WORLD TRADE  
ORGANIZATION  G/C/W/524 
6 July 2005 
 
 (05-2968) 
Council for Trade in Goods Original:  French 
  
 
REQUEST FOR AN EXTENSION OF THE WAIVER PURSUANT TO  
ARTICLE IX OF THE WTO AGREEMENT IN RESPECT OF 
MINIMUM VALUES UNDER THE AGREEMENT ON 
IMPLEMENTATION OF ARTICLE VII 
OF THE GATT 1994 
 
SENEGAL 
   The following communication, dated 21 June 2005, is being circulated at the request of the 
delegation of Senegal. 
_______________ 
 
  I have the honour to inform you that the Gove rnment of Senegal has decided to address to the 
WTO a request for a two-year extension of the waiver it was granted to apply minimum values to 
goods contained in an exhaustive list of pr oducts (Decision of 17 May 2004, WT/L/571 of 
7 June 2004, for application until 30 June 2005).   Availing itself of the provisions of paragra ph 2 of Annex III of the Agreement on Customs 
Valuation, Senegal asked leave to  apply minimum values for a transitional period of three years to a 
restricted list of goods. 
  It has now proved necessary to obtain a two-y ear extension in order to achieve concrete 
results, hence our present request for a supplement to  the original one-year period set in the Decision 
of 17 May 2004, which expires on 30 June 2005.  
 Please find attached: 
  - A reasoned request;  and   - a status report on the implementation of minimum values (G/C/W/523, 
G/VAL/N/4/SEN/2). 
 
_______________ 
 
 Context 
 
 The Agreement on Implementation of Article  VII of the GATT 1994 (WTO Agreement on 
Customs Valuation) was incorporated in Senegal ese law on 1 July 2001, thus establishing the entry 
into force of a valuation system based on transaction value.  
 The above-mentioned Agreement t ook effect in a context marked by Senegal's involvement in 
a sub-regional integration process, culminating on 1 January 2000 with the introduction of a tariff G/C/W/524 
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 structure that reflects attainment of a fundament al objective of the WEAMU, namely harmonization 
of the import tariffs of all its member States.   Harmonization, implemented through a Common External Tariff (CET), includes the application of a maximum customs duty rate of  22 per cent, which amply fulfils Senegal's 
commitments in respect of tariff bindings and of  the GATT's general rules on preferential trade 
regimes.  Implementation of the CET also ba rs the creation of any new tariff lines and the 
introduction of any quantitative restrictions.   The almost simultaneous introduction of the CET and the new valuation system led to a 
rollback in protection that exceeds industry's capacity  to cope with certain unfair trade practices. 
  The need to oversee certain sectors deemed v ital, which prompted Senegal's request for 
authorization to use minimum values temporarily, is as present as it ever was.  
 Anti-competitive trade practices have weakened  certain sectors of Senegalese industry, which 
have suffered a loss in competitiveness.  
Reasons 
 
2.1 Period of validity
 
 
 Authorization to use minimum values was gr anted by the World Trade Organization (WTO) 
pursuant to Decision WT/L/571 of 7 June 2004 issuing a waiver for Senegal.  The decision imposed two conditions, one limiting the produ cts covered (see list) and the other limiting the duration (three 
years). 
 
 The waiver for Senegal took effect on the date  of notification of the WTO bodies, namely 
26 June 2002, whereas it was not actually implemen ted until June 2004.  This means that Senegal has 
not benefited fully from the waiver, which, legally, was to cover a period of three years but which was 
actually effective for only one year, expiring on 30 June 2005.  
 The waiver having been applied for such a s hort time, Senegal has been unable to submit to 
the Committee on Customs Valuation a status report on the implementation of minimum values.  The latter were applied officially only from 2 June 2004, so the results of the study on their economic and 
budgetary impact would not be meaningful enough.  
2.2 LDC Status
 
  The particular constraints linked to Senegal' s LDC status, which stem from the narrowness of 
the domestic market, the lack of infrastructure and th e high cost of the factors of production, are liable 
to exclude the country from world trade.  To reme dy this situation, the recent WTO Doha Ministerial 
Conference issued urgent recommendations, one of which called for favourable  consideration to be 
given to requests from LDCs for authorization to use minimum values. 
 2.3 Data base: valuation file
 
  Senegal is in the process of setting up a system of information on the value of goods, fed by a 
data base.  The data base will be used by Customs in risk assessment procedures.  The valuation file 
will therefore be designed with a view to assessi ng the potential risk of fraud and ascertaining the 
veracity and accuracy of the declared customs value of imported goods.  Data from the file will not be 
used either as substitute values or as a mechan ism for the establishment of minimum values.  The 
values in the data base will serve only as an indica tion of potential risk, or for targeting purposes.  G/C/W/524 
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2.4 Capacity-building and modernization  
  For the WTO Agreement on Customs Valuation to be implemented effectively, there will 
have to be new procedures and a significant impr ovement in the skills and knowledge of customs 
personnel.  The Customs Administration has embarked  on a series of measures to build its capacity 
and modernize its structures with a view to ultimately mastering customs valuation of the most sensitive products.  The measures, which are part of the Senegalese Customs strategic plan, are aimed 
at  
 - Training staff of the customs service in risk management, including risk analysis, 
documents control and post-importation auditing; 
  - improving the information technology b ase, and developing a data bank comprising 
information on importers, for use as a risk management tool; 
 
 - mastering new information technologies to  facilitate access to  export markets and 
product reference prices, with a view to ev aluating potential risks related to the value 
of imported goods. 
  To assist it in accomplishing these tasks, Senegal renews its request to the WTO for technical 
assistance. 
 
Conclusion  
 
 In light of the context described above, and in view of the substantive reasons explained in the 
foregoing paragraphs and of the need to encourag e technology transfer, as a matter of urgency, 
through trade mark and patent licensing contracts in the context of the ongoing relocation process, 
Senegal respectfully requests the Ge neral Council to grant it an extensi on of two further years in order 
to make up the full three-year period provided for in  the relevant paragraphs  of Decision WT/L/571 of 
7  June 2004.  
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