RESTRICTED  
  
G/VAL/M/64  
 
7 August  2017 
(17-4264)  Page: 1/14 
Committee on Customs Va luation    
 
MINUTES OF THE MEETI NG OF 15 MAY 2017  
CHAIRPERSON : DR YASSER KORANI, (EGYP T) 
The agenda proposed for the meeting, circulated in  WTO/AIR/VAL/ 5, was adopted with the 
following modifications: it was agreed to take up a genda item "J. Election of Officers" afte r agenda 
item "K. Other Business" ; at the request of the d elegate of India, in light of the entry into force of 
the Trade Facilitation Agreement, agenda item "G. Paragraph 12 of the Doha Ministerial 
Declaration WT/MIN/(01)/Dec/1): Implementation -related is sues" was removed from the agenda.    
 
1   REPORT OF THE WORK O F THE TECHNICAL COMM ITTEE ON CUSTOMS 
VALUATION  ................................ ................................ ................................ ......................  2 
2   INFORMATION ON IMPLE MENTATION AND ADMINI STRATION OF THE 
AGREEMENT  ................................ ................................ ................................ .....................  2 
2.1   Notification of national legislation  ................................ ................................ ..................  2 
A. Kingdom of Bahrain  ................................ ................................ ................................ .... 2 
B. Belize  ................................ ................................ ................................ .......................  3 
C. Cabo Verde  ................................ ................................ ................................ ...............  3 
D. Colombia  ................................ ................................ ................................ ...................  3 
E. Guinea  ................................ ................................ ................................ ......................  4 
F. Honduras  ................................ ................................ ................................ ..................  4 
G. Kazakhstan  ................................ ................................ ................................ ...............  4 
H. Malawi  ................................ ................................ ................................ ......................  4 
I. Montenegro  ................................ ................................ ................................ ...............  4 
J. Nepal  ................................ ................................ ................................ ........................  5 
K. Nicaragua  ................................ ................................ ................................ ..................  5 
L. Nigeria  ................................ ................................ ................................ ......................  6 
M. Russian Federation  ................................ ................................ ................................ ..... 6 
N. Rwanda ................................ ................................ ................................ .....................  6 
O. Solomon Islands  ................................ ................................ ................................ ........  7 
P. Sri Lanka  ................................ ................................ ................................ ..................  7 
Q. The Gambia  ................................ ................................ ................................ ...............  7 
3   INFORMATION ON THE A PPLICATION OF DECISI ONS OF THE COMMITTEE  ON 
CUSTOMS VALUATION  ................................ ................................ ................................ ...... 8 
3.1   The status of notifications und er the Committee's Decisions  ................................ ..............  8 
3.2   Uruguay's proposal to update the carrier media decision  ................................ ..................  8 
4   TECHNICAL ASSISTANCE  ................................ ................................ .............................  8 
4.1   Information on Technical Assistance  ................................ ................................ ..............  8 G/VAL/M/6 4 
 
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  4.2   Article  20.3 Technical Assistance and Trade -Related Technical Assistance  ...........................  8 
5   UNITED STATES - ARMENIA'S REFERENCE PRICE SYSTEM IN CONN ECTION 
WITH THE VALUATION O F GOODS ................................ ................................ ....................  9 
6   THAILAND - PAKISTAN'S DETERMINA TION OF CUSTOMS VALU ES OF PAPER  ..............  9 
7   PRESHIPMENT INSPECTI ON ................................ ................................ ......................  10 
7.1   Status of notifications by Members  ................................ ................................ ............... 10 
7.2   Quest ions and Responses by the United States and Indonesia  ................................ .......... 10 
7.3   Information on PSI  programmes  ................................ ................................ ................... 10 
8   UNITED STATES – EGYPT'S STATUS OF NO TIFICATION OF PSI  ................................ . 11 
9   OTHER  BUSINESS  ................................ ................................ ................................ ...... 11 
9.1   Review of the Agreement on PSI  ................................ ................................ .................. 11 
9.2   Date of next meeting  ................................ ................................ ................................ ..12 
10   ELECTION OF CHAIR ................................ ................................ ................................  12 
 
_______________  
 
 
1  REPORT OF THE WORK OF THE T ECHNICAL COMMITTEE O N CUSTOMS VALUATION  
1.1.  The representative of the World Customs Organization  (WCO) , Mr. Richard Soki , reported on 
the activities of the Technical Committee on Customs Valuation at its 44th session , which had been  
held from 8 to 12 May 2017 . His report is contained in the Annex  to this document . 
1.2.  The Chairperson  thanked Mr. Soki for his report  and expressed the Committee's appreciation 
for the continued valuable work of the Technical Committee on Customs Valuation.  
1.3.  The Comm ittee took note  of the report.  
2  INFORMATION ON IMPLE MENTATION AND ADMINI STRATION OF THE AGRE EMENT  
2.1  Notification of national legislation  
2.1.  The Chairperson  recalled that  pursuant to Article  22 of the Agreement and the Decision on  
"Notification and circulation of  national legislation in accordance with Articl e 22 of the Agreement" 
Members must submit the complete texts of their national legislation on customs valuation in one 
of the three  official WTO  languages. They should also inform the Committee of any changes  in 
their laws and regulations relevant to this Agreement and in the administration of such laws and 
regulations. The notification procedures had been adopted by the Committee at its meeting of 
12 May 1995 and were contained in section  B.2 of document  G/VAL/5. As agreed at the 
Committee's meeting of 25  October  2012, the Se cretariat had issued a document  summariz ing the 
current status of notifications ; the latest version of this document had been circulated as 
G/VAL/ W/232/Rev. 6 and G/VAL/W/232/Rev.6/Corr.1 . As agreed at the Committee 's meeting  of 
7 October  2015, t he status document ha d been revised  to include references to documents 
containing the questions and responses raised  with regard to notifications.  
2.2.  The Chairperson  recalled that  the situation regardin g the notification of  Chinese Taipei 's 
legislation remain ed unchanged . 
A. Kingdom of Bahrain  
2.3.  The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of Bahrain's notification of national legislation and responses t o the checklist of issues 
which had been circulated in documents  G/VAL/ N/1/BHR/ 1, G/VAL/ N/1/BHR/ 2 and 
G/VAL/N/ 2/BHR/ 1. The committee was awaiting responses from Bahrain to questions raised by the 
United States in document G/VAL/ W/223.  G/VAL/M/6 4 
 
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  2.4.  The representative of  the United States  stated that her delegation  continued to look forward 
to receiving written responses to the ir questions which had been submitted in 2013. 
2.5.  The representative of the Kingdom of Bahrain  thanked the United States for their patience 
and stated  that they hoped to have the responses submitted by the next Committee meeting .   
2.6.  The Committee took note  of the statement s made and agreed  to revert to Bahrain's 
notification  at the next meeting.  
B. Belize  
2.7.  The Chairperson  recalled that it had been agreed at the last meeting to revert  to the 
examination of Belize's notification of national legislation and responses to the checklist of issues 
which had been circulated in documents  G/VAL/N/1/BLZ/1 a nd G/VAL/N/2/BLZ/1 . The Committee 
was awaiting responses from  Belize to questions raised by the United States in documents 
G/VAL/ W/188 and G/VAL/ W/272 and G/VAL/ W/272/Corr.1.   
2.8.  The representative of the United States  stated that her delegation continued to look forward 
to receiving written  responses  to their quest ions. 
2.9.  The Committee took note  of the statement made and agreed  to revert to Belize's notification  
at the next meeting.  
C. Cabo Verde  
2.10.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of Cabo  Verde's notificatio n of national legislation which had been circulated in 
documents  G/VAL/ N/1/CPV/1  and G/VAL/N/1/CPV/2 . The United States had raised questions in 
document G/VAL/ W/270  and Cabo Verde ha d provided responses in document G/VAL/ W/295 .    
2.11.   The representative of the United States  thanked Cabo Verde for the responses and stated 
that it had concluded its review of Cabo Verde's legislation . 
2.12.   The representative of Cabo Verde  thanked the United States for its cooperation and stated 
that his delegation remained ready to coo perate with any other delegation that had questions.   
2.13.   The Committee took note  of the statement s made and agreed  to conclude the examination 
of Cabo Verde's legislation.  
D. Colombia  
2.14.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of Colombia's notification of changes to its national legislation and revised responses 
to the checklist of issues which had been circulated in documents  G/VAL/N/1/COL/2, 
G/VAL/N/1/COL/3, and G/VAL/N/2/COL/2.  Colombia ha d provided responses in document 
G/VAL/ W/296 to questions submitted by Canada and Honduras in document G/VAL/ W/290.   
2.15.   The representative of the European Union  welcomed Colombia's responses which confirmed 
that Colombia was not using reference price indicators in the determination of customs value.    
2.16.   The representative of Colombia  thanked Canada, Honduras and the European Union for their 
questions. He confirmed  that Colombia n Customs used the refe rence price data ba se for the 
purpose of risk management and such use did  not prejudice  in any way  the use of the transaction  
value.   
2.17.   The Committee took note  of the statements made and agreed  to conclude the examination 
of Colombia's national legislation.  G/VAL/M/6 4 
 
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  E. Guinea  
2.18.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of Guinea's notification of national legislation which had been circulated in 
document  G/VAL/ N/1/GIN/1.  The United States had raised q uestions which  had been  circulated in 
document  G/VAL/W/ 266. 
2.19.   The representative of the  United States  stated that her delegation looked forward to 
receiving the replies . 
2.20.   The Committee took note  of the statement made and agreed  to revert to Guinea's  
notification  at the next meeting.  
F. Honduras  
2.21.   The Chairperson  recalled that it had been agreed  at the last meeting to revert to the 
examination of Honduras' notification of national legislation and responses to the checklist of 
issues  which had been  circulated in documents  G/VAL/ N/1/HND/1 and G/VAL/ N/2/HND/1 . 
The United States had submitted questio ns in document  G/VAL/W/268.  
2.22.   The representative of the United States  stated that her delegation  looked forward to 
receiving a written response to its questions.  
2.23.   The representative of Honduras  stated that it was awaiting replies from capital.  
2.24.   The Committee took note  of the statement s made and agreed  to revert to Honduras'  
notification  at the next meeting.  
G. Kazakhstan  
2.25.   The Chairperson  drew attention to Kazakhstan 's notification of  its responses to the Checklist 
of Issues circulated in document G/VAL/N/2/KAZ/1 .  
2.26.   The representative of Kazakhstan  stated that his delegation would be pleased to answer any 
questions in due course.  
2.27.   The representative of the United States  said that the document was being reviewed in 
capital.  
2.28.   The representative of the European Union  thanked Kazakhstan for the notification  which 
they were currently r eviewing.  
2.29.   The Committee took note  of the statements made and agreed  to revert to Kazakhstan's  
notification at the next meeting.  
H. Malawi  
2.30.   The Chairperson  drew attention to the notification b y Malawi of changes to its national 
legislation which ha d been circulated in G/VAL/ N/1/MWI/2 . 
2.31.   The representative of the United States  thanked Malawi for the notification and stated that it 
was being reviewed in capital.  
2.32.   The Committee took note  of the stat ement made and agreed  to revert to Malawi 's 
notification  at the next meeting.  
I. Montenegro  
2.33.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of Montenegro's  notification of  national legislation and responses  to the checklist of G/VAL/M/6 4 
 
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  issues  which had been circulated in documents  G/VAL/ N/1/MNE/1  and G/VAL/ N/2/MNE/1. 
Questions had been raised by the United States in document  G/VAL/W/267 and Montenegro had 
provided responses in documents  G/VAL/W/279 and G/VAL/W/284.  
2.34.   The representative of the United States  thanked Montenegro for its swift and thorough 
response s.  Her delegation had no further questions at that time.   
2.35.   The representative of Montenegro  thanked the United States for its interest in Montenegro's 
notificatio ns and for its constructive bilateral engagements.  Montenegro thanked all delegations 
and stood ready to engage with them should they have any questions.    
2.36.   The Committee took note  of the statements made and agreed  to conclude the examination 
of Montenegr o's national legislation . 
J. Nepal  
2.37.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of  Nepal's notification of national legislation which had been circulated in 
document  G/VAL/N/1/NPL/1.  The United States ha d raised questions which had been circulated in 
document  G/VAL/W/286.  
2.38.   The representative of Nepal  stated that her delegation had received the responses from 
capital  and that they had been forwarded bilaterally to the United States .1  
2.39.   The representative of Canada  referred to  the question his delegation  had posed to Nepal at 
the Committee meeting of October 2015 regarding section 14.6  of the legislation , which provided 
for the use of an estimated amount for likely freight, insurance and other related expenses  to 
calculate customs value. Given  that the C ustoms Valuation Agreement precluded the use of 
arbitrary customs value, he queried how Nepal determine d those estimated amounts and how such 
practices were consistent with the C ustoms Valuation Agreement .  
2.40.   The representative of the European Union  noted the reference  in Nepal's legislation  to 
transport costs and related costs which had been incurred or which could be incurred. 
He considered that too much emphasis  was being placed on transport costs , and particula rly costs 
which could be incurred in the future . It was an additional complication that Members should try to 
avoid in future .  
2.41.   The representative of the United States  thanked Nepal for the responses  that they had 
received bilaterally and which would be re viewed in capital.   
2.42.   The representative of Nepal  requested Canada and the European Union to provide their 
questions in writing.  
2.43.   The Committee took note  of the statements made and agreed  to revert to Nepal's 
notification  at the next meeting.  
K. Nicaragua  
2.44.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of Nicaragua's notification of legislation and responses to the checklist of issues which 
had been circulated in documents  G/VAL/N/1/NIC/1 and G/VAL/N/2/NIC/1. Questions from the 
United States had been circulated in document  G/VAL/W/261  with replies from Nicaragua 
circulated  in document  G/VAL/W/265 . The United States had raised  additional questions in 
document  G/VAL/W/273  to which Nicaragua had provided responses  in document  G/VAL/W/28 1. 
The United States had subsequently posed  additional question s which had been circulated  in 
document  G/VAL/W/289  to which Nicaragua had provided responses in document G/VAL/W/294 .   
2.45.   The representative of the United States  thanked Nicaragua for its response  and stated that 
her delegation had no further questions at th is time. 
                                                
1 The responses were subsequently circulated in document G/ VAL/W/300.  G/VAL/M/6 4 
 
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  2.46.   The Committee took note  of the statements made and agreed  to conclude the examination 
of Nicaragua's notification.  
L. Nigeria  
2.47.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of Nigeria's notification of national legislation and responses to the checklist of issues  
which had been circulated in documents G/ VAL/N/1/NGA/1 and G/VAL/N/2/NGA/1. 
The United  States and Can ada had raised  questions  which had been circulated in 
documents  G/VAL/W/175 and G/VAL/W/176, respectively.  
2.48.   The representative  of Canada  reiterated Canada' s interest in receiving responses to the 
questions which  they had raised  in 2009 . 
2.49.   The representative o f the United States  stated that h er delegation remained interested in 
receiving replies to the questions posed by her delegation  and Canada . 
2.50.   The representative of Nigeria  stated that the draft bill for amendment of the Customs and 
Excise Management Act (CE MA) was before the Nigerian National Assembly for finalisation and 
passage. The anticipated amended act would be WTO customs compliant as well as address the 
concerns expressed by Members. Her delegation looked forward to further constructive bilateral 
engagements with the concerned delegations.  
2.51.   The Committee took note  of the statements made and agreed  to revert to Nigeria's 
notification  at the next meeting.  
M. Russian Federation  
2.52.   The Chairperson  recalled that it had been agreed at the last meeting to revert  to the 
examination of the Russian Federation's notification of legislation which had been circulated in 
documents G/VAL/N/1/RUS/1 , G/VAL/N/1/RUS/2 , G/VAL/N/1/RUS/2 /Add.1 , G/VAL/N/1/RUS/3  and 
G/VAL/N/1/RUS/3 /Add.1 . The Russian Federation's response s to the  checklist of issues  had been 
circulated  in document  G/VAL/N/2/RUS/1 . The Russian Federation had subsequently circulated in 
document  G/VAL/N/1/RUS/1/Add.1 legislation referred to in document  G/VAL/N/1/RUS/1 . 
Questions raised by t he United States had been c irculated in document  G/VAL/W/287.  
2.53.   The representative of the United States  stated that her delegation continued to look forward 
to receiving written replies to the questions that they had posed .   
2.54.   The representative of the European Union  stated that his de legation also looked forward to 
the Russian Federation's responses . 
2.55.    The representative of the Russian Federation  stated that the matter of updating its 
notification was currently being considered in capital  and they would provide responses to the 
United S tates in due course . 
2.56.   The Committee took note of the statements made and agreed  to revert to the 
Russian  Federation's notification  at the next meeting.  
N. Rwanda  
2.57.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examinati on of Rwanda's notification of national legislation and responses to the checklist of issues  
which had been  circulated in documents  G/VAL/ N/1/RWA/1 and G/VAL/N/2/RWA/1. Questions 
raised by the  United States had been circulated in document  G/VAL/W/215.  
2.58.   The representative of the United States  stated that her delegation remained interested in 
receiving Rwanda's written replies . 
2.59.   The Committee took note  of the statement made and agreed  to revert to Rwanda's 
notification  at the next meeting.  G/VAL/M/6 4 
 
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  O. Solomon Islands  
2.60.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of  the Solomon Islands' national legislation which had been  circulated  in document 
G/VAL/N/SLB/1 . The United States had raised questions which had been circulat ed in document 
G/VAL/W/298.  
2.61.   The representative of  the United States  stated that her delegation looked forward to 
receiving written replies to their questions.  
2.62.   The Committee took note  of the statement made and agreed  to revert to the Solomon 
Islands' notifi cation  at the next meeting.  
P. Sri Lanka  
2.63.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of Sri Lanka's notification of national legislation and its responses to the checklist of 
issues which  had been circu lated in documents  G/VAL/N/1/LKA/1  and G/VAL/N/1/LKA/1 /Corr.1, 
and G/VAL/N/2/LKA/1.  The United States had raised  questions in document  G/VAL/W/269  and 
Sri Lanka had provided responses in document G/VAL/W/291 . The United States had raised 
additional questio ns in document G/VAL/W/297.  
2.64.   The representative of Sri Lanka  referred  to the two additional qu estions from the 
United  States and in response stated that: 1) Sri Lanka did not use minimum value  for customs 
valuation purposes;  and 2) the customs value of all imported goods w as determined in accordance  
with the C ustoms Valuation Agreement. The relevant information could be accessed at 
www.documents.gov.lk . Sri Lanka had also provided the same information during its trade policy 
review in November 2016.     
2.65.   The representative of the United States  thanked Sri Lanka for the responses  to the 
follow -up questions  and requested Sri Lank to provide them in writing . She also appreciated the 
very constructive engagement between her delegation and that of Sri Lanka regarding the review 
of the customs valuation legislation.  
2.66.   The Committee took note  of the statement s made and agreed  to revert to Sri Lanka's 
notification  at the next meeting.  
Q. The Gambia  
2.67.   The Chairperson  recalled that it had been agreed at the last meeting to revert to the 
examination of The Gambia's notification of national legislation which had been circulated in 
documents  G/VAL/N/1/GMB/1 and G/VAL/N/4/GMB/1.  The United States had submitted questions 
in document  G/VAL/W/245.  
2.68.   The representative of the United States  stated that her delegation  remained interested in  
receiv ing the replies.  
2.69.   The Committee took note  of the statement made and agreed  to revert to The Gambia's 
notification  at the next meeting.  
2.70.   The Chairperson  thanked Members that had notified their national legislation and had 
provided responses to the checklist of issues. He strongly encouraged the still considerable number 
of Members  that had not notified their national legislation , nor provided responses to the checklist 
of issues , to work with their capitals to do so as soon as possible. He reminded Members that the 
Secretariat was available for any assistance in fulfilling the notification obligations.  
2.71.   The Committee took note  of the information.  G/VAL/M/6 4 
 
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  3  INFORMATION  ON THE APPLICATION O F DECISIONS OF THE C OMMITTEE ON 
CUSTOMS VALUATION  
3.1.  The Chairperson  stated  that the Committee had two  issues  under this agenda item : the 
status of notifications under the Committee's Decisions and the proposal by Uruguay circulated in 
document  G/VAL/W/241/Rev.1.  
3.1  The status of notifications under the Committee's Decisions  
3.2.  The Chairperson  recalled that the Committee examined notifications pursuant to 
two Decisions that had been adopted by the Committee at its meeting of 12  May 1995 and which 
were contained in document  G/VAL/5. Those were the decisions on "Treatment of Interest Charges 
in the Customs Value of Imported Goods" and "Valuation of Carrier Media Bearing Software for 
Data Processing Equipment". A report by the Secretariat listing the notifications received had been 
circulated in document  G/VAL/W/5/Rev.2 7. 
3.3.  The Committee took note  of the information.  
3.2  Uruguay's proposal to update the carrier media decision  
3.4.  The Chairperson  recalled the proposal b y Uruguay contained in document 
G/VAL/W/24 1/Rev.1, which was to amend the Carrier Media Decision, also known by Customs as 
"Decision  4.1". According to Uruguay, software was increasingly being imported using new types  of 
carrier media, e.g.  USB flash drives or other similar devices, which might no t fall under the 
definition of "carrier medium" in the Decision. This meant that such importations of software would 
be treated differently from those imported using other types of media, such as CDs or DVDs. 
Switzerland had submitted comments on Uruguay's  proposal which had been circulated in 
document  G/VAL/W/254. At the request of the Committee, the Secretariat had also prepared a 
report with statistics on imports of these products which had been circulated in G/VAL/W/249.  
3.5.  The representative of Uruguay  requested for the discussion to be suspended and for it to be 
taken up at the next  Committee  meeting .  
3.6.  The Committee took note  of the statement made and agreed  to revert to Uruguay's proposal 
at the next meeting.  
4  TECHNICAL ASSISTANCE  
4.1  Information on Technical  Assistance  
4.1.  The Chairperson  recalled that at its meeting of 12  May 1995, and as reflected in section  B.4 of 
document  G/VAL/5, the Committee on Customs Valuation had agreed that greater transparency of 
technical assistance activities would be ensured if inf ormation documents prepared for the 
WCO Technical Committee  on Customs Valuation were also made available as a WTO  document. 
Document  G/VAL/8/Add.3 4 contain ed the most recent information compiled by the Technical 
Committee on Customs Valuation concerning t echnical assistance activities carried out by Members  
as well as by the WCO  Secretariat.  
4.2.  The representative of the European Union  express ed his delegation's appreciation for the 
technical assistance provided by Members and the Secretariat . There was now a greater  potential 
for technical assistance capacity -building programmes to be developed in relation to the very clear 
linkages between trade facilitation and customs valuation . There might be a potential to merge 
technical assistance in that area and mayb e Members  could look at this potential in a constructive 
manner  on a bilateral or informal basis .  His delegation had raised this issue at an earlier meeting . 
4.3.  The Committee  took note  of the information  and of the statement made . 
4.2  Article  20.3 Technical Assi stance and Trade -Related Technical Assistance  
4.4.  The Chairperson  went on to recall that the Committee's Work Programme on t echnical 
assistance for capacity building  regard ing the implementation and a dministration of the G/VAL/M/6 4 
 
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  WTO Agreement on Customs Valuation was now incorporated in to the overall technical assistance 
program of the WTO. The WTO was  currentl y implementing the 201 6-2017 Biennial TA  Plan 
contain ed in document  WT/COMTD/W/2 11. Requests for technical assistance could be made by 
individual Members at any time and would be met by a national activity designed to meet the 
needs of the recipient.  
4.5.  A member of the  Secretariat  (Ms Dolores Halloran) presented a report on technical assistance 
activity for the period since the Committee's previous meeting  in October  2016. A national 
workshop on customs valuation for St. Vincent and the Grenadines had been carried out in 
cooperation with the WCO. Customs Valuation technical assistance had been provided as part of a 
regional market access workshop for the Arab region d elivered i n Kuwait in March 2017. 
Customs  Valuation was always covered as part of the Market Access week for WTO Regional Trade 
Policy Courses .  Since the last Committee meeting, four RTPCs  had taken place, covering the Asia 
and Arab Regions in 2016 and th e CEECAC and Caribbean regions in 2017. Customs Valuation was 
also covered in the WTO Advanced Trade Policy Course  in January 2017.  
4.6.  The Secretariat also referred to upcoming customs valuation activities in the month of June 
which comprised a national work shop in Guatemala to be delivered in cooperation with the WCO a s 
well as a regional market access workshop for the CEECAC region to be delivered at the J oint 
Vienna  Institute . 
4.7.  The Committee  took note  of the information . 
5  UNITED STATES - ARMENIA'S REFERENCE PRICE SYSTEM IN CONN ECTION WITH THE 
VALUATION OF GOODS  
5.1.  The Chairperson  recalled that it had been agreed at the last meeting to revert to this issue. 
Armenia had notified its national legislation in August  2003 in document  G/VAL/N/1/ARM/1  as well 
as its res ponses to the checklist of issues in document  G/VAL/N/2/ARM/1. The Committee had 
concluded its examination of this legislation at its meeting on 18  October  2005. The U nited States 
had raised  follow -up questions in document  G/VAL/W/208 to which Armenia had provided 
responses in document  G/VAL/W/213.  Canada had subsequently submitted questions in 
document  G/VAL/W/214.  
5.2.  The representative  of Canada  referred to the outstanding questions that it had submitted in 
2012 related to the possible use of reference price s. It was an important issue and his delegation  
remained interested in receiving responses as soon as possible.  
5.3.  The Committee  took note  of the statement made and agreed  to revert to th e issue at the 
next meeting.  
6  THAILAND - PAKISTAN'S DETERMINA TION OF CUST OMS VALUES OF PAPER   
6.1.  The representative  of Thailand  referred to their concerns about Pakistan's valuation Ruling 
No. 827/2016 dated 6 April 2016, "Regarding the Determination of Customs Values of One Side 
Coated Duplex Board and Uncoated Offset Paper for W riting, Printing and Photocopying" which his 
delegation had raised at the previous meeting of the Committee.  
6.2.  He thank ed Pakistan for its written response to Thailand's concerns  contained in its letter 
dated 21 November 2016 . Pakistan had explained why and how the fall -back method was used to 
determine the customs value of imported paper products. However, Pakistan had not r esponded to  
some other issues ; for example, the consistency between Article 7.2(f) of the Customs Valuation 
Agreement and Pakistan's  valuation ruling which state d that "in case where declared/transaction 
values are higher than the customs value determined in this Ruling, the accessing officers shall 
apply those values" . Such a requirement refer red to the application of minimum customs valu es, 
whereby Pakistan would apply the higher value between the transaction value and the values 
specified in the ruling and was therefore inconsistent with the Customs Valuation Agreement.   
6.3.  In addition , Thailand had received further information from their exporters claiming that they 
had recently exported different qualities of paper products with different transaction prices to 
Pakistan and Pakistan had assessed the customs values of th ose paper products at US$1.07 per G/VAL/M/6 4 
 
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  kilogram, even though the transaction  values and qualities were different and should have been 
determined differently.  Since the customs value should have been determined on the basis of the 
transaction value, Thailand sought clarification on the following aspects :  could Pakistan provide a 
justification on the use of minimum customs values in light of the commitments pursuant to 
Article  7.2(f) of the customs valuation agreement ; and, could Pakistan explain why the transaction 
values could not be used to determine the customs values of paper p roducts from Thailand.  
6.4.  He hoped that Pakistan would provide detailed responses to Thailand's question and review 
the Valuation Ruling No. 827/2016 at the earliest. Thailand was ready to meet bilaterally with 
Pakistan, with a view to achiev ing a mutually ag reeable solution.  
6.5.  The representative of Pakistan  stated that his delegation had been engaging with Thailand 
bilaterally and had already responded to their previous concerns. His delegation had recently 
forwarded the new queries to capital and they were awa iting the responses. On a preliminary 
basis, paragraph 9 of the ruling clearly said that a review petition could be filed by the importers 
for revision if they were not satisfied. He would convey Thailand's statement to capital and 
Pakistan would continue to engage bilaterally with Thailand on the issue.  He requested that 
Thailand provide any further questions in writing.  
6.6.  The Committee took note  of the statements made and agreed  to revert to th e issue at the 
next meeting.  
7  PRESHIPMENT INSPECTI ON 
7.1.  The Chairper son noted that Preshipment Inspection was a standing item on the agenda of the 
Committee on Customs Valuation and that there  were three  items to discuss: Status of 
notifications ; Questions and Responses by the United States and Indonesia,  respectively; and , 
Information  on PSI  Programme s. 
7.1  Status of notifications by Members  
7.2.  The Chairperson  drew attention to the compilation of notifications pursuant to Article  5 of the 
Agreement on Preshipment Inspection  which were contained in the following series of document s: 
G/PSI/N/1/Rev.2 ; G/PSI/N/1/Rev.2/ Add.1; G/PSI/N/1/Rev.2/Add. 2; G/PSI/N/1/Rev.2/Add.3 ; and 
G/PSI/N/1/Rev.2/Add.4.  
7.3.  The Committee  took note  of the document s. 
7.2  Questions and Responses by the United States and Indonesia  
7.4.  The Chairperson  recalled that it had b een agreed at the last meeting to revert to the issues of 
Questions and Responses by the United States and Indonesia. The United States had raised  
questions to Indonesia which had been circulated in documents  G/VAL/W/167, G/ VAL/W/180 and 
G/VAL/W/237 . Indon esia ha d provided  responses  in documents  G/VAL/W/256, G/VAL/W/257 and 
G/VAL/W/257/Corr.1 . The United States had submitted additional questions  which had been 
circulated in document  G/VAL/ W/278 . 
7.5.  The representative of the United States  thanked Indonesia for the replies to its earlier  
questions and stated that her delegation still had a number of questions which were outstanding. 
She also requested that the practices by Indonesia be notified to the Committee in order to allow a 
discussion about the substance o f the PSI programmes in the Committee.  
7.6.  The Committee  took note  of the statement made and agreed  to revert to the issue at the 
next meeting.  
7.3  Information on PSI  programmes  
7.7.  The Chairperson  drew attention to document G/VAL/W/63/Rev. 20 which contained the most  
recent update of the information received from the International Federation of Inspection Agencies 
(IFIA) on Members that use preshipment inspection services . G/VAL/M/6 4 
 
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  7.8.  The Committee took note of the information . 
8  UNITED STATES – EGYPT'S S TATUS OF NOTIFICATIO N OF PS I  
8.1.  The representative of the United States  referred to their concerns  about a new preshipment 
inspection requirement by Egypt  which had been circulated in document G/VAL/W/299 . 
She understood that Egypt's Decree No. 991/2015 laid out new preshipment requir ements for 
importers. The Decree had been notified to the Committee on Technical Barriers to Trade in 2016, 
however, pursuant to Article 5 of the Agreement on Preshipment Inspections, the Decree should 
be notified to the Committee on Customs Valuation as n ew requirements on PSI by Egypt's 
Ministry of Trade's General Organization for Export and Import Control.  She understood that the 
Decree had taken e ffect as of 31 December 2015  and therefore she request ed that the Decree and 
any other documents on preshipm ent inspection be notified to the Committee on 
Customs  Valuation to allow  the Committee to have a discussion about the substance of th e PSI 
requirements.  
8.2.  The representative of Switzerland  expressed his delegation 's support for the United States 
statement a nd communication regarding Egypt's Decree No. 991/2015. Article 2 of the Decree 
referred to "companies or entities responsible for the examination of  goods prior to shipping".  
His delegation considered that to be a clear indication that the Decree was related to PSI activities 
and therefore had to be notified to the Customs Valuation Committee.  
8.3.  The representative of Egypt  stated that on 21 December 2015, the Minister of Trade and 
Industry had issued Decree No. 991 /2015 r egarding preshipment inspection requirements, in order 
to control the quality of certain imported goods contained in a list attached to the Ministerial 
Decree. According to Article 2.20  (including footnote)  of the Preshipment Inspection Agreement,  
preshipment inspection would be connected to  customs valuation only if such measures were 
taken for the purpose of  price verification in order to prevent under invoicing and fraud. 
Egypt's  Ministerial Decree No. 991 ha d imposed the preshipment inspection measure on a limited 
number of imported goods  in order to control their quality and to check whether or not such 
imports met the required standard before entering the Egyptian market.  Those measures d id not 
have any relation with price verification and the concerned authority following up on its 
implementation was the General Organization for Import and Export Control  and not the customs 
authorities.  Therefore, any notification of Ministerial Decree No. 991 under the Committee on 
Customs Valuation would be irrelevant and the TBT Committee was the onl y competent WTO body 
to discuss th e matter.   
8.4.  Egypt had officially published th e Decree and notified it to the TBT Committee and  had held a 
number of constructive consultations with its trading partners. Egypt had also received comments 
and questions throu gh its TBT enquiry point, to which they had replied in writing as well as in their 
bilateral meeting with interested Members , including the United States and Switzerland. However, 
his delegation had taken note of the concerns raised at the meeting and thanked Members for 
their previous constructive engagement . He encouraged them to approach his delegation 
bilaterally within the scope of the TBT Committee in order to continue consultations on the matter.   
8.5.  The Committee  took note  of the statement s made . 
9  OTHE R BUSINESS  
9.1  Review of the Agreement on PSI  
9.1.  The Chairperson  drew the Committee's attention to Article 6 of the Agreement on 
Preshipment Inspection, which provided for a triennial review of the provisions, implementation 
and operation of the Agreement, taking  into account the objectives thereof and experience gained 
in its operation. The last review had taken place in 2014 and he proposed that the Committee 
conduct such a review at the autumn  meeting on the basis of M embers' written submissions. 
In that regard , he requested Members to provide such writ ten input for circulation by 
10 September 2017. In the case of there being no written submission, the Secretariat would 
produce a factual report.   
9.2  It was so agreed .   G/VAL/M/6 4 
 
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  9.2  Date of next meeting  
9.3  The Chairperson  stated t hat the date of the next meeting  of the Committee would be fixed in 
consultation with Members.  
10  ELECTION OF CHAIR  
10.1  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 established Guidelines for Appointment of Officers. On 
the basis of his consultations, he ha d proposed that the Committee elect Ms Luciana NADER 
(Uruguay) as Chairperson for 2 017.  
10.2  The Committee elected  Ms Nader  by acclamation.   
10.3  The meeting was adjourned.  
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 G/VAL/M/6 4 
 
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  ANNEX   
 
REPORT TO THE W TO COMMITTEE ON CUSTOMS VALUATION  
ON THE WORK OF THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION  
AND RELATED ACTIVITI ES O F THE WCO  SECRE TARIAT  
15 May 2017  
The Technical Committee on Customs Valuation ( "Technical Committee ") held its 44th Session at 
WCO Headquarters in Brussels from 8 to 12 May 2017. Fifty -nine (59) Member Customs 
administrations were present, as well as Observers from three Customs Administrations; and 
three  organizations . 
1.  Theme Meeting  
The first day of the session was given over to the Theme Meeting.  The two topics addressed 
during the meeting were customs valuation risk management  and the valuation aspects of 
e-comme rce. On the latter topic, the discussions were focused primarily on procedures and 
methods for valuing goods imported through e -commerce, including matters relating to the use of 
databases.  
Regarding risk management, discussions focused primarily on proce dures and methods for 
valuating goods traded by e -commerce.    
2.  Specific technical questions examined, and outcomes achieved  
The Technical Committee continued its discussions on the specific technical questions on its 
Agenda:  
a. Related party transaction s under the Agreement and Transfer Pricing - case based on resale 
price method example: submitted by China  
The Technical Committee completed its discussions on this question submitted by China. 
It is expected that the Case Study on this question will be a dopted at the 45th Session.  
b. Examining the circumstances surrounding the sale under the provisions of Article 1.2 (a) – 
goods produced in different  countries: submitted by Ecuador.  
The Technical Committee decided to continue its discussions on this questi on at the 45th 
Session.  
c. Use of Transfer Pricing documentation to examine related party transactions according to 
Article 1.2 (a) of the Agreement goods: submitted by Uruguay.  
The Technical Committee decided to continue its discussions on this question at the 45th 
Session.  
The TCCV further examined the four following questions;  
(i) Condition of sales, objective and quantifiable data: submitted by Mexico.  The Technical 
Committee completed its examination of this question submitted by Mexico and adopted 
Advisor y Opinion 4.17, which will be submitted to the Council for approval.  
(ii) International Marketing Fee: submitted by Colombia  
After examining this question at its 42nd, 43rd and 44th Sessions, the Technical Committee 
concluded that the facts of the transaction  were not clear and precise enough to enable the 
question to be examined properly. It decided to place this question in Part III of the 
Conspectus of Technical Valuation Questions.  G/VAL/M/6 4 
 
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  (iii) Valuation of imported goods purchased in "Flash sales ": submitted by Mauri tius  
The Technical Committee decided to continue its discussions on this question at the 45th 
Session.   
(iv) Interpretation of the term "to" in Article 8.2(a) and (b) of the Agreement: submitted by 
Uruguay  
There was little interest in this question submitted  by Uruguay which raised, in particular, 
the issue of whether the cost of unloading the goods at the port of importation is included in 
the Customs value. Consequently, the Committee also decided to place this question in Part 
III of the Conspectus of Tech nical Valuation Questions.  
3.  Technical Assistance  
Under Agenda Item V, the Technical Committee took note of:  
- The report on the technical assistance/capacity building activities undertaken by the 
Secretariat and by Members; refers to name of document  containing ta activities by China 
and Japan, including those carried out by the WCO secretariat.  
- The Secretariat 's presentation on Phase III of the Revenue Package; and  
- A presentation by the Secretariat on: "Post-clearance contr ol, concept and tools.   The most 
effective tool for Customs valuation control ".  
Under Agenda Item III, the Technical Committee adopted the Report of the 43rd Session.  
Under Agenda Item IV, the Technical Committee took note of:  
-  the Director 's report on intersessional devel opments; and  
-  the oral report by the Observer for the WTO.  
4.  Elections  
Following elections held at the 44th Session, Mr. JJ. BIRKHOFF (Netherlands) was elected as 
Chairperson of the Technical Committee, and Mr. Jean -Franço is BEDARD (Canada) and 
Ms. S.M. MARTE DE LOS SANTOS (Dominican Republic) were elected as Vice -Chairpersons.  
5.  Date of next session  
The dates of the next meeting are provisionally set as 23 to 27 October 2017.  
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