G/VAL/W/310  
 
23 April 2018 
(18-2536) Page: 1/2 
Committee on Customs Valuation  Original: English  
 
NOTIFICATION UNDER A RTICLE 22 OF THE AGR EEMENT ON IMPLEMENTA TION OF 
ARTICLE VII OF THE G ENERAL AGREEMENT ON TARIFFS AND TRADE 19 94 
KINGDOM OF BAHRAIN  
Questions from the United States to the Kingdom of Bahrain  
regarding document G/VAL/W/ 308 
The following submission, dated 19 April 2018, is being circulated at the request of the Delegation 
of the United States . 
 
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Follow up questions from the United States in regards to Bahrain 's responses contained in 
document G/VAL/W/308 to q uestions raised in document G/VAL/W/223 . 
1. In response to Question 1 of G/VAL/W/223, Bahrain indicated that "[j]oining the [CVA] and 
publishing it in the official Gazette and its application is now considered to be a law in 
Bahrain. " However, this respons e does not identify a particular provision in Bahrain 's law 
that reflects the requirements of Article 12 of the WTO Customs Valuation Agreement (CVA). 
Could Bahrain please identify the specific provision in its law that implements Article 12 of 
the CVA?  
2. In response to Question 2 of G/VAL/W/223, Bahrain noted that the Common Customs Law 
(CCL) definitions apply when the CCL is being applied and the Rules of Implementation 
(ROI) definitions apply when the ROI are being applied. However, it remains unclear w hy 
certain terms, such as "price actually paid or payable ", have different definitions in the CCL 
and the ROI. Could Bahrain please explain how it reconciles these differing definitions?  
3. In response to Question 10 of G/VAL/W/223, Bahrain noted that the price actually paid or 
payable is the total amount paid or payable by the buyer to the seller, in accordance with 
the Interpretative Note to Article 1 of the CVA. However, the Interpretive Note to Article 1 of 
the CVA does not refer to payments made "under  his knowledge. " Could Bahrain please 
explain the meaning of the phrase "under his knowledge " as used in clause II.1 of 
Article  1(1) of the ROI?  
4. In response to Question 12 of G/VAL/W/223, Bahrain noted that "[t]he meaning of ‘unit 
price in greatest aggregate quantity ' is in accordance with the explanatory notes of th e 
Customs Valuation Agreement… ". However, while the ROI provides a definition of "unit price 
in the greatest aggregate quantity, " the definition in Article 2 of the CCL refers to the "unit 
price at the greatest total quantity. "  Could Bahrain explain the meaning of "unit price at the 
greatest total quantity, " as used in the CCL, and how to reconcile that definition with the 
definition in clause II.8 of Article  1(1) of the ROI?  
5. The respo nse provided to Question 14 of G/VAL/W/223 is unclear. Could Bahrain please 
identify a provision in the CCL or ROI that clarifies that the transaction value should not be 
disregarded merely because the buyer and the seller are related?  G/VAL/W/310  
 
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  6. In response to Qu estion 15 of G/VAL/W/223, Bahrain notes that there is "no difference 
between the buyer and the importer. " However, the response does not provide a citation to 
the CCL or ROI in support. As such, it remains unclear how clause IV.B.1 of Article 1(1) of 
the R OI, which refers to the "importer, " relates to Article 8.1(a) of the CVA, which refers to 
the "buyer. " Could Bahrain please explain how clause IV.B.1 implements the CVA?  
7. The response provided to Question 16 of G/VAL/W/223 is not clear. Could Bahrain ple ase 
clarify whether Bahrain interprets clause IV.C.1.f of Article 1(1) of the ROI to apply to 
activities undertaken by the buyer to the extent that there is not an adjustment to the price 
actually paid or payable in Article 8 of the CVA?  
8. The response pr ovided to Question 17 of G/VAL/W/223 is not clear. Could Bahrain please 
elaborate on clauses IV.C.2, 3, and 4 of Article 1(1) of the ROI, as well as the Interpretative 
Note to IV.C.2 in the Interpretative Annex and how it is interpreted with clause IV.C.2.  
9. The response provided to Question 18 of G/VAL/W/223 is not clear. Could Bahrain please 
identify the authority under which adjustments are made to the transaction value of 
identical or similar merchandise, and indicate whether such adjustments would be made to 
the transaction value of identical or similar merchandise pursuant to clause V?  
10. In response to Question 20 of G/VAL/W/223, Bahrain cited "Clause (b) of paragraph (1) of 
Article 79 of the (ROI) " and indicated that it is the same as paragraph 1(b ) of Article 6 of the 
CVA. Although clause VII.1.b. is similar to paragraph 1(b) of the CVA, we were unable to 
find the cited ROI Article (79). We also note that clause VII.1.b does not expressly require 
the importing country to use the producer 's figures unless they are inconsistent with those 
usually reflected in sales of the same class or kind of goods. Could Bahrain explain if 
paragraph 4 of the Interpretative Note to Article 6 of the CVA is implemented in Bahrain 's 
customs laws, and, if so, identify un der which provision?  
11. The response provided to Question 23 of G/VAL/W/223 is unclear. Paragraph 2 of the Note 
to Article 8.1(b)(ii) of the CVA states that "if the importer acquires the element from a seller 
not related to the importer at a given cost, t he value of the element is that cost. " 
Could  Bahrain explain how clause IV.B.1.iv.b.2, which requires that a tool, die, mould, or 
similar item used in the production of a good be valued at the cost of production if acquired 
from an unrelated seller, can be  reconciled with Note 2?  
12. The response provided to Question 26 of G/VAL/W/223 states that the question is not clear.   
In the context of the valuation of merchandise under Art icles 2 and 3 of the CVA 
(i.e., transaction value of identical merchandise and transaction value of similar 
merchandise), Bahrain 's Interpretative Annex states that "if … more than one transaction 
value … is found, which were sold at the same commercial level, in the same quantity and in 
the same sale circumstances  … then the lowest of such values shall be used. " Could Bahrain 
clarify how it applies the "same sale circumstances " language?  
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