Agreement Establishing the World Trade Organization
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994
1. In this Agreement:
(a) "customs value of imported goods" means the value of goods
for the purposes of levying ad valorem duties of customs on imported goods;
(b) "country of importation" means country or customs territory
of importation; and
(c) "produced" includes grown, manufactured and mined.
2. In this Agreement:
(a) "identical goods" means goods which are the same in all
respects, including physical characteristics, quality and reputation. Minor
differences in appearance would not preclude goods otherwise conforming
to the definition from being regarded as identical;
(b) "similar goods" means goods which, although not alike
in all respects, have like characteristics and like component materials
which enable them to perform the same functions and to be commercially
interchangeable. The quality of the goods, their reputation and the existence
of a trademark are among the factors to be considered in determining whether
goods are similar;
(c) the terms "identical goods" and "similar goods"
do not include, as the case may be, goods which incorporate or reflect
engineering, development, artwork, design work, and plans and sketches
for which no adjustment has been made under paragraph 1(b)(iv) of Article
8 because such elements were undertaken in the country of importation;
(d) goods shall not be regarded as "identical goods" or "similar
goods" unless they were produced in the same country as the goods
(e) goods produced by a different person shall be taken into account
only when there are no identical goods or similar goods, as the case may
be, produced by the same person as the goods being valued.
3. In this Agreement "goods of the same class or kind" means
goods which fall within a group or range of goods produced by a particular
industry or industry sector, and includes identical or similar goods.
4. For the purposes of this Agreement, persons shall be deemed to be
related only if:
(a) they are officers or directors of one another's businesses;
(b) they are legally recognized partners in business;
(c) they are employer and employee;
(d) any person directly or indirectly owns, controls or holds 5 per
cent or more of the outstanding voting stock or shares of both of them;
(e) one of them directly or indirectly controls the other;
(f) both of them are directly or indirectly controlled by a third person;
(g) together they directly or indirectly control a third person; or
(h) they are members of the same family.
5. Persons who are associated in business with one another in that one
is the sole agent, sole distributor or sole concessionaire, however described,
of the other shall be deemed to be related for the purposes of this Agreement
if they fall within the criteria of paragraph 4.
Upon written request, the importer shall have the right to an explanation
in writing from the customs administration of the country of importation
as to how the customs value of the importer's goods was determined.
Nothing in this Agreement shall be construed as restricting or calling
into question the rights of customs administrations to satisfy themselves
as to the truth or accuracy of any statement, document or declaration presented
for customs valuation purposes.
ADMINISTRATION, CONSULTATIONS AND DISPUTE SETTLEMENT
Article 18: Institutions
1. There is hereby established a Committee on Customs Valuation (referred
to in this Agreement as "the Committee") composed of representatives
from each of the Members. The Committee shall elect its own Chairman and
shall normally meet once a year, or as is otherwise envisaged by the relevant
provisions of this Agreement, for the purpose of affording Members the
opportunity to consult on matters relating to the administration of the
customs valuation system by any Member as it might affect the operation
of this Agreement or the furtherance of its objectives and carrying out
such other responsibilities as may be assigned to it by the Members. The
WTO Secretariat shall act as the secretariat to the Committee.
2. There shall be established a Technical Committee on Customs Valuation
(referred to in this Agreement as "the Technical Committee")
under the auspices of the Customs Co-operation Council (referred to in
this Agreement as "the CCC"), which shall carry out the responsibilities
described in Annex II to this Agreement and shall operate in accordance
with the rules of procedure contained therein.
Article 19: Consultations and Dispute Settlement
1. Except as otherwise provided herein, the Dispute Settlement Understanding
is applicable to consultations and the settlement of disputes under this
2. If any Member considers that any benefit accruing to it, directly
or indirectly, under this Agreement is being nullified or impaired, or
that the achievement of any objective of this Agreement is being impeded,
as a result of the actions of another Member or of other Members, it may,
with a view to reaching a mutually satisfactory solution of this matter,
request consultations with the Member or Members in question. Each Member
shall afford sympathetic consideration to any request from another Member
3. The Technical Committee shall provide, upon request, advice and assistance
to Members engaged in consultations.
4. At the request of a party to the dispute, or on its own initiative,
a panel established to examine a dispute relating to the provisions of
this Agreement may request the Technical Committee to carry out an examination
of any questions requiring technical consideration. The panel shall determine
the terms of reference of the Technical Committee for the particular dispute
and set a time period for receipt of the report of the Technical Committee.
The panel shall take into consideration the report of the Technical Committee.
In the event that the Technical Committee is unable to reach consensus
on a matter referred to it pursuant to this paragraph, the panel should
afford the parties to the dispute an opportunity to present their views
on the matter to the panel.
5. Confidential information provided to the panel shall not be disclosed
without formal authorization from the person, body or authority providing
such information. Where such information is requested from the panel but
release of such information by the panel is not authorized, a non-confidential
summary of this information, authorized by the person, body or authority
providing the information, shall be provided.
SPECIAL AND DIFFERENTIAL TREATMENT
1. Developing country Members not party to the Agreement on Implementation
of Article VII of the General Agreement on Tariffs and Trade done on 12
April 1979 may delay application of the provisions of this Agreement for
a period not exceeding five years from the date of entry into force of
the WTO Agreement for such Members. Developing country Members who choose
to delay application of this Agreement shall notify the Director-General
of the WTO accordingly.
2. In addition to paragraph 1, developing country Members not party
to the Agreement on Implementation of Article VII of the General Agreement
on Tariffs and Trade done on 12 April 1979 may delay application of paragraph
2(b)(iii) of Article 1 and Article 6 for a period not exceeding three years
following their application of all other provisions of this Agreement.
Developing country Members that choose to delay application of the provisions
specified in this paragraph shall notify the Director-General of the WTO
3. Developed country Members shall furnish, on mutually agreed terms,
technical assistance to developing country Members that so request. On
this basis developed country Members shall draw up programmes of technical
assistance which may include, inter alia, training of personnel,
assistance in preparing implementation measures, access to sources of information
regarding customs valuation methodology, and advice on the application
of the provisions of this Agreement.
Article 21: Reservations
Reservations may not be entered in respect of any of the provisions
of this Agreement without the consent of the other Members.
Article 22: National Legislation
1. Each Member shall ensure, not later than the date of application
of the provisions of this Agreement for it, the conformity of its laws,
regulations and administrative procedures with the provisions of this Agreement.
2. Each Member shall inform the Committee of any changes in its laws
and regulations relevant to this Agreement and in the administration of
such laws and regulations.
Article 23: Review
The Committee shall review annually the implementation and operation
of this Agreement taking into account the objectives thereof. The Committee
shall annually inform the Council for Trade in Goods of developments during
the period covered by such reviews.
Article 24: Secretariat
This Agreement shall be serviced by the WTO Secretariat except in regard
to those responsibilities specifically assigned to the Technical Committee,
which will be serviced by the CCC Secretariat.
Continue with the Agreement on Implementation of
Article VII of the General Agreement on Tariffs and Trade 1994