G/VAL/W/226  
24 May 2013  
(13-2691)  Page: 1/3  
Committee on Customs Valuation  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON CUSTOMS VALUATION 
ECUADOR  
REPLIES BY ECUADOR TO QUESTI ONS FROM THE UNITED STATES 
The following communication, dated 8 May 2013, is being circulated at the request of the 
delegation of Ecuador.  
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  Below are the comments of the Customs Service (SENAE) of the Government of Ecuador on the 
questions from the United States in document G/VAL/W/220. We note that question 1 of 
document W/220 was answered by the Mission of Ecuador to the WTO during the meeting 
of the Committee on Customs Valuation of October 2012. 
 
Question 1  
The United States notes that Ecuador's last notification of customs valuation legislation 
was in 1996. However, the resp onses to the checklist of i ssues reference more recent 
legislation, including the Andean Community  Regulation implementing Decision No. 571 
on Customs Valuation of Imported Goods,  annexed to Resolution No. 846, published 
in Lima in August 2004. When does Ecuador intend to notify this legislation? 
 Question 2 
 
In response to question 2 of the checklist, regarding the reversal of Articles 5 and 6 of the WTO Customs Valuation Agreement (CVA),  Ecuador stated that "no importer has 
asked to reverse the order of Articles 5 and 6". Please clarify where in Ecuador's 
legislation Article 4 of the CVA is implemented. 
 Reply: 
 The possibility of reversing the order of applicat ion of the methods set forth in Articles 5 and 6 
of the Agreement on Customs Valuation is provided for in Article 4 of Decision 571 of the 
Commission of the Andean Community (CAN), published in Ecuador in Official Register No. 317 
of 20 April 2004.  
Question 3 
 In response to questions 3 and 4, Ecuador indicated that it has not implemented Articles 5.2 and 6.2 of the WTO Agreemen t on Customs Valuation. Why has Ecuador 
not implemented these two articles? When does Ecuador intend to implement 
Articles 5.2 and 6.2 of the CVA?  G/VAL/W/226 
- 2 - 
  Reply: 
 
There is no record in Ecuador of cases in which the customs value of imported goods was determined in accordance with Articles 5.2 and 6 of the Agreement on Customs Valuation, 
either because: 
 - the customs value of the imported goods could be determined in accordance with the 
procedures set forth in Articles 1, 2, 3 or 5.1 of the Agreement; or 
- there was insufficient information, or insufficient information was provided, for Article 6 of 
the Agreement to be applied. 
 
Question 4 
 In response to question 5(b), Ecuador indi cated that it has "tacitly" incorporated 
Article 7.3 of the CVA. Please clarify what is meant by this statement? Does Ecuador's 
legislation provide importers with the right to request and obtain a written explanation of the method used to determine customs value when value is determined under the 
provisions of Article 7 of the CVA? 
 Reply: 
 
Yes, it does provide importers with that right. Article 44 ("Procedure Relating to the Application of 
the Last Recourse Method") of the Andean Comm unity Regulation implementing Decision No. 571 
on the Customs Valuation of Imported Goods annexe d to Resolution No. 846, published in Lima in 
the Official Gazette of the Cartagena Agreement No. 1103 of 9 August 2004, states that the 
valuation of goods using the last recourse method must take account of the provisions of Article 7 
of the WTO Agreement on Customs Valuation and its Interpretative Note. 
 
Question 5  With respect to question 12, Ecuador noted that "Except for the provisions of the 
Agreement which Ecuador takes into account, there is no such obligation in domestic 
legislation". Please further explain this statement, including what is meant by 
the phrase "provisions of the Agreemen t which Ecuador takes into account". 
What provisions of the Agreement does Ecuador not take into account? 
 Reply: 
 Ecuador takes account of all of the provisions of the WTO Agreement on Customs Valuation, which have been fully incorporated in Decision 571 of the Commission of the Andean Community (CAN), published by Ecuador in Official Register No. 317 of 20 April 2004. 
 
Consequently, Article 16 of the said Agreement, under which the importer has the right, upon 
written request, 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, is included in 
the country's legislation on customs valuation.  
Question 6 
 Further, in response to question 12, Ecuador stated that "complaints and the 
administrative act of valuation and tax adjust ment require a technical report describing 
the valuation method used". Please confirm th at such technical reports are available to 
all importers upon request. Please also conf irm that the technical report explains how 
the customs value of the goods was determined. 
 
Reply: 
 
Indeed, technical reports are available to importers upon request, and they explain 
how the customs value of the goods was determined. G/VAL/W/226 
- 3 - 
  Question 7 
 In response to question 10(b), Ecuador indi cated that "it is planned to update the 
regulations relating to special valuation ca ses, which would encompass new cases that 
are currently being examined and studie d". Please further describe Ecuador's 
regulations relating to special valuation cases, as referenced in response to 
question 10(b). What does Ecuador consider a special valuation case to be? Are "special 
valuation cases" subject to the same cu stoms valuation procedures as standard 
valuation cases?  Reply: 
 Special valuation cases concern situations in which, owing to the particular nature of the goods to be valued or owing to the circumstances surrounding the essential import operations, it is not 
possible to apply the main transaction value me thod, nor the secondary methods – for example, 
goods that are damaged, used, under hire contract, etc.  
In such cases, reasonable criteria are used that are consistent with the principles and general 
provisions of the Agreement as well as with Article 7 thereof.  Consequently, the special valuation cases are not su bject to a different procedure from the one set 
forth in the Agreement on Customs Valuation. 
 
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