The Tokyo Round Valuation Code or the 1979 Agreement on Implementation of Article VII of the GATT introduced a positive system of customs valuation based on the price actually paid or payable for imported goods. On the basis of the transaction value, provision should be made for a fair, uniform and neutral system of valuation of goods for customs purposes, in accordance with commercial conditions. This value differs from the nominal value used in the definition of the Brussels value (BVD). As a stand-alone agreement, the Tokyo Round Evaluation Code has been signed by more than 40 parties. Article VII of the General Agreement on Tariffs and Trade established the general principles of an international valuation system. It provided that the customs value of imported goods should be based on the actual value of the imported goods on which duty is levied or like goods and should not be based on the value of the goods of domestic origin or on arbitrary or fictitious values. Although Article VII also contained a definition of actual value, it nevertheless allowed for the use of very different methods of valuation of goods. In addition, grandfathering clauses allowed for the maintenance of old standards that did not even correspond to the new, very general standard. The above evaluation methods should be used in hierarchical order. The Convention establishes a Customs Valuation Committee composed of representatives of each Member to enable Members to consult each other on matters relating to the administration of the customs valuation system by a Member or the promotion of the objectives of the Agreement. The agreement gives customs administrations the right to request additional information from importers if they have reason to doubt the accuracy of the declared value of imported goods.

If, despite additional information, the administration retains reasonable doubts, it can be assumed that the customs value of the imported goods cannot be determined on the basis of the declared value and that customs should determine the value taking into account the provisions of the Agreement. [4] (b) `like products` means goods which, although not the same in all respects, have similar characteristics and similar materials which enable them to perform the same functions and be commercially interchangeable. The quality of the products, their reputation and the presence of a brand are among the factors to be taken into account in determining whether the products are similar; Customs valuation is the process by which customs authorities assign a monetary value to a good or service for import or export purposes. In general, the authorities are involved in this process to protect tariff concessions, collect revenue for the government agency, implement trade policy, and protect public health and safety. Tariffs and the need for customs valuation have existed for thousands of years in different cultures, with evidence of their use in the Roman Empire, Han Dynasty and Indian subcontinent. .

Posted Saturday, October 16th, 2021 at 3:31 pm
Filed Under Category: Uncategorized
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