Study Guide

Article 13 of the Agreement allows an importer to withdraw imported goods from Customs before the valuation process is complete. Customs cannot detain goods simply because valuation has not been finalized.

Some of the more common situations where the issue of release might arise include:

Situation	Description
Price undetermined	The price actually paid or payable cannot be determined.
No sale	No sale has taken place.
Non-transaction method	The method declared by the importer is other than transaction value.
Article 8 unavailable	Elements under Article 8 are unavailable at the time of importation.
Special situations	Split shipments or price escalation arrangements apply.
Goods on consignment	Goods are imported on consignment prior to sale.
Test value	The declarant has submitted a test value.

Customs must release the goods provided the importer or their agent furnishes sufficient guarantee or surety to cover any duties and taxes that may be owed when the value is finally determined. Once goods are released, the importer has full use of them - in production, for resale, or for export. The importer's only obligation is to maintain and make available any documentation needed for the correct determination of Customs value.

Key point: implications of release on guarantee Before releasing goods on guarantee, Customs must have verified the importer's identity as a legal entity: their place of business, address, and registration number. The importer must maintain records and books accessible to Customs and provide the names of officers and managers. Once goods are released, Customs must be able to track and account for all related entry documents and any duties owed. A follow-up system must be in place to ensure each entry is either fully acquitted or the bond or surety is cashed.

Release on guarantee is one of the main trade facilitation features that distinguishes the WTO valuation system from other valuation systems. Under traditional Customs practice, goods were held until any valuation dispute was resolved which was a significant burden on importers who needed access to their goods.

Not all countries have banking or insurance systems developed enough to support formal guarantee or surety arrangements. Where this is the case, many Customs administrations have introduced interim measures that allow importers to defer full payment of duties and taxes while retaining full use of the goods during the dispute resolution process.