NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994

Cabo Verde

The following communication, dated 21 July 2025, is being circulated at the request of the delegation of Cabo Verde.

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The United States would again like to thank Cabo Verde for notifying its responses to the Checklist of Issues contained in document _G/VAL/N/2/CPV/1. The United States submitted initial questions in _G/VAL/Q/CPV/1, but now poses an additional question. The United States requests a reply in writing to the additional question below. The numbering below refers to the numbered questions in the Checklist of Issues.

Question 1(a)(iii): Question 1(a)(iii) of the Checklist of Issues covers Article 1.2(a) of the Customs Valuation Agreement (CVA). Cabo Verde indicates in its response that the procedures under Article 49 of the Regulations implement the commitments in CVA Article 1.2(a).

However, upon review of the Regulation, it appears Article 47 addresses examination of the circumstances of the sale when the buyer and seller are related. (Article 49 appears instead to address the Committee Decision Regarding Cases where Customs Administrations have Reasons to Doubt the Truth or Accuracy of the Declared Value.)

While Article 47(3) provides the importer with the opportunity to demonstrate criterion values in accordance with CVA Article 1.2(b), it does not appear to provide the importer with a "reasonable opportunity to respond" in accordance with CVA Article 1.2(a). How does Cabo Verde implement this commitment under CVA Article 1.2(a)?

Response:

Cabo Verde thanks the United States for its additional comments and wishes to provide the following clarifications.

The obligation under Article 1.2 (a) of the Agreement on Implementation of Article VII of the GATT 1994 (Customs Valuation Agreement), namely to give the importer a reasonable opportunity to respond when the customs administration questions the declared value because the buyer and the seller are related, is duly guaranteed under the domestic legal framework. Although Article 47 of the Customs Regulations (approved by Regulatory Decree No. 2/2022 of 11 March) addresses the examination of the circumstances surrounding the sale between related parties, it is Article 49 that, more generally, provides for the implementation of Article 1.2(a) of the Agreement. Article 49 provides that, where there are grounds for doubting the truth or accuracy of the declared value, the customs administration shall request further information from the importer and shall guarantee the right of response, in accordance with respect for the adversarial principle and due process.

Moreover, Article 266 also provides for importers to be able to submit additional information and documentation to demonstrate that it is the price actually paid and that the relationship did not influence the price.

Thus, although Article 47 is mainly related to Article 1.2(b), it is through the procedure set out in Article 49 that the importer has a genuine opportunity to respond to the doubts raised by the administration, thus ensuring compliance with the provisions of Article 1.2(a) of the Agreement.

Cabo Verde reaffirms its commitment to fully and consistently apply the WTO Customs Valuation Agreement, and stands ready to provide any further information that should deemed be necessary.

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