![]() This price, plus adjustments for certain elements listed Specified circumstances, be based on the actual price of the goods to be valued, which is The Agreement stipulates that customs valuation shall, except in Lay down conditions for the valuation of goods for internal taxation or foreign exchangeīack to top Basic principle: Transaction value It does not contain obligations concerning valuation for purposes ofĭetermining export duties or quota administration based on the value of goods, nor does it This Agreement is essentially the same as the Tokyo Round Valuation Code andĪpplies only to the valuation of imported goods for the purpose of levying ad valoremĭuties on such goods. Implementation of Article VII of the GATT 1994 following conclusion of the Uruguay The Tokyo Round Code was replaced by the WTO Agreement on Valuation Code was signed by more than 40 contracting parties. As a stand-alone agreement, the Tokyo Round In the Brussels Definition of Value (BVD). This differs from the notional value used Based on the transaction value, it was intended to provide aįair, uniform and neutral system for the valuation of goods for customs purposes,Ĭonforming to commercial realities. Positive system of Customs Valuation based on the price actually paid or payable for the Implementation of Article VII of the GATT, concluded in 1979, established a ![]() The Tokyo Round Valuation Code, or the Agreement on Valuation method was needed which would harmonize the systems of all countries. It was clear that a more flexible and uniform New and rare products were often notĬaptured in the lists, which made determination of the normal price difficult. This methodĬaused widespread dissatisfaction among traders, as price changes and competitiveĪdvantages of firms were not reflected until the notional price was adjusted by theĬustoms office after certain periods of time. Factual deviations from this price were onlyįully taken into account where the declared value was higher than the listed value.ĭownward variations were only taken into account up to 10 per cent. Market price, defined as the price that a good would fetch in an open market betweenĪ buyer and seller independent of each other, was determined for each product,Īccording to which the duty was assessed. Starting in the 1950s, customs duties were assessed by manyĬountries according to the Brussels Definition of Value (BVD). grandfather clauses permitted continuation of old standards which did not even Still permitted the use of widely differing methods of valuing goods. Although Article VII also contains a definition of actual value, it Not be based on the value of merchandise of national origin or on arbitrary or fictitious Of the imported merchandise on which duty is assessed, or of like merchandise, and should The value for customs purposes of imported merchandise should be based on the actual value Is essential to determine the duty to be paid on an imported good.Īrticle VII of the General Agreement on Tariffs and Trade laidĭown the general principles for an international system of valuation. ![]() If the rate of duty is ad valorem, the customs value 5 per cent) in order to arrive at theĪmount of duty payable on an imported item.Ĭustoms valuation is a customs procedure applied to determine Multiplied by an ad valorem rate of duty (e.g. Under this system, the customs valuation is In contrast, an ad valorem duty depends on the value of a good. Valuation are needed and the Valuation Agreement does not apply. The customs value of the good does not need to be determined, as the duty is notīased on the value of the good but on other criteria. In case of a specific duty, a concrete sum isĬharged for a quantitative description of the good, for example USD 1 per item or per Back to top Specific and ad valorem customs dutiesĬustoms duties can be designated in either specific or ad ![]()
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