Study Guide

From 1947 onwards, governments met at regular intervals (known as Rounds) to refine the trading rules under GATT.

During the Tokyo Round (1973–1979), Customs valuation was identified as a barrier to trade, specifically a non-tariff barrier (NTB). The problem was that, over the years, customs administrations had developed different rules and practices for valuing goods, and that inconsistency itself got in the way of trade.

The solution was to build an entirely new system: the GATT Valuation Code, which came into effect in 1981.

The last GATT Round, the Uruguay Round, led to the creation of the WTO in 1995. As part of those final negotiations, the GATT Valuation Code was brought into the WTO Agreement. It is now one of the compulsory agreements that every WTO member must sign up to, and its full title is the Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade, or simply the WTO Valuation Agreement.

The WTO Agreement is built on fairness, neutrality, and uniform treatment. It is rules-based and uses simple, equitable criteria designed to facilitate trade.

GATT established 1947

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Tokyo Round 1973-1979: valuation identified as NTB

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GATT Valuation Code In effect 1981

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Uruguay Round Final GATT round

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WTO established 1995: Agreement compulsory

Two committees provide international oversight to make sure the WTO Valuation Agreement is applied correctly:

·         The WTO Valuation committee meets at WTO headquarters in Geneva and reviews the broad policy issues around how members implement and apply the Agreement.

·         The Technical Committee on Customs valuation meets at the headquarters of the WCO in Brussels (formerly the Customs Cooperation Council, or CCC) and helps customs administrations worldwide apply the Customs valuation rules in a standardized, uniform way.

Note: Article 18 sets out the institutions responsible for administering the Customs valuation Agreement. Annex II outlines the specific responsibilities of the Technical Committee.