RESTRICTED  
  
G/VAL/M/55  
 
29 July 2013  
(13-4037)  Page: 1/16  
Committee on Customs Valuation    
 
MINUTES OF THE MEETING OF 15 MAY 2013 
CHAIRPERSON:  MS IRENA BANASZYNSKA (POLAND) 
 The agenda proposed for the meeting, circulated in WTO/AIR/4121, was adopted as follows: 
 
1   REPORT OF THE WORK OF TH E TECHNICAL COMMITTEE ON CUSTOMS 
VALUATION ...................................................................................................................... 2  
2   INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE 
AGREEMENT .....................................................................................................................  2 
-  Notification of nati onal legislation ............................................................................... 2  
A. Kingdom of Bahrain .................................................................................................. 3  
B. Belize ..................................................................................................................... 3  
C. Cambodia ............................................................................................................... 4  
D. Cape Verde ............................................................................................................. 4  
E. China ..................................................................................................................... 4  
F. Costa Rica ............................................................................................................... 5  
G. Ecuador .................................................................................................................. 5  
H. Macao, China ........................................................................................................... 5  
I. Mali ........................................................................................................................ 6  
J. Nicaragu a ............................................................................................................... 6  
K. Nigeria ................................................................................................................... 6  
L. Russian Fede ration ................................................................................................... 7  
M. Rwanda .................................................................................................................. 7  
N. Saint Vincent and th e Grenadines ............................................................................... 8  
O. Tunisia ................................................................................................................... 8  
P. Uruguay .................................................................................................................. 8  
Q. Ukraine ................................................................................................................... 8  
3   INFORMATION ON THE APPLICATIO N OF DECISIONS OF THE COMMITTEE ON 
CUSTOMS VALUATION ...................................................................................................... 9  
4   TECHNICAL ASSISTANCE ............................................................................................. 9  
-  Information on Technical Assistance ............................................................................ 9  
-  Article 20.3 Technical Assistance and Trade-Related Technical Assistance ........................ 10 
5   UNITED STATES - ARMENIA'S RE FERENCE PRICE SYSTEM IN CONNECTION 
WITH THE VALUATION OF GOODS (G/VAL /W/213) ...................................................... 10  
6   PARAGRAPH 12 OF THE DOHA MINISTERIAL DECLARATION 
(WT/MIN(01)/DEC/1):  IMPLEMEN TATION-RELATED ISSUES ....................................... 10  G/VAL/M/55 
 
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  -  Paragraph 8.3 of document WT/MIN/(01)/17 ............................................................... 10 
7   PRESHIPMENT INSPECTI ON ...................................................................................... 11  
-  Status of notifications by Members and information provided by IFIA .............................. 11 
-  Question from the United States to Indonesia .............................................................. 12 
8   OTHER BU SINESS ...................................................................................................... 12  
-  Date of the next meeting .......................................................................................... 12 
-  Letter from the Internatio nal Chamber of  Commerce .................................................... 12 
9   ELECTION OF  OFFICERS ............................................................................................ 13  
ANNEX 1 ....................................................................................................................... . 14 
 
_______________ 
 
1  REPORT OF THE WORK OF THE TECH NICAL COMMITTEE ON CUSTOMS VALUATION 
1.1 The representative of the World Customs Organization (WCO), Mr Leonardo Macedo, 
reported on the activities of the Technical Committee at its 36th session, which was held on 
15-19 April 2013.  His report is contained in Annex 1. 
1.2  The Chairperson thanked Mr Macedo for his report and noted that a communication had 
been received from the Technical Committee concerni ng the interpretation of Article 8.1(b)(iv) of 
the Spanish version of the Agreement, which had been circulated in document G/VAL/W/225.  A second communication concerning the Decision on the "Valuation of carrier media bearing software for data processing equipment" would be  circulated as soon as  it had been received. 
1.3 The representative of Uruguay noted that his country supported the modification of the 
Spanish version of the Agreement based on the differ ences detected in Article 8.1(b)(iv).  In this 
sense we would appreciate if the Committee could approve this modification in order to allow for 
coherence in the interpretation of the provision.   Uruguay also supported the modification of 
Decision 4.1 on the valuation of the importation of valuation of carrier media bearing software for computers on the basis of the concerns that had been raised to date. 
1.4 The representative of the United States asked about the status of the letter concerning the 
Decision on the valuation of carrier media bearing software for data processing equipment and the 
framework in which it would be submitted to the Committee.  The United States was interested in that letter and would be talking to other Members about it. 
1.5 The representative of the World Customs Or ganization indicated that the letter was ready 
but they were awaiting to collect the signatur e by the Chairman of the Technical Committee. 
1.6 The Committee took note of the report and of statements made. 
2  INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE AGREEMENT - Notification of national legislation  2.1 The Chairperson recalled that Article 22 of the Agreement on Customs Valuation (hereafter, 
the Agreement) and the Decision on "Notification and circulation of national legislation in 
accordance with Article 22 of the Agreement", requ ired each Member to notify:  1) the complete 
text of their national legislation on customs valuation in one of the three official WTO languages; 2) any change in its laws and regulations which were relevant to the Agreement; and 3) any 
change in the administration of such laws and regulations.  She also reminded Members that the 
notification procedures had been adopted by the Committee at its meeting of 12 May 1995 (G/VAL/5, section B.2).   
2.2 The Chairperson recalled that the examinatio n of the notification of legislation by the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu remained suspended since the G/VAL/M/55 
 
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  Committee's meeting on 4-5 November 2002 pending resolution of the difference of views 
between the parties involved in notifications across the WTO. 
2.3 The representative of the United States was concerned by the fact that some of the 
notifications had only been circulated in the national language of the party submitting them.  
He considered that it would be extremely helpful that these pieces of legislation were translated 
into English, as well as into French in the case of the notifications in Spanish.  He would also be raising this issue under each of the relevant agenda items. 
2.4 The representative of the European Union su pported the request by the United States and 
requested that notifications were translated at least into English and French. 
2.5 The representative of Canada supported th e interventions by the United States and the 
European Union, and noted that the lack of an English translation was preventing its authorities 
from undertaking a substantive review.  For this reason, he considered it important that the 
notifications be translated into all official languages. 
2.6 The representative of El Salvador noted that the official language of her country was Spanish 
and that her capital was confronted with the same situation when notifications were submitted in 
English or French.   
2.7 The Chairperson proposed that the Committee take note of statements made and noted that 
the Secretariat would be requested to translate all notifications into the other official languages.  
She proposed to take up the legislations in the order set out in the agenda.   
A. Kingdom of Bahrain 2.8 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of national legislation and responses to the checklist of issues which had been circulated in 
G/VAL/N/1/BHR/1 and G/VAL/N/2/B HR/1, respectively.  The United States had submitted 
questions in G/VAL/W/181, to which Bahrain had replied in G/VAL/W/191.  The United States had 
submitted follow-up questions in G/VAL/W/201, which had been replied by Bahrain in 
G/VAL/W/217.  In addition, Bahrain had notified a copy of the "Common Customs Law of the Gulf Co-operation Council", which had been circulated  in G/VAL/N/1/BHR/2.  A new set of follow-up 
questions had been submitted by the United States in G/VAL/W/223.  
2.9 The representative of the United States th anked Bahrain for the responses that had been 
previously provided and for the notification of  the 2008 Gulf Customs Cooperation (GCC) Customs 
Code.  Based on that new information, his de legation had submitted follow-up questions in 
document G/VAL/W/223.  His delegation looked forward to receiving Bahrain's written answers to 
these new questions. 
2.10 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
B. Belize 2.11 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of national legislation and responses to the checklist of issues, which had been circulated in 
G/VAL/N/1/BLZ/1 and G/VAL/N/2/BLZ/1, respecti vely.  Canada and the United States had 
submitted questions in G/VAL/W/176 and G/VAL/W/175, to which Belize had replied in G/VAL/W/183.  The United States had submitted a new set of follow-up questions in 
G/VAL/W/188.   
2.12 The representative of the United States recalled that his delegation had sought further 
clarifications on two points that had been highli ghted in document G/VAL/W/188.  Specifically, his 
delegation had requested information on whether Belize had fully incorporated aspects of the WTO 
Customs Valuation Agreement into its legislation, including Article 16 which provides importers with the right to a written explanation, as well as the interpretative notes of the Agreement.  
His delegation remained interested in receiv ing a written response to those questions. G/VAL/M/55 
 
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  2.13 The representative of the Canada recalle d his delegation's general position that the 
interpretative notes were extensions of the ob ligations included in the Agreement and should, 
therefore, be reflected in each Member's legal framework.  For this reason, his delegation looked forward to the responses to be provided by Belize.   
2.14 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
C. Cambodia 
2.15 The Chairperson recalled that it was agreed at the last meeting to revert to the examination of 
national legislation and responses to the checklist of issues which had been circulated in 
G/VAL/N/1/KHM/1 and G/VAL/N/2/KHM/1, respectively.  The United States had submitted questions in G/VAL/W/193, to which Cambodia had replied in G/VAL/W/195.  The United States had submitted 
follow-up questions in G/VAL/W/201, to which Cambodia had replied in G/VAL/W/209.  Additional 
follow-up questions had been submitted by the United States in document G/VAL/W/216, which had been answered by Cambodia in document G/VAL/W/222.   
2.16 The representative of the United States was grateful for the written responses that had been 
provided in G/VAL/W/222 and commended Cambodia on the comprehensive quality of their 
responses.  The United States did not have further questions and could agree to conclude this 
review. 
2.17 The representative of the European Union than ked Cambodia for the written responses that 
had been provided to the United States, but indi cated that her delegation would be submitting 
additional requests for clarification, in particular with respect to the replies to questions 4 and 6.  
For example, her delegation considered that the response to question 6 led to new issues.  For this 
reason, she requested to revert back to this notification at a later stage.   
2.18 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
D. Cape Verde 2.19 The Chairperson recalled that it was agreed at the last meeting to revert to the examination of 
national legislation which had been circulated in G/VAL/N/1/CPV/1.  The United States had submitted 
questions in G/VAL/W/224. 
2.20 The representative of the United States noted that, in reviewing Cape Verde's notification, his 
delegation had a number of technical questions that had been circulated in G/VAL/W/224.  
His delegation looked forward to receiving written responses. 
2.21 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
E. China 
2.22 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of national legislation which had been circulated in G/VAL/N/1/CHN/5.  This notification contained 
Decree of the Customs General Administration of the People’s Republic of China No. 148 of 2006, 
with "Rules regarding Determination on Customs Value of Imported and exported Goods."  The United States had submitted questions in G/VAL/W/168 and G/VAL/W/168/Corr.1, to which China had replied in document G/VAL/W/184.  The United States had submitted follow-up 
questions in G/VAL/W/192, to which China had replied in G/VAL/W/198.  The United States had 
subsequently submitted a new set of follow-up questions in G/VAL/W/205. 
2.23 The representative of the United States recalled that his delegation had submitted questions 
to China in October 2011 seeking clarification of two aspects of China's customs valuation 
practices.  These questions had been circulated in G/VAL/W/205 and his delegation looked forward to receiving written responses to these questions. G/VAL/M/55 
 
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  2.24 The representative of the Canada noted that his delegation was also very interested in 
receiving the replies to the questions raised by the United States, as the two of them appeared to 
deal with the use of reference pricing and the inclusion of the interpretative notes in China's legislation.  He recalled that Canada felt very strongly about both issues.   
2.25 The representative of the European Union su pported the interventions by the United States 
and Canada, and noted that her delegation looked forward to receiving the responses to the questions by the United States.  The European Union had the same concerns regarding the use of 
minimum prices and the lack of inclusion of the interpretative notes. 
2.26 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
F. Costa Rica 
2.27 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of changes of legislation which had been circulated in G/VAL/N/1/CRI/2.  The United States had 
submitted questions in G/VAL/W/211. 
2.28 The representative of the United States recalled that his delegation had submitted questions 
which circulated in November 2011 in document G/VAL/W/211.  His delegation had requested 
additional information regarding Costa Rica's use of a customs valuation database and looked 
forward to receiving Costa Rica's written response to these questions. 
2.29 The representative of Costa Rica thanked th e United States for the questions that had been 
raised and noted that her capital was still working in the preparation of responses, which would be 
submitted as soon as possible.   
2.30 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
G. Ecuador 
2.31 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of responses to the checklist of issues which had been circulated in G/VAL/N/2/ECU/1.  The United 
States had submitted questions in G/VAL/W/220.  In response, Ecuador had notified a compilation 
of changes to its national legislation in G/VAL/N/1/ECU/3, as well as replies to the US questions 
which had not been processed in time for the meeting. 
2.32 The representative of the United States th anked Ecuador for the submission of its customs 
valuation legislation and other documents that had been circulated in G/VAL/N/1/ECU/3.  
His delegation believed that a number of the qu estions that had been posed in G/VAL/W/220 had 
been addressed in that submission.  However, the United States would like to undertake a meaningful review and study of the legislation, es pecially in light of the questions that had been 
posed.  In order to do so, his delegation required  that the documents be translated into English. 
2.33 The representative of the European Union re quested that the Secretariat translated all the 
documents that had been notified by Ecuador. 
2.34 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
H. Macao, China 2.35 The Chairperson drew Members' attention to Macao, China's notification of changes in its 
national legislation and responses to the checklist of issues which had been circulated in in 
G/VAL/N/1/MAC/2 and G/VAL/N /2/MAC/1, respectively. 
2.36 The representative of the United States thanked Macao, China for its notification. 
His delegation would like to call Macao, China's attention to the recent Trade Policy Review Report 
that had been issued by the Secretariat, which stated that customs valuation was used to facilitate G/VAL/M/55 
 
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  consumption tax collection at the border.  The Report also stated that the Macao's economic 
services used the rules of the Agreement on Customs Valuation when accessing consumption taxes.  His delegation would, therefore, like to  request further clarification on how Macao, China 
reconciled this explanation in the Secretariat's Report with its notification stating that it had 
repealed its customs valuation legislation.  His delegation was still considering and would be 
following-up in writing with further comments or questions, with a view to better understanding this apparent contradiction. 
2.37 The representative of Macao, China thanked the United States for its questions and 
requested that any questions be submitted in writing so it could be sent to capital.  
2.38 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
I. Mali 
2.39 The Chairperson drew Members' attention to Mali's notification of national legislation which 
had been circulated in in G/VAL/N/1/MLI/1. 
2.40 The representative of the United States commended Mali for its implementation of the WTO 
Customs Valuation Agreement and thanked it for the notification of its customs valuation 
legislation. Like with previous notifications, his delegation would be undertaking a meaningful 
review which would require that the documents in G/VAL/N/1/MLI/1 be translated into English.   
2.41 The representative of Canada joined the United States in thanking Mali for its notification.  
However, his delegation was concerned by the possible use of reference prices.  Specifically 
document "l'arrêté No. 09-1030/MEF-SG du 5 mai 2009", clearly mentioned that reference prices 
were minimum values used for establishing the cu stoms value of specific goods contained in the 
annex.  Since the document is dated 5 May 2009, Canada would like to know if this document is still valid.  If that were the case, his delegation would like to know if Mali had been granted an 
extension for the five year delay in the application of the Customs Valuation Agreement.  If not, 
they would then like to know why Mali consider ed this document to be consistent with its 
obligations under the Agreement.  His delegation would be submitting these questions in writing. 
2.42 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
J. Nicaragua 2.43 The Chairperson recalled that it was agreed at the last meeting to revert to the examination 
of responses to the checklist of issues which had been circulated in G/VAL/N/1/NIC/1 and 
G/VAL/N/2/NIC/1, respectively. 
2.44 The representative of the United States thanked Nicaragua for its notification and responses 
to the checklist of issues.  His delegation noted that the Secretariat had translated the checklist of 
issues in all official WTO languages, but not the customs valuation legislation.  Therefore, his delegation requested the Secretariat to translate it into English, with a view to undertaking a 
meaningful review.  Once the translation was ready, his delegation would follow-up in writing. 
2.45 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
K. Nigeria 
2.46 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of national legislation and responses to the checklist of issues which had been circulated in 
G/VAL/N/1/NGA/1 and G/VAL/N/2/NGA/1, respecti vely.  The United States and Canada had 
submitted questions in documents G/VAL/W/175 and G/VAL/W/176, respectively.   G/VAL/M/55 
 
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  2.47 The representative of the United States noted that his delegation continued to be interested in 
receiving answers to the questions that had be en put forward to Nigeria in G/VAL/W/175, and 
requested that the Committee retained the agenda item. 
2.48 The representative of the European Union invited Nigeria to provide replies to the questions 
that had been raised in past meetings.   2.49 The representative of Canada noted that his delegation also remained interested in the replies 
to the questions that had been raised, and supported retaining the item in the agenda until those 
answers had been provided.   
2.50 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
L. Russian Federation 
2.51 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of national legislation and responses to the checklist of issues which had been circulated in 
documents G/VAL/N/1/RUS/1 and G/VAL/N/2/RUS/1, respectively. 
2.52 The representative of the United States thanked the Russian Federation for its timely 
notification and noted that his delegation had been unable to locate the Customs Code of the 
Customs Union, which had been referenced as one of the attached documents in 
G/VAL/N/1/RUS/1.  He was not sure whether this had been an oversight.  This document was an 
important piece of legislation that had been refe renced numerous times in the checklist of issues 
and the Russian Federation's "Federal Law on Customs Regulations".  For this reason, his 
delegation requested the Russian Federation to circulate this document to the Committee.  
In addition, he noted that industry representatives had raised concerns about the use of reference 
pricing lists for customs valuation purposes.  Given this situation, the United States requested to 
revert back to this item at the next meeting. 
2.53 The representative of the European Union also thanked the Russian Federation for its timely 
notification.  Her delegation appreciated, in particular, the fact that both the legislation of the 
Customs Union and the relevant Federal law had b een notified.  In view of the volume and the 
details of these legal instruments, the European Union was still in the process of trying to 
understand the relationship between them.  In particular, they wanted to understand the 
relationship between the Customs Code of the Customs Union and the "Federal Law on Customs 
Regulations".  The European Union would appreciate  if Russia could provide a general overview, or 
even make a presentation for the benefit of Members.  Her delegation would be providing 
comments and questions in due time, at a second stage.   
2.54 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
M. Rwanda 2.55 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of national legislation and responses to the checklist of issues which had been circulated in 
G/VAL/N/1/RWA/1 and G/VAL/N/2/RWA/1, respecti vely.  The United States had submitted 
questions in G/VAL/W/215.   
2.56 The representative of the United States welcomed again Rwanda's notification of national 
legislation and responses to the checklist of issues .  In reviewing the notifications, his delegation 
had identified a couple of areas where they would a ppreciate additional clarification, with a view to 
understanding how Rwanda had implemented the WT O Customs Valuation Agreement.  The United 
States had submitted questions in writing, in do cument G/VAL/W/215, and they looked forward to 
reviewing Rwanda's written response. 
2.57 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. G/VAL/M/55 
 
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  N. Saint Vincent and the Grenadines 
2.58 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
national legislation and responses to the checklist of issues which had been circulated in 
G/VAL/N/1/VCT/1 and G/VAL/N/2/VCT /1, respectively.  The United States had submitted questions 
in G/VAL/W/181. 
2.59 The representative of the United States recalled that, although the representative of 
St. Vincent and the Grenadines had responded verbally to some the questions during the 
May 2010 meeting, his delegation would like reiterate the need to formally circulate written 
responses to each of the questions contained in G/VAL/W/181.  Additionally, during the May 2010 
meeting, the representative of St. Vincent and the Grenadines had mentioned that draft 
harmonised legislation was being examined by its Government, which was to be implemented by 
July 2010.  The United States would appreciate an update regarding the status of this legislation. 
2.60 The Committee took note of the statement made  and agreed to revert to this matter at its 
next meeting. 
O. Tunisia 
2.61 The Chairperson recalled that it was agreed at  the last meeting to revert to the examination 
of national legislation which had been circulated in G/VAL/N/1/TUN/2/Rev.1.  The United States 
had raised questions in G/VAL/W/188, to which Tunisia had replied in G/VAL/W/202.  
The United States had submitted follow-up questions in G/VAL/W/206.  
2.62 The representative of the United States recalled that his delegation looked forward to 
receiving written responses to the questions that had been submitted in G/VAL/W/206 in 
October 2011. 
2.63 The representative of Tunisia thanked the United States for the follow-up questions and their 
interest in Tunisia's legislation.  He had just received the responses to the questions and would 
send them to the Secretariat for circulation. 
2.64 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
P. Uruguay 
2.65 The Chairperson drew Members' attention to Ur uguay's notification of changes to its national 
legislation which had been circulated in G/VAL/N/1/URY/2. 
2.66 The representative of the United States thanked Uruguay for its notification.  Like in 
previous cases, he requested that the notified documents be translated into English, so his capital 
could review them.  They would then submit written questions or comments, as appropriate. 
2.67 The representatives of the European Union and Canada supported the request to translate 
the documents. 
2.68 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
Q. Ukraine 
2.69 The Chairperson recalled that it was agreed at the last meeting to revert to the examination of 
the national legislation and responses to the checklist of issues which had been circulated in 
G/VAL/N/1/UKR/1 and G/VAL/N/2/UKR/1, respectively.  The European Union had submitted 
questions in G/VAL/W/179, to which Ukraine had answered in G/VAL/W/182.  Questions had also 
been submitted by Norway in G/VAL/W/199 and by the United States in G/VAL/W/188 and G/VAL/W/207.  Ukraine had provided responses to  these questions in G/VAL/W/182, G/VAL/W/200 
and G/VAL/W/212.  Ukraine had subsequently notified new amendments to its Custom Code, which G/VAL/M/55 
 
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  had been circulated in G/VAL/N/1/UKR/2.   A new set of questions had been submitted by the 
United States in document G/VAL/W/221.  
2.70 The representative of United States thanked Ukraine its notification of amendments to its 
customs valuation legislation, and noted that his delegation had submitted follow-up questions.  
His delegation looked forward to Ukraine's written responses and to a continued co-operation with 
Ukraine on this matter. 
2.71 The representative of the European Union indicated that her delegation had the same 
questions as those that had been identified by the United States in document G/VAL/W/221, so 
her delegation also looked forward to receiving responses to them. 
2.72 The representative of Ukraine thanked the United States and the European Union for their 
questions.  In view of the on-going reorganisa tion of Ukraine's State Customs Service, and the 
technical issues surrounding the issue, it had been necessary to take a longer time to study the 
questions and prepare the answers.  However, he expected to receive a response from capital in 
the near future, which he would then transmit immediately. 
2.73 The Committee took note of statements made an d agreed to revert to this matter at its next 
meeting. 
2.74 Before concluding the discussion under this agenda item, the Chairperson drew Members' 
attention to the fact that 42 of the 159 WTO Members still needed to notify their national 
legislation and 68 Members had not provided responses to the checklist of issues.  In addition, it appeared, from interventions that had been made at previous meetings, that many Members had not notified changes introduced to their national legislations since they first made a notification.   
2.75 The Committee took note of this information. 
2.76 The Committee switched to informal mode fo r a presentation by the WTO Secretariat on the 
status of notifications. 
3  INFORMATION ON THE APPLICATION OF DECISIONS OF THE COMMITTEE ON 
CUSTOMS VALUATION 
3.1 The Chairperson recalled that, under this agenda item, the Committee examined notifications 
pursuant to two Decisions that had been adopted by the Committee at its meetings of 12 May 1995.  
These were the Decision on the "Treatment of Interest Charges in the Customs Value of Imported Goods” and the Decision on “Valuation of Carrier Media Bearing Software for Data Processing Equipment".  A summary report of the notification s received had been prepared by the Secretariat 
and circulated in G/VAL/W/5/Rev.22.  Since the last meeting, notifications had been received from 
Macao, China in document G/VAL/N/3/MAC/1, and from Uruguay in documents G/VAL/N/3/URY/1 and G/VAL/N/3/URY/2. 
3.2 The Committee took note of this information. 
4  TECHNICAL ASSISTANCE 
- Information on Technical Assistance 
4.1 The Chairperson recalled that, as reflected in section B.4 of document G/VAL/5, the 
Committee had agreed that greater transparency of technical assistance activities would be ensured 
if information documents prepared for the Technical Committee on Customs Valuation were also circulated as WTO documents.  For this reason, the WCO Secretariat periodically provided 
information of the technical assistance activities carried out under the auspices of the WCO.  
Document G/VAL/8/Add.28 contained the most recent information that had been compiled by the Technical Committee on Customs Valuation concerning technical assistance activities carried out by 
Members, as well as by the WCO Secretariat. 
4.2 The Committee took note of this information. G/VAL/M/55 
 
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  - Article 20.3 Technical Assistance an d Trade-Related Tec hnical Assistance 
4.3 The Chairperson recalled that the Committee's work programme on technical assistance for 
capacity-building concerning the implementation  and administration of the Agreement was now 
incorporated in the overall technical assistance  p r o g r a m m e  o f  t h e  W T O .   T h e  W T O  w a s  i n  t h e  
process of implementing the 2012-2013 biennial TA  plan, which foresaw regional activities on 
"Market Access Issues", which included customs valuation as one of the areas covered in that training.  A regional activity for English Speaking  Africa had been postponed in 2012, but delivered 
at the beginning of March 2013 in Pretoria, South Africa.  An additional regional activity for Central 
and Eastern Europe, as well as Central Asia had taken place in February in Austria.  Two additional regional activities were envisaged to take place in May for Middle East countries, and another one for Caribbean countries in June.  The chairperso n  a l s o  r e m i n d e d  M e m b e r s '  t h a t  r e q u e s t s  f o r  
technical assistance could be made at any time, which would be met by a national activity designed 
to meet the needs of the recipient. Two of such national activities had had taken place in 2013 in Costa Rica and Ukraine, and four additional activities had been planned for Iran, Brunei Darussalam, 
Togo and Tajikistan.  The latter three were going to be delivered jointly by the WTO and WCO 
Secretariats. 
4.4 The Committee took note of this information. 
5  UNITED STATES - ARMENIA'S REFERENCE PRICE SYSTEM IN CONNECTION WITH THE 
VALUATION OF GOODS (G/VAL/W/213)  
5.1 The Chairperson recalled that it was agreed at the last meeting to revert to this issue.  
In 2003, Armenia had notified its national legislation and responses to the checklist of issues in 
G/VAL/N/1/ARM/1 and G/VAL/N/2/A RM/1, respectively.  The Committee had concluded its review 
of these notifications at its meeting of 18 October 2005.  Subsequently, the United States had posed new questions to Armenia, which had been circulated in G/VAL/W/208, which had been 
answered by Armenia in G/VAL/W/213.  Canada had submitted questions in G/VAL/W/214. 
5.2 The representative of the United States stated that his delegation appreciated Armenia's past 
statements regarding reference or control prices, but they continued to have concerns in this 
respect.  For this reason, the United States re mained interested in Armenia's responses to the 
questions that had been put forth by Canada in document G/VAL/W/214. 
5.3 The representative of Canada continued to share the concerns that had been raised by the 
United States with respect to the possible use of reference prices, and he looked forward to 
receiving replies to Canada's written questions as soon as possible. 
5.4 The Committee took note of statements made and agreed to revert to this matter at its next 
meeting. 
6  PARAGRAPH 12 OF THE DOHA MINISTERIAL DECLARATION (WT/MIN(01)/DEC/1):  
IMPLEMENTATION-RELATED ISSUES 
-  Paragraph 8.3 of document WT/MIN/(01)/17  
6.1 The Chairperson recalled that, at its meeting in December 2002, the General Council had 
authorized the Committee to continue its work under the existing mandate in paragraph 8.3 of the 
Decision on Implementation-Related Issues and Concerns, and to report back to the General 
Council once its work had been completed.  Under this item, India had argued that "in recognising 
the legitimate concerns of importing Members on th e accuracy of the declared value" Ministers had 
directed this Committee to identify and assess practical means to address such concerns, including through the exchange of information on export valu es.  India considered that this was a separate 
mandate that should be addressed by the Committ ee.  However, other Members were of the view 
that the Negotiating Group on Trade Facilitation was the appropriate venue to continue those discussions, in particular because it was examining proposals that contained elements that were 
very similar to those contained in India's proposal.   
6.2 The representative of India reiterated the position that his delegation has held on this issue 
for quite some time now.  The Negotiations on Trade Facilitation emanate from a different G/VAL/M/55 
 
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  mandate, ant their context is different from implementation-related issues that had to be 
discussed in this Committee.  He considered that importing Members had legitimate concerns about the accuracy of the declared values, an d Ministers had given the Committee a clear-cut 
mandate to identify and address such concerns.  He also noted that, although the negotiations on 
trade facilitation may overlap, the remit of thos e negotiations was wider and had not yet reached 
any maturity.  For this reason, India did not support dropping of this item from the agenda of this Committee. 
6.3 The representative of the United States reiterated the position of his delegation. 
The United States continued to believe that the negotiations on trade facilitation were the 
appropriate venue to had those discussions and was examining proposals which contained elements very similar to those contained in India's paper.  
6.4 The representative of the European Union noted that the position of her delegation remained 
the same.  They thought that the negotiations on trade facilitation were the appropriate venue to 
pursue those discussions and that there was no  point in keeping the item on the agenda. 
6.5 The representative of Canada supported the views by the United States and the 
European Union that the negotiations on trade facilitation were the most appropriate venue to 
address those issues. 
6.6 The representative of Ecuador pointed out that the issue was being dealt with within the 
negotiations on trade facilitation.  However, the context and the reason for having the point in the 
agenda was entirely different and, therefore, the wa y of tackling it would also differ tremendously.  
On this point, the Committee was discussing abou t implementation of the Agreement on Customs 
Valuation, whereas the Negotiations on Trade Facilitation was a cross-cutting issue with effects on 
other Articles of the Agreement.  His delegation believed that it would be useful to keep this item in the agenda and would even suggest the possib ility of looking at new mechanisms to enable 
Members to work within a different framework to exchange information. 
6.7 The Committee took note of statements made and agreed to revert to this matter at its next 
meeting. 
7  PRESHIPMENT INSPECTION 
7.1 The Chairperson recalled that Preshipment Insp ection was a standing item on the agenda of 
the Committee on Customs Valuation and proposed to discuss two issues separately. The first one 
concerned the status of notifications, as well as information received from the International 
Federation of Inspection Agencies (IFIA), and th e second one related to questions that had been 
posed by the United States to Indonesia.   
-  Status of notifications by Member s and information provided by IFIA 
7.2 On the status of notifications submitted by Members, the Chairperson drew Members' 
attention to the new compilation that had been prep ared by the Secretariat pursuant to Article 5 of 
the Agreement on Preshipment Inspection and circ ulated in G/PSI/N/1/Rev.1.  Since the last 
meeting, new notifications had been received fr om Mali and Lesotho, as had been described in 
G/PSI/N/1/Rev.1/Add.1. 
7.3 The Chairperson also noted that there had been  no change in the report by the International 
Federation of Inspection Agencies (IFIA) concerning countries which had in place preshipment 
inspection services.  The most recent information had been circulated last year in document 
G/VAL/W/63/Rev.15.  
7.4 The representative of the United States indicated that his delegation had reviewed document 
G/PSI/N/1/Rev.1/Add.1 and wanted to thank Mali for notifying its national PSI legislation, which his 
delegation looked forward to review.  
7.5 The Committee took note of the two documents and statements made. G/VAL/M/55 
 
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  -  Question from the United States to Indonesia  
7.6 The Chairperson recalled that it was agreed at the last meeting to revert to this issue.  
The United States had indicated that it had not received responses to the questions that had been 
posed to Indonesia in documents G/VAL/W/167 and G/VAL/W/180.   The representative of Indonesia 
had in the past taken note of th ose questions and stated that th e issue was being considered by 
capital. 
7.7 The representative of the United States noted that, as a general matter, his delegation 
remained concerned by Members' failure to notify their PSI regimes and legislation.  As had been 
mentioned by the Chairman, the United States had hoped to see responses from Indonesia.  
In their March 2013 TPR, Indonesia had stated that it had PSI requirements to "verify the quality, 
quantity and price of customs classification of goods to be exported to Indonesia" which they 
planned to notify to this Committee as soon as possible.  The United States looked forward to 
receiving and reviewing this notification amongst others that remained outstanding. 
7.8 The Committee took note of the statements made, and agreed to revert to this matter at its 
next meeting. 8  OTHER BUSINESS - Date of the next meeting 
8.1 The Chairperson informed Members that the next meeting of the Committee had been 
provisionally scheduled for 27 September 2013. This date was earlier than usual to take account of 
the preparations for the WTO Ministerial Conference that will take place in Bali at the end of 2013.  In preparation for the second annual meeting of the Committee, and to allow the Secretariat 
sufficient time to process the new documentation, the Chairperson asked Members planning to to 
do so no later than 13 September 2013, and at the beginning of September in case Members were to submit copies of their national legislation.   
- Letter from the International Chamber of Commerce 
8.2 The Chairperson recalled that the Internatio nal Chamber of Commerce (ICC) had expressed 
an interest in cooperating with the Committee and in particular, with respect to problems that 
could arise from the eventual misuse of customs valuation databases to set minimum or reference 
prices.  The ICC was also interested in obtainin g observership status in the Committee.  On the 
first issue, the Chairperson informed the Committee that she had written a letter to the Chairman of the Technical Committee requesting factual in formation about the issue.  On the request for 
observership, she reported of an informal consultation that had been held on 30 April 2013.  
Members present at the meeting were of the view  that the rules of procedure only allowed for 
observership of intergovernmental organization an d States and separate customs territories in the 
process of acceding to the WTO, thereby excludin g the ICC from this possibility. However, nothing 
prevented the Committee from inviting ICC represen tatives to a dedicated session or workshop or 
to make presentations on specific issues.   Members had expressed certain degree of flexibility, 
and wished to take a decision on a case-by-case basis.  She understood that Members would be 
ready to further discuss whether to invite the ICC once the Technical Committee had provided a response on the request for factual data concerning the eventual misuse of databases.  
8.3 The representative of Canada thanked the Chairperson for her report and noted that Canada 
shared the concerns expressed by the ICC over the possible misuse of customs valuation databases 
to set reference prices or minimum values.  Before  adopting the GATT valuation code, the Canadian 
national statistics agency would advise customs officials when values fell outside a normal range.  
This tool was used strictly for risk management purposes, to prompt the Canadian customs 
administration to further explore a customs value that fell outside a particular price range, but the goods were never hold as these verifications were undertaken on a post-importation basis.  
Nonetheless, Canada abandoned this tool once it adopted the WTO's Agreement on Customs 
Valuation and, instead, began relying on other risk factors to identify importations that might merit a further look.  Canada is concerned that customs valuation databases may be being used as more than a risk assessment tool and his delegation would be willing to work in whatever format the 
Committee may agree to address the concerns raised by the ICC.  Canada re cognised that there may G/VAL/M/55 
 
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  be problems for this coordination as the ICC is not an observer to the Committee or the WTO.  
However, the ICC had raised legitimate concerns stemming from real experiences of traders dealing with customs administrations, so Canada believed that the Committee would benefit from learning from the ICC's experience.  Therefore, Canada proposed to invite the ICC to come and speak to the 
Committee about their work on this issue, which could be done either in a dedicated session, an 
informal workshop or a seminar.  This presentation could also encourage a broader discussion amongst Members regarding their experiences in implementing the valuation code, particularly as it 
concerns the use of reference prices. 
8.4 The representative of the European Union thanked the Chairperson for her report on the 
consultations and on which she had participated.  Her delegation shared the concerns that had been 
raised by the ICC regarding the misuse of databases to establish minimum or reference prices.  For 
this reason, the European Union was open to any kind of co-operation with the ICC and could 
support Canada's idea to have a dedicated session or on an informal workshop. 
8.5 The representative of Australia thanked the Chairperson for her report on the consultations 
and for having held consultations on the issue.  His delegation welcomed the ICC's focus on the issue 
and agreed with others that it was a very important issue.  He wanted to put on the record that Australia would also be open to inviting the ICC to share their experiences in whatever format the 
Committee found appropriate, including the ones that had been suggested by Canada.  
8.6 The representative of the United States thanked the Chairperson for her report, as well as 
Canada for having raised the issue and making a proposal.  His delegation was open to the 
suggestions that had been made to work with th e ICC and was flexible in terms of the format. 
8.7 The representative of Chinese Taipei took the floor to echo Canada's proposal to have an 
informal workshop or a dedicated discussion on this matter.  He considered that the World Customs 
Organization should also be invited to have a brief introduction about the customs valuation 
database, as he understood that they have undertaken many activities on this issue.  Therefore, he 
considered the WCO was in a good position to help introduce background information.   
8.8 The representative of Mexico noted that the rules of procedure for Ministerial Conferences and 
General Council meetings provided that only inter-governmental organization could quality as 
observers to the WTO.  The ICC did not meet this requirement and his delegation felt that the request could have implications for the rest of the organization -for example, by having new requests could be received from NGOs or other private institutions- so the rules should be followed.  If the 
intention was to exchange information, Mexico believed that the Committee could seek alternative 
means, such as organizing presentations, seminars or workshops. 
8.9 The Chairperson expressed her appreciation for the flexibility that had been shown by 
Members and their readiness to consider alternative ways to cooperate with the ICC.  She recalled 
that these included having a dedicated session, informal workshop or a seminar to discuss the possible misuse of databases to set minimum or reference prices.  She proposed that her successor 
would hold informal consultations to continue the discussion and elaborate on how to proceed.   
9  ELECTION OF OFFICERS 9.1 The Chairperson informed the Committee that the Chairman of the Council for Trade in 
Goods had carried out informal consultations on a slate of names for appointment of Chairpersons 
of standing bodies, in accordance with the estab lished Guidelines for Appointment of Officers.  On 
the basis of consultations, he proposed that the Committee elect Mr Pierre-Emmanuel Brusselmans (Belgium) as Chairperson for 2013.  She, therefore, proposed that the Committee elect 
Mr Brusselmans by acclamation. 
9.2 The Committee elected Mr Pierre-Emmanuel Brusselmans by acclamation. 
9.3 Mr Brusselmans thanked Members for the trus t that had been shown in him and thanked the 
outgoing Chairperson for the work that had been undertaken over the past year.   
9.4 The meeting was adjourned. G/VAL/M/55 
 
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  ANNEX 1 
Report from the WCO TCCV to the WTO CCV 
about the 36th Session held from 15-19 April 2013 
 
1. The Technical Committee on Customs Valuation (TCCV) held its 36th session from 15 to 
19 April 2013 at the WCO Headquarters in Brussels.  The session was chaired by Mr. O. AOUFI (Morocco).  Sixty five (65) Member Customs Administrations, and Observers from the World Trade 
Organization (WTO), the Organization for Economic Co-operation and Development (OECD) , the 
International Chamber of Commerce (ICC), the Common Market for Eastern and Southern Africa (COMESA) and the Latin American brokers Association(ASAPRA) were represented. 
2. Ms Irena Banaszynska, Chairperson of the WTO Committee on Customs Valuation (WTO-
CCV), attended the Session.  According to our re cords it was the first time that the WTO-CCV 
Chairperson attended the session of the TCCV.  Ms. Banaszynska gave her report, which was 
followed by an active session of questions and answers.  Members regarded the participation as 
very positive and expressed a desire for having closer cooperation between the two Committees. 
3. The TCCV took note of the letter sent by th e WTO-CCV regarding the International Chamber 
of Commerce (ICC) concerning the eventual misuse of customs valuation databases to set 
minimum or reference prices.  The answer by [the Chairman of] the TCCV answer will be sent in 
the next weeks. 
4. Following the report, Mr. Roy Santana, from the WTO Secretariat, gave a presentation on 
the status of notifications (CVA, Article 22), and technical assistance activities in the WTO.   
5. On intercessional developments, Mr. Giuseppe Favale, Director of Tariffs and Trade Affairs, 
reported on the technical assistance missions, the work with the Organisation for Economic Cooperation and Development (OECD) on matters of Customs Valuation and Transfer Pricing; the 
WCO fellowship program, and the update of the contact points list. 
Technical questions 
6. The Technical Committee continued its discussions on the following technical questions: 
- A case concerning royalties and licence fees by Brazil 
The TCCV concluded its examination of this case.  An Advisory Opinion (AO) was adopted 
and will be annexed to this report.  It will be submitted for approval both to the WCO CCC in June (CVA, Article 18). 
- A case concerning related party transactions and transfer pricing by the United States 
The Committee agreed to continue the study of this case at its next Session on the basis of 
a simplified text to be prepared by the Secretar iat.  Members were invited to exchange views and 
provide comments during the intersession via the "Club de la réforme" (a virtual platform for 
informal interaction between delegates). 
- A case concerning a consignment of industrial waste by Belarus 
The TCCV expressed, once again, two points of  view concerning the treatment to be applied 
to the additional costs borne by the seller and not invoiced to the importer (CVA, Article 1.2 (a)).  Members decided to improve the text relating to the facts of the transaction and to continue the study of this case at the next session. 
- A case concerning the treatment of distribution fees by Singapore 
The TCCV noted certain inconsistencies in the facts of the transaction which would require 
clarification before a conclusion could be reached. The case would, therefore, be re-examined at 
the next session. G/VAL/M/55 
 
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  - A case concerning treatment of bonus payments by Thailand 
The TCCV agreed in this case that bonuses paid by the importer to independent distributors 
in the direct sales sector should be considered as marketing costs which were not part of the Customs value.  The Technical Committee agreed with Thailand that the matter be placed in 
Part III of the Conspectus of technical valuation questions. 
- A case concerning the valuation of USB flash drives and the application of WTO Decision on 
"Valuation of carrier media bearing software for data processing equipment" by Uruguay 
The TCCV recognized that technical developments in carrier media may require an update of 
the WTO Decision.  It agreed to submit its comments in writing to the WTO-CCV for consideration. 
- A proposed case on the interpretati on of Art. 8.1 b) iv) by Uruguay 
The TCCV agreed that the Tariff and Trade Directorate should write to the Market Access 
Division of the WTO to explain the problem.  The problem relates to the consistency of 
interpretation and application of Article 8.1 (b) (iv) of the Agreement: an anomaly was noted in 
the text of the Agreement in Spanish when compared with the English and French versions. 
New technical questions 
7. Two new technical questions were submitted by Uruguay and Japan and accepted as specific 
technical questions to be examined at the Committee's next session.  The question raised by 
Uruguay concerned "Goods imported after a series of purchases of goods and/or services for 
transformation, processing or repair".  The questi on submitted by Japan related to the "Treatment 
of the fees for unlocking a function of imported goods after importation" (CVA, Articles 1, 8.1(c) 
and 8.1(d)). 
8. Furthermore: 
a. The TCCV approved the proposal put forward by Canada to hold a theme meeting at a future 
session. 
b. Following the elections at the 36th session Mr O. AOUFI from Morocco was re-elected as 
Chairperson of the TCCV and Ms Y. GULIS from the United States and Mr M. RAVINDRAKUMAR from Sri Lanka were elected as Vice-chairs. 
9. The provisional dates for the next session are from 21 to 25 October 2013. 
 
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 G/VAL/M/55 
 
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  ADVISORY OPINION 4.15 
ROYALTIES AND LICENCE FEES UNDER ARTICLE 8.1 (c) OF THE AGREEMENT 
1. Importer I of country S enters into a licence agreement with licensor L established in 
country R under which I is required to pay to L, for the right to use its trademark in connection 
with manufacture and importation of the goods, a royalty consisting of a fixed percentage 
calculated on the net income obtained by I from sales in country S of the products bearing such trademark.  In the event that I fails to pay L the royalty, L will have the right to terminate the 
licence agreement.  L and I are related under the terms of the Valuation Agreement. 
 Additionally, L has signed a supply agreement with company M of country X in order for M to 
manufacture the goods bearing its trademark and then  to sell them to I.  Under this agreement, M 
must follow the specifications relating to quality, design and technology provided by L.  The 
agreement specifically states that M undertakes to produce and to sell products with this 
trademark exclusively to I or to other companies de termined by L.  Company M is not related to L 
or to I. 
 I enters into a sales contract with M under which M sells to I goods bearing the trademark of 
L.  There is no requirement in that contract to pay the corresponding royalty.  The price actually 
paid by I to M for the imported goods does not include the royalty payable from I to L.   
 Is the payment of the royalty from importer I to licensor L a condition of sale of the goods 
that I purchases from supplier M, and is this royalty related to the goods being valued? 
*          * 
2.  The Technical Committee on Customs Valuation expressed the following view. 
 Since the goods imported by I bear the trademark of L, it can be stated that the royalties in 
question are related to the goods being valued. 
 Furthermore, in this case, pursuant to the supply agreement, L controls the production 
relating to the goods bearing its trademark by au thorizing the manufacture of the licensed goods, 
determining which companies M may sell to, and directly providing the designs and technology for manufacturer M.  Since L authorizes I to use the trademark in connection with the manufacture 
and importation of the goods pursuant to the pr ovisions of the license agreement, L further 
influences and controls the transaction between M and I by selecting what party may use the trademark and purchase the imported goods. 
 The sales contract between M and I does not contain any clause requiring payment of a 
royalty. However, payment of the royalty is made as a condition of sale of the goods, because I 
would not be able to buy them if it failed to make that payment to L.  Non-payment of the royalty to L by I would cause not only the termination of the licence agreement but also the withdrawal of 
the authorization given to M to manufacture and sell to I the goods bearing such trademark.   
 The royalties in question, therefore, should be added to the price actually paid or payable for 
the goods under Article 8.1(c) of the Agreement. 
 
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