RESTRICTEDWORLD TRADE
ORGANIZATIONG/VAL/W/24
5 May 1998
(98-1651)
Committee on Customs Valuation Original:  English/
French/
Spanish
ARTICLE 20.3 OF THE AGREEMENT ON CUSTOMS VALUATION
TECHNICAL ASSISTANCE ACTIVITIES
Responses to the Request for Information
In October 1997, the Committee agreed to actively engage in discussing technical assistance
needs and activities aimed at implementation of the Agreement in a more systematic and formal
manner.  One of the aims of such discussions is to contribute towards streamlining and tailoringtechnical assistance activities to the particular needs of each developing country Member.  A point
that emerged from the discussions was that each developing country Member was in a unique
situation regarding implementation of the Agreement and, therefore, has its own technical assistance
needs.  In this context, it was agreed that the Chairman should circulate a "request for information" to
Members.  In this way, the Committee could better understand the particular needs of each developingcountry Member and be in a more informed position to contribute towards technical assistance efforts
aimed at facilitating and assisting implementation of the Agreement for those developing country
Members who would desire such assistance.  This document was circulated in G/VAL/11 and is
included as an Annex to this document.  Members could respond, on a voluntary basis, to any or all of
the questions posed in the document.
As of 20 April 1998, the Chairman has received 11 responses to his request.  Following the
desire expressed by Members at an informal meeting of the Committee on 6 March 1998, the
Secretariat is circulating the substantive portions of these responses for the information of Members.
The information provided in these responses may also be of use in the formulation of Member-to-
Member, bilateral and/or regional technical assistance activities.  It should be noted that the Chairman
did not assign a deadline for responding to his request.  On the contrary, he urges all Members to
continue to use this opportunity to explain their particular implementation situation and their specifictechnical assistance needs by responding to the request in as timely a manner as possible.G/VAL/W/24
Page 2
BOLIVIA
1. At what stage is Bolivia in the process?
Bolivia is at the "final project revision" stage, which will determine the manner in which the
National Customs Service is to carry out the verification process, taking into account the following
criteria:
- Plan for establishment of the valuation department;- modification of the goods clearance procedures;
- development of the verification procedure to be applied in the operational customs
houses;
- development of checking procedures for the value department.
2. Whether Bolivia has put into place the WCO programme for implementation and at
what stages are the various task forces in their work?
The WCO timetable is not yet in effect in Bolivia.  However, consideration is being given to
its application, in the light of fulfilment of point 1.
3. What are the particular technical assistance needs (legal and legislative, training,
computer software/hardware, documentation, etc.)?
Human resource training in respect of:
- Introduction to the GATT valuation method;- practical implementation seminars;
- development of a price reference system;
- supplier reference prices;
- vehicle data bank;
- check-lists for import operations;- data on disputes that have been resolved.
4. Which type of technical expert would Bolivia most benefit from?
- Customs expert in the application of the Valuation Code adapted to regional and local
realities;
- computer expert for evaluation of the data system.G/VAL/W/24
Page 3
5. Whether Bolivia has received in the past any technical assistance to facilitate
implementation of the Agreement;  what kind of a ssistance;   whether it was beneficial;  why or
why not?
Various seminars have been held within the framework of the European Cooperation
Convention signed by the Andean Community in 1995.
These seminars have provided basic training for public officials, although constant staff
rotation prevents the corresponding feedback.
Similarly, the non-application of the Agreement in Bolivia is a factor which reduces the
expected benefits.
COLOMBIA
1. Implementation of the WTO Ag reement on Customs Valuation
At what stage is Colombia in the process?
Pursuant to Decision 326 of the Commission of the Cartagena Agreement of the Andean
Community, Colombia began implementing the GATT 1947 Agreement on Customs Valuation on
1 January 1994.  The transition to the GATT 1994 Agreement on Customs Valuation was effected by
means of Decision 378 of 1995 by the Commission of the Cartagena Agreement.  Notwithstanding the
above, Colombia is making use of the "Special and Differential Treatment" provided for in Part III of
the Agreement.
2. WCO programme for implementation of the Agreement on Customs Valuation.
Colombia has not benefited from that programme.
3. Technical assistance needs
3.1 System of customs valuation information - data bank
A customs valuation information system - data bank is being established and brought into
operation at the central, regional and local levels of the Colombian customs administration.  The
system is to be composed of various modules:  international prices;  Andean value declaration form
which includes the factual elements of the negotiation;  information on the main importers in
Colombia;  list of offenders;  legal authority module;  data on customs valuation cases resolved.
A number of major economic and logistical difficulties are currently placing the achievement
of this objective at risk.  This makes it essential to receive assistance in terms of computer hardware,
software and experts as soon as possible.
3.2 Colombia wishes to learn of international experience concerning ways of resolving the
following difficulties:
(i) Mechanisms for ascertaining whether a sale between related persons has influenced
price determination;
(ii) mechanisms for detecting, preventing and combating practices such as under-
invoicing, undervaluation, false documentation and concealment of information;G/VAL/W/24
Page 4
(iii) minimum requirements applicable to commercial invoices from abroad;
(iv) mechanisms used by the customs administration for effective verification of
payments by the buyer to the seller or to a third-party beneficiary of the latter.
3.3. It is wished to learn of experience regarding application of more complex adjustments, such
as those relating to negotiations involving prices subject to revision, proceeds of subsequent resale
accruing to the original seller - especially from associated firms - royalties and licence fees, and"considerations".
FIJI
With the help of our New Zealand counterparts we set up the legal framework to the
Valuation concept in conformity with the provis ions of the WTO Agreement on Customs Valuation.
This was enacted in Parliament in November 1996 and subsequently became operative on
1 January 1997.
Being mindful of our obligations under the Agreement, the Interpretative Notes have been
incorporated in the Customs Act with the instruments of the WTO Valuation Committee in the
Regulations.  I may also add that the Legislation and the Regulatory Framework adopted, are dictated
by the existing legislative practice in Fiji.
There are also changes in our supplementary Customs Legislation to take care of a number of
other general requirements required under the Agreement which include inter alia:
- Article 9.1
- Article 11
- Article 13
In anticipation of these changes we had to reorganize our organizational structure taking into
consideration our aim to develop control procedures for the administration of Valuation concept.
As can be noted, that even with our limited resources (financial and technical) we took the
initiative to develop the legal framework to the GATT Valuation system.  Further, we also took the
initiatives in undertaking a number of administrative activities to assist and enhance application of the
Agreement.
However, with all these mechanisms in place, from the experience gained in the first ten
months, there is still a lot of work that needs to be undertaken to help officers enhance their
understanding of the concept.  With this in mind, we have identified the following needs:
Technical Assistance on Training
Staff training is an extremely important facet in the implementation of the Agreement
(a) Training of Trainers
This is to help officers responsible for training at national level to develop the skill enabling
them to conduct future training courses using the techniques and methods widely recognized
in the organizational circle.G/VAL/W/24
Page 5
(b) General Staff Training
The training course would also assist the officers interpret and apply the Agreement on a
practical basis.
Technical Assistance on Reviewing Customs Procedures
There is a need to review our Customs procedures to improve the level of trade facilitation
and at the same time ensure the maximum level of  compliance in relation to the application of the
Agreement
Fiji is keen to develop exp ertise in the following areas
- The Application of Risks Management Princi ples in the application of the Agreement
- Post clearance audit;  and
- The use of automated systems
Given the limited technical expertise available in the country, coupled with the steady
increase in the volume and speed of international tr ade, it is now our priority to review our working
structure with the objective to educate our officers to have a better understanding of the Agreement
and to properly implement the system.
EGYPT
Question:  At what stage is Egypt in the process?
Egypt is at the stage of preparation for the implementation of the Customs Valuation
Agreement, training courses are being held to explain the provisions of the Agreement and the
different methods of valuation for customs purposes.
Question:  Whether Egypt has put into place the WCO programme for implementation and at
what stages are the variou s task forces in their work ?
Egypt has put in place the WTO programme for the implementation of the Agreement,
trainers have been provided to explain the Agreements, as well as courses which have been held for
valuators.
Question:  Which are Egypt's particular technical assistance needs (legal and legislative,
training, computer software/hardware, documentation, etc.)?
The Technical Assistance needs for Egypt are:
- Legal and legislative
- Documentation and computer software/hardware
Question:  Which type of technical expert Egypt would most benefit from, etc.?
Egypt would most benefit from "documentation and legal needs".G/VAL/W/24
Page 6
Question:  Whether Egypt has received in the past any technical assistance to facilitate
implementation of the Agreement?
Question:  What kind of assistance?
Egypt has received technical assistance in the form of training courses of valuation for
customs purposes in 1992 and 1996.
Question:  Whether it was beneficial?
Those courses have been beneficial to Egypt.
KENYA
The Government has requested and been granted a 5-year delay in the implementation of the
WTO Valuation Code.
The Government has in the meantime established a Committee and a "core group" to look
into the legislative matters on valuation with a view to making the necessary amendments to the
Customs Act and Regulation.
The Kenyan Government anticipates that it will be in a position to implement the WTO
Customs Valuation Code by the year 2000.
With regard to technical assistance, Kenya invites offers to "train the trainers" who will in
turn train the officials assigned to implement the WTO Customs Valuation Code.
Furthermore, the Kenyan Government would welcome assistance in the field of
computerization that will enable the customs administ ration to collect data that is necessary to launch
the implementation of the WTO Valuation system.
LESOTHO
- Lesotho is now implementing the Agreement on Customs Valuation
- WCO programme for the implementation is in place- We need technical assistance in training and computer software/hardware
- A computer expert would be more preferable
- Lesotho has not received any technical assistance to facilitate implementation of the
Agreement.  Any technical assistance available will be highly appreciated.
MALTA1. At what stage is Malta in the process ?
The Maltese Customs is in the process of preparing the necessary legislation (which is in the
drafting stage), and identifying the training and technical assistance required for the transition to the
WTO System of Customs Valuation.  A group of officers is presently studying the principles of the
Agreement with a view to familiarising themselves with the WTO system and being in a position toinform, through scheduled training, customs officers that are to be involved in Valuation.G/VAL/W/24
Page 7
2. Whether Malta has put into place the WC O programme for implementation and at
what stages are the variou s task forces in their work ?
The Maltese Customs have not yet put into place the WCO programme for implementation.
The only task force utilized within the said prog ramme was a Joint/Enforcement Task Force Mission
in February 1997.
3. Which are Malta's particular technical assistance needs (legal and legislative, training,
computer software/hardware, documentation, etc.) ?
The particular needs of the Maltese Customs regarding the WTO system are as follows:
- training in post clearance auditing;
- assistance in the methods of valuation on the importation of used motor vehicles;
- information on the customs value on carrier media, copyrights etc.;
- legal assistance in harmonizing the existing legislation with that required for the
WTO system;
- appeals procedures and methods used in cases of non-compliance;
- funding for attending technical committees in countries which have already
implemented the WTO system;
- a valuation database.
4. Which type of technical expert Malta would most benefit from, etc. ?
The Department may benefit from:
- a technical expert who can go deeply into the details of the Agreement;  identify,
preferably through experience, areas to be focused upon by the valuation officials;
assist in the introduction of post clearance audit procedures;
- an enforcement expert specializing in compliance with the WTO valuation system.
Has Malta received in the past any technica l assistance to facilitate implementation of
the Agreement?
Yes, Malta has received some assistance from the WCO.
What kind of assistance?
In February 1997, the WCO funded a Joint Valuation/Enforcement Task Force Mission.
WCO officials visited Malta and conducted a week's programme for Senior members of the Customs
Department.  A joint report was drawn up for further study.G/VAL/W/24
Page 8
Was it beneficial?
Yes, it was beneficial.
Why or why not?
The senior members of the Customs Department  were given a broad overview of the WTO
Valuation Agreement; the WCO officials understood better the Maltese environment through
discussions held at the Customs Head Office and the various sections;  the Maltese side were
sensitized to the changes that had to be introduced  into the Maltese Legislation in view of the new
System;  the joint report provided a basis for the action to be taken for the adoption of the Agreement.
MOROCCO
1. At what stage is the country Member in the process?
The draft legislation and regulations and the customs value declaration form are being
finalized.
2. Have country Members put in place the WCO programme for implementation of the
GATT valuation and at what stages are the various task forces in their work?
On the organizational level, the administration already has two specialized structures, one
responsible for verifying the declared value, the other for a posteriori  control;  the training of
administration officials is organized at three programme levels:
- Training of trainers within the framework of technical assistance;
- preliminary instruction and training by national trainers for other officials in the
customs valuation rules provided for in the WTO Agreement;
- familiarizing economic operators with the WTO Agreement on Customs Valuation;
particular emphasis will be placed on studying the customs value declaration which
such operators are required to produce.
3. What are the particular technical assistance needs?
Morocco would like to receive assistance in the areas of training, software and
documentation.
4. What type of technical expert would they most benefit from?
It would be desirable for experts appointed in the future to be able to concentrate on the
practical aspects of the Agreement on Customs Valuation, in view of the fact that the seminars on the
subject have been concerned essentially with the theoretical aspects of the Agreement.
With regard to the other points raised, it is pointed out that Morocco benefited from two
seminars on customs valuation organized by WCO and French experts.  The seminars were veryuseful to the officials who participated, by enabling them to study the valuation rules contained in the
Agreement and to take fuller advantage of the courses provided, using the documentation made
available to them.
The Moroccan customs administration would like to receive technical assistance in the
following fields:G/VAL/W/24
Page 9
- Understanding of the provisions of the Agreement on Customs Valuation;
- introduction of an appropriate legislative and regulatory framework facilitating
judicious implementation of the provisions of the Agreement at all stages (valuation,
controls, etc.);
- establishment of a customs valuation database;- use of information technology tools for the management of on-the-spot and a
posteriori  controls in respect of valuation;
- introduction of an effective cooperation framework for improved circulation of
information relating to customs value between customs administrations, with a viewto combating, smuggling and commercial fraud.
NIGERIA
We have been directed from our Headquarters to submit to you as requested Nigeria's needs
on technical assistance in the following areas:
(a) Training the Trainers (Valuation)(b) Specialised Training(c) Manual Journals on WTO Valuation(d) Development of TV workplan (item 3 on action plan for implementation of the  -
Agreement WCO document)
(e) Computer software and hardware
In addition, the Nigerian Customs Service intends to start training its staff by April 1998 and,
as such, the assistance is imperative between now and March 1998.
PHILIPPINESAt what stage is the Philippines in the process of implementing the Agreement ?
1. A law, Republic Act No. 8181, was passed legislating the shift in customs valuation not later
than 1 January 2000.
2. Philippine Customs created a GATT Valuation Implementation Team chaired by the
Commissioner of Customs consisting of:
2.1 A steering Committee headed by the Deputy Commissioner for Assessment and
Operations and other senior officials of the Bureau which acts as the Team Advisor;
and
2.2 Project Implementation Team composed of a Technical Working Group (Middle-
level BOC officials) and a Project Consultant Team.G/VAL/W/24
Page 10
3. The Project Implementation Team had already conduced a series of meetings concerning the
Team's organizational set-up vis-à-vis the Steering Committee, the logistics and funding
requirements, the program of action of the Technical Working Group which was subdivided
into five sections, namely, the Legislation and Organization, Assessment, Risk Management,
Management Information System, and Training sub-groups, the program's timetable over the
next few months, and the problems, needs, and requirement as perceived along the way.
WCO Programme
The implementation Team's workplan has been inspired among others by several focus papers
on Implementation strategy provided by APEC which in the main takes into account the general
principles governing the WCO programme on implementation strategy.
Technical Assistance Needed
1. Additional legislation will be necessary to pr ovide for a legal basis in the restructuring of
customs organization and establishment of a po st-clearance control system.  An Expert with
the necessary collective and comparative experience of other WTO users on the drafting of
such legislation as well as implementing administrative regulations will be needed.
2. Post Clearance Control calls for empowering the customs administration with authority to
investigate importers' corporate records and the like.  There is need to lay down the predicate
to justify the grant of that power to customs which will surely be met with strong oppositionfrom the private sector.  Unless we can show its necessity, as well as the safety nets against
abuse, the grant of such power would be diffic ult to obtain from our Congress.  As such, a
Technical expert on the operations of post-clearance audit with the end in view of addressing
questions or doubts against customs' audit powers, would be needed in convincing not only
the Philippine legislature but the concerned sectors as well on the pivotal importance of suchpower.
3. Further training (theoretical and hands-on) of the members of the Implementation Team on
WTO Valuation, especially on post clearance system.  It is envisioned that the finalization of
the program of action of the individual subgroups will be hastened with a continuing technical
education on this new valuation system.  In turn, such further training will enhance thedevelopment of local expertise that can be harnessed in the timely functional integration of
the concerned customs complement as well as that of the transacting public, with the new
valuation system.
4. Training of customs personnel, the import sect or, and other government agencies and other
interest groups on the technical nuances of WTO valuation as a new system including the useof computer-based technology in the assessm ent and enforcement operations, would require
the development of an effective training strategy given the remaining time-frame between
now and the year 2000.  Again, a technical expert on this aspect would certainly be a great
help to assist the core group of trainers that will come from the Implementation Team.
5. Other technical assistance requirements as shall be identified as the work of the Team
progresses.  The ideal is for a resident consultant or a core of consultants on a per
specialization basis be stationed in the country subject to such scheduling system as may befeasible.  This matter needs immediate attention .G/VAL/W/24
Page 11
Technical Assistance Received
1. In December 1997, a team of APEC-sponsored experts from the US and Australia came over
on a need identifying mission.  For five (5) days, the team met and discussed with the
Technical Working Group.  It was advised on the existing customs operations and procedure
on valuation.  It was presented with a draft model of the assessment flow chart using the TV
method, was informed of existing legislation on WTO Valuation, as well as the myriad ofproblems that the Implementation Team had so far identified in connection with the
development of the program of implementation as well as the projected implementation itself
- legislation, reorganization, technical traini ng on WTO and Post clearance control, public
information dissemination, etc.
2. The 5-day visit has greatly helped the Implementation Team in acquiring a better or higher
level of understanding of the WTO system in terms of its theory and principles, as well as its
actual implementation based on US and Australian experience.  It is anticipated that the tripreport of the Team of experts from US and Australia will serve as a valuable input in the
formulation of a specific program of technical assistance for the Philippine customs
administration.
3. The Philippines was a participant in various regional seminars as enumerated in an "Inventory
of Technical Assistance" prepared by the Secretariat for the Committee on CustomsValuation.  These various regional seminars were found useful to the Philippine participants.
However, we feel that these training programs should  be supplemented by a country-specific
assistance package that could range from the standard WTO Valuation programs to specific
courses on WTO Valuation related subjects such as strengthening of risk management,
establishment of post-clearance control system, audit planning and approach, to a specialsubject on implementation strategy and training, integration techniques and public
information dissemination scheme.  This country-specific package requires immediate
attention .
TUNISIA
1. Process of implementation of the Agreement
Tunisia is carrying out a general revision of the Customs Code, and the new definition of
customs value will be included in the revised code.
2. Particular technical assistance needs
- In the legal field;  provision of up-to-date documentation incorporating for example
the interpretative notes on valuation rules illustrated by practical examples orjurisprudence, to facilitate implementation of those rules.
- In the field of training:  organization, for the benefit of customs officials, of seminars
and practical training courses to familiarize them more closely with the new valuation
concept as defined by the WTO Agreement.
- With regard to computer equipment:  provision of appropriate hardware for the
establishment of a "value" database.
- As regards technical experts:  it would be helpful to be able to call on valuation
experts with customs training.G/VAL/W/24
Page 12
3. Technical assistance received for implementation of the Agreement
A North African seminar held in Tunis in 1991 served to present the WCO Convention on the
Valuation of Goods for Customs Purposes.
The seminar was beneficial for promoting the WCO Convention among countries that had not
yet joined the Organization.G/VAL/W/24
Page 13
ANNEX
WORLD TRADE
ORGANIZATIONG/VAL/W/11
29 October 1997
(97-4732)
Committee on Customs Valuation
ARTICLE 20.3 OF THE AGREEMENT ON CUSTOMS VALUATION
TECHNICAL ASSISTANCE ACTIVITIES
Chairman's Request for Information concerning the Implementation of the Agreement
The Committee on Customs Valuation has held three informal meetings to discuss a proposal
by the United States for an increased role for the Committee in technical assistance activities designed
to facilitate and accelerate implementation to the WTO Agreement on Customs Valuation.  These
meetings have primarily focused on improving awareness and understanding of the activities already
carried out or being carried out by international organizations and Members either bilaterally orregionally.  They have additionally allowed an airing of views regarding related structural, procedural
and substantive issues.
Following these consultations, the Committee has agreed to engage in a more active role
initially by discussing technical assistance needs and activities aimed at implementation of the
Agreement in a more systematic and formal manner.  One of the aims of such discussions would be tostreamline and tailor technical assistance activities to the particular needs of each developing country
Member.  Indeed, one of the points that emerged from the discussions in the informal meetings was
the fact that each developing country Member was in a unique situation regarding implementation of
the Agreement and, therefore, had its own particular technical assistance needs.
It is in this context, that the Committee would value information from developing country
Members on their particular situation regarding implementation of the WTO Agreement on Customs
Valuation, such as:
- at what stage they are in the process;
- whether they have put into place the WCO programme for implementation and at what stages
are the various task forces in their work;
- which are their particular technical assistance needs (legal and legislative, training, computer
software/hardware, documentation, etc.);
- which type of technical expert they would most benefit from, etc.G/VAL/W/24
Page 14
Other information that would be valuable to the Committee is:
- whether the reporting Member has received in the past any technical assistance to facilitate
implementation of the Agreement;
- what kind of assistance;
- whether it was beneficial;
- and why or why not.
This information is requested so that the Committee can better understand the particular needs
of each developing country Member and be in a more informed position to contribute towards
technical assistance efforts aimed at facilitating and assisting implementation of the Agreement for
those developing country Members who desire such assistance.  Members who would like further
information regarding the Chairman's request for information may contact Janet Chakarian-Renouf at
the Market Access Division of the WTO Secretariat (Tel. no. 739-5549).  A review of replies will be
conducted at an informal meeting of the Committee devoted to discussing technical assistance in thefirst quarter 1998.
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