                 DECISION REGARDING CASES WHERE CUSTOMS
             ADMINISTRATIONS HAVE REASONS TO DOUBT THE TRUTH
                    OR ACCURACY OF THE DECLARED VALUE


      Ministers invite the Committee on Customs Valuation to take the 
following decision:

      Reaffirming that the transaction value is the primary basis of 
valuation under the Agreement on Implementation of Article VII of the GATT 
1994 (the Agreement);

      Recognizing that the customs administration may have to address cases 
where it has reason to doubt the truth or accuracy of the particulars or of 
documents produced by traders in support of a declared value;

      Emphasizing that in so doing the customs administration should not 
prejudice the legitimate commercial interests of traders;

      Taking into account Article 17 of the Agreement, paragraph 6 of Annex 
III to the Agreement, and the relevant decisions of the Technical Committee 
on Customs Valuation;

      The Committee on Customs Valuation decides as follows:

1.    When a declaration has been presented and where the customs 
administration has reason to doubt the truth or accuracy of the particulars 
or of documents produced in support of this declaration, the customs 
administration may ask the importer to provide further explanation, 
including documents or other evidence, that the declared value represents 
the total amount actually paid or payable for the imported goods, adjusted 
in accordance with the provisions of Article 8.  If, after receiving further 
information, or in the absence of a response, customs still has reasonable 
doubts about the truth or accuracy of the declared value, it may, bearing in 
mind the provisions of Article 11, be deemed that the customs value of the 
imported goods cannot be determined under the provisions of Article 1.  
Before taking a final decision, the customs administration shall communicate 
to the importer, in writing if requested, its grounds for doubting the truth 
or accuracy of the particulars or documents produced and the importer shall 
be given a reasonable opportunity to respond.  When a final decision is 
made, the customs administration shall communicate to the importer in 
writing its decision and the grounds therefor.

2.    It is entirely appropriate in applying the Agreement for one Member to 
assist another Member on mutually agreed terms.

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