Study Guide

Article 17 of the Agreement gives Customs the authority to review and investigate declarations of value. WTO negotiators reinforced this during the Uruguay Round by issuing a decision that clearly places the burden of proof on the declarant; it is the importer's responsibility to demonstrate the truth and accuracy of the declared value.

A practical challenge for Customs is establishing sufficient reason to doubt a declared value. The Agreement sets no specific parameters for this; Customs administrations exercise their own judgment, informed by risk assessment criteria. A common trigger is a significant difference between the declared value and prices observed in previous importations or held in historical databases.

Where such differences exist, further investigation may be warranted. However, Customs must exercise this authority carefully and put forward well-founded reasons before pursuing an enquiry. The intent is not to restrict Customs officers from acting on legitimate professional judgment, it is to ensure that enquiries are based on reasoned grounds rather than arbitrary suspicion.