EXACT WORDS OF ARTICLE 1 OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ( OFFICIAL JOURNAL 1980 , L 71 , P . 107 ), AND THE COMMUNITY HAS UNDERTAKEN TO ENSURE THAT ITS REGULATIONS ON CUSTOMS VALUE ARE IN ACCORDANCE WITH THE PROVISIONS OF THAT AGREEMENT . BY AN EXPLANATORY NOTE ISSUED IN MARCH 1982 , THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION , ESTABLISHED UNDER ARTICLE 18 OF THAT AGREEMENT , STATED THAT ARTICLE 1 OF THE AGREEMENT COULD NOT BE APPLIED WHERE ALL THE GOODS DELIVERED WERE DAMAGED BEFORE CUSTOMS CLEARANCE . THE CUSTOMS VALUE MUST THEREFORE BE DETERMINED IN ACCORDANCE WITH THE PROCEDURE SET OUT IN PARAGRAPHS ( 2 ) OR ( 3 ) OF ARTICLE 2 OF COUNCIL REGULATION NO 1224/80 .
10 THE COURT WOULD POINT OUT THAT , UNDER ARTICLE 2 ( 1 ) OF COUNCIL REGULATION NO 1224/80 , THE CUSTOMS VALUE OF IMPORTED GOODS MUST BE DETERMINED UNDER ARTICLE 3 WHENEVER THE CONDITIONS PRESCRIBED IN THAT ARTICLE ARE FULFILLED .
11 ARTICLE 3 ( 1 ) OF COUNCIL REGULATION NO 1224/80 PROVIDES THAT ' THE CUSTOMS VALUE OF IMPORTED GOODS DETERMINED UNDER THIS ARTICLE SHALL BE THE TRANSACTION VALUE , THAT IS , THE PRICE ACTUALLY PAID OR PAYABLE FOR THE GOODS WHEN SOLD FOR EXPORT TO THE CUSTOMS TERRITORY OF THE COMMUNITY , ADJUSTED IN ACCORDANCE WITH ARTICLE 8 . . . ' , PROVIDED THAT THE TRANSACTION DOES NOT FALL WITHIN SUBPARAGRAPHS ( A ) TO ( D ).
12 FIRST OF ALL , IT APEARS FROM THE ORDER OF THE NATIONAL COURT AND FROM THE WORDING OF THE QUESTION SUBMITTED THAT ARTICLE 3 ( 1 ) OF COUNCIL REGULATION NO 1224/80 IS NOT INAPPLICABLE IN THE MAIN PROCEEDINGS ON ANY OF THE FOUR GROUNDS ENUMERATED IN SUBPARAGRAPHS ( A ) TO ( D ).
13 FURTHERMORE , IT APPEARS FROM ANNEX II TO THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GATT THAT THE EXPLANATORY NOTES ISSUED BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION ARE PURELY CONSULTATIVE IN NATURE , AND THE COMMISSION HAS NOT SHOWN THAT ARTICLE 1 OF THAT AGREEMENT HAS BEEN INTERPRETED IN A UNIFORM MANNER IN ACCORDANCE WITH THE EXPLANATORY NOTE OF MARCH 1982 , A NOTE WHICH , MOREOVER , WAS ISSUED SUBSEQUENT TO THE IMPORTATION AT ISSUE IN THE MAIN PROCEEDINGS . THE ARGUMENT PUT FORWARD BY THE COMMISSION TO SHOW THAT ARTICLE 3 ( 1 ) OF COUNCIL REGULATION NO 1224/80 IS INAPPLICABLE , CANNOT , THEREFORE , BE ACCEPTED . IT IS THUS NECESSARY TO DEFINE THE SCOPE OF THAT PROVISION .
14 IT SHOULD BE RECALLED THAT , ACCORDING TO THE SIXTH RECITAL IN THE PREAMBLE , COUNCIL REGULATION NO 1224/80 IS INTENDED TO ESTABLISH A FAIR , UNIFORM AND NEUTRAL SYSTEM OF CUSTOMS VALUATION EXCLUDING THE USE OF ARBITRARY OR FICTITIOUS CUSTOMS VALUES .
15 FURTHERMORE , THE MEANING OF THE TERM ' THE PRICE ACTUALLY PAID OR PAYABLE '