The status of the Code and the inclusion in national legislation

Abstract

Article VII of the GATT in particular is further developed in the Code. This article (included as annex 1) contains, among others, the following principles for customs valuation:

• a. fixed bases and methods should be applied, while being made known in a sufficiently wide circle in order to enable traders to estimate the value to be declared with a reasonable degree of certainty;

• b. the value for customs purposes should be based on the actual value of the merchandise on which duty is assessed or of like merchandise;

• c. ‘actual value’ should be taken to be the price at which the imported merchandise or like merchandise is sold or offered for sale in the ordinary course of trade under fully competitive conditions;

• d. if no actual value is available, customs value should be based on the nearest equivalent of such value;

• e. the value for customs purposes may not be based on the value of merchandise of national origin or on arbitrary or fictitious values;

• f. foreign currency should be converted into national currency in accordance with internationally agreed exchange rates. If no such rates are available the conversion rate should effectively reflect the current value of such currency.