information on IMPLEMENTATION and administration
of the agreement on customs valuation

Check-list of Issues

Seychelles

The following communication, dated 27 June 2024, is being circulated at the request of the delegation of Seychelles.

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1._           Questions concerning Article 1:

(a)_         Sales between related persons:

(i)_          Are sales between related persons subject to special provisions?

Regulations 4 to 6 of Chapter 2, Valuation of Goods under Statutory Instrument (S.I.) 42 of 2014 Customs Management Regulations, 2014 (Regulations) concern sales between related persons.

(ii)_         Is the fact of intercompany prices prima facie considered as grounds for regarding the respective prices as being influenced?

Regulation 6(1) of Chapter 2 clarifies that the fact of intercompany prices is not prima facie considered as grounds for regarding the respective prices as being influenced.

(iii)_       What is the provision for giving the communication of the afore-mentioned?

Regulation 6(7) of Chapter 2 states that if Customs determines that the relationship influenced the price, Customs shall communicate the grounds for the determination to the declarant and the declarant shall be given a reasonable opportunity to respond.

(iv)_        How has Article 1.2(b) been implemented?

Article 1.2(b) is being implemented as per Statutory Instrument (S.I.) 42 of 2014 Customs Management Regulations, 2014.

(b)_         Price of lost or damaged goods:

            Are there any special provisions or practical arrangements concerning the valuation of lost or damaged goods?

This is done by virtue of a written communication between the Seychelles Revenue Commission (SRC) and the importer. However, any special provisions or practical arrangements are yet to be developed.

2._           How has the provision of Article 4 to allow the importer an opinion to reverse the order of application of Articles 5 and 6 been implemented?

The provision of Article 4 of the Customs Valuation Agreement (CVA) which allows the importer an option to reverse the order of application of Article 5 and 6 is provided for under Regulations 11 of Chapter 2.

3._           How has Article 5.2 been implemented?

Article 5.2 of the CVA is provided for under Regulations 12.3 of Chapter 2.

4._           How has Article 6.2 been implemented?

Article 6.2 of the CVA is provided for under Regulations 13.2 of Chapter 2.

5._           Questions concerning Article 7:

(a)_         What provisions have been made for making value determinations pursuant to Article 7?

Regulation 14 of Chapter 2 sets out the provisions reflected in Article 7 of the CVA.

(b)_         What is the provision for informing the importer of the customs value determined under Article 7?

Regulation 14(3) of Chapter 2 is the provision which stipulates that the importer is to be informed in writing of the customs value determined as provided for under Article 7 of the CVA.

(c)_         Are the prohibitions found in Article 7.2 delineated?

The prohibitions found in Article 7.2 of the CVA are set out in Regulation 14(2) of Chapter 2.

6._           How have the options found in Article 8.2 been handled? In the case of f.o.b. application, are ex-factory prices also accepted?

The options found in Article 8.2 are provided for under Regulations 8 (1) (e) of Chapter 2.

F.O.B and ex-factory prices are accepted; however, taxes are calculated based on Cost Insurance Freight (C.I.F) value.

7._           Where is the rate of exchange published, as required by Article 9.1?

The rate of exchange is published by the Central Bank of Seychelles on its website: www.cbs.sc.

8._           What steps have been taken to ensure confidentiality, as required by Article 10?

To ensure confidentiality as required under Article 10 of the CVA, appropriate provision has been made under Section 37 of the Customs Management Act, 2011 (Act 22 of 2011) on Data Protection and client confidentiality which provides as follows:

"(1) All information acquired by the Assistant Commissioner of Customs in the course of performance his or her duties which is by its nature confidential or which is provided on a confidential basis, shall be treated as confidential.

(2) The Commissioner for Customs shall not disclose confidential information without the express permission of the person who provided it, except for the purpose of Customs Controls.

(3) Any communication of confidential data to the Customs administrations and authorities outside Seychelles shall be permitted only in terms of an international agreement ensuring an equivalent level of data protection.

(4) The disclosure or communication of information shall take place in full compliance with data protection provisions in force."

9._           Questions Concerning Article 11:

(a)_         What rights of appeal are open to the importer or any other person?

Section 32 of the Customs Management Act provides an importer and other person the right of appeal against the Commissioner of Customs and may request that the Commissioner General makes a decision. A person dissatisfied by the decision of the Commissioner General may appeal against such decision under the provision set out under the Revenue Administration, Act, 2009.

Furthermore, S.I. 60 of 2012 Customs Management (Appeal against administrative decisions) Regulations, 2012 further relates to Customs Management appeal.

(b)_         How is he to be informed of his right to further appeal?

A person is informed in writing.

10._         Provide information on the publication, as required by Article 12, of:

(a)      

(i)_          The relevant national laws;

The relevant national laws are published in the Official Gazette as well as on the website of the Seychelles Revenue Commission: www.src.gov.sc.

(ii)_         The regulations concerning the application of the Agreement;

The Regulations are published in the Official Gazette as well as the website of the Seychelles Revenue Commission: www.src.gov.sc.

(iii)_       The judicial decision and administrative rulings of general application relating to the Agreement;

The judicial decisions are notified directly to the parties to the proceedings and are published on the website of the Judiciary: www.seylii.org.

The administrative rulings of general application relating to the Agreement are published by the Seychelles Revenue Commission on its website: www.src.gov.sc.

(iv)_        General or specific laws being referred to in the rules of implementation or application.

The general or specific laws being referred to in the rules of implementation or application are published in the Official Gazette as well as on the website of the Seychelles Revenue Commission: www.src.gov.sc.

(b)_         Is the publication of further rules anticipated? Which topics would they cover?

The publication of further rules is yet to be decided.

11._         Questions concerning Article 13:

(a)_         How is the obligation of Article 13 (last sentence) being dealt with in the respective legislation?

The obligation of Article 13 (last sentence) is being dealt with under Section 112 of the Customs Management Act, 2011 which provides for goods to be cleared against surety in the form of money or otherwise covering the ultimate payment of the Customs duties for which the goods may be liable.

(b)_         Have additional explanations been laid down?

There are no additional explanations that have been laid down.

12._         Questions concerning Article 16:

(a)_         Does the respective national legislation contain a provision requiring customs authorities to give an explanation in writing as to how the customs value was determined?

The national legislation contains a provision under Regulation 14 (3) of Chapter 2 requiring customs to give an explanation in writing as to how the customs value under the provisions of the regulations was determined.

(b)_         Are there any further regulations concerning an above-mentioned request?

There are no further regulations concerning the obligation to give an explanation in writing as to how the customs value was determined.

13._         How have the Interpretative Notes of the Agreement been included?

The Interpretative Notes of the Agreement has been included under Schedule 2 of the Regulations, which is specified in Regulation 17 of Chapter 2.

14._         How have the provisions of the Decision on the Treatment of Interest Charges in the Customs Value of Imported Goods been implemented?

The provisions of the Decision on the Treatment of Interest Charges in Customs Value of Imported Goods are yet to be introduced in law.

15._         For those countries applying paragraph 2 of the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment, how have the provisions of this paragraph been implemented?

The provision of this paragraph is being implemented under Regulation 16 of Chapter 2.

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