RESTRICTEDWORLD TRADE
ORGANIZATIONG/VAL/W/77
30 October 2000
(00-4536)
Committee on Customs Valuation
SIXTH ANNUAL REVIEW OF THE IMPLEMENTATION AND
OPERATION OF THE AGREEMENT ON IMPLEMENTATION
OF ARTICLE VII OF THE GENERAL AGREEMENT
ON TARIFFS AND TRADE 1994
Background Working Document by the Secretariat
This working document is circulated by the Secretariat in preparation for the sixth annual
review of the implementation and operation of the Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade 1994 (the Agreement), to be conducted at the forthcomingmeeting on 7 November 2000.  As indicated in the text below, this document will have to be updatedin light of the discussion at that meeting in order to give a full picture of the developments in theCommittee during the current year.
_______________
Article 23 of the Agreement provides that "the Committee shall review annually the
implementation and operation of this Agreement taking into account the objectives thereof".
The main objectives of the Agreement are those listed in the General Introductory
Commentary.  The annual review of the Committ ee should cover the implem entation and operation of
the Agreement in the light of its objectives and specific obligations.G/VAL/W/77
Page 2
The contents of this document are as follows:
Page
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER
STAT US......................................................................................................................... ........3
II. OFFICERS OF THE WTO COMMI TTEE ON CUSTOMS  VALUATION..................8
III. MEETINGS OF TH E COMMITTEE ................................................................................8
IV. NATIONAL LEGISLAT ION PRESEN TED .....................................................................8
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OF THE TEXT
OF THE AGRE EMENT ......................................................................................................9
VI. OTHER DECISIONS TAKE N BY THE CO MMITTEE .................................................9
VII. TECHNICAL ASSIST ANCE ..............................................................................................9
VIII. REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION...10
IX. CONSULTATION AND DI SPUTE SETTLE MENT......................................................10
X. ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS (G/VAL/W/21) 10G/VAL/W/77
Page 3
MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER STATUS
(a) WTO Members (139)
Albania
AngolaAntigua and BarbudaArgentinaAustraliaAustriaBahrainBangladeshBarbadosBelgiumBelizeBeninBoliviaBotswanaBrazilBrunei DarussalamBulgariaBurkina FasoBurundiCameroonCanadaCentral African RepublicChadChileColombiaCongoCongo, Democratic Republic of theCosta RicaCôte d'IvoireCuba
Cyprus
Czech RepublicDenmarkDjiboutiDominicaDominican RepublicECEcuadorEgyptEl SalvadorEstoniaFijiFinlandFranceGabonGambiaGeorgiaGermanyGhanaGreece
GrenadaGuatemalaGuinea BissauGuinea, Rep.ofGuyanaHaitiHondurasHong Kong, ChinaHungaryIcelandIndiaIndonesiaIrelandIsraelItalyJamaicaJapanJordanKenyaKoreaKuwaitKyrgyz RepublicLatviaLesothoLiechtensteinLuxembourgMacauMadagascarMalawi
Malaysia
MaldivesMaliMaltaMauritaniaMauritiusMexicoMongoliaMoroccoMozambiqueMyanmarNamibiaNetherlandsNew ZealandNicaraguaNigerNigeriaNorwayOmanPakistan
PanamaPapua New GuineaParaguayPeruPhilippinesPolandPortugalQatarRomaniaRwandaSaint Kitts and NevisSaint LuciaSaint Vincent & GrenadineSenegalSierra LeoneSingaporeSlovak RepublicSloveniaSolomon IslandsSouth AfricaSpainSri LankaSurinameSwazilandSwedenSwitzerlandTanzaniaThailandTogo
Trinidad and Tobago
TunisiaTurkeyUgandaUnited Arab EmiratesUnited KingdomUnited StatesUruguayVenezuela, The Bolivaran  Republic ofZambiaZimbabweG/VAL/W/77
Page 4
(b) Delayed Application and Reservations1
The provisions for special and differential treatment available for developing country
Members have been invoked as follows:
(i) Article 20.1 (delayed application of the provisions of the Agreement) (8)
                                                     
1 This table reflects the situation with respect to reservations as at 7 November 2000.
1The invocation of the special provisions available for developing country Members under the Customs Valuation
Agreement 1979 shall continue to apply under the WTO Customs Valuation Agreement for the developing country Memberconcerned (WT/L/38).Benin
CameroonChadEcuadorHaitiMadagascar
NigerUnited Arab Emirates
(ii) Article 20.2 (delayed application of the computed value method) (47)
Bahrain
BangladeshBoliviaBrunei DarussalamBurkina FasoBurundiCameroonChileColombiaCosta RicaCôte d'IvoireDjiboutiDominican RepublicEgyptEcuadorEl SalvadorGabonGuatemalaGuyanaHaitiHondurasIndonesiaIsraelJamaicaKenyaKuwait
MadagascarMalaysiaMaliMaltaMauritaniaMyanmarNicaraguaNigeriaPakistanPeru
1
PhilippinesSenegalSri LankaTanzaniaThailandTogoTunisiaUnited Arab EmiratesUruguayVenezuela, The Bolivaran Rep. ofZambiaG/VAL/W/77
Page 5
(iii) Annex III, paragraph 1 (extension of the five-year delay period)(13)
Côte d'Ivoire
Dominican Republic
Egypt
El Salvador
GuatemalaJamaica
Kuwait
Mauritania
Myanmar
Paraguay
Sri Lanka
TanzaniaTunisia
(iv) Annex III, paragraph 2 (reservation concerning minimum values) (17)
Colombia
2
Côte d'Ivoire
Dominican RepublicGabon
2
GuatemalaHaitiHonduras
2
JamaicaMadagascarMalta
2
MauritaniaMorocco
2
MyanmarNicaragua
2
NigerSri LankaTunisia
                                                     
2 Decision granted by the Committee in accordance with paragraph 2, Annex III and the Decision on
Reservations in G/VAL/5.G/VAL/W/77
Page 6
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5
and 6) (53)
Argentina1
Bahrain
BangladeshBrazil
1
Brunei DarussalamBurkina FasoCameroonChileColombiaCosta RicaCôte d'IvoireDjiboutiDominican RepublicEcuadorEgyptEl SalvadorGabonGuatemalaGuyana
Haiti
HondurasIndia
1
IndonesiaIsraelJamaicaKenyaMadagascarMaldivesMalawi
1
MalaysiaMaliMaltaMexico
1
Morocco1
MyanmarNigerNicaragua
Pakistan
Peru
1
PhilippinesSenegalSingaporeSri LankaThailandTogoTunisiaTurkey
1
UgandaUnited Arab EmiratesUruguayVenezuela, The  Bolivaran Rep. ofZambiaZimbabwe
1
(vi) Annex III, paragraph 4 (reservation concerning application of Article 5.2 whether or not the
importer so requests) (51)
Argentina1
Bahrain
BangladeshBrazil
1
Brunei DarussalamBurkina FasoCameroonChileColombiaCosta RicaCôte d'IvoireDjiboutiDominican RepublicEcuador
Egypt
El SalvadorGabonGuatemalaGuyana
HaitiHondurasIndia
1
IndonesiaIsraelJamaicaKenyaMadagascarMaldivesMalaysiaMaliMaltaMexico
1
Morocco1
MyanmarNicaraguaNigerNigeria
PakistanPeru
1
PhilippinesSenegalSingaporeSri LankaThailandTogoTunisiaTurkey
1
UruguayVenezuela, The  Bolivaran Rep. of
Zambia
Zimbabwe
1G/VAL/W/77
Page 7
(c) Observer Governments (35)
Algeria
AndorraArmeniaAzerbaijanBelarusBhutanBosnia  and HerzegovinaCambodiaCape VerdeChina, Peoples Rep.CroatiaEquatorial GuineaEthiopiaFormer Yugoslav  Rep. of MacedoniaHoly SeeKazakhstanLaos, P.D.R. ofLebanonLithuania
MoldovaNepalRussian FederationSamoaSan MarinoSão Tomé  and PrincipeSaudi ArabiaSeychellesSudanTaipei, ChineseTongaUkraineUzbekistanVanuatuViet NamYemen
(d) Observer International Organizations (5)
3
World Customs Organization
IMFUNCTADACPIADB
                                                     
1The invocation of the special provisions available for developing country Members under the Customs Valuation
Agreement 1979 shall continue to apply under the WTO Customs Valuation Agreement for the developing country Memberconcerned (WT/L/38).
  3These organizations now have official observer status following Agreement in the Committee (G/VAL/M/5) and
Agreements between the World Bank and the IMF with the WTO (WT/L/195).G/VAL/W/77
Page 8
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION
Chairperson: Mr. Remo Moretta (Australia)
Vice-Chairperson: Mr. Alejandro Buvinic (Chile)
III. MEETINGS OF THE COMMITTEE
During the reporting period, the Committee has held [five] formal meetings  on 3, 9 and 16
March (G/VAL/M/13);  12, 28 April and 10, 31 May (G/VAL/M/14) under the Chairmanship of Mr.
Edward Brown (United Kingdom) and on 14 June and 4 July (G/VAL/M/15);  21 July (G/VAL/M/16)[;
and 7 November 2000 (G/VAL/M/17 to be issued ) under the Chairmanship of Mr. Remo Moretta
(Australia).
IV. NATIONAL LEGISLATION PRESENTED
(i) Texts of national legislation
Article 22  of the Agreement requires each Memb er to inform the Committee of any changes
in its laws and regulations relevant to the Agreement and in the administration of such laws andregulations.  At its first meet ing, on 12 May 1995, the Committee agreed on procedures for the
notification of national legislation (G/VAL/M/1, paragraphs 29-35, 71 and 72).
During the reporting period, the following communications and texts have been submitted:
Brazil (G/VAL/N/1/BRA/3)
Bulgaria (G/VAL/N/1/BGR/2)Costa Rica (G/VAL/N/1/CRI/1)Estonia (G/VAL/N/1/EST/1)Jordan (G/VAL/N/1/JOR/1)Kyrgyz Republic (G/VAL/N/1/KGZ/1)Malta (G/VAL/N/1/MLT/1)Slovenia (G/VAL/N/1/SVN/2)Turkey (G/VAL/N/1/TUR/2)Zambia (G/VAL/N/1/ZMB/1)
(ii)  Checklist of issues
At its first meeting, on 12 May 1995, the Comm ittee agreed on procedures for the submission
of a checklist of issues (G/VAL/M/1, paragraphs 36-39).
During the reporting period, the following communications have been submitted:
Bulgaria (G/VAL/N/2/BGR/1)
Kyrgyz Republic (G/VAL/N/2/KGZ/1)Poland (G/VAL/N/2/POL/1)Estonia (G/VAL/N/2/EST/1)Japan (G/VAL/N/2/JPN/1)Kyrgyz Republic (G/VAL/N/2/KGZ/1)Malta (G/VAL/N/2/MLT/1)G/VAL/W/77
Page 9
(iii) Examination of national legislation
At its meeting of April/May 2000, the Co mmittee pursued its examination of various
communications and implementing legislations.  The Committee agreed to conclude the examinationof the legislations of Bulgaria.  It agreed to continue examination of the legislation of Brazil andRomania.  The Committee noted that of the 55 developing countries that had invoked the delay periodprovided in Article 20.1, 29 were obliged to apply the Agreement by 1 January 2000 and another 20by the end of the year 2000.
[To be updated following the meeting of 7 November 2000].
(iv) Information on the application of the Committee Decisions
Information on the application of the Decision on the Treatment of Interest Charges in the
Customs Value of Imported Goods and of paragraph 2 of the Decision on the Valuation of CarrierMedia Bearing Software for Data Processing Equipment (G/VAL/5), made available by Members, issummarized in document G/VAL/W/5/Rev.7 and Rev.8.
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OF THE TEXT OF
THE AGREEMENT
At its first meeting on 12 May 1995, the Comm ittee adopted the decisions relating to the
interpretation of the Agreement,  which had previously been ad opted by the Toky o Round Committee
(G/VAL/M/1, paragraphs 66-67).  The decisions were reproduced in document G/VAL/5.  No newdecisions relating to the interpretation of the Agreement were adopted during the reporting period.
VI. OTHER DECISIONS TAKEN BY THE COMMITTEE
At its first meeting on 12 May 1995, the Co mmittee adopted other decisions which are
contained in document G/VAL/5.  The Committee also adopted decisions that were referred by theMinisters at Marrakesh to the Committee for adoption.  The texts of the decisions are contained indocument G/VAL/1. The Committee adopted Decisions granting extensions of the five-year delay
period, in accordance with paragraph 1 of Annex III of the Agreement for 13 Members (see list
above).  In addition, the Committ ee adopted Decisions granting reserv ations for continuing officially
established systems of minimum values for 6 Members (see list above).
VII. TECHNICAL ASSISTANCE
Technical assistance aimed at helping countries in their preparations for the application of the
Agreement has continued to be a matter of high priority to Members, to the Committee and to theTechnical Committee during the reporting period. At the April/May meeting, the WTO Secretariat
briefed the Committee on the progress and plans fo r its Technical Assistance Programme on Customs
Valuation.  The Committee also heard a report from the Inter-American Development Bank on its
activities and a report from the World Customs Organization on its interim activities related to a review
of its technical assistance activities.  At the June/July meeting, the Committee heard an oral
communication from the European Communities on a propos al for a technical assistance project;  at the
21 July meeting, the Chairman gave a report of his consultations on this matter.
[To be completed in light of the November 2000 meeting.]G/VAL/W/77
Page 10
VIII.  REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION
Meetings of the Technical Committee
[At the November meeting, the representativ e of the World Customs Organization (WCO)
presented an oral report on the Tenth and Eleventh Sessions of the Technical Committee on CustomsValuation, held on 22-26 May 2000 and on 30 Oc tober - 3 November 2000, respectively].
The Committee on Customs Valuation took note of these reports and expressed appreciation
for the continued valuable work of the Technical Committee.
IX. CONSULTATION AND DISPUTE SETTLEMENT
During the reporting period, the United States initiated consultations with Brazil pursuant to
Article 19 of the WTO Agreement on Implementati on of Article VII of the GATT 1994, Article 19 of
the WTO Agreement on Agriculture, Article 8.4 of the Agreement on Textiles and Clothing, Article 6of the Agreement on Import Licensing Procedures, Articles 1 and 4 of the Understanding on Rulesand Procedures Governing the Settlement of Disputes, and Article XXII of the GATT 1994 on
Brazil's alleged use of minimum import prices for customs valuation purposes.  The United States alsoinitiated consultations with Romania pursuant to the above provisions except Article 6 of theAgreement on Import Licensing Procedures on Romania's alleged use of minimum import prices forcustoms valuation purposes.
X. ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS
[The Committee adopted its annual report to the Council for Trade in Goods in accordance
with the requirements of Article 23 of the Agreement (G/VAL/W/78)].
[Document to be finalized in light of the discussion at the November 2000 meeting.]G/VAL/W/77
Page 11
ANNEX I
Information on National Legislation
Below are listed the references of the documents1 containing national laws, regulations etc.
and replies to the Checklist of Issues received from Members.
Member National legislation Replies to the Checklist of Issues
Argentina VAL/1/Add.22 + Suppl. 1-4 VAL/2/Rev.2/Add.4
 + Suppl.2/Rev.1
G/VAL/N/1/ARG/1
Australia VAL/1/Add.14 + Suppl.1 -4 VAL/2/Rev.1/Add.12 + Suppl.1
G/VAL/N/1/AUS/1
Botswana VAL/1/Add.16 Not receivedBrazil VAL/1/Add.20 + Suppl.1            VAL/2/Rev.2/Add.3
G/VAL/N/1/BRZ/1G/VAL/N/1/BRZ/2
Bulgaria G/VAL/N/1/BGR/1 G/VAL/N/2/BGR/1Canada VAL/1/Add.17 + Suppl.1-3 VAL/2/Rev.1/Add.14
G/VAL/N/1/CAN/1 G/VAL/N/2/CAN/1G/VAL/N/1/CAN/2
Costa Rica G/VAL/N/1/CRI/1Cyprus VAL/1/Add.26 VAL/2/Rev.2/Add.7
G/VAL/N/1/CYP/2
Czech Rep. VAL/1/Add.18 + Suppl.1/  VAL/2/Rev.1/Add.15                            Corr.1-2 + Suppl.1
G/VAL/N/1/CZE/1 G/VAL/N/2/CZE/1G/VAL/N/1/CZE/2G/VAL/N/1/CZE/3
EEC  VAL/1/Add.2 +  Suppl.1-13 VAL/2/Rev.1/Add.6 + Suppl.1
G/VAL/N/1/EEC/1/Rev.1
Estonia G/VAL/N/1/EST/1 G/VAL/N/2/EST/1Fiji G/VAL/N/1/FJI/1 G/VAL/N/2/FJI/1Gabon G/VAL/N/1/GAB/1Hong Kong, VAL/1/Add.9 Not applicable  China G/VAL/N/1/HKG/1Hungary VAL/1/Add.6 VAL/2/Rev.1/Add.4
G/VAL/N/1/HUN/1
Iceland G/VAL/N/1/ISL/1 G/VAL/N/2/ISL/1Israel G/VAL/N/1/ISR/1India VAL/1/Add.24 + Suppl.1 VAL/2/Rev.2/Add.6
G/VAL/N/1/IND/2
Japan VAL/1/Add.7 VAL/2/Rev.1/Add.8
G/VAL/N/1/JPN/1 G/VAL/N/2/JPN/1
Jordan G/VAL/N/1/JOR/1 G/VAL/N/2/JOR/1Korea, Rep.of VAL/1/Add.19 + Suppl.1-4 VAL/2/Rev.2/Add.1
                                                     
1 Documents beginning with "VAL" are documents issued under the Tokyo Round Committee on Customs ValuationG/VAL/W/77
Page 12
               + Suppl.2/Corr.1-2 + Suppl.1
+ Suppl.3/Corr.1
G/VAL/N/1/KOR/1
Kyrgyz Rep. G/VAL/N/1/KGZ/1 G/VAL/N/2/KGZ/1Latvia G/VAL/N/1/LVA/1 G/VAL/N/2/LVA/1Lesotho VAL/1/Add.21 + Suppl.1 VAL/2/Rev.2/Add.2Liechtenstein G/VAL/N/1/LIE/1Macau G/VAL/N/1/MAC/1Malawi VAL/1/Add.27
G/VAL/N/1/MWI/1
Malta G/VAL/N/1MLT/1 G/VAL/N/2MLT/1Mexico VAL/1/Add.25 + Suppl.1-3 VAL/2/Rev.2/Add.8
+ Suppl.1/Rev.1
Morocco G/VAL/N/1/MAR/1and Rev.1 G/VAL/N/2/MAR/1Namibia G/VAL/N/1/NAM/1New Zealand VAL/1/Add.12 + Suppl.1 VAL/2/Rev.1/Add.10
G/VAL/N/1/NZL/1
Norway VAL/1/Add.11 + Corr.1 VAL/2/Rev.1/Add.7
+ Suppl.1-2
G/VAL/N/1/NOR/1
Panama G/VAL/N/1/PAN/1 G/VAL/N/2/PAN/1Poland VAL/1/Add.28 G/VAL/N/2/POL/1
G/VAL/N/1POL/1G/VAL/N/1/POL/2
Romania VAL/1/Add.8 +  Suppl.1-2 VAL/2/Rev.1/Add.9
G/VAL/N/1/ROM/1G/VAL/N/1/ROM/2
Slovak Rep. VAL/1/Add.18 + Suppl.1/  VAL/2/Rev.1/Add.15
Corr.1-2 + Suppl.1
G/VAL/N/1/SVK/1
Slovenia G/VAL/N/1/SVN/1 G/VAL/N/2/SVN/1
G/VAL/N/1SVN/2
Singapore G/VAL/N/1/SGP/1 G/VAL/N/2/SGP/1South Africa VAL/1/Add.15 + Corr.1             VAL/2/Rev.1/Add.13
+ Suppl.1-3
G/VAL/N/1/ZAF
Suriname G/VAL/N/1/SUR/1Switzerland VAL/1/Add.5 Not applicable
G/VAL/N/1/CHE/1
Trinidad and G/VAL/N/1/TTO/1 G/VAL/N/2/TTO/1  TobagoTurkey VAL/1/Add.29
G/VAL/N/1/TUR/1G/VAL/N/1/TUR/2
United States VAL/1/Add.1 +  Suppl.1-5 VAL/2/Rev.1/Add.1
G/VAL/N/1/USA/1
Zambia G/VAL/N/1/ZMB/1Zimbabwe VAL/1/Add.23 VAL/2/Rev.2/Add.5
G/VAL/N/1/ZWE/1
__________