./.WORLD TRADE
ORGANIZATIONG/VAL/W/122
12 August 2003
(03-4196)
Committee on Customs Valuation Original:  English
INFORMATION ON CERTAIN ASPECTS OF THE
EUROPEAN COMMUNITIES VALUATION POLICY
Communication from Brazil
The following communication, dated 31 July 2003, has been received from the Permanent
Mission of Brazil.
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I refer to Commission Regulation (EC) No. 3223/ 94, which has been the object of specific
questions to the delegation of the European Comm unity in document G/VAL/W/51, responses to which
are contained in document G/VAL/W/66.  In this re gard, my delegation would appreciate clarifications
on the following points:
1. Regulation No. 3223/94 gives importers the option of  three methods for the determination of the
entry price of certain fruits and vegetables into the EC market, among which is that of the "standard
import price".  Are there any incentives for the use of  this method, and taking into account that it deals
with perishable goods, expedited customs clearance pr ocedures could minimize costs with storage, loss
through deterioration of the goods and delays in delivery?
2. Could clarification be provided regarding the relationship between the "entry price system" and
the Agreement on Implementation of Article VII of  GATT 1994, taking into account that (i) the option
for the "standard import price" method defines, in u ltimate analysis, the value which will serve as a basis
for the calculation of customs duties;  (ii) th e aforementioned method does not seem to follow the
sequential hierarchy laid down in the Agreement on Implementation of Article VII of GATT 1994;  and
(iii) there is no mention to such a method in the Agreement on Implementation of Article VII of
GATT 1994.
3. With regard to Regulation No. 3223/94,
(a)  What are the criteria and methodologies for the choice of the "representative markets" and
"third countries"?
(b)  Some of these "third countries" that export the qualifying products may have a cost
structure, and consequently offered prices that are similar to those of the EC, a fact which may
affect the definition of the "standard import price".(c)  These "third countries" may also apply production subsidies, a pr actice which would also
affect the prices to the "representative markets".
(d)  How is transparency in the determina tion of the "standard import values" ensured?
(e)  Can seasonal factors come to have an adve rse impact in the determination of the "standard
import prices" for countries of the Southern hemisphere?
(f)  What is the methodology for the definition of the weight of "representative markets" in the
weighted average utilized?G/VAL/W/122
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(g)  What are the advantages and disadvantage s for the importer in opting for "standard import
prices" rather than transaction value?
(h)  What are the implications for importers of g oods listed in Part I of the Annex that declare a
value below the reference value?
(i)  Could the EC supply statistical inform ation regarding goods covered by Regulation
No. 3223/94 in order to provide an idea of rela tive use of the "standard import prices" method
and the methods foreseen in the Agreement on Implementation of Ar ticle VII of GATT 1994?
(j)  Could the EC provide information on the percentage of imports under "standard import
prices" and under the methods foreseen in the Agreement on Implementation of Article VII of
GATT 1994 that have been subject to post-entry audit?
(k)  Could the EC provide statistics on the relati ve use of "standard import prices" and of the
transaction value for goods imported from Brazil?
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