 
 WORLD TRADE  
ORGANIZATION   
G/VAL/N/2/MEX/1 
2 July 2004 
 
 (04-2848) 
Committee on Customs Valuation Original:   Spanish 
  
 
INFORMATION ON IMPLEMENTATION AND ADMINISTRATION 
OF THE AGREEMENT ON CUSTOMS VALUATION 
 
Check-list of Issues 
 
MEXICO 
   The following communication, dated 24 June 2004,  is being circulated at the request of the 
delegation of Mexico. 
 
1. Questions concerning Article 1: 
(a) Sales between related persons: 
(i) Are sales between related persons subject to special provisions? 
  There are no special provisions other than  those contained in the Agreement, which 
are reflected in Articles 68, 69 and 70 of the Customs Law.  
 
(ii) Is the fact of intercompany prices prim a facie considered as grounds for regarding 
the respective prices as being influenced? 
  Only when companies are related in one of  the ways set forth in Article 15.5 of the 
Agreement, which is equivalent to Article  68 of the Customs Law, is there a legal 
presumption requiring the Administration to examine the circumstances of the sale or 
the importer to demonstrate, in accordance with the criteria set out in Article 1.2(b) of the Agreement, which is equivalent to Ar ticle 70 of the Customs Law, that, although 
a relationship exists, it did not influence the prices.   
 
(iii) What is the provision for giving the co mmunication of the above-mentioned grounds 
in writing if the importer so requests (Article 1.2(a))? 
During customs clearance of the goods, an express declaration by the importer that it 
has a relationship with its supplier and that th is did not influence the price is adequate 
for the purposes of determining the custom s value on the basis of the transaction 
value.  However, the investigation in to the truthfulness and accuracy of the 
declaration is subject to subsequent revi ew, which is generally carried out on the 
importer's premises.  On the basis of this review, after having assessed all documentary evidence provided by the importer, third parties, and even other authorities - the Authority issues a decision in writing, substantiating its finding that a determination of customs value on the basis of the transaction was not proper because 
the price was influenced by the relationship.  G/VAL/N/2/MEX/1 
Page 2  
 
 (iv) How has Article 1.2(b) been implemented? 
  For clearance purposes, by means of a documented report contained in the 
"Declaration of Value" that the importer attaches to the customs declaration and in which reference is made to the circumst ances of sale and also to the unacceptability 
of the method employed.  As regards the customs authority, only by means of a 
subsequent review, in which, at the e xpress request of the inspector and for the 
purpose of accepting the declared customs value, the importer is requested to 
demonstrate that the declared value closel y approximates to one of the test values 
established in Article 70 of the Customs Law or  in its equivalent, Article 1.2(b) of the 
Agreement in the actual circumstances of the operation.  
 
(b) Price of lost or damaged goods: 
 Are there any special provisions or practical arrangements concerning the valuation of lost or 
damaged goods? 
 
 Pursuant to the Customs Law, only in cases where goods under custody of the customs 
authority have been lost or misplaced will th e authority compensate the owner in an amount 
equal to the value of the goods at the time of th eir entry into the premises under control of the 
customs authority.  
  
2. How has the provision of Article 4 to allow the importer an option to reverse the order 
of application of Articles 5 and 6 been implemented? 
 Since the customs value of over 90 per cent of imports is determined on the basis of the 
transaction value, importers have  had relatively little experience in  implementing other methods of 
determination.  However, the principle laid down in Article 4 of the Agreement whereby the importer 
is given the option of reversing the order of app lication of Articles 5 and 6, is provided for in 
Article 71 of the Customs Law.    
 
3. How has Article 5.2 been implemented? 
 Mexico has had no experience in this regard, but the principle is established in Article 74, 
Part II of the Customs Law.    4. How has Article 6.2 been implemented? 
 Mexico has had no experience in this regard, but  the principle is established in Article 77 of 
the Customs Law.  
5. Questions concerning Article 7: 
(a) What provisions have been made for making va lue determinations pursuant to Article 7? 
Leaving aside the provisions of Article 7. 2, the Customs Law reproduces the text of 
Article 7.1 in Article 78 and the substa nce of Article 7.3 in Article 78-C.  
  G/VAL/N/2/MEX/1 
 Page 3 
 
 
 (b)  What is the provision for informing the importer of the customs value determined under 
Article 7? 
 The importer has the right to access confidential information provided by third parties for the 
purpose of determining the customs value, in  accordance with the procedure laid down in 
Article 78-C of the Customs Law.  
 
(c) Are the prohibitions found in Article 7.2 delineated? 
No.  However, their incorporation into the Customs Law is under consideration. 
 
6. How have the options found in Article 8.2 been handled? In the case of f.o.b. application, 
are ex-factory prices accepted? 
Yes, as long as there is documentary evidence that  the transaction actually took this form.  It 
should be noted that Mexico applies the c.i.f. base and that it has opted to include, under Article 65 of 
the Customs Law, all of the costs listed in Article 8. 2 of the Agreement in determining customs value.  
 7. Where is the rate of exchange publis hed, as required by Article 9.1? 
 On a daily basis, the Bank of Mexico publishes in the Diario Oficial de la Federación  - the 
official gazette of the Federal Government - th e exchange rate for paym ent of foreign currency 
obligations in Mexico.   
8. What steps have been taken to ensure confidentiality, as required by Article 10? 
 The disclosure of confidential information by a public servant is classified in the Federal 
Penal Code as "improper exercise of public service" , whether the confidential information is for the 
public servant's own use or for use by a third party, and is punishable by a prison term of from two to 
seven years, a fine of from 30 to 300 times the value of the legal minimum wage in the Federal 
District and dismissal or disqualification from any job, office or other assignment in the public service 
for a period ranging from two to seven years, in a ddition to the penalties established in the Law on the 
Liability of Public Servants.  Moreover, Article 78-C of the Customs Law provides that information 
relating to the identity of third parties that import or have imported identical  or similar goods or goods 
of the same type or class, the customs value of which is used to determine the value of goods that are 
the subject of a decision, and any confidential in formation about these imports that is used to 
influence the decision, may be disclosed only in the courts where the act of authority is being 
challenged.         
 
9. Questions concerning Article 11: 
(a) What rights of appeal are open to the importer or any other person? 
Pursuant to Article 203 of the Customs Law, a ppeal against a final decision by the customs 
authority lies to the authority itself (recurso de revocación) and/or to the Federal Tax and 
Administrative Court ( juicio de nulidad).   
(b) How is he to be informed of his rights to further appeal? 
Rights to further appeal and the regulation of appellate bodies are dealt with in the Fiscal 
Code of the Federation, since any issue relati ng to customs is treated as a fiscal matter.   
 G/VAL/N/2/MEX/1 
Page 4  
 
 10. Provide information on the publicatio n, as required by Article 12, of: 
(a) (i) The relevant national laws: 
 
 Customs Law, Chapter III, First Section. 
(i) The regulations concerning the ap plication of the Agreement: 
 Customs Law Regulations, Chapter III. 
 
(ii) The judicial decision and administrative rulings of general application relating to the 
Agreement: 
The General Rules relating to Foreig n Trade and the Annexes thereto. 
(iii) General or specific laws being referred to in the rules of implementation or 
application: 
  Customs Law, Sixth Title, Single Chapter. 
 (b) Is the publication of further rules anticipated? Which topics would they cover? 
 
 An annual review is carried out of all matters  relating to fiscal and customs legislation, in 
order to identify relevant changes - additions, amendments or deletions.   
 
11. Questions concerning Article 13: 
(a) How is the obligation of Article 13 (last sen tence) being dealt with in the respective 
legislation? 
Prevention of the withdrawal of goods from customs is unusual when the legal requirements 
have been met and the respective payments covered, since the Customs Law contains 
provisions that ensure compliance with custom s requirements, thus allowing importation and, 
if necessary, the posting of surety.  
 
(b) Have additional explana tions been laid down? 
There has been no need. 
 
12. Questions concerning Article 16: 
(a) Does the respective national legislation contai n a provision requiring customs authorities to 
give an explanation in writing as to how the customs value was determined? 
 Article 78-B of the Customs Law establishes th e procedure whereby exporters may submit an 
inquiry to the customs authority concerning the valuation method or the factors used to determine the customs value.  The customs aut hority must reply at the latest within four 
months.  Moreover, Article 16 of the Political Constitution of the United Mexican States 
expressly states that any act of authority, such  as a decision determining customs value, must 
be issued in writing, stating the basis in law for the act and the grounds for deeming that the 
conduct or actions being punished fall under that  law, the aim being to avoid leaving the 
importer with no basis for defence and to enable him to challenge the authority's arguments in 
an appeal.      G/VAL/N/2/MEX/1 
 Page 5 
 
 
  
(b) Are there any further regulations con cerning the above-mentioned requirement? 
 The fact that this obligation is enshrined in  the Political Constitution of Mexico equates it 
with a constitutional guarantee, which ranks higher than an administrative provision.   
 13. How have the Interpretative Notes of the Agreement been included? 
 They have not been formally incorporated into  any legal text.  Nevertheless, the interpretative 
notes were published with the Agreement in full on 30 December 1994 in the Diario Oficial de la 
Federación  - the official gazette of the Federal Govern ment – and since then have been the formal 
source of all matters relating to customs valuation,  insofar as they expressly set out the applicable 
"legal principles" ( ratio legis ).    
 
14. How have the provisions of the Decision on the Treatment of Interest Charges in the 
Customs Value of Imported Goods been implemented? 
 Although there is no express provision, in order to ensure consistency with the principles of 
customs valuation, the criterion applied is that  established in Decision 3.1 pertaining to the 
Agreement, namely that when the interest charges are distinguished from the price actually paid or 
payable for the goods, charges for interest under a sp ecific financing arrangement are not considered 
to be part of the customs value.  
15. For those countries applying paragraph 2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing E quipment, how have the provisions of this 
paragraph been implemented? 
 Likewise, in order to maintain consistency with the principles for determining the customs 
value of imported carrier media bearing data or in structions, the criterion est ablished in Decision 4.1 
pertaining to the Agreement has been applied, on th e basis that provided the data or instructions are 
distinguished from the cost of value of the carrier  media, the customs value will comprise only the 
value of the carrier medium.   
 
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