G/VAL/W/288  
 
18 April 2016  
(16-2158)  Page: 1/3  
Committee on Customs Valuation  Original: English  
 
NOTIFICATION UNDER ARTICLE 22 OF THE  
AGREEMENT ON IMPLEMENTATI ON OF ARTICLE VII OF  
THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
UKRAINE  
Replies to the Questions posed by Norway regarding G/VAL/N/1/UKR/1 
 (Updated according to the Customs Code of Ukraine No. 4495-VI of 13 March 2012) 
The following communication, dated 13 April 2016, is being circulated at the request of the 
delegation of Ukraine.  
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Question 1 
(a) What is the legal basis for the referenc e price system as applied by Ukraine?  
Please refer both to the Customs Code of Ukraine as well as to the Customs 
Valuation Agreement. 
(b) Please provide a detailed description of the reference price system, including a 
detailed description of how the reference prices are calculated.  Describe how 
often they are amended.   
(c) Norway has received numerous reports of the application of differentiated 
reference prices (indicative prices) for fish , and different levels of reference prices 
for the same goods in different customs offices. 
Can Ukraine describe what measures it has taken or will take to ensure that where 
it is legally permissible to apply a refe rence price any such reference price is 
applied uniformly all across Ukrain e and equally to all importers? 
(d) How does Ukraine ensure that any refere nce price (indicative price) is known to 
the importers in advance of importation?  In particular, where are such prices 
published as required by Article 12 of the Customs Valuation Agreement? 
Answer: 
The procedures and methods of customs valuatio n of goods crossing the customs border of 
Ukraine are determined by Section III of the Cu stoms Code of Ukraine and are based on the 
Agreement on Implementation of  Article VII of the GATT 1994. 
The customs value of goods is determined by th e declarant (Chapter 9 Article 51 of the Customs 
Code) using one of the six methods listed in Articles 58-60, 62-64 of the Code, which correspond 
to the methods described in Articles 1-3, 5-7 of the CV Agreement.  According to Article 57 of the 
Code the main method of determining the customs value is the price in/on the contract (transaction value) of imported goods (the cost of operation).  
The basis for determining the customs value by means of methods 2-5 is the objective data 
(contract price for identical, similar goods; price of imported identical, similar goods in the customs G/VAL/W/288 
 
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  territory of Ukraine, the prime cost of goods).  If the customs value of goods cannot be 
determined by sequential application of the me thods mentioned in Articles 58-60, 62-63 of the 
Code, it is then determined by the fall-back method.  In accordance with the provisions of Article 64 of the Code, the customs value of imported goods is not determined on the basis, inter alia , of 
minimum customs value, arbitrary or fictitious value.  Thus, according to the Ukrainian legislation, 
there is no determination of customs value on th e basis of the minimum, arbitrary or fictitious 
values, including indicative or reference prices. 
In practice, when customs control is conducted, in particular to control the determination of the 
customs value of goods, the customs officials us e the analysis and risk management system.  
This approach corresponds to the International Convention on Simplification and Harmonization of Customs Procedures.  Using the customs value of goods as the risk area is recommended by the 
World Customs Organization ("Guide to the general application.  Chapter 6. Customs control").  
The analysis and risk management system consist of a software and complex information based on 
a system of evaluation of the probability of infringement to legislation, including in determining the 
customs value of goods, and used in the analys is of the electronic version of the customs 
declaration. Thus, the simultaneous use of different levels of risks for the same commodity by different customs authorities is excluded.  
At the same time, the result of the application of the analysis and risk management system is only 
a recommendation for customs officials to use additional forms of customs control, including verification of documents and data confirming customs value of goods.  
Question 2 
(e) Article 267 of the Customs Co de of Ukraine provides that: "The method of 
definition of the customs value at the pr ice of the contract concerning the goods 
imported (cost of operation), is used in case when: …" 
This language is slightly different from the language of Articl e 1.1 of the Customs 
Valuation Agreement, where it is stated  that "The customs value of imported 
goods shall be the transactio n value (...) provided: …" 
Does Ukraine agree that transaction value shall be accepted in all cases, except 
where the specific conditions of sub-paragr aphs (a)–(d) of paragraph 1 of Article 1 
of the Customs Valuation Agreement are fulfilled? 
Answer: 
Article 267 corresponds to Article 58 of the Customs Code of Ukraine No. 4495-VI of 
13 March 2012. 
According to the Customs Code of Ukraine, the me thod for defining the customs value on the basis 
of the contract price of imported goods (transaction value) is used in all cases that meet the 
conditions specified in paragraph 1 of Article 58 of the Code, which corresponds to Article 1 of the Agreement.  
However, Article 17 of the Agreement stipulates th at 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. 
The decision of the WTO Ministerial Conference in respect of cases where customs administrations 
have reasons to doubt the truth or accuracy of the declared value (Decision on Shifting the Burden of Proof), in particular, is mentioning that:  
"When a declaration has been presented and where the customs administration has reason 
to doubt the truth or accuracy of particulars or of documents produced in support of this declaration, the customs administration may ask the importer to provide further 
explanation, including documents or other evid ence, that the declared value represents the G/VAL/W/288 
 
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  total amount actually paid or payable for the imported goods, adjusted in accordance with 
the provisions of Article 8.  If, after receivin g further information, or in the absence of a 
response, the customs administration still has reasonable doubts about the truth or accuracy of the declared value, it may, bearing in mind  the provisions of Article 11, be deemed that 
the customs value of the imported goods canno t be determined under the provisions of 
Article 1."  
These provisions are reflected adequately in the legislation of Ukraine on customs issues.  
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