WORLD TRADE  
ORGANIZATION  G/VAL/W/174 
29 October 2008 
 
 (08-5245) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
Answers to Questions from the United States Regarding 
 
Thailand’s Legislation1 
 
Communication from Thailand 
 
  The following communication, dated 24 October 2008, is being circulated at the request of 
the delegation of Thailand 
 
_______________ 
 
 
1. Regarding Sufficient Guarantee – Article 13 
 Section 40
2 of the Customs Act B.E. 2469  provides that  importers or exporters shall fully 
comply with the laws before goods can be relea sed from custody of the Customs upon submission of 
the shipment entry and full payment of ta xes and duties or deposits of guarantee.   Section 1123 of the 
Customs Act B.E. 2469  provides that importers shall put additional cash deposit as a guarantee or shall 
use guarantee issued by a bank for the amount of duties when problems regarding the amount of duties 
on goods passing through the Customs arise.   
   
                                                     
 
1 All legal provisions provided in English are unofficial translation. 
2 Section 40   Before the release of any goods from the cu stody of the Customs, the importer shall have 
fully complied with this Act and other laws relating to the Customs, made due submission of the shipment entry, 
and paid the full amount of duty or deposited cash secur ity. The application for depos iting cash security shall be 
in accordance with the re gulations prescribed by the Director-General.  
In the case where there is an app lication and the Director-General co nsiders it necessary for any goods 
to be released from the custody of the Customs urgently, he shall have the power to release such goods from the 
custody of the Customs without prior compliance with the provisions of paragraph one but under the conditions specified by him, and in the case where the goods may be dutiable, cash or other securities to his satisfaction 
shall be required as a guarantee for the payment of duty.  
3 Section 112  In the case where a  competent official considers that there is a question on the amount of 
duty of any goods which are clearing through the Customs, such goods shall be taken to the Customs House or 
placed in any secure place, unless the competent official and the owner of the goods or his agent agree that a 
sample representing the goods shall be taken for determina tion of the question. In order to safeguard the revenue 
of the State, the amount of duty declared in the shipment  entry by the importer or exporter, as the case may be, 
shall be paid and an additional sum of money covering the maximum duty payable on such goods shall be 
deposited as  a security but the Director-General may issue a No tification that a security by the Ministry of 
Finance or a bank shall be accepted in lieu of such add itional deposit, and may prescribe the conditions for such 
performance as considered appropriate. G/VAL/W/174 
Page 2  
 
   Both Sections generally cover all the cases con cerning problems of customs duties, including 
customs value, in accordance with Article 13 of the WTO Customs Valuation Agreement
4.  These two 
Sections are specifically implemented under Implementing Regulation Code B.E. 2544, 
Article 2 01 07 01.  2. Implementation of Article 14 of the WTO Customs Valuation Agreement 
 Article 6 of Ministerial Regulation No. 146 (B.E. 2550)
5 provides that Annex 1 Interpretative 
Notes and Annex 3 of the Customs Valuation Agre ement shall apply in consideration of customs 
value determination, which covers  all the provisions referred by the United States.  Accordingly, 
customs value determination is transparent and c onsistent with the Customs Valuation Agreement. 
 
3. Decision 3.1 of the Customs Valuation Committee – Treatment of Interest Charges 
 The General Custom Order No. 48/2547  on Interest Charges is attached. 
 
4. Decision 4.1 of the Customs Valuation Committee – Treatment of Carrier Media 
Bearing Software for Data Processing Equipment 
 Paragraph 2 of Decision 4.1 provides that “I n determining the Customs value of imported 
carrier media bearing data or instructions, only the co st or value of the carrier medium itself shall be 
taken into account.  The Customs value shall not, ther efore, include the cost or value of the data or 
instructions, provided that this is distinguished fro m the cost of the value of  the carrier medium…”  
and WTO Members adopting such practice shall notif y the Customs Valuation Committee of the date 
of its application. 
  Since Thailand has not yet adopted the practice under Decision 4.1, its determination of customs value of carrier media bearing software  for data processing equipment applies the same 
procedure of customs valuation as that used for other imported goods, which is  consistent with the 
Customs Valuation Agreement.  Thailand has not yet considered adopting the practice set out in 
paragraph 2 of Decision 4.1 for its customs valuation system.  
_______________ 
 
 Additional Questions:  
(a)  When Thailand has concerns about the accuracy  of the declared transaction, what type of 
information can the importer provide to address these concerns? 
 
                                                     
 
4 Article 13 of Customs Valuation Agreement    If, in the course of determining the customs value of 
imported goods, it becomes necessary to delay the final determination of such  customs value, the importer of the 
goods shall nevertheless be able to withdraw them from  customs if, where so required, the importer provides 
sufficient guarantee in the form of a surety, a deposit or some other appropriate instrument, covering the ultimate payment of customs duties for which the goods may be liable.  The legislation of each Member shall 
make provisions for such circumstances. 
5 Article 2 of Ministerial Regulation No. 146 (B.E. 2550) repeals Article 6 of Ministerial Regulation 
No. 132 (B.E. 2543), issued pursuant to the Customs Ac t B.E. 2469 regarding rules, procedures, and conditions 
of the application and determination of customs value an d replace with the followings:  “Article 6:  Annex 1: 
Interpretative Notes and Annex 3 of the Agreement on Im plementation of Article VII of the General Agreement 
on Tariffs and Trade 1994 shall apply in consideration of customs valuation determination under this Ministerial 
Regulation.”  G/VAL/W/174 
 Page 3 
 
 
   Answer :  The information the importer has to provide  in order to clarify such concerns are 
documents used in transactions such as invoi ce, buying and selling contracts, receipts, 
arrangements between the seller and the buyer, or any other inform ation relating to facts or the 
declared value. 
 
(b)  If the importer can show that the declared va lue represents the price actually paid or payable 
for the imported merchandise plus the relevant  additions, will Thailand accept the declared 
value even if it is lower than its deductive value database price? 
  Answer
:  Thailand will accept the declared value if it is the transaction value, that is the price 
actually paid or payable for the imported goods, in accordance with Article 1 of the Customs 
Valuation Agreement. 
  Thailand would like to seek clarification from th e US on the meaning of the phrase “…if it is 
lower than its deductive value database price?”   
 
(c)  There are numerous cases in which importe rs have appealed Thailand’s application of 
deductive value to importations of alcoholic  beverages.  When does Thailand expect 
resolution of these appeals?    
  Answer
:  Currently, most cases have been resolv ed, and only some cases are not concluded 
due to lack of certain information from the impor ter.  The Secretary of the Customs Board of 
Appeal has notified the appellants and they un derstand the situation.  At the moment, the 
Board is awaiting additional documents from th e appellants.  When such documents are 
complete, they will be submitted to the Board of Appeal to make a determination within 
90 days. G/VAL/W/174 
Page 4  
 
  [UNOFFICIAL TRANSLATION]  
General Customs Order 
No. 48/2547 
Subject: Supplement to Customs Implementing Regulation Code B.E. 2544  
Part 2, Category 1, Chapter 4, Article 26 on Interest Charges 
 
 In order to make customs value determin ation consistent with the Agreement on 
Implementation of Article VII of the general Agre ement on Tariffs and Trade 1994 and to implement 
the Agreement into practice:  
 Given the power of Section 3 of Customs Act B.E. 2469 and Article 7 of Ministerial 
Regulation No. 132 (B.E. 2543), it so orders to s upplement Customs Implementing Regulation Code 
B.E. 2547 as follows:  “2 01 04 26 INTEREST CHARGES 
 
 The practice of Interest Charges in customs va lue determination of impor ted goods shall be as 
follows:   Charges for interest under a financing arrangeme nt entered into by the buyer and relating to 
the purchase of imported goods shall not be regarded  as part of the Customs value provided that: 
(1) the charges are distinguished from the pri ce actually paid or payable for the goods; 
(2) the financing arrangement was made in writing; 
(3) where required, the buyer can demonstrate that: 
‐ such goods are actually sold at the price decl ared as the price actually paid or payable, 
and 
‐ the claimed rate of interest does not exceed   the level for such transactions prevailing 
in the country where, and at the time when the finance was provided 
  This Practice shall apply regardless of whether the finance is provided by the seller, a bank or 
another natural or legal person.  It shall also apply, if appropriate, wh ere goods are valued under a 
method of the GATT 1994 other than the transaction value   This General Customs Order shall apply hencef orth and with the matters currently under the 
consideration. 
 
     
       Dated 8 September B.E. 2547   
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