UNITED NATIONS
DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS
STATISTICS DIVISION
Expert Group on International Merchandise Trade Statistics
First meeting
New York, 3-6 December 2007
Presentation
WTO
Item 9: Customs Valuation
Statistical Value
and
Customs Valuation
Contact: andreas.maurer@wto.org
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Statistical Value
Value assigned to goods by the compiler of MTS
Customs value as a basis
WTO agreement on valuation
• Recommended for IMTS
• Transaction value as the customs value for
imported goods
• X: fob; M: cif
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Valuation (CIF / FOB)
Exports
FOB
Excluded
Compiling
country
Transport
insurance
Partner
country
Included
CIF
Imports
Valuation
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Transaction value
Price actually paid (invoice)
Conditions to be fulfilled:
¾ evidence of sale
¾ no restriction (on disposition or use)
¾ not subject to additional conditions
¾ full price, unless: proceeds of subsequent
resale, disposal...
¾ sufficient information for (possible) price
adjustments (Art. 8)
¾ buyer and seller not related, or...
¾ related parties (Art. 15)
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Transaction value
Price actually paid (invoice)
Article 8 (payments that can be added):
¾ commissions, brokerage, except buying commissions
¾ costs of, and charges for, packing and containers
¾ assists, i.e. goods and services supplied free or at reduced
cost by buyer for use in the production of imported good
¾Royalties and licence fees
¾Subsequent proceeds of any sale accruing to the seller as a
result of the resale or use of imported good
¾Cost of transport, insurance and related charges to the place
of importation
But not:
¾ freight after importation
¾ cost of construction, assembly... After importation
¾Duties and taxes of the importing country
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Transfer pricing
Price actually paid (invoice)
For transactions
at arms-length
between related parties
¾ customs to ascertain relationship and
circumstances of transaction,
if doubt: value accepted
¾ if importer demonstrates that transaction
occurred at about the same value between
unrelated parties in past
¾ deductive or computed values of
identical/similar goods
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in case of doubts...as to the truth or accuracy
“Decision on Shifting the Burden of Proof”
First step: Customs requires further explanation
Second step: Customs applies alternative method
Transaction value of identical goods
Transaction value of similar goods
Deductive value
Computed value
Fall-back method
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Transaction value of identical goods
Calculated in same manner as transaction value
Conditions to be fulfilled:
¾ goods are the same in all respects (physical
characteristics, quality, etc.)
¾ produced in same country by same producer
Exception:
¾ produced by different produces in same
country
¾ minor differences
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Transaction value of similar goods
Calculated in same manner as transaction value
Conditions to be fulfilled:
¾ goods closely resembling goods valued
¾ goods capable performing same functions
¾ goods produced in the same country, by
same producer, imported at same time
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Deductive value
Deduction of value from the price of greatest
aggregate quantity sold
Conditions to be fulfilled:
¾ unit sales price in domestic market of
imported good at which goods are sold
¾ sales price less
commissions
transport and insurance costs,
customs duties
value added by assembly or further
processing
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Computed value
Production cost + profits + expenses
¾ production cost (value of materials and
fabrication)
¾ profit and general expenses
¾ other expenses
transport (to place of importation)
loading, unloading and handling charges
cost of insurance
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Fall-back method
Reasonable means consistent with available data
Valuation criteria not to be used
¾ selling price of goods manufactured in the country of
importation
¾ higher of two alternative values
¾ price of goods in the country of exportation
(= anti-dumping)
¾ cost of production
¾ price of goods for export to a third country
¾ minimum customs values (developing countries)
¾ arbitrary or fictitious values
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Exchange rate
unit of account = national currency unit
Exchange rate for conversion
¾ effective at time of exportation/importation
¾ midpoint between buying/selling rate
¾ n.a., average rate of shortest available period
Multiple official exchange rates
¾ use actual rate applicable to specific transaction
Parallel/black market exchange rates
¾ record separately
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Implementation
Factors that impact
infrastructure
¾ lack of financial, human, technological resources
¾ staff competencies (tools, turnover, training, etc.)
economic
¾ loss of custom revenues as major income source
¾ informal trade
political
¾ will to introduce new measures
technical assistance
¾ (valuation, risk management, trade facilitation)
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