Art Use Agreement by sfo41516

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									      WTO
Customs Valuation
   Agreement
     Why an Agreement on
      customs valuation?
 customs   valuation and ad valorem customs
  duties
 Article VII of GATT 1947
 The Tokyo Round Code
 The WTO Agreement on Implementation of
  Article VII of GATT 1994 (Customs
  Valuation Agreement)
What does the Agreement do?
 Provides uniformity and certainty
 Transparency and consistency
 Neutral system for valuation of goods
 Basis should be the transaction value
   Customs valuation methods
 Primary  basis for customs value is
  “transaction value” of the goods sold
 If customs value cannot be determined on
  the basis of transaction value of the goods,
  alternative methods are provided:
   --transaction value of identical goods
   --transaction value of similar goods
   --deductive value
   --computed value
   --”fall-back” method
       Transaction value


Price actually paid or payable for the
goods when sold for export to the country of
importation adjusted in accordance with the
provisions of Article 8 of the Agreement
      Transaction value--details
   Price actually paid or payable = total payment made or
    to be made by the buyer to or for the benefit of the seller
    for the imported goods. Includes all payments 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
   Adjustments to the price actually paid or payable (in cases
    where specific elements considered to form part of the
    value for customs purposes are incurred by the buyer but
    are not included in the price actually paid or payable for
    the goods)
   Inclusion of certain considerations passing from buyer to
    seller in the form of goods or services rather than money
Transaction value--conditions
1 - no restriction on the disposition or use
  of the goods by the buyer, other than
   --imposed or required by law or public authorities in the
  country of importation
  --limiting the geographical area in which the goods may be
  resold do not substantially affect the value of the goods
2 - no part of the proceeds will accrue to
  the seller, unless adjustment is made
Transaction value--conditions (2)
3 - sale or price not subject to some
  condition or consideration for which a
  value cannot be determined for the goods
  being valued
4 - buyer and seller not related or if related,
  transaction value acceptable for customs
   --if relationship did not affect the price, or
   --when importer demonstrates that the value closely
  approximates a “test value”
 Transaction value of identical
       or similar goods
 Iftransaction value of goods sold cannot be
  used for valuation,
   1. Transaction value of identical goods
   2. Transaction value of similar goods
 Conditions   for use:
 --the goods must be sold to the same country of
  importation as the goods being valued
 --the goods must be exported at or about the same
  times as the goods being valued
       Deductive and computed
                value
 Iftransaction value for the goods, or for
  identical or similar goods cannot be used,
       - Deductive value
       - Computed value

  the importer has the right to choose the
  order of application of the two methods
           “Fall-back” method
 Ifnone of the previous methods can be used, value
  can be determined using reasonable means
  consistent with the principles and general
  provisions of the Agreement and of Article VII
  of GATT 1994
 In this method, value must not be based on:
  -selling price of goods in country of importation
  -higher of two alternative values
  -price of goods on domestic market of exporting country
  -cost of production other than computed values for
  identical or similar goods
  -price of goods for export to a third country
  -minimum customs value
  -arbitrary or fictitious values
     Special and Differential
           Treatment
 Transition   periods for developing countries:

  Five year delayed implementation for
  developing countries not parties to the
  Tokyo Round Code

 Three years for the application of the
 computed value method
     Special and Differential
         Treatment (2)
 Other   provisions for developing countries:
 -Possibility of a reservation to retain minimum
 values on a limited and transitional basis
 -Possibility of a reservation regarding the right of
 the importer to choose between deducted and
 computed value
 -Reservation with respect to certain aspects of
 using the deductive valuation method
       The Agreement Today
 Committee     on Customs Valuation
  –   Overview of the agreement
  –   Review notifications
  –   Review implementation
  –   Oversee the provision of technical assistance
  –   Oversee requests for delayed implementation
    Implementation Situation
56 Developing Countries originally requested
  the 5-year delay period (Art. 20.1)
 23 are still under the delay period, have
  been granted an extension, or are in the
  process of requesting an extension
 8 have implemented
 25 have not notified nor asked for an
  extension, thus the situation is unclear
An additional 24 have not notified the delay,
  nor legislation.
  Implementation Situation
 Central and Eastern Europe
 Ofthe 16 countries that are WTO Members,
 12 have implemented the agreement

 The situation with respect to the other 4 is
 not clear, as there are very recent acceding
 countries (Albania, Croatia, Georgia, and
 Lithuania)
Other Delays or Reservations
With respect to Computed values
 47 Members have made such a notification
With respect to Minimum values
 18 Members have made such a notification
With respect to the right of the importer to choose
  between deducted and computed value
 53Members have made such a notification
With respect to certain aspects of using the
  deductive valuation method
 51   Members have made such a notification
Other Delays or Reservations
Central and Eastern Europe
 Ofthe 16 WTO Members of the region,
 only Turkey has made a reservation with
 respect to the right of the importer to choose
 between deducted and computed value, and
 with respect to certain aspects of using the
 deductive valuation method
     Customs Valuation and
         E-commerce
 Potential   Considerations
  – on-going work in the CTG and Work
    Programme


 Decision    on Carrier Media Bearing
  Software
     Decision on the Valuation of
            Carrier Media
1.   It is reaffirmed that transaction value is the primary basis of valuation under the
     Agreement on Implementation of Article VII of the General Agreement on Tariffs
     and Trade (the Agreement) and that its application with regard to data or
     instructions (software) recorded on carrier media for data processing equipment is
     fully consistent with the Agreement.
2.   Given the unique situation with regard to data or instructions (software) recorded on
     carrier media for data processing equipment, and that some Parties have sought a
     different approach, it would also be consistent with the Agreement for those Parties
     which wish to do so to adopt the following practice:
                       In determining the customs value of imported carrier media
               bearing data or instructions, only the cost or value of the carrier medium
               itself shall be taken into account. The customs value shall not, therefore,
               include the cost or value of the data or instructions, provided that this is
               distinguished from the cost or the value of the carrier medium.
                       For the purpose of this Decision, the expression "carrier medium"
               shall not be taken to include integrated circuits, semiconductors and
               similar devices or articles incorporating such circuits or devices; the
               expression "data or instructions" shall not be taken to include sound,
               cinematic or video recordings.
3.   Those Parties adopting the practice referred to in paragraph 2 of this Decision shall
     notify the Committee of the date of its application.
4.   Those Parties adopting the practice in paragraph 2 of this Decision will do so on a
     most-favoured-nation (m.f.n.) basis, without prejudice to the continued use by any
  Application of the Decision
 30 WTO Members have made a notification
  concerning their practice of applying the
  Decision
 21 WTO Members apply paragraph 2 of the
  Decision
 9 WTO Members apply other practices
 Application of the Decision
 Central and Eastern Europe
 Allthose who have notified, apply
 paragraph 2 of the Decision

 Theyare: Bulgaria, Cyprus, Czech Rep.,
 Estonia, Hungary, Latvia, Poland, Romania,
 Slovak Rep., and Slovenia
     The End



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