G/VAL/W/248  
 
25 September 2014  
(14-5376)  Page: 1/3  
Committee on Customs Valuation  Original: English  
 
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON 
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
UKRAINE 
Responses to the Questions from Norway posed in document G/VAL/W/199 
 
The following submission, dated 5 September 2014,  is being circulated at the request of the 
Delegation of Ukraine. 
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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 procedure and methods of customs valuation of  goods crossing the customs border of Ukraine 
are determined by Chapter XI of the Customs Code  of Ukraine and is based on the Agreement on 
Implementation of Article VII of the GATT 1994. 
Customs value of goods is determined by the de clarant (Article 260 of the Customs Code) using 
one of the six methods listed in Articles 267-269, 271-273 of Code, which correspond to the 
methods described in Articles 1-3, 5-7 of Agreement.  According to Article 266 of the Code the main method of determining of the customs value is  the method of the contract price (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 
territory of Ukraine, the prime cost of goods).  If the customs value of goods cannot be 
determined by sequential application of the methods, mentioned in Articles 267-269, 271-272 of Code, it is determined by the additional method.  In accordance with the provisions of Article 273 G/VAL/W/248 
 
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  of Code 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 the basis of the minimum, arbitrary or fictitious values, 
including indicative or reference prices. 
In practice, when customs control is conducted, in particular - the control of determination of 
customs value of goods,- the customs officials use 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 is a software and information complex based on a 
system of evaluation of the probability of legislation infringement, 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.  
e) Article 267 provides that 
"The method of definition of the cust oms value at the price 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 transact ion value (...) provided:" 
Does Ukraine agree that transaction value sha ll be accepted in all cases, except where 
the specific conditions of sub-paragraphs (a)–(d) of paragraph 1 of Article 1 of the 
Customs Valuation Agreement are fulfilled? 
Answer: 
According to the Customs Code of Ukraine, the me thod for definition of the customs value at the 
contract price of imported goods (transaction value) is used in all cases that meet the conditions specified in paragraph 4 of Article 267 of the Code, which corresponds to Article 1 of the 
Agreement.  
However, Article 17 of Agreement stipulates that 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 
total amount actually paid or payable for the imported goods, adjusted in accordance with the provisions of Article 8.  If, after receiving further information, or in the absence of a 
response, the customs administration still has re asonable 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 cannot be determined under the provisions of 
Article 1."  G/VAL/W/248 
 
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  These provisions are reflected adequately in the legislation of Ukraine on customs issues.  
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