G/VAL/W/290  
 
26 April 2016  
(16-2319)  Page: 1/2  
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 
COLOMBIA  
Questions from Canada and Honduras 
The following communication, dated 25 April 2016, is being circulated at the request of the 
delegations of Canada and Honduras. 
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- Reference Prices: 
Question 1 
Canada and Honduras are concerned about Colombia's use of reference prices to 
establish customs value.  This practice is referenced in several of Colombia's legal 
instruments, including Decision No. 571, Resolutions No. 1456 and No. 1684 (Andean 
Community Legislation) and Mini stry of Finance Decree No. 111 (Colombian Legislation).  
We are concerned about the lack of tran sparency and potential inconsistency of 
Colombia's customs practices with the Cust oms Valuation Agreement (CVA).  We have 
found provisions related to reference pricin g in Articles 2(k), 48.1, 48.3 (b) and 55 of 
Decision No. 571 (Annex 1) of the Commission of the Andean Community.  Articles 5, 6, 
7, 9, 12, 13 and 17 of Resolution No. 1456 (Annex 5) of the Commission of the Andean Community also provide evidence that Colomb ian customs authorities resort to the use 
of "reference prices" to determine a cust oms value for "special customs valuation 
cases".  We note that the CVA does not pe rmit the use of minimum, arbitrary, or 
fictitious values to determine custom valu e s .   E a c h  W T O  M e m b e r  m u s t  c o n s i d e r  i t s  
obligations under the CVA if it uses reference pricing, which is only permitted as a risk 
management tool.  The CVA's General Intr oductory Commentary states that customs 
valuation is to be a "fair, uniform and ne utral system for the valuation of goods for 
customs purposes that precludes the use of ar bitrary or fictitious customs values" and 
that "the basis for valuation of goods for customs purposes should, to the greatest extent possible, be the transaction value of  the goods being valued" as well as that 
"customs value should be based on simple  and equitable criteria consistent with 
commercial practices and that valuation proc edures should be of general application 
without distinction between sources of supply".  
(a) How does Colombia use reference prices to determine customs value?  
(b) Could Colombia explain how such practi ces are consistent with the methods of 
customs valuation established by the CVA? G/VAL/W/290 
 
- 2 - 
 
  - Data Banks 
Question 2 
We understand that Colombia records its re ference prices in "data banks", which are 
repositories of price informat ion.  The World Customs Organization's Guidelines on the 
Development and use of a National Valuation Database as a Risk Assessment Tool state 
that the use of database information is pe rmitted for risk management purposes only, 
but is not permitted to be used as a substitu te for the declared value for imported goods 
or to set minimum prices for customs valuation as outlined in the CVA.  It is not also to 
be used as a substitute for other techniques, such as post importation audit, to assess the truth or accuracy of a declared value.  The use of such "data banks" is referenced in Article 25 of Decision No. 571 of the Commission of the Andean Community, as well as in 
Articles 237 and 475 of Ministry  of Finance Decree No. 111. 
(a) How does Colombia use references prices "data banks"? (b) Could Colombia explain how such practi ces, which involve the use of a reference 
price to determine the customs value of im ported goods, are consistent with the 
requirements of the CVA and the WCO Guidelines? 
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