WORLD TRADE  
ORGANIZATION  G/VAL/W/160 
11 June 2007 
 
 (07-2439) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
Questions from the United States and the Eu ropean Communities regarding Thailand's 
 
customs valuation of alcoholic beverages imports  
 
  The following communication, dated 7 June 2007, has been received from the delegations of 
the European Communities and the United States.   
 
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 Based on information provided by the United States and the European Communities alcoholic 
beverages industries about the customs valuation me thodology used by Thai Customs for imports of 
alcoholic beverages, specifically the use of the de ductive value methodology as it has been applied by 
Thai Customs since August 2006, the United States and European Communities have developed a list 
of questions for consideration and response by Th ailand. We believe that Thailand’s responses to 
these questions could help us bette r understand this matter and determ ine whether any additional steps 
will be needed to address this i ssue.  These questions have already been presented to a number of 
in-country officials.    
1. What was the policy objective behind Tha iland’s decision to issue Customs Notification 
No. 23/2549 (2006)?  2. What was the policy or reason for Thailand to  issue new guidelines for the determination of 
customs value for beer, wine, and spirits in Augus t, September, and October 2006 (Kor. 0519/1918 of 
23 August 2006, Kor. 0519/226 of September 27, 2 006 and Kor. 0519/2386.1 of 6 October 2006)? 
 3. Does Thai Customs communicate to the impor ter the grounds for considering that the 
relationship between the buyer and seller of im ported alcoholic beverages has influenced the 
transaction price?  Does Thai Customs give importers a chance to respond?   
4. Are importers given the chance to show Thai  Customs that the transaction value listed on the 
invoice should be accepted because it approximates:  (1)  the transaction value of the sale of  similar goods to unrelated parties,  
(2)  the deductive value of the sale of si milar goods to unrelated parties, or  
(3)  the computed value of the sale of  similar goods to unrelated parties. 
 5. Before Thai Customs applies the deductive valuation methodology to importations of alcoholic beverages, does it first apply and follow the hierarchy of valuation methodologies set out in 
Articles 1-7 of the Customs Valuation Agreement?  If not, please describe Thai Customs’ basis for 
deviating from the established CVA valuation hierarchy. 
 G/VAL/W/160 
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  6. For what percent of imports of alcoholic  beverages do Thai Customs use the deductive 
method to determine customs valuation?    7. Are importers given the reason for the rejection or suspicion of their declared value in writing 
when they request a written justification from Thai  Customs?  (Customs Notification No. 23/2549 
(2006), Section 7, Art. 19). 
 8. For what percent of imports of alcoholic  beverages are importers required to place a 
guarantee for the release of their goods pending a customs valuation determination?  (Customs 
Notification No. 23/2549 (2006), Section 3, Art. 9). 
 
9. Are importers given an opportunity to suppl y Thai Customs with their own figures on profit 
and general expenses?    10. How many appeals have been made of the customs valuation for alcoholic beverages since 
August 2006?   Have any appeals made since August been conclude d?  If not, when do you expect 
these appeals to be concluded?  How often do importers succeed in appealing the valuation 
determination of Thai Customs?  Is the importe r reimbursed the full amount of the guarantee if a 
guarantee was provided ?  11. Are companies required to convert their ba nk guarantees to cash as part of the appeals 
process?  If so, please explain why. 
 12. In the case of unsuccessful a ppeals, does Thai Customs provide a written notice of the reasons 
for not applying transaction value?  
13. Kor. 0519/1918 of 23 August 2006 illustrates the deductive price calculation used as a guide 
for determining the customs value of liquor and beer.  Is this calculation done for every importation of 
liquor and beer?  What does it mean when the regul ation says the calculation should be used as a 
“guide?”  Under what circumstances is it being used  as a guide?  Under what circumstances is it being 
used to determine the actual customs value?  
14. Kor. 0519/1918 of 23 August 2006 indicates that  the wholesale price is used in the deductive 
calculation for the customs value of liquor and beer.  Is the wholesale price the same as the unit price 
of goods sold at the first commercial level after im portation?  Is the “wholesale price for the highest 
sales volume” used as stated in Kor. 0519/1918 of 23 August 2006 or is the “ highest  wholesale price 
for the highest sales volume” used as stated in Kor. 0519/226 of 27 September 2006. 
 
15. Is the VAT a part of the deductive value once the calculations have been made according to 
Kor. 0519/1918 of 23 August 2006?  16. Kor. 0519/226 of 27 September 2006 and Kor. 0519/2386.1 of 6 October 2006, set out profit 
and general expenses rates that are to be used as crite ria to test customs value.  What does it mean that 
the rates will be used as “criteria” to test customs va lue?  At what step of the valuation process are the 
rates used?  Are they only used to calculate the price base for putting down a guarantee for the release 
of goods pending a customs valuation determination? 
 17. Are the profit and general expenses rates set  out in Kor. 0519/226 of 27 September 2006 and 
Kor. 0519/2386.1 of 6 October 2006 determined by ca lculating the average of financial statements for 
the last 3 years of the companies in the industry, as explained in Kor. 0519/1918 of 23 August 2006 under Remark #3?  Are these averages based on domestic  companies or foreign importers?  For what 
purpose are the financial statements normally used?   G/VAL/W/160 
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  18. Under what circumstances are the rates of profit and general expenses as set out in Kor. 
0519/2386.1 of 6 October 2006 used by Thai Customs to  calculate the actual customs value of imports 
of alcoholic beverages?  Does Thai Customs accep t an importer’s figures for the “commissions” and 
“profit and general expenses” used to calculate th e deductive value?  How does Thai Customs identify 
“imported goods of the same class or kind” in or der to determine the value of the commissions and 
profit and general expens es to be deducted? 
 19. Is the FSD database cited in Kor. 0519/19 18 of 23 August 2006 bein g used to evaluate 
customs valuation on alcoholic beverages?  How is the FSD data collected and/or verified?  
 
20. Can Thai Customs provide examples of cases where it finds suspicion with the correctness 
and originality of details or documents used in d eclaring customs values as stipulated in Section 1, 
Article 5 of Customs Notification No. 23/2549 (2006)?  21. Is there a Thai law or regulation that requir es importers of any product to enter into a sole 
distribution agreement with the foreign manufacturer? 
 
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