 WORLD TRADE  
ORGANIZATION  G/VAL/W/136 
21 October 2004  
 
(04-4414) 
Committee on Customs Valuation  
   
TENTH ANNUAL REVIEW OF THE IMPLEMENTATION AND 
OPERATION OF THE AGREEM ENT 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 Se cretariat in preparation for the tenth annual 
review of the implementation and operation of the Agreement on Implem entation of Article VII of the 
General Agreement on Tariffs and Trade 1994 (the Ag reement), to be conducted at the forthcoming 
meeting on 25 October 2004.  As indicated in the te xt below, this document will have to be updated in 
light of the discussion at that meeting in order to give a full picture of the developments in the Committee 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 ac count the objectives thereof". 
  The main objectives of the Agr eement are those listed  in the General Introductory Commentary.  
The annual review of the Committee should cove r the implementation and ope ration of the Agreement 
in the light of its objectives and specific obligations. 
 G/VAL/W/136 
Page 2  
 
 The contents of this document are as follows:   Page
 
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND 
OBSERVER STATUS..............................................................................................................3  
(a) WTO Members (148).............................................................................................................. ....3 
(b) Delayed Application and Reservations.......................................................................................4  
(i) Article 20.1 (delayed application of the provisions of the Agreement).......................................4  
(ii) Article 20.2 (delayed application of the computed value method) (7)........................................4  
(iii) Annex III, paragraph 1 (extension of the five-year delay period)...............................................4  
(iv) Annex III, paragraph 2 (reservation concerning minimum values) (2) ......................................4  
(v) Annex III, paragraph 3 (reservation concerni ng reversal of sequential order of 
Articles 5 and 6) (53) ......................................................................................................... .........4  
(vi) Annex III, paragraph 4 (reservation to apply Ar ticle 5.2 whether or not the importer 
so requests) (50).............................................................................................................. ............5  
(c) Observer Govern ments (29)...................................................................................................... ..5 
(d) Observer International Organizations (6) ...................................................................................5  
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION......................5  
III. MEETINGS OF THE COMMITTEE ....................................................................................6  
IV. NATIONAL LEGISLATION PRESENTED .........................................................................6  
(a) Texts of national legislation.................................................................................................. ......6  
(b) Checklist of issues ............................................................................................................ ..........6  
(c) Examination of national legislation ............................................................................................ 6 
(d) Information on the application of the Committee Decisions ......................................................6  
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OF THE 
TEXT OF THE AGREEMENT ..............................................................................................7  
VI. OTHER DECISIONS TAKEN BY THE COMMITTEE .....................................................7  
VII. TECHNICAL ASSISTANCE ..................................................................................................7  
VIII.  REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION ...................................................................................................................... ......7
 
IX. CONSULTATION  AND  DISPUTE  SETTLEMENT ............................................................7  
X. ANNUAL REPORT TO THE COUNCIL  FOR TRADE IN GOODS.................................8  
  G/VAL/W/136 
 Page 3 
 
 
I. MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER 
STATUS 
(a) WTO Members (148) 
Albania Gabon Nepal 
Angola The Gambia Netherlands 
Antigua and Barbuda Georgia New Zealand Argentina Germany Nicaragua 
Armenia Ghana Niger 
Australia Greece Nigeria Austria Grenada Norway 
Bahrain Guatemala Oman 
Bangladesh Guinea Bissau Pakistan Barbados Guinea, Rep. of Papua New Guinea 
Belgium Guyana Paraguay 
Belize Haiti Peru Benin Honduras Philippines 
Bolivia Hong Kong, China Poland 
Botswana Hungary Portugal 
Brazil Iceland Qatar 
Brunei Darussalam India Romania Bulgaria Indonesia Rwanda 
Burkina Faso Ireland Saint Kitts and Nevis 
Burundi Israel Saint Lucia Cambodia Italy Saint Vincent & Grenadine 
Cameroon Jamaica Senegal 
Canada Central African Republic Japan 
Jordan Sierra Leone 
Singapore 
Chad Kenya Slovak Republic 
Chile Korea Slovenia China Kuwait Solomon Islands 
Colombia Kyrgyz Republic South Africa 
Congo Latvia Spain Congo, Democratic Rep. of the  Lesotho Sri Lanka 
Costa Rica Liechtenstein Suriname 
Côte d'Ivoire Lithuania Swaziland Croatia Luxembourg Sweden 
Cuba Macao, China Switzerland 
Cyprus Madagascar Chinese Taipei 
Czech Republic Malawi Tanzania 
Denmark Malaysia Thailand Djibouti Maldives Togo 
Dominica Mali Trinidad and Tobago 
Dominican Republic Malta Tunisia Ecuador Mauritania Turkey 
Egypt Mauritius Uganda 
El Salvador Mexico United Arab Emirates Estonia Moldova United Kingdom 
European Community Mongolia United States 
Fiji Morocco Uruguay Finland Mozambique Venezuela, The Bolivarian Rep. of 
Former Yugoslav Rep. of Macedonia Myanmar Zambia 
France Namibia Zimbabwe    G/VAL/W/136 
Page 4  
 
(b) Delayed Application and Reservations 
This table reflects the situation with respect to special and differential treatment provisions 
available for developing country Members as at  14 October 2004.  These provisions have been 
invoked as follows:  (i) Article 20.1 (delayed application of the provisions of the Agreement)  
No Member maintains this special and differential treatment provision. 
(ii) Article 20.2 (delayed application of the computed value method) (7) 
Bolivia 
Guatemala 
Haiti Mauritania 
 Myanmar 
 Sri Lanka 
United Arab Emirates 
 
(iii) Annex III, paragraph 1 (extension of the five-year delay period)  
1. None. 
(iv) Annex III, paragraph 2 (reservation concerning minimum values)
1 (2)  
Guatemala (21/11/02;  21/05/03;  and 21/11/04) 
Sri Lanka (28/02/05) 
 
(v) Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5 
and 6) (53) 
Argentina2 Guatemala Niger 
Bahrain Guyana Pakistan 
Bangladesh Haiti Panama Benin Honduras Peru
2 
Brazil2 India2 Philippines 
Brunei Darussalam Indonesia Senegal 
Burkina Faso Israel Sri Lanka 
Cameroon Jamaica Thailand Chile Kenya Togo Colombia Madagascar Tunisia Costa Rica Maldives Turkey
2 
Côte d'Ivoire Malawi2 Uganda 
Djibouti Malaysia United Arab Emirates 
Dominican Republic Mali Uruguay Ecuador Mexico
2 Venezuela, The  
Egypt Morocco2   Bolivaran Rep. of   
El Salvador Myanmar Zambia 
Gabon Nicaragua Zimbabwe2 
   
 
                                                      
1 This paragraph does not include those Members which have been granted reservations under the 
Article IX waiver provisions of the WTO Agreement. 
2 These Members maintain in the WTO the special an d differential treatment provisions invoked under 
the Tokyo Round Agreement th rough Decision WT/L/38.  G/VAL/W/136 
 Page 5 
 
 
(vi) Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so 
requests) (50) 
Argentina2 Ecuador Maldives Thailand 
Bahrain Egypt Malaysia Togo Bangladesh El Salvador Mali Tunisia 
Benin Gabon Mexico
2 Turkey2 
Brazil2 Guatemala Morocco2 Uruguay 
Brunei Darussalam Guyana Myanmar Venezuela, The  Burkina Faso Haiti Nicaragua   Bolivaran Rep. of Cameroon Honduras Niger Zambia 
Chile India
2 Nigeria Zimbabwe2 
Colombia Indonesia Pakistan  Costa Rica Israel Peru
2  
Côte d'Ivoire Jamaica Philippines  Djibouti Kenya Senegal  
Dominican Republic Madagascar Sri Lanka  
     (c) Observer Governments (29) 
Algeria Libya 
Andorra Russia n Federation 
Azerbaijan Samoa 
Bahamas Sao Tome and Principe Belarus Saudi Arabia Bhutan Serbia & Montenegro Bosnia and Herzegovina Seychelles 
Cape Verde Sudan 
Equatorial Guinea Tajikistan Ethiopia Tonga Holy See Ukraine Kazakstan Uzbekistan Laos Vanuatu 
Lebanon Vietnam 
 Yemen  (d) Observer International Organizations (6)
3 
 World Customs Organization  UNCTAD  IADB 
 I M F      A C P    W o r l d  B a n k  
 
II. OFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION 
 Chairman (elected in May 2003)  Mr. Ivan Lee (Hong Kong, China) 
 Chairman (elected in October 2004 ) Mr Robin Twyman(United Kingdom) 
 
 
                                                      
3 These 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/136 
Page 6  
 
III. MEETINGS OF THE COMMITTEE 
 During the reporting period, the Committee has held [two] formal meetings.  The meeting on 
8 March (G/VAL/M/37) was chaired by Mr. Ivan Lee (Hong Kong, China);  [and the meeting on 
25 October (G/VAL/M/38 – to be issued) was chai red by Mr. Robin Twyman (United Kingdom)].  
 IV. NATIONAL LEGISLATION PRESENTED 
(a) 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 Agreem ent and in the administration of such laws and 
regulations.  At its fi rst meeting, on 12 May 1995, the Comm ittee agreed on procedures for the 
notification of national legislation (G/V AL/M/1, paragraphs 29-35, 71 and 72). 
  During the reporting period, the following co mmunications and texts ha ve been submitted: 
   Burkina Faso (G/VAL/N/1/BFA/1/Rev.1) 
  Chile (G/VAL/N/1/CHL/1) 
  China( G/VAL/N/1/CHN/4)   Mexico (G/VAL/N/1/MEX/1)   Paraguay( G/VAL/N/1/PRY/1)   Peru (G/VAL/N/1/PER/2)    
(b) Checklist of issues 
 At its first meeting, on 12 May 1995, the Commit tee agreed on procedures for the submission of 
a checklist of issues (G/VAL/M/1, pa ragraphs 36-39).  The checklist of issues is contained in G/VAL/5.  
  During the reporting period, the followi ng communications have been submitted: 
 
  Mexico (G/VAL/N/2/MEX/1and Corr.1)   Philippines (G/VAL/N/2/PHI/1)   Tanzania (G/VAL/N/2/TZA/2)   Thailand (G/VAL/N/2/THA/1)  
(c) Examination of national legislation 
At its meeting of 8 March 2004
, the Committee pursued its examination of various 
communications and impl ementing legislations.  The Committee agreed to conclude the examination of 
the legislation of Chile.  It agreed to revert to the legislation of Armenia, Burkina Faso, Peru and 
Thailand, and to amendments to China's and I ndia's legislation at the next meeting.   
 
 [At the 25 October 2004  meeting, the Committee concluded the examination of the legislations 
of ...;  the examination of the legislation of … was still underway.  To be updated.]. 
 (d) 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 paragrap h 2 of the Decision on the Valuation of Carrier 
Media Bearing Software for Data Processing Equipm ent (G/VAL/5), made available by Members, was 
summarized in documents  G/VAL/W/5/Rev15.   
   G/VAL/W/136 
 Page 7 
 
 
V. AMENDMENTS, INTERPRETATIONS AND RECTIFICATIONS OF THE TEXT OF 
THE AGREEMENT 
 At its first meeting on 12 May 1995, the Comm ittee adopted the Deci sions relating to the 
interpretation of the Agreement, which had prev iously been adopted by the Tokyo Round Committee 
(G/VAL/M/1, paragraphs 66-67).  The decisions we re reproduced in document G/VAL/5.  No new 
decisions relating to the interpre tation of the Agreement were a dopted during the reporting period. 
 
VI. OTHER DECISIONS TAKEN BY THE COMMITTEE 
 At its first meeting on 12 May 1995, the Commit tee adopted other Decisions which had been 
previously adopted by the Tokyo Round Committee.  These Decisions are reproduced in document 
G/VAL/5.  The Committee also adop ted Decisions that were referred by the Ministers at Marrakesh to 
the Committee.  The texts of the decisions are contained in document G/VAL/1.During the reporting 
period there was no Decisi on in the Committee.  
    VII. TECHNICAL ASSISTANCE 
 The committee took note that the WTO Committee on Trade and Development had adopted 
the 2004 technical assistance plan (as in WT/COMTD/W /119/rev.3. and also  noted the need to avoid 
two parallel and repetitive exercises. However members were encouraged to continue to inform the 
Committee of the various technical assistance activiti es carried out by them on bilateral and other 
fronts. 
VIII.  REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION 
 At the 8 March meeting, the representative of the World Customs Organization(WCO) 
presented a report which focussed primarily on th e current work of the WCO Technical Committee 
and the Valuation Technical Assistance Programme of the WCO Secretariat, as the 18
th Session of the 
Technical Committee on Customs Valuation of the World Customs Organization (WCO) was 
scheduled to commence on Monday 29 March 2004 and  the report on its 17th Session was published 
together with the minutes of the previous meeting.   The Technical Committee on Customs Valu ation has submitted  to the Committee on 
Customs Valuation Guidelines on the Development and use of a National Valuation Database as a 
Risk Assessment Tool, as a complement to its responses submitted in May 2003(G/VAL/54) to the 
terms of reference made to it in document G/VAL /51 regarding concerns on the accuracy of the 
declared value. These  guidelines have been circulated in document G/VAL/54/Suppl.1. 
  
 IX. CONSULTATION  AND  DISPUTE  SETTLEMENT 
 During the period under consideration, consu ltations requested by Guatemala with Mexico 
pursuant to Article 4 of the Understanding on Ru les and Procedures Governing the Settlement of 
Disputes (DSU), Article XXIII of the General Agreement on Tariffs and Trade 1994 (GATT 1994), 
Article 19 of the Agreement on Implementation of Article VII of the General Agreement on Tariffs 
and Trade 1994 (Agreement on Customs Valuation) a nd Article 19 of the Agreement on Agriculture 
(G/VAL/D/7), are pending. 
 G/VAL/W/136 
Page 8  
 
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 /L/XX).  In addition, th e Committee adopted its 
report to the Council for Trade in Goods on China's Transitional Review.] 
  G/VAL/W/136 
 Page 9 
 
 
ANNEX I  
Information on National Legislation  
  Below are listed the references of the documents
1 containing national laws, regulations etc. and 
replies to the Checklist of I ssues received from Members. 
 
Member 
 National legislation Replies to the Checklist of Issues 
Albania  G/VAL/N/1/ALB/1  
Armenia G/VAL/N/1/ARM/1 G/VAL/N/2/ARM/1 
Argentina 
 VAL/1/Add.22 + Suppl. 1-4 + 
Suppl.2/Rev.1 G/VAL/N/1/ARG/1 VAL/2/Rev.2/Add.4 
Australia VAL/1/Add.14 + Suppl.1-4 
G/VAL/N/1/AUS/1 – 2 VAL/2/Rev.1/Add.12 + Suppl.1 
Bolivia G/VAL/N/1/BOL/1  
Botswana VAL/1/Add.16 (not not ified under WTO) Not received 
Brazil VAL/1/Add.20 + Suppl.1 
G/VAL/N/1/BRA/ 1, 2, and 3 VAL/2/Rev.2/Add.3 
Brunei Darussalam G/VAL/N/1/BRN/1 G/VAL/N/2/BRN/1 
Bulgaria G/VAL/N/1/BGR/1-2 G/VAL/N/2/BGR/1 
Burkina Faso G/VAL/N/1/BFA/1 + Rev.1  
Canada VAL/1/Add.17 + Suppl.1-3 
G/VAL/N/1/CAN/1-2 VAL/2/Rev.1/Add.14 
G/VAL/N/2/CAN/1 
China G/VAL/N/1/CH N/1, 2, 3 and 4  G/VAL/N/2/CHN/1 
Colombia G/VAL/N/1/COL/1 G/VAL/N/2/COL/1 
Costa Rica G/VAL/N/1/CRI/1 G/VAL/N/2/CRI/1 
Côte d'Ivoire G/VAL/N/1/CVI/1  
Croatia G/VAL/N/1/HRV/1 G/VAL/N/2/HRV/1 
Cuba G/VAL/N/1/CUB/1 G/VAL/N/2/CUB/1 
Dominica G/VAL/N/1/DMA/1  
Dominican Rep G/VAL/N/1/DOM/1  
EEC VAL/1/Add.2 + Suppl.1-13 + Suppl.1 
G/VAL/N/1/EEC/1/Rev.1 VAL/2/Rev.1/Add.6 
Fiji G/VAL/N/1/FJI/1 G/VAL/N/2/FJI/1 
Gabon G/VAL/N/1/GAB/1  
Georgia G/VAL/N/1/GEO/1  
Hong Kong China VAL/1/Add.9 
G/VAL/N/1/HKG/1 Not applicable 
Iceland G/VAL/N/1/ISL/1 G/VAL/N/2/ISL/1 
India VAL/1/Add.24 + Suppl.1 
G/VAL/N/1/IND/1, 2, and 3 VAL/2/Rev.2/Add.6 
G/VAL/N/2/IND/1 + Corr.1 
Indonesia G/VAL/N/ IDN/1 G/VAL/N/2/IDN/1+Corr.1 
Israel G/VAL/N/1/ISR/1+Corr.1 G/VAL/N/2/ISR/1 
Jamaica G/VAL/N/1/JAM/1 G/VAL/N/2/JAM/1 
Japan VAL/1/Add.7 
G/VAL/N/1/JPN/1 VAL/2/Rev.1/Add.8 
G/VAL/N/2/JPN/1 
Jordan G/VAL/N/1/JOR/1 G/VAL/N/2/JOR/1 
                                                      
1 Documents beginning with "VAL" are documents issued under the Tokyo Round Committee on Customs Valuation.  
 G/VAL/W/136 
Page 10  
 
Member 
 National legislation Replies to the Checklist of Issues 
Kenya G/VAL/N/1KEN/1 G/VAL/N/2/KEN/1 
Korea, Rep.of VAL/1/Add.19 + Suppl.1-4+ 
Suppl.2/Corr.1-2 + Suppl.3/Corr.1 G/VAL/N/1/KOR/1-2 VAL/2/Rev.2/Add.1 + Suppl.1 
Kyrgyz Rep G/VAL/N/1/KGZ/1 G/VAL/N/2/KGZ/1 
Lesotho VAL/1/Add.21 + Suppl.1 (not notified 
under WTO) VAL/2/Rev.2/Add.2 
Liechtenstein G/VAL/N/1/ LIE/1 Not applicable 
Macao G/VAL/N/1/MAC/1 Not applicable 
Madagascar G/VAL/N/1/MDG/1  
Malawi VAL/1/Add.27  
G/VAL/N/1/MWI/1  
Malaysia G/VAL/N/1/MYS/1 G/VAL/N/2/MYS/1 
Mauritius G/VAL/N/MUS/1 G/VAL/N/2/MUS/1 
Mexico VAL/1/Add.25 + Suppl.1-3 
+ Suppl.1/Rev.1 (not notified under WTO) G/VAL/N/1/MEX/1 VAL/2/Rev.1/Add.10 
VAL/2/Rev.2/Add.8 G/VAL/N/2/MEX/1 + Corr.1 
Moldova G/VAL/N/1/MD A/1 G/VAL/N/2/MDA/1 
Morocco G/VAL/N/1/ MAR/1/Rev.1+Corr.1 
G/VAL/N/1/MAR/2 G/VAL/N/2/MAR/1-2 
Namibia G/VAL/N/1/NAM/1  
New Zealand VAL/1/Add.12 + Suppl.1 
G/VAL/N/1/NZL/1 VAL/2/Rev.1/Add.10 
Norway VAL/1/Add.11 +Corr.1 + Suppl.1-2 
G/VAL/N/1/NOR/1 VAL/2/Rev.1/Add.7 
Oman G/VAL/N/1/OMN/1 G/VAL/N/2/OMN/1 
Pakistan G/VAL/N/1/PAK/1  
Panama G/VAL/N/1/PAN/1 G/VAL/N/2/PAN/1 
Paraguay G/VAL/N/1/PRY/1  
Philippines G/VAL/N/1/PHI/1 G/VAL/N/2/PHL/1 
Romania VAL/1/Add.8 +  Suppl.1-2 
G/VAL/N/1/ROM/1-2 VAL/2/Rev.1/Add.9 
Senegal G/VAL/N/1/SEN/1  
Singapore G/VAL/N/1/SG P/1 G/VAL/N/2/SGP/1 
South Africa VAL/1/Add.15  + Corr.1 + Suppl.1-3 
G/VAL/N/1/ZAF/1 VAL/2/Rev.1/Add.13 
Suriname G/VAL/N/1/SUR/1  
Swaziland  G/ VAL/N/2/SWZ/1 
Switzerland VAL/1/Add.5  
G/VAL/N/1/CHE/1 Not applicable 
Chinese Taipei G/VAL/N/1/TPKM/1 G/VAL/N/2/TPKM/1-2 
Tanzania  G/VAL/N/2/TAN/1 
Thailand G/VAL/N/1/THA/1 G/VAL/N/2/THA/1 
Trinidad and 
Tobago G/VAL/N/1/TTO/1 G/VAL/N/2/TTO/1 
Tunisia G/VAL/N/1/TUN/1  
Turkey VAL/1/Add.29 
G/VAL/N/1/TUR/1-2 G/VAL/N/2/TUR/1 
United States VAL/1/Add.1 +  Suppl.1-5 
G/VAL/N/1/USA/1 VAL/2/Rev.1/Add.1  G/VAL/W/136 
 Page 11 
 
 
Member 
 National legislation Replies to the Checklist of Issues 
Uruguay G/VAL/N/1/URY/1 G/VAL/N/2/URY/1 
Venezuela G/VAL/N/1/VEN/1 G/VAL/N/2/VEN/1 
Zambia G/VAL/N/1/ZMB/1  
Zimbabwe VAL/1/Add.23 
G/VAL/N/1/ZWE/1 VAL/2/Rev.2/Add.5 
 
__________  