What Is A Customs Valuation Agreement

Under the Agreement, the customs authorities can only add to the transaction value of something – other additions are not permitted: 1. The main basis of the customs value under this Agreement is the transaction value within the meaning of Article 1. Article 1 shall be read at the same time as Article 8, which provides, inter alia, for corrections to the price actually paid or payable; where certain specific items considered to be part of the customs value are incurred by the buyer but are not included in the price actually paid or payable for the imported goods. Article 8 also provides for the inclusion in the transaction value of certain counterparties that may pass from the buyer to the seller in the form of certain goods or services and not in the form of money. Articles 2 to 7 contain methods for determining the customs value where it cannot be determined in accordance with Article 1. (b) For the purposes of this article, the transaction value of identical goods in the case of a sale at the same level of trade and in substantially the same quantity as the quantity of the goods being valued shall be used for the determination of the customs value; In the absence of such a sale, the transaction value of identical goods sold at a different level of trade and/or in different quantities shall be used, adjusted for differences due to level of trade and/or quantity, provided that such adjustments can be made on the basis of evidence clearly clarifying the adequacy and accuracy of the adjustment; if the adjustment results in an increase or decrease in value. The agreement stipulates that the customs legislation of each WTO member country provides for the right of importers without penalty, first to the country`s customs administration or an independent body, and then to a judicial authority. All laws, regulations, court decisions and administrative decisions that bring the contract into force are published. 2.

Where neither the imported goods nor the identical or similar imported goods are sold in the importing country in the state in which they were imported, the customs value shall be fixed, on the proposal of the importer, on the basis of the unit price at which the imported goods are sold after further processing in the largest total number of persons in the importing country: who are not associated with the persons from whom they purchase the goods; due account shall be taken of the value added generated by that treatment and of the deductions referred to in point (a) of paragraph 1. The agreement gives customs administrations the right to request additional information from importers if they have reason to doubt the accuracy of the declared value of imported goods. If, despite additional information, the administration retains reasonable doubts, it can be assumed that the customs value of the imported goods cannot be determined on the basis of the declared value and that customs should determine the value taking into account the provisions of the Agreement. [4] The above evaluation methods should be applied in hierarchical order. 3. Where, for the purposes of this Article, more than one transaction value of identical goods is established, the lower value shall be used for the determination of the customs value of the imported goods. (d) the buyer and seller are not related or, where the buyer and seller are related, the transaction value is acceptable for customs purposes in accordance with paragraph 2. . . .

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