. /.   WORLD TRADE  
ORGANIZATION  G/VAL/W/192 
21 May 2010 
 
 (10-2865) 
Committee on Customs Valuation Original:   English 
  
 
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
Follow-up questions from the United States to China
 
 
  The following communication, dated 20 May 201 0, is circulated at the request of the 
delegation of the United States.  
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  The United States would like to thank China for the responses provided in G/VAL/W/184 and 
would like to circulate following additional follow-up questions for China.   
1. In its response to Question 3 of G/VAL/W/184, China indicates that the full text of the CVA 
Note to Article 7 has been included in the Official Interpretative Notes for Implementing Decree 148 .  
Has China notified this legislation to the Committee?   If not, we kindly request that China provide a 
copy to the Committee so that we  can ensure that Article 7 and the Note to Article 7 are fully 
incorporated.   
2. In its response to question 4 of G/VAL/W/184, China indicates that the U.S. delegation 
previously asked the same question regarding th e examination of the circumstances of sale to 
establish acceptability of transaction value.  The reas on that we have asked it yet again is because we 
again find China's response to be unsatisfactory.  The provisions of Articles 17 and 48 do not provide 
for the examination of the circumstances of the sale in order to determine that the relationship did not 
influence the price.  We therefore continue to be co ncerned that Article 1 and the Note to Article 1 of 
the Customs Valuation Agreement have not been fully incorporated into China's legislation.   
 
3. Paragraph 3 of Article 11 of the WTO Agreem ent on Customs Valuation specifies that "notice 
of the decision on appeal shall be given to the ap pellant and the reasons for such decision shall be 
provided in writing.  The appellant shall also be in formed of any rights of further appeal."  Please 
specify where this provision is re flected in China's Customs Law. 
 
4. Regarding  China's laws and regulations on guarantees:  we would appreciate clarification on 
China's statement that: "Customs shall not rel ease goods against securities in circumstances... where 
the laws and administrative regulations have provide d for."  Under what circumstance, provided for in 
the laws and administrative regulations, would Cust oms not release the goods, even if the guarantee is 
paid? Please clarify. 
 5. In its response to question 10 in G/VAL/W/184, China claims that the Interpretative Notes are 
"virtually reflected in the said Rul es" and that "other Interpretative Notes are, to the greatest extent 
possible, put explicitly or implicitly through the Article 9 to Article 12 of the said Rules."  Upon further review of Articles 9 to 12, we are of th e view that these Articles do not incorporate the G/VAL/W/192 
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  Interpretative Notes, explicitly or implicitly.  Article 9 reflects some of the principles stated in Note to 
Article 1 of the Valuation Agreement.  Article 10 re flects some of the principles specified in Article 
1.1 of the Valuation Agreement.  Article 11 deals w ith the provisions which appear in Article 8 of the 
Valuation Agreement, and Article 12 specifies provisions  in Article 8.2 of the Valuation Agreement.  
None of the above mentioned Articles incorporate th e Interpretive Notes to Articles 1, 5, 6, and 7 
completely (and the remaining Interpretive Notes) .  We would like to request that appropriate 
provisions be made in China's legislati on for the rest of the Interpretive Notes.   
  
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