Customs Valuation Workshop for Custom Committee, Almaty,

Kazakhstan26-29.3.2014

History of Customs ValuationAd valorem vs specific Specific - no determination of the customs valueExample – 1 car - duty 1000USD Ad valorem – VALUE of imported GOODS - % rule1947 GATT Article VII 1979 Tokyo round - Valuation based on the price

actually paid or payable for the imported goods; “transaction value”, providing a fair, uniform and neutral system for the valuation of goods for customs purposes, conforming to commercial realities.

1994 Article VII of GATT The WTO Agreement on Implementation of Article VII of GATT - Customs Valuation Agreement

Method 1 — Transaction valueMethod 2 — Transaction value of

identical goodsMethod 3 — Transaction value of similar

goodsMethod 4 — Deductive methodMethod 5 — Computed methodMethod 6 — Fall-back method

Uniformity CertaintyTransparency Consistency Neutral system for valuation of goods Based on transaction valuePrice, costs, fees, insurance, licenses and all other components that should be paid or payable by buyer are included in the

customs value. (outside the IM country)

Customs Blueprints - ObjectivesImplementation of national provisions based on

transaction value, in accordance with the WTO agreement.

Development of clear procedures to make customs valuation transparent, objective and verifiable.

Development of a specialized structure capable of applying the rules of determination of customs value based on the WTO agreement.

Empowerment of customs to perform efficient post-clearance controls in the field of customs valuation, based on risk analysis.

Development and implementation of a training system on customs valuation to make customs officers acquainted with WTO rules on valuation.

Customs Blueprints – Legal Basis

Legislation on customs valuation ensures customs valuation in accordance with WTO rules.

Legislation enables a customs declaration to be lodged when not all the elements of customs value are known and provides for rules to verify the value after release of the goods.

Customs Blueprints – Policies and Procedures

Procedures are in place for efficient post clearance controls in the field of customs valuation, based on risk analysis.

Procedures are in place for appeals. Exchange of information on customs value at

international level is always based on agreements signed in this respect and with assurance of data protection.

Complete and updated information on the legislation on customs valuation is made available to participants in international trade

Customs Blueprints – Organisational Structure, Personneland Training A personnel training system is in place for:– proper application of the legislation based on WTO rules,– qualified post-clearance audit,– treatment of appeals,– international cooperation in the field of customs valuation,– preparation of transparent information for economic operators on customs valuation. The training system ensures a consistent approach to

customs valuation throughout a country by way of: – instructions for customs officers issued at national level, - training with the participation of national law agencies.

Trade Facilitation – Valuation Removal of duplications and bureaucracy in

post clearance audits and valuation processes.

Publication of a wide range of specific information related to the requirements and procedures for clearing goods for import; rules for the classification and valuation of goods for customs purposes; rules of origin and other administration arrangements.

Trade Facilitation – ValuationConsistent decisions on valuation classification

and origin. Inconsistency in decisions have an impact on the duties to be paid and ultimately on the end price of the product. Operators can move to countries and locations with higher certainty, predictability and reliability, with an => impact on trade development. Wrong decisions may constitute a non-tariff barrier to trade. This may also give rise to corruption if traders resort to bribery in a bid to obtain better treatment for their goods.

Transaction valueThe price actually paid or payable is the total

payment made or to be made by the buyer to or for the benefit of the seller for the imported goods, and includes all payments made as a condition of sale of the imported goods by the buyer to the seller, or by the buyer to a third party to satisfy an obligation of the seller.