the relationship has not influenced the price shall consist of evidence to enable 
the application of one of the following two procedures: 
(a) Examination of the circumstances of the sale, covering special terms for the 
transaction which governed the price and which apply equally to independent buyers in the absence of any relationship, for example, market prices obtained from other 
unrelated sellers, sales contracts, the seller's price lists, the amounts bought. 
In considering the circumstances surrounding the transaction, the Customs 
Administration shall examine the following aspects: 
(i) the way in which the buyer and seller organize their commercial relations; and 
(ii) the way in which the price in question was arrived at. 
Where it can be shown that the buyer and seller, although related, buy from and sell 
to each other as if they were unrelated, th is would demonstrate that the price had not 
been influenced by the relationship. 
There are three situations which the Customs Administration may consider to 
be proof: 
(i) the price had been adjusted in a manner consistent with the normal pricing 
practices of the industry in question; or 
(ii) the price had been adjusted in a way consistent with the method by which the 
seller settles selling prices to buyers who are not related to him; or 
(iii) the price is adequate to recover all costs plus a profit indicative of the firm's 
overall profit over a representative period of time for the sale of goods of the same kind or class. 
In any event and without being requeste d by the Customs Administration, the 
importer may request that a study of the circumstances of the sale be conducted with regard to its relations with its foreign suppliers, providing the necessary information 
for this purpose. 
In examining the circumstances of the sale, any relevant information and documents 
provided by an importer may be utilized and shall be subject to review and acceptance by the Customs Administration. A transfer pricing study may be one source of such 
information, in accordance with the indications in Commentary 23.1 of the Technical 
Committee on Customs Valuation. 
(b) Use of a test value as indicated in the following Article, in other words, 
a demonstration that the declared value of the goods complies with one of the 
customs values indicated as a test in Article 1.2(b) of the WTO Customs Valuation Agreement and is, therefore, acceptable for th e purposes of the provisions in Article 1 
of the said Agreement. G/VAL/N/1/COL/3 
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  4. After the allotted time has expired and the import er has not responded or if the explanations 
provided were not sufficient to consider the transaction value to be acceptable, in application of Article 17 of Decision No. 571, the customs au thority shall determine the customs value of the 
imported goods using the other methods, in accordance with the provisions in Chapter II 
of this Title. 
5. In considering whether the relationship has influenced the price, demonstrated facts shall be 
taken into account, in particular, the guidelines in paragraph 2 of the Interpretative Note 
to Article 1 of the WTO Customs Valuation Agreement.  
Article 16: Test values 1. With regard to the definition in Article 2(n) of these regulations, a value shall only be 
considered a test value if it has been accepted by the Customs Authority for identical or similar 
goods imported by other importers unrelated to the seller and provided that: 
(a) the customs value of the identical or similar good used for the purposes of comparison 
has been determined by applying the transact ion value method and is in effect at or 
about the same time as that of export of the good to be valued to Community 
Customs Territory; 
(b) the customs value of the identical or similar good used for the purposes of comparison 
has been determined by applying the deductiv e method and is in effect at or about the 
same time as that of sale of the good to  be valued to Community Customs Territory; 
(c) the customs value of the identical or similar good used for the purposes of comparison 
has been determined by applying the computed value method and is in effect at or 
about the same time as that of import of the good to be valued. 
For this purpose, the definition of "about the same  time" in Article 2(e) of these Regulations shall 
be taken into account. 
The value determined for the imported goods in accordance with Articles 2, 3 and 7 of the WTO 
Customs Valuation Agreement shall not be considered a test value. 
2. Test values may only be used where importers are related to the seller, solely for the 
purposes of comparison in order to ensure accept ance of the transaction value, without prejudice 
to the other requirements laid down in Article 5 of these regulations for its application and provided that the value declared closely approximates to one of the values indicated in subparagraphs (a), (b) or (c) above. 
3. The test values in Article 1 of the WTO Customs Valuation Agreement may never replace the 
declared value. 
4. Where one of the test value applies, it is not necessary to examine the influence of the 
relationship on the price. 
If the Customs Administration already has sufficient information to consider that one of the test 
values applies or if it finds that there is a previously accepted customs value in its records that 
may be used as a test value, but is unknown to the importer, this test value may be used 
to determine the acceptability of the price in question, without any such request from the importer. In such cases, it is not necessary to require the importer to demonstrate that the test value applies. 
5. Adjustments for differences in the commercial level, in quantity or in aspects covered 
in Article 20 of these regulations shall be taken into account when applying test values. 
Article 17: Transfer prices 
When transfer prices have been agreed, the import er either spontaneously or at the request of the 
Customs Administration, shall prove that such prices correspond to the price actually paid or payable; in particular that the relationship existing did not influence the price and that the other G/VAL/N/1/COL/3 
- 88 - 
  requirements in Article 5 of these regulations are met; if this is not the case, application of the 
transaction value method shall be rejected. 
Article 18: Goods that do not comply with the terms of the contract 1. If imported goods are found not to comply with  the terms of the contract or agreement at 
the time of valuation, for example, the goods have  perished or been damaged, there are mistakes 
or items missing in deliveries, or the goods do not correspond to the samples supplied or the terms agreed, they may not be valued according to  the principal method of the transaction value. 
2. If the buyer accepted the goods in the condition as received, at the price originally agreed, 
the transaction value method may be used if the requirements laid down in Article 5 of these regulations are met. If this is not the case, the valuation shall be based on the provisions in the other methods, in particular, that resulting from application of the so-called "fall-back" method, as 
provided in Section V of Chapter II of this Title. 
3. In this regard, the Community or domestic provisions adopted shall be taken into account, 
together with the directions given in Explanatory Note 3.1 of the Technical Committee on Customs 
Valuation. 
Article 19: Time and quantity aspect 1. When determining the customs value using the transaction value method, the price invoiced 
shall be accepted as the basis for calculating the customs value unless there are other reasons for 
rejecting it, irrespective of the time at which the transaction took place according to the invoice or bill of sale and provided that the said transaction complies with commercial usage for the goods imported. 
For the foregoing reason, market fluctuations that occur after the date of signature of the contract 
shall not be taken into account. 
2. The total agreed quantity of the goods to be va lued shall be considered for the purposes of 
applying the transaction value method, therefore, this is the quantity to be taken into account for 
determination of the unit price of the goods to be valued, even in the case of partial or staggered 
deliveries or incomplete loads. 
Section II 
Elements to be included and excluded when determining the transaction value 
Article 20: Additions to the pr ice actually paid or payable 
1. In determining the customs value using the transaction value method, the factors indicated 
below shall be added to the price actually paid or payable for the imported goods, in accordance 
with Article 8 of the WTO Customs Valuation Agreement: 
(a) the following, to the extent that they are in curred by the buyer but are not included in 
the price actually paid or payable for the goods: 
(i) commissions and brokerage, except buying commissions; 
(ii) the cost of containers which are treated as being one for customs purposes with 
the goods in question; 
(iii) the cost of packing whether for labour or materials. 
(b) the value, apportioned as appropriate, of  the following goods and services where 
supplied directly or indirectly by the buyer fr ee of charge or at reduced cost for use in 
connection with the production and sale for export of the imported goods, to the 
extent that such value has not been included in the price actually paid or payable: 
(i) materials, components, parts and similar items incorporated in the imported 
goods; G/VAL/N/1/COL/3 
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  (ii) tools, dies, moulds and similar items used in the production of the imported 
goods; 
(iii) materials consumed in the production of the imported goods; 
(iv) engineering, development, artwork, design work, and plans and sketches 
undertaken elsewhere than in Community Customs Territory and necessary for 
the production of the imported goods; 
(c) royalties and licence fees related to the goods being valued that the buyer must pay, 
either directly or indirectly, as a condition of sale of the goods being valued, to the 
extent that such royalties and fees are not included in the price actually paid or payable; 
(d) the value of any part of the proceeds of an y subsequent resale, disposal or use of the 
imported goods that accrues directly or indirectly to the seller. 
(e) the cost of transport of the imported goods to the port or place of importation; 
(f) loading, stevedoring, unloading, handling and other charges associated with the 
transport of the imported goods to the po rt or place of importation, except for 
unloading and handling charges at the place of importation, provided that they are 
distinguished from the overall transport costs; and 
(g) the cost of insurance. 
2. No additions may be made to the price actually  paid or payable in determining the customs 
value except as provided in paragraph 1 above. 
3. Additions to the price actually paid or payable as a result of factors provided in paragraph 1 
above may only be made on the basis of objective and quantifiable data, as duly shown in the 
relevant supporting documents. 
Article 21: Brokers or agents 
1. A broker or agent means the person acting on behalf of a principal or client and facilitating 
conclusion of the sales contract, representing either the seller or the buyer. 
Accordingly, a broker acting on behalf of the se ller shall be called the "sales broker" and that 
acting on behalf of the buyer shall be called "the buying broker". 
For the purposes of identifying them correctly, th e broker's activities shall determine the nature 
of his/her role. 
2. If a broker issues another invoice for the good s, the price actually paid or payable to be 
used in determining the customs value shall still be that agreed between the buyer and the seller, 
as shown in the commercial invoice issued by the seller of the goods, without prejudice to consideration of other appropriate supporting documents when the transaction involves indirect 
payments or other elements constituting the price. 
Article 22: Commission 1. For the purposes of these regulations, commission means the remuneration paid by the 
buyer or seller of the imported goods to an in termediary termed the agent or broker for the 
services rendered to facilitate conclusion of the sales contract for the said goods. 
The remuneration received is usually in the form  of a percentage of the price of the goods. 
2. Sales commission and buying commission mean , respectively, the payment received by the 
sales agent or the buying agent, as appropriate. 
The terms "sales agent and commission" and "buying agent and commission" shall reflect the 
status of the person on whose behalf the services  are provided and not the fact that a commission 
is paid. G/VAL/N/1/COL/3 
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  Article 23: Sales commission 
1. Sales commission shall be added to the price ac tually paid or payable, provided that the 
following requirements are met: 
i. it is not included in the said price; 
ii. it is payable by the buyer. 
2. Where the sales commission is paid by the seller and charged to the buyer by including it in 
the price billed for the goods sold, for the purposes of valuation, no adjustment to the price paid 
or payable shall be made as the commission has already been included therein. 
3. The term "incurred by the buyer" in Article 20.1(a) of these regulations means that the 
buyer has to pay the commission to the intermediary in addition to paying the price of the goods to the seller. In such cases, the amount of the co mmission shall be added to the price actually paid 
or payable for the purposes of valuing the imported goods, irrespective of the fact that the 
payment has been made in the Community Custom s Territory where the goods are imported, even 
in the national currency. 
4. It shall be considered that sales commission is paid, irrespective of the form in which the 
seller, buyer and agent are involved in the transaction, in the following circumstances: 
(a) the buyer imports the goods, the seller invoices the buyer for the goods, including the 
amount of the commission, and the agent re ceives his/her payment from the seller; 
(b) the buyer imports the goods, the seller invoices the buyer for the goods without 
including the amount of the commission, and the agent receives his/her payment from the buyer; 
(c) the seller's agent imports the goods, the seller invoices the agent for the goods, 
including the amount of the commission, the agent in turn re-invoices the goods to the buyer once they have been imported and the agent receives his/her payment from 
the seller; 
(d) the seller's agent imports the goods, the seller invoices the agent for the goods 
without including the amount of the commission, the agent in turn re-invoices the 
goods to the buyer once they have been imported, including his/her commission, 
and the agent receives his/her payment from the buyer. 
In these four cases, the agent acts on behalf of  the seller and the amount of the sales commission 
forms part of the customs value, irrespective of whether it is paid by the seller or buyer of the 
goods. As the sales commission is not included in the price actual paid or payable in cases (b), (c) 
and (d), its amount shall be added in order to calculate the customs value of the goods. 
Whatever action is taken by the sales agent in the cases mentioned above, the commercial invoice 
originally issued by the seller shall be submitted to the customs authority in support of the price 
paid for the sale of the goods, inasmuch as the payment made to the seller is the fundamental basis for the transaction value. 
Article 24: Buying commission 
1. The buying commission is the fee paid by an importer to his/her agent for the service 
of representing him abroad in the purchase of the goods being valued. 
For the purposes of determining the buying commission, the "importer" means the "buyer" 
of the goods. 
2. The buying commission is paid to the buying agent by the buyer for an act which the buyer 
undertakes voluntarily and not because this is a requirement on the part of the seller; accordingly, 
as the agent is acting on behalf of the buyer, the commission shall not be added to the price 
actually paid or payable for the goods imported, as provided in Articles 20.1(a)(i) and 33.2(a) 
of these regulations. G/VAL/N/1/COL/3 
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  3. The importer shall submit to the customs authority the written commission contract and/or 
other supporting documents which clearly show the buying agent's role in facilitating the agreement on the sale. In the absence of such proof or where it is insufficient to substantiate the 
situation, the fee paid shall not be considered a buying commission and shall form part of the 
customs value. 
4. Where the buyer submits to the Customs a commercial invoice issued by the buying agent 
which includes the amount of his/her fee in addi tion to the price of the goods, in order to 
determine the customs value, the customs authorit y shall require, in addition to the documents 
indicated in the preceding paragraph, submission of the invoice originally issued by the seller in support of the price paid for the sale of the goods, inasmuch as the payment made to the seller is the fundamental basis for the transaction value. 
Where the so-called agent has ownership rights over the goods and/or acts on his/her own behalf, 
he may not be considered a buying agent. 
5. When Customs is conducting its controls, special care shall be taken as regards the charges 
made by the buying agent in his/her invoice. If the invoice includes services paid by the agent on 
behalf of the buyer and which form part of the customs value, inter alia,  delivery costs to the place 
of importation indicated in Article 30 of these regulations, in which case, the total amount paid 
may not be considered a buying commission and only the amount corresponding to the 
intermediation service as such may be considered not to form part of the customs value. 
Article 25: Brokers and brokerage 1. A broker is an intermediary in a transaction who is not specifically linked to either the buyer 
or seller and whose essential role is to bring together the parties at a commercial level and to 
facilitate the conclusion of transactions or operations ensuing therefrom. 
2. Brokerage means the fee paid to the broker, wh ich includes the remuneration paid by the 
buyer and/or seller of the goods imported for the services provided. It may be in the form of a 
fixed amount or a percentage of the agreed transaction. 
3. Where the seller pays the brokerage and includes  it in the invoice, there shall not be any 
adjustment to the price actually paid or paya ble. Where the buyer pays the brokerage, and 
provided that the amount is not included in the commercial invoice issued by the seller of the imported goods, it shall be added to the price actually paid or payable for the purposes of determining the customs value. 
Article 26: Containers or packaging 
1. Containers or packaging generally mean the internal receptacles used for unit sale (jars, 
bottles, pots, boxes, inter alia ) and the external elements needed for transport (polystyrene, 
cartons, inter alia ) used to carry and/or protect the goods, together with the necessary means for 
wrapping, folding and fixing them. 
2. In addition to the cost of the containers and packaging, the customs value includes all costs 
incurred in supplying the elements mentioned in pa ragraph 1 above and deemed to be part of the 
imported goods. The costs incurred by placing the goods in boxes, receptacles, etc., and the cost 
of putting the goods in containers or packaging shall also be included. 
3. Where the containers can be used several times fo r imports, the part of the cost of using the 
containers for each import separately shall be added to the value of the goods. 
4. The cost of containers and packaging shall not be  included in the value of the goods if they 
do not form a whole with the goods inasmuch as such containers and packaging are subject to 
separate customs treatment. 
5. The cost incurred for the use of containers, pallets, jerry cans, drums and other items of 
international transport which can be used or reused as a means of transport, constitutes 
a transport cost. Accordingly, it shall not be added as a packaging cost. G/VAL/N/1/COL/3 
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  Article 27: Benefits 
1. According to the definition in Article 2(l) of these regulations, benefits are divided into 
four categories of goods and services listed in Article 20.1(b) of these regulations. 
2. The value of a benefit provided by the buyer may be determined on the basis of: 
(a) the value of the sale or rental paid by the buyer if the benefit is purchased or rented 
from an unrelated person; 
(b) the cost of providing the benefit, if it was provided by the buyer or by a related 
person. 
3. In the cases of the benefits indicated in Articl e 20.1(b)(ii) of these regulations, in order to 
include them in the customs value, adjustments shall be made to take into account their prior use. Likewise, the value of repairs or modifications undertaken after the buyer has purchased or 
provided the benefits shall also be taken into account. 
In such cases, in addition to the transport and related costs for transfer to the country of 
production indicated in the paragraph below, the cost of return to the country of import, where 
applicable, shall also be included. 
4. The cost incurred for transfer to the place wher e the goods are to be produced shall also be 
added to the cost or value of the benefit where it has been paid by the buyer, in accordance with 
the following: 
(a) transport and related costs incurred for supply of the benefit; 
(b) transport insurance paid; 
(c) duties, taxes or levies paid on import into the country where the goods are to be 
produced. 
5. Where necessary, after the value of the benefit has been determined, it shall be apportioned 
among the goods imported as follows, at the request of the importer: 
(a) the value may be apportioned to the first shipment if the importers wishes to pay duty 
on the entire value at one time; 
(b) the importer may request that the value be apportioned over the number of units 
produced up to the time of the first shipment where contracts or firm commitments 
exist for such production; 
(c) the importer may request that the value be apportioned over the entire anticipated 
production where contracts or firm commitments exist for such production; 
(d) the value may be apportioned among the number of years of the benefit or the 
number of units that can be produced. 
Whichever method is followed, the generally accept ed accounting principles indicated in Article 59 
of these regulations shall be taken into account and the information shall be substantiated by 
documentary evidence. 
6. The value of the goods and services indicated in Article 20.1(b)(i), (ii), (iii) and (iv) of these 
regulations shall only be added to price paid or payable if: 
(a) they have been supplied by the buyer for production and sale for export of the 
imported goods free-of-charge or at reduced cost; 
(b) the have been supplied directly or indirectly; 
(c) their value has not been included in the price actually paid or payable. 
7. The benefits indicated in Article 20.1(b)(iv) of these regulations shall not be added to the 
price paid or payable if they have been supplied in Community Customs Territory. G/VAL/N/1/COL/3 
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  Article 28: Royalties and licence fees 
1. "Royalties and licence fees" generally mean payments for the intellectual and/or industrial 
property rights needed to: 
(a) produce or sell a product or good that uses or incorporates patents, trademarks, 
industrial designs, models, technical know-how, manufacturing or manufacturing 
processes or any other industrial property right covered by Decision No. 486 or any decision superseding or amending it. 
(b) use, manufacture or resell a product or good that makes use of copyright or related 
rights covered by Decision No. 351 or any decision superseding or amending it; 
(c) produce or sell a product or good that uses new plant breeders' rights covered by 
Decision No. 345 or any decisions superseding or amending it; 
(d) produce or sell a product or good that uses rights of access to genetic resources 
covered by Decision No. 391 or any decisions superseding or amending it. 
2.  The royalty or licence fee shall only be added to the price actually paid or payable 
if this payment: 
(a) is related to the goods being valued; 
(b) constitutes a condition of sale of those goods; 
(c) is based on objective and quantifiable data; and 
(d) is not included in the price actually paid or payable. 
For the purpose of evaluating subparagraphs (a) and (b) above, the indications given in 
Commentary 25.1 of the Technical Committee on Customs Valuation shall be taken into account. 
For this purpose, it shall be considered that the condition of sale does not necessarily have to be 
specified in the contract but can be demonstrated by means of factual elements relating to the commercial transaction. 
Where the method of calculation of the amount of a royalty or licence fee derives from the price of 
the imported goods, it may be assumed, in the ab sence of evidence to the contrary, that payment 
of that royalty or licence fee is related to the goods being valued. 
3. If royalties or licence fees relate not only to the imported goods but also to other 
components, for example, goods or services incorporated therein before or after importation, this circumstance shall not prevent an adjustment under this concept, provided that it is made on the 
basis of objective and quantifiable data, in accordance with paragraph 3 of the Interpretative Note 
to Article 8 of the WTO Customs Valuation Agreemen t and with the provisions in Article 61 of these 
regulations. 
Consequently, the amount of the royalty shall be divided between the imported goods and the 
other components included in the final good, on the basis of supporting documents or other 
substantiating information that can be verified. If it is not possible to make such a division because of lack of information or because the imported goods cannot be identified separately by any 
means, no adjustment can be made under this concept because there are no objective and 
quantifiable data. In such cases, the transaction value method shall be set aside and the secondary methods shall be followed in sequence. 
4. Adjustments for royalties and licence fees shall apply regardless of the country of residence 
of the beneficiary of the payment, whether within or outside Community Customs Territory. 
5. If the exact amount of the royalties or licence fees is not known at the time of importation 
because it is determined as a percentage of the resale price of the imported goods, the adjustment 
may be made by indicating it in the Andean Customs Value Declaration, estimating a provisional 
amount therein but notifying that this is the case . The procedure set out in Articles 34 and 35 of 
these regulations shall then be followed. 
6. Payments made by the buyer for the right to di stribute or resell the imported goods shall not 
be added to the price actually paid or payable if such payments are not a condition of the sale for G/VAL/N/1/COL/3 
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  export to the Community Customs Territory where they are to be imported. Charges for the right 
to reproduce the imported goods in the country of importation shall not under any circumstances be added. 
Article 29: Proceeds of the resale, assignment or use of the goods 
If the exact amount of the proceeds is not known at the time of importation because it is 
determined as a percentage of the resale price of the imported goods, the adjustment may be 
made by indicating it in the Andean Customs Value Declaration, estimating a provisional amount 
therein but notifying that this is the case. The procedure set out in Articles 34 and 35 of these 
regulations shall then be followed. 
Article 30: Cost of delivery to the place of importation 
1. Pursuant to the provisions in Article 6 of De cision No. 571, delivery costs are those indicated 
in Article 20.1(e), (f) and (g) of these regulations. 
2. The procedure for adjusting for such costs shall depend on the terms for delivery of the 
goods agreed between the seller and the buyer. The costs may or may not be included in the price 
invoiced by the seller, even if the goods are subsequently delivered to a place other than the place 
of importation identified. 
3. For the purposes of the last paragraph of Article 6 of Decision No. 571, the rates or 
premiums usually applicable may be obtained from information contained in records concerning 
other imports with due justification, from tables drawn up by Customs Administrations showing data or rates that are regularly updated, or from  information provided by companies that provide 
such services. 
In order to determine the customs value of vehi cles entering the country by their own means 
where it is not possible to obtain data on the freight charges usually applicable, the transport costs may be calculated according to the cost of the fuel consumed and the cost of other operations over 
the route taken from the place of delivery abroad  up to the place of importation into Community 
Customs Territory. 
4.  If the payment cannot be substantiated by ob jective and quantifiable data and it is not 
possible to apply the provisions in the preced ing paragraph, the transaction value shall be 
dismissed and the goods shall be valued using the secondary methods, taking into account the provisions in Articles 3 and 4 of Decision No. 571 and those in Chapter II of this Title. 
Article 31: Transport costs 
1. Transport costs and transport-related costs from  the place of delivery of the goods abroad 
up to the place of importation into Community Customs Territory include the following: 
(a) adaptation for export; 
(b) carriage and handling abroad; 
(c) handling and delivery of the goods to the port or place of shipment; 
(d) freight costs from the first place of shipment to the place of importation into 
Community Customs Territory; 
(e) loading, unloading and handling in foreign ports; 
(f) cost of dispatching transport documents; 
(g) freight costs at destination; 
(h) fuel consumption; 
(i) cost of consolidating and splitting cargo and stevedoring services in the foreign port; 
(j) endorsement and communications costs; 
(k) penalties for delays in the foreign port. 
These costs form part of the customs value and shall be adjusted in order to determine the 
transaction value, without prejudice to the person paying them on behalf of the buyer, the method 
of payment, or whether such payments are made within or outside Community Customs Territory 
and before or after importation. G/VAL/N/1/COL/3 
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  2. If the transport costs are included in the commercial invoice and the amount agreed 
between the seller and buyer is not the same as that  actually paid by the seller to a third party, 
the costs actually paid definitively for transport and related costs to the place of importation in accordance with the transport document shall be taken into account. 
If the commercial invoice shows transport costs higher than those appearing in the transport 
document, the difference shall form part of the tr ansport cost for the purpose of calculating the 
customs value of the goods, unless the importer sh ows that the difference was repaid or will not 
be paid. 
3. If the goods have taken severa l routes before arriving in Community Customs Territory, 
when determining the adjustment all such costs for all the journeys shall be taken into account. 
4. The cost or rental of containers, cylinders, tanks or similar items to be used for the transport 
of the goods are also transport costs that fo rm part of the customs value and the proper 
apportionment shall be made, where applicable, and shall be substantiated by objective and 
quantifiable data. 
5. Likewise, the cost of temporary storage of the goods in the port of export and of 
international transit during their transport are costs incurred for transport of the goods and shall therefore be adjusted in conformity with the prov isions in Article 20.1(e) of these Regulations. 
Article 32: Cost of insurance 
1. The cost of insurance includes the cost required  to cover the risk of damage or loss of the 
goods during transport, loading, unloading or handling from the place of delivery abroad to the place of importation. 
2. The amount to be taken into account for insurance is that of the insurance premium actually 
paid. Any statement of theoretical or estimated amounts or not substantiated by documents shall under no circumstances be accepted. 
3. The document proving the cost of insurance is  the policy issued by the insurance company 
or the individual insurance certificate. 
4. If the insurance costs are included in the commercial invoice and the amount agreed 
between the seller and buyer is not the same as that  actually paid by the seller to a third party, 
the actual costs paid definitively for insurance up to the place of importation in accordance with the policy issued by the insurance company or th e certificate showing a separate policy shall be 
taken into account. 
If the commercial invoice shows insurance costs higher than those appearing in the insurance 
policy, the difference shall form part of the cost of insurance for the purpose of calculating the customs value of the goods, unless the importer sh ows that the difference was repaid or will not 
be paid. 
5. If there are trade negotiations in which the seller has insured the goods at origin and, in 
addition, the importer has taken other insurance or has a standing policy covering international 
transport of the same goods, with the same or  different cover, the insurance agreed in the 
negotiations and the insurance taken out by the importer shall be declared. 
Article 33: Elements to be deducted or which may not be added to the price paid 
or payable 
1. The following elements may be deducted from th e price paid or payable by the buyer to the 
seller provided that they are included therein an d are distinguished, in other words, have been 
invoiced by the seller and are specified separately in the commercial documents: 
(a) construction, erection, installation, assembly, maintenance or technical assistance 
undertaken after importation of goods such as industrial plant, machinery or equipment; G/VAL/N/1/COL/3 
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  (b) import duties and taxes or other charges payable in Community Customs Territory for 
import or sale of the goods in question; 
(c) transport, carriage and insurance costs afte r the goods have arrived at the place of 
importation into Community Customs Territory, as well as the cost of temporary 
storage of the goods for reasons of carriage after arrival at the place of importation; 
(d) unloading and handling charges at the place of importation into Community Customs 
Territory, and the charges paid for ships' berthing in ports in the Territory; 
(e) charges for interest included in the commercial invoice, paid under a financing 
arrangement entered into by the buyer and relating to the purchase of the imported 
goods, providing that the circumstances indicated in Decision No. 3.1 of the WTO Committee on Customs Valuation apply. If any of these circumstances does not 
apply, it shall be considered that the amount attributed to interest forms part of the 
transaction value. 
2. The customs value shall not include the followi ng elements either and they shall not be 
added to the price actually paid or payable for the imported goods: 
(a) buying commission; 
(b) the right to reproduce the imported good in Community Customs Territory; 
(c) payments by the buyer for the right to distri bute or resell the imported goods if such 
payments do not constitute a condition of sale of the goods for their export to Community Customs Territory; 
(d) activities by the buyer in Community Customs Territory in order to market the 
imported goods, advertising, guarantees, attendance at fairs, etc. even if they may be 
deemed to benefit the seller; 
(e) payment of dividends to the seller as a shareholder or other payments unrelated to 
the imported goods; 
(f) domestic taxes payable on the goods in question in the country of origin or export, 
provided that it can be demonstrated to the satisfaction of the customs authorities 
that the said goods have been or will be ex empt from such taxes to the benefit of the 
buyer; 
(g) in general, the cost of any activities undertaken by the buyer on his/her own behalf 
and in respect of which no adjustment has to be made in accordance with the 
provision in Article 18 of these regulations and provided that this can be demonstrated 
to the satisfaction of the Customs Authorities. 
Section III 
Declaration of provisional value 
Article 34: Procedure for determining the pr ovisional customs value of imported goods 
If an importer declares a provisional value, he may withdraw the goods provided that: 
1. The written contracts showing and proving the situation preventing the final determination 
of the value are forwarded. 
2. The reason for the provisional nature of the customs value declared is recorded in the 
Andean Customs Value Declaration (DAV). 
3. The import duties and taxes corresponding to the provisional customs value declared are 
paid or are guaranteed in the case of special regimes. 
4. Surety is provided, if so prescribed in member countries' domestic legislation. This 
legislation shall determine the terms under which the aforesaid surety shall be provided. 
5. The time deemed necessary for determining the final customs value is indicated, but it may 
not exceed twelve (12) months as of the date of acceptance of the customs declaration for the 
imported goods. G/VAL/N/1/COL/3 
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  This period may only be renewed for a furt her maximum period of six (6) months or, 
exceptionally, for a longer period if the terms of the contract so warrant, subject to evaluation and acceptance by the Customs Administration. 
6. If the importer is aware of the final value, he shall inform the Customs Authority within the 
time-limit estimated for this purpose. The period of  validity of the surety, if required by domestic 
legislation, shall be subject to the provisions in the legislation. 
Article 35: Action by the Customs Admi nistration for the determination of 
provisional values 
1. If the importer declares the final value with in the time-limits specified in the preceding 
Article, the Customs Administration shall return any surety that has been required in accordance with domestic legislation and no penalty shall be applied if the value: 
(a) is the same as the provisional value; 
(b) is more than the provisional value and the importer has paid the taxes due; or 
(c) is less than the provisional value, in which case the importer may request refund of 
the excess payments made. 
2. If the final value is not declared within the time-limit specified, the Customs Administration 
shall enforce any surety that has been required pursuant to member countries' domestic 
legislation, which shall define the form and arrangements for its application and whether 
non-compliance constitutes a punishable offence. 
3. The declaration of final value neither prev ents nor limits the power of the Customs 
Administration to exercise its controls. 
4. In their domestic legislation, member countries may regulate the other aspects required for 
the efficient processing of provisional declarations of value. 
Chapter II 
Secondary methods 
Article 36: Application of secondary methods 1. If the requirements specified in Article 5 of these regulations for application of the 
transaction value method for imported goods are not met, the secondary valuation methods set 
out in paragraphs 2 to 6 of Article 3 of Decisi on No. 571 shall be used in the sequential order 
indicated in Article 4 thereof. 
2. In determining the customs value using the secondary methods, in addition to the 
corresponding supporting documents, any other information that may be provided by the importer 
or obtained from other sources shall be taken in to account in the form and under the conditions 
laid down in domestic legislation. 
Section I 
Second method: transaction value of identical goods 
Article 37: General aspects of application 
1. If the transaction value method indicated in  Chapter I of these regulations cannot be 
applied, the customs value shall be determined using the transaction value of identical goods method, taking into account the provisions of Ar ticle 2 of the WTO Customs Valuation Agreement, 
the Interpretative Note thereto, and the definiti ons and requirements in Article 15 of the said 
Agreement. G/VAL/N/1/COL/3 
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  2. The Customs Administration shall first identify which other imported goods may be deemed 
identical and, subsequently, ascertain that they correspond to customs values determined using the transaction value method, as provided in Chapter I above. These values shall have been previously accepted by the Customs, in accordance  with paragraph 4 of the Interpretative Note to 
Article 2 of the aforementioned Agreement and pursuant to the pr ovisions in Article 60 of these 
regulations. 
3. In applying this method, the customs value shall be determined using the transaction value 
of identical goods in a sale at the same commercial level and in substantially the same quantities 
as the goods being valued. If differences in commercial level or quantity influencing the price or value are found, the necessary adjustments shall be made pursuant to Commentary 10.1 of the Technical Committee on Customs Valuation.  
If the differences do not influence the price, no adjustments need to be made and the transaction 
value of identical goods shall be used as background information.  
Article 38: Adjustments 
1. If no transaction values are available for identical goods in a sale at the same commercial 
level and in substantially the same quantity as the goods being valued, the necessary adjustments shall be made to take account of differences in commercial level and/or quantity between the 
imported goods and the identical goods in question , except as otherwise provided in paragraph 3 
of the preceding Article. 
Likewise, adjustments shall be made to take account of any differences in costs and charges for 
transport and insurance arising from differences in modes of transport and distance if the identical 
goods have been exported from a country other than the country of export of the goods being 
valued. 
2. A condition for adjustment because of different commercial levels or different quantities 
shall be that such adjustment, whether it leads to an increase or decrease in the value, be made 
on the basis of objective and quantifiable data that clearly establish the reasonableness and accuracy of the adjustment. 
3. The data contained in current and reliable price lists showing the prices corresponding to 
different commercial levels and quantities, inter alia,  shall be considered objective and quantifiable 
data. Such lists shall be confirmed by other imports made at the same prices. 
Article 39: Time element 
In determining the customs value applying the transaction value for identical goods method, the 
date to be taken into account is that of export to Community Customs Territory. Accordingly, only goods that have been exported at the same time or at about the same time as the goods being 
valued shall be taken into account, having regard to the definition of "about the same time" 
in Article 2(e) of these regulations. 
The maximum period indicated as about the same time shall be three hundred and sixty five (365) 
calendar days; member countries may, however, prescribe a shorter period. 
If the importer considers that the value determin ed by the Customs Administration when applying 
this method does not meet the definition of about the same time, it shall substantiate this with supporting documents, for which the differences in commercial practices and market conditions 
affecting the price of the goods being valued shall be taken into account. 
Article 40: Absence of prior transaction values for identical goods If no previously accepted transaction value for identical goods is available or the requirements for 
its application are not met, the transaction value of similar goods method shall be used. G/VAL/N/1/COL/3 
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  Section II 
Third method: transaction value of similar goods 
Article 41: General aspects of application 1. If the transaction value of identical goods method cannot be applied, the customs value shall 
be determined using the transaction value of similar goods method, taking into account the 
provisions of Article 3 of the WTO Customs Valuat ion Agreement, the Interpretative Note thereto, 
and the definitions and requirements in  Article 15 of the said Agreement. 
2. The Customs Administration shall first identify which other imported goods may be deemed 
similar and, subsequently, ascertain that they co rrespond to customs values determined using the 
transaction value method, as provided in Chapter I above. These values shall have been previously 
accepted by the Customs, in accordance with paragr aph 4 of the Interpretative Note to Article 3 of 
the aforementioned Agreement and pursuant to the provisions in Article 60 of these regulations. 
3. In applying this method, the customs value shall be determined using the transaction value 
of similar goods in a sale at the same commercial level and in substantially the same quantities as 
the goods being valued. If differences in commercial level and/or quantity influencing the price or 
value are found, the necessary adjustments shall be made pursuant to Commentary 10.1 of the Technical Committee on Customs Valuation. 
If, on the other hand, the differences attributable to the commercial level and/or quantity do not 
influence the price, the transaction value previously  identified for the same of similar goods shall 
be used, without making any adjustment for these concepts. 
Article 42: Adjustments 
1. If no transaction values are available for similar goods in a sale at the same commercial 
level and in substantially the same quantities as the goods being valued, the necessary adjustments shall be made to take account of differences in commercial level and/or quantity 
between the imported goods and the similar goods in question. Likewise, adjustments shall be 
made to take account of any differences in costs and charges for transport and insurance arising from differences in modes of transport and distance  if the similar goods have been exported from 
a country other than the country of export of  the goods being valued, except as otherwise 
provided in paragraph 3 of the preceding Article. 
2. Any adjustment arising from differences in commercial level or quantity, whether resulting in 
an increase or reduction in value, shall comply with the condition that it be made on the basis of 
objective and quantifiable data which clearly establish the reasonableness and accuracy of the 
adjustment. 
3. The data contained in current and reliable price lists showing the prices corresponding to 
different commercial levels and quantities, inter alia,  shall be considered objective and quantifiable 
data. Such lists shall be confirmed by other imports made at the same prices. 
Article 43: Time element 
In determining the customs value applying the transaction value for similar goods method, the 
date to be taken into account is that of export to Community Customs Territory. Accordingly, only goods that have been exported at the same time or at about the same time as the goods being valued shall be taken into account, having regard to the definition of "about the same time" in 
Article 2(e) of these regulations. 
The maximum period indicated as about the same time shall be three hundred and sixty five (365) 
calendar days; member countries may, however, prescribe a shorter period. 
If the importer considers that the value determin ed by the Customs Administration when applying 
this method does not meet the definition of about the same time, it shall substantiate this with G/VAL/N/1/COL/3 
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  supporting documents, for which the differences in commercial practices and market conditions 
affecting the price of the goods being valued shall be taken into account. 
Article 44: Absence of prior tran saction values for similar goods 
If no previously accepted transaction value for similar goods is available or all the requirements for 
its application are not met, the deductive method shall be used, except for the possibility of 
reversing the order of application of the methods in dicated in Articles 5 and 6 of the Agreement, in 
accordance with the provisions of Article 4 of Decision No. 571. 
Section III 
Fourth method: deductive value 
Article 45: General aspects of application 1. In valuing goods using this method, the basis shall be the selling price of the imported 
goods in Community Customs Territory, or of identical or similar goods, with the deductions 
indicated in Article 5.1(a) of the WTO Customs Valuation Agreement, taking into account the other provisions in the aforesaid Article and the Interpretative Note thereto. 
2. Two situations shall be distinguished when applying the deductive method: 
(a) The goods are sold in the condition as imported. 
The customs value shall be based on the unit price corresponding to the greatest volume of sales 
of the imported goods or, if they are not imported for sale or at the time of valuation have not 
been sold, it shall be the unit price for the sale of other imported goods that are identical or similar to the goods being valued to buyers in Community Customs Territory who are not related to the importer, at the first commercial level at which such sales are made after importation. For this 
purpose, the first sale of the goods after import ation in sufficient quantity to determine the 
corresponding unit price shall be taken into account. 
(b) In any event, the first sale of the imported goods in sufficient quantity after working 
or processing enabling the corresponding unit price to be determined shall be taken 
into account. 
Pursuant to Article 5 of Decision No. 571, if th e imported goods or other identical or similar 
imported goods are not sold in Community Customs Territory in the condition as imported, 
whether or not requested by the importer, the customs value shall be based on the unit price 
corresponding to the greatest aggregate quan tity of the imported goods sold at the 
first commercial level after importation at which such sales are made, after having undergone 
subsequent additional working or processing, to buyers in Community Customs Territory who are 
not related to the importer. In any event, the first sale of a sufficient quantity of the goods after 
importation that enables the corresponding unit price to be determined shall be taken 
into account. 
For this purpose, the value added by processing shall be taken into account, together with the 
deductions mentioned in Article 5.1(a) of the WTO Customs Valuation Agreement. 
In deducting value added for processing, the cost of the work or operations needed to undertake 
such processing shall be taken into account, havi ng regard to the relevant supporting documents. 
3. The data to be used to apply this method sh all be determined on the basis of information 
supplied by the importer, provided that the accounting information has been prepared in 
accordance with generally accepted accounting principles. 
If the importer is unable to substantiate the information provided, the data to be applied may be 
based on relevant information other than that supplied by the importer. G/VAL/N/1/COL/3 
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  The selling price communicated by the importer shall be substantiated by the respective invoices 
for domestic sale, as provided in domestic legislation. The deductions made shall be based on objective and quantifiable data duly supported by documents. 
When using this method, values that are arbitrary or fictitious may under no circumstances 
be used. 
Article 46: Time element 1. In determining the customs value applying the deductive method, the date to be taken into 
a c c o u n t  i s  t h a t  o f  i m p o r t  o f  t h e  g o o d s  b e i n g  v a l u e d  a t  o r  a b o u t  t h e  s a m e  t i m e ,  a s  d e f i n e d  i n  
Article 2(e) of these regulations. 
2. Only the selling price of goods that have been  sold in Community Customs Territory at the 
time they are imported or on the closest date after their importation, but not exceeding 90 days, 
shall be taken into account, as provided in Article 5.1(b) of the Agreement. 
Section IV 
Fifth method: computed value 
Article 47: General aspects of application 
1. In valuing goods using this method, the provisions of Article 6 of the WTO Customs 
Valuation Agreement and the Interpretative Note thereto shall be taken into account. 
2. This method is based on the cost of producing the imported goods. It consists of 
determining the customs value on the basis of the constituent elements of the price, taking into 
account the data available in Community Customs Territory, supplied by the producer of the good 
in question, without prejudice to examination of the cost of producing the goods being valued and 
other information that may be obtained from outside the country of importation, with the consent 
of the producer and applying the due proced ure provided in the WTO Customs Valuation 
Agreement. 
The cost or value of the goods shall include the co st of the elements specified in Article 20.1(ii) 
and (iii) of these regulations, as well as the value of any element specified in paragraph 1(b) of the Article, apportioned as appropriate under the provisions of the relevant note to Article 8 of the 
WTO Customs Agreement, which has been supplied directly or indirectly by the buyer for use in 
connection with the production of the imported go ods. The value of the elements specified in the 
aforementioned paragraph 1(b)(iv) which have been undertaken in the country of importation shall be included only to the extent that such elements are charged to the producer. 
3. The total amount of the elements used to calculate the computed value shall take into 
account the cost or value of all the delivery costs mentioned in Article 20(e), (f) and (g) of these regulations, pursuant to the relevant provision in Article 6 of Decision No. 571. 
4. The accounting information required shall be in accordance with generally accepted 
accounting principles. 
5. The use of this method shall generally be limited to those cases where the buyer and seller 
are related and the producer is prepared to su pply to the Customs Administration the necessary 
costings and to provide facilities for any subsequent verification that may be necessary. G/VAL/N/1/COL/3 
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  Section V 
Sixth method: "Fall-back" 
Article 48: Procedure 1. In valuing goods using this method, the pr ovisions of Article 7 of the WTO Customs 
Valuation Agreement and the Interpretative Note thereto shall be taken into account. 
2. The customs value determined in accordance with Article 7 of the WTO Customs Valuation 
Agreement shall, to the greatest extent possib le, be based on the customs valuation methods 
determined by applying the previous methods. 
3. If the customs value of the imported goods ca nnot be determined by using the methods set 
out in Article 3.1 to 3.5 of Decision No. 571, as indicated in Chapters I and II of this Title, the "fall-back" method shall be applied, in accordance with the provisions in Article 7 of the 
WTO Customs Valuation Agreement and the Interpretative Note thereto, together with Advisory 
Opinion 12.1, as follows: 
(a) Reasonable flexibility 
When it is not possible to use the principal transaction value method or the secondary methods 
indicated in Chapters I and II of this Title, the first five methods in the WTO Customs Valuation Agreement shall be applied, taking into account the indications in Advisory Opinion 12.2 of the 
Technical Committee on Customs Valuation as regards the order of priority. 
In order to determine at about the same time, the reasonable flexibility shall be governed 
by member countries' do mestic legislation. 
Elements which constitute a basis for using the transaction value method and non-compliance with 
which led to its rejection at the time, for example, the relationship had no influence on the price 
agreed, the existence of a sale such as that defined in Article 2(p) of these regulations, the existence of an actual price tied to such a sale and use of information or data with 
documentary support, inter alia , may not be considered flexibly. 
Taking into account goods that were not identical or similar to those imported and which, at that 
time, prevented application of the second or third methods of valuation may not be interpreted 
flexibly either. 
In applying the deductive method, sales between related parties may not be taken into account 
flexibly. 
In general, with a view to flexibility, none of the prohibitions determined in Article 49 of these 
regulations may be utilized or the basic principl es of the WTO Customs Valuation Agreement and 
Article VII of the GATT be disregarded, and estima ted or theoretical values may not be taken into 
account. 
(b) Reasonable criteria 
(i) When it is not possible to use the principal transaction value method or the secondary 
methods indicated in Chapters I and II of th is Title, and the flexibility indicated in 
subparagraph (a) of this Article cannot be taken into account, the use of reasonable 
criteria and procedures consistent with the principles and provisions of the aforementioned Agreement and with Article VII of the GATT 1994 may be used on the basis of the data available in Community Customs Territory, without prejudice to use 
of the reference prices as determined in Article 55.5 of these regulations. 
 G/VAL/N/1/COL/3 
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  (ii) The reasonable criteria and procedures applicable to special cases of valuation shall be 
established by means of a resolution of the General Secretariat and additionally by the 
domestic legislation of each member country. Special cases of valuation shall be determined by the particular nature of the goods to be valued or by the circumstances 
of the transactions comprising the importation, or because there has been a change in 
customs regime or destination. 
 
Article 49: Prohibitions 
1. The flexibility allowed or the possibility of utilizing reasonable criteria in the "fall-back" 
method may not be interpreted as meaning that arbitrary procedures contrary to the principles and provisions of the WTO Customs Valuation Agreement and Article VII of the GATT may be 
followed; accordingly the customs value determined using the "fall-back" method shall not be 
based on: 
(a) the selling price in Community Customs Territory of goods produced therein; 
(b) a system which provides for the acceptance for customs valuation purposes of the 
higher of two alternative values; 
(c) the price of goods on the domestic market in the country of exportation; 
(d) a cost of production other than the co mputed value which has been determined 
for identical or similar goods in accordance with the provisions of Article 6 of the WTO Customs Valuation Agreement; 
(e) the price of goods sold for export to a country outside Community Customs Territory; 
(f) minimum customs values; 
(g) arbitrary or fictitious values. 
Title III 
Customs valuation controls 
Article 50: General Further to the provisions in Chapter V of Decision No. 571 on the various stages of customs 
valuation controls, Customs Administrations shall apply the harmonized control systems provided 
for Community Customs Territory. Controls shall be selective according to risk factors and programmes previous established by Customs Administrations. 
Article 51: Risk factors 
Controls and checks by the Customs Administration may bring to light discrepancies with regard to 
the following aspects, inter alia : 
(a) ostensibly low prices; 
(b) indirect payments; 
(c) relationship between the buyer and seller; 
(d) advantages, notably those concerning intangible goods or services; 
(e) payment of royalties for the use of the intellectual property rights specified 
in Article 28 of these regulations; 
(f) inaccurate declaration of costs incurred by the sale and delivery of the goods; 
(g) invoices that are likely to be false or inaccurate; 
(h) double invoicing; 
(i) the customs declaration and the value are inconsistent and do not correspond to the 
relevant supporting documents; 
(j) inaccurate completion of the Andean Customs Value Declaration; 
(k) incomplete or imprecise description of the goods; 
(l) values declared for goods imported into Community Customs Territory that are 
markedly lower than those for other identical or similar goods imported from the same 
country of origin; 
(m) goods from a free zone or special customs zone, particularly if the values declared are 
identical to or less than the value when the same or identical or similar goods from 
the same country of origin entered the said zones; G/VAL/N/1/COL/3 
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  (n) values declared for goods imported into Community Customs Territory that are 
markedly lower than those for other identical or similar goods imported into another country from the same country of origin; 
(o) inhabitual levels of discounts; 
(p) type of goods; 
(q) country of origin or source. 
If there is reasonable doubt based on the aforementioned risk factors or any other factors that 
may arise, the Customs Administration shall notify this in writing, indicating the corresponding 
evidence. If there are grounds for such doubts, an investigation into the value shall be initiated, giving the importer an opportunity to provide the evidence required, taking into account the 
provisions in Articles 16, 17 and 18 of Decision No. 571. 
Article 52: Additional verifications and controls 
1. If necessary, the Customs Administration shall undertake additional verification and controls 
in the offices, facilities or plants of the importers or any person directly or indirectly concerned by 
the import transactions for the goods in question or by subsequent transactions involving the same 
goods, or of any other person in possession of documents or data relating to the customs declaration for the imported goods and the Andean Customs Value Declaration, in order to ensure 
application of the measures to guarantee determination of the relevant customs value. 
Such controls may also include physical inspection of the goods. 2. The parties concerned shall cooperate fully with the Customs Administrations in their 
investigations and shall accordingly facilitate their conduct and shall also appear in person when so 
requested. 
Article 53: Doubts concerning the truth or  accuracy of the value declared and the 
supporting documents 
Pursuant to Article 13 and Chapter V of Decision No. 571, the Customs Administrations of Andean 
Community member countries shall follow the procedure set forth below for verifying and checking the declared value: 
1. For the purposes of the provision in Article 17 of Decision No. 571, the following shall be 
taken in account: 
(a) If the Customs Administration has reason to doubt the Andean Customs Value 
Declaration submitted with regard to the truth, accuracy or completeness of the 
elements appearing therein or in relation to the documents produced in support of this 
declaration, it shall request the importer, using hard copy, electronic or digital media, to provide further explanations, including documents or other evidence, in order 
to carry out the necessary checks and determine the customs value applicable. 
(b) If, after receiving further information or in the absence of a response, the Customs 
Administration still has reasonable doubts about the truth, accuracy or completeness 
of the declared value, it may, bearing in mind the provisions of Article 11 of the WTO 
Customs Valuation Agreement, decide that the customs value of the imported goods cannot be determined by applying the tran saction value method and the goods shall 
be valued in accordance with the secondary methods, as indicated in Article 3.2 to 3.6 
of Decision No. 571. 
(c) Before taking a final decision, the Customs Administration shall inform the importer, 
using hard copy, electronic or digital media, of its reasons for doubting the truth or 
accuracy of the information and document s submitted and shall give the importer 
a reasonable time to respond. When a final decision has been taken, the Customs Administration shall notify it to the importer, using hard copy, electronic or digital 
media, giving the grounds for the decision. G/VAL/N/1/COL/3 
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  Where such control is conducted during clearance, the importer may withdraw the goods if he 
provides an adequate guarantee in the form of a bond, a deposit or some other appropriate instrument to cover payment of the import duties, taxes and charges to which the goods might finally be subject. 
2. If the supporting documents provided for the purpose of applying any of the secondary 
methods do not meet the requirements of the Customs Administration or are not furnished, 
the following methods may be applied, utilizing the elements available. 
3. If the prescribed requirements or conditions for applying the first valuation method as 
determined in the WTO Customs Valuation Agreement, the decisions of the Valuation Committee, the instruments of the Technical Committee on Cu stoms Valuation, Decision No. 571 and Article 5 
of these regulations are not met, the secondary methods shall be applied. 
Article 54: Supporting documents 
1. In addition to the commercial invoice, the tr ansport document and the insurance document 
showing the amount for which the goods have been insured, the importer shall also submit other 
documents required in support of the customs valu e declared or the value to be determined. The 
Customs shall examine these documents in order to verify the elements of fact and the commercial circumstances of the transaction, and compliance with the provisions of the WTO Customs 
Valuation Agreement, Decision No. 571 and these regulations. 
These documents may be submitted in hard copy , or using electronic or digital media. The 
requirements and time-limit for their submission shall be determined in domestic legislation, taking into account the provisions in paragraph 1(c) of the preceding Article. 
2. The type of documents that may be required in  order to verify or check the value declared 
depends on the stage of the controls being conducted by the Customs Administration and the valuation method utilized. 
These documents concern, inter alia : 
(a) documents in support of any other transport cost; 
(b) documents in support of any other insurance cost paid to cover transport risks; 
(c) proof that the goods have been paid; 
(d) bank communications concerning payment, for example, fax, telex, email, etc.; 
(e) credit cards; 
(f) documents submitted in order to obtain loans; 
(g) price lists, catalogues; 
(h) contracts; 
(i) licensing agreements setting out the terms for using copyright, industrial property 
rights or any other intellectual property right; 
(j) agreements or letters appointing agents or agencies and relating to payment of 
commission; 
(k) proof of the acquisition of benefits; 
(l) correspondence and other commercial information; 
(m) accounts documents; 
(n) domestic invoices showing the resale price in Community Customs Territory; 
(o) documents in support of costs related to such resale; and 
(p) in general, any document proving the conditions that permit use of one of the 
valuation methods, in sequential order. 
Other documents which may be considered documents in support of the facts or circumstances 
relating to the commercial transaction or the customs value to be determined are the corresponding records drawn up by the customs authority concerning oral statements by the 
importer or his/her legal representative or an au thorized person, duly endorsed by the latter and 
the customs officer. 
Submission of the aforementioned documents alon e does not imply acceptance of the declared 
value by the customs authority, which sh all depend on the checks undertaken. G/VAL/N/1/COL/3 
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  3. The type of document or evidence, and the procedures, conditions and requirements for 
requests to be made outside the customs territory of Andean Community member countries for the purpose of customs valuation shall be subject to th e provisions in Andean and domestic legislation, 
taking into account the provisions in Article 16 of Decision No. 571 and Article 63 of these 
regulations. 
The provisions in Decision No. 728 on Mutual  Assistance and Cooperation among Customs 
Administrations or the regulations amending or superseding it shall apply to obtaining evidence. 
Article 55: Use of reference prices 
1. In implementation of the definition in Article 2( j) of these regulations, reference prices shall 
correspond to information on the international market over a specified period in order to ensure their validity and effectiveness. 
2. Reference prices shall not be contrary to the provisions in Article 7 of the WTO Customs 
Valuation Agreement and, in particular, to the provisions in Article 49 of these regulations 
concerning the prohibitions on applying the "fall-back" method. 
3. Reference prices shall be taken as indicative for controlling the declared value of the 
imported goods. Accordingly, they may be used to substantiate doubts arising between the Customs Administration authority and the declarant regarding the declared value, in accordance 
with the provisions in Article 53 of these regulations. 
4. In view of the provision in the preceding para graph, the same reference price used for the 
purposes of comparison may be used for payment of  the amount of the surety to be provided in 
order to obtain release of the goods, in accordance with the provisions in Article 62 of these 
regulations. 
5. Reference prices may also be used as a basis for valuation, but only when the methods 
indicated in Article 3.1 to 3.5 of Decision No. 571 have been exhausted in sequence and use of a 
reasonable criterion for application of the "fall-back" method is required. 
For this purpose, identical or similar goods from the same country of origin shall be taken into 
account or, if not available, from different countries but as far as possible taking due precautions 
concerning the country's level of development and its production costs, which affect the price level 
of the goods considered. 
6. The reference prices shall be in effect at the same time or at about the same time as the 
date of the commercial invoice or the sales contract. If no reference prices in effect at the time of 
the transaction are available, prices correspondi ng to the closest possible economic period, the 
periods indicated above, may be used, updating them as appropriate. 
7. The Customs Administrations of member countries, in accordance with the provisions in 
Article 25 of Decision No. 571, shall regularly update the reference prices, where necessary using 
the price or inflation indexes for the country of export or origin and continuously enter them in the data bases set up for this purpose. 
Article 56: Fraudulent documents 
1. The Customs Administrations of Andean Community member countries shall not accept 
documents submitted for the purpose of determining the customs value if they are in possession of reasonable indications that the documents are counterfeit or false or have final proof of this. 
In such cases, member countries may apply the relevant domestic legislation. 
The Customs Administration may require the deposi t of surety before allowing the goods to be 
released. The amount of the surety shall be fixed in accordance with domestic legislation or, in its 
absence, on the basis of a reference price. G/VAL/N/1/COL/3 
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  2. If the prices declared are ostensibly low an d may involve a case of fraud, the Customs 
Administration may require the deposit of surety in  the form of a bond, bank deposit in cash or 
any other appropriate means, as indicated in Article 62 of these regulations, before allowing the goods to be released. 
For payment of the surety, the reference prices referred to in the preceding Article may be taken 
into account. If there are none, the surety shall be sufficient to cover the amount of the corresponding import duties and taxes, as provided in domestic legislation. 
If the indications of fraud prove true, the provisions in domestic legislation shall apply. 
3. Taking into account the provisions in Articles 26 and 27 of Decision No. 571, the Customs 
Administrations of Andean Community member countr ies shall be kept informed of the findings of 
any investigation into fraud in respect of valuation so that they may apply the necessary 
preventive and dissuasive measures against the person who has committed the fraud and the 
procedure followed. 
Likewise, the Andean Committee on Mutual Assi stance, created by Decision No. 728 of the 
Commission of the Andean Community, shall be ke pt informed through the General Secretariat. 
Article 57: Mutual assistance and cooperation with third countries 
If the Customs Administrations of Andean Communi ty member countries have reason to doubt the 
price declared for goods imported into Community Customs Territory or any of the other elements 
comprising the customs value of the goods, they may seek assistance from the Customs Administration of the exporting country, particularly  with regard to the price declared upon export. 
For this purpose, the agreements or decisions on cooperation and mutual assistance adopted 
within the World Trade Organization (WTO), the World Customs Organization (WCO), the 
Community regulations and bilateral or multilateral agreements or conventions mutually concluded with third countries shall be taken into account. 
Title IV 
Final provisions 
Article 58: Permanent adjustments of value 
1. If the additions referred to in Article 20 of thes e regulations have to be made repeatedly for 
each importation, under identical circumstances and by the same importer, the Customs A d m i n i s t r a t i o n  m a y ,  e i t h e r  e x  o f f i c i o  o r  a t  t h e  r e q u e s t  o f  a  p a r t y ,  d e c i d e  o n  p e r m a n e n t  adjustments of value, which shall be notified to the importer, who shall reflect them in the Andean 
Customs Value Declaration. 
Such adjustments shall be in the form of a percenta ge to be applied to the price actually paid or 
payable for the goods imported, without prejudic e to any customs control of the value of the 
invoice in accordance with Title III of these regulations. 
2. Such adjustments may be revised inasmuch as their amount is determined by the factual 
elements, circumstances and objective and quantifiable data known to the Customs Administration 
at the time and they remain valid until the Customs Administration issues another decision. 
 Any change that occurs in the aforementioned factual elements, circumstances or data 
which gave rise to the adjustment shall immediat ely be brought to the attention of the Customs 
Administration for the purpose of making the necessary amendments. 
Article 59: Generally accept ed accounting principles 
1. "Generally accepted accounting principles" are those which enjoy recognized consensus 
or substantial authorized support in a given country at a particular time regarding the economic 
resources and obligations to be recorded as assets and liabilities, which changes in assets and G/VAL/N/1/COL/3 
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  liabilities should be recorded, how the assets an d liabilities and changes thereto be calculated, 
what information should be disclosed and how, and which financial statements should be prepared. 
Such standards may be broad generally applicable guidelines or detailed practices and procedures. 2. For the purposes of these regulations, the Customs Administration shall utilize information 
prepared in a manner consistent with generally accepted accounting principles in the 
corresponding country, according to the valuation method being applied. 
Article 60: Values accepted by  the Customs Administration 
1. For the purposes of applying the test values re ferred to in Article 16 of these regulations, 
the transaction value of identical or similar g oods method or the "fall-back" method, the value 
shall be understood to have been accepted by the Customs if it has been determined that it is consistent with the assumptions and requirements specified in the WTO Customs Valuation 
Agreement for application of each of the methods. 
2. If figures showing ostensibly low customs valu es are submitted to the Customs with a view 
to considering them to be test values or background information for application of the 
aforementioned valuation methods, the Customs Administration may initiate an investigation in 
order to confirm or nullify them. 
3. Values that are being investigated or examined or values that have subsequently been 
nullified shall not be accepted. 
Article 61: Objective and quantifiable data 1. Information or data submitted on any of the elements constituting the customs value shall 
be objective and quantifiable, in other words, they shall be known and appear in the respective 
supporting documents. 
2. The data shall be "objective", meaning they shall be based solely on factual elements 
without any personal interpretation. They shall be "quantifiable", meaning that it shall be possible 
to determine their amount using quantities and fi gures. They shall not be based on estimates, 
assessments or presumptions or on personal experience. 
In the absence of such objective and quantifiable data, the price paid or payable may not be 
adjusted and the transaction value method provided in Article 1 of the WTO Customs Valuation 
Agreement and the provisions in Article 5 of these regulations may not be applied. 
Objective and quantifiable data shall also be required for application of the other methods. 3. Deductions from the price paid or payable for the goods or inclusion of elements that form 
part thereof in the customs value shall only be made if they are distinguished objectively. 
4. The expression "if they are distinguished objectively" in connection with information or data 
on costs, charges, duties, profits or any other elem ent relating to the economic activity that is the 
subject of the transaction means that they must be known or be indicated separately from the 
price of the goods on the commercial invoice, in the sales or transport contract or in other commercial documents supplied for the purposes of customs valuation. 
5. If such elements are not distinguished or are not indicated separately from the price of the 
goods, they shall be included in their customs value. 
Article 62: Surety 1. In instances where it proves necessary to postpone the final determination of the customs 
value of the imported goods, the importer may withdraw its goods if, where so required, 
it provides sufficient surety to cover payment of import duties to which the said goods may be subject, in the form of bonds from banks or insurance companies, deposits or some other 
appropriate instrument. G/VAL/N/1/COL/3 
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  The amount of the surety may be determined taking into account reference prices or in accordance 
with domestic legislation. 
In the case of natural persons who are unable to provide sureties from banks or insurance policies, 
at the request of the importer or when the Customs Administration so requires, 
personal guarantees may be given in the form of bank deposits. 
Domestic customs legislation shall define the forms, procedures and time-limits for the posting 
of a guarantee. 
Article 63: Obligation to supply information 
1. In order to verify and/or determine the custom s value of the imported goods, the importer 
or any person directly or indirectly related to the import transaction for the goods in question or subsequent transactions concerning the same goods, as well as any other person in possession of 
documents and information for the customs declaration of the imported goods and the Andean 
Customs Value Declaration shall, in a timely manner, supply the information, documents and evidence required by the customs authority for th is purpose according to the form and conditions 
prescribed in domestic legislation. 
2. In implementation of Article 10 of the WT O Customs Valuation Agreement, information 
provided which is, by its particular nature, confidential or which is provided on a confidential basis 
shall not be disclosed by the customs authority wi thout the specific permission of the person or 
government providing such information, unless ordered by the courts. 
3. Private documents such as contracts, especial ly sales, intellectual property, licensing, 
distribution and other contracts and, in general, information concerning the transaction and the 
importation of the goods shall be considered conf idential by nature and may not be made public, 
being subject to the provision in the preceding paragraph. 
4. The information on commercial transactions contained in data banks for the purpose 
of customs valuation referred to in Article 25 of Decision No. 571, as well as values being 
investigated or studied by the Customs Administration, constitute confidential information and are subject to the provisions in paragraph 2 of this Article. 
Article 64: Conclusion of agreements with the private sector 
The Customs Administrations of Andean Community  member countries may enter into agreements 
with the private sector that fall within their scope when they deem it necessary for the proper application of customs legislation and, in particular, to enable information to be exchanged in order 
to ensure the correct payment of import taxes, especially information that facilitates determination 
of the customs value of imported goods. 
Article 65: Right of appeal 
1. Taking into account the provision in Article 11 of the WTO Customs Valuation Agreement, 
Andean Community member countries shall provide in their domestic legislation for a right of appeal by the importer or any other person liable for payment of import taxes. 
2. The importer shall not be subject to payment of a fine or the threat of fine merely because 
he has chosen to exercise his/her right of appeal. 
Non-imposition of a fine does not apply to cases of fraud or to cases in which, prior to exercise 
of the right of appeal, payment or guarantee of a fine relating to the declaration of value has been 
determined, in accordance with the provisions in the applicable domestic legislation. 
3. The right of appeal shall be exercised before the Customs Administration, an independent 
body or a judicial authority. G/VAL/N/1/COL/3 
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  Article 66: Implementing instruments 
1. The related implementing instruments in Article 22 of Decision No. 571 concerning Decisions 
by the WTO Committee on Customs Valuation and the Advisory Opinions, Commentaries, Explanatory Notes, Case Studies and Studies of the WCO's Technical Committee on Customs 
Valuation attached as an Annex and those adopted subsequently form an integral part of these 
Community regulations, unless one or more member country express reservations on their implementation. 
2. The General Secretariat of the Andean Community shall be responsible for updating the 
aforementioned Annex, incorporating the various instruments that may be adopted by the issuing 
bodies after signature of these regulations and their timely disclosure. 
Article 67: INCOTERMS 
1. In order to facilitate valuation of goods and, in particular, application of the adjustments 
covered in Section II of Chapter I of Title II of these regulations, the international trade terms 
"INCOTERMS", published by the International Cham ber of Commerce, shall be used or any other 
description concerning the terms for delivery of the imported goods by the seller, agreed under 
a contract. 
2. The terms of delivery shall be set out in the commercial invoice or international sales 
contract and declared in the Andean Customs Value Declaration, as determined in the 
corresponding instructions. G/VAL/N/1/COL/3 
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Appendix 
WORLD CUSTOMS ORGANIZATION (WCO) 
TEXTS OF THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION 
PRELIMINARY TEXTS 
The Technical Committee on Customs Valuation adop ted the text of a study on the procedure for 
adopting instruments containing the information and advice furnished by the Committee, together 
with guidelines for the designation and use of such instruments. These texts, together with the 
updated guidelines, are as follows: 
STUDY 1. Article 18 of the Agreement on Implementation of Article VII of the General Agreement on 
Tariffs and Trade 1994 provides that: 
1. There is hereby established under this Agreement, a Committee on Customs Valuation 
(referred to in the Agreement as the "Committee"), composed of representatives from 
each of the Members. The Committee shall elect its own Chairman and shall normally 
meet once a year, or as is otherwise envisaged by the relevant provisions of this Agreement, for the purpose of affording 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 or the furtherance of its objectives and carrying out such other responsibilities as may be assigned to it by the Members. The WTO Secretariat shall act as the Secretariat of the Committee. 
2. There shall be established a Technical Committee on Customs Valuation (referred to in 
the Agreement as the "Technical Committee"), under the auspices of the Customs Co-operation Council (hereinafter referred to as the CCC in this Agreement), which 
shall carry out the responsibilities described in Annex II to this Agreement and shall 
operate in accordance with the rules of procedure contained therein. 
2. Annex II to the Agreement defines the functions of the Technical Committee on Customs 
Valuation, established under the auspices of the CCC, namely: 
(a) to examine specific technical problems arising in the day-to-day administration of the 
customs valuation systems of Members and to give advisory opinions on appropriate 
solutions based upon the facts presented; 
(b) to study, as requested, valuation laws, procedures and practices as they relate to the 
Agreement and to prepare reports on the results of such studies; 
(c) to prepare and circulate annual reports on the technical aspects of the operation and 
status of the Agreement; 
(d) to furnish such information and advice on any matters concerning the valuation of 
imported goods for customs purposes as may be requested by any Member or the 
Committee. Such information and advice may take the form of advisory opinions, commentaries or explanatory notes; 
(e) to facilitate, as requested, technical assistance to Members with a view to furthering 
the international acceptance of the Agreement; 
(f) to carry out an examination of a matter referred to it by a panel under Article 19 of 
the Agreement; and 
(g) to exercise such other responsibilities as the Committee may assign to it. 
3. The Technical Committee may also exercise responsibilities in the consultation and dispute 
settlement proceedings provided in Article 19 of th e Agreement. Such responsibilities are covered 
in subparagraph (d) above. G/VAL/N/1/COL/3 
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  4. In addition, paragraph 23 of Annex II to th e Agreement provides that the Technical 
Committee shall draw up a report of all its sessions and, if the Chairman considers it necessary, minutes or summary records of its meetings. The Chairman or his designee shall report on the work of the Technical Committee at each m eeting of the Committee and at each meeting 
of the CCC. 
5. The Agreement's intention with regard to the reports which the Technical Committee has to 
submit in consultation and dispute settlement proceedings pursuant to Article 19 is clear. 
6. As a practical matter, the provisions in para graph 23 of Annex II are sufficient with respect 
to the presentation of the reports of the Technical Committee to the Committee on Customs Valuation and the CCC, it being understood th at either body may request reconsideration 
or further consideration on any matter covered in a given report. 
7. In Annex II it is provided that some of the Technical Committee's work will be in the form 
of advisory opinions, commentaries or explanatory notes, as required by the topic. In accordance with the customary procedure, the texts of advisory opinions, commentaries or explanatory notes 
adopted by the Technical Committee shall be attached  to the report of the session and shall form 
part thereof. 
8. In considering the legal status of the decisions taken by the Technical Committee in exercise 
of its responsibilities in accordance with Annex I, it should not be forgotten that it derives clearly 
from the Agreement that the Technical Committ ee has to draw up instruments that enable 
uniformity in interpretation and application of the Agreement to be achieved at the technical level. The instruments for this purpose shall be the advi sory opinions, commentaries, explanatory notes, 
studies and reports. Nevertheless, such instruments do not constitute international regulations 
Unlike the interpretative notes to the Agreem ent which appear in Annex I, none of the 
Agreement's provisions imply that decisions by the Technical Committee are legally binding on the 
signatories as long as they are not incorporated into their domestic legislation. 
9. Notwithstanding the foregoing, the text of Annex II clearly shows that decisions by the 
Technical Committee are intended to play an important and essential role in achieving uniformity 
in the interpretation and application of the Agr eement. The most appropriate way of meeting this 
objective is to create a reporting system that enables both the Council and the Committee on Customs Valuation, each within its own sphere of competence, the Council in accordance with its Convention and the Committee on Customs Valuation in accordance with the Agreement, to take 
into account the Technical Committee's work. 
10. As Article 18 of the Agreement provides for the establishment of a Committee on Customs 
Valuation under the auspices of the CCC, it may be concluded that, as is the case for all the 
Council's Committees, the Technical Committee's re port and any advisory opinion, explanatory 
note or other decision incorporated therein is  subject to approval by the Council in respect 
of technical customs matters. As indicated above, the Council may request that any part of the 
Committee's report be reviewed or made subject to a more detailed study. 
11. Like the Council, the Committee on Customs Valu ation may consider it useful to request the 
Technical Committee to review a particular matter or to pursue its study. 
12. If no request is made by the Committee on Cu stoms Valuation or the Council, all official 
decisions by the Technical Committee such as advisory opinions, studies, commentaries or 
explanatory notes shall be published by the CCC in th e form of a collection of loose-leaf sheets for 
the guidance of Customs Administrations and commercial spheres. 
13. With regard to the practical implementation of  the plan of work, Annex II to the Agreement 
provides that the Technical Committee shall meet as necessary but at least two times a year, whereas Article 18 provided that the Committee on  Customs Valuation shall normally meet once 
a year, when it prepared its annual report to WTO Members. The Council also meets once a year. 
In order to avoid unnecessary delays in publicatio n, therefore, it would be useful to submit 
a report on the instruments adopted by the Technical Committee to whichever of the two bodies that has to approve them meets first. The report in  question should then be submitted to the first 
meeting of this body, accompanied by a statement of the measures already taken. G/VAL/N/1/COL/3 
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  GUIDELINES 
14. The general instruments to be published which contain information and advice supplied 
by the Technical Committee may normally be entitled: 
- advisory opinions; 
- commentaries; 
- explanatory notes; 
- case studies; 
- studies. 
This list is not necessarily exhaustive because the Committee on Customs Valuation may assign 
other responsibilities to the Technical Committee. 
15. The title given to a particular instrument will  depend on the type of text adopted by the 
Technical Committee. The choice will often be obvious, but sometimes there may be two or more 
possibilities. As guidance for choosing the appropriate title, some definitions are given below, together with examples for each of them. 
16. An advisory opinion  is a response to a question on the methods for applying the Agreement 
to a series of actual or theoretical factual elements. Consequently, where the factual elements of a situation are identical to those described in the advisory opinion, Customs Administrations will 
have a clear-cut solution; where they are not iden tical, the advisory opinion may not be directly 
applicable, although it could provide guidance for resolving the problem. 
Example Advisory opinion No. 4.1 on royalties and licence fees. 
17. A commentary  is a treatise consisting of a series of comments on part of the Agreement 
intended to clarify a situation where a literal reading of the text itself can usefully be supplemented by additional guidance. Comment aries may include examples when necessary. 
Commentaries will generally provide Customs Administrations with guidelines for applying 
a particular part of the Agreement in a certain number of situations. 
Example 
Commentary on the treatment applicable to subsidized goods or export premiums. 
18. An explanatory note  elucidates the Technical Committee's views on a question of a general 
nature arising from one or more provisions of  the Agreement. An explanatory note may also 
examine trade practices relating to the question an d reach the conclusions imposed. It will assist 
Customs Administrations in applying a provision of the Agreement to a certain number 
of commercial situations to which it relates. 
Example 
Explanatory note on commissions and brokerage. 
19. A case study  presents a set of facts based on an actual commercial transaction, which can 
be used to demonstrate the practical application of one or more provisions of the Agreement. G/VAL/N/1/COL/3 
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  Example 
Case study with particular reference to Article 8.1(b)(iv) of the Agreement 20. A study  sets out the results of an examination in some depth of any question related to the 
Agreement, in particular a question put to the Technical Committee under paragraph 2(b) 
of Annex II to the Agreement and which is not mo re suitably covered by any of the foregoing 
instruments. A case study may also deal with matters internal to the Technical Committee or in the form of a report to the Committee on Customs Valuation and, accordingly, is only disclosed in 
official circles. 
Example Study on the treatment applicable to used motor vehicles. PROCEDURE FOR CONSIDERATION OF MATTER S SUBMITTED TO THE TECHNICAL COMMITTEE 
21. The following paragraphs describe the procedure normally to be followed for consideration of 
issues and/or for drawing up the instruments of the Technical Committee. 
22. If an issue has been raised and included in the provisional agenda of the Technical 
Committee in accordance with paragraph 12 of Annex II to the Agreement, the Secretariat shall 
submit this for consideration by the Technical Committee in the form of an information document. Preparation of this document would be facilitated if the administration or organization submitting 
the question provided the maximum details possi ble using the format approved in Appendix I 
(T. Pre. 7) of this section. This would also guarantee the uniformity of such issues. The Secretariat document shall set out the factual elements and, to  the extent possible, provide an analysis of the 
matter, proposing various solutions to the Techni cal Committee. Members and observers shall also 
be invited to submit comments in writing. 
23. The Technical Committee shall consider the document and the written comments. At this 
stage, it shall decide what type of action will be required. 
24. The Technical Committee may, inter alia, adopt any of the following options: 
(i) decide not to consider the issue; 
(ii) decide that, although it is not in a position to consider the matter or does not find it 
necessary to do so at that particular time, the issue may be raised again in the future. 
If this is the case, the item shall be included in Part III of the "Conspectus of Technical Valuation Questions"; 
(iii) decide that the most appropriate way of dealing with the matter would be a report to 
be annexed to the report of the relevant meeting of the Technical Committee; 
(iv) decide that an instrument is required. 
25. If the Technical Committee decides that an instrument is required, it should instruct the 
Secretariat with regard to the category and content of the proposed instrument. The Secretariat 
will then prepare a draft instrument for circulation. 
26. When an instrument has been adopted, it shall be submitted to the Council and the 
Committee on Customs Valuation, in accordance with the provision in paragraph 13 of the Study 
on the texts of the Technical Committee on Customs Valuation. 
PROCEDURE FOR REVIEW OF INSTRU MENTS OF THE TECHNICAL COMMITTEE 
27. If a Member wishes to review an existing instrument, the procedure set out below shall 
be followed: 
- the Member concerned shall forward a duly substantiated request to the Secretariat. 
The request shall describe in full and in detail the problems or lacunae found; 
- the Secretariat shall send the appropriate notification regarding the request to all 
Members, giving them an opportunity to comment on it; and G/VAL/N/1/COL/3 
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  - the request, together with the comments  received by the Secretariat and, where 
applicable, comments by the Secretariat, shall be forwarded to the Technical Committee in the form of an information document for its consideration under the agenda item "Issues suggested since the previous session". 
 
28. When examining a request for review of an instrument, the Technical Committee 
may decide: 
(a) not to review the instrument; or 
(b) that, although the Committee is not in a position to review the matter or does not find 
it necessary to do so at that particular time, the issue may be raised again subsequently, and, if this is the case, the request for review shall be included in Part 
III of the "Conspectus of Technical Valuation Questions"; or 
(c) to review the instrument. 
29. If the Technical Committee decides to review the instrument, it may adopt, inter alia,  any of 
the following options: 
(i) not to amend the instrument; 
(ii) to amend the instrument; 
(iii) to draw up a new instrument; or 
(iv) to nullify the instrument and remove it from the Conspectus. 
 
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