REPORT OF THE WORKING PARTY ON
THE ACCESSION OF the hashemite kingdom of JORDAN TO THE
WORLD TRADE ORGANIZATION

Page 27-28

Customs valuation

89.   A member stated that it considered the Customs Valuation Agreement a fundamental component of the Uruguay Round Agreement.  This member encouraged Jordan to incorporate the WTO Customs Valuation Agreement into its legislation as soon as possible and certainly no later than the date of accession.

90.   The representative of Jordan said that the 1998 Customs Law, which was based on the WTO Customs Valuation Agreement, included provisions on customs valuation in its Articles 28 to 32.  The Law required valuation based on self-declaration by importers, and stipulated that the transaction value, rather than the "normal" value be used for customs valuation purposes.  Customs duties were calculated on the basis of the c.i.f. value of imports on the registration date of the customs valuation form.  In mid-1996, a reference price database for valuation of goods had been initiated by customs, but this database no longer existed.

91.   The Customs Law No. 20 of 1998 conformed largely to the WTO Customs Valuation Agreement.  The Law contained a definition of related persons similar to that of Article 15.4 of the Customs Valuation Agreement, except that Jordanian Law limited family relation to third degree.  He confirmed that the Customs Law incorporated the Article 5.2 valuation method, and that customs practices would comply with Article 5.2 of the Customs Valuation Agreement.  The right of further appeal (beyond the Customs Court) was guaranteed by Law, and he considered Article 80 of the Customs Law, which stipulated that a decision of the Director General of the Customs Department could be contested at the Customs Court within 15 days, would meet the requirements of Article 11.3 of the Customs Valuation Agreement.  He considered the confidentiality provision in Article 10 of the Agreement to be covered by Article 175 of the Customs Law.  A provision on the valuation of lost or damaged goods would be addressed in instructions of the Minister of Finance, which would also be issued to incorporate the interpretative notes in Jordanian legislation.

92.   A member requested that Jordan provide the regulations implementing the Interpretative Notes to the WTO Valuation Agreement, stressing that Article 14 of the WTO Valuation Agreement which incorporated the Interpretative Notes as an integral part of the Agreement and the Articles of the Agreement could not be read and applied without reference to the respective Interpretative Notes.  This member also sought verification of Jordan's implementation of Decisions 3.1 (software) and 4.1 (treatment of interest charges) of the Committee on Customs Valuation and confirmation by Jordan that (i) Articles 1(d) and 1.2(a) of the WTO Valuation Agreement concerning related parties had been fully implemented in Jordan's Customs Law;  (ii) Jordan would eliminate the inconsistency identified in their deductive value provision in the Amendments to the Customs Law;  (iii) Article 31C(i) concerning implementation of other provision was designed to cover the regulations, i.e. the Interpretative Notes, software decision and interest decision;  and (iv) that Jordan would implement a provision to cover fully the confidentiality requirement of Article 10 of the WTO Valuation Agreement.

93.   The representative of Jordan replied that a review of the Customs Law No. 20 had been completed in March 1999, and Jordan had prepared draft amendments to address these points and ensure full conformity with the WTO Customs Valuation Agreement (to be submitted to Parliament in November 1999).  He confirmed that Article 1(d) and Article 1.2(a) of the Agreement concerning related parties had been fully implemented in Jordan's Customs Law, and Article 31C(i) concerning implementation of other provision was designed to cover the regulations, i.e. Interpretative Notes, software decision and interest decision.  Jordan was preparing "Instructions on Implementing Customs Valuation", addressing the interpretative notes and the valuation of software and interest charges.  These instructions would be adopted upon enactment of the Amendments to the Customs Law.

94.   The representative of Jordan confirmed that Jordan would fully apply the WTO provisions concerning customs valuation from the date of accession without recourse to a transition period, including the Agreement on the Implementation of Article VII of the GATT 1994.  In this regard, the Customs Law and its implementing regulations incorporated Annex I (Interpretative Notes) and provisions for the Valuation of Carrier Media Bearing Software for Data Processing Equipment (Decision 4.1).  The Working Party took note of these commitments.

REPORT OF THE WORKING PARTY
ON THE ACCESSION OF CHINA

Part IV, A Trading rights, page 28

10. Customs Valuation

139. Some members of the Working Party expressed concern regarding the methods used by China to determine the customs value of goods, in particular regarding the practice of using minimum or reference prices for certain goods, which would be inconsistent with the Agreement on Implementation of Article VII of the GATT 1994 ("Customs Valuation Agreement").  Other WTO consistent means were available to Members doubting the veracity of declared transaction values.

140. In response, the representative of China stated that China had ceased to use and would not reintroduce minimum or reference prices as a means to determine customs value. The Working Party took note of this commitment.

141. The representative of China considered that there would not be situations where the "customs value" could not be "ascertained" since the Customs Valuation Agreement provided several methods for valuation.

142. The representative of China recalled that the overwhelming majority of China 's customs duties were ad valorem duties. The customs value of imported goods was assessed according to the c.i.f. price based on the transaction value, as defined in the Customs Valuation Agreement. If the transaction value of imported goods could not be determined, the customs value was determined based on other means provided for in the Customs Valuation Agreement. He also noted that the Customs Law provided for appeal procedures. In the event of a dispute over calculation of duty paid or payable with the Customs, the dissatisfied importer could apply to Customs for a reconsideration of the case. If the appeal was rejected the importer could sue at the People's Court.

143. The representative of China confirmed that, upon accession, China would apply fully the Customs Valuation Agreement, including the customs valuation methodologies set forth in Articles 1 through 8 of the Agreement.  In addition, China would apply the provisions of the Decision on the Treatment of Interest Charges in Customs Value of Imported Goods, and the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment, adopted by the WTO

Committee on Customs Valuation (G/VAL/5),  as soon as practicable, but in any event no later than two years from the date of accession. The Working Party took note of these commitments.

COMMUNICAtion by EGYPT under paragraph 1 of annex III of the agreement on implementation of article vii of the general agreement on tariffs and trade 1994  
 

Decision  

TAKING NOTE of the Government of Egypt’s request under Paragraph 1 of Annex III of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (“WTO Agreement on Customs Valuation”), done at Marrakesh on 15 April 1994, to extend its delay in the application of the provisions of that Agreement;  

RECOGNIZING that on 30 June 1995, Egypt became a contracting party to the WTO Agreement on Customs Valuation and invoked paragraph 1 of Article 20 of that Agreement to delay application of its provisions for a period of five years from the date of entry into force of the Agreement on 30 June 1995, and was therefore scheduled to apply the provisions of that Agreement by 30 June 2000;  

CONSIDERING Egypt has made substantial efforts to implement the provisions of the WTO Agreement on Customs Valuation;  

CONSIDERING also that Egypt has and continues to receive technical assistance in support of implementation and application of the WTO Agreement on Customs Valuation, which is contributing significantly towards achieving that objective;  

NOTING Egypt ’s long-standing commitment and considerable efforts in reforming and modernizing its customs administration;  

NOTING also Egypt ’s objective of ensuring the effective implementation and administration of the WTO Agreement on Customs Valuation;  

NOTING that Egypt’s authorities have established a detailed work program[1], involving the relevant ministries and agency, to enable the elaboration and approval of its legislation and the completion of its domestic administrative and legal procedures, including training, dissemination of information, and other actions, for implementing and applying the WTO Agreement on Customs Valuation;  

NOTING that Egypt currently values goods on the basis of officially established minimum values only for sugar classified under HS heading 17.01.  

NOTING also Egypt’s intention not to apply such minimum values to additional products during the requested extension in the delay of its application of the WTO Agreement on Customs Valuation and Egypt’s intention not to apply official established minimum values to any products after the expiration of this requested period of delay;  

NOTING that the Government of Egypt will implement and apply by 30 June 2001 , Paragraph 2 of the Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment[2];  

NOTING, that the Government of Egypt does not use or plan to use preshipment inspection services in customs administration and valuation;  

RECOGNIZING Egypt ’s indication that this would be a single request for an extension to delay its implementation of the WTO Agreement on Customs Valuation;  

Members, acting pursuant to the provisions of paragraph 1 of Annex III of the WTO Agreement on Customs Valuation,  

DECIDE, in view of the exceptional circumstances set out above, that:  

1.                   Subject to the terms and conditions set out hereunder, Egypt may delay further the application of the provisions of the WTO Agreement on Customs Valuation for a period not extending beyond 30 June 2001 .  

2.                   The Government of Egypt shall report by 30 January 2001 to the Committee on Customs Valuation on the progress in fulfilling the work program in Attachment 1 and the status of its implementation of the WTO Agreement on Customs Valuation, as well as the terms and conditions of this Decision.  

3.                   The Government of Egypt will, by 30 July 2000 , publish and make publically available the basis, criteria and other relevant information for determining the minimum values for sugar classified under HS 17.01.  

4.                   The Government of Egypt will publish and make publically available any amendments or changes to the above-mentioned basis, criteria and other relevant information 60 days before implementing such changes, and will not apply such changes to importations entering its customs territory prior to the completion of this 60 day notification period;  

5.                   This Decision shall not prejudice the rights and obligations of Egypt under the WTO Agreements, in particular those rights and obligations under the WTO Agreement on Customs Valuation.  

WORK PROGRAMME DURING THE TRANSITIONAL PERIOD