Upload
colleen-parks
View
217
Download
3
Embed Size (px)
Citation preview
CUSTOMS VALUATION
Tariff and Trade Affairs Directorate
Knowledge Academy 2 – 3 July 2014
World Customs Organization
WHY CUSTOMS VALUATION?
Taxable base for Customs duty revenue
Compiling trade statistics
Monitoring quantitative restrictions
Administering preferential systems
Collecting internal taxes on imports
WHY CUSTOMS VALUATION ?
SPECIFIC DUTYCalculated on
weightvolumequantity
Customs mustweighmeasurecount
Calculation isfixedrigid
AD VALOREM DUTY Calculated on value of
the goods
Customs must appraise the value
Calculation varies with price, quality etc.
VALUATIONCUSTOMS V/S COMMERCIAL
VALUATION
the process of thought which appreciates one
thing in terms of the other CUSTOMS VALUATION:
Methodology
need for standard that must be one which can be
applied equitably to all transactions.
DEFINITION OF VALUE
Key element of any Customs valuation standard
Notional vs Positive
EVOLUTION OF VALUATION SYSTEMS
DIFFERENT AND UNSTABLE VALUATION SYSTEMS
LEAGUE OF NATIONS
1950/1953 BDV
GATT 1947 - Article VII
1947 EUROPEAN CustomsUNION STUDY GROUP
1980 GATT VALUATION AGREEMENT
1995 WTO VALUATIONAGREEMENT
WTO AGREEMENT ON CUSTOMS VALUATION
PRINCIPLES OF VALUATION Customs valuation should provide greater uniformity, certainty, fairness and neutrality thus preclude use of arbitrary or fictitious Custom valuesCustoms value should be based on, to the greatest extent possible, the transaction value. Customs value should be based on simple and equitable criteria consistent with commercial practicesValuation procedures should be of general application without distinction between sources of supplyValuation procedures should NOT be used to combat dumping
ECONOMIC RATIONAL OF THE AGREEMENT
The effect of tariff concessions must not be derogated by non-tariff barriers, e.g. an arbitrary Customs valuation regime
An arbitrary valuation system has the same trade restrictive effect as an increase in the tariff
WCO’S ROLE IN THE IMPLEMENTATION OF THE VALUATION AGREEMENT
MEMBERS’ CONCERNS
Members’ concerns with regard to the consequences of implementing the Agreement relate to : • loss of fiscal revenue; • commercial fraud (under-valuation, double
invoicing…); • price used between related persons in a
commercial transaction, etc.
WCO’s ROLE
• Service the Technical Committee on Customs Valuation (TCCV)
• Provide technical assistance
• Provide capacity building to Members
11
TECHNICAL COMMITTEE ON CUSTOMS VALUATION (TCCV)
The function of this Committee is to ensure, at the technical level, uniformity in the interpretation and application of the Agreement.
The TCCV meets twice a year and examines, inter alia, technical problems arising in the day-to-day administration of Members’ Customs valuation systems.
12
TECHNICAL COMMITTEE INSTRUMENTS
13
ADVISORY OPINIONS
(40)
COMMENTARIES(25)
EXPLANATORY NOTES (6)
STUDIES (2)
CASE STUDIES (17)Total: 90
TECHNICAL ASSISTANCE PROVIDED BY THE WCO
In the framework of the objectives identified in the WCO Strategic Plan, technical assistance comprises of :
• organizing training courses, workshops and seminars at the national and regional levels;
• formulating technical advices at the request of Members; and
• developing practical tools.
14
WCO’s ROLE The WCO and the TCCV have
Developed the Revenue Package
Developed Guidelines on Post-Clearance Audit
Been reviewing the Customs Valuation Control Handbook
Partnered with other international Organizations ( WTO, OECD, ICC, etc)
15
ON GOING ISSUES
Transfer pricing
Royalties and licence fees
Global Value Chain
Payment for unlocking a function after
importation
CONCLUSION
The WCO will continue to :Provide the required technical assistance for Capacity Building to those Members who need itEncourage Members to submit to the TCCV and the WCO Secretariat practical valuation issues;Organize events on valuation issues involving interested Members and relevant international organizations as well as the private sector 17
Thank you