. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/VAL/W/90
15 October 2001
(01-5024)
Committee on Customs Valuation Original:  English
COMMUNICATION FROM SRI LANKA CONCERNING PARAGRAPH 1 OF
ANNEX III OF THE AGREEMENT ON IMPLEMENTATION
OF ARTICLE VII OF THE GENERAL AGREEMENT
ON TARIFFS AND TRADE 1994
The following communication, dated 12 October 2001, has been received from the Permanent
Mission of Sri Lanka.
_______________
The Government of Sri Lanka wishes to refer to the decision of 29 November 2000, contained
in the document G/VAL/41, whereby an extension was granted under the provisions of paragraph 1 of
Annex III of the Agreement on Implementation of Article VII of GATT 1994 ("WTO Customs
Valuation Agreement") to extend its delay in the a pplication of provisions of that Agreement until
31 October 2001.
The Government of Sri Lanka wishes to inform the Committee on Customs Valuation that
concerted efforts have been made by Sri Lanka to implement the Work Programme and progress has
been made implementing the Work Programme.
Although the Government of Sri Lanka was hopeful of being able to present the enabling
legislation amending the Customs Ordinance, towards second quarter of the year 2001, following
further inter-ministerial consultations and suggestions made by the Trade Chambers necessitatedfurther amendments to the legislation which delayed the approval process.  However, having made the
necessary amendments incorporating such suggestio ns, it was the expectation of the Government of
Sri Lanka, that the Bill could be presented in Parliament in the month of June 2001. However, the
Parliament was prorogued on 11 July 2001, a nd was summoned only on 6 September 2001.  Hence,
the Bill could not be presented as expected in July 2001.  Furthermore, after convening the Parliamenton 6 September, urgent constitutional amendments which were of utmost priority to the country for
the establishment of a constitutional council took precedence over other pending legislation and the
Parliament was adjourned till mid October 2001.
However, H.E. the President of the Government of Sri Lanka dissolved the Parliament on
11 October 2001, with elections scheduled for 5 December 2001.  The new Parliament will be
convened in the first week of January 2003.  Therefore, due to this extraordinary situation, in the
political sphere, Sri Lanka will not be able to present the Bill before 31 October 2001, and our
considered view is that the Bill could be pres ented somewhere in February/March 2003.  Furthermore,
it has to be included in the Order Paper of the ne w Parliament before which the Enabling Legislation
should also be approved by the new Cabinet.  Ther efore, Sri Lanka would need at least six months of
extension from 31 October 2001 for the enabling legislation to be presented in Parliament and
thereafter, to prepare the required administrative regulations and procedures under the enabling
legislation.
Hence, considering the exceptional circumstances, which are legitimate and justifiable and
taking into account that the Government of Sri Lanka has taken meaningful steps and commencedG/VAL/W/90
Page 2
implementing the Work Programme and noting the long standing commitment and considerable
efforts made in the implementation and application on WTO Agreement on Customs Valuation, the
Government of Sri Lanka requests that it be allowed to delay the application of the provisions of the
WTO Agreement on Customs Valuation for a further period of six months commencing
1 November 2001.
The request by Sri Lanka for an extension for the delayed application will not prejudice the
rights and obligations of Sri Lanka under the WTO Agreements in particular, the rights and
obligations under the WTO Agreement on Customs Valuation.  The Government of Sri Lanka also
takes this opportunity to reassure her trading partne rs its firm commitment to the multilateral trading
system and to faithfully implementing Article VII of the General Agreement on Tariffs and Trade
(GATT) 1994.
__________