The World Trade Organization (WTO) Customs Valuation Agreement is a multilateral agreement that establishes rules for determining the customs value of goods traded across international borders. The agreement sets out the methods for determining the value of imported goods for customs purposes, ensuring that the appropriate tariffs and duties are applied accurately and consistently.
The agreement was first established in 1979, and it was revised in 1994 as part of the Uruguay Round of negotiations that led to the creation of the WTO. The agreement is now part of the WTO`s core rules, and it applies to all member countries.
One of the key principles of the WTO Customs Valuation Agreement is that the customs value of imported goods must be based on the transaction value of the goods. This means that the value of the goods for customs purposes should be the price actually paid or payable for them in a commercial transaction between the importer and the exporter.
However, in cases where the transaction value cannot be determined or is not reliable, the agreement provides for alternative methods for calculating the customs value. These methods include the transaction value of identical or similar goods, deductive value, computed value, and fallback methods.
The WTO Customs Valuation Agreement also includes provisions for assisting developing countries in implementing the agreement. These provisions allow developing countries to use simplified methods for determining customs value, and they provide technical assistance and training to help these countries build capacity in customs valuation.
Overall, the WTO Customs Valuation Agreement plays an important role in facilitating international trade by providing clear and consistent rules for determining customs value. By ensuring that tariffs and duties are applied accurately and fairly, the agreement helps to create a level playing field for businesses engaged in cross-border trade. As such, it is an essential component of the global trading system and is a key tool for promoting economic growth and development.
