WORLD TRADE
ORGANIZATIONG/VAL/W/118
10 January 2003
(03-0142)
Committee on Customs Valuation Original:  English
COMMUNICATION FROM SRI LANKA CONCERNING PARAGRAPH 2 OF
ANNEX III OF THE AGREEMENT ON IMPLEMENTATION
OF ARTICLE VII OF THE GENERAL AGREEMENT
ON TARIFFS AND TRADE 1994
The following communication, dated 7 January 2003, has been received from the
Permanent Mission of Sri Lanka.
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I refer to the document G/VAL/52 by which Sri Lanka was granted an extension until
28 February 2003 to implement the WTO Agreement on Customs Valuation. In this regard, I am
pleased to inform the Committee on Customs Valuation that the amendments to the Customs
Ordinance for the implementation for WTO Customs Va luation Systems received the approval of the
Parliament on 11 December 2002 and that the Government of Sri Lanka would be implementing the
WTO Customs Valuation Agreement from 1 January 2003.
The Government of Sri Lanka further wishes to inform that in terms of the Paragraph 2 of the
Annex III of the Agreement on Customs Valuation, Sri Lanka will continue to apply minimum values
on used motor vehicles and motor cycles falling under the following tariff headings:
87.01 - Tractors
87.02 - Motor vehicles for transport of 10 or more persons.87.03 - Motor cars and other motor vehicles principally designed for transport of persons (other than
those of tariff heading 87.02) including Station Wagons and Racing cars.
87.04 - Motor vehicles for the transport of goods.
87.11 - Motor cycles.
The unregulated import of used motor vehicles and used motor cycles, cause health hazards
and environmental pollution. Hence, in addition to the introduction of restrictions on the age of the
vehicles that are imported, application of minimum values has also become essential as a regulatory
measure.  Furthermore, import of used motor vehicles and motor-cycles are often subject to
under-invoicing as there are no established trade practices, guidelines or price verification systems inthe exporting country.  Therefore, application of a minimum value has become necessary.
Taking into consideration that Sri Lanka does not apply minimum values for any other
products and applying of minimum value will only be limited to used motor vehicles and used motor
cycles under H.S. heading 87.01, 87.02, 87.03, 87.04 and 87.11, Sri Lanka proposes to continue toapply minimum values for a period of three years from 1 March 2003.
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