WORLD TRADE  
ORGANIZATION  G/VAL/W/144 
30 March 2005 
 
 (05-1295) 
Committee on Customs Valuation  
  
 
SRI LANKA – [DRAFT] DECISION CONCERNING PARAGRAPH 2 OF  
ANNEX III OF THE AGREEMENT ON IMPLEMENTATION  
OF ARTICLE VII OF THE GENERAL AGREEMENT  
ON TARIFFS AND TRADE 1994 
 
Draft Decision 
 
 
 TAKING into account Sri Lanka's request1 for a further delay in its full application of the 
provisions of the Agreement on Implementation of Article VII of the General Agreement on Tariffs 
and Trade 1994 (Customs Valuation Agreement) and,  more specifically, for an extension of the 
reservation granted by the Committee2 pursuant to paragraph 2 of Annex III of the Customs Valuation 
Agreement;   NOTING the recent submission
3 by Sri Lanka of a plan for the phase-out of minimum values 
applied under the terms of th e above-mentioned reservation; 
 
 NOTING that Sri Lanka became a contracting party to the Customs Valuation Agreement as 
of 1 January 1995 and invoked para graph 1, Article 20 of that Agreement, and was therefore 
scheduled originally to apply the provisions of the Agreement on 1 January 2000;  
NOTING that Sri Lanka was granted a one-year de lay in its application of the provisions of 
the Customs Valuation Agreement from 1 January 2000 to 1 January 2001
4, and, due to unforeseen 
developments, was granted furthe r delays until 31 October 20015, 30 April 20026, 31 October 20027 
and 28 February 20038; 
 
NOTING that, in all other regards, Sri Lanka  implemented fully the Customs Valuation 
Agreement and Paragraph 2 of the Decision on the Va luation of Carrier Media Bearing Software for 
Data Processing Equipment9 as of 28 February 2003; 
 
 NOTING Sri Lanka's long-standing commitment a nd considerable efforts in reforming and 
modernizing its customs administration and in ensuring the effective implementation and administration of the WTO Agreement on Customs Valuation; 
 
NOTING that the Government of Sri Lanka does not use or plan to use preshipment 
inspection services in customs administration and valuation; 
                                                     
 
1 G/VAL/W/140. 
2 G/VAL/53. 
3 G/VAL/… 
4 G/VAL/23.  
5 G/VAL/41.  
6 G/VAL/42.  
7 G/VAL/46. 
8 G/VAL/52. 
9 G/VAL/5. G/VAL/W/144 
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 NOTING Sri Lanka's intention to ensure that this extended reservation will apply on a strictly 
limited and transitional basis;    NOTING that this extended reservation to ma intain minimum values will apply only to the 
following goods: 
          Description
            HS Tariff Code  
   Used tractors      ex 87.01 
  Used motor vehicles for transport of 10 or more  ex 87.02 
  persons   Used motor cars and other used motor vehicles   ex 87.03   principally designed for transport of persons    (other than those of tariff heading 87.02) including  
  used station wagons and used racing cars 
  Used motor vehicles for the transport of goods  ex 87.04 
 Used motor cycles     ex 87.11 
     NOTING that these minimum values will be used primarily for the purpose of addressing 
under-valuation problems; 
 
 NOTING that Sri Lanka will not submit a futu re request to maintain minimum values for 
other goods; and   NOTING the very exceptional character of Sri Lanka’s request; 
 
The Committee DECIDES, pursuant to paragraph 2 of  Annex III of the Agreement and paragraph 1 of 
the Ministerial Decision on Texts Relating to Mini mum Values and Imports by Sole Agents, Sole 
Distributors and Sole Concessionaires, adopted by the Committee in May 1995, that Sri Lanka may 
continue to use officially-established minimum values for the valuation for customs purposes until 
28 February 2006 for the above mentioned used motor vehicles and motor cycles classified under HS 
ex 87.01-87.04 and ex 87.11, accordi ng to the following terms and conditions: 
 1. Sri Lanka will implement the attached work plan for the phase-out of  the above-mentioned 
minimum values by no later than 28 February 2006;  
2. Sri Lanka will submit a report on the progr ess in implementing the above-mentioned work 
plan to the Committee by no later than 29 August 2005;  3. Sri Lanka will not apply minimum values to any other products than those specified in this 
decision;  
4. Sri Lanka will notify the Committee on Customs Valuation of any amendments or changes to 
the above-mentioned data sources, methodologies, basi s, criteria and other relevant information 60 
days before implementing such changes, and will not  apply such changes to importations entering its 
customs territory prior to the completion of this 60-day notification period;  
5. This Decision shall not prejudice the rights and obligations of Sri Lanka under the WTO 
Agreements, in particular those rights and oblig ations under the Customs Valuation Agreement. 
  
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ANNEX – WORK PLAN  
 
  
 
 
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