Customs Valuation and the World Trade Organization Roy Santana

Transcription

2nd WCO GLOBAL AEO CONFERENCE
Madrid, Spain , 28 – 30 April 2014
Customs Valuation and the
World Trade Organization
Roy Santana
Market Access Division
1
Organization
/ Market
Access
Division/ /154
154Rue
Rue de Lausanne,
Geneva
21, 21,
Switzerland
/ [email protected]
WorldWorld
TradeTrade
Organization
/ Market
Access
Division
Lausanne,1211
1211
Geneva
Switzerland
/ [email protected]
Structure of this presentation:
A. Why Customs Valuation at the WTO?
B. Main principles of the Agreement on
Customs Valuation
C. The Committee on Customs Valuation and
the Technical Committee
D. (2013) Agreement on Trade Facilitation
2
World Trade Organization / Market Access Division / 154 Rue de Lausanne, 1211 Geneva 21, Switzerland / [email protected]
A. Why Customs Valuation at
the WTO?
3
Can WTO Members “protect” their industries?
• Yes.
But only through import duties
(tariffs), which are the backbone of the
system.
• Most
other measures, also known as
non-tariff measures (NTMs), are either:
• Generally prohibited (for
quantitative restrictions), or
example
• Regulated to ensure that they are not
arbitrarily used to discriminate or as a
disguised form of protectionism (for
example, SPS and TBT measures; trade
remedies).
4
Most WTO Agreements seek to regulate NTMs
GATT 1994
Understandings
Marrakesh Protocol
Multilateral Agreements on:
Annex
1A
Multilat.
Trade
Agrs. on
Goods
Agriculture
Antidumping
Sanitary and
Phytosanitary measures
Customs Valuation
Safeguards
Rules of origin
Technical Barriers to
Trade
Trade-related investment
measures
Import Licensing Procedures
Preshipment inspection
Subsidies and
countervailing measures
5
How much should I pay?
It is normally necessary to know at least 3 things:
6
Why rules?
Types
of duties
Is the value2.of
the
goods A.needed?
Type of duty
Ad valorem
Specific
Compound
Mixed
“Technical”
Example
• 5%
• $5 per kg
• 10% + $2 per kg
• 10% or $2 per kg, whichever is higher
• 8.3 + EA MAX 18.7 + AD S/Z
7
Example
Rate of duty
x
specified
Value of
imported
goods
A. Why rules?
= Customs duty
Example:
15%
$1.000 =
x $2.000
$300
$150
Rules are needed to preserve the value
of tariff concessions!
8
B. History of the rules
Uruguay Round (1994)
1. Agreement on the Implementation of Article VII of the GATT
1994, a.k.a. the “Customs Valuation Agreement”
2. Decision Regarding Cases Where Customs Administrations
Have Reasons to Doubt the Truth or Accuracy of the
Declared Value
3. Decision on Texts Relating to Minimum Values and Imports
by Sole Agents, Sole Distributors and Sole Concessionaires
CCV added (1995)
4. Decision Concerning the Interpretation (x5) and the
Administration (x4) of the Agreement (G/VAL/5)
9
B. The Committee on Customs
Valuation and the
Technical Committee
10
General Principles (1)
“Recognizing the need for a
Preamble
- Fair,
- Uniform and
- Neutral system
For the valuation of goods for
customs purposes that precludes
the use of arbitrary or fictitious
customs values”
11
General Principles (2)
1. Primacy of transaction value
2. Uniformity in valuation
Preamble
3. Fairness and neutrality
4. Simple and equitable criteria
5. Consistency with commercial
practice
12
Content of the Agreement
• Valuation Methods
(Art. 1-8)
• Currency conversion
(Art. 9)
• Confidentiality
(Art. 10)
• Right of Appeal
(Art. 11)
• Publication
(Art. 12)
• Release of goods
(Art. 13)
• Definitions
(Art. 15)
• Written explanation
(Art. 16)
The annexes are really important!
13
Reasonable doubts about the
truth of the importer’s declaration
• Customs may ask importer for
additional information/documentation
• Customs must inform importer
of its reasons for doubting
• Customs must give importer
reasonable opportunity to respond
Art. 17
+
WTO
Decision
• Customs must inform importer
in writing of final decision
• Transaction value can be rejected
14
Thailand – Cigarettes (Philippines) (DS371)
Panel Findings:
Procedural steps to determine Transaction Value
1.Importer declares a transaction value
2.Customs examines the circumstances of the sale
(only if it has doubts about the validity)
3.Customs examines information provided by importer;
obligation to communicate grounds for doubts
4.Customs gives reasonable opportunity to respond;
importer submits further information
5.Customs makes a final decision on the value; provides
written explanation if importer requires (it is not only a
formal, but also a substantive obligation)
15
Sequence MUST be followed
Authorized Valuation Methods
1
• Transaction value
2
• TV of identical goods
3
• TV of similar goods
4
• Deductive value
5
• Computed value
6
• Fall-back
Normally
importer’s
option
16
Prohibited Valuation Methods
(Article 7)
1. Selling price of goods domestically produced
2. Higher of two alternative values
3. Price of goods in the domestic market of the
country of exportation
4. Cost of production other than
computed values
5. The price of goods for export to
a country other than the country
of importation
6. Minimum customs values
7. Arbitrary and fictitious values
17
Transaction Value
(Article 1)
“CV of imported goods shall
be the transaction value”
1. Price
actually
paid or
payable
(PAPP)
2. For the
goods
3. When
sold for
export
4.
Adjusted
(Art. 8)
18
In practice:
+
-
+
=
• PAPP
(generally, but not always,
the price in the invoice)
• Allowed deductions
(if not already included)
• Additions of Article 8
(if not already included)
• Customs value
Total payment, whether direct or indirect, made or
to be made, for the imported goods by the buyer
to, or for the benefit of, the seller.
19
“Related parties”:
Why does it matter?
The concept of “transaction
value” relies on competing
businesses to freely negotiate
the fair market value of imported
merchandise. This system works
well in a free market where
businesses maximize their profit.
When companies are related,
however, this may, or may not,
be the case.
Article
15.4
20
C. The Committee on Customs Valuation
and the Technical Committee
21
The CVA established two Committees:
Committee
on Customs
Valuation
(CCV)
“Technical
Committee” on
Customs
Valuation
(TCCV)
22
WCO - Technical Committee
CVA, Article 18.2 and Annex II
Task: To ensure the uniform application of the agreement at the technical level
Instrument
Description
Advisory
opinion
Answers a question on a specific set of facts
(actual or theoretical)
No.*
Commentary A series of comments on part of the text of the
agreement; supplement with additional
guidance, including examples. Applies to a
number of situations.
46
25
Explanatory
note
Answers a question of a general nature arising
from one or more provisions in the Agreement;
may also examine trade practices.
6
Case study
Exposition of complex set of facts based on an
actual commercial transaction; used to
demonstrate practical application
17
Study
Result of an examination in some depth of any
question relating to the Agreement
2
23
WTO - Committee
CVA, Article 18.2 and Annex II
Tasks:
1. “Afford Members the opportunity to consult on
matters relating to the administration of the
customs valuation system by any Member”
(CVA, Art. 18.1)
2. Oversee the operation of the Agreement
3. Review of notifications, e.g. national legislation
All information (including most legislations) is publicly available:
https://docs.wto.org (Document symbol: “G/VAL/”)
24
D. Agreement on Trade
Facilitation
25
Trade Facilitation
9 billion documents
each year to process
movement of goods!
 Companies sometimes spend more money
complying with customs regulations than the
revenue earned by customs administration
26
Time is money!
Documents
required to
import goods
(average No.)
Time to comply with
all procedures to
export and import
goods (days)
East Asia &
Pacific
7.1
23.1
24.3
CEECAC
MENA
7.8
7.4
26.8
22.5
28.4
25.9
OECD
4.9
10.5
11.0
Source: World Bank, Doing Business 2010
27
Article 3 - Advance Rulings
What ?
Written decision provided by a Member to an
applicant prior to the importation of a good.
It sets forth the good’s tariff classification,
and origin (Art.3.9).
Members are encouraged to provide, inter
alia, the method or criteria used for customs
value (see Art. 3.9(b))
Time
Delivered in a reasonable, time bound
manner…
Other
Binding on that Member in respect of the
applicant that sought it.
28
Article 4: Appeal or Review Procedures
On what?
• Administrative decision issued to any
person on customs issues
Who?
• Administrate authority higher than or
independent of the official that issued
the decision, and judicial appeal or
review.
How?
• Non-discriminatory manner
• Within set period in the law, or without
undue delay
29
Article 5.1: Preshipment Inspection
“Members shall not require the use of preshipment inspections in relation to tariff
classification and customs valuation.”
Article 7: Release & clearance of goods (1)
1.
Pre-arrival
processing
2.
Electronic
payment
3.
4.
Separation of
Risk
release from
Management
final
determination
31
Article 7: Release & clearance of goods (2)
5.
Postclearence
audit
6.
Average
release time
7.
Trade
Facilitation
Measures for
Authorized
Operators
8.
Expedited
Shipments
9.
Perishable
Goods
32
Article 10.4: Single Window
OGAs
CUSTOMS
WHARFINGER
OGAs
CARRIER
CUSTOMS
HAULIER
1
0
0
CUSTOMS
BROKER
PORT
AUTHORITY
LINE
AGENT
CONSIGNE
E
CARRIER
WHARFINGER
HAULIER
Single
Window
CUSTOMS
BROKER
LINE
AGENT
CONSIGNEE
CONSIGNOR
CONSIGNOR
FROM
PORT
AUTHORITY
TO
Thank you!
Roy Santana
Market Access Division
[email protected]
34

Customs Valuation and the World Trade Organization Roy Santana

Transcription

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