WORLD TRADE  
ORGANIZATION  G/VAL/W/169 
17 June 2008 
 (08-2839) 
Committee on Customs Valuation Original:   English 
  
 
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
Replies to the Questions from the Delega tions of the United States and Canada
 
 
Communication from the delegation of Egypt 
 
  The following communication, dated 10 June 2008,  is being circulated at the request of the  
delegation of Egypt.   
 
_______________ 
 
 
QUESTIONS FROM THE UNITED STATES
 
 
1. Articles 2 and 3, Transaction Value of Identical or Similar Goods  
 Definitions of "Identical Goods" and "Sim ilar Goods" relevant to the application of 
Articles 2 and 3 of the WTO Customs Valuation Agreement, are contained in Article 15 of the Agreement.  The Egyptian law does not appear to include any definitions of these 
terms.  Are definitions included elsewhere? 
 
 The definitions are included in the introductory  chapter of the Ministerial Decree No. 10 of 
year 2006 for issuing the Executive Regulation fo r the Customs Law No. 66 for year 1963.  The 
introductory chapter includes definitions of variou s terms including those terms relevant to the 
Customs Valuation Agreement of the WTO.  Accordi ng to the introductory chapter, the definitions of 
the terms relevant to the Customs Valuati on Agreement of the WTO are as following: 
  Identical Goods
:  
  These goods for which transaction value have previously been accepted and which are the 
same in all respects, including physical  ch aracteristics, quality and reputation.  Minor 
differences in appearance would not preclude  goods which otherwise conform to the 
definitions from being regarded as identical.  The definition excludes imported goods which 
incorporate engineering, development, artwork and design work undertaken in Egypt. 
 
 Goods are considered identical unless they have  been produced in the same country as the 
goods being valued and by the same producer of that good.  Identical goods produced by a different producer in the same country may be  taken into account only in the case where there 
are no identical goods produced by the same producer in the country of production of the goods being valued. 
 
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  Similar Goods
: 
  These goods for which transaction value have previously been accepted and which, although 
not the same in all respects,  closely resemble the goods being valued in terms of 
characteristics and component materials which en able them to perform the same functions 
and to be commercially interchangeable, taking in to consideration the quality and reputation.  
The definition excludes imported goods which inco rporate engineering, development, artwork 
and design work undertaken in Egypt. 
  Goods are not considered similar unless they have been produced in the same country as the 
goods being valued and by the same producer of that good.  Similar goods produced by a 
different producer in the same country may be  taken into account only in the case where there 
are no similar goods produced by the same producer in the country of production of the goods being valued. 
 2. Article 8, Adjustments to Price actually Paid or Payable
 
Article 8.1(b) provides for the addition of certain specified goods and services, 
apportioned as appropriate.  Although Article 14, Ministerial Decree, pr ovides for these additions, there is no 
reference to apportioning the value of these goods and services. Is this provided for 
elsewhere? 
 
 The Egyptian Customs is going to amend Article 14(d) of the Ministerial Decree No. 10 for year 2006 for issuing the Executive Regulation for th e Customs Law to be as follows: "the value of 
the following goods and services where supplied by the bu yer, directly or indirectly, free of charge or 
at a reduced cost, for use in connection with the pr oduction of the imported goods, to the extent that 
this value has not been added to the price actually  paid or payable apporti oned as appropriate on the 
basis of the first partial consignment or the cons ignment as a whole or on the basis of the number of 
produced units, at the request of the importer.  
3. Article 11, Right of Appeal without Penalty
 
Article 11 of the WTO Valuation Agreement requires, among other things, that the 
legislation of each Member provide for the right of appeal, without penalty, of a determination of customs value to a judicial authority.  Article 34 of the Ministerial Decree provides for the right  of appeal to "the relevant 
post manager, general director or head of central directorate before restoring to 
arbitration".  Can an importer or other person liable for the payment of the duty appeal a customs value determination to a judicial authority? If so, where in Egyptian law is this provided? 
 
  Articles from 165 to 174 of the Executive Re gulation for the Customs Law (Ministerial 
Decree No. 10 for year 2006) regulate the steps of th e right of appeal against the decision of the 
customs starting from appeals from the releva nt general manager to the arbitration. 
 
  In addition, Article 57 of the Customs Law No. 66 for the year 1963 and its amendments 
gives the right to the person liable for the paymen t to appeal a customs value determination to a  G/VAL/W/169 
 Page 3 
 
 
  judicial authority in the cases stated in the arb itration law in the articles related to civil and 
commercial issues that were issued by law No. 27 for year 1994.    
 
4. Article 12, Publication  
Article 12 of the WTO Valuation Agreement requires that laws, regulations, judicial 
decisions and administrative rulings of general application giving effect to the 
Agreement be published in conformity with Article X of GATT 1994.    In document G/VAL/N/2/EGY/1, Egypt states that the judicial decisions and administrative rulings are not generally published.  Does Egypt publish its laws, 
regulations, judicial decisions and administrative rulings of general application related 
to customs valuation?  If not, how does Egypt comply with its WTO commitments under GATT Article X and Article 14 of the Customs Valuation Agreement? 
   
  The Egyptian Customs publishes laws, regulations, judicial decisions and administrative decisions and rulings that are of general applica tion related to customs valuation through many ways 
including:  1. The Ministerial Decree No. 10 for year 2006 for issuing the Executive Regulation for the 
Customs Law. 
 
2. The specialized Customs magazine that is distributed monthly on all customs officers and 
people dealing with the Customs. 
 3. The Egyptian Official Gazette in which all the laws, executive regulations and the decisions 
that are of general application nature are published. 
 
4. The Customs Culture Institute holds training courses in different customs fields which are 
offered for customs officers and pe ople dealing with the Customs. 
 5. The Egyptian Customs website on the internet. 
 
5. Article 13, Release of Goods upon Sufficient Guarantee
 
Article 13 of the WTO Valuation Agreement requires that if, in the course of 
determining the customs value of an imported good it becomes necessary to delay the final determination of customs value, good s shall be released to the importer upon 
provision of a sufficient guarantee.  Article 31, Ministerial Decree, states that goods 
“may” be released at the importer’s request a fter submission of a financial guarantee. 
 What are the situations in which Egyptian Customs requires the importer to submit a financial guarantee?  Are these situations limited to cases falling under Article 13, where there is a delay in the final determination of the customs value of the goods, or are there other situations in which a guarantee is required?  In cases falling under Article 13, if 
the importer submits a financial guarantee, are there circumstances in which goods 
would not be released? 
  
 In case of a delay in determining the custom value determination and according to Article 31 
of the Executive Regulation for the Customs Law, the importer may submit a request for the release 
of his goods after submission of a financial guarant ee equal to the amount of Customs taxes and other 
duties and taxes.   G/VAL/W/169 
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   As for the situations in which the Egyptian Customs requires the importer to submit financial 
guarantee they are:  1. Determination of value as a basis for the tax ta kes time to submit documents or explanations 
for the purposes of valuation. 
 
2. Inspecting the imported disjointed goods in th e final assembly site that are released as a 
guarantee until it is finally assembled. 
 3. Resorting to primary arbitration, supr eme arbitration and judiciary arbitration. 
 
4. Release of goods under reservation.  5. Completing the documents related to applying agreements and rules of origin certificates. 
  
 As for other situations in which a guarantee is required, there are other situations but they do 
not fall under the customs value determination.   Situations in which release of goods is prohibited are:  1. The refusal of the Ministry of Trade and Industry to release the goods that do not satisfy the 
import aspects specified in the Egyptian Law of importation and exportation (Law No. 118 
for year 1975) and its executive regulation that  is issued by Ministerial Decree No. 770 for 
year 2005. 
 2. The imported goods do not satisfy the standard s set by the relevant monitoring and standard 
setting bodies.  
 
6. Article 14, Interpretative Notes
 
A review of the Customs Law and the Ministerial Decree indicates that Egypt has 
incorporated only a few of the Interpretative Notes.  Many important provisions, such  
as the use of Generally Accepted Accountin g Principles (GAAP) (General Note), the 
definition of “price actually paid or payable” (Note to Article 1), the explanation 
regarding the circumstances of sale test set forth (Note to Article 1), the proper application of Articles 5 and 6 (Notes to Arti cles 5 and 6), the proper application of the 
Article 8 adjustments, including details about apportionment (Note to Article 8), have not been included.  
 
Egypt states in G/VAL/N/2/EGY/1, paragraph 13 , that:  no specific provision has been 
made regarding the implementation of this article (i.e., Article 14). However, it is a general understood concept under the Egyptian constitution that all of the elements of the customs valuation agreement, having been ra tified by the Peoples’ Assembly  in 1995 
and the relevant Presidential Decree No. 72 for year 1995 published in the national 
gazette in 12/6/1995 takes primacy over the national laws. 
 In view of the fact that the Interpretative Notes are integral to the proper implementation of the Agreement, the in clusion of some, and absence of other, 
interpretative notes in the Customs Law or the Ministerial Decree, regulations or 
elsewhere raises transparency concerns.  Do es Egypt have any plans to incorporate 
them?   
   G/VAL/W/169 
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   When implementing the Customs Valuation Ag reement the Customs take promptly into 
consideration the Interpretative Notes of the Agr eement along with the Egyptian Customs Law and its 
Executive Regulation. 
 
7. Used Cars  
 Article 29 of the Ministerial Decree provides special rules for determining the value of 
used cars imported for personal or private use.  Does Egypt determine the value of used cars based on the FOB value?  Is this value based on the price actually paid or payable by the buyer?  If not, how is it determined?  
  Egypt determines the value of used cars based on DEQ (Delivered Ex Quay) = CIF + 
Unloading Charges according to Article 22 of th e Egyptian Customs Law and Executive Regulation. 
  As for the question concerning determining th e value of used cars based on discounted FOB 
value by the value of usage of the car. For exampl e, if a person owns a car outside the country and 
brings it to Egypt to release it after a certain period of time, the FOB value of this car is discounted 
according to the model of the car. 
 G/VAL/W/169 
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  QUESTIONS FROM CANADA
 
 
 Does the Egyptian legislation give importer s the right to appeal to the judiciary as 
stipulated under Article 11.2 of the Customs Valuation?   
 The Agreement stated that each Member sha ll provide for the right of appeal without 
penalty to the judicial authority. Article 32 of  the Egyptian legislation made reference to an 
internal administrative appeal before restoring to arbitration. Could Egypt clarify what is understood by arbitration?      
  Articles from 165 to 174 of the Executive Regul ation for the Customs Law (Ministerial 
Decree No. 10 for year 2006) regulate the steps of th e right of appeal against the decision of the 
customs starting from appeals from the releva nt general manager to the arbitration. 
   In addition, Article 57 of the Customs Law No. 66 for the year 1963 and its amendments 
gives the right to the person liable for the paymen t to appeal a customs value determination to a 
judicial authority in the cases stated in the arb itration law in the articles related to civil and 
commercial issues that were issued by law No. 27 for year 1994.    
 
 
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