WORLD TRADE  
ORGANIZATION  G/VAL/N/1/KHM/1 
12 March 2010 
 (10-1334) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
  The following communication, dated 25 February  2010, is circulated at the request of the 
delegation of Cambodia. 
_______________ 
 
 
 The Permanent Mission of the Kingdom of Cambodia has the honor to submit the 
notification, as required by various WTO Agreem ents and Cambodia's accession commitments, on 
customs valuation.  Specifically, the Kingdom of Ca mbodia is submitting Articles 18 to 24 of the Law 
on Customs which was adopted by the National Asse mbly on the 22nd June 2007 and ratified by the 
Senate as to its entire form and legality on the 10th July 2007;  and Prakas No. 387 on "Customs 
Valuation of Imported Goods", including the Annex to the Prakas.    
_______________ 
 
 
THE CUSTOMS LAW 
   
CHAPTER III:  TARIFF CLASSIFICATION, ORIGIN AND CUSTOMS VALUE 
 
Article 18  
Tariff classification, origin and customs value of  imported goods specified on Customs declarations, 
shall be declared in accordan ce with the following rules. 
 
(a) Tariff Classification and Origin 
 
- Any person, importer or his agent, who complete s a customs declaration of imported goods shall 
declare the tariff classification and origin of those goods for the calculation of  duty and tax. Customs 
shall verify the tariff classificati on and origin of the imported goods. 
 
- Any person, importer or his agent, who comple tes a customs declaration of imported goods, must 
comply with the provisions of Articles 51 and Article 52 of this Law.  - Customs may require from any person, importer or his agent, proof, by declaration or the production 
of necessary documents required by Law and ex isting regulations, of the correctness of the 
declaration, and may refuse to release th e goods until such evidence is provided. 
 - Customs may, within 3 years of the date of re gistration of any customs declaration, following an 
audit, investigation, inspection or examination of  the imported goods, re-determine the declared tariff 
classification or origin by issuing a Notice.  Th is notice shall also state the reason for the re-
determination of the tariff classification or origin. G/VAL/N/1/KHM/1 
Page 2  
 
   
- When an audit, investigation, inspection or examination undertaken under this Article finds any 
fraudulent activity, a notice may be issued for the goods under investigation within a period no longer 
than 10 years from the original date of registration of the customs declaration. 
 
- All additional duties and taxes and any other fees and penalties owed as a consequence of the 
Notice, shall be paid to Customs.  - Any refund of duty, taxes, fees and penalties ove rpaid by any person, importer or his agent as a 
consequence of the Notice shall be refunded by Customs. 
 
(b) Customs Value 
 
- Any person, importer or his agent, who complete s a customs declaration shall declare the customs 
value of the imported goods as specified in the pr ovisions of Article 21 of this Law, for the 
assessment of duty and tax. Customs shall verify the declared customs value of the imported goods. 
 - Any person, importer or his agent, who makes a registered declaration of imported goods must 
comply with the provisions of Artic le 51 and Article 52 of this Law. 
 - Any person, importer or his agent is responsible fo r declaration of the accurate customs value for the 
payment of duties and taxes and must disclose a ll information, invoices and other documentation to 
enable Customs to verify and accurately dete rmine the customs value of the imported goods. 
 - Customs may require from any person, importer or his agent, proof, by declaration or the production 
of required documents required by Law and existing regulation, of the correctness of the declaration, 
and may refuse to release the goods until such evidence is provided. 
 - Customs may, within 3 years of the date of re gistration of any customs declaration, following an 
audit, investigation, inspection or examination of the imported goods, re-determine the declared 
customs value by issuing a Notice.  This Notice shal l also state the reason for the re-determination of 
the customs value. 
 
- Customs may amend the declared customs value if th e declared customs value is not consistent with 
the provision of Article 21 of this Law or the de clared customs value is not correct for any other 
reason.  
- When an audit, investigation, inspection or examination undertaken under this Article finds any 
fraudulent activity, the Notice may be issued for the goods under investigation, within a period no 
longer than 10 years from the original date of registration of the customs declaration. 
 
(c) Voluntary declaration of additional duties and taxes or other fees payable 
 
- A person, importer or his agent may make a volunt ary declaration to Customs of additional duties, 
taxes or fees owing in respect of imported goods, wit hout penalties or fines if such a declaration is 
made to Customs within one year of the date of registration of the original customs declaration. 
 
(d) Exporters and exported goods 
 The provisions of Paragraph (a) a nd Paragraph (c) of this Article  apply also to exported goods. 
  G/VAL/N/1/KHM/1 
 Page 3 
 
 
  Article 19 
 
For the purposes of import and export, goods are classi fied and, unless otherwise exempted by this 
Law or any other Law of the Kingdom of Cambodia,  duty and tax are calculated in accordance with 
the Customs Tariff. 
 
The Minister of Economy and Finance shall by Prakas determine provisions in respect of the 
classification of goods.  
Article 20 
 For imports, applicable duties and taxes are collected according to the origin of the goods. 
 The origin of natural products is the country wher e they were extracted from the soil or harvested. 
 
Goods manufactured in a single country, with no co ntribution from materials from another country, 
originate in the country where they are manufactured.  The procedures that the Customs Administration follows in determining the origin of goods produced in one country that use products harvested, extr acted from the soil, or manufactured in another 
country are determined by Prakas of the Minister of Economy and Finance. 
 
Imported goods benefit from the favourable treatment assigned to their origin only if the origin and 
direct transport of the goods from the country of origin to the importing country is properly 
demonstrated. The Minister of Economy and Finan ce may issue the Prakas est ablishing the conditions 
under which proof of origin must be s ubmitted and cases where it is not required. 
 
The country of provenance is the country from whic h the goods were sent directly to the customs 
territory.  
Article 21 
 
The customs value of imported goods shall be de termined in accordance w ith the following rules: 
 (a) The customs value of imported goods shall be the transaction value.  That is, the price 
actually paid or payable for goods when sold for export to Cambodia, subject to the provisions contained in Prakas issued unde r sub-paragraph (h) of this Article. 
 
(b) If the customs value of the imported goods cannot be determined under the provision of sub-
paragraph (a) of this Article, the customs valu e shall be the transaction value of identical 
goods. 
 (c) If the customs value of imported goods cannot be determined under the provisions of sub-
paragraph (a) and sub-para graph (b) of this Article, the customs value shall be the transaction 
value of similar goods. 
 (d) If the customs value of imported goods cannot be determined under the provisions of sub-
paragraph (a), sub-paragraph (b),  and sub-paragraph (c) of this Article, the customs value of 
the imported goods shall be based on a deductive method. 
 (e) If the customs value of imported goods cannot be determined under the provisions of sub-
paragraph (a), sub-paragraph (b),  sub-paragraph (c), and subpara graph (d) of this Article, the 
customs value of imported goods shall be based on a computed method. G/VAL/N/1/KHM/1 
Page 4  
 
   
(f) The order of application of sub-paragraph (d) and sub-paragraph (e) of this Article may be 
reversed at the request of the importer. 
 (g) If the customs value of the imported goods can not be based on the provisions of sub-
paragraph (a) sub-paragraph (b) sub-paragraph (c) sub- paragraph (d) and sub-paragraph (e) of 
this Article, the customs value shall be determ ined by using reasonable means consistent with 
the principles and the provisions as referred to in  subparagraphs (a) (b) (c) (d) and (e) of this 
Article on the basis of available data in the Customs Territory subject to certain limitations. 
 
(h) The Minister of Economy and Finance shall issue a Prakas to determine all matters related to 
the determination of customs value. 
 
Article 22 
 
The customs value of exported goods shall be the value of the goods at the point of exit. 
 This customs value is determined by adding to the price of the goods, expenses for transport as well as 
all expenses needed to carry out the export operati on up to the frontier, excluding export taxes payable 
upon exit, domestic taxes and similar levies, fo r which the exporter has been given a receipt. 
 Article 23  
The customs value of imported and exported goo ds shall be declared in riel currency. 
 When an amount is expressed in a currency other th an Cambodian currency, the exchange rate to be 
applied is the rate determined by the National Bank of Cambodia. 
 When the exchange rate is not on the list of ex change rates of the National Bank of Cambodia, 
Customs may determine the rate.  The exchange rate to be applied is  the exchange rate in use on th e date the Customs declaration is 
registered . 
 
Exchange rates are publicly displayed by Customs. 
 
Article 24 
 Any person, importer or his agent, who is dissatisfied  with the reasons for or the correctness of the re-
determination of the tariff classification, origin or customs value as provided in the Notice issued 
under the provisions of sub-paragra ph (a) or sub-paragraph (b) of Artic le 18 of this Law may object to 
the decision by writing to the Director of Customs wi thin 30 days of the date the importer or his agent 
receives the Notices of the re-determination of the ta riff classification, origin or the customs value. 
 
In circumstances where the customs value is subject to appeal, the goods shall be released without the 
payment of duties and taxes when the importer pr ovides sufficient security to cover the duties and 
taxes.  
The Director of Customs shall make the decision on the objection referred to in the first paragraph of 
this Article within sixty (60) days after the objec tion is received;  otherwise, the objection shall be 
deemed as accepted and the security returned as appropriate.   G/VAL/N/1/KHM/1 
 Page 5 
 
 
  Any person who objects to any decisions made by the Director of Customs under the first paragraph 
of this Article may file a written appeal to the Customs Tariff Committee.  The organization and functioning of the Customs Tariff Committee shall be determined by Anukret . 
 
An importer or exporter has the right to appeal to the competent court against any decision of the 
Customs Tariff Committee within a period of thirty ( 30) days from, the date of receiving notification 
of that decision.  G/VAL/N/1/KHM/1 
Page 6  
 
  KINGDOM OF CAMBODIA 
Nation Religion King 
 Ministry of Economy and Finance No. 387 MEF.BK 
Phnom Penh, 22 May 2008 
Prakas on 
Customs Valuation of Imported Goods 
 
Senior Minister, 
Minister of Economy and Finance 
 
- Having Seen the Constitution of the Kingdom of Cambodia; 
- Having Seen Reach Kram No NS/RKT/0704/124 da ted 15 July 2004 on the Appointment of the 
Royal Government; 
- Having Seen Reach Kram No 02/NS /94 dated 20 July 1994 promulgating the  Law on the 
Establishment and Organization of the Council of Minister; 
- Having Seen Reach Kram No 02/NS/RKM/0196/18  Dated 24 January 1996 promulgating the Law 
on the Establishment of the Ministry of Economy and Finance; 
-  Having Seen Reach Kram No NS/RKM/0707/017  dated 20 July 2007 promulgating the Law on 
Customs; 
-  Having Seen Anukret No. 04 ANKR.BK dated 20 January 2000 on the Establishment and 
Organization of the Ministry of Economy and Finance; 
-  Pursuant to the priority task of the Ministry of Economy and Finance;  
HEREBY DECIDES 
 
Chapter I 
 
Definitions 
 
Praka 1  
 For the purposes of this Prakas: 
 Brokerage means a cost or an amount charged by brokers or middlemen working to promote a 
transaction and often not clearly labelled as representativ es of either party. A br okerage charge is only 
included to the extent that it relates to the sale 
being valued.  Buying commission means a fee paid or payable by the buyer to the buyer's agent for the service of 
representing the buyer overseas in resp ect of the purchase of the goods. 
 
Computed value means the value determined in accordan ce with Chapter VII of this Prakas. 
 Deductive value means the value determined in accordan ce with Chapter VI of this Prakas. 
 Fee means any cost, charge, payment or amount paid or payable in respect of a debt. 
 
General expenses means the direct and indirect  costs, charges, and expe nses of producing and selling 
goods for export to Cambodia.  Goods of the same class or kind means imported goods that:  G/VAL/N/1/KHM/1 
 Page 7 
 
 
  (a) Are within a group or range of imported goods pr oduced by a particular industry or industry 
sector that includes identical goods or similar goods in relation to the goods being valued;  
and 
 (b) For the purposes of: 
 
i) Chapter VI, were exported from any country;  and 
 
ii) Chapter VII, were produced in and exporte d from the country in and from which the 
goods being valued were produced and exported. 
 
Identical goods means imported goods that: 
 (a) Are the same in all respects, in cluding physical characteristics, quality, and reputation, as the 
goods being valued, except for minor differences in  appearance that do not affect the value of 
the goods;  and 
 (b) Were produced in the country in which th e goods being valued were produced;  and 
 (c) Were produced by or on behalf of the person who produced the goods being valued, but does 
not include imported goods where engineering, development work, artwork, design work, 
plans, or sketches undertaken in Cambodia were su pplied, directly, or indirectly, by the buyer 
of those imported goods free of charge or at a reduced cost for use in connection with the production and sale for export of those imported goods. 
 Price actually paid or payable in relation to any goods means the sum of all amounts actually paid 
or payable by the buyer to or for the benefit of the seller in respect of the goods. 
 To produce includes to grow, to manufacture, and to mine. 
 Selling commission means a fee paid or payable by the selle r to the seller's agent for the service of 
representing the seller overseas in respect of the sale of the goods. 
 
Similar goods means imported goods that: 
 (a) Closely resemble the goods being valued in r espect of component materials and parts and 
characteristics and are functionally and commerc ially interchangeable with the goods being 
valued having regard to the quality and reputa tion of the goods and the goods being valued 
and 
 (b) Were produced in the country in which th e goods being valued were produced; and 
 (c) Were produced by or on behalf of the person who produced the goods being valued : but does 
not include imported goods where engineering, development work, artwork, design work, 
plans, or sketches undertaken in Cambodia were su pplied, directly or indirectly by the buyer 
of those imported goods free of charge or at a reduced cost for use in connection with the production and sale for export of those imported goods. 
 
Sufficient information in respect of the determination of any amount, difference, or adjustment, 
means objective and quantifiable information that clearly establishes the accuracy of the amount, 
difference, or adjustment.  G/VAL/N/1/KHM/1 
Page 8  
 
  Transaction value means the value determined in accordance with Chapte rs II and Chapters III of 
this Prakas.  
Praka 2  
 
For the purposes of this Prakas, persons sh all be deemed to be related only if: 
 (a) They are officers or directors of one another's business;  or 
 (b) They are legally recognized partners in business;  or 
 
(c) They are employer and employee;  or 
 (d) Any person directly or indirectly owns, cont rols, or holds 5 percent or more of the 
outstanding voting stock or shares of both of them;  or 
 
(e) One of them directly or indirectly controls the other;  or 
 (f) Both of them are directly or indirectly controlled by a third person;  or 
 (g) Together they directly or indirectly control a third person;  or 
 
(h) They are members of the same family. 
 
Praka 3  
 
For the purposes of this Prakas, charges for interest  under a financing arrangement entered into by the 
buyer and relating to the purchase of imported goods shall not be regarded as part of the Customs 
value where:  (a) The charges are distinguished from the price actually paid or payable for the goods;  and  
 
(b) Such goods are actually sold at the price declar ed as the price actually paid or payable;  and 
 (c) The buyer, if required, can demonstrate that: 
 
i) The financing arrangement was made in writing: 
 
ii) The claimed rate of interest does not exceed  the level for such transactions prevailing 
in the country where, and at the time when, the finance was provided. 
 
Chapter II 
 
Transaction value as primary basis of valuation 
 Praka 4   
The Customs value of imported goods shall be their transaction value, that is, the price actually paid 
or payable for the goods when sold for export to Cambodia, adjusted in acco rdance with Chapter III 
of this Prakas, if:  (a) There are no restrictions respecting the dispositio n or use of the goods by the buyer, other 
than restrictions that:  G/VAL/N/1/KHM/1 
 Page 9 
 
 
   
i) Are imposed by law or the competent Authority of Cambodia;  or 
ii) Limit the geographical area in which the goods may be resold;  or 
iii) Do not substantially affect the value of the goods;  or 
 
(b) The sale of the goods or the price actually paid  or payable for the goods is not subject to some 
 condition or consideration in respect of which a value cannot be determined;  or  
 (c) The buyer and seller of the goods are not relate d at the time the goods are sold for export or, 
 where the buyer and seller are related at that time, 
 
i) Their relationship did not influence the price actually paid or payable for the goods;  or 
 
ii) The importer demonstrates that the tr ansaction value of the goods meets the 
requirements set out in Article 5 of this Chapter. 
 
Praka 5  
 
In a sale between related persons, for the purpose of  showing that the relationship did not influence 
the transaction value, the importer shall produce evidence that the transaction value of the goods 
being valued, closely approximates the Customs value of other goods exported at the time or 
substantially at the same time as  the goods being valued, being 
 (a) The transaction value of identical goods or similar goods in respect of a sale of those goods 
for export to Cambodia between a seller and buyer w ho are not related at the time of the sale;  
or 
 
(b) The deductive value of identical or similar goods  determined in accordance with Chapter VI 
of this Prakas;  or 
 (c) The computed value of identical or similar goods  determined in accordance with Chapter VII 
of this Prakas. 
 
Praka 6  
 
Where the relationship between the buyer and seller of the goods is considered to have influenced the 
price actually paid or payable, the Customs shall info rm the importer of the reasons, in writing, if so 
requested and shall provide the importer the opportuni ty to satisfy the Customs that the relationship 
did not influence the price.  
Praka 7 
 
Where Article 5 of this Chapter applies, the importer shall provide the following information: 
 
(a) The nature of the goods being valued; 
 
(b) The nature of the industry that produces the goods being valued; 
 
(c) The season in which the goods being valued are imported; 
 (d) Whether a difference in values is commercially significant; 
 (e) The trade levels at which the sales take place; G/VAL/N/1/KHM/1 
Page 10  
 
   
(f) The quantity levels of the sales; 
 (g) Any of the amounts referred to in Chapter III of this Prakas; 
 
(h) The costs, charges, or expenses incurred by a seller when the seller sells to a buyer to whom 
the seller is not related that are not incurred wh en the seller sells to a buyer to whom the seller 
is related. 
 
Praka 8  
 If the Customs value cannot be determined under this Chapter, or if Customs has reason to doubt the 
truth or accuracy of the declared Customs value an d, after having sought further explanation or other 
evidence the Customs is still not satisfied that the Customs value can be determined under this 
Chapter. The Customs, in accord ance with the Article 21 of the Law on Customs, may determine the 
Customs value of the goods by proceeding sequentially through Chapters IV to Chapters VIII of this 
Prakas to the first such Chapter of this Prakas under which the Customs value can be determined. 
 
Praka 9  
 
On the written request of the importer, the order of consideration of the valuation basis provided for in 
Chapters VI and Chapters VII of this Prakas shall be reversed in accordance with paragraph (f) Article 
21 of the Law on Customs.  
Chapter III 
 
Adjustment of price actually paid or payable 
 Praka 10   
In determining the transaction value of goods under Ch apter II of this Prakas, the price actually paid 
or payable for the goods shall be adjusted: 
 
(a) By adding amounts, to the extent that each such amount is not otherwise included in the price 
 actually paid or payable for the goods and is determined on the basis of sufficient  information, equal to : 
 
i) Commissions and brokerage, except buying commissions in respect of the goods 
incurred by the buyer, other than fees paid or  payable by the buyer to the buyer's agent 
for the service of representing the buyer overseas in respect of the purchase of the goods;  and 
 
ii) The packing costs and charges incurred by th e buyer in respect of the goods, including 
the cost of cartons, cases, and other contai ners and coverings that are treated for 
customs purposes as being part of the im ported goods and all expenses of packing 
incidental to placing the goods in the condition in which they are shipped to Cambodia;  
and 
 
iii) The value of any of the following goods and services: 
 
a. Materials, component parts, and other g oods incorporated in the imported goods; 
 b. Tools, dies, moulds, and other goods utili zed in the production of the imported goods;  G/VAL/N/1/KHM/1 
 Page 11 
 
 
   
c. Materials consumed in the production of the imported goods; 
 d. Engineering, development work, artwork, design work, plans, and sketches undertaken 
elsewhere than in Cambodia and necessary  for the production of the imported goods, 
determined in accordance with Article 11 of th is Prakas, that are supplied, directly or 
indirectly, by the buyer free of charge or at  a reduced cost for use in connection with 
the production and sale for export of the imported goods, apportioned to the imported 
goods in a reasonable manner and in accord ance with generally accepted accounting 
principles; 
 
iv) Royalties and licence fees, including payments  for patents, tradem arks, and copyrights 
in respect of the imported goods that the buyer must pay, directly or indirectly, as a condition of the sale of the goods for export to  Cambodia, exclusive of charges for the 
right to reproduce the imported goods in Cambodia;  
 
v) The value of any part of the proceeds of any subsequent resale, disposal, or use of the 
goods by the buyer that accrues or is to accrue, directly or indirectly, to the seller;  and 
 
vi) The costs of transportation and insurance of , and the loading, unloading, and handling 
charges, and other charges and expenses as sociated with the transportation of, the 
imported goods until the goods have arrived in Cambodia: 
 (b) By deducting amounts, equal to any of the fo llowing costs, charges, or expenses, provided 
 that they are distinguished from the price actually paid or payable:  
i) Any reasonable cost, charge, or expense that is incurred for the construction, erection, 
assembly, or maintenance of, or technical assistance provided in respect of, the goods after the goods are imported; 
 
ii) Any reasonable cost, charge, or expense that is incurred in respect of the transportation 
or insurance of the goods within Cambodia and any reasonable cost charge, or expense 
associated therewith; 
 
iii) Any Customs duties or other taxes payable in Cambodia. 
 
Praka 11  
 The value of the goods and services described in sub- paragraph (iii) paragraph (a) Article 10 of this 
Prakas shall be determined:  (a) In the case of materials, components, parts and other goods incorporated in the goods being 
valued or any materials consumed in the production of the goods being valued: 
 
i) By ascertaining : 
 a. Their cost of acquisition where they we re acquired by the buyer from a person who was 
not related to the buyer at the time of their acquisition;  or 
 
b. Their cost of acquisition incurred by the person related to the buyer, where the goods 
were acquired by the buyer from a person who was related to the buyer at the time of 
their acquisition but who did not produce them;  or 
 G/VAL/N/1/KHM/1 
Page 12  
 
  c. Their cost of production where they were produced by the buyer or a person related to 
the buyer at the time of their production;  and 
 
ii) By adding: 
 
a. The cost of their transportation to the place of production of the goods being valued, 
and 
 b. The value added to them by any repairs or modifications made to them after they were 
so acquired or produced; 
 
(b) In the case of tools, dies, moulds, and other goods, utilised in the production of the goods 
being valued: 
 
i) By ascertaining: 
 
a. Their cost of acquisition where they we re acquired by the buyer from a person who was 
not related to the buyer at the time they were so acquired;  or 
 b. Their cost of acquisition incurred by the pe rson related to the buyer, where they were 
acquired by the buyer from a person related to the buyer at the time they were so 
acquired but who did not produce them;  or  
 c. Their cost of production where they were produced by the buyer or a person related to 
the buyer at the time of their production;  and 
 
ii) By adding: 
 
a. The cost of their transportation to the place of production of the goods being valued;  
and 
 b. The value added to them by any repairs or modifications made to them after they were 
so acquired or produced;  and 
 
iii) By deducting an amount to account for any pr evious use of the goods made after the 
goods were so acquired or produced; 
 
(c) In the case of engineering, development work, art work, design work, plans and sketches, 
undertaken elsewhere than in Cambodia and n ecessary for the production of the goods being 
valued by ascertaining: 
 
i) Their cost of acquisition or lease, where they  were acquired or leased by the buyer from 
a person who was not related to the buyer and are not generally available to the public;  
or 
 
ii) Their cost of acquisition or lease incurred by the person related to the buyer, where they 
were acquired or leased by the buyer from a person related to the buyer, but who did not produce them and are not generally available to the public;  or 
 
iii) The cost to the public of obtaining them where they are available generally to the 
public;  or   G/VAL/N/1/KHM/1 
 Page 13 
 
 
  iv) The cost of production where they were produced by the buyer or a person related to 
the buyer at the time of their production. 
 
Praka 12  
 
Where any adjustment in terms of this Chapter cannot be made because of the lack of sufficient 
information, the transaction value of the goods bein g valued cannot be determined under Chapter II of 
this Prakas.  
Chapter IV 
 
Transaction value of identical goods as Customs value  
 
Praka 13 
 
Where the Customs value of imported goods cannot be  determined under Chapter II of this Prakas, the 
Customs value of the goods shall be the transaction value of identical goods in respect of a sale of 
those goods for export to Cambodia if that transacti on value is the Customs value of the identical 
goods and the identical goods were exported at the sa me or substantially the same time as the goods 
being valued and were sold under the following conditions:  
(a) To a buyer at the same or substantially the sa me trade level as the buyer of the goods being 
valued;  and 
 (b) In the same or substantially the sa me quantities as the goods being valued. 
 Praka 14   
Where the Customs value of imported goods cannot be  determined under Article 13 of this Prakas 
because identical goods were not sold under the cond itions described in para graph (a) and paragraph 
(b) Article 13 of this Prakas, there shall be subs tituted the value of identical goods sold under any of 
the following conditions: 
 
(a) To a buyer at the same or substantially the sa me trade level as the buyer of the goods being 
valued but in quantities different from the quan tities in which those goods were sold;  or 
 (b) To a buyer at a trade level different from that of the buyer of the goods being valued but in 
the same or substantially the same quantities as the quantities in which those goods were sold;  
or 
 (c) To a buyer at a trade level different from that of the buyer of the goods being valued and in 
quantities different from the quantities in which those goods were sold. 
 Praka 15   
For the purposes of determining the Customs va lue of imported goods under Article 13, the 
transaction value of identical goods shall be adjusted  by adding or deducting amounts to account for: 
 
(a) Commercially significant differences between the co sts, charges, and expenses referred to in 
sub-paragraph (vi) paragraph (a ) Article 10 of this Prakas in respect of the identical goods 
and those costs, charges, and expenses in respect  of the goods being valued due to differences 
in distances and types of transport; 
 G/VAL/N/1/KHM/1 
Page 14  
 
  (b) Where the transaction value is in respect of  identical goods sold under the conditions 
described in any of paragraphs (a) to paragra phs (c) Article 14 of this Prakas, differences in 
the trade levels of the buyers of the identical goods and the goods being valued or the quantities in which the identical goods and the go ods being valued were sold or both, as the 
case may be, if each amount can be determined on the basis of sufficient information.  Where 
any such amount cannot be so determined, the Customs value of the goods being valued shall 
not be determined on the basis of the transacti on value of those identical goods under this 
Chapter. 
 
Praka 16  
 Where, in relation to imported goods being valu ed, there are two or more transaction values of 
identical goods that meet all the requirements set out in Articles 13 and Article 15 of this Prakas or where there is no such transaction value but there are two or more transaction values of identical 
goods sold under the conditions describ ed in any of paragraphs (a) to paragraphs (c) Article 14 of this 
Prakas that meet all the requirements set out in this Chapter that are applicable by virtue of Article 14 
of this Prakas, the Customs value of the goods bei ng valued shall be determined on the basis of the 
lowest such transaction value.  
Chapter V 
 
Transaction value of similar goods as Customs value 
 Praka 17  
Subject to Articles 14 to Articles 16 and Article 18 of this Prakas, where the Customs value of imported goods cannot be determin ed under Chapter IV of this Prakas, the Customs value of the 
goods shall be the transaction value of similar goods in respect of a sale of those goods for export to Cambodia if that transaction value is the Customs value of the similar goods and the similar goods were exported at the same or substantially the same time as the goods being valued and were 
sold under the following conditions:  
(a) To a buyer at the same or substantially the sa me trade level as the buyer of the goods being 
valued;  and 
 (b) In the same or substantially the sa me quantities as the goods being valued. 
 Praka 18  
The Provisions of Articles 12, Articles 13 and Articles 14 of Chapter IV of this Prakas shall apply to 
this Chapter in respect of similar goods as if ever y reference in those Articles to "identical goods" 
were a reference to "similar goods".  
Chapter VI 
 
Deductive value as Customs value 
 Praka 19  
 Subject to Article 8 and Articles 9 of this Prak as, where the Customs value cannot be determined 
under Chapter V of this Prakas, the Customs value of  the goods shall be the deductive value in respect 
of the goods.   G/VAL/N/1/KHM/1 
 Page 15 
 
 
  Praka 20  
 
Where the goods being valued or identical goods or similar goods are sold in Cambodia in the 
condition in which they were imported at or a bout the same time as the time of importation of the 
goods being valued, the deductive value of the goods  being valued shall be the price per unit in 
respect of sales described in Article 23 of this Prak as determined in accordance with that Article and 
adjusted in accordance with Article 24 of this Prak as, at which the greatest number of units of the 
goods being valued or identical goods or similar goods are so sold.  
Praka 21  
 Where the goods being valued or identical goods or similar goods are sold in Cambodia in the 
condition in which they were imported before the e xpiration of 90 days after the importation of the 
goods being valued but are not so sold at or about the same time as the time of that importation, the deductive value of the goods being valued shall be the price per unit in respect of sales described in 
Article 23, determined in accordance with that Artic le and adjusted in accordance with Article 24, at 
which the greatest number of units of the goods be ing valued or identical goods or similar goods are 
so sold at the earliest date after the importation of the goods being valued.  
Praka 22 
 
Where the goods being valued or identical goods or  similar goods are not sold in Cambodia in the 
circumstances described in Article 20 or Artic le 21, but the goods being valued, after being 
assembled, packaged, or further pr ocessed in Cambodia, are sold in Cambodia before the expiration of 
90 days after importation and the importer of the g oods being valued requests that this Article be 
applied in the determination of the Customs valu e of those goods, the deductive value of the goods 
being valued shall be the price per unit, in respect  of sales described in Article 23, determined in 
accordance with that Article and ad justed in accordance with Article 24, at which the greatest number 
of units of the goods being valued are so sold.  
Praka 23  
 
For the purposes of Articles 20, Articles 21 and Articl es 22, the price per unit in respect of any goods 
being valued or identical goods or similar goods, sh all be determined by ascertaining the unit price in 
respect of sales of the goods at the first trade level after their importation to persons who:   (a) Are not related to the persons from whom they buy the goods at the time the goods are sold to 
them;  and 
 (b) Have not supplied, directly or indirectly, free of charge or at a reduced cost for use in 
connection with the production and sale for export of the goods, any of the goods or services referred to in Chapter 3 Article 10 paragraph (a) sub-pa ragraph (iii) of this Prakas, at which 
the greatest number of units of the goods is sold  where, a sufficient number of such sales have 
been made to permit a determination of the price per unit of the goods. 
 
Praka 24  
 
For the purposes of Articles 20 to 22, the price per unit in respect of any goods being valued or 
identical goods or similar goods, shall be adjust ed by deducting an amount equal to the sum of: 
 (a) An amount, determined in accordance with Article 25, equal to: 
 
i) The amount of commission generally earned on a unit basis;  or G/VAL/N/1/KHM/1 
Page 16  
 
   
ii) The amount for profit and general expenses, in cluding all costs of marketing the goods, 
considered together as a whole, that is generally reflected on a unit basis.  In 
connection with sales in Cambodia of goods of the same class or kind as those goods; 
 
(b) Reasonable costs charges and expenses that ar e incurred in respect of the transportation and 
insurance of the goods within Cambodia and reasonable costs, charges, and expenses 
associated therewith to the extent that an amount  for such costs, charges, and expenses is not 
deducted in respect of general expenses  under paragraph (a) of this Article; 
 
(c) Any Customs duties or other taxes payable in Cambodia, to the extent that an amount for such 
duties and taxes is not deducted in respect of  general expenses under pa ragraph (a) of this 
Article; 
 (d) Where Article 22 applies, the amount of the value added to the goods that is attributable to the 
assembly, packaging, or further processing in Cambodia of the goods, if that amount is 
determined on the basis of sufficient information. 
 
Praka 25  
 
The amount considered to be equal to the amount of commission or the amount for profit and general 
expenses referred to in Article 24 paragraph (a) shall be calculated on a percentage basis and 
determined on the basis of information prepared  in a manner consistent with generally accepted 
accounting principles that is supplied by or on behalf  of the importer of the goods being valued;  or 
where the information supplied is not sufficient, ther e can be an examination of sales in Cambodia of 
the narrowest group or range of goods of the same  class or kind as the goods being valued from which 
sufficient information can be obtained in respect  of the amount of commission or the amount for 
profit and general expens es referred to in Artic le 24 paragraph (a). 
 
Praka 26  
 
Where an amount referred to in Article 24 paragraph (d) in respect of any goods being valued cannot 
be determined on the basis of sufficient inform ation, the Customs value of the goods cannot be 
determined on the basis of the deductive value under Article 22.  
Chapter VII 
 
Computed value as Customs value 
 Praka 27   
Where the Customs value of imported goods cannot be  determined under Chapter VI of this Prakas, 
the Customs value of the goods shall be th e computed value in respect of those goods. 
 
Praka 28  
 
The computed value of the goods being valued is the sum of amounts equal to: 
 
(a) The costs, charges, and expenses incu rred in respect of, or the value of: 
 
i) Materials employed in producing the goods being valued; 
  G/VAL/N/1/KHM/1 
 Page 17 
 
 
  ii) The production or other processing of the goods  being valued, determined on the basis 
of : 
 
a. The commercial accounts of the producer of the goods being valued;  or  
b. Any other sufficient information relating to the production of the goods being valued 
that are supplied by or on behalf of the producer of the goods and prepared in a manner 
consistent with the generally accepted accounting principles of the country of 
production of the goods being valued, includi ng, without limiting the generality of the 
foregoing, 
 
iii) The costs, charges, and expenses referred to in sub-paragraph (ii) paragraph (a) Article 
10 of this Prakas: 
 
iv) The value of any of the goods and services re ferred to in subpara graph (iii) paragraph 
(a) Article 10 of this Prakas, determined and apportioned to the goods being valued as 
referred to in that Chapter, whether or not  such goods and services have been supplied 
free of charge or at a reduced cost: 
 
v) (v) The costs, charges, and expenses incurred by  the producer in respect of engineering, 
development work, artwork, design work. pl ans, or sketches undertaken in Cambodia 
that were supplied, directly or indirectly , by the buyer of the goods being valued for 
use in the production and sale for export of t hose goods to the extent that such elements 
are charged to the producer of the goods, apportioned to the goods being valued as referred to in Chapter III Article 10 paragra ph (a) sub-paragraph (iii) of this Prakas: 
 
vi) The amount, determined in accordance with Article 29 of this Prakas, for profit and 
general expenses, generally reflected in sal es for export to Cambodia of goods of the 
same class or kind as the goods being valued, made by the producers of the goods to 
buyers in Cambodia who are not related to the producers from whom they buy the goods at the time the goods are sold to them. 
 Praka 29  
The amount of profit and general expenses referred to in paragraph (b) Article 28 of this Prakas shall 
be calculated on a percentage basi s and determined on the basis of information prepared in a manner 
consistent with generally accepta ble accounting principles of the country of production of the goods 
being valued and that is supplied : 
 (a) By or on behalf of the producer of the goods being valued;  or 
 (b) Where the information supplied by or on behalf of the producer of the goods being valued is 
not sufficient information, by an examina tion of sales for export to Cambodia of the 
narrowest group or range of goods of th e same class or kind from which sufficient 
information can be obtained. 
 G/VAL/N/1/KHM/1 
Page 18  
 
  Chapter VIII 
 
Residual basis of valuation 
 Praka 30  
 Where the Customs value of imported goods cannot be  determined under Chapter VII of this Prakas, 
it shall be determined on information available in  Cambodia on the basis of a value derived from the 
methods of valuation set out in Chapters II to VII of  this Prakas interpreted in a flexible manner and 
reasonably adjusted to the extent necessary to  arrive at a Customs value of the goods. 
 
Praka 31 
 
A Customs value shall not be determined on the basis of: 
 
(a) The selling price in Cambodia of goods produced in Cambodia;  or 
 (b) A basis which provides for the acceptance of th e higher of 2 alternative values;  or 
 (c) The price of goods on the domestic market of the country of exportation;  or 
 
(d) The cost of production, other than computed valu es that have been determined for identical or 
similar goods in accordance with Chapter VII of this Prakas;  or 
 (e) The price of goods for export to a country other than Cambodia, unless the goods were 
imported into Cambodia;  or 
 
(f) Minimum customs values;  or 
 (g) Arbitrary or fictitious values. 
 
Chapter IX 
 
Transitional Provisions 
 Praka 32   
In accordance with the provision of Article 78 of  the Law on Customs, Agreement on implementation 
of Article 7 of the General Agr eement on Tariffs and Trade 1994 and the interpretative notes of the 
agreement which is the Annex of this Prakas, th e Customs and Excise Department may request for 
approval from the Ministry of Economy and Finance in  order to temporally delay the implementation 
of fully or partially the provision of this Prakas on some imported goods which the Customs and Excise Department consider as the sensitive goods or high risk goods. 
 
Chapter X 
 
Final Provisions 
 
Praka 33 
 
Delegate of the Royal Government in charge of Customs and Excise Department, Secretary General, 
Director of Cabinet, Director of the Department  and involved units within the Ministry of Economy  G/VAL/N/1/KHM/1 
 Page 19 
 
 
  and Finance; including personnel and institutions co ncerned shall carry out the provisions of the s 
effectively from the signatory date.  
Senior Minister, 
 
Minister of Economy and Finance 
 
Signature 
 
C.C : Keat Chhon 
 - Ministry of the Royal palace 
- Secretariat General of the Senate -  Secretariat General of the National Assembly -  Cabinet of Samdech Akka Moha Sena Padei T echo Hun Sen Prime Minister of the Kingdom of 
Cambodia 
- Council of Ministers "To be informed" -  Customs and Excise Department -  As Praka 33 -  Cambodia Chamber of Commerce "For pub licized cooperation and implementation" 
-  Official Journal 
-  Document - Archive 
 G/VAL/N/1/KHM/1 
Page 20  
 
  ANNEX 
Of Prakas No 387 MEF.BK Dated: 22 May 2008 
On the Customs Valuation of Imported Goods 
AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 AND 
THE INTERPRETATIVE NOTES 
 
AGREEMENT ON IMPLEMENTATION OF  ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994  
General Introductory Commentary 
 
1. The primary basis for customs value under this Agreement is "transaction value" as defined in 
Article 1.  Article 1 is to be read together with Article 8 which provides, inter alia , for adjustments to 
the price actually paid or payable in cases where certain specific elements which are considered to 
form a part of the value for customs purposes are incurred by the buyer but are not included in the 
price actually paid or payable for the imported goods.  Article 8 also provides for the inclusion in the transaction value of certain considerations which ma y pass from the buyer to the seller in the form of 
specified goods or services rather than in the form of money.  Articles 2 th rough 7 provide methods of 
determining the customs value whenever it cannot be  determined under the provisions of Article 1. 
 
2. Where the customs value cannot be determined  under the provisions of Article 1 there should 
normally be a process of consultation between the cu stoms administration and importer with a view to 
arriving at a basis of value under the provisions of Artic le 2 or 3.  It may occur, for example, that the 
importer has information about the customs value of  identical or similar imported goods which is not 
immediately available to the customs administration in  the port of importation.  On the other hand, the 
customs administration may have information about th e customs value of identical or similar imported 
goods which is not readily available to the importe r.  A process of consultation between the two 
parties will enable information to be exchange d, subject to the requirements of commercial 
confidentiality, with a view to determining a proper basis of value for customs purposes. 
 3. Articles 5 and 6 provide tw o bases for determining the customs value where it cannot be 
determined on the basis of the transaction value of the imported goods or of identical or similar 
imported goods. Under paragr aph 1 of Article 5 the customs value is determined on the basis of the 
price at which the goods are sold in the condition as imported to an unrelated buyer in the country of 
importation. The importer also has the right to  have goods which are further processed after 
importation valued under the provisions of Article 5 if  the importer so requests.  Under Article 6 the 
customs value is determined on the basis of the co mputed value.  Both these methods present certain 
difficulties and because of this the importer is given th e right, under the provis ions of Article 4, to 
choose the order of application of the two methods.  4. Article 7 sets out how to determine the custom s value in cases where it cannot be determined under 
the provisions of any of the preceding Articles. 
 
General Introductory Commentary (contd.) Members, Having regard to the Multilateral Trade 
Negotiations;  Desiring to further the objectives of GATT 1994 and to secure  additional benefits for the international 
trade of developing countries; 
 Recognizing the importance of the provisions of Article  VII of GATT 1994 and desiring to elaborate 
rules for their application in order to provide great er uniformity and certainty in their implementation; 
  G/VAL/N/1/KHM/1 
 Page 21 
 
 
  Recognizing the need for a fair, uniform and neutral system for the valuation of goods for customs 
purposes that precludes the use of arbitr ary or fictitious customs values;  
 Recognizing that the basis for valuation of goods for cu stoms purposes should, to the greatest extent 
possible, be the transaction value of the goods being valued; 
 
Recognizing that customs value should be based on simp le and equitable criteria consistent with 
commercial practices and that valuation procedur es should be of general application without 
distinction between sources of supply; Recognizing that valuation procedures should not be used to combat dumping; 
 
Hereby agree as follows: 
 
General Note 
 
Sequential Application of Valuation Methods 
 
1. Articles 1 through 7 define how the customs valu e of imported goods is to be determined under the 
provisions of this Agreement. The methods of valuation are set out in a sequential order of 
application. The primary method for customs valua tion is defined in Article 1 and imported goods are 
to be valued in accordance with the provisions of  this Article whenever the conditions prescribed 
therein are fulfilled. 
 2. Where the customs value cannot be determined under the provisions of Article 1, it is to be 
determined by proceeding sequentially through the succeeding Articles to the first such Article under 
which the customs value can be determined. Except  as provided in Article 4, it is only when the 
customs value cannot be determined under the provisions  of a particular Article that the provisions of 
the next Article in the sequence can be used.  3. If the importer does not request that the order of Articles 5 and 6 be reversed, the normal order of the sequence is to be followed. If the importer do es so request but it then proves impossible to 
determine the customs value under the provisions of Ar ticle 6, the customs value is to be determined 
under the provisions of Article 5, if it can be so determined. 
 4. Where the customs value cannot be determined unde r the provisions of Articles 1 through 6 it is to 
be determined under the provisions of Article 7. 
 Use of Generally Accepted Accounting Principles  
1. "Generally accepted accounting principles" refe rs to the recognized consensus or substantial 
authoritative support within a country at a partic ular time as to which economic resources and 
obligations should be recorded as assets and liab ilities, which changes in assets and liabilities should 
be recorded, how the assets and liabilities and changes in them should be measured, what information 
should be disclosed and how it should be disclo sed, and which financial statements should be 
prepared. These standards may be broad guidelines of general application as well as detailed practices 
and procedures.  2. For the purposes of this Agreement, the cu stoms administration of each Member shall utilize 
information prepared in a manner consistent with  generally accepted accounting principles in the 
country which is appropriate for the Article in questi on. For example, the determination of usual profit 
and general expenses under the provisions of Artic le 5 would be carried out utilizing information 
prepared in a manner consistent with generally  accepted accounting principles of the country of 
importation. On the other hand, the determinati on of usual profit and general expenses under the G/VAL/N/1/KHM/1 
Page 22  
 
  provisions of Article 6 would be carried out utiliz ing information prepared in a manner consistent 
with generally accepted accounting principles of the c ountry of production. As a further example, the 
determination of an element provided for in paragra ph 1 (b) (ii) of Article 8 undertaken in the country 
of importation would be carried out utilizing inform ation in a manner consistent with the generally 
accepted accounting principles of that country. 
 
RULES ON CUSTOMS VALUATION 
 Article 1  
1. The customs value of imported goods shall be the tr ansaction value, that is the price actually paid 
or payable for the goods when sold for export to the country of importation adjusted in accordance 
with the provisions of Article 8, provided:  (a) that there are no restrictions as to the disposition or use of the goods by the buyer other than 
restrictions which: 
 
i) are imposed or required by law or by the public authorities in the country of 
importation; 
 ii) limit the geographical area in which the goods may be resold;  or 
 
iii) do not substantially affect the value of the goods ; 
 
(b) that the sale or price is not subject to some condition or consideration for which a value 
cannot be determined with respect to the goods being valued; 
 
(c) that no part of the proceeds of any subsequent  resale, disposal or use of the goods by the 
buyer will accrue directly or indirectly to th e seller, unless an appropriate adjustment can be 
made in accordance with the provisions of Article 8;  and 
 (d) that the buyer and seller are not related, or wh ere the buyer and seller are related, that the 
transaction value is acceptable for customs pur poses under the provisions of paragraph 2. 
 2. (a) In determining whether the transaction value is acceptable for the purposes of paragraph 1, the 
fact that the buyer and the seller are related with in the meaning of Article 15 shall not in itself 
be grounds for regarding the transaction va lue as unacceptable.  In such case the 
circumstances surrounding the sale shall be ex amined and the transaction value shall be 
accepted provided that the relationship did not in fluence the price.  If, in the light of 
information provided by the importer or otherwise, the customs administration has grounds  for considering that the relationship influenced  the price, it shall communicate its grounds to 
the importer and the importer shall be given a reasonable opportunity to respond.  If the 
importer so requests, the communication of the grounds shall be in writing. 
 
(b) In a sale between related pers ons, the transaction value shall be  accepted and the goods valued 
in accordance with the provisions of paragra ph 1 whenever the importer demonstrates that 
such value closely approximates to one of the following occurring at or about the same time: 
 
i) the transaction value in sales to unrelated buyers of identical or similar goods for 
export to the same country of importation; 
 
ii) the customs value of identical or simila r goods as determined under the provisions of 
Article 5;   G/VAL/N/1/KHM/1 
 Page 23 
 
 
   
iii) the customs value of identical or simila r goods as determined under the provisions of 
Article 6;   
 
In applying the foregoing tests, due account sh all be taken of demons trated differences in 
commercial levels, quantity levels, the elements enumerated in Article 8 and costs incurred by 
the seller in sales in which the seller and the buye r are not related that are not incurred by the 
seller in sales in which the seller and the buyer are related. 
 
iv) The tests set forth in paragraph 2 (b) are to be used at the initiative of the importer and 
only for comparison purposes. Substitute va lues may not be established under the 
provisions of paragraph 2 (b). 
 
Note to Article 1 
 
Price Actually Paid or Payable 
 
1. The price actually paid or payable is the total payment made or to be made by the buyer to or for 
the benefit of the seller for the imported goods. The payment need not necessarily take the form of a 
transfer of money. Payment may be made by way of letters of credit or negotiable instruments. 
Payment may be made directly or indirectly. An example of an indirect payment would be the 
settlement by the buyer, whether in whole or in part, of a debt owed by the seller. 
 2. Activities undertaken by the buyer on the buye r's own account, other than those for which an 
adjustment is provided in Article 8, are not consider ed to be an indirect payment to the seller, even 
though they might be regarded as of benefit to the seller. The costs of such activities shall not, 
therefore, be added to the price actually paid or payable in determining the customs value. 
 3. The customs value shall not include the follo wing charges or costs, provided that they are 
distinguished from the price actually paid or payable for the imported goods:  (a) charges for construction, erection, assembly, ma intenance or technical assistance, undertaken 
after importation on imported goods such as i ndustrial plant, machinery or equipment; 
 (b) the cost of transport after importation; 
 (c) duties and taxes of the country of importation. 
 
4. The price actually paid or payable refers to the price for the imported goods.  Thus the flow of 
dividends or other payments from the buyer to the seller that do not relate to the imported goods are 
not part of the customs value.  
Paragraph 1 (a) (iii) 
 Among restrictions which would not render a price actually paid or payable unacceptable are 
restrictions which do not substantially affect the va lue of the goods. An example of such restrictions 
would be the case where a seller requires a buyer of au tomobiles not to sell or exhibit them prior to a 
fixed date which represents the beginning of a model year. 
 G/VAL/N/1/KHM/1 
Page 24  
 
  Paragraph 1 (b) 
 
1. If the sale or price is subject to some cond ition or consideration for which a value cannot be 
determined with respect to the goods being valu ed, the transaction value shall not be acceptable for 
customs purposes. Some examples of this include: 
 
(a) the seller establishes the price of the imported go ods on condition that the buyer will also buy 
other goods in specified quantities; 
 (b) the price of the imported goods is dependent upon the price or prices at which the buyer of 
the imported goods sells other goods to  the seller of the imported goods; 
 (c) the price is established on the basis of a form  of payment extraneous to the imported goods, 
such as where the imported goods are semi-finish ed goods which have been provided by the 
seller on condition that the seller will receive a specified quantity of the finished goods. 
 
2. However, conditions or consid erations relating to the producti on or marketing of the imported 
goods shall not result in rejection of the transacti on value.  For example, the fact that the buyer 
furnishes the seller with engineering and plans und ertaken in the country of importation shall not 
result in rejection of the transaction value for the purposes of Article 1.  Likewise, if the buyer undertakes on the buyer's own account, even though by ag reement with the seller, activities relating to 
the marketing of the imported goods, the value of the se activities is not part of the customs value nor 
shall such activities result in rej ection of the transaction value. 
 
Paragraph 2 
 
1. Paragraphs 2 (a) and 2 (b) pr ovide different means of establishi ng the acceptability of a transaction 
value.  2. Paragraph 2 (a) provides that where the buye r and the seller are related, the circumstances 
surrounding the sale shall be examined and the tran saction value shall be accepted as the customs 
value provided that the relationship did not influence th e price.  It is not intended that there should be 
an examination of the circumstan ces in all cases where the buyer a nd the seller are related. Such 
examination will only be required where there are doubt s about the acceptability of the price.  Where 
the customs administration have no doubts about th e acceptability of the price, it should be accepted 
without requesting further information from the importer.  For example, the customs administration may have previously examined the relationship,  or it may already have detailed information 
concerning the buyer and the seller, and may al ready be satisfied from such examination or 
information that the relationship did not influence the price.  3. Where the customs administration is unable to accept the transaction value without further inquiry, 
it should give the importer an opportunity to supp ly such further detailed information as may be 
necessary to enable it to examine the circumstances surrounding the sale.  In this context, the customs 
administration should be prepared to examine releva nt aspects of the transaction, including the way in 
which the buyer and seller organize their commercia l relations and the way in which the price in 
question was arrived at, in order to determine whethe r the relationship influenced the price. Where it 
can be shown that the buyer and seller, although related under the provisions of Article 15, buy from 
and sell to each other as if they were not related, this would demonstrate that the price had not been 
influenced by the relationship. As an example of  this, if the price had been settled in a manner 
consistent with the normal pricing practices of the industry in question or with the way the seller settles prices for sales to buyers who are not related to  the seller, this would demonstrate that the price 
had not been influenced by the relationship.  As a further example, where it is shown that the price is 
adequate to ensure recovery of all costs plus a pr ofit which is representative of the firm's overall profit  G/VAL/N/1/KHM/1 
 Page 25 
 
 
  realized over a representative peri od of time (e.g. on an annual basis) in sales of goods of the same 
class or kind, this would demonstrate that the price had not been influenced.  4. Paragraph 2 (b) provides an opportunity for the importer to demonstrate that the transaction value 
closely approximates to a "test" value previously  accepted by the customs administration and is 
therefore acceptable under the provisions of Article 1.  Where a test under paragraph 2 (b) is met, it is 
not necessary to examine the question of influence under paragraph 2 (a). If the customs administration has already sufficient information to  be satisfied, without further detailed inquiries, 
that one of the tests provided in paragraph 2 (b) has been met, there is no reason for it to require the importer to demonstrate that the test can be met. In  paragraph 2 (b) the term "unrelated buyers" means 
buyers who are not related to the seller in any particular case.  
 
Paragraph 2 (b) 
 
A number of factors must be taken into consider ation in determining whether one value "closely 
approximates" to another value. These factors include  the nature of the impor ted goods, the nature of 
the industry itself, the season in which the goods are imported, and, whether the difference in values is 
commercially significant. Since these factors may vary  from case to case, it would be impossible to 
apply a uniform standard such as a fixed percentage, in each case. For example, a small difference in 
value in a case involving one type of goods could be unacceptable while a large difference in a case 
involving another type of goods might be accepta ble in determining whether the transaction value 
closely approximates to the "test" values set forth in paragraph 2 (b) of Article 1. 
 
Article 2 
 
1. (a) If the customs value of the imported goods  cannot be determined under the provisions of 
Article 1, the customs value shall be the transac tion value of identical goods sold for export to 
the same country of importation and exported at  or about the same time as the goods being 
valued. 
 (b) In applying this Article, the transaction va lue of identical goods in a sale at the same 
commercial level and in substantially the same  quantity as the goods being valued shall be 
used to determine the customs value. Where no such sale is found, the transaction value of 
identical goods sold at a different commercial le vel and/or in different quantities, adjusted to 
take account of differences attributable to comme rcial level and/or to qua ntity, shall be used, 
provided that such adjustments can be made on the basis of demonstrated evidence which 
clearly establishes the reasonableness and accuracy of the adjustment, whether the adjustment 
leads to an increase or a decrease in the value. 
 2. Where the costs and charges referred to in para graph 2 of Article 8 are included in the transaction 
value, an adjustment shall be made to take account of significant differences in such costs and charges 
between the imported goods and the identical goods in  question arising from differences in distances 
and modes of transport. 
 
3. If, in applying this Article, more than one tran saction value of identical goods is found, the lowest 
such value shall be used to determine the customs value of the imported goods. 
 
Note to Article 2 
 1. In applying Article 2, the customs administratio n shall, wherever possible,  use a sale of identical 
goods at the same commercial level and in s ubstantially the same quantities as the goods being 
valued. Where no such sale is found, a sale of id entical goods that takes place under any one of the 
following three conditions may be used: G/VAL/N/1/KHM/1 
Page 26  
 
  (a) a sale at the same commercial level but in different quantities; 
(b) a sale at a different commercial level but in  substantially the same quantities;  or 
(c) a sale at a different commercial level and in different quantities. 
 2. Having found a sale under any one of these three c onditions adjustments will then be made, as the 
case may be, for: 
 (a) quantity factors only; 
(b) commercial level factors only; or 
(c) both commercial level and quantity factors. 
 
3. The expression "and/or" allows the flexibility to  use the sales and make the necessary adjustments 
in any one of the three conditions described above.  4. For the purposes of Article 2, the transaction value of identical imported goods means a customs 
value, adjusted as provided for in paragraphs 1 (b) and 2, which has already been accepted under 
Article 1.  5. A condition for adjustment because of different  commercial levels or different quantities is that 
such adjustment, whether it leads to  an increase or a decrease in the value, be made only on the basis 
of demonstrated evidence that clearly establishes th e reasonableness and accuracy of the adjustments, 
e.g. valid price lists containing prices referring to different levels or different quantities.  As an 
example of this, if the imported goods being valued  consist of a shipment of 10 units and the only 
identical imported goods for which a transaction valu e exists involved a sale of 500 units, and it is 
recognized that the seller grants quantity discounts,  the required adjustment may be accomplished by 
resorting to the seller's price list and using that pr ice applicable to a sale of 10 units. This does not 
require that a sale had to have been made in quantities of 10 as long as the price list has been 
established as being bona fide through sales at othe r quantities. In the absence of such an objective 
measure, however, the determination of a custom s value under the provisions of Article 2 is not 
appropriate.  
Article 3 
 1. 
(a) If the customs value of the imported goods ca nnot be determined under the provisions of 
Articles 1 and 2, the customs value shall be the transaction value of similar goods sold for 
export to the same country of importation and e xported at or about the same time as the goods 
being valued. 
 (b) In applying this Article, the transaction value of similar goods in a sale at the same 
commercial level and in substantially the same  quantity as the goods being valued shall be 
used to determine the customs value. Where no such sale is found, the transaction value of 
similar goods sold at a different commercial leve l and/or in different quantities, adjusted to 
take account of differences attributable to comme rcial level and/or to qua ntity, shall be used, 
provided that such adjustments can be made on the basis of demonstrated evidence which 
clearly establishes the reasonableness and accuracy of the adjustment, whether the adjustment 
leads to an increase or a decrease in the value. 
 
2. Where the costs and charges referred to in para graph 2 of Article 8 are included in the transaction 
value, an adjustment shall be made to take account of significant differences in such costs and charges 
between the imported goods and the similar goods in  question arising from differences in distances 
and modes of transport.   G/VAL/N/1/KHM/1 
 Page 27 
 
 
  3. If, in applying this Article, more than one tr ansaction value of similar goods is found, the lowest 
such value shall be used to determine the customs value of the imported goods. 
 
Note to Article 3 
 
1. In applying Article 3, the customs administratio n shall, wherever possible, use a sale of similar 
goods at the same commercial level and in s ubstantially the same quantities as the goods being 
valued. Where no such sale is found, a sale of similar goods that takes place under any one of the following three conditions may be used:  
(a) a sale at the same commercial level but in different quantities; 
(b) a sale at a different commercial level but in  substantially the same quantities;  or 
(c) a sale at a different commercial level and in different quantities. 
 2. Having found a sale under any one of these three c onditions adjustments will then be made, as the 
case may be, for: 
 (a) quantity factors only; 
(b) commercial level factors only;  or 
(c) both commercial level and quantity factors. 
 
3. The expression "and/or" allows the flexibility to  use the sales and make the necessary adjustments 
in any one of the three conditions described above.  4. For the purpose of Article 3, the transacti on value of similar imported goods means a customs 
value, adjusted as provided for in paragraphs 1 (b) and 2, which has already been accepted under 
Article 1. 
 5. A condition for adjustment because of different  commercial levels or different quantities is that 
such adjustment, whether it leads to  an increase or a decrease in the value, be made only on the basis 
of demonstrated evidence that clearly establishes the reasonableness and accuracy of the adjustment, 
e.g. valid price lists containing prices referring to different levels or different quantities. As an 
example of this, if the imported goods being valued  consist of a shipment of 10 units and the only 
similar imported goods for which a transaction valu e exists involved a sale of 500 units, and it is 
recognized that the seller grants quantity discounts,  the required adjustment may be accomplished by 
resorting to the seller's price list and using that pr ice applicable to a sale of 10 units. This does not 
require that a sale had to have been made in quantities of 10 as long as the price list has been 
established as being bona fide through sales at othe r quantities. In the absence of such an objective 
measure, however, the determination of a custom s value under the provisions of Article 3 is not 
appropriate.  
Article 4 
 
If the customs value of the imported goods cannot be determined under the provisions of Articles 1, 2 
and 3, the customs value shall be determined under the provisions of Article 5 or, when the customs 
value cannot be determined under th at Article, under the provisions of Article 6 except that, at the 
request of the importer, the order of appli cation of Articles 5 and 6 shall be reversed. 
 G/VAL/N/1/KHM/1 
Page 28  
 
  Article 5 
 
1. (a) If the imported goods or identical or similar imported goods are sold in the country of 
importation in the condition as imported, the customs value of the imported goods under the 
provisions of this Article shall be based on the unit price at which the imported goods or 
identical or similar imported goods are so sold in the greatest aggregate quantity, at or about 
the time of the importation of the goods being va lued, to persons who are not related to the 
persons from whom they buy such goods, subject to deductions for the following:  
  
i) either the commissions usually paid or agreed  to be paid or the additions usually made 
for profit and general expenses in connecti on with sales in such country of imported 
goods of the same class or kind; 
 
ii) the usual costs of transport and insuran ce and associated costs incurred within the 
country of importation; 
 
iii) where appropriate, the costs and charges referre d to in paragraph 2 of Article 8;  and 
 
iv) the customs duties and other national taxes payable in the country of importation by 
reason of the importation or sale of the goods. 
 
(b) If neither the imported goods nor identical nor similar imported goods are sold at or about the 
time of importation of the goods being valued, th e customs value shall, subject otherwise to 
the provisions of paragraph 1 (a), be based on the unit price at which the imported goods or 
identical or similar imported goods are sold in the country of importation in the condition as 
imported at the earliest date after the importati on of the goods being valued but before the 
expiration of 90 days after such importation. 
 2. If neither the imported goods nor identical nor si milar imported goods are sold in the country of 
importation in the condition as imported, then, if the importer so requests, the customs value shall be 
based on the unit price at which the imported goods, after further processing, are sold in the greatest 
aggregate quantity to persons in the country of im portation who are not related to the persons from 
whom they buy such goods, due allowance being ma de for the value aded by such processing and the 
deductions provided for in paragraph 1 (a). 
 
Note to Article 5 
 1. The term "unit price at which ... goods are sold in the greatest aggregate quantity" means the price 
at which the greatest number of units is sold in sal es to persons who are not re lated to he persons from 
whom they buy such goods at the first commercial level after importation at hich such sales take place.  
2. As an example of this, goods are sold from a price list which grants favourable unit prices 
for purchases made in larger quantities.  G/VAL/N/1/KHM/1 
 Page 29 
 
 
   
Sale quantity  Unit price  Number of sales  Total quantity  
sold at each price  
1-10 units  100  10 sales of 5 units  
5 sales of 3 units  65  
11-25 units  95  5 sales of 11 units  55  
over 25 units  90  1 sale of 30 units  
1 sale of 50 units  80  
 
The greatest number of units sold at a price is 80; therefore, the unit price in the greatest aggregate 
quantity is 90.  3. As another example of this, two sales occur. In the first sale 500 units are sold at a price of 95 
currency units each. In the second sale 400 units are sold  at a price of 90 currency units each.  In this 
example, the greatest number of units sold at a par ticular price is 500; therefore, the unit price in the 
greatest aggregate quantity is 95.  4. A third example would be the following situat ion where various quantities are sold at various 
prices. 
 (a) Sales 
Sale quantity  Unit price  
 40 units  100  
 30 units  90  
 15 units  100  
 50 units  95  
 25 units  105  
 35 units  90  
5 units  100  
 
(b) Totals 
 
Total quantity sold  Unit price  
65  90  
50  95  
60 100  
25 105  
 
In this example, the greatest number of units sold at a particular price is 65; therefore, the unit price in 
the greatest aggregate quantity is 90.  
5. Any sale in the importing country, as described  in paragraph 1 above, to a person who supplies 
directly or indirectly free of charge or at reduced  cost for use in connection with the production and 
sale for export of the imported goods any of the elem ents specified in paragraph 1 (b) of Article 8, 
should not be taken into account in establishi ng the unit price for the purposes of Article 5. 
 6. It should be noted that "profit and general expens es" referred to in paragr aph 1 of Article 5 should 
be taken as a whole. The figure for the purposes of this deduction should be determined on the basis G/VAL/N/1/KHM/1 
Page 30  
 
  of information supplied by or on behalf of the im porter unless the importer's figures are inconsistent 
with those obtained in sales in the country of importa tion of imported goods of the same class or kind. 
Where the importer's figures are inconsistent with such figures, the amount for profit and general expenses may be based upon relevant information othe r than that supplied by or on behalf of the 
importer. 
 
7. The "general expenses" include the direct and i ndirect costs of marketing the goods in question. 
 8. Local taxes payable by reason of the sale of the goods for which a deduction is not made under the 
provisions of paragraph 1 (a) (iv) of Article 5 sha ll be deducted under the pr ovisions of paragraph 1 
(a) (i) of Article 5. 
 9. In determining either the commissions or the usual profits and general expenses under the 
provisions of paragraph 1 of Article 5, the ques tion whether certain goods are "of the same class or 
kind" as other goods must be determined on a case-b y-case basis by reference to the circumstances 
involved. Sales in the country of importation of th e narrowest group or range of imported goods of the 
same class or kind, which includes the goods bei ng valued, for which the necessary information can 
be provided, should be examined. For the purposes of Article 5, "goods of the same class or kind" 
includes goods imported from the same country as the goods being valued as well as goods imported 
from other countries.   
10. For the purposes of paragraph 1 (b) of Article 5, th e "earliest date" shall be the date by which sales 
of the imported goods or of identical or similar imported goods are made in sufficient quantity to establish the unit price.  11. Where the method in paragraph 2 of Article 5 is used, deductions made for the value added by 
further processing shall be based on objective and quantif iable data relating to the cost of such work. 
Accepted industry formulas, recipes, methods of construction, and other industry practices would 
form the basis of the calculations.  12. It is recognized that the method of valuati on provided for in paragra ph 2 of Article 5 would 
normally not be applicable when, as a result of th e further processing, the imported goods lose their 
identity. However, there can be instances where, although the identity of the imported goods is lost, 
the value added by the processing can be determin ed accurately without unreasonable difficulty. On 
the other hand, there can also be instances where the imported goods maintain their identity but form 
such a minor element in the goods sold in the country of importation that the use of this valuation 
method would be unjustified. In view of the above, each situation of  this type must be considered on a 
case-by-case basis.$ 
 
Article 6 
 
1. The customs value of imported goods under the provisions of this Artic le shall be based on a 
computed value. Computed value shall consist of the sum of: 
 
(a) the cost or value of materials and fabrication or other processing employed in producing the 
imported goods; 
 (b) an amount for profit and general expenses equal to that usually reflected in sales of goods of 
the same class or kind as the goods being valued which are made by producers in the country 
of exportation for export to the country of importation; 
 (c) the cost or value of all other expenses necessary to reflect the valuation option chosen by the 
Member under paragraph 2 of Article 8.  G/VAL/N/1/KHM/1 
 Page 31 
 
 
   
2. No Member may require or compel any person not  resident in its own territory to produce for 
examination, or to allow access to, any account or  other record for the purposes of determining a 
computed value. However, information supplied by the producer of the goods for the purposes of 
determining the customs value under the provisions of this Article may be verified in another country 
by the authorities of the country of importation with  the agreement of the producer and provided they 
give sufficient advance notice to the government of the country in question and the latter does not 
object to the investigation.  
Note to Article 6 
 1. As a general rule, customs va lue is determined under this Agr eement on the basis of information 
readily available in the country of importation. In order to determine a computed value, however, it 
may be necessary to examine the costs of producing the goods being valued and other information 
which has to be obtained from outside the country of importation.  Furthermore, in most cases the 
producer of the goods will be outside the jurisdiction of the authorities of the country of importation. 
The use of the computed value method will genera lly be limited to those cases where the buyer and 
seller are related, and the producer is prepared to supply to the authorities of the country of 
importation the necessary costings and to provide f acilities for any subsequent verification which may 
be necessary.  
2. The "cost or value" referred to in paragraph 1 (a) of Ar ticle 6 is to be determined on the basis of 
information relating to the production of the goods being valued supplied by or on behalf of the 
producer. It is to be based upon the commercial ac counts of the producer, provided that such accounts 
are consistent with the generally accepted accounti ng principles applied in the country where the 
goods are produced. 
 
3. The "cost or value" shall include the cost of elem ents specified in paragraphs 1 (a) (ii) and (iii) of 
Article 8. It shall also include the value, apportioned as appropriate under the provisions of the relevant note to Article 8, of any element specified  in paragraph 1 (b) of Article 8 which has been 
supplied directly or indirectly by the buyer for u se in connection with the production of the imported 
goods. The value of the elements specified in paragra ph 1 (b) (iv) of Article 8 which are undertaken in 
the country of importation shall be included only to th e extent that such elements are charged to the 
producer. It is to be understood that no cost or value of the elements referred to  in this paragraph shall 
be counted twice in determining the computed value.  4. The "amount for profit and general expenses" referre d to in paragraph 1 (b) of Article 6 is to be 
determined on the basis of information supplied by  or on behalf of the producer unless the producer's 
figures are inconsistent with those usually reflected  in sales of goods of the same class or kind as the 
goods being valued which are made by producers in  the country of exportation for export to the 
country of importation.  5. It should be noted in this context that the "am ount for profit and general expenses" has to be taken 
as a whole.  It follows that if, in any particular case, the producer's profit figure is low and the 
producer's general expenses are high, the producer's  profit and general expens es taken together may 
nevertheless be consistent with that usually reflect ed in sales of goods of the same class or kind.  Such 
a situation might occur, for example, if a product were being launched in th e country of importation 
and the producer accepted a nil or low profit to offset high general expenses associated with the 
launch.  Where the producer can demonstrate a lo w profit on sales of the imported goods because of 
particular commercial circumstances, the producer's  actual profit figures should be taken into account 
provided that the producer has valid commercial reas ons to justify them and the producer's pricing 
policy reflects usual pricing policies in the branch of industry concerned.  Such a situation might 
occur, for example, where producers have been fo rced to lower prices temporarily because of an G/VAL/N/1/KHM/1 
Page 32  
 
  unforeseeable drop in demand, or where they sell goods to complement a range of goods being 
produced in the country of importation and accept a lo w profit to maintain competitivity.  Where the 
producer's own figures for profit and general expenses are not consistent with those usually reflected 
in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the country of importation, the amount for profit and general 
expenses may be based upon relevant information othe r than that supplied by or on behalf of the 
producer of the goods.  6. Where information other than that supplied by or on behalf of the producer is used for the purposes 
of determining a computed value, the authorities of the importing country shall inform the importer, if 
the latter so requests, of the source of such informa tion, the data used and the calculations based upon 
such data, subject to the provisions of Article 10.  7. The "general expenses" referred to in paragraph 1 (b) of Article 6 covers the direct and indirect 
costs of producing and selling the goods for export which are not included under paragraph 1 (a) of 
Article 6. 
 8. Whether certain goods are "of the same class or kind" as other goods must be determined on a case-
by-case basis with reference to th e circumstances involved. In determining the usual profits and 
general expenses under the provisions of Article 6, sales for export to the country of importation of 
the narrowest group or range of goods, which in cludes the goods being valued, for which the 
necessary information can be provided, should be ex amined. For the purposes of Article 6, "goods of 
the same class or kind" must be from the same country as the goods being valued. 
 
Article 7  
1. If the customs value of the imported goods cannot be determined under the provisions of Articles 1 
through 6, inclusive, the customs value shall be determined using reasonabl e means consistent with 
the principles and general provisions of this Agre ement and of Article VII of GATT 1994 and on the 
basis of data available in the country of importation.  2. No customs value shall be determined under the provisions of this Article on the basis of: 
 
(a) the selling price in the country of importation of goods produced in such country; 
 (b) a system which provides for the acceptance for customs purposes of the higher of two 
alternative values; 
 
(c) the price of goods on the domestic market of the country of exportation;  
 (d) the cost of production other than computed valu es which have been determined for identical 
or similar goods in accordance with the provisions of Article 6; 
 
(e) the price of the goods for export to a country other than the country of importation; 
 (f) minimum customs values;  or 
 (g) arbitrary or fictitious values. 
 
3. If the importer so requests, the importer sha ll be informed in writing of the customs value 
determined under the provisions of this Article and the method used to determine such value. 
  G/VAL/N/1/KHM/1 
 Page 33 
 
 
  Note to Article 7 
 
1. Customs values determined under the provisions of Article 7 should, to the greatest extent possible, 
be based on previously determined customs values.  
2. The methods of valuation to be employed unde r Article 7 should be those laid down in Articles 1 
through 6 but a reasonable flexibility in the applicati on of such methods would be in conformity with 
the aims and provisions of Article 7.  3. Some examples of reasonable flexibility are as follows: 
 
(a) Identical goods - the requirement that the identical goods  should be exported at or about the 
same time as the goods being valued could be flexibly interpreted; identical imported goods 
produced in a country other than the country of  exportation of the goods being valued could 
be the basis for customs valuation; customs values of identical imported goods already 
determined under the provisions of Articles 5 and 6 could be used. 
 (b) Similar goods - the requirement that the similar goods  should be exported at or about the 
same time as the goods being valued could be flexibly interpreted; similar imported goods 
produced in a country other than the country of  exportation of the goods being valued could 
be the basis for customs valuation; custom s values of similar imported goods already 
determined under the provisions of Articles 5 and 6 could be used. 
 (c) Deductive method - the requirement that the goods shall have been sold in the "condition as 
imported" in paragraph 1 (a) of Article 5 c ould be flexibly interpreted; the "90 days" 
requirement could be administered flexibly. 
 
Article 8 
 
1. In determining the customs value under the provisions  of Article 1, there shall be added to the price 
actually paid or payable for the imported goods:  
(a) the following, to the extent that they are in curred by the buyer but are not included in the 
price actually paid or payable for the goods: 
 
i) commissions and brokerage, except buying commissions; 
 
ii) the cost of containers which are treated as being one for customs purposes with the 
goods in question; 
 
iii) the cost of packing whether for labour or materials; 
 (b) the value, apportioned as appropriate, of th e following goods and services where supplied 
directly or indirectly by the buyer free of charge  or at reduced cost for use in connection with 
the production and sale for export of the imported go ods, to the extent that such value has not 
been included in the price actually paid or payable: 
 
i) materials, components, parts and similar items incorporated in the imported goods; 
 
ii) tools, dies, moulds and similar items used in the production of the imported goods; 
 
iii) materials consumed in the production of the imported goods; 
 G/VAL/N/1/KHM/1 
Page 34  
 
  iv) engineering, development, artwork, desi gn work, and plans and sketches undertaken 
elsewhere than in the country of impor tation and necessary for the production of the 
imported goods; 
 (c) royalties and licence fees related to the goods being valued that the buyer must pay, either 
directly or indirectly, as a condition of sale of the goods being valued, to the extent that such 
royalties and fees are not included in th e price actually paid or payable; 
 
(d) the value of any part of the proceeds of any su bsequent resale, disposal or use of the imported 
goods that accrues directly or indirectly to the seller. 
 
2. In framing its legislation, each Member shall pr ovide for the inclusion in or the exclusion from the 
customs value, in whole or in part, of the following:  (a) the cost of transport of the imported goods to the port or place of importation; 
 
(b) loading, unloading and handling charges associat ed with the transport of the imported goods 
to the port or place of importation;  and 
 (c) the cost of insurance. 
 
3. Additions to the price actually paid or payable shall be made under this Article only on the basis of 
objective and quantifiable data.  4. No additions shall be made to the price actually  paid or payable in determining the customs value 
except as provided in this Article. 
 
Note to Article 8 
 Paragraph 1 (a) (i)  
The term "buying commissions" means fees paid by an importer to the importer's agent for the service 
of representing the importer abroad in the purchase of the goods being valued. 
 
Paragraph 1 (b) (ii) 
 
1. There are two factors involved in the apportionment of the elements specified in paragraph 1 (b) (ii) 
of Article 8 to the imported goods - the value of the element itself and the way in which that value is 
to be apportioned to the imported goods.  The appor tionment of these elements should be made in a 
reasonable manner appropriate to the circumstan ces and in accordance with generally accepted 
accounting principles.  2. Concerning the value of the element, if the importer acquires the element from a seller not related 
to the importer at a given cost, the value of the el ement is that cost. If the element was produced by 
the importer or by a person related to the importer, its  value would be the cost of producing it.  If the 
element had been previously used by the importe r, regardless of whether it had been acquired or 
produced by such importer, the original cost of acq uisition or production would have to be adjusted 
downward to reflect its use in order to arrive at the value of the element. 
 
3. Once a value has been determin ed for the element, it is necessar y to apportion that value to the 
imported goods.  Various possibilities exist. For exam ple, the value might be apportioned to the first 
shipment if the importer wishes to pay duty on the en tire value at one time.  As another example, the 
importer may request that the value be apportioned ov er the number of units produced up to the time  G/VAL/N/1/KHM/1 
 Page 35 
 
 
  of the first shipment.  As a further example, th e importer may request that the value be apportioned 
over the entire anticipated production where contracts or firm commitments exist for that production.  
The method of apportionment used  will depend upon the documentation provided by the importer. 
 4. As an illustration of the above, an importer provi des the producer with a mould to be used in the 
production of the imported goods and contracts with the producer to buy 10,000 units.  By the time of 
arrival of the first shipment of 1,000 units, the producer has already produced 4,000 units.  The importer may request the customs administration to  apportion the value of the mould over 1,000 units, 
4,000 units or 10,000 units.   Paragraph 1 (b) (iv)  
1. Additions for the elements specified in para graph 1 (b) (iv) of Article 8 should be based on 
objective and quantifiable data.  In order to mi nimize the burden for both the importer and customs 
administration in determining the values to be adde d, data readily available in the buyer's commercial 
record system should be used in so far as possible. 
 2. For those elements supplied by the buyer which were purchased or leased by  the buyer, the addition 
would be the cost of the purchase or the lease.  No addition shall be made for those elements available 
in the public domain, other than the cost of obtaining copies of them.  
3. The ease with which it may be possible to cal culate the values to be added will depend on a 
particular firm's structure and management  practice, as well as its accounting methods. 
 4. For example, it is possible that a firm which imports a variety of products from several countries maintains the records of its design centre outside the country of importation in such a way as to show 
accurately the costs attributable to a given prod uct.  In such cases, a direct adjustment may 
appropriately be made under the provisions of Article 8.  5. In another case, a firm may carry the cost of th e design centre outside the country of importation as 
a general overhead expense without allocation to speci fic products.  In this instance, an appropriate 
adjustment could be made under the provisions of  Article 8 with respect to the imported goods by 
apportioning total design centre costs over total production benefiting from the design centre and 
adding such apportioned cost on a unit basis to imports.  6. Variations in the above circumstances will, of co urse, require different factors to be considered in 
determining the proper method of allocation. 
 
7. In cases where the production of the element in question involves a number of countries and over a 
period of time, the adjustment should be limited to the value actually added to that element outside the 
country of importation.  
Paragraph 1 (c) 
 1. The royalties and licence fees referred to in para graph 1 (c) of Article 8 may include, among other 
things, payments in respect to patents, trade marks and copyrights.  However, the charges for the right 
to reproduce the imported goods in the country of im portation shall not be added to the price actually 
paid or payable for the imported goods in determining the customs value. 
 
2. Payments made by the buyer for the right to distribute or resell the imported goods shall not be added to the price actually paid or payable for the imported goods if such payments are not a 
condition of the sale for export to the count ry of importation of the imported goods. 
 G/VAL/N/1/KHM/1 
Page 36  
 
  Paragraph 3 
 
Where objective and quantifiable data do not exist w ith regard to the additions required to be made 
under the provisions of Article 8, the transaction va lue cannot be determined under the provisions of 
Article 1.  As an illustration of this, a royalty is pa id on the basis of the price in a sale in the importing 
country of a litre of a particular product that was imported by the kilogram and made up into a 
solution after importation.  If the royalty is based  partially on the imported goods and partially on 
other factors which have nothing to do with the imported goods (such as when  the imported goods are 
mixed with domestic ingredients and are no longer sep arately identifiable, or when the royalty cannot 
be distinguished from special fina ncial arrangements between the buy er and the seller), it would be 
inappropriate to attempt to make an addition for the ro yalty.  However, if the amount of this royalty is 
based only on the imported goods and can be readily quantified, an addition to the price actually paid 
or payable can be made.  
Article 9 
 1. Where the conversion of currency is necessary for the determination of the customs value, the rate 
of exchange to be used shall be that duly publis hed by the competent authorities of the country of 
importation concerned and shall reflect as effectivel y as possible, in respect of the period covered by 
each such document of publication, the current valu e of such currency in co mmercial transactions in 
terms of the currency of the country of importation.  
 
2. The conversion rate to be used shall be that in  effect at the time of exportation or the time of 
importation, as provided by each Member.  
Note to Article 9 
 
For the purposes of Article 9, "time of importatio n" may include the time of entry for customs 
purposes.  
Article 10 
 All information which is by nature confidential or  which is provided on a confidential basis for the 
purposes of customs valuation shall be treated as st rictly confidential by the authorities concerned 
who shall not disclose it without the specific perm ission of the person or government providing such 
information, except to the extent that it may be re quired to be disclosed in the context of judicial 
proceedings. 
 
Article 11 
 
1. The legislation of each Member shall provide in regard to a determination of customs value for the 
right of appeal, without penalty, by the importer or any other person liable for the payment of the 
duty. 
 
2. An initial right of appeal without penalty may be to an authority within the customs administration or to an independent body, but the legislation of each Member shall provide for the right of appeal 
without penalty to a judicial authority.  
3. Notice of the decision on appeal shall be given to the appellant and the reasons for such decision 
shall be provided in writing.  The appellant shall al so be informed of any rights of further appeal. 
  G/VAL/N/1/KHM/1 
 Page 37 
 
 
  Note to Article 11 
 
1. Article 11 provides the importer with the right to appeal against a valuati on determination made by 
the customs administration for the goods being valued.  Appeal may first be to a higher level in the 
customs administration, but the importer shall have the right in the final instance to appeal to the 
judiciary. 
 2. "Without penalty" means that the importer shall not be subject to a fine or threat of fine merely 
because the importer chose to exercise the right of  appeal.  Payment of normal court costs and 
lawyers' fees shall not be considered to be a fine. 
 
3. However, nothing in Article 11 shall preven t a Member from requiring full payment of assessed 
customs duties prior to an appeal.  
Article 12 
 Laws, regulations, judicial decisions and administrativ e rulings of general applic ation giving effect to 
this Agreement shall be publishe d in conformity with Article X of GATT 1994 by the country of 
importation concerned.  
Article 13 
 If, in the course of determining the customs value of imported goods, it becomes necessary to delay 
the final determination of such customs value, the importer of the goods shall ne vertheless be able to 
withdraw them from customs if, where so required,  the importer provides sufficient guarantee in the 
form of a surety, a deposit or some other appropr iate instrument, covering the ultimate payment of 
customs duties for which the goods may be liable.  The legislation of each Member shall make 
provisions for such circumstances.  
Article 14 
 
The notes at Annex I to this Agreement form an inte gral part of this Agreement and the Articles of 
this Agreement are to be read and applie d in conjunction with their respective notes. 
 Annexes II and III also form an integral part of this Agreement.  
Article 15 
 1. In this Agreement: 
 (a) "customs value of imported goods" means the value of goods for the purposes of levying ad 
valorem  duties of customs on imported goods; 
 
(b) "country of importation" means country or customs territory of importation;  and 
 (c) "produced" includes grown, manufactured and mined. 
 2. In this Agreement: 
 
(a) "identical goods" means goods which are the same in all respects, including physical 
caracteristics, quality and reputation.  Minor  differences in appearance would not preclude 
goods otherwise conforming to the defini tion from being regarded as identical; 
 G/VAL/N/1/KHM/1 
Page 38  
 
  (b) "similar goods" means goods which, although not alike in all respects, have like 
characteristics and like component materials which enable them to perform the same 
functions and to be commercially interchangeab le.  The quality of the goods, their reputation 
and the existence of a trademark are among the factors to be considered in determining 
whether goods are similar; 
 
(c) the terms "identical goods" and "similar goo ds" do not include, as the case may be, goods 
which incorporate or reflect engineering, development, artwork, design work, and plans and sketches for which no adjustment has been ma de under paragraph 1 (b) (iv) of Article 8 
because such elements were undertaken in the country of importation; 
 
(d) goods shall not be regarded as "identical  goods" or "similar goods" unless they were 
produced in the same country as the goods being valued; 
 (e) goods produced by a different person shall be  taken into account only when there are no 
identical goods or similar goods, as the case may be, produced by the same person as the 
goods being valued. 
 3. In this Agreement "goods of the same clas s or kind" means goods which fall within a group or 
range of goods produced by a particular industry or  industry sector, and includes identical or similar 
goods. 
 
4. For the purposes of this Agreement, persons  shall be deemed to be related only if: 
 (a) they are officers or directors of one another's businesses;  
(b) they are legally recognized partners in business; 
 (c) they are employer and employee;  (d) any person directly or indirectly owns, controls  or holds 5 per cent or more of the outstanding 
 voting stock or shares of both of them; 
 
(e) one of them directly or indirectly controls the other;  (f) both of them are directly or indirectly controlled by a third person;  
(g) together they directly or indirectly control a third person;  or 
 (h) they are members of the same family.  5. Persons who are associated in business with one another in that one is the sole agent, sole 
distributor or sole concessionaire, however described, of the other shall be deemed to be related or the 
purposes of this Agreement if they fall within the criteria of paragraph 4. 
 
Note to Article 15 
 Paragraph 4 
 For the purposes of Article 15, the term "pers ons" includes a legal person, where appropriate. 
  G/VAL/N/1/KHM/1 
 Page 39 
 
 
  Paragraph 4 (e) 
 
For the purposes of this Agreement, one person shall be  deemed to control another when the former is 
legally or operationally in a position to exer cise restraint or direction over the latter. 
 Article 16  
Upon written request, the importer shall have the righ t to an explanation in writing from the customs 
administration of the country of importation as to how the customs value of the importer's goods was 
determined. 
 
Article 17 
 
Nothing in this Agreement shall be construed as restricting or calling into question the rights of 
customs administrations to satisfy themselves as to the truth or accuracy of any statement, document 
or declaration presented for customs valuation purposes. 
 
PART II 
 
ADMINISTRATION, CONSULTATIONS AND DISPUTE SETTLEMENT 
 
Article 18 
 Institutions  
1. There is hereby established a Committee on Custom s Valuation (referred to in this Agreement as 
"the Committee") composed of representatives from e ach of the Members.  The Committee shall elect 
its own Chairman and shall normally meet once a year , or as is otherwise envisaged by the relevant 
provisions of this Agreement, for the purpose of  affording Members the opportunity to consult on 
matters relating to the administration of the cust oms valuation system by any Member as it might 
affect the operation of this Agreement or the furt herance of its objectives and carrying out such other 
responsibilities as may be assigned to it by the Members. The WTO Secretariat shall act as the 
secretariat to the Committee. 
 2. There shall be established a Technical Comm ittee on Customs Valuation (referred to in this 
Agreement as "the Technical Committee") under th e auspices of the Customs Co-operation Council 
(referred to in this Agreement as "the CCC"), wh ich shall carry out the responsibilities described in 
Annex II to this Agreement and sh all operate in accordance with the rules of procedure contained 
therein.  
Article 19 
 Consultations and Dispute Settlement 
 1. Except as otherwise provided herein, the Dis pute Settlement Understanding is applicable to 
consultations and the settlement of  disputes under this Agreement. 
 2. If any Member considers that any benefit accruing to  it, directly or indirectly, under this Agreement 
is being nullified or impaired, or that the achieve ment of any objective of this Agreement is being 
impeded, as a result of the actions of another Member  or of other Members, it may, with a view to 
reaching a mutually satisfactory solution of this ma tter, request consultations with the Member or 
Members in question. Each Member shall afford  sympathetic consideration to any request from 
another Member for consultations. G/VAL/N/1/KHM/1 
Page 40  
 
   
3. The Technical Committee shall provide, upon request, advice and assistance to Members engaged in consultations.  4. At the request of a party to the dispute, or on its own initiative, a panel established to examine a 
dispute relating to the provisions of this Agreement may request the Technical Committee to carry out 
an examination of any questions requiring technical  consideration.  The panel shall determine the 
terms of reference of the Technical Committee for the particular dispute and set a time period for 
receipt of the report of the Technical Committee.  Th e panel shall take into consideration the report of 
the Technical Committee. In the ev ent that the Technical Committee is unable to reach consensus on a 
matter referred to it pursuant to this paragraph, th e panel should afford the parties to the dispute an 
opportunity to present their views on the matter to the panel.  5. Confidential information provided to the panel shall not be disclosed without formal authorization 
from the person, body or authority providing such information.  Where such information is requested 
from the panel but release of such information by  the panel is not authorized, a non-confidential 
summary of this information, authorized by the person, body or authority providing the information, shall be provided.  
PART III 
 
SPECIAL AND DIFFERENTIAL TREATMENT 
 Article 20  
1. Developing country Members not party to the Ag reement on Implementation of Article VII of the 
General Agreement on Tariffs and Trade done on 12 April 1979 ma y delay application of the 
provisions of this Agreement for a period not exceeding five years from the date of entry into force of 
the WTO Agreement for such Members. Deve loping country Members who choose to delay 
application of this Agreemen t shall notify the Director-General of the WTO accordingly. 
 2. In addition to paragraph 1, developing co untry Members not party to the Agreement on 
Implementation of Article VII of the General Ag reement on Tariffs and Trade done on 12 April 1979 
may delay application of paragra ph 2 (b) (iii) of Article 1 and Ar ticle 6 for a period not exceeding 
three years following their application of all other pr ovisions of this Agreement.  Developing country 
Members that choose to delay application of the provi sions specified in this paragraph shall notify the 
Director-General of the WTO accordingly.  
 
3. Developed country Members shall furnish, on mutually agreed terms, technical assistance to 
developing country Members that so request. On th is basis developed country Members shall draw up 
programmes of technical assistance which may include, inter alia , training of personnel, assistance in 
preparing implementation measures, access to sour ces of information regarding customs valuation 
methodology, and advice on the application of the provisions of this Agreement. 
  G/VAL/N/1/KHM/1 
 Page 41 
 
 
  PART IV 
 
FINAL PROVISIONS 
 Article 21 
 
Reservations  
Reservations may not be entered in respect of any of the provisions of this Agreement without the 
consent of the other Members. 
 
Article 22 
 National Legislation  
1. Each Member shall ensure, not later than the date  of application of the provisions of this Agreement 
for it, the conformity of its laws, regulations and administrative procedures with the provisions of this 
Agreement.  2. Each Member shall inform the Committee of any changes in its laws and regulations relevant to 
this Agreement and in the administra tion of such laws and regulations. 
 
Article 23 
 Review  
The Committee shall review annually the implementati on and operation of this Agreement taking into 
account the objectives thereof. Th e Committee shall annually inform the Council for Trade in Goods 
of developments during the peri od covered by such reviews. 
 
Article 24 
 
Secretariat  
This Agreement shall be serviced by the WTO S ecretariat except in regard to those responsibilities 
specifically assigned to the Technical Committee, which will be serviced by the CCC Secretariat. G/VAL/N/1/KHM/1 
Page 42  
 
   
ANNEX I 
 
INTERPRETATIVE NOTE 
 
Interpretative Note are allocated after each relevant article. 
 
ANNEX II  
 
TECHNICAL COMMITTEE ON CUSTOMS VALUATION 
 1. In accordance with Article 18 of this Agreem ent, the Technical Committee shall be established 
under the auspices of the CCC with a view to ensu ring, at the technical level, uniformity in 
interpretation and applicati on of this Agreement.  
 
2. The responsibilities of the Technical  Committee shall include the following: 
 (a) to examine specific technical problems arisi ng in the day-to-day administration of the 
customs valuation system of Members and to gi ve advisory opinions on appropriate solutions 
based upon the facts presented; 
 
(b) to study, as requested, valuation laws, proce dures and practices as they relate to this 
Agreement and to prepare reports on the results of such studies; 
 (c) to prepare and circulate annual reports on the t echnical aspects of the operation and status of 
this Agreement; 
 
(d) to furnish such information and advice on any matters concerning the valuation of imported 
goods for customs purposes as may be requested  by any Member or the Committee. Such 
information and advice may take the form of advisory opinions, commentaries or explanatory 
notes; 
 
(e) to facilitate, as requested, technical assistance  to Members with a view to furthering the 
international acceptance of this Agreement; 
 (f) to carry out an examination of a matter refe rred to it by a panel under Article 19 of this 
Agreement;  and 
 
(g) to exercise such other responsibiliti es as the Committee may assign to it. 
 
General 
 
3. The Technical Committee shall attempt to concl ude its work on specific matters, especially those 
referred to it by Members, the Committee or a panel, in a reasonably short period of time. As provided 
in paragraph 4 of Article 19, a panel shall set a sp ecific time period for receipt of a report of the 
Technical Committee and the Technical Committee sh all provide its report within that period. 
 4. The Technical Committee shall be assisted as a ppropriate in its activities by the CCC Secretariat. 
 
Representation 
 
5. Each Member shall have the right to be re presented on the Technical Committee. Each Member 
may nominate one delegate and one or more alte rnates to be its representatives on the Technical  G/VAL/N/1/KHM/1 
 Page 43 
 
 
  Committee. Such a Member so represented on the Tec hnical Committee is referred to in this Annex as 
a "member of the Technical Committee". Representatives of members of the Technical Committee may be assisted by advisers. The WTO Secretaria t may also attend such meetings with observer 
status.  
6. Members of the CCC which are not Members of the WTO may be represented at meetings of the 
Technical Committee by one delegate and one or mo re alternates. Such representatives shall attend 
meetings of the Technical Committee as observers.  7. Subject to the approval of the Chairman of th e Technical Committee, the Secretary General of the 
CCC (referred to in this Annex as "the Secretary Ge neral") may invite represe ntatives of governments 
which are neither Members of the WTO nor member s of the CCC and representatives of international 
governmental and trade organizations to attend m eetings of the Technical Committee as observers. 
 8. Nominations of delegates, alternates and adviser s to meetings of the Technical Committee shall be 
made to the Secretary General. 
 
Technical Committee Meetings 
 
9. The Technical Committee shall meet as necessary but  at least two times a year.  The date of each 
meeting shall be fixed by the Technical Committee at its preceding session.  The date of the meeting 
may be varied either at the request of any memb er of the Technical Committee concurred in by a 
simple majority of the members of the Technical Committee or, in cases requiring urgent attention, at 
the request of the Chairman. Notwithstanding the pr ovisions in sentence 1 of this paragraph, the 
Technical Committee shall meet as ne cessary to consider matters referred to it by a panel under the 
provisions of Article 19 of this Agreement. 
 
10. The meetings of the Technical Committee shal l be held at the headquarters of the CCC unless 
otherwise decided.  11. The Secretary General shall inform all memb ers of the Technical Committee and those included 
under paragraphs 6 and 7 at least 30 days in advance, except in ur gent cases, of the opening date of 
each session of the Technical Committee. 
 
Agenda 
 
12. A provisional agenda for each session shall be drawn up by the Secretary General and circulated 
to the members of the Technical Committee and to those included under paragraphs 6 and 7 at least 
30 days in advance of the session, except in urgent cases.  This agenda shall comprise all items whose 
inclusion has been approved by the Technical  Committee during its preceding session, all items 
included by the Chairman on the Chairman's own in itiative, and all items whose inclusion has been 
requested by the Secretary General, by the Committe e or by any member of the Technical Committee. 
 
13. The Technical Committee shall determine its ag enda at the opening of each session.  During the 
session the agenda may be altered at any time by the Technical Committee.  
Officers and Conduct of Business 
 
14. The Technical Committee shall elect from among the delegates of its me mbers a Chairman and 
one or more Vice-Chairmen.  The Chairman and Vice-Chairmen shall each hold office for a period of one year. The retiring Chairman and Vice-Chairmen are eligible for re-election.  The mandate of a Chairman or Vice-Chairman who no longer represen ts a member of the T echnical Committee shall 
terminate automatically. G/VAL/N/1/KHM/1 
Page 44  
 
   
15. If the Chairman is absent from any meeting or part  thereof, a Vice-Chairman shall preside.  In that 
event, the latter shall have the sa me powers and duties as the Chairman. 
 16. The Chairman of the meeting shall participate in the proceedings of th e Technical Committee as 
such and not as the representative of a member of the Technical Committee. 
 17. In addition to exercising the other powers conferred upon the Chairman by these rules, the Chairman shall declare the opening and closing of each meeting, direct the discussion, accord the 
right to speak, and, pursuant to these rules, have c ontrol of the proceedings.  The Chairman may also 
call a speaker to order if the speaker's remarks are not relevant. 
 18. During discussion of any matter a delegation may raise a point of order.  In this event, the 
Chairman shall immediately state a ruling. If this ru ling is challenged, the Ch airman shall submit it to 
the meeting for decision and it shall stand unless overruled. 
 
19. The Secretary General, or officers of the CCC Secretariat designated by the Secretary General, shall perform the secretarial work of meetings of the Technical Committee.  
Quorum and Voting 
 
20. Representatives of a simple majority of the me mbers of the Technical Committee shall constitute 
a quorum.  21. Each member of the Technical Committee shall have one vote. A decision of the Technical Committee shall be taken by a majority comprisi ng at least two thirds of the members present. 
Regardless of the outcome of the vote on a particul ar matter, the Technical Committee shall be free to 
make a full report to the Committee and to the CCC on that matter indicating the different views 
expressed in the relevant discussions. Notwithstandi ng the above provisions of this paragraph, on 
matters referred to it by a panel, the Technical Co mmittee shall take decisions by consensus.  Where 
no agreement is reached in the Technical Committe e on the question referred to it by a panel, the 
Technical Committee shall provide a report detailing the facts of the matter and indicating the views 
of the members. 
 
Languages and Records 
 
22. The official languages of the Technical Comm ittee shall be English, French and Spanish.  
Speeches or statements made in any of these three la nguages shall be immediately translated into the 
other official languages unless all delegations agr ee to dispense with translation.  Speeches or 
statements made in any other language shall be transl ated into English, French and Spanish, subject to 
the same conditions, but in that event the delega tion concerned shall provide the translation into 
English, French or Spanish. Only English, Fren ch and Spanish shall be used for the official 
documents of the Technical Committee. Memoranda and correspondence for the consideration of the 
Technical Committee must be presented in one of the official languages. 
 23. The Technical Committee shall draw up a report of all its sessions and, if the Chairman considers it necessary, minutes or summary records of its meetings.  The Chairman or a designee of the Chairman shall report on the work of the Technical  Committee at each meeting of the Committee and 
at each meeting of the CCC.  G/VAL/N/1/KHM/1 
 Page 45 
 
 
   
ANNEX III 
 
1. The five-year delay in the application of the provisions of the Agreement by developing country 
Members provided for in paragraph 1 of Article 20 may, in practice, be insufficient for certain 
developing country Members. In such cases a devel oping country Member may request before the end 
of the period referred to in paragr aph 1 of Article 20 an extension of  such period, it being understood 
that the Members will give sympathetic considerati on to such a request in cases where the developing 
country Member in question can show good cause.  
2. Developing countries which currently value goods  on the basis of officially established minimum 
values may wish to make a reservation to enable  them to retain such values on a limited and 
transitional basis under such terms and conditio ns as may be agreed to by the Members. 
 3. Developing countries which consider that the reve rsal of the sequential order at the request of the 
importer provided for in Article 4 of the Agreemen t may give rise to real difficulties for them may 
wish to make a reservation to Article 4 in the fo llowing terms:  "The Government of ... reserves the 
right to provide that the relevant provision of Ar ticle 4 of the Agreement shall apply only when the 
customs authorities agree to the request to revers e the order of Articles 5 and 6."  If developing 
countries make such a reservation, the Members shall consent to it under Article 21 of the Agreement. 
 
4. Developing countries may wish to make a reserva tion with respect to paragraph 2 of Article 5 of 
the Agreement in the following terms :  "The Government of ... reserves the right to provid e that paragraph 2 of Article 5 of the Agreement 
shall be applied in accordance with the provisions of the relevant note thereto whether or not the 
importer so requests.  "If developing countries make such a reservation, the Members shall consent to 
it under Article 21 of the Agreement.  5. Certain developing countries may have problem s in the implementation of Article 1 of the 
Agreement insofar as it relates to importations into th eir countries by sole agents, sole distributors and 
sole concessionaires.  If such pr oblems arise in practice in developing country Members applying the 
Agreement, a study of this question shall be made, at the request of such Members, with a view to 
finding appropriate solutions.  6. Article 17 recognizes that in applying the Agreement, customs administrations may need to make enquiries concerning the truth or accuracy of any st atement, document or declaration presented to 
them for customs valuation purposes.  The Article  thus acknowledges that enquiries may be made 
which are, for example, aimed at verifying that the elements of value declared or presented to customs 
in connection with a determination of customs valu e are complete and correct.  Members, subject to 
their national laws and procedures, have the right to expect the full co-operation of importers in these 
enquiries.  
7. The price actually paid or payable includes all payments actually made or to be made as a condition 
of sale of the imported goods, by the buyer to the seller, or by the buyer to a third party to satisfy an obligation of the seller.  
__________