Like many important innovations, the WTO Customs Valuation Agreement is based on a very simple idea: it is in the interest of customs administrations and traders that trade in goods be taxed on the basis of the realities of ongoing commercial transactions. This is the „transaction value method“, which is the main customs valuation method in the agreement. Customs legislation generally gives the administration the power to request all information that may be relevant for the determination of the import value. Brief information on customs valuation Links to the WTO Customs Valuation section Understanding the WTO Guide. On the one hand, most Governments of developing countries have recognized the benefits of removing barriers to trade. On the other hand, Customs administrations often strive to upgrade the systems and staff necessary to combat valuation fraud in a more relaxed regulatory environment. Valuation fraud is a serious problem in most countries, particularly in developing countries, which have relatively high rates of tariffs and other value taxes on imported products. It is often compounded by a generally poor level of tax compliance throughout the country, the tendency of many importers to deliberately keep bad records, and the existence of „special relationships“ with suppliers.87 One of the views expressed by officials in many developing countries is that WTO rules require an administration to accept the declared value of transactions (even if this is manifestly inappropriate). unless the authenticity of the attached invoice cannot be clearly refuted by the authorities.
That is not what we will see soon. The WTO agreement granted developing countries the right to delay the implementation of the valuation rules for a maximum period of five years from the date of entry into force of the agreement justifying that country`s accession to the WTO.90 developing countries that decided to delay the application of the agreement had to inform the Director-General of the WTO. Most developing countries have requested such a delay, but their five-year grace period ended in 2000. 2. An initial right of appeal without penalty may be invoked before an authority of the customs administration or an independent body, but the legislation of each Member shall provide for the right to appeal to a judicial authority without penalty. Compliance with the assessment agreement is important for the United States. Exporters, in particular to ensure that market access opportunities offered by tariff reductions are not compromised or nullified by unjustified and inappropriate „increases“ in the customs value of dulyed goods. The use of arbitrary and inappropriate „increases“ in the valuation of goods by importing countries in the application of tariffs can lead to an unjustified doubling or tripling of tariffs. (b) a system providing for the tariff acceptance of the higher value of two alternative values; There are other provisions of the agreement that developing countries can use if they wish.
The development of an organizational structure to support effective monitoring of evaluation requires a balance between the need to provide information and services (at the local level) and the need for trained specialists who can interpret the law and identify problem areas. . . .