./.  WORLD TRADE  
ORGANIZATION  G/VAL/W/146 
7 April 2005 
 
 (05-1434) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
Responses from Armenia to questions posed by the United States in G/VAL/W/128
 
 
 
 The following communication, dated 6 April 2005, has been received from the delegation of 
Armenia.  
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Question: 
 We seek clarification from Armenia on the application of the provisions for related parties.  We note 
that Article 87.2(e) does not contain the “circumstances of sale” test that is found in Article 1.2 of the 
Valuation Agreement and its respective notes.  How ever, paragraphs 3.8, 3.9 and 3.10 of Armenia’s 
interpretative notes contain the requisite provisions .  We would like to confirm that an importer will 
have the option to prove that the relationship did no t influence the price by either the “circumstances 
of sale” method or the “ test value” method.  Response: 
 
The WTO Customs Valuation Agreement Interpretat ive Notes (including paragraph 2(2) of the 
Notes to Article 1) have manda tory application to the determination of Customs value in 
Armenian law, pursuant to Article 82 of the Arme nian Customs Code.  The Interpretative Notes 
are established in Armenian law by Government Decree #2170/N, dated December 5, 2002.  An importer will therefore have the option to prove that the relationship did not influence the price 
by either the “circumstances of sale” method or the “ test value” method. 
 Question:  Article 87.2(f) provides “the declared Customs value is not significantly lower or higher than, 
accordingly, the lowest and the highest Custom s value, determined through the transaction price 
method, of similar or identical goods accepted by RA  Customs Authorities within the same or nearly 
the same period of time.”  What provision of the Valuation Agreement is this intended to implement? 
 Response: 
 
Article 87.2(f) is intended to provide clarity, tr ansparency and predictability to the importer in 
the application of the decision of the WTO Valuation Committee regarding cases where customs 
administrations have reasons to doubt the truth or  accuracy of the declared value.  Pursuant to 
Article 87.2(f), values declared by importers will be compared to transaction values accepted by 
Customs for previous imports of identical or simi lar goods.  If the declared values fall within the 
range provided in Article 87.2(f), the declared  values shall be accepted by Customs without 
requirement for further document ation or validation by the importer.  If the declared values G/VAL/W/146 
Page 2  
 
fall outside the range provided in Article 87.2(f), the importer shall be notified and given the 
opportunity to submit additional information pur suant to Article 87.3.  If Customs is still not 
satisfied as to the validity of the declared values, Customs may demand of the importer only 
those documents specified in Article 88.1(c).  
Question: 
 In Article 78(g) Armenia defines parties as bei ng related when “they are legally recognized as 
persons who have interest in the same business…”.  We request clarification that this provision is 
meant to cover the “partners” provision found in  Article 15.4(b) of th e Valuation Agreement. 
Response: 
 This provision is meant to cover the “partn ers” provision found in Article 15.4(b) of the 
Valuation Agreement. The Armenian wording employed in Article 78(g) of the Armenian Customs Code is intended to convey the scope  and intent of the term “legally recognized 
partners in business” as closely as possible in  the context of terms employed in Armenian 
commercial law.  Question:  Under Article 79, Armenia defines “the same or near ly the same period of time to be a ninety-day 
period preceding the time observed”.  We note that Articles 2 and 3 of the Valuation Agreement do 
not contain a definite time frame.  Please explain this language in the Armenian law. 
 Response:  
The intent of the use of the ninety-day time period in this case is to provide a degree of 
predictability and transparency to the importer, a nd also to ensure that seasonal fluctuations in 
price are not employed unreasonably to di sallow a legitimate transaction price. 
 
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