twenty-first ANNUAL REVIEW OF THE IMPLEMENTATION AND

OPERATION OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII

OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994^[1]

Article 23 of the Agreement provides that "the Committee shall review annually the implementation and operation of this Agreement taking into account the objectives thereof".  The main objectives of the Agreement are those listed in the General Introductory Commentary.  The annual review of the Committee should cover the implementation and operation of the Agreement in the light of its objectives and specific obligations.

At its meeting of 7 October 2015, the Committee on Customs Valuation conducted and adopted the 21^st annual review of the implementation and operation of the Agreement.

The contents of this document are as follows:

                                                                                                                                               Page

I.         MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER STATUS. 2

(a)       Delayed Application and Reservations. 2

(i)        Article 20.1 (delayed application of the provisions of the Agreement) 2

(ii)       Article 20.2 (delayed application of the computed value method) 2

(iii)      Annex III, paragraph 1 (extension of the five-year delay period) 2

(iv)      Annex III, paragraph 2 (reservation concerning minimum values) 2

(v)       Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5 and 6) (53) 2

(vi)      Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so requests) (51) 3

(b)       Observer Governments (23) 3

(c)       Observer International Organizations (6) 3

II.       oFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION.. 3

III.    MEETINGS OF THE COMMITTEE. 3

IV.      NATIONAL LEGISLATION PRESENTED.. 4

(a)       Texts of national legislation. 4

(b)       Checklist of issues. 4

(c)       Examination of national legislation. 4

(d)       Information on the application of the Committee Decisions. 4

V.        DECISIONS TAKEN BY THE COMMITTEE. 5

VI.      TECHNICAL ASSISTANCE. 5

VII.    Issues Related to Implementation of the Agreement. 5

VIII. Preshipment Inspection.. 5

IX.      REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION.. 5

X.        Other subjects raised or discussed in the Committee. 5

XI.      CONSULTATION AND DISPUTE SETTLEMENT. 6

XII.    ANNUAL REPORT TO THE COUNCIL FOR TRADE IN GOODS. 6

I.       MEMBERS, DELAYED APPLICATIONS, RESERVATIONS AND OBSERVER STATUS

(a)     Delayed Application and Reservations

This section reflects the situation with respect to special and differential treatment provisions available for developing country Members as of 23 September 2015.  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)

No Member maintains this special and differential treatment provision.

(iii)       Annex III, paragraph 1 (extension of the five-year delay period)

As a result of its Accession to the WTO, Yemen will start fully implementing the Agreement by 31 December 2016.^[2]  No other Member maintains this special and differential treatment provision. 

(iv)      Annex III, paragraph 2 (reservation concerning minimum values)

No Member maintains this special and differential treatment provision.

(v)       Annex III, paragraph 3 (reservation concerning reversal of sequential order of Articles 5 and 6) (53)

(vi)      Annex III, paragraph 4 (reservation to apply Article 5.2 whether or not the importer so requests) (51)

(b)     Observer Governments (23)

(c)     Observer International Organizations (6)^[5]

II.     oFFICERS OF THE WTO COMMITTEE ON CUSTOMS VALUATION

Chairperson (elected in May 2014)  Ms Joanna Cheung (Hong Kong, China)

Chairperson (elected in May 2015) Mr. LIU Ping (China)

Vice Chairperson (elected in October 2015)      Ms Joanna Cheung (Hong Kong, China)

III.   MEETINGS OF THE COMMITTEE

During the reporting period, the Committee held two formal meetings.  The first meeting was held on 21 May 2015 (G/VAL/M/60) and was chaired by Ms Joanna Cheung (Hong Kong, China). The second meeting was held on 7 October 2015, and was chaired by Mr. LIU Ping (China). 

IV.    NATIONAL LEGISLATION PRESENTED

(a)           Texts of national legislation

Article 22 of the Agreement requires each Member to inform the Committee of any changes in its laws and regulations relevant to the Agreement and in the administration of such laws and regulations.  At its first meeting, on 12 May 1995, the Committee agreed on procedures for the notification of national legislation (G/VAL/M/1, paragraphs 29-35, 71 and 72).  Paragraph i) of the "Decision on Notification and circulation of national legislation in accordance with Article 22 of the Agreement"^[6] requires Members to submit the complete texts of their national legislation (laws, regulations, etc.) on customs valuation in one of the three official WTO languages.

The status of these notifications is contained in document G/VAL/W/232/Rev.3.  During the reporting period, new notifications were submitted by: Cabo Verde (G/VAL/N/1/CPV/1 and G/VAL/N/1/CPV/2); Guinea (G/VAL/N/1/GIN/1); Honduras (G/VAL/N/1/HND/1); Montenegro (G/VAL/N/1/MNE/1); Nepal (G/VAL/N/1/NPL/1); South Africa (G/VAL/N/1/ZAF/1 and G/VAL/N/1/ZAF/2); Sri Lanka (G/VAL/N/1/LKA/1 and G/VAL/N/1/LKA/1/Add.1); and the Russian Federation (G/VAL/N/1/RUS/3/Add.1 and G/VAL/N/1/RUS/2/Add.1).

(b)     Checklist of issues

At its first meeting, on 12 May 1995, the Committee agreed on procedures for the submission of replies to a checklist of issues (G/VAL/M/1, paragraphs 36-39).  The checklist of issues is contained in G/VAL/5.

The status of these notifications is also contained in document G/VAL/W/232/Rev.3. During the reporting period, communications were submitted by South Africa (G/VAL/N/2/ZAF/1) and Sri Lanka (G/VAL/N/2/LKA/1).

(c)     Examination of national legislation

At its meeting of 21 May, the Committee continued the examination of various national legislations.  In this regard, it agreed to revert at the next meeting to the examination of the legislations of Bahrain; Belize; Cabo Verde; Colombia; Ecuador; Gambia; Guinea; Honduras; Mali; Moldova; Montenegro; Nicaragua; Nigeria; Russian Federation; Rwanda; St. Vincent and the Grenadines; South Africa; and Sri Lanka.  It examined for the first time new notifications by Guinea; Honduras; Montenegro; South Africa; and, Sri Lanka.  In addition, the Committee concluded the review of the national legislation of Lesotho; Ukraine; and Uruguay.

At its meeting of 7 October, the Committee continued the examination of various national legislations.  In this regard, it agreed to revert at the next meeting to the examination of the legislations of Bahrain; Belize; Cabo Verde; Colombia; Ecuador; Gambia; Guinea; Honduras; Mali; Moldova; Montenegro; Nepal; Nicaragua; Nigeria; Russian Federation; Rwanda; South Africa; and, Sri Lanka. It examined a new notification from Nepal.  In addition, the Committee concluded the review of the national legislation of St. Vincent and the Grenadines.

(d)          Information on the application of the Committee Decisions

Notifications on the application of the Decision on the Treatment of Interest Charges in the Customs Value of Imported Goods and of paragraph 2 of the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment (G/VAL/5) were summarized by the Secretariat in document G/VAL/W/5/Rev.25.  During the reporting period, the Committee received new notifications from Montenegro (G/VAL/N/3/MNE/1); Sri Lanka (G/VAL/N/3/LKA/1 and G/VAL/N/3/LKA/2); and South Africa (G/VAL/N/3/ZAF/1).  The Committee also had ongoing discussions on a proposal by Uruguay (G/VAL/W/241/Rev.1) to update the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment, as well as a related proposal by Switzerland (G/VAL/W/254), during this reporting period. 

V.       DECISIONS TAKEN BY THE COMMITTEE

At its first meeting on 12 May 1995, the Committee adopted Decisions which had been previously adopted by the Tokyo Round Committee.  These Decisions are reproduced in document G/VAL/5.  The Committee also adopted Decisions that were referred by the Ministers at Marrakesh to the Committee.  The texts of the decisions are contained in document G/VAL/1. 

There were no decisions adopted during the reporting period.

VI.    TECHNICAL ASSISTANCE

The Committee took note that technical assistance in the area of customs valuation was now incorporated in the WTO-wide technical assistance programme, and that 2014-2015 biennial technical assistance plan was currently being implemented.  There were no regional activities in 2015.

Members also have the possibility to request at any time technical assistance on customs valuation, which would be met by a national activity designed to meet the needs of the recipient. In 2015, two national activities were carried out, jointly with the WCO, for Comoros and Saint Lucia.

At the meeting of 7 October, the Committee took note of a statement made by the United States calling for a discussion on how the Committee could develop a dynamic technical assistance programme on the Customs Valuation Agreement in light of the existing synergy and overlap between that Agreement and the Trade Facilitation Agreement.

VII.  Issues Related to Implementation of the Agreement

At the meetings of 21 May and 7 October, the Committee took note of statements made regarding the work in relation to the Committee's mandate in paragraph 8.3 of the Ministerial Decision on Implementation-Related Issues and Concerns.

VIII.          Preshipment Inspection

The Secretariat prepared a report consolidating all the notifications which had been received on preshipment inspection (G/PSI/N/1/Rev.2). During the reporting period, new notifications were submitted by Congo (G/PSI/N/1/Rev.2/Add.1) and Malawi (G/PSI/N/1/Rev.2/Add.2).

On the report by the International Federation of Inspection Agencies (IFIA) concerning countries that use preshipment inspection services, new information was submitted at the beginning of May and distributed in G/VAL/W/63/Rev.17.

IX.    REPORTS BY THE TECHNICAL COMMITTEE ON CUSTOMS VALUATION

At the 21 May meeting, the representative of the WCO presented a report on the 40th session of the Technical Committee on Customs Valuation (TCCV), which was held from 5 to 9 May 2014. 

The 7 October meeting predated the 41^st session of the Technical Committee on Customs Valuation (TCCV), which would be held from 19 to 23 October 2015.  

X.       Other subjects raised or discussed in the Committee

At its meeting of 7 October, the Committee took note of a comment made by the United States on the need for follow-up to the Informal Workshop on the Use of Customs Valuation Databases held by the Committee in 2014.

XI.    CONSULTATION AND DISPUTE SETTLEMENT

During the reporting period, there was one request for consultations involving the Agreement on Preshipment Inspection:  Indonesia - Measures Concerning the Importation of Chicken Meat and Chicken Products (DS484, complainant: Brazil).

XII.  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/1135). 

__________