Brief Guide To The Customs Valuation Agreement

Posted by on Sep 13, 2021 in Uncategorized | No Comments

The Customs Valuation Committee of the Council for Trade in Goods (CGT) is conducting work within the WTO on customs valuation as part of a series of measures to facilitate trade. The current presidency is. The Agreement allows the legislation of importing countries to include the customs value or to exclude it from the customs value: under the Agreement, the customs authorities may add to the transaction value of goods only the following – other additions are not permitted: for cases where it is impossible to determine the transaction value of the imported goods, the agreement provides for other methods of evaluation. The first alternative is to determine the customs value on the basis of the transaction value of identical products sold for export to the same country. Where the goods are not identical, the customs authorities shall use the transaction value of similar goods sold for export to the same country. If identical or similar goods are not sold for export to the same country, the value of identical or similar goods may be used when selling in the country of importation. A calculated value can also be used; The agreement describes how to calculate this value. In the event of failure, the customs authorities shall use “appropriate means in accordance with the principles and general provisions of this Agreement” to determine the value of the imported goods. The Agreement established a Customs Valuation Committee, composed of representatives of each WTO member country. This committee meets at least once a year and allows members to consult on matters relating to the management of the customs valuation system.

The Agreement also established a Technical Committee on Customs Valuation under the auspices of the World Customs Organisation, an international organisation based in Brussels, whose objective is to promote international cooperation in customs matters. The Technical Committee, which meets at least twice a year, shall examine the specific technical problems posed by the day-to-day management of the Agreement; provide appropriate advice and solutions to these problems; study Member States` laws, procedures and evaluation practices; and provide information and advice on any customs valuation issues that may be requested by Member States. The book discusses valuation methods as well as provisions for the application, implementation and settlement of disputes. The book uses practical examples, interpretative decisions taken by national and international customs authorities as well as the history of the negotiations of the agreement in order to give readers a better understanding of the underlying purposes of the text. The agreement identifies certain situations in which the transaction value of imported goods is not acceptable for customs purposes. These occur: when there are restrictions (with a few exceptions) on the disposal or use of the goods by the buyer; where the sale or price of the goods is subject to a condition or consideration for which no value can be determined; where part of the proceeds from the buyer`s subsequent use of the goods is destined for the seller; or, with a few exceptions, when the buyer and seller are “related” (for example. B are business partners, employers, employees, senior managers or directors in the company of the other. .