G/VAL/W/251  
 
10 October 2014  
(14-5751)  Page: 1/6  
Committee on Customs Valuation    
 
 DRAFT 
TWENTIETH ANNUAL REVIEW OF THE IMPLEMENTATION AND 
OPERATION OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
NOTE BY THE SECRETARIAT1 
Article 23 of the Agreement provides that "the Committee shall review annually the implementation 
and operation of this Agreement taking into account the objectives thereof".  The main objectives of 
the Agreement are those listed in the General Introductory Commentary.  The annual review of the Committee should cover the implementation and operation of the Agreement in the light of its objectives and specific obligations. 
At its meeting of 24 October 2014, the Committee on Customs Valuation conducted and adopted 
the twentieth  annual review of the implementation and operation of the Agreement. 
The contents of this document are as follows: 
  Page 
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER 
STATUS ........................................................................................................................ .... 2 
(a) Delayed Application an d Reservat ions ......................................................................... 2  
(i) Article 20.1 (delayed application of the provisions of the Agreement)  ............................... 2  
(ii) Article 20.2 (delayed application of the computed value method)  .................................... 2  
(iii) Annex III, paragraph 1 (extension of the five-year delay period)  ..................................... 2  
(iv) Annex III, paragraph 2 (reservation concerning minimum values)  ................................... 2  
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of 
Articles 5 and 6) (53)  ........................................................................................................ 2  
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the 
importer so requests) (51)  ................................................................................................. 3  
(b) Observer Govern ments (25) ...................................................................................... 3  
(c) Observer International Organization s (6) ..................................................................... 3  
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION ............................... 3  
III. MEETINGS OF TH E COMMITTEE ............................................................................... 3  
IV. NATIONAL LEGISLAT ION PRESENTED ..................................................................... 4  
(a) Texts of national  legislation ....................................................................................... 4  
(b) Checklist of issues .................................................................................................... 4  
(c) Examination of nation al legislation .............................................................................. 4  
(d) Information on the application of the Committee Decisions ............................................. 4  
V. DECISIONS TAKEN BY  THE COMMITTEE .................................................................. 5  
                                               
1 This document has been prepared under the Secret ariat's own responsibility and without prejudice to 
the positions of Members and to their rights and obligations under the WTO. G/VAL/W/251 
 
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  VI. TECHNICAL ASSISTANCE ......................................................................................... 5  
VII. ISSUES RELATED TO IMPLEMENTATION OF THE AGREEMENT .................................. 5  
VIII. PRESHIPMENT IN SPECTION .................................................................................... 5  
IX. REPORTS BY THE TECHNICAL COMMI TTEE ON CUSTOMS VALUATION ..................... 5  
X. CONSULTATION AND DISP UTE SETTLEMENT ........................................................... 6  
XI. ANNUAL REPORT TO THE COUN CIL FOR TRADE IN GOODS ...................................... 6  
 
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER STATUS 
(a) Delayed Application and Reservations 
This section reflects the situation with respect to special and differential treatment provisions 
available for developing country Members as of 3 October 2014.  These provisions have been 
invoked as follows: 
(i) Article 20.1 (delayed application of the provisions of the Agreement)  
In 2014, The Gambia notified that it had the delayed application of the Agreement during the 
period 1996-2010 (G/VAL/N/4/GMB/1). 
(ii) Article 20.2 (delayed application of the computed value method)  
No Member maintains this special and differential treatment provision. 
(iii) Annex III, paragraph 1 (extension of the five-year delay period)  
As a result of its Accession to the WTO, Yemen will start fully implementing the Agreement by 
31 December 2016.2  No other Member maintains this special and differential treatment provision.   
(iv) Annex III, paragraph 2 (reservation concerning minimum values) 
No Member maintains this special and differential treatment provision. 
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5 
and 6) (53) 
Argentina3 Guatemala Niger 
Bahrain, Kingdom of Guyana Pakistan Bangladesh Haiti Panama 
Benin Honduras Peru
1 
Brazil1 India1 Philippines 
Brunei Darussalam Indonesia Senegal Burkina Faso Israel Sri Lanka 
Cameroon Jamaica Thailand 
Chile Kenya Togo Colombia Madagascar Tunisia 
Costa Rica Malawi
1 Turkey1 
Côte d'Ivoire Malaysia Uganda Djibouti Maldives United Arab Emirates 
Dominican Republic Mali Uruguay 
Ecuador Mexico
1 Venezuela, Bol. Rep. of   
                                               
2 See paragraphs 108-115 of the Report of the Working Party on the Accession of Yemen to the WTO, 
WT/ACC/YEM/42. 
3 Members that maintain in the WTO the special and differential treatment provisions that had been 
invoked under the Tokyo Round Agre ement through Decision WT/L/38. G/VAL/W/251 
 
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  Egypt Morocco1 Zambia 
El Salvador Myanmar Zimbabwe2 
Gabon Nicaragua  
 
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so 
requests) (51) 
Argentina4 Dominican Republic Kenya Peru3 
Bahrain, Kingdom of Ecuador Madagascar Philippines 
Bangladesh Egypt Malaysia Senegal Benin El Salvador Malawi Sri Lanka Brazil
3 Gabon Maldives Thailand 
Brunei Darussalam Guatemala Mali Togo 
Burkina Faso Guyana Mexico3 Tunisia 
Cameroon Haiti Morocco3 Turkey3 
Chile Honduras Myanmar Uruguay 
Colombia India3 Nicaragua Venezuela, Bol. Rep. of  
Costa Rica Indonesia Niger Zambia 
Côte d'Ivoire Israel Nigeria Zimbabwe3 
Djibouti Jamaica Pakistan   (b) Observer Governments (25) 
Afghanistan Iraq 
Algeria Kazakhstan Andorra Lebanese Republic 
Azerbaijan Liberia, Republic of 
Bahamas Libya Belarus Sao Tomé and Principe 
Bhutan Serbia 
Bosnia and Herzegovina Seychelles Comoros Sudan Holy See Syrian Arab Republic 
Equatorial Guinea Uzbekistan 
Ethiopia  Iran  
 
(c) Observer International Organizations (6)
5 
African, Caribbean and Pacific Group of States (ACP) 
Inter-American Development Bank (IADB) 
International Monetary Fund (IMF) United Nations Conference on Trade and Development (UNCTAD) World Bank 
World Customs Organization (WCO) 
 II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION 
Chairperson (elected in May 2013) Mr. Pierre-Emmanuel Brusselmans (Belgium) 
Chairperson (elected in May 2014)  Ms. Joanna Cheung (Hong Kong, China)  
III. MEETINGS OF THE COMMITTEE 
During the reporting period, the Committee held three formal meetings.  The first meeting was held 
on 12 May 2014 (G/VAL/M/57) and was chaired by Mr. Pierre-Emmanuel Brusselmans (Belgium).  The second meeting was held on 27 June 2014, and was chaired by Ms. Joanna Cheung 
(Hong Kong, China).  It was suspended and reconvened on 23 July (G/VAL/M/58).  The third 
                                               
4 Members that maintain in the WTO the special and differential treatment provisions that had been 
invoked under the Tokyo Round Agre ement through Decision WT/L/38. 
5 These organizations now have official observer  status following Agre ement in the Committee 
(G/VAL/M/5) and Agreements between the World Bank and the IMF with the WTO (WT/L/195). G/VAL/W/251 
 
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  meeting was held on 24 October 2014 under the chairmanship of Ms. Cheung (G/VAL/M/59).  
In addition, an Informal Workshop on the Use of Customs Valuation Databases was also held on 24 October. 
IV. NATIONAL LEGISLATION PRESENTED 
(a) Texts of national legislation 
Article 22 of the Agreement requires each Member to inform the Committee of any changes in its 
laws and regulations relevant to the Agreement and in the administration of such laws and 
regulations.  At its first meeting, on 12 May 1995, the Committee agreed on procedures for the 
notification of national legislation (G/VAL/M/1, pa ragraphs 29-35, 71 and 72).  Paragraph i) of the 
"Decision on Notification and circulation of national legislation in accordance with Article 22 of the Agreement"
6 requires Members to submit the complete texts of their national legislation (laws, 
regulations, etc.) on customs valuation in one of the three official WTO languages. 
The status of these notifications is contained in document G/VAL/W/232/Rev.2.  During the reporting 
period, new notifications were submitted by: Chile (G/VAL/N/1/CHL/2); Colombia 
(G/VAL/N/1/COL/2); Costa Rica (G/VAL/N/1/CRI /3); The Gambia (G/VAL/N/1/GMB/1); Lesotho 
(G/VAL/N/1/LSO/1); the Republic of Moldova (G/VAL/N/1/MDA/2 and G/VAL/N/1/MDA/3), and the Russian Federation (G/VAL/N/1/RUS/2). 
(b) Checklist of issues 
At its first meeting, on 12 May 1995, the Committee agreed on procedures for the submission of 
replies to a checklist of issues (G/VAL/M/1, paragraphs 36-39).  The checklist of issues is contained in G/VAL/5.  
The status of these notifications is also contained in document G/VAL/W/232/Rev.2. During the 
reporting period, communications were submitted by Chile (G/VAL/N/2/CHL/1) and Colombia (G/VAL/N/1/COL/2).  
(c) Examination of national legislation 
At its meeting of 12 May 2014, the Committee continued the examination of various national 
legislations.  In this regard, it agreed to re vert at the next meeting the examination of the 
legislations of the Kingdom of Bahrain; Belize; Cabo Verde; Chile; Costa Rica; Ecuador; 
The Gambia; Lesotho; Mali; the Republic of Mold ova; Nicaragua; Nigeria; Russian Federation; 
Rwanda; Saint Vincent and the Grenadines; Tunisia;  Uruguay; and Ukraine.  It examined for the 
first time the national legislation of Chile, as well as new notifications by Costa Rica; 
the Republic of Moldova; and the Russian Federa tion.  In addition, the Committee concluded the 
review of the national legislation of China; Japan; Lao's People Democratic Republic; and Macao, China.  
At the 24 October meeting, the Committee continued the examination of various national 
legislations.  In this regard, it agreed to revert at the next meeting to the examination of the 
legislations of […].  It examined new national legislation submitted by Colombia.  In addition, the 
Committee concluded the review of the national legislation of […].  
(d) Information on the application of the Committee Decisions 
Notifications on the application of the Decision on the Treatment of Interest Charges in the Customs 
Value of Imported Goods and of paragraph 2 of the Decision on the Valuation of Carrier Media 
Bearing Software for Data Processing Equipment (G/VAL/5) were summarized by the Secretariat in document G/VAL/W/5/Rev.24.  During the reporting period, the Committee received new notifications by Chile (G/VAL/N/3/CHL/1 and G/VAL /N/3/CHL/2) and Colombia (G/VAL/N/3/COL/1).   
                                               
6 Section B.2 of document G/VAL/5. G/VAL/W/251 
 
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  V. DECISIONS TAKEN BY THE COMMITTEE 
At its first meeting on 12 May 1995, the Committee adopted Decisions which had been previously 
adopted by the Tokyo Round Committee.  These Decisions are reproduced in document G/VAL/5.  The Committee also adopted Decisions that were referred by the Ministers at Marrakesh to the 
Committee.  The texts of the decisions are contained in document G/VAL/1.   
At the 12 May meeting, the Committee agreed to request the Director General to initiate a 
"procès-verbal de rectification" procedure to rectify the Spanish and English versions of 
Article 8:(1)(b)(iv) of the Agreement on Customs Valuation, as proposed by Uruguay in document 
G/VAL/W/241/Rev.1 ("Proposal for updating the Deci sion on the valuation of carrier media bearing 
software for data processing equipment").  Further details were provided by the Chairperson at the 23 July meeting.   
At the 12 May and 24 October meetings, the Committee considered a proposal by Uruguay 
(G/VAL/W/241/Rev.1) to update the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment, including statistical information prepared by the Secretariat 
(G/VAL/W/249). 
At the 23 July meeting (which was a continua tion of the formal meeting suspended on 
27 June 2014), the Committee agreed on the terms of reference to hold and informal workshop on 
the use of customs valuation databases (G/VAL/72), which took place the morning of 
24 October 2014.  
VI. TECHNICAL ASSISTANCE 
The Committee took note that technical assistance in the area of customs valuation was now 
incorporated in the WTO-wide technical assistance programme, and that 2014-2015 biennial 
technical assistance plan was currently being impl emented.  Unlike previous years, there had been 
no regional activities in 2014.  
Members also have the possibility to request at any time technical assistance on customs 
valuation, which would be met by a national activi ty designed to meet the needs of the recipient. 
In 2104, three national activities were carried out for Azerbaijan, Colombia (jointly with the WCO), 
and Iraq.   
VII. ISSUES RELATED TO IMPLEMENTATION OF THE AGREEMENT 
At the meetings of 12 May [and 24 October ], the Committee took note of statements made 
regarding the work in relation to the Committee's mandate in paragraph 8.3 of the Ministerial 
Decision on Implementation-Related Issues and Concerns. 
VIII. PRESHIPMENT INSPECTION 
The Secretariat prepared a report consolidating all the notifications which had been received on 
preshipment inspection (G/PSI/N/1/Rev.2). During the reporting period, a new notification was 
submitted by The Gambia.  
On the report by the International Federation of Inspection Agencies (IFIA) concerning countries that 
use preshipment inspection services, new information was submitted at the beginning of May and distributed in G/VAL/W/63/Rev.16. 
[At the 24 October meeting, the Committee conducted the third review of the Agreement on 
Preshipment Inspection…] 
IX. REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION 
At the 12 May meeting, the representative of the WCO presented a report on the 38th session of the 
Technical Committee on Customs Valuation (TCCV), which was held from 5 to 9 May 2014.  It was also noted that a communication had been received from the Chairperson of the Technical G/VAL/W/251 
 
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  Committee on Customs Valuation, containing the "Guidelines on the Development and Use of a 
National Valuation Database as A Risk Assessme nt Tool", circulated in document G/VAL/W/242. 
[At the 24 October meeting, the WCO representative presented a report on the 39th session of the 
Technical Committee on Customs Valuation (TCCV), which was held from 20 to 23 October 2014. …] 
X. CONSULTATION AND DISPUTE SETTLEMENT 
During the reporting period, there was one dispute with claims involving the Agreement on 
Customs Valuation:  Peru - Additional Duty on Imports of Certain Agricultural Products (DS457, 
complainant: Guatemala).  There were also four requests for consultations involving the 
Agreement on Preshipment Inspection:  Indonesia - Importation of Horticultural Products, Animals 
and Animal Products (DS466 and 477, complainant: New Zealand; and DS465 and 478 complainant:  United States). 
XI. ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS  
The Committee adopted its annual report to the Council for Trade in Goods in accordance with the 
requirements of Article 23 of the Agreement (G/L/…).   
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