WRITTEN QUESTION E-3692/01 by Konrad Schwaiger (PPE-DE) to the Commission. WTO — customs valuation and developing countries.
Date: 2002-01-17
Institutions: European Parliament, Provisional data
Subjects: World Trade Organisation, customs profession, customs valuation, developing countries, international agreement, tariff policy, technical cooperation, vocational training

C 160 E/162

Official Journal of the European Communities

EN

4.7.2002

(2002/C 160 E/203)

WRITTEN QUESTION E-3692/01

by Konrad Schwaiger (PPE-DE) to the Commission

Subject: WTO (cid:14) customs valuation and developing countries

(17 January 2002)

The member countries of the World Trade Organisation (WTO) adopted a decision in Doha on issues and
concerns linked to the implementation of certain WTO agreements, in response to difficulties encountered
by the developing countries.

Because of insufficient human, technical and financial resources, the application of the Customs Valuation
Agreement creates problems for many developing countries. In practice the customs officers in many of
these countries are unable to combat the chronic undervaluation of goods and fraud. This situation places
a heavy burden on the budget of such countries, since it means loss of revenue for the tax authorities.

A number of African countries would like another five-year exemption in order to maintain the reference
values on a limited number of products and hence safeguard their customs revenue. In paragraph 8.2. of
the Doha Decision the Ministerial Conference ‘urges the Council for Trade in Goods to give positive
consideration to requests that may be made by least-developed country Members …’.

the importance of customs revenue for the development of

In view of
the
Commission give a favourable response to applications for exemption from the application of the Customs
Valuation Agreement submitted by the developing countries?

these countries, will

If so, is it ready to envisage a reasonable timetable to allow these countries to implement a training
programme for their customs officers within the exemption period?

What forms of technical assistance will be mobilised by the Commission to help these countries to apply
fully and efficiently the Customs Valuation Agreement?

Answer given by Mr Lamy on behalf of the Commission

(18 February 2002)

The World Trade Organisation’s Customs Valuation Agreement came into being at the Tokyo Round in
1979. It was extended to all WTO members by the Marrakesh Agreement of April 1994, which closed the
Uruguay Round. It lays down objective, fair, safe, stable and transparent rules for determining the customs
value of imported goods for the purpose of calculating customs duties. The main rule is that the customs
value of goods should reflect the commercial value of the transaction as closely as possible, and the WTO
Agreement includes a number of calculation methods to that end. The aim is to establish an objective basis
for calculation which avoids both fraud and undervaluation by importers and any tendency on the part of
customs administrations to overvalue goods or calculate their value in an arbitrary manner.
In no
circumstances may customs valuation be used to gain extra protection for the domestic market, to cancel
out tariff commitments or to inflate budget revenue artificially.

That said, the WTO Customs Valuation Agreement does take specific account of the developing countries,
which can have difficulty applying the rules and associated procedures correctly. Special provision has
been made so that they can ready themselves to apply the Agreement.

The WTO allows any developing country citing difficulties in implementing the Agreement a grace period
of five years from first joining. An additional period may be granted, on a case-by-case basis, to any
country that really needs it. Furthermore, developing countries that are able to implement the Agreement
as a whole (legislation, rules, procedures) but need interim measures for its application to certain products
or sectors may request authorisation to apply minimum values for a limited period. Such general or
specific reservations are subject to the consent of the WTO’s other members and to the submission and
monitoring of work programmes showing how the countries in question use the additional periods to
ready themselves for applying the Agreement.

4.7.2002

EN

Official Journal of the European Communities

C 160 E/163

The need for the developed countries and regional and international organisations (WTO, World Customs
Organisation (WCO), United Nationals Conference on Trade and Development (UNCTAD), World Bank,
etc.) to provide the developing countries with technical assistance to build their capacity to apply the
Agreement has long been recognised. The Member States and the Commission have now been
contributing to technical assistance programmes for the developing countries for over twenty years.
Schemes cover a wide range of areas, such as drafting legislation and rules, the introduction of appropriate
procedures, the organisation of customs administrations or training for customs officials. Prompted by the
EU, the WTO Customs Valuation Committee last year adopted a work programme stepping up the
activities of all donors and providers of technical assistance in this field.

The Commission, in association with the Member States, will continue to give careful consideration to
requests for the extension of transition periods or reservations permitting the use of minimum values. At
the same time, however, it will insist that real efforts are made, that commitments given in the applicant
countries’ work programmes are honoured and that such derogations are limited in time. As the decision
of the Doha ministerial conference suggests, particular consideration will be given to the specific problems
of the least developed countries.

(2002/C 160 E/204)

WRITTEN QUESTION P-3697/01

by Jean-Maurice Dehousse (PSE) to the Commission

(9 January 2002)

Subject: Accounting technical committee provided for in the proposal for a Regulation on the application

of international accounting standards

The proposal for a Regulation on the application of international accounting standards (1), which is
currently under discussion, is aimed at ensuring that European companies listed on regulated markets
establish their accounts in accordance with international accounting standards by 2005. Recital 8 of the
proposal stipulates that ‘an accounting technical committee will provide support and expertise to the
Commission in the assessment of international accounting standards’. It would appear that the Commission
has already given private economic operators responsibility for setting up and managing this committee.
The membership fees established by this European Financial Reporting Advisory Group (EFRAG) are such
that they are deterring organisations representing some economic sectors from applying for EFRAG
membership.

How does the Commission view the introduction of such discrimination on a financial basis?

Will the Commission take action to ensure that admission conditions are no longer discriminatory?

What guarantees can the Commission provide concerning the transparency of EFRAG’s work?

(1) OJ C 154 E, 29.5.2001, p. 285.

Answer given by Mr Bolkestein On behalf of the Commission

(1 February 2002)

The European Financial Reporting Advisory Group (EFRAG) is a private, independent organisation, set up
in April 2001 on the initiative of the European federations representing the main parties concerned with
financial reporting in the Union, in response to the invitation by the Commission in its Communication
on the Financial Reporting Strategy (1).