G/VAL/W/260
18 May 2015
(15-2568)  Page: 1/2
Committee on Customs Valuation  Original: English
 
 NOTIFICATION UNDER ARTICL E 22 OF THE AGREEMENT ON 
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
ECUADOR  
Questions from the United States to Ecuador regarding G/VAL/N/1/ECU/3 
The following submission, dated 11 May 2015, is bein g circulated at the request of the delegation 
of the United States. 
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The United States would like to thank Ecuador for its notification on its customs valuation 
legislation, contained in document G/VAL/N/1/ECU/3 .  Having reviewed this notification, we would 
like to seek the following additional information:  
G/VAL/N/1/ECU/3 - Decision No. 571 
− Article 4 states that "the order of application of the methods indicated in numbers 4 and 5 of 
the preceding Article may be reversed, if reques ted by the importer and with the consent of 
the Customs Administration."  Could Ecuador explain why the consent of the customs 
administration is required where the importer requests to reverse the order of application of 
the valuation methods in Articles 5 and 6, given that the CVA itself does not provide that the importer’s request be subject to acceptance by the customs authorities? 
− Article 5 states that "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."  (Emphasis 
added).  Could Ecuador please explain this provis ion, in light of Article 5.2 of the CVA, which 
provides that this option is available if the importer so requests? 
− Articles 25 and 26 refer to the creation and use of data banks.  We note that reference 
pricing for the determination of customs value is prohibited by Article 7 of the CVA, and any uses of reference prices for risk management purposes should be done with that provision in mind.  We request further information and clarification from Ecuador on how they intend to 
use the data bases referred to in Articles 25 and 26 and reference prices in its customs 
operations.   
Community Regulations Implementing Decision No. 571 - Customs Valuation of 
Imported Goods  
− Article 2(g) offers a de finition for reference prices.  We request further information as to the 
source of this definition, and the purpose for providing this definition of reference prices. 
− Article 5(b):  Please explain the basis for this requirement as a condition for accepting the 
transaction value.  G/VAL/W/260 
 
- 2 - 
 
  − Article 14(3)(a) states that there are three situations which the Customs Administration may 
consider as proof in examining the circumstances of the sale.  According to Note to Article 1, 
Paragraph 2(3) of the CVA, this is not an exha ustive list of examples.  Could Ecuador please 
explain this apparent limitation to three sets of circumstances?    
− Article 15 states that 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.  Could Ecuador please explain this provis ion, in light of Article 1.2(b)(i) of the CVA? 
− Article 34(1) refers to adjustments if identical goods have been exported from a country 
other than the country of export of the goods being valued.  According to Article 15(2)(d) of 
the CVA, identical goods must be produced in the same country as the goods being valued.  As such, could Ecuador please explain this provision (as well as Article 38(1) of the 
Community Regulations for similar goods)  in light of Article 15(2)(d)?   
− Article 44(3)(b), Article 46(1), Article 53, and Article 54(3) refer to reference pricing.  
Articles 53 and 54(3) specifically enumerate the uses of reference prices and appear not to 
involve risk management, but determination of customs value.  Could Ecuador please 
explain these provisions in light of Article 7 of the CVA? 
− Articles 47:  It appears that valuation under the CVA is not being applied to the goods listed 
in Article 47, and a separate customs valuation method is being used.  Could Ecuador please 
explain why? 
− Article 55 refers to prices declared upon export to verify the price declared for imported 
merchandise.  Please clarify the effect of this provision on determining the value of the 
imported goods and how this provision can be reconciled with the CVA.  
− Article 56:  Please explain the basis for making  permanent adjustments to value, given that 
the Note to Paragraph 1(b)(iv) of Article 8 of the CVA provides that additions under Article 8 
of the CVA should be based on objective and quantifiable data. 
− Article 61:  Article 61 requires guarantees in the amount of 200% of the duties and taxes of 
the declared value of the goods.  Could Ecuador explain this provision, given that Article 13 
of the CVA refers to the guarantee covering the ultimate payment of customs duties?  
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