WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  G/VAL/N/1/MKD/1 
9 March 2005 
 (05-0998) 
Committee on Customs Valuation Original:   English/ 
                 anglais/ 
 ingles 
 
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE 
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
 
FORMER YUGOSLAV REPUBLIC OF MACEDONIA 
 
 
 The following communication, dated 27 October 2004, is being circulated at the request of the delegation of the Former 
Yugoslav Republic of Macedonia. 
 
_______________ 
 
 In accordance with the Decision on notification and circulation of national legi slation, taken by the WTO Committee on 
12 May 1995, we have the honour to  notify the Committee on Customs Valuation of th e legislation of the Republic of Macedonia relevant to 
customs valuation1.  It consists of the following: 
 
1. Customs Code - (Articles 28 to 39);  and 
 
2. Regulation on implementation of the provi sions of the Customs Code concerning va luation of the goods for customs purposes. 
 
_______________ 
 
NOTIFICATION AU TITRE DE L'ARTICLE 22 DE L'ACCORD SUR LA  
MISE EN ŒUVRE DE L'ARTICLE VII DE L'ACCORD GÉNÉRAL  
SUR LES TARIFS DOUANIERS ET LE COMMERCE DE 1994 
 
EX-RÉPUBLIQUE YOUGOSLAVE DE MACÉDOINE 
 
 
 La communication ci-après, datée du 27 octobre 2004, est distribuée à la demande de la dé légation de l'ex-République 
yougoslave de Macédoine 
_______________ 
 
 Conformément à la Décision sur la notifica tion et la distribution des législations na tionales prise par le Comité de l'OMC le 
12 mai 1995, nous avons l'honneur de notifier au Comité de l'évaluation en douane la législ ation de la République  de Macédoine en matière 
d'évaluation en douane.1  Elle comprend les textes ci-après: 
 
1. Code des douanes (articles 28 à 39);  et 
 
2. Règlement sur la mise en œuvre des dispositions du Code de s douanes relatives à la valeur en douane des marchandises.  
 
_______________ 
 
NOTIFICACIÓN DE CONFORMIDAD CON EL ARTÍCULO 22 DEL ACUERDO 
RELATIVO A LA APLICACIÓN DEL ARTÍCULO VII DEL 
ACUERDO GENERAL SOBRE ARANCELES 
ADUANEROS Y COMERCIO DE 1994 
 
EX REPÚBLICA YUGOSLAVA DE MACEDONIA 
 
 
 La siguiente comunicación, de fecha 27 de  octubre de 2004, se distribuye a petici ón de la delegación de la ex República 
Yugoslava de Macedonia. 
_______________ 
 
 De conformidad con la Decisión sobre no tificación y distribución de la legislación naci onal, adoptada por el Comité de la OMC 
el 12 de mayo de 1995, tenemos el honor de notificar al Comité de Valoración en Adua na la legislación de la República de Macedo nia 
relativa a la valoración en aduana.1  Esta comprende lo siguiente: 
 
1. Código de Aduanas (artículo 28 a 39);  y 
 
2. Reglamento sobre la aplicación de las di sposiciones del Código de Aduanas relativas a la valoración de las mercancías a efec tos 
aduaneros. 
 
_______________  
                                                      
1 In English only./En anglais seulement./En inglés solamente. G/VAL/N/1/MKD/1 
Page 2  
 
                                                     1. CUSTOMS CODE - (Articles 28 to 39)2
 
 Published in Official Journal of  the Republic of Macedonia 21/1998 
 Amendments 26/1998, 63/1998, 86/1999, 25/2000, 109/2001, 31/2001, 4/02, 55/2002 
 
Article 28 
(Application of customs value) 
 
 The provisions of Article 28 to 39 of the Code  shall determine the customs value of goods for 
the purposes of applying the Customs Tariff, as well as other provisions governing trade related fields.  
 
Article 29 
(Definition of customs value -Transaction value method) 
 
(1) The customs value of imported goods shall be the transaction value, that is the price actually paid or payable for the goods when sold for ex port to the Republic of Macedonia adjusted in 
accordance with the provisions of Artic le 36 and 37 of the Code, provided:  
a) that there are no restrictions as to the disposition or use of the goods by the buyer 
other than restrictions which:  
- are imposed or required by law or other provisions of the Republic of Macedonia; 
- limit the geographical area in which the goods may be resold; or 
- 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 r espect 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 acquire directly or indirectly to the seller, unless an appropriate 
adjustment can be made in accordance with the provisions of Article 36 of the Code; and  
d) that the buyer and seller are not related, or where the buyer and the seller are related, 
that the transaction value is acceptable for customs purposes under the provisions of 
paragraph 2.  
 
(2)  (a) In determining whether the transact ion value is acceptable for the purposes of 
paragraph 1, the fact that the buyer and the sel ler are related shall not in itself be ground for 
regarding the transaction value as unacceptable. In such case the circumstances surrounding the sale shall be examined and the transacti on value shall be accepted provided that the 
relationship did not influence the price. If, in the light of information provided by the 
declarant or otherwise, the Customs authority has grounds for considering that the relationship influenced the price, it shall comm unicate its grounds to the declarant and the 
declarant shall be given a reasonable opportunity to respond. If the declarant so requests, the 
communication of the grounds shall be in writing. 
 
b) In a sale between related persons, the transaction value shall be accepted and the 
goods valued in accordance with the provisions  of paragraph 1 whenever the declarant 
demonstrates that such value closely approxi mates to one of the following occurring at or 
about the same time : 
 
1. the transaction value in sales to unrelated sellers and buyers of identical or similar 
goods for export to the Republic of Macedonia; 
 
2 Please note that the following is an unofficial Eng lish translation of the original Macedonian text and 
as such should be used for purpose of reference only.  G/VAL/N/1/MKD/1 
 Page 3 
 
 
2. the customs value of identical or sim ilar goods as determined under the provisions of 
Article 33 of the Code;  
 
3. the customs value of identical or sim ilar goods as determined under the provisions of 
Article 34 of the Code; 
 
In applying the foregoing tests, due account sha ll be taken of demonstrated differences in 
commercial levels, quantity levels, the elements  enumerated in Article 36 of the Code and 
costs incurred by the seller in sales in which th e seller and the buyer are not related that are 
not incurred by the seller in sales in whic h the seller and the buyer are related. 
 
 c) The tests set forth in subparagraph b) are to be used at the initiative of the declarant 
and only for comparison purposes. Substitute va lues may not be established under the said 
subparagraph. 
 
(3) a) The price actually paid or payable is the to tal payment made or to be made by the buyer to 
or for the benefit of the seller for the importe d goods and includes all payments made or to 
be made as a condition of sale of the importe d goods by the buyer to the seller or by the 
buyer to a third party to satisfy an obligation of the seller. The payment need not necessarily 
take the form of a transfer of money. Paymen t may be made by way of letters of credit or 
negotiable instrument and may be made directly or indirectly. 
 
b)  Activities, including marketing activities, undertaken by the buyer on his own 
account, other than those for which an adjustment  is provided in Article 36 of the Code, are 
not considered to be an indirect payment to the seller, even though they might be regarded as 
of benefit to the seller or have been undertaken  by agreement with the seller, and their cost 
shall not be added to the price actually paid or  payable in determining the customs value of 
imported goods. 
 
Article 30   
(Identical value method) 
 
(1)  a) If the customs value of the imported goods cannot be determined under the provisions 
of Article 29 of the Code, the customs value shall be the transaction value of identical goods sold for export to the Republic of Macedonia and exported at or about the same time as the 
goods being valued.  
 
  b) In applying this Article, the transaction value 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 Article 36 (1) e) of the Code are included 
in the transaction value, an adjustment shall be made to take account of significant differences 
in such costs and charges between the impor ted goods and the identical goods in question 
arising from differences in distances and modes of transport.  
 G/VAL/N/1/MKD/1 
Page 4  
 
(3)   If, in applying this Article, more th an one transaction value of identical goods is 
found, the lowest such value shall be used to  determine the customs value of the imported 
goods. 
 
Article 31 
(Similar value method) 
 
(1) a)  If the customs value of the imported goods cannot be determined under the provisions 
of Articles 29 and 30 of the Code, the customs value shall be the transaction value of similar 
goods sold for export to the Republic of Macedonia and exported at or about the same time as the 
goods being valued.  
 
b) In applying this Article, the transaction va lue 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 level and/or in different quantities, adjusted to take account of differences attributable to commercial level a nd/or to quantity, 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 Article 36 (1) e) of the Code 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 go ods and the similar goods in question arising 
from differences in distances and modes of transport. 
  
(3)   If, in applying this Article, more than  one transaction value of similar goods is found, 
the lowest such value shall be used to de termine the customs value of the imported goods. 
 
Article 32  
(Possibility of changing the order of application of Article 33 and 34) 
 
 If the customs value of the imported goods ca nnot be determined under the provisions of 
Articles 29, 30 and 31 of the Code, the customs value shall be determined under the provisions of Article 33 of the Code. If, the customs value cannot be determined under Artic le 33 of the Code, the 
customs value shall be determined under the provisions  of Article 34 of the Code except that, at the 
request of the declarant, the order of application of Articles 33 and 34 of the Code shall be reversed. 
 
 
Article 33  
(Deductive value method) 
 
(1)  a) If the imported goods or identical or si milar imported goods are sold in the Republic 
of Macedonia 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 :  
 
1. either the commissions usually paid or agr eed to be paid or the additions usually made 
for profit and general expenses (including the direct and indirect costs of marketing the goods in question) in connection with sales  in the Republic of Macedonia of imported 
goods of the same class or kind;   G/VAL/N/1/MKD/1 
 Page 5 
 
 
 
2. the usual costs of transport and insura nce and associated costs incurred within the 
Republic of Macedonia;  
 
3. where appropriate, the costs and charges re ferred to in Article 36 (1) e) of the Code; 
and  
 
4. the import duties and other charges paya ble in the Republic of Macedonia 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 bein g valued, the 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 importe d goods are sold in the Republic of Macedonia 
in the condition as imported at the earliest date after the importation of the goods being 
valued but before the expiration of 90 days after such importation.  
(2)   If neither the imported goods nor identical  nor similar imported goods are sold in the 
Republic of Macedonia in the condition as imported, then, if the importer so requests, the customs value shall be based on the unit pri ce at which the imported goods, after further 
processing, are sold in the greatest aggregat e quantity to persons in the Republic of 
Macedonia who are not related to the pers ons from whom they buy such goods, due 
allowance being made for the value added by such processing and the deductions provided for 
in paragraph 1 a). 
 
Article 34  
(Computed value method) 
 
(1)  The customs value of imported goods under the provisions of this Article 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 Republic of Macedonia;  
(c) the cost or value of all other expenses re ferred to in Article 36 (1) e) of the Code.  
 
 (2)  It shall not be required or compelled any person not resident on the territory of the Republic 
of Macedonia 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 cu stoms value under this Article may be verified 
in another country by the customs authority with  the agreement of the producer and provided that 
customs authority give sufficient advance notice to the authorities of the country in question and 
the latter do not object to the investigation. 
 
 
 
Article 35  
(Fall-back value method) 
 G/VAL/N/1/MKD/1 
Page 6  
 
(1)  Where the customs value of imported goods cannot be determined under Articles 29 to 34 of 
the Code, it shall be determined, on the basis of  data available in the Republic of Macedonia, 
using reasonable means consistent with the principles and general provisions of: 
 
- the Agreement on implementation of Article VII of the General Agreement on Tariffs and 
Trade of 1994 
- Article VII of the General Agre ement on Tariffs and Trade of 1994 
- the provisions of Articles 28 to 38-h of this Code. 
 
(2)  No customs value shall be determined under the provisions of this Article on the basis of : 
a) the selling price in the Republic of Macedonia of goods produced in the Republic of 
Macedonia;  
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 va lues which have been determined for identical 
or similar goods in accordance with the provisions of Article 34 of the Code;  
e) the price of the goods for export to a country other than Republic of Macedonia;  
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. 
 
 
Article 36  
(Adjustment of price - elements included in the customs value)  
 
(1)  In determining the customs value under Article  29 of the Code, there shall be added to the 
price actually paid or payable for the imported goods: 
a) the following, to the extent that they are incurred by the bu yer but are not included in the 
price actually paid or payable for the goods: 
1. commissions and brokerage , except buying commissions, 
2. the cost of containers which are treated  as being one, for customs purposes, with the 
goods in question, 
3. the cost of packing, whether for labour or materials; 
b) the value, apportioned as appropriate, of the following goods and services where supplied 
directly or indirectly by the buyer free of ch arge or at reduced cost for use in connection 
with the production and sale for export of the imported goods, to the extent that such value 
has not been included in the price actually paid or payable: 
1. materials, components, parts and simila r items incorporated in the imported goods, 
2. tools, dies, moulds and similar items used in the production of the imported goods, 
3. materials consumed in the production of the imported goods, 
4. engineering, development, artwork, design work, and plans and sketches undertaken 
elsewhere than in the Republic of Macedoni a and necessary for the production of the 
imported goods;  G/VAL/N/1/MKD/1 
 Page 7 
 
 
c) royalties and licence fees related to the goods be ing 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 s ubsequent resale, disposal or use of the imported 
goods that accrues directly or indirectly to the seller; 
e) 1. the cost of transport and insurance of  the imported goods to the place of introduction 
into the customs territory of the Republic of Macedonia, and 
2. loading and handling charges associated with the transport of the imported goods to the 
place of introduction into the customs territory of the Republic of Macedonia. 
 
(2)  Additions to the price actually paid or payable shall be made under this Article only on the 
basis of objective and quantifiable data. 
 
(3)  No additions shall be made to the price act ually paid or payable in determining the customs 
value except as provided in this Article. 
 
(4)  The term ‘buying commissions’ means fees paid  by an importer to his agent for the service of 
representing him in the purchase of the goods being valued. 
 
(5)  Notwithstanding paragraph 1 c): 
a) charges for the right to reproduce the importe d goods in the Republic of Macedonia shall not 
be added to the price actually paid or paya ble for the imported goods in determining the 
customs value; and 
b) 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 payabl e for the imported goods if such payments are 
not a condition of the sale for export to the Republic of Macedonia of the goods. 
 
Article 37  
(Adjustment of price - elements excluded in the customs value) 
 
(1)  Provided that they are shown separately from the price actually paid or payable, the following 
shall not be included in the customs value: 
a) charges for the transport of goods after thei r arrival at the place of introduction into the 
customs territory of the Republic of Macedonia; 
b) charges for construction, erection, assembly, maintenance or technical assistance, undertaken 
after importation of imported goods such as i ndustrial plant, machinery or equipment; 
c) charges for interest under a financing arrangeme nt entered into by the buyer and relating to 
the purchase of imported goods, irrespective of whether the finance is provided by the seller 
or another person, provided that the financ ing arrangement has been made in writing and 
where required, the buyer can demonstrate that: 
- such goods are actually sold at the price decl ared as the price actually paid or payable, 
and 
- 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; 
d) charges for the right to reproduce imported goods in the Republic of Macedonia; 
e) buying commissions; 
f) import duties or other charges payable in the Republic of Macedonia by reason of the 
importation or sale of the goods. G/VAL/N/1/MKD/1 
Page 8  
 
 
Article 38 
(Reduction of prices) 
 
 All reductions in price agreed prior to the impor t of the goods and effect uated in agreed delay, 
shall not be included in customs value, in accordance to Article 29 of the Code. 
 
  
Article 38-a  
(Customs value of  free consignments) 
 
 The customs value of goods imported free of ch arge shall be determined under the provisions 
of Article 30 to 35 of the Code. 
 
  
Article 38-b  
(Valuation of certain carrier media for use in ADP equipment) 
 
(1)  Notwithstanding Articles 29 to 38-h of the Code, in determining the customs value of 
imported carrier media bearing data or instructi ons for use in data processing equipment, only the 
cost or value of the carrier medium itself sh all be taken into account. The customs value of 
imported carrier media bearing data or instructions shall not, therefore, include the cost or value 
of the data or instructions, provided that such cost  or value is distinguished from the cost or value 
of the carrier medium in question. 
 
(2)  For the purposes of this Article: 
 
a) the expression ‘carrier medium’ shall not be taken to include integrated circuits, 
semiconductors and similar devices or articles incorporating such circuits or devices; 
b) the expression ‘data or instructions’ shall not be taken to include s ound, cinematographic or 
video recordings. 
 
 
Article 38-c  
(Obligation of the importer of related to Article 36) 
 
(1)  In the case of import of goods for which obligation under Article 36 (1) b), c) and d) of the 
Code is agreed, the importer is obliged to specify that in the customs declaration; 
 
(2)  The importer is obliged to declare to the customs authority the resale, disposal or use of the 
imported goods, from which a payment of particular  amount to the seller is arised in accordance 
with Article 36 (1) (d) of the Code, not later than 30 days following the payment.        
 
 
 
 
Article 38-d  
(Apportion of costs) 
  G/VAL/N/1/MKD/1 
 Page 9 
 
 
(1)  Where the consignment consists of more ki nds of goods and more different rates of customs 
duty apply, buying costs for the goods expressed in total amount for the whole consignment, as 
well as the transport costs, insu rance costs and delivery costs,  shall be calculated by the 
proportion of the value of each kind of goods. 
 
(2)  By derogation of paragraph (1), customs aut hority may , at request of the declarant, add the 
costs referred to in paragraph (1) concerning more  kinds of goods being pa rt of one consignment 
to the value of the goods on whic h the highest customs rate is applied.                
 
 
Article 38-e  
(Procedure in the case of doubt of the declared value) 
 
(1)  The customs authority may, in course of conducting the customs procedure, ask  the declarant 
all necessary documents and other evidence in order to determine the customs value in 
accordance to the Article 29 to 37 of the Code 
 
(2)  No one provision of Article 28 to 38-h sh all be construed as restricting or calling into 
question the rights of customs authority to satisfy  themselves as to the truth or accuracy of any 
statement, document or declaration presented for customs valuation purposes. 
 
(3)  If the invoice is not presented of justified reasons, or customs authority has reasonable doubt 
that the value of the goods referred to the invoice does not correspond to the provisions for transaction value of the Code, the customs value shall be determined in accordance with Article 30 to 35 of the Code. 
 
(4)  Upon written request, the importer shall have the right to an explanation in writing from the 
customs authority of the country of importation as to how the customs value of the importer's goods was determined.     
 
 
Article 38-f  
(Currency conversion) 
 
Where the conversion of currency is necessary for the determination of the customs value, the 
rate of exchange to be used shall be that determ ined on the date which customs debt has incurred, in 
accordance to regulation governing foreign currency transactions. 
 
 
Article 38-g  
(Withdrawal of goods before dete rmination of the customs value) 
 
 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 declarant shall nevertheless be able to withdraw them from customs, provided that, payment of a customs debt, in accordance to Article 172 of the Code, covering the ultimate payment of cust oms duties for which the goods may be liable, is 
ensured. 
 
 
Article 38-h 
(Exclusion of application of customs value) 
 G/VAL/N/1/MKD/1 
Page 10  
 
The provisions of Article 28 to 38-g of the C ode shall be without prejudice to the specific 
provisions regarding the determination of the va lue for customs purposes of goods released for free 
circulation after being assigned a different  customs-approved treatment or use. 
 
 
Article 39  
(Regulation) 
 
(a)  Regulation for applying provisions of Ar ticle 28 to 38-h of the Code shall be 
laid down by the Government of the Republic of Macedonia.   G/VAL/N/1/MKD/1 
 Page 11 
 
 
                                                     2. REGULATION ON IMPLEMENTATION OF THE PROVISIONS OF THE CUSTOMS 
CODE CONCERNING VALUATION OF THE GOODS FOR CUSTOMS PURPOSES 3
 
Published in Official Journal of the Republic of Macedonia 60/2002 
 
Article 1 
 
(1)  In applying the provisions of Articles 28 to 38-h of the Customs Code and those of this 
Regulation, the provisions set out in Annex 1, bein g integral part of this Regulation, shall also 
apply. 
The provisions as set out in the first column of Annex 1 shall be applied in the light of the 
interpretative note appeari ng in the second column. 
 
(2)  If it is necessary to make reference to gene rally accepted accounting principles in determining 
the customs value, the provisions of Annex 2, bein g integral part of this Regulation, shall apply. 
 
Article 2 
 
(1) For the purposes of this Regulation: 
a) ‘The Agreement’ means the Agreement on im plementation of Article VII of the General 
Agreement on Tariffs and Trade concluded in  the framework of the multilateral trade 
negotiations of 1973 to 1979 and referred to in the first indent of Article 35 (1) of the 
Customs Code; 
b) ‘produced goods’ includes goods grown, manufactured and mined; 
c) ‘identical goods’ means goods produced in th e same country which are the same in all 
respects, including physical characteristics, quality and reputation. Minor differences in appearance shall not preclude goods otherwi se conforming to the definition from being 
regarded as identical; 
d) ‘similar goods’ means goods produced in the same country which, although not alike in all 
respects, have like characteristics and like compone nt materials which enable them to perform 
the same functions and to be commercially interchangeable. 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; 
e) ‘goods of the same class 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. 
 
(2)  ‘Identical goods’ and ‘similar goods’, as the case may be, do not include goods which 
incorporate or reflect engineering, development,  artwork, design work, and plans and sketches 
for which no adjustment has been made under Article 36 (1) b) 4. of the Customs Code because 
such elements were undertaken in the Republic of Macedonia. 
 
Article 3 
 
(1)  For the purposes of Articles 28 to 38-h of th e Customs Code and of this Regulation, persons 
shall be deemed to be related only if:  
a) they are officers or directors of one another’s businesses; 
 
3 Please note that the following is an unofficial English translation of the original Macedonian text and 
as such should be used for purpose of reference only. G/VAL/N/1/MKD/1 
Page 12  
 
b) they are legally recognized partners in business; 
c) they are employer and employee; 
d) any person directly or indirectly owns, cont rols or holds 5 % 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. Persons shall be deemed to be members of the same 
family only if they stand in any of th e following relationships to one another: 
— husband and wife, 
— parent and child, 
— brother and sister (whether by whole or half blood), 
— grandparent and grandchild, 
— uncle or aunt and nephew or niece, 
— parent-in-law and son-in-law or daughter-in-law, 
— brother-in-law and sister-in-law. 
 
(2)  Persons who are associated in business with one another in that one is the sole agent, sole 
distributor or sole concessionaire, however describ ed, of the other shall be deemed to be related 
only if they fall within the criteria of paragraph 1. 
 
 
Article 4 
 
 For the purposes of determining customs valu e under Article 29 of the Customs Code of 
goods in regard to which the price has not actually been paid at the material time for valuation for 
customs purposes, the price payable fo r settlement at the said time shall as a general rule be taken as 
the basis for customs value. 
 
Article 5 
 
(1)  Where goods declared for free circulation are part of a larger quantity of the same goods 
purchased in one transaction, the price actually paid or payable for the purposes of Article 29 (1) 
of the Customs Code shall be that price represented by the proportion of the total price which the quantity so declared bears to the total quantity purchased. 
Apportioning the price actually paid or payable sha ll also apply in the case of the loss of part of a 
consignment or when the goods being valued have been damaged before entry into free 
circulation. 
 
(2)  After release of the goods for free circulation, an adjustment made by the seller, to the benefit 
of the buyer, of the price actually paid or paya ble for the goods may be taken into consideration 
for the determination of the customs value in ac cordance with Article 29 of the Customs Code, if 
it is demonstrated to the satisfaction of the customs authority that: 
a) the goods were defective at the moment re ferred to by Article 62 (3) of the Customs Code; 
b) the seller made the adjustment in performan ce of a warranty obligation provided for in the 
contract of sale, concluded before re lease for free circulation of the goods; 
c) the defective nature of the goods has not alread y been taken into account in the relevant sales 
contract.  G/VAL/N/1/MKD/1 
 Page 13 
 
 
(3) The price actually paid or payable for the goods , adjusted in accordance with paragraph 2, may 
be taken into account only if that adjustment was made within a period of 12 months following 
the date of acceptance of the declaration fo r entry to free circulation of the goods. 
 
Article 6 
 
 Where the price actually paid or payable fo r the purposes of Article 29 (1) of the Customs 
Code includes an amount in respect of any internal tax applicable within the country of origin or 
export in respect of the goods in question, the said amount shall not be incorporated in the customs 
value provided that it can be demonstrated to the sa tisfaction of the customs authority concerned that 
the goods in question have been or will be re lieved there from for the benefit of the buyer. 
 
Article 7 
 
(1)  For the purposes of Article 29 of the Custom s Code, the fact that the goods which are the 
subject of a sale are declared for free circulati on shall be regarded as adequate indication that 
they were sold for export to the customs territory  of the Republic of Macedonia. In the case of 
successive sales before valuation, only the last sale, which led to the in troduction of the goods 
into the customs territory of the Republic of Macedonia, or a sale taking place in the customs 
territory of the Republic of Macedonia before entry for free circulation of the goods shall constitute such indication. 
 
(2)  Where goods are used in a third country betw een the time of sale and the time of entry into 
free circulation the customs value n eed not be the transaction value. 
 
(3)  The buyer need satisfy no condition other than that of being a party to the contract of sale. 
 
Article 8 
 
 Where, in applying Article 29 (1) b) of the Customs Code, it is established that the sale or 
price of imported goods is subject to a conditio n or consideration the value of which can be 
determined with respect to the goods being valued , such value shall be re garded as an indirect 
payment by the buyer to the seller and part of the price actually paid or payable provided that the condition or consideration do es not relate to either: 
a) an activity to which Article 29 (3) b) of the Customs Code applies; or 
b) a factor in respect of which an addition is to be made to the price actually paid or payable 
under the provisions of Article 36 of the Customs Code. 
 
Article 9 
 
(1)  For the purposes of Article 29 (3) b) of th e Customs Code, the term ‘marketing activities’ 
means all activities relating to a dvertising and promoting the sale of the goods in question and all 
activities relating to warranties or guarantees in respect of them. 
(2)  Such activities undertaken by the buyer sha ll be regarded as having been undertaken on his 
own account even if they are performed in pursu ance of an obligation on the buyer following an 
agreement with the seller. 
 
 
Article 10 
 G/VAL/N/1/MKD/1 
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(1)  In applying Article 30 and 31 of the Cust oms Code, a transaction value for goods produced by 
a different person shall be taken into account only when no transaction value can be found for 
identical or similar goods produced by the same person as the goods being valued. 
(2)  For the purposes of applying Article 30 of the Customs Code, the transaction value of 
identical imported goods means a customs valu e previously determined under provisions of 
Article 29 of the Customs Code, adjusted as provided for in Article 30 (1) b) and (2) of the 
Customs Code.  
(3)  For the purposes of applying Article 31 of th e Customs Code, the transaction value of similar 
imported goods means a customs value previously  determined under Article 29 of the Customs 
Code, adjusted as provided for in Article 31 (1) b) and (2) of the Customs Code.  
 
 
Article 11 
 
(1)  In applying Article 33 of the Customs Code (deductive value), the unit price at which 
imported goods are sold in the greatest aggregat e quantity is the price at which the greatest 
number of units is sold in sales to persons who are not related to the persons from whom they 
buy such goods at the first commercial level afte r importation at which such sales take place. 
 
(2)  Any sale in the Republic of Macedonia to a pers on who supplies directly or indirectly free of 
charge or at reduced cost for use in connec tion with the production and sale for export of the 
imported goods any of the elements specified in Article 33 (1) b) of the Customs Code should not 
be taken into account in establishing the unit pri ce for the purposes of Article 33 of the Customs 
Code. 
 
(3)  For the purposes of Article 33 (1) b) of the Cu stoms Code, the ‘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. 
 
 
Article 12 
 
(1)  Customs value under provision of Article 34 of the Customs Code (computed value) as a 
general rule is determined on the basis of in formation readily available in the Republic of 
Macedonia. 
  
(2)  Where information other than that supplied by or on behalf of the producer is used for the 
purposes of determining a computed value, the cust oms authority shall inform the declarant, if 
the latter so requests, of the source of such info rmation, the data used and the calculations based 
on such data, subject to Article 34 of the Customs Code. 
 
(3)  The cost or value of materials and fabrica tion referred to Article 34 (1) a) of the Customs 
Code shall include the cost of elements specified in Article 36 (1) a) 2. and 3. of the Customs 
Code and shall also include the value, duly apportioned, of any product or service specified in 
Article 36 (1) b) of the Customs Code which has been supplied directly or indirectly by the 
buyer, for use in connection with the production of the imported goods. The value of the elements specified in Article 36 (1) b) 4. of the Customs Code which are undertaken in the 
Republic of Macedonia shall be included only to the extent that such elements are charged to the 
producer. 
  G/VAL/N/1/MKD/1 
 Page 15 
 
 
(4)  The ‘general expenses’ referred to in the se cond indent of Article 34 (1) b) of the Customs 
Code, cover the direct and indirect costs of producing and selling the goods for export which are 
not included under the first indent of Article 34 (1) a) of the Customs Code. 
 
 
Article 13 
 
 Where containers referred to in Article 36 (1) a)  2. of the Customs Code are to be the subject 
of repeated importations, their cost shall, at the request of the declarant, be apportioned, as 
appropriate, in accordance with gene rally accepted accounting principles. 
 
 
Article 14 
 
 For the purposes of Article 36 (1) b) 4. of the Customs Code, the cost of research and preliminary design sketches is not to be included in the customs value. 
 
Article 15 
 
 Article 37 (1) c) of the Customs Code shall apply mutatis mutandis where the customs value 
is determined by applying a method other than the transaction value. 
 
Article 16 
 
(1) The customs authority may, at the requ est of the person concerned, authorize: 
— by derogation from Article 36 (2) of the Customs Code, certain elements which are to be 
added to the price actually paid or payable, although not quantifiable at the time of 
incurrence of the customs debt, to be determ ined on the basis of appropriate and specific 
criteria; 
— by derogation from Article 37 of the Customs Code, certain charges which are not to be 
included in the customs value, in cases where the amounts relating to such elements are not 
shown separately at the time of incurrence of  the customs debt, to be determined on the 
basis of appropriate and specific criteria.  
   In such cases, the declared  customs value is not to be considered as provisional within the 
meaning of the second indent of Article 9 (1 ) of the Regulation on determining the cases and 
manners on approving the application of simplif ied procedures concerning customs declarations .  
 
(2)  The authorization shall be granted under the following conditions: 
a) the carrying out of the procedures provided for by Article 13 of the Regulation on determining 
the cases and manners on approving the appli cation of simplified procedures concerning 
customs declarations would, in the circumst ances, represent disproportionate administrative 
costs; 
b) recourse to an application of Articles 30 to 35 of the Customs Code appears to be 
inappropriate in the particular circumstances; 
c) there are valid reasons for considering that th e amount of import duties to be charged in the 
period covered by the authorization will not be lo wer than that which would be levied in the 
absence of an authorization; 
d) competitive conditions amongst operators are not distorted. 
 G/VAL/N/1/MKD/1 
Page 16  
 
Article 17 
 
(1)  For the purposes of Article 36 (1) c) of the Customs Code, royalties and licence fees shall be 
taken to mean in particular payment for the use of rights relating: 
— to the manufacture of imported goods (in particular, patents, designs, models and 
manufacturing know-how), or 
— to the sale for exportation of imported goods (in particular, trade marks,  registered designs), 
or 
— to the use or resale of imported goods (in particular, copyright, manufacturing processes 
inseparably embodied in the imported goods). 
 
(2)  Without prejudice to Article 36 (1) b) of the Customs Code, when the customs value of 
imported goods is determ ined under the provisions of Article 29 of the Customs Code, a royalty 
or licence fee shall be added to the price actua lly paid or payable only when this payment: 
— is related to the goods being valued, and 
— constitutes a condition of sale of those goods. 
 
Article 18 
 
(1)  When the imported goods are only an ingred ient or component of goods manufactured in the 
Republic of Macedonia, an adjustment to the price actually paid or payable for the imported goods shall only be made when the royalty or licence fee relates to those goods. 
 
(2)  Where goods are imported in an unassembled state or only have to undergo minor processing 
before resale, such as diluting or packing, this  shall not prevent a royalty or licence fee from 
being considered relate d to the imported goods. 
 
(3)  If royalties or licence fees relate partly to  the imported goods and partly to other ingredients 
or component parts added to the goods after thei r importation, or to post-importation activities or 
services, an appropriate apportionment shall be  made only on the basis of objective and 
quantifiable data, in accordance with the interp retative note to Article 36 (2) of the Customs 
Code in Annex 1. 
 
Article 19 
 
 A royalty or licence fee in respect of the right to use a trade mark is only to be added to the 
price actually paid or payable for the imported goods where: 
— the royalty or licence fee refers to goods whic h are resold in the sa me state or which are 
subject only to minor processing after importation, 
— the goods are marketed under the trade mark, a ffixed before or after importation, for which 
the royalty or licence fee is paid, and 
— the buyer is not free to obtain such goods from other suppliers unrelated to the seller. 
 
 
Article 20 
 
 When the buyer pays royalties or licence fees to  a third party, the conditions provided for in 
Article 17 (2) shall not be considered as met unless the seller or a person related to him requires the 
buyer to make that payment. 
  G/VAL/N/1/MKD/1 
 Page 17 
 
 
Article 21 
 
 Where the method of calculation of the amount of a royalty or licence fee derives from the 
price of the imported goods, it may be assumed in th e absence of evidence to the contrary that the 
payment of that royalty or licence fee is related to  the goods to be valued. However, where the amount 
of a royalty or licence fee is calculated regardless of the price of the imported goods, the payment of that royalty or licence fee may nevertheless be related to the goods to be valued. 
 
Article 22 
 
 In applying Article 36 (1) c) of the Customs Code, the country of residence of the recipient of the payment of the royalty or licence fee shall not be a material consideration. 
 
Article 23 
 
 In applying Article 36 (1) a) 1. of the Customs Code the buying commissions shall not be added to the price actually paid or payable if they are paid by the buyer, apart from the payment of the 
goods.       
Article 24 
 
(1)  The buyer , may the gods mentioned in Article 36 (1) b) 1, 2. and 3. of the Customs Code 
deliver to the seller directly or indirectly. Those goods, except those mentioned in b) 2, later must 
be used and incorporated or consumed in production of the imported goods.     
 
(2)  Goods mentioned in Article 36 (1) b) 1. of  the Customs Code, supplied by the buyer can be 
supplied from any foreign country, including the country of the seller.  
 
(3)  For the goods mentioned in Article 36 (1) b) 3. of the Customs Code shall be considered 
goods mentioned in Article 36 (1) b) 1. of the Customs Code, if they are not bought abroad, as well as consumed materials.         
Article 25 
 
 For the purposes of Article 36 (1) e) and Article  37 (1) a) of the Customs Code, the place of 
introduction into the customs territory of the Republic of Macedonia shall be: 
a) for goods carried by rail, road or inland waterw ay - the place where the first customs office is 
situated; 
b) for goods carried by air transport - the place of the first destinated airport; 
c) for goods carried by other means - the place wher e the land frontier of the customs territory of 
the Republic of Macedonia is crossed. 
 
Article 26 
 
 In applying Article 36 (1) e) and 37 (1) a) of the Customs Code: 
 
a) where goods are carried by the same mode of  transport to a point beyond the place of 
introduction into the customs territory of the Republic of Macedonia, transport costs shall be assessed in proportion to the distance covered outsi de and inside the customs territory of the 
Republic of Macedonia, unless evidence is produced  to the customs authority to show the 
costs that would have been incurred under a ge neral compulsory schedule of freight rates for 
the carriage of the goods to the place of introduc tion into the customs territory of the Republic 
of Macedonia; 
b) where goods are invoiced at a uniform free dom icile price which corresponds to the price at 
the place of introduction into the customs territo ry of the Republic of Macedonia, transport G/VAL/N/1/MKD/1 
Page 18  
 
costs within the customs territory of Republic of Macedonia shall not be deducted from that 
price. However, such deduction shall be allo wed if evidence is produced to the customs 
authority that the free-frontier price would be lower than the uniform free domicile price; 
c) where transport is free or provided by the buye r, transport costs to the place of introduction, 
calculated in accordance with the schedule of freight rates normally applied for the same 
modes of transport, shall be included in the customs value. 
 
 
Article 27 
 
(1)  All postal charges levied up to the place of destination in respect of goods sent by post shall 
be included in the customs value of these goods, with the exception of any supplementary postal 
charges levied in the Republic of Macedonia. 
 
(2)  No adjustment to the declar ed value shall, however, be made in respect of such charges in 
determining the value of consignm ents of a non-commercial nature. 
 
(3)  Paragraphs 1 and 2 are not applicable to goods carried by the express postal services. (known 
as EMS)  
 
Article 28 
 
(1)  For the purposes of Article 38-e of the Cust oms Code, when a customs declaration has been 
presented, and where the customs authority on h as reason to doubt the truth or accuracy of the 
particulars or of documents produced in support of  this declaration, the customs authority may 
ask to be provided with further explanation, including documents or other evidence, that the declared value represents the total amount actually paid or payable for the imported goods, in 
accordance with the provisions of Article 29 of the Customs Code.  
 
(2)  If, after receiving further information, or in  the absence of a response, the customs authority 
still has reasonable doubts about the truth or accuracy of the declared value, it may be deemed that the customs value of the imported goods cannot be determined under the provisions of 
Article 29 of the Customs Code.  
 
(3)  Before taking a final decision, the customs authority shall communicate to the importer, in 
writing if requested, its grounds for doubting th e truth or accuracy of the particulars or 
documents produced and the importer shall be given a reasonable opportunity to respond.  
 
(4)  When a final decision is made, the customs authority shall communicate to the importer in 
writing its decision and the grounds therefore. 
 
 
 
 
 
Article 29 
 
 For 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 strictly confidential, provisions of 
Article 19 of the Customs Code shall apply.    
 
Article 30 
  G/VAL/N/1/MKD/1 
 Page 19 
 
 
(1)  Where it is necessary to establish a customs value for the purposes of Articles 28 to 38-h of 
the Customs Code, a declaration of particular s relating to customs value (customs value 
declaration) shall accompany the customs declaration made in respect of the imported goods. The 
value declaration shall be drawn up on a form DC V (customs value declaration) corresponding to 
the specimen in Annex 3 being integral part of this Regulation.  
 
(2)  DCV set is made of two sheets, the first one containing answers, lis ted on the sample, given 
to the questions concerning the establishing of th e customs value, while the second one contains 
numerical details necessary to establish the customs value.  
  If one SAD set for importation covers goods classified under more than three different 
subheadings, DCV form is supplemented by one or more DCV-BIS forms corresponding to the 
specimen in Annex 4 being integral part of this Regulation, in or der to allow all subheadings in 
the SAD for importation to be covered.      
  Each DCV and DCV-BIS form shall measur e 210 x 297 mm; a tolerance of up to minus 5 
mm or plus 8 mm in the length may be allowed. The form must be printed on self-copying paper 
not containing mechanical pulp and weighting not less than 40gr/m2. The paper must be of 
sufficient strength so that details on one sheet of  the forms shall not affect the validity on the 
other sheet and its strength shall be such that  in normal use it does not easily tear or crease.       
DCV and DCV- BIS forms are printed in two co pies. First copy of the DCV and DCV- BIS 
forms are retained by the customs authority att ached to the relevant SAD, while the second copy 
after being authenticated by the customs author ity is returned to the declarant.     
 
(3)  The customs value declaration provided for in  paragraph 1 shall be made only by a person 
established in the Republic of Macedonia and in possession of the relevant facts. 
 
(4)  The customs authority may waive the requi rement of a DCV on the form referred to in 
paragraph 1 where the customs value of the goods  in question can not be determined under the 
provisions of Article 29 of the Customs Code. In such cases the person referred to in paragraph 3 
shall furnish or cause to be furnished to the cu stoms authority such other information as may be 
requested for the purposes of determining th e customs value under another Article of the 
Customs Code. Such other information shall be  supplied in such form and manner as may be 
prescribed by the customs authority. 
 
(5)  The person referred to in paragraph 3 shall be  responsible, without prejudice to the possible 
application of penal provisions, for the lodging  with a customs office of a Customs Value 
Declaration required by paragraph 1 in respect of:  
— the accuracy and completeness of the particulars given in the customs value declaration, 
— the authenticity of the documents produced in support of these particulars given in the  
customs value declaration, and 
— the supply of any additional information or  documents necessary to establish the customs 
value of the goods. 
 
 
 
Article 31 
 
(1)  Except where it is essential for the correct app lication of import duties, the customs authority 
shall waive the requirement of furnishing all or pa rt of the customs value declaration provided for 
in Article 30 (1) in the following cases: 
 
a) where the customs value of the imported goods in a consignment does not exceed 500 EUR, 
provided that they do not constitute split or mu ltiple consignments from the same consignor to 
the same consignee; or G/VAL/N/1/MKD/1 
Page 20  
 
b) where the importations involved are of a non-commercial nature; or 
c) where the declaration of the particulars in question is not necessary for the application of the 
Customs Tariff or where the customs duties provided for in the Tariff are not chargeable  
pursuant to specific customs provisions. 
 
(2)  In the case of continuing traffic in goods supp lied by the same seller to the same buyer under 
the same commercial conditions, the customs authority may waive the requirement that all 
particulars under Article 31 (1) be furnished in support of each customs declaration, but shall 
require them whenever the circumstances change and at least once every three years. 
 
(3)  A waiver granted under this Article may be  withdrawn and the submission of a DCV may be 
required where it is found that a condition necessary to qualify for that waiver was not or is no 
longer met. 
 
Article 32 
 
 Where computerized systems are used, or where the goods concerned are the subject of 
simplified customs declaration, the customs author ity may authorize variations in the form of 
presentation of data required for the determination of customs value. 
 
Article 33 
 
(1)  The person referred to in Article 30 (3) shall furnish the customs authority with two copies of 
the invoice on the basis of which the value of th e imported goods is declared. One of these copies 
shall be retained by the customs authority; the ot her, bearing the stamp of the office in question 
and the serial number of the customs declaration at the said customs office shall be returned to 
the declarant for forwarding to the person to whom the invoice is made out. 
 
 (2)  The person referred to in Article 30 (3) shall furnish the customs authority all relevant 
information of other payments done or to be done ( i.e. invoice of transport costs, insurance 
documents, etc), and upon request of the cust oms authority other documents necessary to 
establish the customs value.  
 
Article 34 
 
 With the publication of this Regulation the Regulation on the rules and procedures for customs valuation published in the Official ga zette of the Republic of Macedonia  17/2000) is 
repealed.   
 
Article 35 
 
 This Regulation shall enter into force the following day of its publication in the Official Journal of the Republic of Macedonia.   G/VAL/N/1/MKD/1 
 Page 21 
 
 
ANNEX 1 
 
(b) INTERPRETATIVE NOTES ON CUSTOMS VALUE 
 
First column Second column 
Reference to provisions 
of the Customs Code Notes 
Article 29 (1)  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 impor ted goods are not part of the customs 
value. 
Article 29 (1) a), third 
indent An example of such restriction would be the case where a seller requires a 
buyer of automobiles not to sell or exhibit them prior to a fixed date which 
represents the beginning of a model year. 
Article 29 (1) b)  Some examples of this include: 
(a) the seller establishes the price of the imported goods on condition that 
the buyer will also buy other goods in specified quanties; 
(b) the price of the import goods is dependent upon the price or prices at 
which the buyer of the imported g oods 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-finished goods which have been provided by the seller on condition 
that he will receive a specified quantity of the finished goods. 
However, conditions or considera tions relating to the production or 
marketing of the imported goods sha ll not result in rejection of the 
transaction value. For example, the fact that the buyer furnishes the seller with engineering and plans undertaken in the country of importation shall 
not result in rejection of the transac tion value for the purposes of Article 
29 (1). 
Article 29 (2)  1. Paragraphs 2 a) and b)  provide different means of establishing the 
acceptability of a transaction value. 
2. Paragraph 2 a) provides that where the buyer and the seller are related, 
the circumstances surrounding the sale shall be examined and the 
transaction value shall be accepted as the customs value provided that 
the relationship did not influence the price. It is not intended that there 
should be an examination of the circumstances in all cases where the 
buyer and the seller are related.  Such examination will only be 
required where there are doubts about the acceptability of the price. Where the customs authority has no doubts about the acceptability of the price, it should be accepted without requesting further information 
from the declarant. For example, the customs authority may have 
previously examined the relationshi p, or it may already have detailed 
information concerning the buyer and the seller, and may already be 
satisfied from such examination or information that the relationship 
did not influence the price. 
3. Where the customs authority is unable to accept the transaction value 
without further inquiry, it should give the declarant an opportunity to G/VAL/N/1/MKD/1 
Page 22  
 
supply such further detailed information as may be necessary to 
enable it to examine the circumstances surrounding the sale, in this context, the customs authority should  be prepared to examine relevant 
aspects of the transaction, including the way in which the buyer and seller organize their commercial relations and the way in which the 
price in question was arrived at, in  order to determine whether the 
relationship influenced the price. Wh ere it can be shown that the buyer 
and seller, although related under th e provisions of Article 3 of this 
Regulation, buy from and sell to each ot her 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 pr icing practices of the industry in 
question or with the way the seller settles prices for sales to buyers 
who are not related to him, this would demonstrate that the price had 
not been influenced by the relationshi p. As a further example, where it 
is shown that the price is adequate to  ensure recovery of all costs plus 
a profit which is representative of the firm’s overall profit realized over a representative period 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 declarant to 
demonstrate that the transaction value closely approximates to a ‘test’ value previously accepted by the customs authority and is therefore acceptable under the provisions of Article 29. 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 authority already has 
sufficient information to be sa tisfied, without further detailed 
inquiries, that one of the tests provided in paragraph 2 b) has been met, there is no reason for them to require the declarant to demonstrate that the test can be met. 
Article 29 (2) b)  A number of factors must be taken into consideration in determining 
whether one value ‘closely approximates’ to another value. These factors include the nature of the imported goods , the nature of the industry itself, 
the season in which the goods are imported, and, whether the difference in values is commercially significant. Si nce 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 coul d be unacceptable while a large 
difference in a case involving another type of goods might be acceptable 
in determining whether the transaction value closely approximates to the 
‘test’ values set forth in Article 29 (2) b). 
Article 29 (3) a)  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. 
Article 30 
Article 31 1. In applying these pr ovisions, the customs authority shall, where 
possible, use a sale of identical or  similar goods, as appropriate, at the 
same commercial level and in substantially the same quantity as the goods being valued. Where no such sale is found, a sale of identical or similar goods, as appropriate, that takes place under any one of the 
following three conditions may by used: 
(a) a sale at the same commercial level but in a different quantity;  G/VAL/N/1/MKD/1 
 Page 23 
 
 
(b) a sale at a different commercial level but in substantially the same 
quantity; or 
(c) a sale at a different commercial level and in a different quantity. 
2. Having found a sale under any one of these three conditions 
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. A condition for adjustment because of different commercial levels or 
different quantities is that such ad justment, 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 pricesreferring to different levels or diffe rent quantities. As an example of 
this, if the imported goods being valu ed consist of a shipment of 10 
units and the only identical or similar imported goods, as appropriate, for which a transaction value exists i nvolved 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 price 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 
other quantities. In the absence of such an objective measure, however, the determination of a customs value under the provisions of Article 30  and Article 31is not appropriate. 
Article 30 (1) b) 
Article 31 (1) b) The expression ‘and/or’ allows the flexib ility to use the sales and make the 
necessary adjustments in any one of the three conditions described in 
paragraph 1 of the interpretative note to Articles 30 and 31. 
Article 33 (1) a) 1.  1. The words ‘profit a nd general expenses’ shoul d be taken as a whole. 
The figure for the purposes of this deduction should be determined on the basis of information supplied by the declarant unless his figures are inconsistent with those obtaining in sales in the Republic of Macedonia of imported goods of the same class or kind. Where the declarant’s figures are inconsistent with such figures, the amount for 
profit and general expenses may 
be based upon relevant information 
other than that supplied by the declarant. 
2. In determining either the commissi ons or the usual profits and general 
expenses under this provision, the question whether certain goods are of the same class or kind as other goods must be determined on a case-by-case basis by reference to the ci rcumstances involved. Sales in the 
Republic of Macedonia of the narrowest group or range of imported goods of the same class or kind, which includes the goods being valued, for which the necessary information can be provided, should 
be examined. For the purposes of this provision, ‘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. 
Article 33 (2)  1. Where this method of valu ation is used, deductions made for the value 
added by further processing shall be based on objective and 
quantifiable data relating to the cost  of such work. Accepted industry G/VAL/N/1/MKD/1 
Page 24  
 
formulas, recipes, methods of construction, and other industry 
practices would form the basis of the calculations. 
2. This method of valuation would nor mally not be applicable when, as a 
result of the 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 
determined 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 34 1. As a general rule, customs value is determined under these provisions 
on the basis of information readil y available in the Republic of 
Macedonia. In order to determine a computed value, however, it may 
be necessary to examine the cost of producing the goods being valued 
and other information which has to be obtained from outside the 
Republic of Macedonia. Furthermore, in most cases the producer of 
the goods will be outside the jurisdiction of the authorities of the Republic of Macedonia. The use of the computed value method will generally be limited to those cases where the buyer and seller are related, and the producer is prepared to supply to the authorities of the 
Republic of Macedonia the necessary costings and to provide facilities 
for any subsequent verification which may be necessary. 
2. The ‘cost or value’ referred to in Article 34 (1) a), 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 accounts of the producer, provided that such accounts are consistent with the generally accepted accounting 
principles applied in the country where the goods are produced. 
3. The ‘amount for profit and general expenses’ referred to in Article 34 
(1) b), is to be determined on the basis of information supplied by or on behalf of the producer unless his 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 Republic of Macedonia. 
4. No cost or value of the elements referred to in this Article shall be 
counted twice in determining the computed value. 
5. It should be noted in this context that the ‘amount 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 his general expenses are high, his profit and ge neral expenses taken together may 
nevertheless be consistent with that usually reflected in sales of goods of the same class or kind. Such a situation might occur, for example, if 
a product were being launched in the Republic of Macedonia and the 
producer accepted a nil or low profit to  offset high general expenses 
associated with the launch. Where the producer can demonstrate that 
he is taking a low profit on his sales of the imported goods because of 
particular commercial circumstances, his actual profit figures should 
be taken into account provided that he has valid commercial reasons to 
justify them and his pricing policy reflects usual pricing policies in the  G/VAL/N/1/MKD/1 
 Page 25 
 
 
branch of industry concerned. Such a situation might occur, for 
example, where producers have been forced to lower prices 
temporarily because of an unforeseeable drop in demand, or where they sell goods to complement a range of goods being produced in the Republic of Macedonia and accept a low profit to maintain 
competitivity. Where the producer’s own figures for profit and general 
expenses are not consistent with t hose 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 Republic of Macedonia, the amount for profit and general expenses 
may be based upon relevant informati on other than that supplied by or 
on behalf of the producer of the goods. 
6. 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 the circumstances involved. In determin ing the usual profits and general 
expenses under the provisions of Article 34, sales for export to the Republic of Macedonia of the narrowest group or range of goods, which includes the goods being va lued, for which the necessary 
information can be provided, should be examined. For the purposes of Article 34, ‘goods of the same class or kind’ must be from the same country as the goods being valued. 
Article 35 (1) 1. Customs values determin ed under the provisions of Article 35 (1) 
should, to the greatest extent po ssible, be based on previously 
determined customs values. 
2. The methods of valuation to be employed under Article 35 (1) should 
be those laid down in Articles 29 and 34, but a reasonable flexibility 
in the application of such methods would be in conformity with the aims and provisions of Article 35 (1). 
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 33 and 34 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; customs values of similar imported goods al ready determined under the 
provisions of Articles 33 and 34 could be used; 
(c) deductive method — the requirement that the goods shall have 
been sold in the ‘condition as imported’ in Article 33 (1) a) of the 
Customs Code could be flexibly  interpreted; the ‘90 days’ 
requirement could be administered flexibly. 
Article 36 (1) b) 2. 1. There are two factors involved in the apportionment of the elements 
specified in Article 36 (1) b) 2. to the imported goods — the value of the element itself and the way in whic h that value is to be apportioned G/VAL/N/1/MKD/1 
Page 26  
 
to the imported goods. The apportionment of these elements should be 
made in reasonable manner appropriate to the circumstances and in accordance with generally accep ted accounting principles. 
2. Concerning the value of the element, if the buyer acquires the element 
from a seller not related to him at a given cost, the value of the 
element is that cost. If the element was produced by the buyer or by a 
person related to him, its value would be the cost of producing it. If the element had been previously used by the buyer, regardless of whether it had been acquired or produced by him, the original cost of acquisition or production would have to be adjusted downwards to 
reflect its use in order to arrive at the value of the element. 
3. Once a value has been determined  for the element, it is necessary to 
apportion that value to the imported goods. Various po ssibilities exist. 
For example, the value might be apportioned to the first shipment, if the buyer wishes to pay duty on the entire value at one time. As 
another example, he may request that the value be apportioned over 
the number of units produced up to the time of the first shipment. As a 
further example, he 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 buyer. 
4. As an illustration of the above, a buyer provides the producer with a 
mould to be used in the production of the imported goods and contracts with him 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 buyer may request the customs authority to apportion the 
value of the mould over 1 000, 4 000 or 10 000 units. 
Article 36 (1) b) 4. 1. Additions for the elemen ts specified in Article 36 (1) b) 4. should be 
based on objective and quantifiable data. In order to minimize the 
burden for both the declarant and cust oms authority in determining the 
values to be added, data readily available in the buyer’s commercial 
record system should be used insofar 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 possi ble to calculate 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 product. In such cases, a
direct adjustment may appropriately be made under the provisions of 
Article 36. 
5. In another case, a firm may carry the cost of the design centre outside 
the country of importation as a general overhead expense without 
allocation to specific products. In this instance, an appropriate adjustment could be made under the provisions of Article 36 with 
respect to the imported goods by ap portioning total design centre costs 
over total production benefiting from the design centre and adding  G/VAL/N/1/MKD/1 
 Page 27 
 
 
such apportioned cost on a unit basis to imports. 
6. Variations in the above circumstan ces will, of course, 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 
Republic of Macedonia. 
Article 36 (1) c)  The royalties and licence fees referred to in Article 36 (1) c) may include, 
among other things, payments in resp ect to patents, trademarks and 
copyrights. 
Article 36 (2)  Where objective and quantifiabl e data do not exist with regard to the 
additions required to be made unde r the provisions of Article 36, the 
transaction value can not be determined under the provisions of Article 29. 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 im ported 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 
separately identifiable, or when the royalty can not be distinguished from special financial arrangements between the buyer and the seller), it would 
be inappropriate to attempt to make an  addition for the royalty. 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. 
 
 
 
 
First column Second column 
Reference to provisions 
of the Regulation Notes 
Article 3 (1) e)  One person shall be deemed to control another when the former is legally 
or operationally in a position to exercise restraint or direction over the latter. 
Article 11 (1)  1. As an example of this, goods are sold from a price list which grants 
favourable unit prices for purchases made in larger quantities. 
Sale quantity Unit price Number of sales Total quantity 
sold at each price
1 to 10 units 100 10 sales of 5 units 
Five sales of 3 units 65 
11 to 25 units 95 Five sales of 11 units 55 
Over 25 units 90 One sale of 30 units 
One sale of 50 units 80 
The greatest number of units sold at a price is 80; therefore, the unit G/VAL/N/1/MKD/1 
Page 28  
 
price in the greatest aggregate quantity is 90. 
2. 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 curre ncy units each. In this example, the 
greatest number of units sold at a particular price is 500; therefore, the 
unit price in the greatest aggregate quantity is 95. 
3. A third example would be the following situation 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) Total 
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. 
 
  G/VAL/N/1/MKD/1 
 Page 29 
 
 
ANNEX 2 
 
APPLICATION OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES  
FOR THE DETERMINATION OF CUSTOMS VALUE 
 
(1)  "Generally accepted accounting principles" re fers 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 disclosed, and which financial statements 
should be prepared. These standards may be br oad guidelines of general application as well as 
detailed practices and procedures. 
(2)  For the purposes of the application of the cu stoms valuation provisions , the customs authority 
shall utilize information prepared in a manner consistent with gene rally accepted accounting 
principles in the country which is appropriate for the Article in question. For example, the 
determination of usual profit and general expenses under the provisions of Article 33 (1) a) 1. of 
the Customs Code would be carried out utilizing information prepared in a manner consistent 
with generally accepted accounting principles of the Republic of Macedonia. On the other hand, 
the determination of usual profit and general expenses under the provisions of Article 34 (1) b) of 
the Customs Code would be carried out utilizing information prepared in a manner consistent 
with generally accepted accounting principles of the country of production. As a further example, 
the determination of an element provided for in Article 36 (1) b) 2. of the Customs Code 
undertaken in the Republic of Macedonia would be carried out utilizing information in a manner 
consistent with the generally accepted accounting principles.  
 
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