Download G/VAL/W/248 - 1 - NOTIFICATION UNDER ARTICLE 22 OF THE

G/VAL/W/248
25 September 2014
(14-5376)
Page: 1/3
Committee on Customs Valuation
Original: English
NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL
AGREEMENT ON TARIFFS AND TRADE 1994
UKRAINE
Responses to the Questions from Norway posed in document G/VAL/W/199
The following submission, dated 5 September 2014, is being circulated at the request of the
Delegation of Ukraine.
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a)
What is the legal basis for the reference price system as applied by Ukraine?
Please refer both to the Customs Code of Ukraine as well as to the Customs
Valuation Agreement.
b)
Please provide a detailed description of the reference price system, including a
detailed description of how the reference prices are calculated. Describe how
often they are amended.
c)
Norway has received numerous reports of the application of differentiated
reference prices (indicative prices) for fish, and different levels of reference prices
for the same goods in different customs offices.
Can Ukraine describe what measures it has taken or will take to ensure that where
it is legally permissible to apply a reference price any such reference price is
applied uniformly all across Ukraine and equally to all importers?
d)
How does Ukraine ensure that any reference price (indicative price) is known to
the importers in advance of importation? In particular, where are such prices
published as required by Article 12 of the Customs Valuation Agreement?
Answer:
The procedure and methods of customs valuation of goods crossing the customs border of Ukraine
are determined by Chapter XI of the Customs Code of Ukraine and is based on the Agreement on
Implementation of Article VII of the GATT 1994.
Customs value of goods is determined by the declarant (Article 260 of the Customs Code) using
one of the six methods listed in Articles 267-269, 271-273 of Code, which correspond to the
methods described in Articles 1-3, 5-7 of Agreement. According to Article 266 of the Code the
main method of determining of the customs value is the method of the contract price (transaction
value) of imported goods (the cost of operation).
The basis for determining the customs value by means of methods 2-5 is the objective data
(contract price for identical, similar goods; price of imported identical, similar goods in the customs
territory of Ukraine, the prime cost of goods). If the customs value of goods cannot be
determined by sequential application of the methods, mentioned in Articles 267-269, 271-272 of
Code, it is determined by the additional method. In accordance with the provisions of Article 273
G/VAL/W/248
-2of Code customs value of imported goods is not determined on the basis, inter alia, of minimum
customs value, arbitrary or fictitious value. Thus, according to the Ukrainian legislation there is no
determination of customs value on the basis of the minimum, arbitrary or fictitious values,
including indicative or reference prices.
In practice, when customs control is conducted, in particular - the control of determination of
customs value of goods,- the customs officials use the analysis and risk management system. This
approach corresponds to the International Convention on Simplification and Harmonization of
Customs Procedures. Using the customs value of goods as the risk area is recommended by the
World Customs Organization ("Guide to the general application. Chapter 6. Customs control").
The analysis and risk management system is a software and information complex based on a
system of evaluation of the probability of legislation infringement, including in determining the
customs value of goods, and used in the analysis of the electronic version of the customs
declaration. Thus, the simultaneous use of different levels of risks for the same commodity by
different customs authorities is excluded.
At the same time, the result of the application of the analysis and risk management system is only
a recommendation for customs officials to use additional forms of customs control, including
verification of documents and data confirming customs value of goods.
e)
Article 267 provides that
"The method of definition of the customs value at the price of the contract
concerning the goods imported (cost of operation), is used in case when:"
This language is slightly different from the language of Article 1.1 of the Customs
Valuation Agreement, where it is stated that "The customs value of imported
goods shall be the transaction value (...) provided:"
Does Ukraine agree that transaction value shall be accepted in all cases, except where
the specific conditions of sub-paragraphs (a)–(d) of paragraph 1 of Article 1 of the
Customs Valuation Agreement are fulfilled?
Answer:
According to the Customs Code of Ukraine, the method for definition of the customs value at the
contract price of imported goods (transaction value) is used in all cases that meet the conditions
specified in paragraph 4 of Article 267 of the Code, which corresponds to Article 1 of the
Agreement.
However, Article 17 of Agreement stipulates that nothing in this Agreement shall be construed as
restricting or calling into question the rights of customs administrations to satisfy themselves as to
the truth or accuracy of any statement, document or declaration presented for customs valuation
purposes.
The decision of the WTO Ministerial Conference in respect of cases where customs administrations
have reasons to doubt the truth or accuracy of the declared value (Decision on Shifting the Burden
of Proof), in particular, is mentioning that:
"When a declaration has been presented and where the customs administration has reason
to doubt the truth or accuracy of particulars or of documents produced in support of this
declaration, the customs administration may ask the importer to provide further
explanation, including documents or other evidence, that the declared value represents the
total amount actually paid or payable for the imported goods, adjusted in accordance with
the provisions of Article 8. If, after receiving further information, or in the absence of a
response, the customs administration still has reasonable doubts about the truth or accuracy
of the declared value, it may, bearing in mind the provisions of Article 11, be deemed that
the customs value of the imported goods cannot be determined under the provisions of
Article 1."
G/VAL/W/248
-3These provisions are reflected adequately in the legislation of Ukraine on customs issues.
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