General Agreement on Tariffs and Trade 13

General Agreement on Tariffs and Trade

 

Article VII
Valuation for Customs Purposes

1. The contracting parties recognize the validity of the general
principles of valuation set forth in the following paragraphs of this
Article, and they undertake to give effect to such principles, in respect
of all products subject to duties or other charges or restrictions on
importation and exportation based upon or regulated in any manner by
value. Moreover, they shall, upon a request by another contracting party
review the operation of any of their laws or regulations relating to
value for customs purposes in the light of these principles. The
CONTRACTING PARTIES may request from contracting parties reports on steps
taken by them in pursuance of the provisions of this Article.

2. (a) The value for customs purposes of imported merchandise should be
based on the actual value of the imported merchandise on which duty is
assessed, or of like merchandise, and should not be based on the value of
merchandise of national origin or on arbitrary or fictitious values.

(b) “Actual value”should be the price at which, at a time and place
determined by the legislation of the country of importation, such or like
merchandise is sold or offered for sale in the ordinary course of trade
under fully competitive conditions. To the extent to which the price of
such or like merchandise is governed by the quantity in a particular
transaction, the price to be considered should uniformly be related to
either (i) comparable quantities, or (ii) quantities not less favourable
to importers than those in which the greater volume of the merchandise is
sold in the trade between the countries of exportation and importation.

(c) When the actual value is not ascertainable in accordance with
sub-paragraph (b) of this paragraph, the value for customs purposes
should be based on the nearest ascertainable equivalent of such value.

3. The value for customs purposes of any imported product should not
include the amount of any internal tax, applicable within the country of
origin or export, from which the imported product has been exempted or
has been or will be relieved by means of refund.

4. (a) Except as otherwise provided for in this paragraph, where it is
necessary for the purposes of paragraph 2 of this Article for a
contracting party to convert into its own currency a price expressed in
the currency of another country, the conversion rate of exchange to be
used shall be based, for each currency involved, on the par value as
established pursuant to the Articles of Agreement of the International
Monetary Fund or on the rate of exchange recognized by the Fund, or on
the par value established in accordance with a special exchange agreement
entered into pursuant to Article XV of this Agreement.

(b) Where no such established par value and no such recognized rate of
exchange exist, the conversion rate shall reflect effectively the current
value of such currency in commercial transactions.

(c) The CONTRACTING PARTIES, in agreement with the International
Monetary Fund, shall formulate rules governing the conversion by
contracting parties of any foreign currency in respect of which multiple
rates of exchange are maintained consistently with the Articles of
Agreement of the International Monetary Fund. Any contracting party may
apply such rules in respect of such foreign currencies for the purposes
of paragraph 2 of this Article as an alternative to the use of par
values. Until such rules are adopted by the CONTRACTING PARTIES, any
contracting party may employ, in respect of any such foreign currency,
rules of conversion for the purposes of paragraph 2 of this Article which
are designed to reflect effectively the value of such foreign currency in
commercial transactions.

(d) Nothing in this paragraph shall be construed to require any
contracting party to alter the method of converting currencies for
customs purposes which is applicable in its territory on the date of this
Agreement, if such alteration would have the effect of increasing
generally the amounts of duty payable.

5. The bases and methods for determining the value of products subject to
duties or other charges or restrictions based upon or regulated in any
manner by value should be stable and should be given sufficient publicity
to enable traders to estimate, with a reasonable degree of certainty, the
value for customs purposes.

Article VIII
Fees and Formalities connected with Importation and Exportation

1. (a) All fees and charges of whatever character (other than import and
export duties and other than taxes within the purview of Article III)
imposed by contracting parties on or in connexion with importation or
exportation shall be limited in amount to the approximate cost of
services rendered and shall not represent an indirect protection to
domestic products or a taxation of imports or exports for fiscal
purposes.

(b) The contracting parties recognize the need for reducing the number
and diversity of fees and charges referred to in sub-paragraph (a).

(c) The contracting parties also recognize the need for minimizing the
incidence and complexity of import and export formalities and for
decreasing and simplifying import and export documentation requirements.

2. A contracting party shall, upon request by another contracting party
or by the CONTRACTING PARTIES, review the operation of its laws and
regulations in the light of the provisions of this Article.

3. No contracting party shall impose substantial penalties for minor
breaches of customs regulations or procedural requirements. In
particular, no penalty in respect of any omission or mistake in customs
documentation which is easily rectifiable and obviously made without
fraudulent intent or gross negligence shall be greater than necessary to
serve merely as a warning.

4. The provisions of this Article shall extend to fees, charges,
formalities and requirements imposed by governmental authorities in
connexion with importation and exportation, including those relating to:

(a) consular transactions, such as consular invoices and certificates;
(b) quantitative restrictions;
(c) licensing;
(d) exchange control;
(e) statistical services;
(f) documents, documentation and certification;
(g) analysis and inspection; and
(h) quarantine, sanitation and fumigation.

 

Conclusion

Notes

See Also

References and Further Reading

About the Author/s and Reviewer/s

Author: international

Mentioned in these Entries

General Agreement on Tariffs and Trade, country.


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