This
Agreement was not subject to negotiation in the Uruguay Round.
It has been included for reasons of completeness and because of
its relation to the Decision and the two texts described in the
section of this paper relating to Ministerial Decisions.
Customs
valuation practices have on occasion been found to have a more
restrictive effect on trade than the customs duty itself. In some
instances, they have created uncertainty and led to price increases
that effectively undermined the value of a tariff binding and
raised the amount of duty paid. The Tokyo Round Agreement on Customs
Valuation resolved some of these difficulties.
The
Agreement
-
provides a neutral, fair and precise system of customs valuation
which eliminates uncertainty and arbitrariness
-
facilitates customs clearance
operations
-
minimizes disputes between
the importer and the Customs Administration
-
creates a climate of confidence
More
specifically, in relation to developing countries, one of the
objectives of the Agreement is to provide improved customs valuation
systems which would be applied to developing countries' exports
when they reach their principal markets; in particular, those
of developed countries.
The
Agreement’s system of valuation follows commercial realities
as closely as possible. It sets out five methods of valuation,
which are to be applied in the following hierarchical order:
-
transaction value of the good
itself
-
that of identical goods
-
that of similar goods
-
the deductive method and
-
the computed method
Detailed
rules have been established regarding the application of these
five methods. General rules relating to the rights of customs
officials and importers, the conversion of currency, the treatment
of confidential information, the right to appeal against valuation
determination, and the publication of national laws, regulations
and judicial decisions have also been formulated.
