G/VAL/W/231/Rev.1  
 
28 April 2014  
(14-2580) Page: 1/3 
Committee on Customs Valuation  Original: English  
 
PROPOSAL FOR THE COM MITTEE ON CUSTOMS VA LUATION TO HOLD AN  
INFORMAL WORKSHOP TO  DISCUSS THE POSSIBLE  USE OF DATABASES TO SET 
REFERENCE PRICES  
PROPOSAL FROM AUSTRALIA, CANADA, C HINESE TAIPEI, THE E UROPEAN UNION,  
AND THE UNITED STATES  
Revision  
The following  proposal is being circulated at the request of the delegations of Australia, Canada, 
Chinese Taipei, the European Union and the United States.  
 
 
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Terms of Reference:  Workshop on the Use of Customs Valuation Databases  
I. BACKGROUND  
i. Institu tional Framework  
Pursuant to Article 18.1 of the Agreement on the Implementation of Article VII of the General 
Agreement on Tariffs and Trade 1994  (Customs Valuation Agreement), the purpose of meetings of 
the CCV is to afford Members the opportunity to con sult on matters relating to the administration 
of the customs valuation system by any Member as it might affect the operation of this 
Agreement."  
Pursuant to Article 7.2(b), (f), and (g) of the Customs Valuation Agreement: "[n]o customs value 
shall be dete rmined under the provisions of this Article on the basis of:  a system which provides 
for the acceptance for customs purposes of the higher of two alternative values; minimum customs 
values; or arbitrary or fictitious values.  
According to Paragraph 10 of t he Guidelines for the Development and Use of a National Valuation 
Database as a Risk Assessment Tool1:  "[a] valuation database may be used by a Customs 
Administration only as a risk assessment tool."  Paragraph 18 states that a "Customs 
Administration may  not:  
 Use a database to determine the Customs value of imported goods, as a substitute value for 
imported goods or as a mechanism to establish minimum values;  
 Reject the declared value solely on the basis of a difference between the declared value and 
the database values;  
 Disregard the requirements of article 13 of the WTO Valuation Agreement (concerning 
release of imported goods upon sufficient guarantee) in order to employ a valuation 
database; or  
                                               
1 The guidelines are established by the World Customs Organization and are available at: 
http://www.wcoomd.org/en/topics/valuation/instruments -and-
tools/~/media/WCO/Public/Global/PDF/Topics/Valuation/Instruments%20and%20Tools/Guide s/guidelines_nati
onal_db.ashx   G/VAL/W/231/Rev.1  
 
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   Use a valuation database as a substitute for other techni ques, such as post -importation 
audit, to assess the truth or accuracy of the declared value.  
ii. Recent WTO Discussions  
On 7 May 2012 the International Chamber of Commerce (ICC) wrote a letter to the Chair of the 
WTO Committee on Customs Valuation (CCV) ou tlining concerns regarding the "rapid proliferation 
of valuation databases among Members".  The ICC wrote a follow -up letter on 10 July 2012, 
thanking the Chair for holding consultations on the 7 May letter, and requesting observer status to 
the CCV for th e purposes of discussing the use of customs valuation databases.  
At the CCV on 25 October 2012, the Chair informed Members that the ICC wishes "to cooperate 
with the Committee and, in particular, with respect to problems that could arise from the eventual  
misuse of customs valuation databases to set minimum or reference prices."  The Chair "saw 
interest to continue work in this area" and "proposed holding informal consultations" 
(G/VAL/M/54).  
On 30 April 2013, the Chair of the CCV invited 28 delegations to  informal consultations to discuss 
the letters from the ICC, and in particular problems which may arise from the eventual misuse of 
customs valuation databases to set minimum or reference prices.  While Members recognized that 
the ICC was not an observer, and could not become an observer, to the CCV, most delegations 
indicated flexibility to explore other options to allow the ICC to participate, including through an 
informal seminar or workshop.   Members agreed that the process should be Member -driven.  
At the CCV on 15 May 2013 "Canada proposed to invite the ICC to come and speak to the 
Committee about their work on [databases], which could be done either in a dedicated session, an 
informal workshop or a seminar.  This presentation could also encourage a bro ader discussion 
amongst Members regarding their experiences in implementing the valuation code, particularly as 
it concerns the use of reference prices."  The European Union;  Australia;  United States;  and 
Chinese Taipei were supportive of Canada's proposal .  Since no Members opposed the proposal, 
the Chair "proposed that her successor would hold informal consultations to continue the 
discussion and elaborate on how to proceed." (G/VAL/M/55).   
On the suggestion of the Chair and Secretariat, Australia, Canad a, Chinese Taipei, the European 
Union and the United States issued a written proposal on 22 August 2013 to increase 
transparency, and to encourage the engagement of capital -based experts (G/VAL/W/231). 
The proposal was discussed during informal consultatio ns on 23 September 2013, and at the 
formal CCV on 27 September.  While the proposal gained support from some Members, others 
asked for more information regarding the purpose and objective of the proposal, and for more 
specific details, including with respe ct to timing and participation.  These questions were reiterated 
and further clarified during informal consultations on 11 February 2014.  In particular, some 
Members asked about the possibility of presentations by customs experts, noting significant 
interest on behalf of their capital -based officials.   Co-sponsors indicated an openness to re -draft 
the proposal to respond to Members' questions and comments.  
II. UPDATED PROPOSAL  
Co-sponsors propose that the CCV hold an informal workshop to discuss the use of cu stoms 
valuation databases.  
iii. Purpose and Objective  
The purpose of the proposed workshop is to share experiences and perspectives to improve 
understanding, raise awareness, and promote good practices with respect to the use of customs 
valuation database s.  The workshop is without prejudice to the specific practices of any Member, 
and will not result in any specific recommendations, outcomes, or next steps.  
International organizations, including representatives from the WTO Secretariat, World Customs 
Organization, and Technical Committee on Customs Valuation will be invited to present their 
organizations' work on databases, providing useful background for the discussion by drawing the 
link between institutional and legal frameworks and current practices.  G/VAL/W/231/Rev.1  
 
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  Drawing from this background, the ICC will be invited to present a private sector perspective on 
the use of customs valuation databases, raising awareness by providing a general outline of the 
challenges faced by exporters, as well as identifying potentia l best practices.  
A balanced representation of capital -based experts drawn from Africa, Asia, Europe, North and 
South America will be invited to share their experiences with the use of valuation databases. 
The presentations will be aimed at improving part icipants' understanding of current practices, 
including challenges faced, with a view to improving institutional and infrastructural knowledge 
and capacity with respect to best practices in customs valuation.   
iv. Provisional Agenda  
9:30 Welcoming remarks  (15 minutes)  
 Chair of the CCV  
 Director of the Market Access Division of the WTO   
9:45 International Organizations Session (45 minutes)  
 WTO Secretariat  
 World Customs Organization  
 Technical Committee on Customs Valuation  
10:30   Private Sector Session (30 minutes)  
 International Chamber of Commerce  
11:00  Public Sector Session (100 minutes)  
 Capital -based experts drawn from Africa, Asia, Europe, North and South America  
13:30   Statements and questions from Members (50 minutes)  
v. Details  
Participation:  The w orkshop will be open to WTO Members, observers, and the ICC.  
Duration:  The workshop will last three hours taking place either in the morning immediately 
before, or the afternoon immediately following, the formal CCV meeting.  
Timing:  To promote greater capital based representation, the workshop is tentatively 
scheduled for Friday , 24 October immediately after the Technical Committee on 
Customs Valuation, scheduled for 20-23 October.  
Documents:  No specific documentation is proposed. Presenters will be e ncouraged, but not 
required, to provide their presentations and any other inputs in advance of the 
workshop.  
Venue:  Centre William Rapport, WTO, Geneva  
Further Details:  Any changes or clarifications to the provisional agenda and details listed above 
will be determined by Members through subsequent informal consultations of the CCV.  
 
 
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