FREQUENTLY ASKED QUESTIONS (FAQ)

 

SECTION II
INTERNATIONAL RULES ON CUSTOMS VALUATION

 

Q5

Are there any rules for customs valuation that are accepted worldwide?

 

Q6

How soon is a WTO Member country required to implement the ACV?

 

Q7

Are there any other systems of customs valuation?

 

Q8

What is the essential difference between the BDV system of valuation and the valuation system under the ACV?

 

 

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Q5. Are there any rules for customs valuation that are accepted worldwide?

 

Ans: Customs value of imported goods has to be determined in accordance with the national laws of a country. However, in the case of a WTO Member country, its national laws on customs valuation have to be based on the following WTO instruments:

 

    Article VII of the General Agreement on Tariffs and Trade (GATT), 1994 (see Appendix I);

   The Agreement on Implementation of Article VII of the GATT, 1994 (Usually referred to as the Agreement on Customs Valuation or ACV for short - see Appendix II); and

    The Uruguay Round Ministerial Decision Regarding Cases where Customs Administrations have Reasons to Doubt the Truth or Accuracy of the Declared Value, which has been subsequently adopted as a Decision of the WTO Committee on Customs Valuation (see Appendix III).

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Q6. How soon is a WTO Member country required to implement the ACV?

 

Ans: Normally as soon as a country becomes a Member of the WTO, it is required to implement the ACV. However, developing country Members are allow­ed to delay application of the ACV for up to 5 years from the date on which they join the WTO.

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Q7. Are there any other systems of customs valuation?

 

Ans: Yes, the national laws for customs valuation in some countries still follow the Brussels Definition of Value (BDV) based on the 1953 Convention on the Valuation of Goods for Customs purposes.

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Q8. What is the essential difference between the BDV system of valuation and the valuation system under the ACV?

 

Ans: The former is based on the notional concept of an ideal or normal value that a good would fetch in the Open market whereas the latter is based on a positive concept relying more on the actual price paid or payable for the goods being valued.

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