INFORMATION ON IMPLEMENTATION AND ADMINISTRATION

OF THE AGREEMENT ON CUSTOMS VALUATION

CHECK-LIST OF ISSUES

Cabo Verde

The following communication, dated 13 September 2024, is being circulated at the request of the delegation of Cabo Verde.

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1.     Questions concerning Article 1:

(a)   Sales between related persons:

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

There are no special provisions other than those set out in the Agreement on Customs Valuation. Therefore, in order to be accepted, sales between related persons must comply with the conditions set out in Articles 264 and 265 of the Customs Code, as approved by Legislative Decree No. 4/2010 of 3 June, and Articles 47 and 48 of the Regulations to the Customs Code, as approved by Law No. 23/2014 of 2 April.

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

No, because according to Article 264 of the Customs Code and Article 49 of the Regulations thereto, before rejecting the transaction value, the customs authorities must carry out investigations or request additional information. The fact of intercompany prices does not in itself constitute sufficient grounds for considering the transaction value to be unacceptable. Therefore, influence can be declared only if one of these two steps has been taken.

(iii)   What is the provision for giving the communication of the afore-mentioned grounds in writing if the importer so requests? (Article 1.2(a))

Pursuant to Article 264(3) of the Customs Code and Article 49(4) of the Regulations thereto, when the customs authorities consider a price to be influenced (based on information provided by the importer or other sources), they notify the importer in writing of this conclusion and the reasons for it and give the importer 5 to 10 working days to submit a written reply.

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

Article 1.2(b) of the Agreement has been incorporated (reproduced) in domestic legislation through Article 264(4) of the Customs Code and Article 47(4) of the Regulations thereto. In other words, the exact content of Article 1.2(b) has been transposed faithfully into these provisions.

(b)   Price of lost or damaged goods:

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

Yes. The customs value of lost or damaged goods is determined in accordance with the rules set out in Articles 62 to 67 of the Regulations to the Customs Code.

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 is covered by Article 267(1) of the Customs Code and Article 86 of the Regulations thereto.

3.      How has Article 5.2 been implemented?

Through its incorporation/transposition into the Customs Code (Article 275) and the Regulations thereto (Articles 82, 83 and 84).

4.      How has Article 6.2 been implemented?

Through its transposition into the Customs Code (Article 277) and the Regulations thereto (Article 90).

5.      Questions concerning Article 7:

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

Article 278 of the Customs Code governs resort to the fall-back method of determining the customs value in accordance with Article 7. 

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

Article 278(3) of the Customs Code stipulates that, at the importer's request, the customs authorities must inform him or her, in writing, of the customs value being determined in accordance with this Article and of the method used to determine it.

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

Yes, they are provided for in Article 278(2)(a) to (g) of the Customs Code.

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

Yes, in line with Article 8.2 of the Agreement on Customs Valuation, Article 262 of the Customs Code and Articles 70 and 71 of the Regulations thereto, in the case of f.o.b. applications, the ex-factory price is accepted. However, in the case of c.i.f. applications, the costs of transporting and insuring the imported goods and the loading, unloading and handling charges associated with the transport of the imported goods to the point of entry into the customs territory of Cabo Verde are added to the ex-factory price (Article 262(1)(e) of the Customs Code).

Furthermore, any additions to the price actually paid or payable shall be made under this Article only on the basis of objective and quantifiable data (Article 262(1) of the Customs Code).

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

Yes, pursuant to Article 258 of the Customs Code, conversion is carried out in accordance with Article 11 of Legislative Decree No. 4/2010 of 3 June approving the Customs Code, which states that “where factors used to determine the customs value of goods are expressed in a foreign currency, conversion is carried out using the exchange rate in force on the day on which the detailed declaration is registered. Where such a rate does not exist because of a public holiday or for any other reason, the monetary conversion shall be determined in accordance with the rate of exchange applicable on the previous day.”

In practice, the exchange rate is published by the Central Bank on the eve (between 4 and 5 p.m.) of the day on which it will come into effect. At the start of each day, the Directorate‑General of Customs updates the exchange rate published by the Central Bank in its ASYCUDA World computer system (where customs declarations are recorded).

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

In general, pursuant to Article 69 of the Customs Code and Article 14 of the Regulations thereto, the customs services state that all information of a confidential nature or provided on a confidential basis and obtained by the customs authorities in the performance of their tasks is covered by the duty of professional secrecy, which may be waived only in accordance with the law.

9.      Questions concerning Article 11:

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

The importer or any other eligible person may dispute a decision not to accept the transaction value method, together with the alternative method chosen and the value imposed. In the event of a dispute, the importer or any other person may lodge an appeal with the Customs Technical Council in accordance with the conditions laid down in Articles 334 and 335 and Title VII of the Customs Code. The Council examines and decides cases. Decisions issued by the Council may also be appealed before a tax and customs court or the Court of Appeal.

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

In compliance with Article 614 of the Customs Code, in all disputes (technical and judicial), decisions on appeals must set out the grounds, facts and rights on which they are based. Appellants are notified of decisions and informed of their right to submit further appeals.

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

(a)   

(i)     The relevant national laws;

In accordance with Article 269(a), (b) and (c) of the Constitution of the Republic of Cabo Verde, laws and decree-laws must be published in the Official Gazette.

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

In accordance with Article 269(f) of the Constitution of the Republic of Cabo Verde and Article 148 of the Code of Administrative Procedures, as approved by Legislative Decree No. 1/2023 of 2 October and published in Official Gazette No. 103, Series I of 2 October 2023, the regulations must be published in the Official Gazette.

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

In accordance with Article 269(e) of the Constitution of the Republic of Cabo Verde, the judicial decision and administrative rulings must be published.

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

Both the Customs Code and the Regulations thereto have been duly published in the Official Gazette.

Customs Code - Approved by Legislative Decree No. 4/2010 and published in Official Gazette No. 21, Series 1, of 3 June 2010;

Regulations to the Customs Code - Approved by Decree-Law No. 23/2014 and published in Official Gazette No. 23, Series I, of 2 April 2014.

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

A competition has been launched to select consultants to review the Customs Code and its Regulations. The review will cover, among other matters, authorized activities and places; goods declarations; customs procedures; the use of risk management; coordinated and joint inspections; the Authorized Economic Operator programme; the powers and competences of customs officials; disciplines/regulations on fines, penalties and forfeitures; procedures for appeal or review; the electronic environment; and the reformulation of the classification of and disciplines for customs tax offences.

11.    Questions concerning Article 13:

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

According to Articles 303 and 304 of the Customs Code and Articles 190 and 191 of the Regulations thereto, in the event of discrepancies in the determination of the customs value and of appeals arising from disputes, goods may be released on presentation by the owner or consignee of sufficient security to guarantee the payment of duties and other charges in the form of duty credits, clearance credit or a cash deposit.

(b)    Have additional explanations been laid down?

No.

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?

Yes, Article 278(3) of the Customs Code stipulates that, at the importer's request, the customs authorities must inform him or her, in writing, of the customs value being determined in accordance with this Article and of the method used to determine it.

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

Yes, Article 49(4) of the Regulations to the Customs Code imposes a duty on the customs authorities to communicate to the importer their decisions and the reasons that led them to reject the transaction method and apply another.

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

Under Article 259 of the Customs Code, the interpretative notes of agreements that are binding on Cabo Verde must be adopted by regulation in order to facilitate and standardize their implementation.

In this respect, Article 34(2) of the Regulations to the Customs Code states that the provisions of the Agreement on Implementation of Article VII of the GATT shall be applied in accordance with the general and specific interpretative notes contained in Annex I to the Agreement.

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

In accordance with Article 26(c) of the Customs Code and Article 76(c) of the Regulations thereto, interest charges are not included in the value of goods. However, the customs value does not include any charges or costs associated with interest charges under a financing arrangement entered into by the buyer and relating to the purchase of imported goods, irrespective of whether the finance is provided by the seller or another person, provided that the arrangement has been drawn up in writing, that the seller can demonstrate this upon request and that the charges are separate from the price actually paid or payable for the imported goods.

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?

Article 257 of the Customs Code stipulates that the customs value of carrier media for equipment is subject to specific rules.

Article 61 of the Regulations to the Customs Code clarifies this legal provision by stating that the customs value of carrier media for imported data processing equipment is determined from its total value according to the rules of common law, without distinction between the value of the carrier media and that of the data or instructions.

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