WORLD TRADE G/VAL/N/2/FJI/1
2April 1997
ORGANIZATION(97-1312)
Original: English Committee onCustoms Valuation
INFORMATION ONIMPLEMENTATION AND ADMINISTRATION OFTHE
AGREEMENT ONCUSTOMS VALUATION
Checklist ofIssues
Fiji
Inaccordance withtheDecision oftheTokyo Round Committee of5May1981 (G/VAL/5),
thePermanent Mission ofFijisubmits theattached responses tothequestions raised inthechecklist
ofissues.G/VAL/N/2/FJI/1
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Appendix VIII
Question 1(a)(i)
Answer: Section 2(1)(d)(i)(ii) toPart2ofSchedule 1
Thissection provides forthetransaction value tobeaccepted astheCustoms value between
related parties when therelationship didnotinfluence theprice paidorpayable forthegoods orit
isdemonstrated interms ofsub-section 3toSection 2ofPart2toSchedule 1oftheCustoms Tariff
Act1986 thattheprice hasnotbeeninfluenced.
Question 1(a)(ii)
Answer: Section 2(1)toPart2andSection 2(2)toPart(2)
Intercompany price listsareconsidered tobeanindication thatthereisthepossibility ofprice
influence, butingeneral terms thisisoneofseveral factors thatcould suggest therelationship has
influenced theprice. There ishowever nospecific reference tointercompany prices intheFiji
Legislation, thereisonlyreference tobuyer andsellers whoarerelated andtherefore thatrelationship
mayormaynothaveinfluenced theprice paidforthegoods.
Question 1(a)(iii)
Answer: Section 2(2)toPart(2)
Theofficer whoisappraising thevalue fordutyofthegoods (customs value) shallnotify the
importer ofthegoods ofsuchgrounds, i.e.thattherelationship mayhaveinfluenced theprice. If
theimporter requests, thenotification shallbeinwriting. Thenotification explains thegrounds for
theCustoms believing there maybeprice influence.
Question 1(a)(iii)
Answer: Section 2(3)toPart2
Thissection isself-explanatory andreflects Article 1.2(b)(i)(ii) and(iii).Likeother Members
oftheWTO Article 1.2(b)(iv) hasnotbeenimplemented asthistestvalue method hasbeeneliminated
byallMembers totheGATT Valuation Agreement.
Question 1(b)
Answer: Section 51oftheCustoms Act1986
Thissection states thattheComptroller onwritten request bytheowner/importer:
(a) Re-gauge, re-measure, re-weigh, examine ortakestock ofanywarehoused goods;
(b) Re-value anygoods liable todutyadvalorem which havedeteriorated inquality and
thedutyonsuchgoods shallbechargeable onthebasis ofexamination orvaluation
under paragraph (a)or(b).G/VAL/N/2/FJI/1
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Question 2
Answer: seeSection 1toPart1-"Basis ofValuation"
Thissection states thatupon written request from theimporter totheComptroller theorder
ofconsideration ofthevaluation basis inrespect ofArticles 5and6(Section 6and7toPart2)shall
bereversed andconfirmed inwriting bytheComptroller.
Question 3
Answer: Refer toSection 6(4)toPart2
Therelevant FijiLegislation states:
(4) "Where thegoods being valued, oridentical goods orsimilar goods arenotsoldinFijiinthe
circumstances described insub-section (2)orsub-section (3)ofthisSection butthegoods being valued
afterbeing assembled, packaged orfurther processed inFijiaresoldinFijibefore theexpiration of
90daysaftertheimportation thereof andtheimporter ofthegoods being valued request thatthis
sub-section beapplied inthedetermination oftheCustoms value ofthose goods, thedeductive value
ofthegoods being valued shallbetheprice perunitinrespect ofsalesdescribed insub-section (5)
ofthisSection anddetermined inaccordance withthatsub-section andadjusted inaccordance with
sub-section (6)ofthisSection atwhich thegreatest number ofunitsofthegoods being valued areso
sold".
Thereality ofthissection isthatitsusebyFijiisunlikely bearing inmind thatFijiisasmall
developing nation andthattheuseofdeductive value islikely tobeverylimited andthenonlyinrespect
ofgoods soldinconsignment oratauction.
Question 4
Answer :Section 7(2)(A)(B)andSection 7(4)toPart2
Therelevant Legislation refers asfollows :
Section 7"(2)Thecomputed value ofthegoods being valued istheaggregate ofamounts equal to:
(a)Thecost,charges andexpenses inrespect of,orthevalue of:
(i) Materials employed inproducing thegoods being valued, and
(ii) Theproduction orother processing ofthegoods being valued, determined on
thebasis of:
(A) Thecommercial accounts oftheproducer ofthegoods being valued;
or
(B) Anyothersufficient information relating totheproduction ofthegoods
being valued -thataresupplied byoronbehalf oftheproducer ofthe
goods andprepared inamanner consistent withthegenerally accepted
accounting principles ofthecountry ofproduction ofthegoods being
valued, including, without limiting thegenerality oftheforegoing" -
(seeLegislation).G/VAL/N/2/FJI/1
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Inrespect ofArticle 6.2theFijian Legislation takes theapproach thatinorder toallow the
computed value method tooperate itaccepts thattheinformation islikely torestwiththeoverseas
producer. Itisalsorealised thatthecomputed value method ismore likely tooperate inrespect of
related parties. Inanyother situation anoverseas supplier isnotgoing toproduce theircostings to
anunrelated party -andnorshould thatbeexpected.
Asaconsequence Section 7(2)(A) +(B)seekappropriate financial details from evidence of
thecommercial accounts oftheproducer, orsufficient information relating totheproduction ofthe
goods being valued tobesupplied byoronbehalf oftheproducer.
Section 7 "(4)Theamount ofprofit andgeneral expenses referred toinsub-section (2)(b) of
thisSection shallbecalculated onapercentage basisanddetermined onthebasisofinformation prepared
inamanner consistent withgenerally acceptable accounting principles ofthecountry ofproduction
ofthegoods being valued andthatissupplied:
(a) Byoronbehalf oftheproducer ofthegoods being valued; or
(b) Where theinformation supplied byoronbehalf oftheproducer ofthegoods being
valued isnotsufficient information, byanexamination ofsalesforexport toFijiof
thenarrowest group orrange ofgoods ofthesame classorkindfromwhich sufficient
information can,intheopinion oftheComptroller beobtained".
Thissub-section takes thesame approach asSection 7(2)(A) +(B)insomuch thatitrelies
onprofit andgeneral expenses information tobesupplied byoronbehalf oftheproducer ofthegoods.
IfCustoms believe there isnotsufficient information toenable theCustoms value tobe
determined (andthiscould beduetothefactthatnoinformation could besupplied) thenvaluation
must beattempted interms ofArticle 7.(Section 8intheFijian Legislation).
Question 5(a)
Answer :Section 8(1)toPart2
IntheFijian Legislation theCustoms value isdetermined oninformation available inFijion
thebasis ofavalue derived from methods ofvaluation setoutinSections 2to7(Articles 1to6).
Question 5(b)
Answer :Section 9toPart2
TheFijian Legislation isself-explanatory asfollows:
Section 9.Supply ofInformation: Upon written request byanyimporter ofanygoods, the
Comptroller shallgivenotice tothatimporter inwriting oftheCustoms value ofthegoods andthe
basisofthedetermination ofthatCustoms value including theprovisions oftheActapplying thereto.
Question 5(b)
Answer :Section 8(2)toPart2
TheFijian Legislation fullyreflects Article 7(2)asfollows:G/VAL/N/2/FJI/1
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(2) ACustoms value shallnotbedetermined onthebasis of:
(a) Theselling price inFijiofgoods produced inFiji;or
(b) Abasis which provides fortheacceptance ofthehigher ofthetwoalternative values;
(c) Theprice ofgoods onthedomestic market ofthecountry ofexportation; or
(d) Thecostofproduction, other thancomputed values thathavebeendetermined for
identical orsimilar goods inaccordance, withSection 7ofthisSchedule;
(e) Theprice ofgoods forexport toacountry other thanFiji;or
(f) Minimum Customs value; or
(g) Arbitrary orfictitious values;
Question 6
Answer :Section 3(1)(a)(vi) toPart2and3(1)(b)(i) BtoPart2
Section 3toPart2totheFijian Legislation deals withthose situations where theymaybean
adjustment totheprice where itisnecessary toeither addordeduct suchamounts thatareeither not
included intheprice, orexcluded from theprice whatever thecasemaybe,asfollows:
Section 3 Adjustment ofprice paidorpayable -(1)Theprice paidorpayable inrespect of
goods soldforexport toFijishallbeadjusted:
(a) Byadding thereto amounts, totheextent thateachsuchamount isnotalready included
intheprice paidorpayable forthegoods equal to:
(vi) Thecostoftransportation andinsurance andtheloading andunloading and
handling charges andother charges andexpenses associated with the
transportation oftheimported goods toFiji.
Section 3(1)(b) bydeducting therefrom amounts totheextent thateachsuchamount isincluded
intheprice paidorpayable forthegoods equal to:
(i)Anyofthefollowing costs, charges orexpenses.
(B) Anyreasonable cost,charge orexpense thatisincurred inrespect of
thetransportation orinsurance ofthegoods within Fijiandany
reasonable cost,charge orexpense associated therewith :
YouwillnotethattheCustoms value inFijiistheequivalent ofCIF(Cost Insurance and
Freight). Asaconsequence noex-factory orfobprices areaccepted astheCustoms value.G/VAL/N/2/FJI/1
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Question 7Section 6ofPt.2ofSchedule 1ofCTA 1986
Answer
Forthepurposes oflevying advalorem dutyinrespect oftheimported goods, therateof
exchange withregard tothevalue ofthose goods expressed inthecurrency ofthecountry fromwhich
theywereimported shallbetheselling rateforsightdrafts inFijiaslastnotified before thetimewhen
thegoods areentered oratthediscretion oftheComptroller asmaybeexpedient forcomputer
processing, amean ratecalculated overaperiod of5working daysorsuchfurther period asmaybe
convenient asbasisforanapplication ofasingle rateforthecalculation ofValue forDutyoveraperiod
oftime.
Question 8
Answer :Section 1(2)oftheOfficial Secrets Act
"(2)ifanyperson:
(a) Retains foranypurposes prejudicial tothesafety orinterests oftheStateanyofficial
document, whether ornotcompleted orissued foruse,when hehasnorighttoretain
it,orwhen itiscontrary tohisdutytoretain it,orfailstocomply withanydirections
issued byanyGovernment Department oranyperson authorised bysuchdepartment
withregard tothereturn ofdisposal thereof; or
(b) Allows anyother person tohavepossession ofanyofficial document issued forhis
usealone, orcommunicates anysecret official codeword orpassword issued forthe
useofsome person other thanhimself, oronobtaining possession ofanyofficial
document byfinding orotherwise, neglects orfailstorestore ittotheperson or
authority bywhom orforwhose useitwasissued, ortoapolice constable; or
(c) Without lawful authority orexcuse, manufactures orsells, orhasinhispossession
forsaleanysuchdie,sealorstamp asaforesaid,
heshallbeguilty ofamisdemeanour".
Question 9(a)
Answer :Section 94ofCustoms Act1986
94. (1)Ifanydispute arises astotheamount orrateofdutypayable inrespect ofanygoods, or
astotheliability ofanygoods todutyunder anycustoms laws, theowner ofthegoods maypayunder
protest thesumdemanded bytheComptroller asthedutypayable inrespect ofthegoods, andthereupon
thesumsopaidshall, asagainst theowner ofthegoods, bedeemed tobetheproper dutypayable
inrespect ofthegoods unless thecontrary isdetermined inanaction brought inpursuance ofthissection.
(2) Theowner may:
(a) Ifthedispute relates tothedecision bytheComptroller uponanyofthematters specified
intheSchedule tothisAct,within 3months afterthedateofpayment, enteranappeal
totheCourt ofReview established under theprovisions ofsection 174;G/VAL/N/2/FJI/1
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(b) Inanyother case, within 3months afterthedateofpayment, bring anaction against
theComptroller inanyCourt ofcompetent jurisdiction fortherecovery ofthewhole
oranypartofthesumsopaid.
Question 9(b)
Answer: Section 158ofCustoms Act1986
158. (1)Ifanotice ofclaim hasbeengiven totheComptroller inaccordance withtheprovisions
ofsection 157,thentheComptroller maywithin aperiod of2months fromthereceipt ofsuchclaim,
either:
(a) Bynotice inwriting totheclaimant, require theclaimant toinstitute proceedings for
therecovery ofthegoods within 2months ofthedateofsuchnotice; or
(b) Himself institute proceedings forthecondemnation ofthegoods.
(2) IftheComptroller failswithin suchperiod of2months either torequire theclaimant toinstitute
proceedings, orhimself toinstitute proceedings, inaccordance withtheprovisions ofsub-section (1)
thensuchgoods shallbereleased totheclaimant.
(3) IftheComptroller, inaccordance withtheprovisions ofsub-section (1),requires theclaimant
toinstitute proceedings withtheperiod of2months andtheclaimant failstodoso,thenontheexpiration
ofsuchperiod thegoods aredeemed tohavebeencondemned.
Question 10(a)(i)
Answer: seebelow
Thenational Legislation forCustoms Valuation inrespect oftheGVA maybefound inPart1
andPart2toSchedule 1,theCustoms Tariff Act1986
Question 10(a)(ii)
Answer: Part1andPart2ofSchedule 1toCTA 1986
Regulation 157
Pursuant toPart2ofSchedule 1ofCustoms tariff Act,thevalue ofthegoods andServices
supplied directly orindirectly bythebuyer ofanygoods being valued shall bedetermined in
accordance withthisRegulation:
(a) Inthecaseofmaterials, components, partsandother goods incorporated inthegoods
being valued oranymaterials consumed intheproduction ofthegoods being valued:
(i) Byascertaining:
(A) Their costofacquisition where theywereacquired bythebuyer from
aperson whowasnotrelated tothebuyer atthetime oftheir
acquisition; or
(B) Their costofacquisition incurred bytheperson related tothebuyer,
where thegoods wereacquired bythebuyer from aperson whowasG/VAL/N/2/FJI/1
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related tothebuyer atthetimeoftheiracquisition butwhodidnot
produce them; or
(C) Their costofproduction where theywere produced bythebuyer or
aperson related tothebuyer arethetimeoftheirproduction and
(ii) Byadding thereto:
(A) Thecostoftheirinspection totheplace ofproduction ofthegoods
being valued and
(B) Thevalue added tothembyanyrepairs ormodifications made tothem
aftertheywere soacquired orproduced.
(b) Inthecaseoftools, dies,moulds, andother goods, utilised intheproduction ofthe
goods being valued:
(i) Byascertaining:
(A) Their costofacquisition where theywereacquired bythebuyer from
aperson whowasnotrelated tothebuyer atthetimetheywere so
acquired; or
(B) Their costofacquisition incurred bytheperson related tothebuyer,
where theywere acquired bythebuyer from aperson related tothe
buyer atthetimetheyweresoacquired butwhodidnotproduce them
or
(C) Their costofproduction where theywere produced bythebuyer or
aperson related tothebuyer atthetimeoftheirproduction; and
(ii) Byadding thereto:
(A) Thecostoftheirtransportation totheplace ofproduction ofthegoods
being valued and
(B) Thevalue added tothembyanyrepairs ormodifications made tothem
aftertheywere soacquired orproduced; and
(iii) Bydeducting therefrom anamount toaccount foranyprevious useofthegoods
made afterthegoods were soacquired orproduced.
(c) Inthecaseofengineering, development work, artwork designwork plan,andsketches,
undertaken elsewhere thaninFijiandnecessary fortheproduction ofthegoods being
valued byascertaining:
(i) Their costofacquisition oroftheleasethereof, where theywereacquired or
leased bythebuyer fromaperson whowasnotrelated tothebuyer atthetime
theyweresoacquired orleased andarenotgenerally available tothepublic;
or
(ii) Their costofacquisition oroftheleasethereof incurred bytheperson related
tothebuyer, where theywereacquired orleased bythebuyer fromaperson
related tothebuyer atthetimetheyweresoacquired orleased, butwhodid
notproduce them andarenotgenerally available tothepublic; or
(iii) Thecosttothepublic ofobtaining them where theyareavailable generally
tothepublic; orG/VAL/N/2/FJI/1
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(iv) Thecostofproduction thereof where theywere produced bythebuyer ora
person related tothebuyer atthetimeoftheirproduction.
Question 10(a)(iii)
Answer: FijiRoyal Gazette published monthly
Issue ofCustoms &Excise Public Notices.
Question 10(b)
Answer: No
Question 11(a) and(b)
Answer: Regulation 161ofCustoms Regulation 1986
161. (1)Where goods havebeenseized asbeing liable toforfeiture under thisAct,itislawful for
theComptroller toorder thedelivery ofsuchgoods onsecurity bybond, withtwosufficient sureties
tobefirstapproved byhim,being given fordouble thevalue ofthegoods, andsuchbond shallbe
delivered andkeptinthecustody oftheComptroller.
(2) Ifthegoods referred toinsub-section (1)arecondemned, thevalue thereof onlyshallbepaid
intothehands oftheComptroller whoshallthereupon cancel thebond.
Question 12(a) and(b)
Answer: Section (13)Interpretation Section "Explanation toImporter"
"Explanation toImporter" means upon receipt ofawritten request from theimporter within
30days, theComptroller ofCustoms shallinawritten explanation ofhowthevalue oftheimported
goods weredetermined. Theexplanation willapply onlytotheimported goods being valued andwill
notserve asauthority withrespect tothevaluation ofimportation ofanyother goods. Thisprocess
doesnotaffect orreplace theprotest foradministrative ruling contained intheActoranyother Customs
procedures.
There arenofurther regulations concerning theabove explanation.
Question 13
Answer: Seebelow (FijiCustoms tonote)
Theinterpretative notes havebeenincluded intheFijian Legislation particularly inSections 2
to8toPart2ofSchedule 1totheCustoms Tariff Act1986. Insome instances, suchasthedefinition
of"generally accepted accounting principles" mentioned inthe"General Note" toAnnex 1tothe
Interpretative Notes, appears under the"Interpretation Section" totheLegislation, i.e.,Section 1to
Part1ofSchedule 1totheCustoms Tariff Act1986.
Another example istheNotetoArticle 1,concerning charges orcostsexcluded fromtheprice
actually paidorpayable. ThisNotemaybefound inSection 3(1)(b)(i) toPart2toSchedule 1ofthe
Customs Tariff Act1986.G/VAL/N/2/FJI/1
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General notes totheInterpretative Notes arealsoidentified inPublic Notices Nos. 2and3
andDepartmental Notices Nos. 2,3and4.
Question 14
Answer: Section 1(11) toPart1
Thefollowing excerpt from thelawshows howthedecision relevant tointerest charges has
beenimplemented asfollows:
Section 1(ii)"Forthepurposes ofthisAct,charges forinterest under afinancing arrangement
entered intobythebuyer andrelating tothepurchase ofimported goods shallnotberegarded aspart
oftheCustom value inanycases where:
(a) Thecharges aredistinguished from theprice actually paidorpayable forthegoods;
and
(b) Suchgoods areactually soldatthericedeclared astheprice actually paidorpayable;
and
(c) Thebuyer, ifrequired candemonstrate that:
(i) Thefinancing arrangement wasmade inwriting;
(ii) Theclaimed rateofinterest doesnotexceed thelevel forsuchtransactions
prevailinginthecountrywhere,andatthetimewhen,thefinancewasprovided.
Question 15
Answer: asbelow
TheFijiGovernmenthasnotimplementedtheDecisionoftheValuationofCarrierMediaBearing
Software forDateProcessing Equipment atthisstage. Thismeans ofcourse thatthecostofsoftware
forms anintegral component oftheprice actually paidorpayable forthese goods.
Itshould however bepointed outthatthequestion ofimplementing this"Decision" hasyet
tobegivenconsiderationbytheFijiGovernmentbearinginmindthefinancialimplicationstothecountry
ifthedecision wasputintooperation.