CELEX: 51979PC0582
Language: en
Date: 1979-10-25
Title: GATT-MULTILATERAL TRADE NEGOTIATIONS (Communication from the Commission to the Council)# SUPPLEMENT TO THE FINAL REPORT ON THE GATT MULTILATERAL TRADE NEGOTIATIONS IN GENEVA (TOKYO ROUND) AND PROPOSAL FOR A COUNCIL DECISION (doc. COM(79) 514 final) #CUSTOMS VALUATION (Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 582
Vol. 1979/0201
 ---pagebreak--- Disclaimer
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                COM(79 ) 582 final
                                                Brussels - 25th October 1979
                                                             >K
                     GATT - MULTILATERAL TRADE NEGOTIATIONS
             ( Communication from the Commission to the Council );
                                                V  •
                                                  V - •. ,
          SUPPLEMENT TO THE FINAL REPORT ON THE GATT MULTILATERAL
                  TRADE NEGOTIATIONS IN GENEVA ( TOKYO ROUND )
                      AND PROPOSAL FOR     A COUNCIL DECISION
                            ( doc . COM(79 ) 514 final )
                                CUSTOMS VALUATION
                  ( Agreement on Implementation of Article VII
                of the General Agreement on Tariffs and Trade )
C0MC79 ) 582 final
 ---pagebreak---  Introduct ion
 1 . In its report on the negotiations on Customs Valuation in the GATT MTN
      ( doc . C0M(79)514 Final, Part II page 27), the Commission reported on
     the existence of two versions of the Valuation Agreement and invited
     the Council to conclude the agreement contained in GATT document
     MTN/NTM/ W/ 229 Rev. 1 , as modified by document MTN/ NTM/ W/ 252, subject
     to the outcome of discussions on the alternative version .
2 . Further discussions were held in Geneva during the week of 1 October
     1979 between representatives of a considerable number of developed and
     developing countries . These discussions resulted in an "ad referendum"
     agreement on the text of the Protocol which is annexed to this communi­
     cation .- It was agreed that this Protocol would be annexed to the Valua­
     tion Agreement ( doc . MTN/ NTM/ W/ 229 Rev. 1 ) if none of the countries
     participating in the discussions raised objections by 19th October .
     No such objections have been raised .      The GATT Secretariat therefore
     intends to open the Valuation Agreement and the Protocol for signature
     on 1 November 1979 .    It was further agreed that , in these circumstances ,
     the alternative version of a valuation agreement sponsored by a number
     of developing countries would not be opened for signature .
Conclusion of the Valuation Agreement
3 . The Commission considers the outcome of the further discussions satis­
     factory and considers that the Community " should accept the Protocol ,
     provided that firm assurances are received from a sufficient number of
     developing countries that they will sign the Valuation Agreement before
     it comes into force on 1 January 1981 . It is not proposed to specify
     " key " developing countries at this stage, but the sufficiency of commit­
     ments from developing countries to sign the Agreement can be examined
     before the Community is finally committed to acceptance of the Protocol .
4 . The Valuation Agreement and the Protocol will both have to be signed for
     the Protocol to come into effect .      It will therefore be possible for the
     Community to accept the Valuation Agreement itself and to defer accep­
     tance of the Protocol until 1t is satisfied that Its conditions have
     been met .
 ---pagebreak---                                     - 2 -
    It is understood that the United States of America will only be prepared
    to accept the Protocol under similar conditions to those specified in
    paragraph 3 above . Since acceptance of the Protocol by the US implies
   an amendment of the legislation which has already been adopted to imple­
   ment the Valuation Agreement / the US will not be able formally to accept
   the Protocol until the necessary legislative changes have been made .
    It is envisaged , therefore , provided the conditions are fulfilled , that
    the Protocol would in practice be accepted on behalf of the Community
   and the US at the same time , probably in mid-1980 .
Conc lusion
The Commission recommends the Council in the light of the results of the
further discussions with developing countries , to approve the Valuation
Agreement and its annexed Protocol on the understanding that the Protocol
will not be formally accepted on behalf of the Community until firm assu­
rances are received from a sufficient number of developing countries that
they will sign the Valuation Agreement before it comes into force on 1 Ja - .
nuary 1981 .  To this end the Commission proposes the following amendment to
its draft decision contained in Annexe I to Part II of its report.
In the list of Agreements in the Preamble and in Article 1 there should be
added to the words " Agreement    on Implementation of Article VII of the
General Agreement on Tariffs and Trade" the following "and the Protocol
annexed thereto ".
 ---pagebreak--- Multilateral Trade Negotiations                                              Add.1
Grouo "Norr-Tari f f Measures "
Sub-Group  Customs Matters "                            October 1979
                                Customs Valuation
                     Agreement on Implementation of Article VII
                  of the General Agreement on Tariffs and T rade -
                                      Addendum
        This document is circulated at the request of a number of delegations
        Consultations have recently been held between delegations from
developed countries and developing countries in order to arrive at a single
text of an Agreement on Implementation of Article VII of ; the General Agree­
ment on Tariffs and Trade .     As a result of these consultations , the attached
Protocol has been drawn up .     It is the intention of these delegations to
seek the approval of their respective authorities to sign this Protocol so
as to ensure that the Agreement Is applied together with the Protocol .
 ---pagebreak---       Protocol to the Agreement on Implementation of Article VII of the
                     General Agreement on Tariffs and Trade
        The Parties to the Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade ( hereinafter referred to as " the
Agreement ")/
        Having regard to the Multilateral Trade Negotiations and to the
desire expressed by the Trade Negotiations Committee at its meeting of 11
and 12 April 1979 to arrive at a single text of an Agreement on Implementa­
tion of Article VII of the General Agreement on Tariffs and Trade ;
    .   Recognizing that developing countries may have particular problems
in applying the Agreement ;
        Considering that the provisions of Article 27 of the Agreement
relating to amendments have not yet entered into force;
        Hereby :
 ---pagebreak---                             - 2 -
1.        Agree to the deletion of the provision of Article 1.2(b ) ( iv )
of the Agreement.;
2.        Recognize that the five-year delay in the application of
the provisions of the Agreement by developing countries provided
for in Article 21.1 may , in practice , be insufficient for certain
developing countries .    In such cases a developing country Party
to the Agreement may request before the end of the period referred
to in Article 21.1 an extension of such period, it being under­
stood that the Parties to the Agreement will give sympathetic
consideration to such a request in cases where the developing
country in question can show good cause ;
3.      . Recognize that developing countries which currently value
goods on the basis of officially established minimum values may
wish to make a reservation to enable them to retain such values
on a limited and transitional basis under such terms and condi­
tions as may be agreed to by the Parties to the Agreement ;
4.        Recognize that developing countries which consider that
the reversal of the sequential order at the request of the importer
provided for in Article 4 of the Agreement may give rise to real
difficulties for them may wish to make a reservation to Article 4
 in the following terms :                           *
          "The Government of               reserves the right to
           provide that the relevant provision of Article 4 of the
           Agreement shall apply only when the customs authorities
           agree to the request to reverse the order of Articles 5
           and 6 ."
If developing countries make such a reservation, the Parties to
the Agreement shall consent to it finder Article 23 of the Agreement ;
                                                            /.
 ---pagebreak---                              - 3 -
5.        Recognize that developing countries may wish'to make a
reservation with respect      to Article 5.2 of the Agreement in the
following terms :
          "The Government of              reserves the right to provide
           that Article 5.2 of the Agreement shall be applied in
           accordance with the provisions of the relevant note there­
           to whether or not the importer so requests ."
If developing countries make such a reservation , the Parties to
the Agreement shall consent to it under Article 23 of the Agreement;
6.        Recognize that certain developing countries have expressed
concern that there may be problems in the implementation of Arti­
cle 1 of the Agreement insofar as it relates to importations into
their countries by sole agents , sole distributors and sole con­
cessionaires .     The Parties to the Agreement agree that , if such
problems arise in practice in developing countries applying the
Agreement , a study of this question shall be made , at the request
of such countries , with a view to finding appropriate solutions ;
                 /
7.        Agree that Article 17 recognizes that in applying the
Agreement , customs administrations may need to make enquiries
concerning the truth or accuracy of any statement , document or
declaration presented to them for customs valuation purposes .
They further agree that the Article thus acknowledges that enqui-
ries may be made which are , for example , aimed at verifying that
the elements of value declared or presented to customs in connec­
tion with a determination of customs value are complete and
correct .   They recognize that Parties to the Agreement , subject
to their national laws and procedures , have the right to expect *
the full cooperation of importers in these enquiries ;
* The words " have the right to expect     shall be translated
   " ils ont le droit de compter sur " and "tienen el derecho de
   contar con " respectively .
                                                          • • •/ • • •
 ---pagebreak---                                _ L _
     8.      Agree that the price actually paid or payable includes
     all payments actually Made or to be made as a condition of sale
     of the imported goods, by the buyer to the seller , or by the
     buyer to a third party to satisfy an obligation of the seller .
                                                                    Λ
II . 1.      Upon the entry , into force of the Agreement the provisions
                -         -                    ~                     ^
     of this Protocol shall be deemed to be part of the Agreement .
     2.      This Protocol shall be deposited with the Director-General
     to the CONTRACTING PARTIES to the GATT . It is open for acceptance ,
     by signature or otherwise , by signatories of the Agreement on
     Implementation of Article VII of the General Agreement on Tariffs
     and Trade and by other governments accepting or acceding to the
     Agreement pursuant to the provisions of Article 22thereof .
             Done at Geneva this first day of November 1979 in a single
     copy         the English , French and Spanish languages , each text
     being authentic .