WORLD TRADE  
ORGANIZATION  G/VAL/W/182 
2 July 2009 
 (09-3278) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
Answers to the request of the European  Communities on the Ukrainian legislation
 
 
 
 The following communication, dated 25 June 200 9, is circulated at the request of the 
delegation of Ukraine.  
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 Answer to Question 1
  
 
The provisions of Article 264 of Customs Code (hereinafter - the Code) comply with the 
provisions of Article 13 of the Agreement on cust oms valuation (Agreement on the Application of 
Article VII of GATT 1994) (hereinafter - Agreement)  and provides an opportunity for the declarant, 
in case of need to clarify the declared customs value of goods, to execute the goods, which are 
declared, in free use under the warranty obligations. 
 
 Answer to Question 2   
 
Article 265 of Customs Code defines the rights and duties of the customs authority during the 
monitoring of the accuracy of determining the cu stoms value of goods, i.e. provides the customs 
authorities the right to implement such control and outlines the limits of such powers.  The Agreement 
contains no provisions on the powers of customs authorities in monitoring the accuracy of determining the customs value of goods and does not establish mechanisms for such control.  
According to available information, the mechanism of  control of the correct determination of customs 
value is determined by the nationa l legislation of Member countries. 
 
Answer to Question 3
 
 
Just as the foreign trade contracts usually stipulate the long-term supply of goods, so the cost 
of operation is understood as cost of shipments im ported with one invoice within the framework of 
corresponding contract.  However, we would like to dr aw attention to the fact that the Agreement uses 
the term "transaction value", so the issue is not clear. 
 Answer to Question 4
 
 
The provisions of Article 1 (2) (b) of the Agreement is fully reflected in Article 267 of the 
Code, namely:   
 “During the sale of goods between related par ties transaction value is taken as the basis for 
determining the customs value of goods estimated  for the first method, if the declarant will 
prove that such price is approximated maximu m to the value of the one of the following G/VAL/W/182 
Page 2  
 
  operations, which was conducted si multaneously with the estimat ed goods or almost at the 
same time:   1) the cost of operations in selling to unrelat ed buyers of identical or similar (analogous) 
goods for export to Ukraine;  
2) the customs value of identical or simi lar (analogous) goods as de fined under Article 271 
of the Code;  
3) the customs value of identical or simi lar (analogous) goods as de fined under Article 272 
of the Code.  
 
In the case of the implementation of Paragra ph 7 of this Article the information about 
differences in business conditions, th e quantitative indicators, elements and costs referred to  
Paragraph 2 of this Article, available at the Customs authorities and submitted by the 
declarant, is properly considered, and the cost s normally incurred by the seller during the sale, 
when seller and buyer are not related to each ot her, and not incurred by the seller during the 
sale, when the seller and buyer are related.” 
 
Answer to Question 5
 
 
Since Ukraine's accession (on 16 May 2008) to the World Trade Organization, Articles 47, 
85, 86, 87 and Chapter 2 “Customs fees” of the sec tion V “Duties and customs fees” of the “Customs 
Code of Ukraine” as of 12.12.91 No. 1970-XII are invalid.  That is, from 16 May 2008, the charging 
of customs duties is not provided by national legislation. 
 
Answer to Question 6  
 
Paragraph 7 of the “Order of declaring the customs value of goods which are transferred 
across the customs border of Ukraine, and on submitti ng information for its verification”, approved by 
the Decree of the Cabinet of Ministers as of 20.12.2006 No. 1766 (hereinafter - the Order of declaring) establishes that the declar ant, to verify the declared cust oms value, has to submit also a 
copy of the license on the import (export) of goods, the imports (exports) of which are subject to licensing, since according to the Law of Ukraine No. 959-XII as of  16.04.91 “On foreign economic 
activity”:  “Customs clearance of goods, the exports  (imports) of which are subject to licensing is 
carried out only with the availability of a license”.  According to the national legislation the cost of 
the product can be indicated in some kinds of the licenses (for example - special licenses). 
 
Answer to Question 7
 
 According to Paragraph 8 of the “Order of d eclaring”:  “for the confirmation of transport 
costs, which according to the Customs Code are in cluded in the price of goods, the declarant must 
submit the contract on the transportation, tr ansport and insurance documents, and:  
 - the invoice from the user of the contract on providing freight forwarding services, 
containing details of the parties, the amount  and terms of payment, other information 
identifying the services to the goods;  or 
 - the bank payment documents which confirm th e fact of payment of freight forwarding 
services in accordance with the invoice;  or 
 
- the certificate (reference) from the enterprise-ca rrier, which has made the transportation, and 
which contains details of the consignmen t note, information about the route of 
transportation, amount of payment for shipping services and the signatures of the director and chief accountant of the company;  or  G/VAL/W/182 
 Page 3 
 
 
  - a calculation of transport costs (if transportation of goods is carried out by using own 
vehicle), which contains details about the rout e of transportation, its length to the place of 
entry into the customs territory of Ukraine and on customs area of Ukraine (in kilometres), 
the size of tariff rates for the transportation of unit of measure (weight) of the product per 1 kilometre of route.”  
 
Taking into consideration that, as a rule, cost for those services is not listed in the contract on 
transportation, the declarant has to provide one of  the documents in which the cost of services is 
indicated. 
 Answer to Question 8
 
 
According to Article 1 (2)(b) of the Agreemen t – “During the sale between related parties 
transaction costs are accepted, and the goods are es timated in accordance wi th the provisions of 
paragraph 1, if the importe r demonstrates that such costs are rath er close to one of the following costs, 
and this happens at the same time or almost at the same time: 
 (i)  the costs of operation during the sale to unrelated buyers of identical or similar goods for 
export to the same country of import;  
(ii)  the customs value of identical or simi lar goods, as determined in  accordance with the 
provisions of Article 5;  
(iii)  the customs value of identical or simi lar goods, as determined in  accordance with the 
provisions of Article 6.”  
 
 Paragraph 9 of the “Order of declaration” sets the documents, which, in case of availability, 
must be submitted by the declarant to confirm that the interconnectivity didn’t affect the price of 
estimated goods.  If such documents are not availabl e, the declarant has the right to submit other 
existing documents which can confirm that these cost s are approximated maximum to the cost of one 
of the following operations, which was conducted simu ltaneously with the estimated goods or almost 
at the same time:  
 1) the cost of operation during the sale to the unrelated buyers of identical or similar 
(analogous) goods for export to Ukraine;  
2) the customs value of identical or sim ilar (similar) goods, as defi ned under Article 271 of 
the Code;  
3) the customs value of identical or sim ilar (similar) goods, as defi ned under Article 272 of 
the Code. 
 
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