WORLD TRADE  
ORGANIZATION  G/VAL/W/200 
3 February 2011 
 (11-0527) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
Answers to the request of the Unite d States on the Ukrainian legislation
 
 
 
 The following communication, dated 1st February 2011, is circulated at the request of the delegation of Ukraine.  
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 Answer to Question 1 
 
 
It is not clear about what "reference prices" are meant. Ukraine since May 16, 2008 is a 
member of the WTO.  According to the commitme nts undertaken by Ukraine at accession, Ukraine's 
legislation on customs valuation was brought  in conformity with the GATT/WTO.  
 
The procedure and methods of determining cu stoms value of goods crossing the customs 
border of Ukraine are stipulated by the Article XI  of the Customs Code of Ukraine and are based on 
the Agreement on Implementation of Article VI I of GATT 1994, being the same for all goods 
crossing the customs border of Ukraine.  Customs value of goods and method of its determination 
have to be declared by the declarant when m oving goods across the customs border of Ukraine.  
According to the law, the method of determining the customs value of the contract at a price of imported goods (the cost of operations) should be considered as principle one.  
 
The control functions concerning correct determ ination by the Customs Code of Ukraine of 
the customs value of goods are assigned to the cu stoms authorities.  Article VII of GATT and the 
Agreement on implementation of Article VII of GATT  regulate the procedure of determination of the 
customs value of imported goods. The issues concerning control over the correctness of customs 
valuation are not regulated by referred WTO provi sions.  Thus, Article 17 of the Agreement on 
Implementation of Article VII of GATT provides that nothing shall be construed as limiting or 
discrediting the right of customs administrations to verify the accuracy or truth of any statement, 
document or declaration presented for the purposes of  customs valuation.  Therefore, any country 
reserves the right to establish its own system of control over the accuracy of customs valuation.  
 Procedures for monitoring the accuracy of determ ination of the customs value of goods are 
approved by the decree of the Cabinet of Ministers of Ukraine of 09.04.2008 № 339.  At the same 
time we would like to underline that control proce dures include measures that are being also applied 
by the WTO member states.  In particular, they concern the control over the documents presented for 
customs clearance; comparison of the level of th e declared customs value with the level of the 
customs value of identical or similar goods, cust oms clearance of which has already been made; 
verification of authenticity of documents submitted for the customs clearance by sending requests to 
the customs administrations of importing countries etc. 
 G/VAL/W/200 
Page 2  
 
  Based on the international practice, nowaday s the Customs Service of Ukraine uses the 
automated system for analysis and risk manageme nt as one of the mechanisms of control over the 
accuracy of customs valuation.   
Risk management system which is being used by the Customs Service of Ukraine is based on 
the International Convention on Simplification and Harmonization of Customs Procedures.  Analysis 
and risk management system is a software whic h is based on the system of evaluation of the 
probability of infringement of legislation, including the determination of the customs value of goods.  
It is used in the analysis of the electr onic version of the customs declaration.  
 
Thus, the system analysis and risk mana gement is only a recommendation for customs 
officials to use additional forms of customs c ontrol, including verification of documents and 
information which are submitted to verify the declared customs value.  
 
 Answer to Question 2  
 
Upon the implementation of control over the cu stoms value of goods, the customs authorities 
do not use reference prices.  Therefore, the system  of calculation of reference prices does not exist. 
 
Answer to Question 3  
 
As it was noted above when the control of de termination of customs value of goods is 
conducted, the customs authorities do not use any refe rence or indicative prices at all, including for 
fish as well.  
The order of determination of customs value and order of control of determination of customs 
value of goods are being equally applied to a ll goods crossing the customs border of Ukraine. 
 
Answer to Question 4
 
 
As it was noted above there are no any reference (indicative) prices. 
 
Answer to Question 5  
 
The order and methods of determination of customs value of goods crossing the customs 
border of Ukraine are provided in the Chapter XI  of the Customs Code and based on Agreement on 
Implementation of Article VII of GATT 1994. 
 
In accordance with Art. 266 of th e Customs Code method of defi nition of the customs value is 
the price of the contract concerning the goods impo rted (cost of operation/transaction value).  The 
cost of operation is used with the exception of c onditions mentioned in paragraph 4 of Art.267, which 
is in conformity with paragraph 1 of Article 1  of the Agreement. 
 
It should be noted, that Decision Regarding Cases where Customs Ad ministrations Have 
Reasons to Doubt the Truth or Accuracy  of the Declared Value states that:  
 
"When a declaration has been presented and wh ere the customs administration has reason to 
doubt the truth or accuracy of particulars or of docu ments produced in support of this declaration, the 
customs administration may ask the importer to provide further explanation, including documents or 
other evidence, that the declared value represents the total amount actually paid or payable for the 
imported goods, adjusted in accordance  with the provisions of Article  8.  If, after receiving further 
information, or in the absence of a response, the customs administration still has reasonable doubts 
about the truth or accuracy of the declared value, it may, bearing in mind the provisions of Article 11,  G/VAL/W/200 
 Page 3 
 
 
  be deemed that the customs value of the imported go ods cannot be determined under the provisions of 
Article 1."   
However, according to Article 264 of Customs Code of Ukraine and Article 13 of Agreement 
on Implementation of Article VII of GATT 1994, if it happens that while determining of the customs 
value there is a necessity to delay its final de termination, the importer can get goods for free 
circulation under sufficient guarantee.  Likewise, unde r this article (which corresponds to the Article 
11 of the same Agreement) a declarant has the righ t of appeal of a customs authority's decision on 
customs value of the goods to a "higher-level" cust oms administration, authority and / or the Court. 
 
 
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