G/VAL/W/233  
 
16 September 2013  
(13-4875)  Page: 1/6  
Committee on Customs Valuation    
 
 NINETEENTH ANNUAL REVIEW OF THE IMPLEMENTATION AND 
OPERATION OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
BACKGROUND WORKING DOCUMENT BY THE SECRETARIAT 
 This working document is circulated by the Secretariat in preparation for the nineteenth 
annual review of the implementation and operation of the Agreement on Implementation of 
Article VII of the General Agreement on Tariffs and Trade 1994 (the Agreement), to be conducted at 
the forthcoming meeting on 27 September 2013.  This document will be updated in light of the discussions at that meeting, in order to give a full picture of the developments that took place in the Committee during the year 2013.   
 
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 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. 
 G/VAL/W/233 
 
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   The contents of this document are as follows: 
  Page 
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER 
STATUS ........................................................................................................................ .... 3 
(a) Delayed Application an d Reservat ions ......................................................................... 3  
(i) Article 20.1 (delayed application of the provisions of the Agreement)  ............................... 3  
(ii) Article 20.2 (delayed application of the computed value method)  .................................... 3  
(iii) Annex III, paragraph 1 (extension of the five-year delay period)  ..................................... 3  
(iv) Annex III, paragraph 2(reservation concerning minimum values)  .................................... 3  
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of 
Articles 5 and 6) (53)  ........................................................................................................ 3  
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the 
importer so requests) (51)  ................................................................................................. 4  
(b) Observer Govern ments (25) ...................................................................................... 4  
(c) Observer International Organization s (6) ..................................................................... 4  
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION ............................... 4  
III. MEETINGS OF TH E COMMITTEE ............................................................................... 4  
IV. NATIONAL LEGISLAT ION PRESENTED ..................................................................... 5  
(a) Texts of national  legislation ....................................................................................... 5  
(b) Checklist of issues .................................................................................................... 5  
(c) Examination of nation al legislation .............................................................................. 5  
(d) Information on the application of the Committee Decisions ............................................. 5  
V. DECISIONS TAKEN BY  THE COMMITTEE .................................................................. 5  
VI. TECHNICAL ASSISTANCE ......................................................................................... 6  
VII. ISSUES RELATED TO IMPLEMENTATION OF THE AGREEMENT .................................. 6  
VIII. PRESHIPMENT IN SPECTION .................................................................................... 6  
IX. REPORTS BY THE TECHNICAL COMMI TTEE ON CUSTOMS VALUATION ..................... 6  
X. CONSULTATION AND DISP UTE SETTLEMENT ........................................................... 6  
XI. ANNUAL REPORT TO THE COUN CIL FOR TRADE IN GOODS ...................................... 6  
 G/VAL/W/233 
 
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  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 [13 September 2013].  These provisions have 
been invoked as follows: 
 (i) Article 20.1 (delayed application of the provisions of the Agreement)  
No Member maintains this special and differential treatment provision. 
(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)  
No 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) 
Argentina
1 Guatemala Niger 
Bahrain 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   
Egypt Morocco1 Zambia 
El Salvador Myanmar Zimbabwe1 
Gabon Nicaragua  
 
                                               
1 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/233 
 
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(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so 
requests) (51) 
Argentina1 Dominican Republic Kenya Peru1 
Bahrain Ecuador Madagascar Philippines 
Bangladesh Egypt Malaysia Senegal Benin El Salvador Malawi Sri Lanka 
Brazil
1 Gabon Maldives Thailand 
Brunei Darussalam Guatemala Mali Togo Burkina Faso Guyana Mexico
1 Tunisia 
Cameroon Haiti Morocco1 Turkey1 
Chile Honduras Myanmar Uruguay 
Colombia India1 Nicaragua Venezuela, Bol. Rep. of  
Costa Rica Indonesia Niger Zambia 
Côte d'Ivoire Israel Nigeria Zimbabwe1 
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 Yemen Iran  
 
(c) Observer International Organizations (6)
2 
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 2012) Ms Irena Banaszynska (Poland) 
Chairperson (elected in May 2013)  Mr. Pierre-Emmanuel Brusselmans (Belgium)  
III. MEETINGS OF THE COMMITTEE 
During the reporting period, the Committee held two formal meetings.  The first meeting was held on 
15 May 2013 (G/VAL/M/55) and was chaired by Ms  Irena Banaszynska (Poland).  The second 
meeting was held on 27 September 2013 (G/VAL/M/ to be issued) and was chaired by 
Mr. Pierre-Emmanuel Brusselmans (Belgium).    
                                               
2 These organizations now have official observer  status following Agreement 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/233 
 
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  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"3 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.  During the reporting period, communications were submitted by:  Ecuador (G/VAL/N/1/ECU/3); 
Japan (G/VAL/N/1/JPN/2); Laos PDR (G/VAL/N/1 /LAO/1; G/VAL/N/1/LAO/1/Add.1); Macao, China 
(G/VAL/N/1/MAC/2), and Mali (G/VAL/N/1/MLI/1).  Th e status of these notifications is contained in 
document G/VAL/232. 
 
(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.   During the reporting period, communications were submitted by Japan (G/VAL/N/2/JAP/2) and 
Macao, China (G/VAL/N/2/MAC/2).  The status of these notifications is also contained in document 
G/VAL/232.    
(c) Examination of national legislation 
At its meeting of 15 May 2013, 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 the Kingdom of Bahrain; Belize; Cambodia; Cape Verde; China; Costa Rica; 
Ecuador; Macao, China; Mali; Nicaragua; Nigeria; Russian Federation; Rwanda; Saint Vincent and the Grenadines; Tunisia; Uruguay; and Ukraine.  In addition, the Committee concluded the review 
of Thailand's national legislation.  
 
At the 27 September 2013 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 [the Kingdom of Bahrain; Belize; Cambodia; Cape Verde; China; Costa Rica; 
Ecuador; Japan; Lao PDR; Macao, China; Mali; Nicaragua; Nigeria; Russian Federation; Rwanda; Saint Vincent and the Grenadines; Tunisia; Uruguay; and Ukraine.  In addition, the Committee 
concluded the review of … national legislation. ] [To be updated] 
 (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.23.  During the reporting period, communications were submitted by 
Ecuador (G/VAL/N/3/ECU/1 and G/VAL/N/3/ECU/1/Corr.1) and Macao, China (G/VAL/N/3/MAC/1).  
[Uruguay proposed to update the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment, and to rectify the English and Spanish versions of Article 8:(1)(b)(iv) of 
the Agreement.] 
  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 
                                               
3 Section B.2 of document G/VAL/5 G/VAL/W/233 
 
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  Committee.  The texts of the decisions are contained in document G/VAL/1.  During the reporting 
period, no new decisions were adopted by the Committee.  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 2012-2013 biennial technical assistance plan was currently being implemented.  This Plan foresaw regional activities 
on "Market Access Issues", which include customs valuation training as one of the areas to be 
covered.  Three of such activities were delivered in 2013 for the following regions: 1) English Speaking African countries, which took place at the beginning of March in Pretoria, South Africa; 2) Central and Eastern Europe, plus Central Asia countries, which took place in February in 
Austria; and 3) Arab and Middle East countries, which took place at the end of May in Kuwait.  
A fourth activity for Caribbean countries was scheduled to take place in October. 
 
Members also have the possibility to make at any time requests for technical assistance on 
customs valuation, which would be met by a national activity designed to meet the needs of the recipient.  Six national activities were delivered in 2013:  1) Costa Rica in January; 2) Ukraine in 
February; 3) Iran in May; 4) Brunei Darussalam in June, and 5) Tajikistan in August, and 6) Togo 
also in August.  Most of these technical assistance missions were delivered jointly by the WTO and WCO Secretariats.   
VII. ISSUES RELATED TO IMPLEMENTATION OF THE AGREEMENT 
At the meetings of 15 May and [27 September ], 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 three addenda to the summary of notifications contained in document 
G/PSI/N/1/Rev.1, which circulated as G/PSI/N/1/Rev.1/Add.1, G/PSI/N/1/Rev.1/Add.2 and 
G/PSI/N/1/Rev.1/Add.3.  New notifications were received from Laos PDR, Lesotho, Mali and Samoa.   
 
IX. REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION 
At the 15 May meeting, the representative of th e WCO presented a report on the 36th session of 
the Technical Committee on Customs Valuation (TCCV), which was held from 15 to 19 April 2013.  
He also noted, inter alia , that an advisory opinion on royalties and licence fees under Article 8.1(c) 
of the Agreement (advisory opinion 4.15) had been approved, and that the TCCV would be sending to the WTO comments concerning the valuation of USB flash drives "Valuation of carrier media 
bearing software for data processing equipment", as well as information on a possible 
inconsistency in the Spanish version of Article 8.1 (b) (iv) of the Agreement.     
At the 27 October meeting, the WCO representative [to be updated]. 
 X. CONSULTATION AND DISPUTE SETTLEMENT 
During the period under consideration, Guatemala requested consultations with Peru, pursuant to, 
inter alia, Articles 1, 2, 3, 5, 6 and 7 of the Agreement on Implementation  of Article VII of the 
General Agreement on Tariffs and Trade 1994 (Agreement on Customs Valuation) with respect to the imposition by Peru of an "additional duty" on imports of certain agricultural products 
(G/VAL/D/12).  
 
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/..).  [To be updated] 
 
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