information on IMPLEMENTATION and administration
of the agreement on customs valuation

Check-list of Issues

Saint Kitts and Nevis

The following communication, dated 12 November 2024, is being circulated at the request of the delegation of Saint Kitts and Nevis.

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1._           Questions concerning Article 1:

(a)_         Sales between related persons:

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

No special provision as it relates to sales between related persons, the normal valuation methods applies, in accordance with the Customs Act Cap 20.04, Second Schedule Section 3.

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

In accordance with the Customs Act Cap 20.04 Second Schedule Section 3 subsection (2), if the Customs Authority questions the value, the customer has the right to a written response.

(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))

The Customs Act Cap 20.04, Second Schedule Section 3 sub section (2) (a) which says in part, "If, in the light of information provided by the importer or otherwise the Comptroller has grounds for considering that the relationship influenced the price, he or she shall communicate the grounds to the importer who shall be given a reasonable opportunity to respond".

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

The Customs Act Cap 20.04, Second Schedule Section 3, subsection (2) (b) which says "in a sale between related persons, the transaction value shall be accepted and the goods valued in accordance with sub-paragraph (1) whenever the importer demonstrates that such value closely approximates to one of the following occurring at or about the same time—

(i)_           the transaction value in sales, between buyers and sellers who are not related;

in any particular case, of identical or similar goods for export to Saint Christopher and Nevis;

(ii)_          the customs value of identical or similar goods, as determined under paragraph 6;

(iii)_         the customs value of identical or similar goods, as determined under paragraph 7,

in applying the foregoing texts, due account shall be taken of demonstrated differences in commercial levels, quantity levels, the elements enumerated in paragraph 8 and costs incurred by the seller in sales in which he or she and the buyer are not related that are not incurred by the seller in sales in which he or she and the buyer are related".

(b)_         Price of lost or damaged goods:

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

Provision for lost or damaged goods is contained in Section 91 of the Customs Act Cap 20.04 revised edition 2017 which says:

"(1) Subject to subsection (2), where the Comptroller is satisfied in respect of any imported goods that—

(a) before or upon the importation of the goods, such goods, in whole or in part, have deteriorated or have been damaged, lost or destroyed;

(b) goods lost, before or upon their importation, have not entered or will not enter into home use in Saint Christopher and Nevis; and

(c) the carrier or insurer of such goods has made an allowance to the importer of the goods in respect of the deterioration, damage, loss or destruction,

the Comptroller shall allow such abatement of the duty chargeable on such goods to the extent which, in the opinion of the Comptroller, the amount of the deterioration, damage, loss or destruction bears to the original value of the goods.

(2) Where duty has already been paid on goods in respect of which an abatement would be allowable under subsection (1), no repayment of the amount of the abatement shall be made unless the claim is made within twelve months of the date of the payment of the duty.

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 Customs Act Cap 20.04, Second Schedule Section 2 sub section (2) which says:

(2) Where such value cannot be determined under paragraph 3, it shall be determined by proceeding sequentially through paragraphs 4 to 7, inclusive, to the first such paragraph under which it can be determined, subject to the provision that, where the importer requests it and the Comptroller agrees, the order of application of paragraphs 6 and 7 shall be reversed.

3._           How has Article 5.2 been implemented?

The Customs Act Cap 20.04, Second Schedule Section 6 sub section (2) which says:

if neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued, the customs value of imported goods determined under this paragraph shall, subject otherwise to the provisions of sub-paragraph (1)(a), be based on the unit price at which the imported goods or identical or similar imported goods are sold in Saint Christopher and Nevis in the condition as imported at the earliest date after the importation of goods being valued but before the expiration of ninety days after such importation.

4._           How has Article 6.2 been implemented?

This provision has not been implemented.

5._           Questions concerning Article 7:

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

The Customs Act Cap 20.04, Second Schedule Section 2 sub section (5) states:

(5) No customs value shall be determined under sub-paragraph (4) on the basis of—

(a) the selling price in Saint Christopher and Nevis of goods produced in Saint Christopher and Nevis;

(b) a system which provides for the acceptance for customs purposes of the higher of two alternative values;

(c) the price of goods on the domestic market of the country of exportation;

(d) the cost of production, other than computed values which have been determined for identical or similar goods in accordance with paragraph 7;

(e) the price of goods for export to a country other than Saint Christopher and Nevis;

(f) minimum customs values; or

(g) arbitrary or fictitious values

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

Article 7.3 which says, "If the importer so requests, the importer shall be informed in writing of the customs value determined under the provisions of this Article and the method used to determine such value" has not been implemented.

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

The Customs Act Cap 20.04, Second Schedule, Section 2, sub section (5).

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 Customs Act Cap 20.04, Second Schedule, Section 8 sub section (1) (e).

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

The rate of exchange is pursuant to the following policy:

https://skncustoms.com/Customs%20Policies/RATE%20OF%20EXCHANGE.pdf.

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

Provision to confidentiality is contained in Section 9 of the Customs Act 20.04

9._           Questions Concerning Article 11:

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

Provision to the right of appeal is contained in Sections 208 (Appeals to Comptroller), 210 (Appeals to Commission) and 226 (Appeals to High Court) of the Customs Act 20.04.

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

Provision to the right of appeal is contained in Sections 208 to 229 of the Customs Act 20.04.

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

(a)      

(i)_          The relevant national laws;

Laws, including the Customs Act, are found on the website https://lawcommission.gov.kn/ while Customs related laws are found on the Customs webpage https://skncustoms.com/Show-Page.aspx?PageID=256.

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

All regulations can be found on the website https://lawcommission.gov.kn/ while Customs related regulations are found on the Customs webpage https://skncustoms.com/Show-Page.aspx?PageID=256.

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

https://www.gov.kn/wp-content/uploads/2020/07/constitution-of-st-kitts-and-nevis.pdf.

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

https://www.gov.kn/wp-content/uploads/2020/07/constitution-of-st-kitts-and-nevis.pdf.

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

Yes, as needed, as topics arise.

11._         Questions concerning Article 13:

Provisions concerning Article 13 are contained in Section 40 of the Customs Act CAP 20.04.

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?

            Provisions concerning Article 16 are contained in Section 81 and the Second Schedule of the Customs Act 20.04.

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

            There is no legal provision. However, upon request the comptroller would in writing inform of the methodology to be used in determining the value.

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

They are not included in the Customs Legislation. However, the St. Kitts and Nevis Customs and Excise Department have a policy on Customs Valuation which helps to explain our Customs Valuation. This policy can be found at https://skncustoms.com/Show-Page.aspx?PageID=288.

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

Saint Kitts and Nevis does not include interest charges as part of the Customs Value. It is declared separately from the cost of the goods on the invoice declaration.

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?

Saint Kitts and Nevis includes the cost of the software and the price of the medium in determining the Customs value as it relates to Carrier Media Bearing Software for Data Processing Equipment.

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