WORLD TRADE  
ORGANIZATION  G/VAL/N/2/UKR/1 
29 May 2008 
 (08-2518) 
Committee on Customs Valuation Original:   English 
  
 
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE 
AGREEMENT ON CUSTOMS VALUATION 
 
Checklist of issues
 
 
UKRAINE 
 
  The following communication, dated 19 May 2008, is being circulated at the request of the delegation of Ukraine. 
 
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1. Questions concerning Article 1: 
(a) Sales between related persons: 
(i) Are sales between related persons subject to special provisions? 
 Yes, issues concerning sales transactions between  related persons are re gulated by Article 267 
of the Customs Code and paragraphs 3.8.1., 3.8. 2., and 3.8.3. of the executive order of the 
State Customs Service of 31.01.07 No. 74 “On Approving the Methodological 
Recommendations on Applying Some Provisions of the Customs Code of Ukraine Concerning the Determination of the Customs Value of Goods Imported to the Customs Territory of Ukraine” (the “Executive Order”). 
 
(ii) Is the fact of intercompany prices prima facie considered as grounds for regarding the 
respective prices as being influenced? 
Article 267 of the Customs Code stipulates that the method for determining the customs value 
at the agreement price in respect of goods imported (transaction value) are used if the purchaser and the seller are not related parties or, even if they are related parties, their relationships had no impact on the price of the goods.” 
 
Paragraph 3.8.1. of the Executive Order stipul ates that if the purchaser and the seller are 
related to each other persons, then the circum stances of the sale must be reviewed, and the 
transaction value shall be accepted as the customs value, if these relationships had no impact on the price. 
 (iii) What is the provision for giving the communica tion of the afore-mentioned grounds in writing 
if the importer so requests? (Article 1.2(a)) 
 Article 267 of the Customs Code stipulates that if there are sufficient grounds to believe that 
relations between related parti es had an impact on the goods valuation price, the customs 
body must notify the declarant thereof and provide them with an opportunity to answer and G/VAL/N/2/UKR/1 
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  prove that there was no impact by the relations hip between the seller and the purchaser on the 
price that was actually paid or is payable for the valued goods. Upon d eclarant’s request, such 
notification is done in writing. 
 
(iv) How has Article 1.2(b) been implemented? 
Provisions of the Article 1.2(b) of the Agre ement on Implementation of Article VII of GATT 
are taken into consideration in Ar ticle 276 of the Customs Code:  
 "On sale of goods between related parties the transaction value is used as a basis for determining the customs value of the valuated goods by the first method, if the declarant 
proves that such value is approximated as much as possible to the value of one of the below 
transactions that were carried out at the time of  the transaction in the valued goods or almost 
at the time:   1)  the transaction value on the sale to unrelated buyers of identical or similar 
(analogous) goods for export to Ukraine;  
2)  the customs value of identical or sim ilar (analogous) goods determined in accordance 
with the provisions of Article 271 of this Code;  
3)  the customs value of identical or sim ilar (analogous) goods determined in accordance 
with the provisions of Article 272 of this Code;  
 
If the requirements of part seven of this Artic le are applied, information submitted by the 
declarant shall be used availa ble to the customs body regarding the difference in commercial 
terms of the sale, quantitative indicators, elements and costs indicated in part two of this Article and the costs that are normally incurred by the seller in the course of sale where the 
seller and the buyer are not related to each othe r and are not incurred by the seller upon sale 
where the seller and the buyer are related to each other.” 
 (b) Price of lost or damaged goods: 
 Are there any special provisions or practical arrangements concerning the valuation of lost or 
damaged goods?  
Since this case refers not to the customs va lue of goods but to value or residual value, 
Section XI of the Customs Code “Customs Value of Goods. Methods of Determining the 
Customs Value of Goods” does not have such provisions.  However, it should be noted that, in exercising control over the correctness of determining the 
customs value of the good, its technical, func tional and qualitative characteristics are taken 
into consideration (Articles 268 and 269 of the Customs Code). 
 
2. How has the provision of Article 4 to allow the importer an opinion to reverse the order 
of application of Articles 5 and 6 been implemented? 
Article 266 of the Customs Code stipulates that  the methods based on subtracting and adding 
value (calculated value) may be used in any order at the discretion of the declarant.  
 
3. How has Article 5.2 been implemented? 
Provisions of Article 271 of the Customs Code stipulate that if there are no cases of selling 
valuated, identical or similar (a nalogous) goods in the same cond ition as they used to have when 
brought in Ukraine, the customs value of such go ods, upon declarant’s request, shall be based on the  G/VAL/N/2/UKR/1 
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  price of a unit of goods, for which the said goods are sold in Ukraine after their further processing as 
part of the largest to persons not related to th e persons, from whom they buy such goods. Appropriate 
adjustments are made to account for the value adde d by such processing and deductions stipulated by 
paragraphs 1-3 of part two of this Article.  
 4. How has Article 6.2 been implemented? 
Article 272 of the Customs Code stipulates that an official of the customs body may not 
require or force any non-resident person submit fo r review or allow access to any account or other 
records for purposes or determining the calcula ted value. Information provided by the goods 
manufacturer for purposes of determining the customs value in accordance with the provisions of this 
Article may be verified in the manufacturer’s  country by Ukrainian authorities subject to 
manufacturer’s consent and provided that an adva nce notice is given to the government of the 
manufacturer’s country and that there are no objections against such verification.  
5. Questions concerning Article 7: 
(a) What provisions have been made for making va lue determinations pursuant to Article 7? 
Provisions of Article 7 of the Agreement on Implementation of Article VII of GATT are 
taken into consideration by the provisio ns of Article 273 of the Customs Code. 
 (b) What is the provision for informing the impor ter of the customs value determined under 
Article 7? 
Article 273 of the Customs Code stipulates that, upon declarant’s request, the customs body 
shall inform them in writing of the custom s value determined in accordance with the 
provisions of this Article and of the method used.  
 (c) Are the prohibitions found in Article 7.2 delineated? 
Yes, in accordance with Article 273 of the Cu stoms Code, the customs value of imported 
goods is not determined based on:   
 1)  prices of goods of Ukrainian origin in the domestic market of Ukraine;   2)  the system envisaging the acceptance for customs purposes of the larger of two 
alternative values;  
 3)  the price of the goods in the domestic market of the exporting country;  
 4)  the cost of production other than the calculated value determined for identical or 
similar (analogous) goods in accordance with  the provisions of Article 272 of this 
Code;  
 5)  the price of the goods supplied from the exporting country to third countries; 
 6)  the minimum customs value;  
 7)  discretionary or fictitious value.   
6. How have the options found in Article 8.2 been handled? In the case of f.o.b. application , 
are ex-factory prices also accepted? 
Article 267 of the Customs Code stipulates that in determining the customs value costs shall 
be added to the price that was actually paid or is payable for the valuated goods, if they have not been 
included in the price, in particular:  
 G/VAL/N/2/UKR/1 
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  - Costs of transporting the valuated goods to the airport, port or other place of bringing 
goods to the customs territory of Ukraine;  
 - Costs of loading, unloading and processi ng of valuated goods related to their 
transportation to the airport, port or othe r place of bringing goods to the customs 
territory of Ukraine;  
 - Insurance costs of the goods.  The terms on which the good is shipped to Ukra ine are stipulated by a foreign economic 
contract (agreement). These may be both FOB and EXW. 
 
7. Where is the rate of exchange published, as required by Article 9.1? 
In settlements for foreign economic deals, the ex change rate of the National Bank of Ukraine 
is used. Information about the current exchange rate is published on the official website of the 
National Bank of Ukraine, where exchange rates of all currencies are updated daily. 
(www.bank.gov.ua
)  
 
8. What steps have been taken to ensure confidentiality, as required by Article 10? 
Article 263 of the Customs Code stipulates that all information relating to the customs value 
of goods transported across the customs border of Ukraine may be used by the customs body only for 
customs purposes and may not, without a specific permission of the person or body submitting such 
information, be disclosed or provided to third parties including other state authorities, except submitting it in accordance with the procedure established by law. 
 Also, in accordance with Article 266 of the Cu stoms Code, if the customs value cannot be 
determined by method 1 in accordance with the prov isions of Article 267 of the code, the procedure 
of consultations is carried out between the customs body and the declarant with the view to making a 
justified choice of grounds to determine the cust oms value in accordance with the requirements of 
Articles 268 and 269 of this Code. In the course of such consultations, the customs body and the 
declarant may share the information each of th em possesses, provided the requirements for its 
confidentiality are observed.  
 
9. Questions Concerning Article 11: 
(a) What rights of appeal are open to the importer or any other person? 
Article 264 of the Customs Code stipulates that the declarant shall be entitled to challenge the 
decision of the customs body regarding the determ ination of the customs value of the valuated 
goods before the customs body of a higher level and/or in court. 
 
Paragraph 1.7. of the Executive Order stipul ates that the declarant shall be entitled to 
challenge the decision on determining the cust oms value of goods approved by the customs 
body. Initially, the complaint may be filed with the customs body of a higher level and, ultimately, the declarant shall be entitled to challenge such decision in court.  
 
(b) How is he to be informed of his right to further appeal? 
Article 264 of the Customs Code stipulates that the notification to the customs body of a 
higher level of the results of considering the complaint shall specify grounds for the decision  G/VAL/N/2/UKR/1 
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  approved with regard to the complaint and cont ain information about the declarant’s right to 
challenge this decision in court.   
10. Provide information on the publication, as required by Article 12, of: 
(a)  
(i) The relevant national laws; 
Legislative and normative acts are published in the official newspapers (“Uriadyvyi Kurier,” 
“Ofitsiynyi Visnyk Ukrainy” etc.). They are also available on the Verkhovna Rada website (www.rada.gov.ua
) and on the State Customs Service website ( www.customs.gov.ua ).  
 (ii) The regulations concerning the ap plication of the Agreement; 
Article 31 of the Customs Code stipulates that  information about normative acts on customs 
(title of the act, its main provisions, informati on about its publishing) shall be provided free-
of-charge by customs bodies to interested persons upon their request. 
 (iii) The judicial decision and administrative rulings of general application relating to the 
Agreement; 
General judicial decisions on customs that took legal effect must be officially published in 
accordance with the procedure established by law of Ukraine. 
 
(iv) General or specific laws being referred to in the rules of implementation or application. 
Brief information about the main provisions of legislative acts of Ukraine on customs shall be 
posted for general review in the locations of customs bodies.  
 (b) Is the publication of further rules anticipated?  Which topics would they cover? 
Resolution of the Cabinet of Ministers of Ukraine of April 9, 2008, No. 339 “On Approving 
the Procedure to Exercising Control Over Corr ect Determination of the Customs Value of 
Goods” shall establish the procedure for cust oms bodies’ exercising control over correct 
determination of the customs value of goods during and after customs control, customs 
clearance and passing the customs border of  Ukraine as well as additionally accruing 
obligatory payments. Resolution will come into the force since of 18 May 2008. 
No further rules are anticipated. 
 
11. Questions concerning Article 13: 
(a) How is the obligation of Article 13 (last sen tence) being dealt with in the respective 
legislation? 
Article 264 of the Customs Code stipulates that the declared customs va lue of goods needs to 
be specified or if the declarant does not agr ee with the customs value determined by the 
customs body, the declarant shall be entitled to  request the customs body to release the 
declared goods in free circulation against the gua rantee of the authorized bank or pay taxes 
and duties (obligatory payments) in accordan ce with the customs value of these goods 
determined by the customs body. G/VAL/N/2/UKR/1 
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  (b) Have additional explana tions been laid down? 
Article 264 of the Customs Code stipulates that  the term of guarantee obligations may not 
exceed 90 calendar days from the moment of releasing the goods in free circulation.  After bank’s issuing guarantees, the customs body shall be obliged to release the goods in free 
circulation. If after declarant’s paying tax es and duties (obligatory payments) in accordance 
with the customs value of the goods determin ed by the customs body a decision is approved 
to apply the customs value declared by the d eclarant, the excess amount of paid taxes and 
duties (obligatory payments) shall be refunde d to the declarant within one month after 
approving the decision in accordance with  the procedure stipulated by law.  
 
Additional costs incurred by the declarant in connection with specifying the customs value 
declared by them or submitting additional info rmation to the customs body shall be paid by 
the declarant. 
 12. Questions concerning Article 16: 
(a) Does the respective national legislation contai n a provision requiring customs authorities to 
give an explanation in writing as to how the customs value was determined? 
Article 264 of the Customs Code stipulates th at, upon declarant’s written request, they are 
entitled to receive, within one week from the da y of the request, a written explanation as to 
how the customs body determined the cu stoms value of the valuated goods.  
 
(b) Are there any further regulations concerning an above-mentioned request? 
There are no additional rules concerning the above-mentioned request. 
 
13. How have the Interpretative Notes of the Agreement been included? 
The Executive Order of the State Customs Service of 31.01.07 No. 74 approved 
methodological recommendations for applying some provisions of the Customs Code regarding the issues of determining the customs value of goods im ported in the customs territory of Ukraine that 
take into consideration the provisions of the E xplanatory Notes to the Agreement on Implementation 
of Article VII of GATT.  14. How have the provisions of the Decision on the Treatment of Interest Charges in the 
Customs Value of Imported Goods been implemented? 
The Regulation on the Decision on the Treatment of  Interest Charges in the Customs Value of 
Imported Goods (VAL/6/Rev.1) on non-inclusion in th e customs value of the good of the costs related 
to interest on financial operations to which the buye r is a party in connection with the purchase of the 
good was taken into consideration in Article 267 of the Customs Code: "Dividends or other payments 
by the purchaser for the benefit of the seller unrelated  to the valuated goods shall not be part of the 
customs value.” 
 
Also, paragraph 3.4. of the Executive Order stipul ates: "...the term "the price that was actually 
paid or is payable" used in the first passage of Article 267 of the Customs Code of Ukraine shall refer 
only to the price of the valuated goods. As such , flows of dividends or other payments from the 
purchaser to the seller that do not concern the imported goods shall not be part of the customs value of 
these goods.”   G/VAL/N/2/UKR/1 
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  15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing E quipment, how have the provisions of this 
paragraph been implemented? 
On 05.09.07, the State Customs Service issu ed Executive Order No. 734 “On Introducing 
Changes to the Methodological Recommendations on Applying Some Provisions of the Customs 
Code of Ukraine Concerning the Determination of  the Customs Value of Goods Imported to the 
Customs Territory of Ukraine” that took into consideration the provisions of the Decision on Determining the Customs Value of Data Carrie rs Containing Software for Data Processing 
Equipment. The Executive Order took effect as of the date of its signing. 
 
Also, the State Customs Servi ce issued Executive Order No. 933 of 07.11.07 “On Introducing 
Changes to the Executive Order of the State Cust oms Service of 09.07.97 No. 307” (registered with 
the Ministry of Justice of Ukraine on 29.11.07 No. 1329/14596), which provisions stipulate indicating the customs value of the good denominated in the cu rrency of Ukraine in line 45 of the customs cargo 
declaration. In case goods are transported across the customs border as carries of the results of work 
performed, the line shall contain the customs value of  such carriers without re gard to the value of 
information stored thereon. The Executive Order took effect as of 01.01.08.  
 
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