The World Trade Organization (WTO) Valuation Agreement was first established in 1980 to provide a fair and transparent system for determining the value of goods for customs purposes. Since then, it has undergone several revisions, with the latest taking place in 2015. This agreement is crucial for trade between countries as it ensures that imports and exports are taxed appropriately.
The Valuation Agreement consists of six articles that outline the principles and procedures for determining the value of goods. Here is a summary of each article:
Article 1: General Provisions
This article lays out the basic principles of the Valuation Agreement. It states that the value of goods for customs purposes shall be based on the transaction value, which is the price paid or payable for the goods in question.
Article 2: Transaction Value
This article further defines the transaction value and the circumstances in which it may be used. It also outlines the conditions under which adjustments to the transaction value may be made.
Article 3: Deductive Value
If the transaction value cannot be used to determine the value of goods, this article outlines the deductive value method. This involves deducting certain costs from the price at which the goods are sold in the importing country.
Article 4: Computed Value
If neither the transaction value nor the deductive value method can be used, this article outlines the computed value method. This involves calculating the cost of production of the goods, plus any additional costs associated with bringing them to the importing country.
Article 5: Fall-back Method
If none of the previous methods can be used to determine the value of goods, this article outlines the fall-back method. This involves using any reasonable means to determine the value of similar goods.
Article 6: Administration of the Agreement
This final article outlines the responsibilities of WTO members in administering the Valuation Agreement. It also establishes a Committee on Customs Valuation to monitor its implementation and to provide guidance to members.
In conclusion, the WTO Valuation Agreement is a critical international agreement that ensures a fair and transparent system for determining the value of goods for customs purposes. Its six articles provide a comprehensive framework for determining the value of goods, and for resolving disputes between WTO members. As a professional, you can ensure that any articles related to the WTO Valuation Agreement are informative and well-structured, helping to increase their visibility and reach online.