TECHNICAL ASSISTANCE ON CUSTOMS VALUATION

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TECHNICAL ASSISTANCE ON CUSTOMS VALUATION

• PRESENTED BY JAMAICA CUSTOMS

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CHALLENGES ON IMPLEMENTING THE WTO AGREEMENT ON
CUSTOMS VALUATION

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INTRODUCTION

• Jamaica Customs was the recipient of technical
  assistance
  
• WTO Mission assessed our implementation
  activities,
  
• WCO Technical Committee on Valuation,
• UK Customs,
• Canada US Customs.

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Implementation Issues

• Limited provisions of technical assistance for
• Training of operative level personnel
• Modernization of methods of customs clearance
• Development of computer systems to provide
  effective price references
  
• Improving management techniques

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Implementation Issues

• Inadequacy of the transitional period
• The continued use of minimum values for high risk
  items
  
• Phased implementations
• vs
• Implementation Cold Turkey

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Implementation Issues

• WTO Mission to Jamaica (1999) recommended the
  following
  
• A project team with set milestones
• National Administrative Policy
• Penalty provision
• Automation of procedures
• Training Public Education

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Capacity Building
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Requirements for Capacity Planning

• Training Programmes
• Customs Personnel
• External Stakeholders
• Extensive training for valuation personnel
• Qualified Trainers
• Funding

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Technical Assistance

• APEC
• Train-the-Trainer Programme
• WCO Valuation Committee
• Senior Management Training
• UK Customs
• Procedures and manuals

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Result of Technical Assistance
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Post Implementation Challenges
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Challenges in Interpreting the Code

• The term paid as a condition of sale
• Royalty Agreements
• Licence
• Related Party Transactions
• Transfer Pricing
• Proving Family Relationship

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Challenges in Interpreting the Code

• Buying Commission
• when the agent is in the business of sourcing
  goods for any buyer.
  
• Special Discounts
• given to sole distributors and agents.

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The Complexities of Transfer Pricing

• Inherent Price Influence.
• Technical and Complex transfer pricing policies.
• The interpretation of the term as a condition of
  sale and the opportunity it presents to certain
  categories of importers.

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Royalties and Licence Fees

• The interpretation of the term paid as a
  condition of the sale
  
• Companies are rewriting contracts to
  categorically state that payment for royalties is
  not made as a condition of the sale of the goods.

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Valuation Control

• The difficulties of exercising valuation control
  in the absence of minimum values.
  
• The absence of reliable historical customs values
  to assist in the verification of values.

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Valuation Control

• Real Burden of Proof
• Cash Payments
• No paper trail
• The obligation to give an explanation for
  rejecting the declared value

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Burden of Proof and Post Clearance Verification

• No support for post clearance verification
  (approximately 40 of imports)
  

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Risk Management System

• Computerized risk management system
• Price referencing module
• Intelligence Module
• Risk Management Module
• To be commissioned March 2003
• Consultation required

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Conclusion

• The implementation of the Agreement on Customs
  Valuation is challenging
  
• Technical Assistance was limited
• Developing nations need continued assistance and
  support for successful implementation.