G/VAL/W/325  
 
28 March  2019 
(19-1970) Page: 1/2 
Committee on Customs Valuation  Original: English  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE  
CUSTOMS VALUATION AG REEMENT  
NIGERIA  
Questions from Canada to Nigeria regarding document G/VAL/W/322   
The following submission, dated 22 March  2019, is being circulated at the request of the delegation 
of Canada . 
 
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Canada would like to thank Nigeria for its responses in document G/VAL/W/ 322 to questions raised 
by Canada in document G/VAL/W/176 . Please find requests for further clarification  below . 
Question 1:  
As mentioned in Question 1, Article 4 of the Customs Valuation Agreement (CVA) states that: "at 
the request of the importer, the order of application of Articles 5 and 6 shall  be reversed." 
Paragraph  8(2) of Nigeria's Customs and Excise Management Amendmen t Act of 2003  states:  
"On receipt of a request in writing from the buyer under sub -paragraph (1) of this paragraph, 
the Board shall consider the request and shall, if satisfied with the reasons contained in 
the request , accordingly change the sequential or der of valuation, and communicate the 
change in writing to the buyer or this agent not later than seven  days from the date of receipt 
of the request."  
Nigeria's response to Canada does not address Canada's concern because it omits the phrase if 
satisfied w ith the reasons contained in the request , replacing it with an ellipsis. Here is 
Nigeria's response:  
i.  Yes, Paragraph 8 of Nigeria's CEMA has met the requirement of Article 4 of the CVA 
which states that "at the request of the importer, the order of Arti cles 5 and 6 shall be 
reversed". Paragraph 8(2) of CEMA provides as follows; "On receipt of a request in 
writing from the buyer under subparagraph (1) of this paragraph, the Board 
shall…change the sequential order of valuation, and communicate its decision  to the 
buyer…"  
Canada believes that Article 4 of the CVA consists of a mandatory obligation on Customs to reverse 
the order of the methods if so requested by the importer, whereas paragraph 8(2) of Nigeria's 
legislation appears to treat it as a discretion ary provision.  
As a developing country, Nigeria has the right to treat Article 4 of the CVA as a discretionary 
provision, but only if it has made a reservation under paragraph 3 of Annex III of the CVA, which 
reads:  
"Developing countries which consider tha t the reversal of the sequential order at the request 
of the importer provided for in Article 4 of the Agreement may give rise to real difficulties for 
them may wish to make a reservation to Article 4 in the following terms:  G/VAL/W/325  
 
- 2 - 
 
  - "The Government of ... reserv es the right to provide that the relevant provision of 
Article  4 of the Agreement shall apply only when the customs authorities agree to the 
request to reverse the order of Articles 5 and 6."  
If developing countries make such a reservation, the Members sha ll consent to it under Article 21 of 
the Agreement."  
We reiterate that Nigeria would need a reservation from WTO Members, in accordance with 
paragraph 3 of Annex III of the CVA. This reservation would allow Nigeria's customs authorities to 
refuse the reversal of the sequential order if so requested by an importer.  
1.      Article 4 of the CVA places a mandatory obligation on a Member to reverse the order 
of the methods if so requested by the importer. In light of this obligation, can Nigeria 
explain it s rationale for Paragraph 8(2) of its Customs and Excise Management 
Amendment Act of 2003  which permits Customs to deny a request from the importer 
to reverse the order of Articles 5 and 6, if it is not satisfied with the reasons provided 
by the importer?  
2.      Will Nigeria make a reservation, in accordance with paragraph 3 of Annex III of the 
CVA, to allow its customs authorities to deny the request of an importer to reverse 
the order of Articles 5 and 6, in order to bring Paragraph 8(2) of its Customs a nd 
Excise Management Amendment Act of 2003  into compliance with its obligations 
under the CVA?  
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