Study Guide

4. Core administrative concepts of Customs valuation

A core concept under modern Customs procedures is placing greater responsibility on those who use Customs services to declare goods and calculate duties and taxes. Self-assessment enables importers to submit declarations electronically, directly linked to Customs computer systems. This places the responsibility for accuracy with the person who has the information. For self-assessment to work, the importer must be fully aware of their obligations in correctly declaring Customs value.

One principle of WTO Valuation requires that all information needed to determine value must be available in the country of importation. Any financial information used to determine Customs value must be prepared and presented in accordance with Generally Accepted Accounting Principles (GAAP) as recognized in the country of importation. This becomes particularly relevant when an element of value is obtained from a source outside the country of importation.

This term is fundamental to the proper application of the WTO Agreement. It refers to the evidence that must be available to support and verify all aspects of import declarations, including those relating to the valuation of imported goods. The term is generally defined in the national law of each country.

The instruments of the Technical Committee on Customs valuation provide guidelines to ensure uniform interpretation and application of national laws. Although they do not have the force of law, they are persuasive, prepared by officials with long experience in administering the WTO Valuation system, and recommended by the WCO to its members.

The instruments[1] cover a wide range of practical topics. The Technical Committee classifies them as follows:

·         Advisory Opinions

·         Commentaries

·         Explanatory Notes

·         Case Studies

·         Studies