INFORMATION ON IMPLEMENTATION AND ADMINISTRATION OF THE
CUSTOMS VALUATION AGREEMENT

CHECKLIST OF ISSUES

Cameroon

The following communication, dated 21 January 2025, is being circulated at the request of the delegation of Cameroon.

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1._      Questions concerning Article 1:

(a)   Sales between related persons:

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

As a member of the Central African Economic and Monetary Community (CEMAC), Cameroon applies the regulatory provisions set out in Articles 28.4, 28.5, and 30.2 of the CEMAC Customs Code, adopted by Regulation No. 05/19-UEAC-010 A-CM-33 of 8 April 2019.

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

No, in the case of intercompany prices prima facie, the customs valuation of goods imported into Cameroon as a result of a sale between related persons strictly adheres to the legal framework laid down in the provisions of Article 30.2 of the CEMAC Customs Code, which transposes the Marrakesh Agreement rules on the topic.

Furthermore, Section 14 of Law No. 2022/020 of 27 December 2022 establishing the Finance Law of the Republic of Cameroon for the 2023 financial year provides that:

"companies or groups of companies implementing the transfer pricing policy shall be bound to transmit all related documentation to the Customs Administration…"

Lastly, Section 10 of Law No. 2018/022 of 11 December 2018 establishing the Finance Law of the Republic of Cameroon for the 2019 financial year provides that:

"where the accounting and financial elements, in particular, show that a taxpayer reduces the values by the practice of the transfer pricing policy in his commercial relationship with a person or a group of associated persons, the customs administration shall be authorized to reinstate the costs induced by this process in the customs value…".

Article 30 of the CEMAC Customs Code

2. (a) In determining whether the transaction value is acceptable for the purposes of paragraph 1, the fact that the buyer and the seller are related within the meaning of Article 28.4 shall not in itself be grounds for regarding the transaction value as unacceptable. In such case the circumstances surrounding the sale shall be examined and the transaction value shall be accepted provided that the relationship did not influence the price. If, in the light of information provided by the importer or otherwise, the customs administration has grounds for considering that the relationship influenced the price, it shall communicate its grounds to the importer and the importer shall be given a reasonable opportunity to respond. If the importer so requests, the communication of the grounds shall be in writing. (b) In a sale between related persons, the transaction value shall be accepted and the goods valued in accordance with the provisions of paragraph 1 whenever the importer demonstrates that such value closely approximates to one of the following occurring at or about the same time.

·_      The transaction value in sales to unrelated buyers of identical or similar goods for export to the same Community member State;

·_      The customs value of identical or similar goods as determined under the provisions of Article 35;

(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))

Article 30.2(a) of the aforementioned CEMAC Customs Code regulates the question of whether the existence of a relationship between importer and exporter influenced prices.

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

Article 30.2(b) of the aforementioned Customs Code sets out the framework for the implementation of Article 1.2(b) of the Agreement.

(b)   Price of lost or damaged goods:

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

Yes. Articles 23 and 176 of the CEMAC Customs Code regulate the valuation of spoiled, lost, damaged, or deteriorated goods.

Article 23.1. Imported or exported products are subject to the duties and taxes listed in the Customs Tariff according to the state of the products at the time of the application of the Tariff. (2) However, the customs administration may authorize the separation of the goods which, as part of the same shipment, have been damaged as a result of events occurring prior to the submission or processing of the detailed declaration; the damaged goods must be either destroyed immediately, re-exported or consigned to a destination inside the country as the case may be, or assessed in accordance with their current condition.

Article 176.1. Duties and taxes are not due on goods which the customs authority accepts as being abandoned to it, on goods destroyed or irrecoverably lost by accident or force majeure, provided that such destruction or loss is duly established to the satisfaction of the Customs, or on shortages due to the nature of the goods when such shortages are duly established to the satisfaction of the Customs. (2) Goods deemed to be abandoned by the customs administration are sold under the same conditions as goods abandoned by compromise settlement. (3) Any waste or scrap remaining after destruction shall be liable, if taken into home use or exported, to the duties and taxes that would be applicable to such waste or scrap imported or exported in that state.

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

Article 34 of the CEMAC Customs Code provides for the reversal of the order of application of the valuation methods set out in paragraphs 4 and 5 (the deductive method and the computed method), at the request of the importer.

Article 34. If the customs value of the imported goods cannot be determined under the provisions of Articles 30, 32 and 33, the customs value shall be determined under the provisions of Article 35 or, when the customs value cannot be determined under that Article, under the provisions of Article 36 except that, at the request of the importer, the order of application of Articles 35 and 36 shall be reversed.

3._      How has Article 5.2 been implemented?

Article 35.2 of the CEMAC Customs Code provides for the application of Article 5.2, whether the importer requests it or not.

Article 35.2. If neither the imported goods nor identical nor similar imported goods are sold in the country of importation in the condition as imported, then the customs value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons in the State of importation who are not related to the persons from whom they buy such goods, due allowance being made for the value added by such processing and the deductions provided for in paragraph 1(a) of this article.

4._      4. How has Article 6.2 been implemented?

Article 36.2 of the CEMAC Customs Code provides for the implementation of this provision.

Article 36.2. No member may require or compel any person not resident in its own territory to produce for examination, or to allow access to, any account or other record for the purposes of determining a computed value. However, information supplied by the producer of the goods for the purposes of determining the customs value under the provisions of this Article may be verified in another country by the authorities of the State of importation, with the agreement of the producer and provided they give sufficient advance notice to the government of the country in question and the latter does not object to the investigation.

5._      Questions concerning Article 7:

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

The provisions for determining customs value pursuant to Article 7 are set forth in Article 37.1 of the CEMAC Customs Code.

Article 37.

1. If the customs value of the imported goods cannot be determined under the provisions of Articles 30 to 36, inclusive, the customs value shall be determined using reasonable means consistent with the principles and general provisions of Article VII of the GATT 1994 and the Agreement on Implementation, and on the basis of data available in the country of importation.

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

Article 37.3 of the CEMAC Customs Code provides that:

Article 37.

3. 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.

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

Yes, these prohibitions are delineated in Article 37.2 of the CEMAC Customs Code as follows:

Article 37.

2. No customs value shall be determined under the provisions of this Article on the basis of:

(a) the selling price in the member State of importation of goods produced in such State;

(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 the provisions of Article 36;

(e) the price of the goods for export to a country other than the State of importation;

(f) minimum customs values; or

(g) arbitrary or fictitious values.

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?

Article 31 of the CEMAC Customs Code lists all the elements to be included in the customs value to be taken into account for imported goods. Cameroon also uses the Cost-Insurance-Freight (c.i.f.) price as the reference value, adjusted where appropriate, to include the other elements listed under Article 31.1, provided that they are based on objective and quantifiable data (paragraph 2).

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

Every month, the Minister for Finance publishes a decision fixing the foreign currency conversion rates to be used to determine the customs value. This decision, which is widely circulated, including in the official journal in French and in English, is notified to the various foreign trade corporations, and can be consulted on the e-GUCE digital platform.

Article 39.1 of the CEMAC Customs Code. Where the conversion of currency is necessary for the determination of the customs value, the rate of exchange to be used shall be that duly published by the competent authorities of each member State and shall reflect as effectively as possible, in respect of the period covered by each such document of publication, the current value of such currency in commercial transactions in terms of the CFAF.

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

Article 40 of the CEMAC Customs Code prohibits customs officials from disclosing confidential information, unless required to do so as part of judicial proceedings.

Article 40. All information which is by nature confidential or which is provided on a confidential basis for the purposes of customs valuation shall be treated as strictly confidential by the authorities concerned who shall not disclose it without the specific permission of the person or government providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.

9._      Questions concerning Article 11:

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

Article 358 of the CEMAC Customs Code sets out the customs appeal procedures. This is a general-purpose mechanism that covers all decisions taken by the customs administration, including on value determination.

The procedures for implementing this measure are laid down in Decision No. 35/19-UEAC-010A-CM-34 of 18 December 2020 establishing the modalities for the exercise of the right of appeal and for the creation and operation of independent arbitration commissions for customs disputes, and in Section 8 of Law No. 2020/018 of 17 December 2020 establishing the Finance Law of the Republic of Cameroon for the 2021 financial year.

(b)    How is the appellant to be informed of their right to further appeal?

Section 8 of Law No. 2020/018 of 17 December 2020 establishing the Finance Law of the Republic of Cameroon for the 2021 financial year sets out the notification conditions.

In any event, the appellant is informed by express notification from the appeals authority within 30 days from the date of notification of the disputed decision.

Section 8 of the aforementioned Finance Law for the 2021 financial year establishes three successive levels of appeal:

- the Director General of Customs;

- the Arbitration Commission for Customs Disputes; and

- the Council of Ministers of the Central African Economic Union (UEAC).

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

(a)(i) the relevant national laws;

Laws are published in the official journal in French and English.

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

The regulations are published in the official journal in French and English.

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

These are displayed publicly and notified to the persons concerned.

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

Laws are published in the official journal in French and English.

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

Specific rules regarding the valuation of imported second-hand vehicles are provided for under Act No. 3/87-cd-1323 of 14 July 1987 setting out the modalities for the valuation of vehicles currently in use being sold to consumers in the CEMAC customs area.

11._    Questions concerning Article 13:

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

Section 24.1 of Law No. 2018/022 of 18 December 2018 establishing the Finance Law of the Republic of Cameroon for the 2019 financial year provides for the possibility, for the importer, to directly remove the goods before the detailed declaration placing them under a customs regime, against deposit of a sufficient guarantee in the form of a deposit sufficient to cover customs duties and taxes for which the goods may ultimately be liable.

(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?

Article 41 of the CEMAC Customs Code states that "upon written request, the importer shall have the right to an explanation in writing from the customs administration of the member State of importation as to how the customs value of the importer's goods was determined".

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

No.

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

Articles 45 to 52 of the CEMAC Customs Code transpose the Interpretative Notes.

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

Article 31 of the CEMAC Customs Code provides a list of elements to include in the price actually paid or payable and its third paragraph states that "No additions shall be made to the price actually paid or payable in determining the customs value except as provided in this Article". Charges for interest under a financing agreement entered into by the buyer and relating to the purchase of the imported goods are not included in this list.

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?

Cameroon applies the transaction value principle provided for in paragraph 1 of the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment (G/VAL/5, Section A1).

Pursuant to the provisions of Section 2.6 (a) of the Finance Law for the 2018 financial year, the taxable value of imported software contained in a medium used to determine taxes and customs duties shall comprise the cost of this support plus that of the software.

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