Agriculture and food safety antidumping, subsidies, safeguards development and building trade capacity dispute settlement economic research and trade policy analysis environment government procurement information technology and ecommerce intellectual property market access regional trade agreements services technical barriers to trade the wto trade facilitation and customs valuation trade. This guide to the wto customs valuation agreement is based on the authors experiences of teaching its finer points to customs officials and policymakers around the world. The link between transfer pricing and customs valuation 2018. Trade integration and local compliance at da nang port article pdf available in indian journal of finance 127. The agreement intends to establish fair, uniform and neutral methods or systems of. It replaced the gatt valuation code as a result of the uruguay round multilateral trade negotiations which created the wto in 1994. The customs officer must therefore have a clear understanding of the principles of valuation as contained in valuation schedule to s. Since this agreement is an integral part of the single wto undertaking, all wto members. Article vii of the general agreement on tariffs and trade pdf 36. Transaction value the agreement stipulates that customs valuation shall, except in specified circumstances, be based on. The scope of the handbook covers among others, the overview of wto agreement on customs valuation, transaction value method, adjustments under article 8, other methods of valuation article 2 through 7 of the agreement and customs documentation. The customs valuation agreement of the world trade organization wto sets out a fair, uniform and neutral system for determining the value of imported goods on which customs officials levy duties. The wto agreement on customs valuation methodologies to value goods objectives and structure of this presentation.
Covering the methods of valuation and the provisions on enforcement, implementation and dispute settlement, the authors give practical examples, explain interpretative decisions of national and international customs bodies. Written as a learning tool, it aims to help both new and experienced policymakers, customs officials, importers and exporters gain a deeper understanding of the agreement s function and aims. Customs valuation united states trade representative. Decision regarding cases where customs administrations. This is an updated and revised version of the compendium of customs valuation texts as concerns instruments concluded by the customs code committee and the customs expert group customs valuation section. However, the wto dispute settlement procedures are basically used for determining the consistency of existing government measures with the wto agreements. The link between transfer pricing and customs valuation 2018 country guide is intended as a general guide only. Although the earlier agreement had limited membership, the new wto agreement applies to all members. Customs valuation international trade administration.
Wto ilibrary a handbook on the wto customs valuation. Dec 02, 2010 sheri rosenow is a counsellor for the wto, where she specializes in customs valuation, trade facilitation and other customs related issues. The customs tariff law stipulates rules and methods for customs valuation in accordance with the wto customs valuation agreement the agreement on implementation of article vii of the general agreement on tariffs and trade 1994. Deloittethe link between transfer pricing and customs valuation2017 country guide 5 wto agreement on implementation of article vii of the general agreement on tariffs and trade 1994related party valuation rules excerpt part i. Pdf implementation of the wto agreement on customs valuation. The agreement referred to above has been domesticated under section 122 read together.
With a view to minimizing the costs incurred by traders through the importation, exportation, or transit of a good, each party shall administer its customs procedures in a manner. If the rate of duty is ad valorem, the customs value is essential to determine the duty to be paid on an imported good. For ad valorem duties, the wto agreement on customs valuation provides a procedure to determine the customs value of imported goods. Customs valuation system in japan is based on agreement on implementation of article vii of the general agreement on tariffs and trade 1994 wto valuation agreement which specifies international valuation methods, and is provided by articles 4 through 49 of the customs tariff law. On behalf of the wto, she has trained government officials and members of the trade community in more than seventy countries. Walsh 2 biman chand prasad is professor and head of school of economics, faculty of business and economics, the university of the south pacific usp, fiji, suva. This agreement shall be serviced by the wto secretariat except in regard to those responsibilities specifically assigned to the technical committee, which will be. Valuation methodology jamaica customs agency website. Valuation of goods for customs purposes summary when customs duties are levied on an ad valorem basis e. Pdf implementation of the wto agreement on customs. Implementation of the wto customs valuation agreement. Wto seminar on technical assistance on customs valuation challenge to implement the agreement on customs valuation political will and improvement in customs management. The primary basis for customs value under this agreement is transaction value as defined in.
Article 1 is to be read together with article 8 which provides, inter alia, for adjustments to. Committee on customs valuation and of the committee on customs valuation can be found in the wco compendium on the customs valuation agreement 1. Issues for developing countries by simonetta zarrilli division on international trade in goods and services, and commodities unctad secretariat preface list of abbreviations executive summary i. Wtos technical committee on customs valuation approves case. Customs valuation refers to the appraisal of the value of imported goods in order to assess the amount of customs duties at ad valorem rates. The wto valuation agreement is formally known as the agreement on. Wto rules and major cases chapter antidumping measures. A handbook on the wto customs valuation agreement sheri. The wto is an organization made up of 148 member countries with about 30 countries applying to join. The customs valuation agreement of the world trade organization wto sets out a fair, uniform and neutral system for determining the value of imported. Wto ilibrary a handbook on the wto customs valuation agreement. Customs valuation is a customs procedure applied to determine the customs value of imported goods. Wtos technical committee on customs valuation approves.
On this point, in the two cases of violations of the customs valuation agreement, customs. Moreover, the agreement contains provisions for special and differential treatment of developing countries and for technical assistance. Wto ilibrary trade facilitation and customs valuation. Covering the methods of valuation and the provisions on enforcement, implementation and dispute settlement, the authors give practical examples, explain interpretative decisions of national and international customs. For each agreement, at least one bluebookcompliant treaty citation is provided, along with a link from which you may download a pdf copy of the text of the agreement from the wtos website. The agreement on the implementation of gatt article vii known as the wto agreement on customs valuation or the valuation agreement was negotiated in the tokyo round to ensure that determinations of the customs value for the application of duty rates to imported goods are conducted in a neutral and uniform manner, precluding the use of arbitrary or fictitious customs values. Agreement on implementation of article vii of the general agreement on tariffs and trade 1994 customs valuation agreement in order to implement gatt article vii customs valuation in a more consistent and reliable manner, this agreement specifies rules for the application of the article and. The customs value of imported goods shall be the transaction value, that is the. Wtoomc 1 statistical value and customs valuation contact. Agreement on the implementation of article vii of the gatt 1994, a. It is administered by the world customs organization wco, an intergovernmental organization of 180 customs authorities. Since this agreement is an integral part of the single wto undertaking, all wto members are members of the customs valuation agreement. The agreement provides a customs valuation system that. General agreement on valw29 5 june 1985 tariffs and trade committee on customs valuation information on technical assistance activities at its meeting of 910 may 1985, the committee agreed that it would help ensure the greater transparency in gatt of technical assistance activities pursuant to article 21.
It functions like a club, which national governments apply to join. When the world trade organization was created in 1995, signatories were obliged to accept all gatt instruments, including the wto valuation agreement in recognition of this, special arrangements were introduced for developing country members who might have faced difficulties implementing all of the provisions of the agreement. The wto valuation agreement is formally known as the agreement on implementation of article vii of the general agreement on tariffs and trade gatt 1994. Wto agreement on sanitary and phytosanitary measures. Transaction value the agreement stipulates that customs valuation shall, except in specified circumstances, be based on the actual price of the goods to be valued, which is generally shown on the. Technical information on the agreement for ad valorem duties, the wto agreement on customs valuation provides a procedure to determine the customs value of imported goods. The agreement on customs valuation requires customs to determine. Wto valuation agreement world customs organization.
For gatt 1947, citations are provided to official u. The acronym gatt stands for the general agreement on tariffs and trade. The tokyo round code was replaced by the wto agreement on implementation of article vii of the gatt 1994 following. The agreement on customs valuation world trade organization. Pdf wto customs valuation under the customs valuation agreement cva contained in gatt 1994 is very recent in vietnam and is now. The agreement on implementation of article vii known as the wto agreement on customs valuation or the valuation agreement ensures that determinations of the customs value for the application of duty rates to imported goods are conducted in a neutral and uniform manner, precluding the use of arbitrary or fictitious customs values. Likely impact of implementation of the wto valuation agreement on trade, price and revenue. The eu applies the internationally accepted concept of customs value established by the wto customs valuation agreement agreement on implementation of article vii of the general agreement on tariffs and trade 1994 all wto member countries have an obligation to implement this agreement and apply this methodology. The tccv is a committee of customs authorities created by the wto valuation agreement and tasked with providing interpretation and guidance on the valuation agreement. This study aimed to address the above said impact assessment and to examine the difficulties associated with customs valuation in nepal so as to make recommendation on how to make the wto customs valuation agreement implementable. Prior to adoption of the wto agreement on customs valuation, most countries. The link between transfer pricing and customs valuation. Gattwto customs valuation 1 background 2 the wto agreement 3 method 1 transaction value 4 methods 2 and 3 5 method 4 deductive value 6 method 5 computed value 7 fallback method 8 special and differential treatment 9 institutions. Trade in goods after completing this section, the reader will be able to.
In contrast, an ad valorem duty depends on the value of a. Implementation of the wto customs valuation agreement in. With a view to minimizing the costs incurred by traders through the importation, exportation, or transit of a good, each party shall administer its. Regional practices, customs valuation and other emerging issues.
The agreement was negotiated during the uruguay round of multilateral trade. This system bars the use of arbitrary or fictitious customs values. Article 7 market valuation valuation at customs must be based on market prices, not madeup numbers. In this case, no rules on customs valuation are needed and the valuation agreement does not apply. Objectives and organization of the wto 1 what is the wto. The present compendium has been prepared primarily for member states administrations but. Rules on customs valuation are necessary to ensure that when applying duty rates to imported goods, the customs service of each wto member determines the value of the goods in a neutral and uniform manner, since the value of the good is the basis on which customscalculates the duty ratesthat are applied to imported goods. The parties affirm their rights and obligations under the agreement on trade facilitation, set out in annex 1a to the wto agreement. The primary basis for customs value under this agreement is transaction value as defined in article 1. The wto valuation agreement is incorporated into the. Covering the methods of valuation and the provisions on enforcement, implementation and dispute settlement, the authors give practical examples, explain interpretative. Wto analytical index customs valuation agreement general. All the agreements listed in annex 1a to the marrakesh agreement establishing the world trade organization hereinafter the wto agreement concern particular aspects or sectors of trade in goods. Pdf discussionsthere are no fundamental differences between the 1947 article vii of gatt and the 1994 wto article vii implementing valuation agreement.
Wto rules and major cases 372 of the customs valuation agreement article 19 of the customs valuation agreement. Covering the methods of valuation and the provisions on enforcement, implementation and dispute settlement. Jun 09, 2003 the customs valuation system presently being implemented at the bureau of customs is the transaction value tv system, which is principally based on the wto agreement on customs valuation agreement on implementation of article vii of the gatt customs valuation 1979. Implementation of the wto agreement on customs valuation in vietnam. The 1994 agreement on customs valuation replaced the earlier agreement, which was terminated on 1 january 1996, one year after the wto came into effect. A handbook on the wto customs valuation agreement provides a plainlanguage and comprehensive explanation of the terms of the customs agreement. Development, trade, and the wto a handbook bernard hoekman, aaditya mattoo, and philip english, editors. Established in 1952 as the customs cooperation council. A handbook on the wto customs valuation agreement this guide to the wto customs valuation agreement is based on the authors experiences of teaching its finer points to customs officials and policymakers around the world. The customs valuation system presently being implemented at the bureau of customs is the transaction value tv system, which is principally based on the wto agreement on customs valuation agreement on implementation of article vii of the gattcustoms valuation 1979. The customs officer cannot rely solely on the importer to present correct values. The gatt is a wto agreement that deals exclusively with trade in goods, but it is not the only one.
The main objectives of the agreement are those listed in the preamble. Its application will depend on the particular circumstances involved. The booklet also contains an insert giving the position as regards acceptance and application of the gatt agreement 1994 on customs valuation. Its main function is to ensure that trade between nations flows as smoothly, predictably, and freely as possible.