Customs Valuation Agreement: Reservation Concerning Application of Article 5.2 Whether or Not the Importer So Requests (Annex III: 4)

In contrast with the special provisions under Article 20.1, 20.2, Annex III: 1 & Annex III: 2, Annex III:3 & 4 are permanent exceptions if Members consented to the reservation.

Members who made a reservation under Annex III: 4 are allowed to use the prices in the importing countries, whether or not the importer agrees. A developing country Member may reserve the right to value imported goods on the basis of the unit price of post-importation sale if the goods have undergone further processing in the country of importation. In such cases, this method of valuation shall be applied whether or not the importer so requests (developed country Members can do so only upon request of the importer).


Available Smooth Transition Procedures:

Utilization by LDCs:

According to WTO records, 13 LDCs made a reservation concerning the sequential order of Articles 5 & 6. They are:

  • Bangladesh
  • Burkina Faso
  • Djibouti
  • Haiti
  • Madagascar
  • Malawi
  • Mali
  • Myanmar
  • Niger
  • Senegal
  • Togo
  • Uganda
  • Zambia

Resources:

  1. Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Customs Valuation Agreement)
  2. 2001 Doha Ministerial Decision on Implementation-related Issues and Concerns
  3. WTO document G/VAL/W/77/Rev.1, 15 October 2009, “Sixth Annual Review of the Implementation and Operation of the Agreement on Implementation and Operation of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994”
  4. Fourteenth Annual Review of the implementation and operation of the agreement on implementation of article VII of the General Agreement on tariffs and trade 1994 (G/VAL/W/171/Rev.1), 15 October 2009.
  5. Twenty-Third Annual Review of the implementation and operation of the agreement on implementation of article VII of the General Agreement on tariffs and trade 1994 (G/L/1198), 8 November 2017