WORLD TRADE  
ORGANIZATION  G/VAL/N/2/BHR/1 
17 March 2008 
 (08-1189) 
Committee on Customs Valuation Original:   English 
  
 
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE 
AGREEMENT ON CUSTOMS VALUATION 
 
Checklist of issues
 
 
BAHRAIN 
 
  The following communication, dated 23 January 2 008, is being circulated at the request of the 
delegation of Bahrain. 
 
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1. Questions concerning Article 1: 
(a) Sales between related persons: 
(i) Are sales between related persons subject to special provisions? 
In a sale between related persons, the transacti on value is accepted and the goods valued in 
accordance with the provisions of the Cust oms Valuation Agreement (CVA). In case doubts 
exist that price of the imported goods has b een influenced by relationship between the 
importer and seller, and then such case is d ealt according to “Conditions of the transaction 
value” point 4. of the Rules of Implementa tion, of the Common Customs Law which is 
applied in accordance with Ministerial Order No 3 of 2003, dated 2nd July 2003. 
 
(ii) Is the fact of intercompany prices prima facie considered as grounds for regarding the 
respective prices as being influenced? 
"Prices of the goods of the international firms" are not considered influenced by relationship 
except in case of application of Article 1.2 of the CVA, to them, and that the price is duly 
found to be influenced by relationship. 
 
(iii) What is the provision for giving the communica tion of the afore-mentioned grounds in writing 
if the importer so requests? (Article 1.2(a)) 
In case an importer requests the Customs in writing to be advised of the grounds for regarding 
the respective prices as being influenced by relationship, then he is notified in writing of the grounds reached during scrutiny of the informa tion furnished by him in connection with the 
circumstances surrounding the sale. 
 
 G/VAL/N/2/BHR/1 
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  (iv) How has Article 1.2(b) been implemented? 
The transaction value in a sale between rela ted persons is accepted and the value is 
determined according to the Rules of Implem entation, of the Common Customs Law which is 
based on CVA, if the importer demonstrates that such value of the imported goods closely approximates, at or about the same time, to one of the values noted below: 
 
1. the transaction value of identical or similar goods in sales to unrelated buyers for 
export to the same country of importation; 
2. the customs value of identical or similar goods as determined under the Clause for 
Bases of Customs Evaluation using Deductive Value; 
3. a customs value of identical or simi lar goods as determined under the Rules of 
Implementation of the Common Customs Law,  which is based on Article 6 of the 
CVA (Computed Value). 
 In applying the foregoing tests, due account sha ll be taken of demonstrated differences in 
commercial levels, quantity levels , and elements enumerated in the Clause II: Adjustment to 
the Transaction value of the same Article and cost s incurred by the seller in sales in which the 
seller and the buyer are not related that are not  incurred by the seller in sales in which the 
seller and the buyer are related.  Article 1.2(b) is implemented upon request by the importer and for comparison purposes only.  
It may not be adopted as alternative values in accordance with that Article. 
 (b) Price of lost or damaged goods: 
 Are there any special provisions or practical arrangements concerning the valuation of lost or 
damaged goods? 
 
1. If all goods in the shipment are damage d, the transaction value is not applicable 
because the price actually paid or payable do not cover the goods in damaged state. 
 
2. If the shipment is exposed to partial da mage, then the transaction value can be used 
for the part not damaged.  As far as the damaged part is concerned, its value is 
assessed according to its condition at the date of registering the Customs Declaration 
in accordance with the Common Customs La w Article 18,  which is applied in 
accordance with Ministerial Order No 10 of 2002, date d 18th June 2002. 
 
Regarding the lost goods, the transaction value is not applied because such goods basically 
did not arrive. 
 Provisions concerning the valuation of damage d goods:  their value is determined according 
to their condition at the time of registering the Customs Declaration. 
 
2. How has the provision of Article 4 to allow the importer an opinion to reverse the order 
of application of Articles 5 and 6 been implemented? 
 The Computed Value (Article 5) is app lied before the Deductive Value automatically 
(Article 4) if the importer so requests the Custom s in writing while lodging the Customs Declaration, 
in accordance to Article 1 Clause II point 4 of th e Rules of Implementation of the Common Customs 
Law.  If the value cannot be determined using th e computed value method, the goods will be valued 
using the deductive value method.    G/VAL/N/2/BHR/1 
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  3. How has Article 5.2 been implemented? 
 According to Rules of Implementation of the Common Customs Law, the Deductive Value 
provided for in Article 5.2 of the CVA is applie d if neither the imported goods nor identical nor 
similar goods are sold in Bahrain in the conditi on as imported.  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 pers ons who are not related, due allowance being made 
for the value added by such processing and the deducti ons provided for in paragraph 1(a) of the CVA. 
 
4. How has Article 6.2 been implemented? 
 According to Rules of Implementation of the Common Customs Law , information supplied 
by the producer of the goods for purpose of determining the customs value, may  be verified in another 
country, with the agreement of the producer and su fficient notice to the government of the country. 
 
5. Questions concerning Article 7: 
(a) What provisions have been made for making va lue determinations pursuant to Article 7? 
In order to achieve consistency in the Customs valuation procedures in Bahrain with Article 7 
of the CVA, all provisions thereof are incorpor ated in the Rules of Implementation, Clause: 
Flexible Valuation Methods. 
 (b) What is the provision for informing the impor ter of the customs value determined under 
Article 7? 
The importer is informed of the Customs va lue determined under Article 7 of the CVA 
according to the provisions of the Article 1 General Provision 2 of the Rules of Implementation of the Common Customs Law  
 (c) Are the prohibitions found in Article 7.2 delineated? 
The prohibitions in determina tion of the Customs value in accordance with Article 7.2 are 
duly delineated in the Clause on “Imported goods may not be valued on the basis of:” in the Rules of Implementation of the Common Customs Law.  
 
6. How have the options found in Article 8.2 been handled? In the case of f.o.b. application , 
are ex-factory prices also accepted? 
 The Customs value of imported goods is determin ed on the basis of the CIF price wherein the 
adjustments mentioned in Article 1.1 and 1.2 are taken into account.  
7. Where is the rate of exchange published, as required by Article 9.1? 
 The foreign currency exchange rates are publis hed in the bulletins issued regularly by the 
Central Bank of Bahrain, which is the comp etent authority of Kingdom of Bahrain.  
 
8. What steps have been taken to ensure confidentiality, as required by Article 10? 
 In connection with confidentiality of inform ation, the Article 51 of the Common Customs 
Law and Article 1.4 of Rules of Implementation of the Common Customs Law  provide that the information furnished on a confidential basis for pur poses of customs valuation, shall be treated as G/VAL/N/2/BHR/1 
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  strictly confidential, and may not be disclosed excep t to the extent required to be disclosed in the 
context of judicial proceedings.  
9. Questions Concerning Article 11: 
(a) What rights of appeal are open to the importer or any other person? 
The rights of appeal open to the importer or whoever is liable for payment of the Customs 
duty are mentioned in the Article 1 General Pr ovision 3, of Rules of Implementation of the 
Common Customs Law, which provides: "The importer or any person liable for payment of the customs duties can object and appeal agains t the assessment of customs value, without 
penalty, as following: 
 
(i) at the administrative level: 
• Head of Customs point 
• Customs Valuation Committee 
 
 (ii) an independent judiciary body 
 
(b) How is he to be informed of his right to further appeal? 
The Article 61 of the Common Customs Law provides for this right, and President Order 
No. 10 of 2003, which has established the Customs Valuation Committee for this purpose . 
 
10. Provide information on the publication, as required by Article 12, of: 
  
(a) Regarding publication of the laws, regulations  and judicial decisions, the Common Customs 
Law is duly published to the concerned authorities. The Bahrain Customs website www.bahraincustoms.gov.bh, contains also th e regulations and directives issued by the 
Customs.  
 So far as the judicial decisions are concerne d, they are published in accordance with Article 
10 of the CVA which provides that the informati on which is by nature confidential or which 
is provided on confidential basis shall not be di sclosed except to the extent that it may be 
required to be disclosed in the context of judicial proceedings. 
 (b) Is the publication of further rules anticipated? Which topics would they cover? 
Any new regulations or rules of implementati on shall be published in the Official Gazette, 
and shall come into effect on the date of  publication unless otherwise provided for.   
 
11. Questions concerning Article 13: 
 In connection with provision of Article 13 of the CVA which requires that the Customs 
legislation shall contain circumstan ces and conditions of right of the importer to clear his goods, if it 
becomes necessary to delay the final determination of such customs value, Article 1.1 of the Rules of 
Implementation of the Common Customs Law explains this aspect. The importer of the goods is able 
to withdraw them from customs, if so required, the importer provides sufficient guarantee in the form 
of a surety, a deposit or some other appropriate in strument, covering the ultimate payment of customs 
duties for which the goods may be liable.  G/VAL/N/2/BHR/1 
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  12. Questions concerning Article 16: 
 Article 1.2 of the Rules of Implementati on of the Common Customs Law duly provides for 
the right of importer to obtain a written clarification of the method used in determining the customs value of his goods.  
 13. How have the Interpretative Notes of the Agreement been included? 
 The Interpretative Notes to the CVA are duly in corporated into the Rules of Implementation 
of the Common Customs Law.  
14. How have the provisions of the Decision on the Treatment of Interest Charges in the 
Customs Value of Imported Goods been implemented? 
 In accordance with Article 1.5 of the Rules of Implementation of the Common Customs Law, 
General Provisions, interest charges are not included in the customs value.  
15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing E quipment, how have the provisions of this 
paragraph been implemented? 
 In accordance with the Rules of Implemen tation of the Common Customs Law, General 
Provisions, provides that the customs value of the in formation carrier media such as magnetic tapes or 
the like containing data or computer software reco rded thereon shall be assessed on the basis of value 
of such media only according to para. 2 the d ecision adopted by the WTO Committee on Customs 
Valuation. 
 
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