AGREEMENT ON IMPLEMENTATION OF ARTICLE VI OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 Members hereby agree as follows: PART

I Article 1 Principles An anti-dumping measure shall be applied only under the circumstances provided for in Article VI of GATT !!" and pursuant to investigations initiated and conducted in accordance with the provisions of this Agreement# The following provisions govern the application of Article VI of GATT !!" in so far as action is ta$en under anti-dumping legislation or regulations# Article 2 Determination of Dumping %# &or the purpose of this Agreement' a product is to be considered as being dumped' i#e# introduced into the commerce of another country at less than its normal value' if the e(port price of the product e(ported from one country to another is less than the comparable price' in the ordinary course of trade' for the li$e product when destined for consumption in the e(porting country# %#% )hen there are no sales of the li$e product in the ordinary course of trade in the domestic mar$et of the e(porting country or when' because of the particular mar$et situation or the low volume of the sales in the domestic mar$et of the e(porting country %' such sales do not permit a proper comparison' the margin of dumping shall be determined by comparison with a comparable price of the li$e product when e(ported to an appropriate third country' provided that this price is representative' or with the cost of production in the country of origin plus a reasonable amount for administrative' selling and general costs and for profits# %#%# *ales of the li$e product in the domestic mar$et of the e(porting country or sales to a third country at prices below per unit +fi(ed and variable, costs of production plus administrative' selling and general costs may be treated as not being in the ordinary course of trade by reason of price and may be disregarded in determining normal value only if the authorities - determine that such sales are made within an e(tended period of time " in substantial .uantities/ and are at prices which do not provide for the recovery of all costs within a reasonable period of time# If prices which are below per unit costs at

The term 0initiated0 as used in this Agreement means the procedural action by which a 1ember formally commences an investigation as provided in Article /# % *ales of the li$e product destined for consumption in the domestic mar$et of the e(porting country shall normally be considered a sufficient .uantity for the determination of the normal value if such sales constitute / per cent or more of the sales of the product under consideration to the importing 1ember' provided that a lower ratio should be acceptable where the evidence demonstrates that domestic sales at such lower ratio are nonetheless of sufficient magnitude to provide for a proper comparison# )hen in this Agreement the term 0authorities0 is used' it shall be interpreted as meaning authorities at an appropriate senior level# " The e(tended period of time should normally be one year but shall in no case be less than si( months#

the time of sale are above weighted average per unit costs for the period of investigation' such prices shall be considered to provide for recovery of costs within a reasonable period of time# %#%# # &or the purpose of paragraph %' costs shall normally be calculated on the basis of records $ept by the e(porter or producer under investigation' provided that such records are in accordance with the generally accepted accounting principles of the e(porting country and reasonably reflect the costs associated with the production and sale of the product under consideration# Authorities shall consider all available evidence on the proper allocation of costs' including that which is made available by the e(porter or producer in the course of the investigation provided that such allocations have been historically utili2ed by the e(porter or producer' in particular in relation to establishing appropriate amorti2ation and depreciation periods and allowances for capital e(penditures and other development costs# 3nless already reflected in the cost allocations under this sub-paragraph' costs shall be ad4usted appropriately for those non-recurring items of cost which benefit future and5or current production' or for circumstances in which costs during the period of investigation are affected by start-up operations#6 &or the purpose of paragraph %' the amounts for administrative' selling and general costs and for profits shall be based on actual data pertaining to production and sales in the ordinary course of trade of the li$e product by the e(porter or producer under investigation# )hen such amounts cannot be determined on this basis' the amounts may be determined on the basis of: +i, the actual amounts incurred and reali2ed by the e(porter or producer in .uestion in respect of production and sales in the domestic mar$et of the country of origin of the same general category of products7 the weighted average of the actual amounts incurred and reali2ed by other e(porters or producers sub4ect to investigation in respect of production and sales of the li$e product in the domestic mar$et of the country of origin7 any other reasonable method' provided that the amount for profit so established shall not e(ceed the profit normally reali2ed by other e(porters or producers on sales of products of the same general category in the domestic mar$et of the country of origin#

%#%#%

+ii,

+iii,

%#In cases where there is no e(port price or where it appears to the authorities concerned that the e(port price is unreliable because of association or a compensatory arrangement between the e(porter and the importer or a third party' the e(port price may be constructed on the basis of the price at which the imported products are first resold to an independent buyer' or if the products are not resold to an independent buyer' or not resold in the condition as imported' on such reasonable basis as the authorities may determine#

*ales below per unit costs are made in substantial .uantities when the authorities establish that the weighted average selling price of the transactions under consideration for the determination of the normal value is below the weighted average per unit costs' or that the volume of sales below per unit costs represents not less than %8 per cent of the volume sold in transactions under consideration for the determination of the normal value# 6 The ad4ustment made for start-up operations shall reflect the costs at the end of the start-up period or' if that period e(tends beyond the period of investigation' the most recent costs which can reasonably be ta$en into account by the authorities during the investigation#

%#" A fair comparison shall be made between the e(port price and the normal value# This comparison shall be made at the same level of trade' normally at the e(-factory level' and in respect of sales made at as nearly as possible the same time# 9ue allowance shall be made in each case' on its merits' for differences which affect price comparability' including differences in conditions and terms of sale' ta(ation' levels of trade' .uantities' physical characteristics' and any other differences which are also demonstrated to affect price comparability# : In the cases referred to in paragraph -' allowances for costs' including duties and ta(es' incurred between importation and resale' and for profits accruing' should also be made# If in these cases price comparability has been affected' the authorities shall establish the normal value at a level of trade e.uivalent to the level of trade of the constructed e(port price' or shall ma$e due allowance as warranted under this paragraph# The authorities shall indicate to the parties in .uestion what information is necessary to ensure a fair comparison and shall not impose an unreasonable burden of proof on those parties# %#"# )hen the comparison under paragraph " re.uires a conversion of currencies' such conversion should be made using the rate of e(change on the date of sale;' provided that when a sale of foreign currency on forward mar$ets is directly lin$ed to the e(port sale involved' the rate of e(change in the forward sale shall be used# &luctuations in e(change rates shall be ignored and in an investigation the authorities shall allow e(porters at least 68 days to have ad4usted their e(port prices to reflect sustained movements in e(change rates during the period of investigation# *ub4ect to the provisions governing fair comparison in paragraph "' the e(istence of margins of dumping during the investigation phase shall normally be established on the basis of a comparison of a weighted average normal value with a weighted average of prices of all comparable e(port transactions or by a comparison of normal value and e(port prices on a transaction-to-transaction basis# A normal value established on a weighted average basis may be compared to prices of individual e(port transactions if the authorities find a pattern of e(port prices which differ significantly among different purchasers' regions or time periods' and if an e(planation is provided as to why such differences cannot be ta$en into account appropriately by the use of a weighted average-to-weighted average or transaction-to-transaction comparison#

%#"#%

%#/ In the case where products are not imported directly from the country of origin but are e(ported to the importing 1ember from an intermediate country' the price at which the products are sold from the country of e(port to the importing 1ember shall normally be compared with the comparable price in the country of e(port# <owever' comparison may be made with the price in the country of origin' if' for e(ample' the products are merely transshipped through the country of e(port' or such products are not produced in the country of e(port' or there is no comparable price for them in the country of e(port# %#6 Throughout this Agreement the term 0li$e product0 +0produit similaire0, shall be interpreted to mean a product which is identical' i#e# ali$e in all respects to the product under consideration' or in the absence of such a product' another product which' although not ali$e in all respects' has characteristics closely resembling those of the product under consideration# %#: This Article is without pre4udice to the second *upplementary Provision to paragraph Article VI in Anne( I to GATT !!"#
:

of

It is understood that some of the above factors may overlap' and authorities shall ensure that they do not duplicate ad4ustments that have been already made under this provision# ; =ormally' the date of sale would be the date of contract' purchase order' order confirmation' or invoice' whichever establishes the material terms of sale#

Article 3 Determination of Injury! -# A determination of in4ury for purposes of Article VI of GATT !!" shall be based on positive evidence and involve an ob4ective e(amination of both (a) the volume of the dumped imports and the effect of the dumped imports on prices in the domestic mar$et for li$e products' and (b) the conse.uent impact of these imports on domestic producers of such products# -#% )ith regard to the volume of the dumped imports' the investigating authorities shall consider whether there has been a significant increase in dumped imports' either in absolute terms or relative to production or consumption in the importing 1ember# )ith regard to the effect of the dumped imports on prices' the investigating authorities shall consider whether there has been a significant price undercutting by the dumped imports as compared with the price of a li$e product of the importing 1ember' or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases' which otherwise would have occurred' to a significant degree# =o one or several of these factors can necessarily give decisive guidance# -#)here imports of a product from more than one country are simultaneously sub4ect to anti-dumping investigations' the investigating authorities may cumulatively assess the effects of such imports only if they determine that (a) the margin of dumping established in relation to the imports from each country is more than de minimis as defined in paragraph ; of Article / and the volume of imports from each country is not negligible and (b) a cumulative assessment of the effects of the imports is appropriate in light of the conditions of competition between the imported products and the conditions of competition between the imported products and the li$e domestic product# -#" The e(amination of the impact of the dumped imports on the domestic industry concerned shall include an evaluation of all relevant economic factors and indices having a bearing on the state of the industry' including actual and potential decline in sales' profits' output' mar$et share' productivity' return on investments' or utili2ation of capacity7 factors affecting domestic prices7 the magnitude of the margin of dumping7 actual and potential negative effects on cash flow' inventories' employment' wages' growth' ability to raise capital or investments# This list is not e(haustive' nor can one or several of these factors necessarily give decisive guidance# -#/ It must be demonstrated that the dumped imports are' through the effects of dumping' as set forth in paragraphs % and "' causing in4ury within the meaning of this Agreement# The demonstration of a causal relationship between the dumped imports and the in4ury to the domestic industry shall be based on an e(amination of all relevant evidence before the authorities# The authorities shall also e(amine any $nown factors other than the dumped imports which at the same time are in4uring the domestic industry' and the in4uries caused by these other factors must not be attributed to the dumped imports# &actors which may be relevant in this respect include' inter alia' the volume and prices of imports not sold at dumping prices' contraction in demand or changes in the patterns of consumption' trade restrictive practices of and competition between the foreign and domestic producers' developments in technology and the e(port performance and productivity of the domestic industry# -#6 The effect of the dumped imports shall be assessed in relation to the domestic production of the li$e product when available data permit the separate identification of that production on the basis of such criteria as the production process' producers> sales and profits# If such separate identification
! 3nder this Agreement the term 0in4ury0 shall' unless otherwise specified' be ta$en to mean material in4ury to a domestic industry' threat of material in4ury to a domestic industry or material retardation of the establishment of such an industry and shall be interpreted in accordance with the provisions of this Article#

of that production is not possible' the effects of the dumped imports shall be assessed by the e(amination of the production of the narrowest group or range of products' which includes the li$e product' for which the necessary information can be provided# -#: A determination of a threat of material in4ury shall be based on facts and not merely on allegation' con4ecture or remote possibility# The change in circumstances which would create a situation in which the dumping would cause in4ury must be clearly foreseen and imminent# 8 In ma$ing a determination regarding the e(istence of a threat of material in4ury' the authorities should consider' inter alia' such factors as: +i, +ii, a significant rate of increase of dumped imports into the domestic mar$et indicating the li$elihood of substantially increased importation7 sufficient freely disposable' or an imminent' substantial increase in' capacity of the e(porter indicating the li$elihood of substantially increased dumped e(ports to the importing 1ember>s mar$et' ta$ing into account the availability of other e(port mar$ets to absorb any additional e(ports7 whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices' and would li$ely increase demand for further imports7 and inventories of the product being investigated#

+iii,

+iv,

=o one of these factors by itself can necessarily give decisive guidance but the totality of the factors considered must lead to the conclusion that further dumped e(ports are imminent and that' unless protective action is ta$en' material in4ury would occur# -#; )ith respect to cases where in4ury is threatened by dumped imports' the application of anti-dumping measures shall be considered and decided with special care# Article 4 Definition of Domestic Industry "# &or the purposes of this Agreement' the term 0domestic industry0 shall be interpreted as referring to the domestic producers as a whole of the li$e products or to those of them whose collective output of the products constitutes a ma4or proportion of the total domestic production of those products' e(cept that: +i, when producers are related to the e(porters or importers or are themselves importers of the allegedly dumped product' the term 0domestic industry0 may be interpreted as referring to the rest of the producers7

?ne e(ample' though not an e(clusive one' is that there is convincing reason to believe that there will be' in the near future' substantially increased importation of the product at dumped prices# &or the purpose of this paragraph' producers shall be deemed to be related to e(porters or importers only if (a) one of them directly or indirectly controls the other7 or (b) both of them are directly or indirectly controlled by a third person7 or (c) together they directly or indirectly control a third person' provided that there are grounds for believing or suspecting that the effect of the relationship is such as to cause the producer concerned to behave differently from non-related producers# &or the purpose of this paragraph' one shall be deemed to control another when the former is legally or operationally in a position to e(ercise restraint or direction over the latter#

+ii,

in e(ceptional circumstances the territory of a 1ember may' for the production in .uestion' be divided into two or more competitive mar$ets and the producers within each mar$et may be regarded as a separate industry if (a) the producers within such mar$et sell all or almost all of their production of the product in .uestion in that mar$et' and (b) the demand in that mar$et is not to any substantial degree supplied by producers of the product in .uestion located elsewhere in the territory# In such circumstances' in4ury may be found to e(ist even where a ma4or portion of the total domestic industry is not in4ured' provided there is a concentration of dumped imports into such an isolated mar$et and provided further that the dumped imports are causing in4ury to the producers of all or almost all of the production within such mar$et#

"#% )hen the domestic industry has been interpreted as referring to the producers in a certain area' i#e# a mar$et as defined in paragraph +ii,' anti-dumping duties shall be levied % only on the products in .uestion consigned for final consumption to that area# )hen the constitutional law of the importing 1ember does not permit the levying of anti-dumping duties on such a basis' the importing 1ember may levy the anti-dumping duties without limitation only if (a) the e(porters shall have been given an opportunity to cease e(porting at dumped prices to the area concerned or otherwise give assurances pursuant to Article ; and ade.uate assurances in this regard have not been promptly given' and (b) such duties cannot be levied only on products of specific producers which supply the area in .uestion# "#)here two or more countries have reached under the provisions of paragraph ;+a, of Article @@IV of GATT !!" such a level of integration that they have the characteristics of a single' unified mar$et' the industry in the entire area of integration shall be ta$en to be the domestic industry referred to in paragraph # "#" The provisions of paragraph 6 of Article - shall be applicable to this Article# Article Initiation and !ubse"uent In#estigation /# A(cept as provided for in paragraph 6' an investigation to determine the e(istence' degree and effect of any alleged dumping shall be initiated upon a written application by or on behalf of the domestic industry# /#% An application under paragraph shall include evidence of (a) dumping' (b) in4ury within the meaning of Article VI of GATT !!" as interpreted by this Agreement and (c) a causal lin$ between the dumped imports and the alleged in4ury# *imple assertion' unsubstantiated by relevant evidence' cannot be considered sufficient to meet the re.uirements of this paragraph# The application shall contain such information as is reasonably available to the applicant on the following: +i, the identity of the applicant and a description of the volume and value of the domestic production of the li$e product by the applicant# )here a written application is made on behalf of the domestic industry' the application shall identify the industry on behalf of which the application is made by a list of all $nown domestic producers of the li$e product +or associations of domestic producers of the li$e product, and' to the e(tent possible' a description of the volume and value of domestic production of the li$e product accounted for by such producers7

As used in this Agreement 0levy0 shall mean the definitive or final legal assessment or collection of a duty or ta(#

+ii,

a complete description of the allegedly dumped product' the names of the country or countries of origin or e(port in .uestion' the identity of each $nown e(porter or foreign producer and a list of $nown persons importing the product in .uestion7 information on prices at which the product in .uestion is sold when destined for consumption in the domestic mar$ets of the country or countries of origin or e(port +or' where appropriate' information on the prices at which the product is sold from the country or countries of origin or e(port to a third country or countries' or on the constructed value of the product, and information on e(port prices or' where appropriate' on the prices at which the product is first resold to an independent buyer in the territory of the importing 1ember7 information on the evolution of the volume of the allegedly dumped imports' the effect of these imports on prices of the li$e product in the domestic mar$et and the conse.uent impact of the imports on the domestic industry' as demonstrated by relevant factors and indices having a bearing on the state of the domestic industry' such as those listed in paragraphs % and " of Article -#

+iii,

+iv,

/#The authorities shall e(amine the accuracy and ade.uacy of the evidence provided in the application to determine whether there is sufficient evidence to 4ustify the initiation of an investigation# /#" An investigation shall not be initiated pursuant to paragraph unless the authorities have determined' on the basis of an e(amination of the degree of support for' or opposition to' the application e(pressed - by domestic producers of the li$e product' that the application has been made by or on behalf of the domestic industry# " The application shall be considered to have been made 0by or on behalf of the domestic industry0 if it is supported by those domestic producers whose collective output constitutes more than /8 per cent of the total production of the li$e product produced by that portion of the domestic industry e(pressing either support for or opposition to the application# <owever' no investigation shall be initiated when domestic producers e(pressly supporting the application account for less than %/ per cent of total production of the li$e product produced by the domestic industry# /#/ The authorities shall avoid' unless a decision has been made to initiate an investigation' any publici2ing of the application for the initiation of an investigation# <owever' after receipt of a properly documented application and before proceeding to initiate an investigation' the authorities shall notify the government of the e(porting 1ember concerned# /#6 If' in special circumstances' the authorities concerned decide to initiate an investigation without having received a written application by or on behalf of a domestic industry for the initiation of such investigation' they shall proceed only if they have sufficient evidence of dumping' in4ury and a causal lin$' as described in paragraph %' to 4ustify the initiation of an investigation# /#: The evidence of both dumping and in4ury shall be considered simultaneously (a) in the decision whether or not to initiate an investigation' and (b) thereafter' during the course of the investigation' starting on a date not later than the earliest date on which in accordance with the provisions of this Agreement provisional measures may be applied#

In the case of fragmented industries involving an e(ceptionally large number of producers' authorities may determine support and opposition by using statistically valid sampling techni.ues# " 1embers are aware that in the territory of certain 1embers employees of domestic producers of the li$e product or representatives of those employees may ma$e or support an application for an investigation under paragraph #

/#; An application under paragraph shall be re4ected and an investigation shall be terminated promptly as soon as the authorities concerned are satisfied that there is not sufficient evidence of either dumping or of in4ury to 4ustify proceeding with the case# There shall be immediate termination in cases where the authorities determine that the margin of dumping is de minimis' or that the volume of dumped imports' actual or potential' or the in4ury' is negligible# The margin of dumping shall be considered to be de minimis if this margin is less than % per cent' e(pressed as a percentage of the e(port price# The volume of dumped imports shall normally be regarded as negligible if the volume of dumped imports from a particular country is found to account for less than - per cent of imports of the li$e product in the importing 1ember' unless countries which individually account for less than - per cent of the imports of the li$e product in the importing 1ember collectively account for more than : per cent of imports of the li$e product in the importing 1ember# /#! An anti-dumping proceeding shall not hinder the procedures of customs clearance#

/# 8 Investigations shall' e(cept in special circumstances' be concluded within one year' and in no case more than ; months' after their initiation# Article $ %#idence 6# All interested parties in an anti-dumping investigation shall be given notice of the information which the authorities re.uire and ample opportunity to present in writing all evidence which they consider relevant in respect of the investigation in .uestion# 6# # A(porters or foreign producers receiving .uestionnaires used in an anti-dumping investigation shall be given at least -8 days for reply# / 9ue consideration should be given to any re.uest for an e(tension of the -8-day period and' upon cause shown' such an e(tension should be granted whenever practicable# 6# #% *ub4ect to the re.uirement to protect confidential information' evidence presented in writing by one interested party shall be made available promptly to other interested parties participating in the investigation# As soon as an investigation has been initiated' the authorities shall provide the full te(t of the written application received under paragraph of Article / to the $nown e(porters 6 and to the authorities of the e(porting 1ember and shall ma$e it available' upon re.uest' to other interested parties involved# 9ue regard shall be paid to the re.uirement for the protection of confidential information' as provided for in paragraph /#

6# #-

6#% Throughout the anti-dumping investigation all interested parties shall have a full opportunity for the defence of their interests# To this end' the authorities shall' on re.uest' provide opportunities for all interested parties to meet those parties with adverse interests' so that opposing views may be presented and rebuttal arguments offered# Provision of such opportunities must ta$e account of the
As a general rule' the time-limit for e(porters shall be counted from the date of receipt of the .uestionnaire' which for this purpose shall be deemed to have been received one wee$ from the date on which it was sent to the respondent or transmitted to the appropriate diplomatic representative of the e(porting 1ember or' in the case of a separate customs territory 1ember of the )T?' an official representative of the e(porting territory# 6 It being understood that' where the number of e(porters involved is particularly high' the full te(t of the written application should instead be provided only to the authorities of the e(porting 1ember or to the relevant trade association#
/

need to preserve confidentiality and of the convenience to the parties# There shall be no obligation on any party to attend a meeting' and failure to do so shall not be pre4udicial to that party>s case# Interested parties shall also have the right' on 4ustification' to present other information orally# 6#?ral information provided under paragraph % shall be ta$en into account by the authorities only in so far as it is subse.uently reproduced in writing and made available to other interested parties' as provided for in subparagraph #%# 6#" The authorities shall whenever practicable provide timely opportunities for all interested parties to see all information that is relevant to the presentation of their cases' that is not confidential as defined in paragraph /' and that is used by the authorities in an anti-dumping investigation' and to prepare presentations on the basis of this information# 6#/ Any information which is by nature confidential +for e(ample' because its disclosure would be of significant competitive advantage to a competitor or because its disclosure would have a significantly adverse effect upon a person supplying the information or upon a person from whom that person ac.uired the information,' or which is provided on a confidential basis by parties to an investigation shall' upon good cause shown' be treated as such by the authorities# *uch information shall not be disclosed without specific permission of the party submitting it# : 6#/# The authorities shall re.uire interested parties providing confidential information to furnish non-confidential summaries thereof# These summaries shall be in sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence# In e(ceptional circumstances' such parties may indicate that such information is not susceptible of summary# In such e(ceptional circumstances' a statement of the reasons why summari2ation is not possible must be provided#

6#/#% If the authorities find that a re.uest for confidentiality is not warranted and if the supplier of the information is either unwilling to ma$e the information public or to authori2e its disclosure in generali2ed or summary form' the authorities may disregard such information unless it can be demonstrated to their satisfaction from appropriate sources that the information is correct# ; 6#6 A(cept in circumstances provided for in paragraph ;' the authorities shall during the course of an investigation satisfy themselves as to the accuracy of the information supplied by interested parties upon which their findings are based# 6#: In order to verify information provided or to obtain further details' the authorities may carry out investigations in the territory of other 1embers as re.uired' provided they obtain the agreement of the firms concerned and notify the representatives of the government of the 1ember in .uestion' and unless that 1ember ob4ects to the investigation# The procedures described in Anne( I shall apply to investigations carried out in the territory of other 1embers# *ub4ect to the re.uirement to protect confidential information' the authorities shall ma$e the results of any such investigations available' or shall provide disclosure thereof pursuant to paragraph !' to the firms to which they pertain and may ma$e such results available to the applicants# 6#; In cases in which any interested party refuses access to' or otherwise does not provide' necessary information within a reasonable period or significantly impedes the investigation' preliminary and final determinations' affirmative or negative' may be made on the basis of the facts available# The provisions of Anne( II shall be observed in the application of this paragraph#
: 1embers are aware that in the territory of certain 1embers disclosure pursuant to a narrowly-drawn protective order may be re.uired# ; 1embers agree that re.uests for confidentiality should not be arbitrarily re4ected#

6#! The authorities shall' before a final determination is made' inform all interested parties of the essential facts under consideration which form the basis for the decision whether to apply definitive measures# *uch disclosure should ta$e place in sufficient time for the parties to defend their interests# 6# 8 The authorities shall' as a rule' determine an individual margin of dumping for each $nown e(porter or producer concerned of the product under investigation# In cases where the number of e(porters' producers' importers or types of products involved is so large as to ma$e such a determination impracticable' the authorities may limit their e(amination either to a reasonable number of interested parties or products by using samples which are statistically valid on the basis of information available to the authorities at the time of the selection' or to the largest percentage of the volume of the e(ports from the country in .uestion which can reasonably be investigated# 6# 8# Any selection of e(porters' producers' importers or types of products made under this paragraph shall preferably be chosen in consultation with and with the consent of the e(porters' producers or importers concerned# In cases where the authorities have limited their e(amination' as provided for in this paragraph' they shall nevertheless determine an individual margin of dumping for any e(porter or producer not initially selected who submits the necessary information in time for that information to be considered during the course of the investigation' e(cept where the number of e(porters or producers is so large that individual e(aminations would be unduly burdensome to the authorities and prevent the timely completion of the investigation# Voluntary responses shall not be discouraged#

6# 8#%

6#

&or the purposes of this Agreement' 0interested parties0 shall include: +i, an e(porter or foreign producer or the importer of a product sub4ect to investigation' or a trade or business association a ma4ority of the members of which are producers' e(porters or importers of such product7 the government of the e(porting 1ember7 and a producer of the li$e product in the importing 1ember or a trade and business association a ma4ority of the members of which produce the li$e product in the territory of the importing 1ember#

+ii, +iii,

This list shall not preclude 1embers from allowing domestic or foreign parties other than those mentioned above to be included as interested parties# 6# % The authorities shall provide opportunities for industrial users of the product under investigation' and for representative consumer organi2ations in cases where the product is commonly sold at the retail level' to provide information which is relevant to the investigation regarding dumping' in4ury and causality# 6# The authorities shall ta$e due account of any difficulties e(perienced by interested parties' in particular small companies' in supplying information re.uested' and shall provide any assistance practicable# 6# " The procedures set out above are not intended to prevent the authorities of a 1ember from proceeding e(peditiously with regard to initiating an investigation' reaching preliminary or final determinations' whether affirmative or negative' or from applying provisional or final measures' in accordance with relevant provisions of this Agreement#

Article & Pro#isional Measures :# Provisional measures may be applied only if: +i, an investigation has been initiated in accordance with the provisions of Article /' a public notice has been given to that effect and interested parties have been given ade.uate opportunities to submit information and ma$e comments7 a preliminary affirmative determination has been made of dumping and conse.uent in4ury to a domestic industry7 and the authorities concerned 4udge such measures necessary to prevent in4ury being caused during the investigation#

+ii, +iii,

:#% Provisional measures may ta$e the form of a provisional duty or' preferably' a security - by cash deposit or bond - e.ual to the amount of the anti-dumping duty provisionally estimated' being not greater than the provisionally estimated margin of dumping# )ithholding of appraisement is an appropriate provisional measure' provided that the normal duty and the estimated amount of the anti-dumping duty be indicated and as long as the withholding of appraisement is sub4ect to the same conditions as other provisional measures# :#Provisional measures shall not be applied sooner than 68 days from the date of initiation of the investigation# :#" The application of provisional measures shall be limited to as short a period as possible' not e(ceeding four months or' on decision of the authorities concerned' upon re.uest by e(porters representing a significant percentage of the trade involved' to a period not e(ceeding si( months# )hen authorities' in the course of an investigation' e(amine whether a duty lower than the margin of dumping would be sufficient to remove in4ury' these periods may be si( and nine months' respectively# :#/ The relevant provisions of Article ! shall be followed in the application of provisional measures# Article ' Price (nderta)ings ;# Proceedings may ! be suspended or terminated without the imposition of provisional measures or anti-dumping duties upon receipt of satisfactory voluntary underta$ings from any e(porter to revise its prices or to cease e(ports to the area in .uestion at dumped prices so that the authorities are satisfied that the in4urious effect of the dumping is eliminated# Price increases under such underta$ings shall not be higher than necessary to eliminate the margin of dumping# It is desirable that the price increases be less than the margin of dumping if such increases would be ade.uate to remove the in4ury to the domestic industry#

The word 0may0 shall not be interpreted to allow the simultaneous continuation of proceedings with the implementation of price underta$ings e(cept as provided in paragraph "#

;#% Price underta$ings shall not be sought or accepted from e(porters unless the authorities of the importing 1ember have made a preliminary affirmative determination of dumping and in4ury caused by such dumping# ;#3nderta$ings offered need not be accepted if the authorities consider their acceptance impractical' for e(ample' if the number of actual or potential e(porters is too great' or for other reasons' including reasons of general policy# *hould the case arise and where practicable' the authorities shall provide to the e(porter the reasons which have led them to consider acceptance of an underta$ing as inappropriate' and shall' to the e(tent possible' give the e(porter an opportunity to ma$e comments thereon# ;#" If an underta$ing is accepted' the investigation of dumping and in4ury shall nevertheless be completed if the e(porter so desires or the authorities so decide# In such a case' if a negative determination of dumping or in4ury is made' the underta$ing shall automatically lapse' e(cept in cases where such a determination is due in large part to the e(istence of a price underta$ing# In such cases' the authorities may re.uire that an underta$ing be maintained for a reasonable period consistent with the provisions of this Agreement# In the event that an affirmative determination of dumping and in4ury is made' the underta$ing shall continue consistent with its terms and the provisions of this Agreement# ;#/ Price underta$ings may be suggested by the authorities of the importing 1ember' but no e(porter shall be forced to enter into such underta$ings# The fact that e(porters do not offer such underta$ings' or do not accept an invitation to do so' shall in no way pre4udice the consideration of the case# <owever' the authorities are free to determine that a threat of in4ury is more li$ely to be reali2ed if the dumped imports continue# ;#6 Authorities of an importing 1ember may re.uire any e(porter from whom an underta$ing has been accepted to provide periodically information relevant to the fulfilment of such an underta$ing and to permit verification of pertinent data# In case of violation of an underta$ing' the authorities of the importing 1ember may ta$e' under this Agreement in conformity with its provisions' e(peditious actions which may constitute immediate application of provisional measures using the best information available# In such cases' definitive duties may be levied in accordance with this Agreement on products entered for consumption not more than !8 days before the application of such provisional measures' e(cept that any such retroactive assessment shall not apply to imports entered before the violation of the underta$ing# Article * Imposition and +ollection of Anti,Dumping Duties !# The decision whether or not to impose an anti-dumping duty in cases where all re.uirements for the imposition have been fulfilled' and the decision whether the amount of the anti-dumping duty to be imposed shall be the full margin of dumping or less' are decisions to be made by the authorities of the importing 1ember# It is desirable that the imposition be permissive in the territory of all 1embers' and that the duty be less than the margin if such lesser duty would be ade.uate to remove the in4ury to the domestic industry# !#% )hen an anti-dumping duty is imposed in respect of any product' such anti-dumping duty shall be collected in the appropriate amounts in each case' on a non-discriminatory basis on imports of such product from all sources found to be dumped and causing in4ury' e(cept as to imports from those sources from which price underta$ings under the terms of this Agreement have been accepted# The authorities shall name the supplier or suppliers of the product concerned# If' however' several suppliers from the same country are involved' and it is impracticable to name all these suppliers' the

authorities may name the supplying country concerned# If several suppliers from more than one country are involved' the authorities may name either all the suppliers involved' or' if this is impracticable' all the supplying countries involved# !#The amount of the anti-dumping duty shall not e(ceed the margin of dumping as established under Article %# !#-# )hen the amount of the anti-dumping duty is assessed on a retrospective basis' the determination of the final liability for payment of anti-dumping duties shall ta$e place as soon as possible' normally within % months' and in no case more than ; months' after the date on which a re.uest for a final assessment of the amount of the anti-dumping duty has been made# %8 Any refund shall be made promptly and normally in not more than !8 days following the determination of final liability made pursuant to this sub-paragraph# In any case' where a refund is not made within !8 days' the authorities shall provide an e(planation if so re.uested# )hen the amount of the anti-dumping duty is assessed on a prospective basis' provision shall be made for a prompt refund' upon re.uest' of any duty paid in e(cess of the margin of dumping# A refund of any such duty paid in e(cess of the actual margin of dumping shall normally ta$e place within % months' and in no case more than ; months' after the date on which a re.uest for a refund' duly supported by evidence' has been made by an importer of the product sub4ect to the anti-dumping duty# The refund authori2ed should normally be made within !8 days of the above-noted decision# In determining whether and to what e(tent a reimbursement should be made when the e(port price is constructed in accordance with paragraph - of Article %' authorities should ta$e account of any change in normal value' any change in costs incurred between importation and resale' and any movement in the resale price which is duly reflected in subse.uent selling prices' and should calculate the e(port price with no deduction for the amount of anti-dumping duties paid when conclusive evidence of the above is provided#

!#-#%

!#-#-

!#" )hen the authorities have limited their e(amination in accordance with the second sentence of paragraph 8 of Article 6' any anti-dumping duty applied to imports from e(porters or producers not included in the e(amination shall not e(ceed: +i, +ii, the weighted average margin of dumping established with respect to the selected e(porters or producers or' where the liability for payment of anti-dumping duties is calculated on the basis of a prospective normal value' the difference between the weighted average normal value of the selected e(porters or producers and the e(port prices of e(porters or producers not individually e(amined'

provided that the authorities shall disregard for the purpose of this paragraph any 2ero and de minimis margins and margins established under the circumstances referred to in paragraph ; of Article 6# The authorities shall apply individual duties or normal values to imports from any e(porter or producer not

It is understood that the observance of the time-limits mentioned in this subparagraph and in subparagraph -#% may not be possible where the product in .uestion is sub4ect to 4udicial review proceedings#

%8

included in the e(amination who has provided the necessary information during the course of the investigation' as provided for in subparagraph 8#% of Article 6# !#/ If a product is sub4ect to anti-dumping duties in an importing 1ember' the authorities shall promptly carry out a review for the purpose of determining individual margins of dumping for any e(porters or producers in the e(porting country in .uestion who have not e(ported the product to the importing 1ember during the period of investigation' provided that these e(porters or producers can show that they are not related to any of the e(porters or producers in the e(porting country who are sub4ect to the anti-dumping duties on the product# *uch a review shall be initiated and carried out on an accelerated basis' compared to normal duty assessment and review proceedings in the importing 1ember# =o anti-dumping duties shall be levied on imports from such e(porters or producers while the review is being carried out# The authorities may' however' withhold appraisement and5or re.uest guarantees to ensure that' should such a review result in a determination of dumping in respect of such producers or e(porters' anti-dumping duties can be levied retroactively to the date of the initiation of the review# Article 1.etroacti#ity 8# Provisional measures and anti-dumping duties shall only be applied to products which enter for consumption after the time when the decision ta$en under paragraph of Article : and paragraph of Article !' respectively' enters into force' sub4ect to the e(ceptions set out in this Article# 8#% )here a final determination of in4ury +but not of a threat thereof or of a material retardation of the establishment of an industry, is made or' in the case of a final determination of a threat of in4ury' where the effect of the dumped imports would' in the absence of the provisional measures' have led to a determination of in4ury' anti-dumping duties may be levied retroactively for the period for which provisional measures' if any' have been applied# 8#If the definitive anti-dumping duty is higher than the provisional duty paid or payable' or the amount estimated for the purpose of the security' the difference shall not be collected# If the definitive duty is lower than the provisional duty paid or payable' or the amount estimated for the purpose of the security' the difference shall be reimbursed or the duty recalculated' as the case may be# 8#" A(cept as provided in paragraph %' where a determination of threat of in4ury or material retardation is made +but no in4ury has yet occurred, a definitive anti-dumping duty may be imposed only from the date of the determination of threat of in4ury or material retardation' and any cash deposit made during the period of the application of provisional measures shall be refunded and any bonds released in an e(peditious manner# 8#/ )here a final determination is negative' any cash deposit made during the period of the application of provisional measures shall be refunded and any bonds released in an e(peditious manner# 8#6 A definitive anti-dumping duty may be levied on products which were entered for consumption not more than !8 days prior to the date of application of provisional measures' when the authorities determine for the dumped product in .uestion that:

+i,

there is a history of dumping which caused in4ury or that the importer was' or should have been' aware that the e(porter practises dumping and that such dumping would cause in4ury' and the in4ury is caused by massive dumped imports of a product in a relatively short time which in light of the timing and the volume of the dumped imports and other circumstances +such as a rapid build-up of inventories of the imported product, is li$ely to seriously undermine the remedial effect of the definitive anti-dumping duty to be applied' provided that the importers concerned have been given an opportunity to comment#

+ii,

8#: The authorities may' after initiating an investigation' ta$e such measures as the withholding of appraisement or assessment as may be necessary to collect anti-dumping duties retroactively' as provided for in paragraph 6' once they have sufficient evidence that the conditions set forth in that paragraph are satisfied# 8#; =o duties shall be levied retroactively pursuant to paragraph 6 on products entered for consumption prior to the date of initiation of the investigation# Article 11 Duration and .e#ie/ of Anti,Dumping Duties and Price (nderta)ings # An anti-dumping duty shall remain in force only as long as and to the e(tent necessary to counteract dumping which is causing in4ury# #% The authorities shall review the need for the continued imposition of the duty' where warranted' on their own initiative or' provided that a reasonable period of time has elapsed since the imposition of the definitive anti-dumping duty' upon re.uest by any interested party which submits positive information substantiating the need for a review# % Interested parties shall have the right to re.uest the authorities to e(amine whether the continued imposition of the duty is necessary to offset dumping' whether the in4ury would be li$ely to continue or recur if the duty were removed or varied' or both# If' as a result of the review under this paragraph' the authorities determine that the anti-dumping duty is no longer warranted' it shall be terminated immediately# #=otwithstanding the provisions of paragraphs and %' any definitive anti-dumping duty shall be terminated on a date not later than five years from its imposition +or from the date of the most recent review under paragraph % if that review has covered both dumping and in4ury' or under this paragraph,' unless the authorities determine' in a review initiated before that date on their own initiative or upon a duly substantiated re.uest made by or on behalf of the domestic industry within a reasonable period of time prior to that date' that the e(piry of the duty would be li$ely to lead to continuation or recurrence of dumping and in4ury# %% The duty may remain in force pending the outcome of such a review# #" The provisions of Article 6 regarding evidence and procedure shall apply to any review carried out under this Article# Any such review shall be carried out e(peditiously and shall normally be concluded within % months of the date of initiation of the review#
A determination of final liability for payment of anti-dumping duties' as provided for in paragraph of Article !' does not by itself constitute a review within the meaning of this Article# %% )hen the amount of the anti-dumping duty is assessed on a retrospective basis' a finding in the most recent assessment proceeding under subparagraph -# of Article ! that no duty is to be levied shall not by itself re.uire the authorities to terminate the definitive duty#
%

#/ The provisions of this Article shall apply mutatis mutandis to price underta$ings accepted under Article ;# Article 12 Public 0otice and %1planation of Determinations %# )hen the authorities are satisfied that there is sufficient evidence to 4ustify the initiation of an anti-dumping investigation pursuant to Article /' the 1ember or 1embers the products of which are sub4ect to such investigation and other interested parties $nown to the investigating authorities to have an interest therein shall be notified and a public notice shall be given# %# # A public notice of the initiation of an investigation shall contain' or otherwise ma$e available through a separate report%-' ade.uate information on the following: +i, +ii, +iii, +iv, +v, +vi, the name of the e(porting country or countries and the product involved7 the date of initiation of the investigation7 the basis on which dumping is alleged in the application7 a summary of the factors on which the allegation of in4ury is based7 the address to which representations by interested parties should be directed7 the time-limits allowed to interested parties for ma$ing their views $nown#

%#% Public notice shall be given of any preliminary or final determination' whether affirmative or negative' of any decision to accept an underta$ing pursuant to Article ;' of the termination of such an underta$ing' and of the termination of a definitive anti-dumping duty# Aach such notice shall set forth' or otherwise ma$e available through a separate report' in sufficient detail the findings and conclusions reached on all issues of fact and law considered material by the investigating authorities# All such notices and reports shall be forwarded to the 1ember or 1embers the products of which are sub4ect to such determination or underta$ing and to other interested parties $nown to have an interest therein# %#%# A public notice of the imposition of provisional measures shall set forth' or otherwise ma$e available through a separate report' sufficiently detailed e(planations for the preliminary determinations on dumping and in4ury and shall refer to the matters of fact and law which have led to arguments being accepted or re4ected# *uch a notice or report shall' due regard being paid to the re.uirement for the protection of confidential information' contain in particular: +i, +ii, the names of the suppliers' or when this is impracticable' the supplying countries involved7 a description of the product which is sufficient for customs purposes7

)here authorities provide information and e(planations under the provisions of this Article in a separate report' they shall ensure that such report is readily available to the public#

%-

+iii,

the margins of dumping established and a full e(planation of the reasons for the methodology used in the establishment and comparison of the e(port price and the normal value under Article %7 considerations relevant to the in4ury determination as set out in Article -7 the main reasons leading to the determination# A public notice of conclusion or suspension of an investigation in the case of an affirmative determination providing for the imposition of a definitive duty or the acceptance of a price underta$ing shall contain' or otherwise ma$e available through a separate report' all relevant information on the matters of fact and law and reasons which have led to the imposition of final measures or the acceptance of a price underta$ing' due regard being paid to the re.uirement for the protection of confidential information# In particular' the notice or report shall contain the information described in subparagraph %# ' as well as the reasons for the acceptance or re4ection of relevant arguments or claims made by the e(porters and importers' and the basis for any decision made under subparagraph 8#% of Article 6# A public notice of the termination or suspension of an investigation following the acceptance of an underta$ing pursuant to Article ; shall include' or otherwise ma$e available through a separate report' the non-confidential part of this underta$ing#

+iv, +v, %#%#%

%#%#-

%#The provisions of this Article shall apply mutatis mutandis to the initiation and completion of reviews pursuant to Article and to decisions under Article 8 to apply duties retroactively# Article 13 2udicial .e#ie/ Aach 1ember whose national legislation contains provisions on anti-dumping measures shall maintain 4udicial' arbitral or administrative tribunals or procedures for the purpose' inter alia' of the prompt review of administrative actions relating to final determinations and reviews of determinations within the meaning of Article # *uch tribunals or procedures shall be independent of the authorities responsible for the determination or review in .uestion# Article 14 Anti,Dumping Action on 3e4alf of a 54ird +ountry "# An application for anti-dumping action on behalf of a third country shall be made by the authorities of the third country re.uesting action# "#% *uch an application shall be supported by price information to show that the imports are being dumped and by detailed information to show that the alleged dumping is causing in4ury to the domestic industry concerned in the third country# The government of the third country shall afford all assistance to the authorities of the importing country to obtain any further information which the latter may re.uire#

"#In considering such an application' the authorities of the importing country shall consider the effects of the alleged dumping on the industry concerned as a whole in the third country7 that is to say' the in4ury shall not be assessed in relation only to the effect of the alleged dumping on the industry>s e(ports to the importing country or even on the industry>s total e(ports# "#" The decision whether or not to proceed with a case shall rest with the importing country# If the importing country decides that it is prepared to ta$e action' the initiation of the approach to the Bouncil for Trade in Goods see$ing its approval for such action shall rest with the importing country# Article 1 De#eloping +ountry Members It is recogni2ed that special regard must be given by developed country 1embers to the special situation of developing country 1embers when considering the application of anti-dumping measures under this Agreement# Possibilities of constructive remedies provided for by this Agreement shall be e(plored before applying anti-dumping duties where they would affect the essential interests of developing country 1embers# PART II Article 1$ +ommittee on Anti,Dumping Practices 6# There is hereby established a Bommittee on Anti-9umping Practices +referred to in this Agreement as the 0Bommittee0, composed of representatives from each of the 1embers# The Bommittee shall elect its own Bhairman and shall meet not less than twice a year and otherwise as envisaged by relevant provisions of this Agreement at the re.uest of any 1ember# The Bommittee shall carry out responsibilities as assigned to it under this Agreement or by the 1embers and it shall afford 1embers the opportunity of consulting on any matters relating to the operation of the Agreement or the furtherance of its ob4ectives# The )T? *ecretariat shall act as the secretariat to the Bommittee# 6#% The Bommittee may set up subsidiary bodies as appropriate#

6#In carrying out their functions' the Bommittee and any subsidiary bodies may consult with and see$ information from any source they deem appropriate# <owever' before the Bommittee or a subsidiary body see$s such information from a source within the 4urisdiction of a 1ember' it shall inform the 1ember involved# It shall obtain the consent of the 1ember and any firm to be consulted# 6#" 1embers shall report without delay to the Bommittee all preliminary or final anti-dumping actions ta$en# *uch reports shall be available in the *ecretariat for inspection by other 1embers# 1embers shall also submit' on a semi-annual basis' reports of any anti-dumping actions ta$en within the preceding si( months# The semi-annual reports shall be submitted on an agreed standard form# 6#/ Aach 1ember shall notify the Bommittee (a) which of its authorities are competent to initiate and conduct investigations referred to in Article / and (b) its domestic procedures governing the initiation and conduct of such investigations#

Article 1& +onsultation and Dispute !ettlement :# A(cept as otherwise provided herein' the 9ispute *ettlement 3nderstanding is applicable to consultations and the settlement of disputes under this Agreement# :#% Aach 1ember shall afford sympathetic consideration to' and shall afford ade.uate opportunity for consultation regarding' representations made by another 1ember with respect to any matter affecting the operation of this Agreement# :#If any 1ember considers that any benefit accruing to it' directly or indirectly' under this Agreement is being nullified or impaired' or that the achievement of any ob4ective is being impeded' by another 1ember or 1embers' it may' with a view to reaching a mutually satisfactory resolution of the matter' re.uest in writing consultations with the 1ember or 1embers in .uestion# Aach 1ember shall afford sympathetic consideration to any re.uest from another 1ember for consultation# :#" If the 1ember that re.uested consultations considers that the consultations pursuant to paragraph - have failed to achieve a mutually agreed solution' and if final action has been ta$en by the administering authorities of the importing 1ember to levy definitive anti-dumping duties or to accept price underta$ings' it may refer the matter to the 9ispute *ettlement Cody +09*C0,# )hen a provisional measure has a significant impact and the 1ember that re.uested consultations considers that the measure was ta$en contrary to the provisions of paragraph of Article :' that 1ember may also refer such matter to the 9*C# :#/ The 9*C shall' at the re.uest of the complaining party' establish a panel to e(amine the matter based upon: +i, a written statement of the 1ember ma$ing the re.uest indicating how a benefit accruing to it' directly or indirectly' under this Agreement has been nullified or impaired' or that the achieving of the ob4ectives of the Agreement is being impeded' and the facts made available in conformity with appropriate domestic procedures to the authorities of the importing 1ember#

+ii, :#6

In e(amining the matter referred to in paragraph /: +i, in its assessment of the facts of the matter' the panel shall determine whether the authorities> establishment of the facts was proper and whether their evaluation of those facts was unbiased and ob4ective# If the establishment of the facts was proper and the evaluation was unbiased and ob4ective' even though the panel might have reached a different conclusion' the evaluation shall not be overturned7 the panel shall interpret the relevant provisions of the Agreement in accordance with customary rules of interpretation of public international law# )here the panel finds that a relevant provision of the Agreement admits of more than one permissible interpretation' the panel shall find the authorities> measure to be in conformity with the Agreement if it rests upon one of those permissible interpretations#

+ii,

:#: Bonfidential information provided to the panel shall not be disclosed without formal authori2ation from the person' body or authority providing such information# )here such information is re.uested from the panel but release of such information by the panel is not authori2ed' a

non-confidential summary of the information' authori2ed by the person' body or authority providing the information' shall be provided# PART III Article 1' 6inal Pro#isions ;# =o specific action against dumping of e(ports from another 1ember can be ta$en e(cept in accordance with the provisions of GATT !!"' as interpreted by this Agreement#%" ;#% Reservations may not be entered in respect of any of the provisions of this Agreement without the consent of the other 1embers# ;#*ub4ect to subparagraphs -# and -#%' the provisions of this Agreement shall apply to investigations' and reviews of e(isting measures' initiated pursuant to applications which have been made on or after the date of entry into force for a 1ember of the )T? Agreement# ;#-# )ith respect to the calculation of margins of dumping in refund procedures under paragraph - of Article !' the rules used in the most recent determination or review of dumping shall apply# &or the purposes of paragraph - of Article ' e(isting anti-dumping measures shall be deemed to be imposed on a date not later than the date of entry into force for a 1ember of the )T? Agreement' e(cept in cases in which the domestic legislation of a 1ember in force on that date already included a clause of the type provided for in that paragraph#

;#-#%

;#" Aach 1ember shall ta$e all necessary steps' of a general or particular character' to ensure' not later than the date of entry into force of the )T? Agreement for it' the conformity of its laws' regulations and administrative procedures with the provisions of this Agreement as they may apply for the 1ember in .uestion# ;#/ Aach 1ember shall inform the Bommittee of any changes in its laws and regulations relevant to this Agreement and in the administration of such laws and regulations# ;#6 The Bommittee shall review annually the implementation and operation of this Agreement ta$ing into account the ob4ectives thereof# The Bommittee shall inform annually the Bouncil for Trade in Goods of developments during the period covered by such reviews# ;#: The Anne(es to this Agreement constitute an integral part thereof# A==A@ I PR?BA93RA* &?R ?=-T<A-*P?T I=VA*TIGATI?=* P3R*3A=T T? PARAGRAP< : ?& ARTIBDA 6

%"

This is not intended to preclude action under other relevant provisions of GATT !!"' as appropriate#

# 3pon initiation of an investigation' the authorities of the e(porting 1ember and the firms $nown to be concerned should be informed of the intention to carry out on-the-spot investigations# %# If in e(ceptional circumstances it is intended to include non-governmental e(perts in the investigating team' the firms and the authorities of the e(porting 1ember should be so informed# *uch non-governmental e(perts should be sub4ect to effective sanctions for breach of confidentiality re.uirements# -# It should be standard practice to obtain e(plicit agreement of the firms concerned in the e(porting 1ember before the visit is finally scheduled# "# As soon as the agreement of the firms concerned has been obtained' the investigating authorities should notify the authorities of the e(porting 1ember of the names and addresses of the firms to be visited and the dates agreed# /# *ufficient advance notice should be given to the firms in .uestion before the visit is made#

6# Visits to e(plain the .uestionnaire should only be made at the re.uest of an e(porting firm# *uch a visit may only be made if (a) the authorities of the importing 1ember notify the representatives of the 1ember in .uestion and (b) the latter do not ob4ect to the visit# :# As the main purpose of the on-the-spot investigation is to verify information provided or to obtain further details' it should be carried out after the response to the .uestionnaire has been received unless the firm agrees to the contrary and the government of the e(porting 1ember is informed by the investigating authorities of the anticipated visit and does not ob4ect to it7 further' it should be standard practice prior to the visit to advise the firms concerned of the general nature of the information to be verified and of any further information which needs to be provided' though this should not preclude re.uests to be made on the spot for further details to be provided in the light of information obtained# ;# An.uiries or .uestions put by the authorities or firms of the e(porting 1embers and essential to a successful on-the-spot investigation should' whenever possible' be answered before the visit is made# A==A@ II CA*T I=&?R1ATI?= AVAIDACDA I= TAR1* ?& PARAGRAP< ; ?& ARTIBDA 6 # As soon as possible after the initiation of the investigation' the investigating authorities should specify in detail the information re.uired from any interested party' and the manner in which that information should be structured by the interested party in its response# The authorities should also ensure that the party is aware that if information is not supplied within a reasonable time' the authorities will be free to ma$e determinations on the basis of the facts available' including those contained in the application for the initiation of the investigation by the domestic industry# %# The authorities may also re.uest that an interested party provide its response in a particular medium +e#g# computer tape, or computer language# )here such a re.uest is made' the authorities should consider the reasonable ability of the interested party to respond in the preferred medium or computer language' and should not re.uest the party to use for its response a computer system other than that used by the party# The authority should not maintain a re.uest for a computeri2ed response if the interested party does not maintain computeri2ed accounts and if presenting the response as re.uested would result in an unreasonable e(tra burden on the interested party' e#g# it would entail unreasonable additional cost and trouble# The authorities should not maintain a re.uest for a response in a particular medium or computer language if the interested party does not maintain its computeri2ed accounts in such medium or computer language and if presenting the response as

re.uested would result in an unreasonable e(tra burden on the interested party' e#g# it would entail unreasonable additional cost and trouble# -# All information which is verifiable' which is appropriately submitted so that it can be used in the investigation without undue difficulties' which is supplied in a timely fashion' and' where applicable' which is supplied in a medium or computer language re.uested by the authorities' should be ta$en into account when determinations are made# If a party does not respond in the preferred medium or computer language but the authorities find that the circumstances set out in paragraph % have been satisfied' the failure to respond in the preferred medium or computer language should not be considered to significantly impede the investigation# "# )here the authorities do not have the ability to process information if provided in a particular medium +e#g# computer tape,' the information should be supplied in the form of written material or any other form acceptable to the authorities# /# Aven though the information provided may not be ideal in all respects' this should not 4ustify the authorities from disregarding it' provided the interested party has acted to the best of its ability# 6# If evidence or information is not accepted' the supplying party should be informed forthwith of the reasons therefor' and should have an opportunity to provide further e(planations within a reasonable period' due account being ta$en of the time-limits of the investigation# If the e(planations are considered by the authorities as not being satisfactory' the reasons for the re4ection of such evidence or information should be given in any published determinations# :# If the authorities have to base their findings' including those with respect to normal value' on information from a secondary source' including the information supplied in the application for the initiation of the investigation' they should do so with special circumspection# In such cases' the authorities should' where practicable' chec$ the information from other independent sources at their disposal' such as published price lists' official import statistics and customs returns' and from the information obtained from other interested parties during the investigation# It is clear' however' that if an interested party does not cooperate and thus relevant information is being withheld from the authorities' this situation could lead to a result which is less favourable to the party than if the party did cooperate#

AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 GA=ARAD I=TR?93BT?RE B?11A=TARE # The primary basis for customs value under this Agreement is 0transaction value0 as defined in Article # Article is to be read together with Article ; which provides' inter alia' for ad4ustments to the price actually paid or payable in cases where certain specific elements which are considered to form a part of the value for customs purposes are incurred by the buyer but are not included in the price actually paid or payable for the imported goods# Article ; also provides for the inclusion in the transaction value of certain considerations which may pass from the buyer to the seller in the form of specified goods or services rather than in the form of money# Articles % through : provide methods of determining the customs value whenever it cannot be determined under the provisions of Article # %# )here the customs value cannot be determined under the provisions of Article there should normally be a process of consultation between the customs administration and importer with a view to arriving at a basis of value under the provisions of Article % or -# It may occur' for e(ample' that the importer has information about the customs value of identical or similar imported goods which is not immediately available to the customs administration in the port of importation# ?n the other hand' the customs administration may have information about the customs value of identical or similar imported goods which is not readily available to the importer# A process of consultation between the two parties will enable information to be e(changed' sub4ect to the re.uirements of commercial confidentiality' with a view to determining a proper basis of value for customs purposes# -# Articles / and 6 provide two bases for determining the customs value where it cannot be determined on the basis of the transaction value of the imported goods or of identical or similar imported goods# 3nder paragraph of Article / the customs value is determined on the basis of the price at which the goods are sold in the condition as imported to an unrelated buyer in the country of importation# The importer also has the right to have goods which are further processed after importation valued under the provisions of Article / if the importer so re.uests# 3nder Article 6 the customs value is determined on the basis of the computed value# Coth these methods present certain difficulties and because of this the importer is given the right' under the provisions of Article "' to choose the order of application of the two methods# "# Article : sets out how to determine the customs value in cases where it cannot be determined under the provisions of any of the preceding Articles# Members7 8a#ing regard to the 1ultilateral Trade =egotiations7 Desiring to further the ob4ectives of GATT !!" and to secure additional benefits for the international trade of developing countries7 .ecogni9ing the importance of the provisions of Article VII of GATT !!" and desiring to elaborate rules for their application in order to provide greater uniformity and certainty in their implementation7 .ecogni9ing the need for a fair' uniform and neutral system for the valuation of goods for customs purposes that precludes the use of arbitrary or fictitious customs values7 .ecogni9ing that the basis for valuation of goods for customs purposes should' to the greatest e(tent possible' be the transaction value of the goods being valued7

.ecogni9ing that customs value should be based on simple and e.uitable criteria consistent with commercial practices and that valuation procedures should be of general application without distinction between sources of supply7 .ecogni9ing that valuation procedures should not be used to combat dumping7 <ereby agree as follows: PART I R3DA* ?= B3*T?1* VAD3ATI?= Article 1 # The customs value of imported goods shall be the transaction value' that is the price actually paid or payable for the goods when sold for e(port to the country of importation ad4usted in accordance with the provisions of Article ;' provided: +a, that there are no restrictions as to the disposition or use of the goods by the buyer other than restrictions which: +i, +ii, +iii, +b, +c, are imposed or re.uired by law or by the public authorities in the country of importation7 limit the geographical area in which the goods may be resold7 or do not substantially affect the value of the goods7

that the sale or price is not sub4ect to some condition or consideration for which a value cannot be determined with respect to the goods being valued7 that no part of the proceeds of any subse.uent resale' disposal or use of the goods by the buyer will accrue directly or indirectly to the seller' unless an appropriate ad4ustment can be made in accordance with the provisions of Article ;7 and that the buyer and seller are not related' or where the buyer and seller are related' that the transaction value is acceptable for customs purposes under the provisions of paragraph %# In determining whether the transaction value is acceptable for the purposes of paragraph ' the fact that the buyer and the seller are related within the meaning of Article / shall not in itself be grounds for regarding the transaction value as unacceptable# In such case the circumstances surrounding the sale shall be e(amined and the transaction value shall be accepted provided that the relationship did not influence the price# If' in the light of information provided by the importer or otherwise' the customs administration has grounds for considering that the relationship influenced the price' it shall communicate its grounds to the importer and the importer shall be given a reasonable opportunity to respond# If the importer so re.uests' the communication of the grounds shall be in writing#

+d,

%#

+a,

+b,

In a sale between related persons' the transaction value shall be accepted and the goods valued in accordance with the provisions of paragraph whenever the importer demonstrates that such value closely appro(imates to one of the following occurring at or about the same time: +i, +ii, +iii, the transaction value in sales to unrelated buyers of identical or similar goods for e(port to the same country of importation7 the customs value of identical or similar goods as determined under the provisions of Article /7 the customs value of identical or similar goods as determined under the provisions of Article 67

In applying the foregoing tests' due account shall be ta$en of demonstrated differences in commercial levels' .uantity levels' the elements enumerated in Article ; and costs incurred by the seller in sales in which the seller and the buyer are not related that are not incurred by the seller in sales in which the seller and the buyer are related# +c, The tests set forth in paragraph %+b, are to be used at the initiative of the importer and only for comparison purposes# *ubstitute values may not be established under the provisions of paragraph %+b,# Article 2 # +a, If the customs value of the imported goods cannot be determined under the provisions of Article ' the customs value shall be the transaction value of identical goods sold for e(port to the same country of importation and e(ported at or about the same time as the goods being valued# In applying this Article' the transaction value of identical goods in a sale at the same commercial level and in substantially the same .uantity as the goods being valued shall be used to determine the customs value# )here no such sale is found' the transaction value of identical goods sold at a different commercial level and5or in different .uantities' ad4usted to ta$e account of differences attributable to commercial level and5or to .uantity' shall be used' provided that such ad4ustments can be made on the basis of demonstrated evidence which clearly establishes the reasonableness and accuracy of the ad4ustment' whether the ad4ustment leads to an increase or a decrease in the value#

+b,

%# )here the costs and charges referred to in paragraph % of Article ; are included in the transaction value' an ad4ustment shall be made to ta$e account of significant differences in such costs and charges between the imported goods and the identical goods in .uestion arising from differences in distances and modes of transport# -# If' in applying this Article' more than one transaction value of identical goods is found' the lowest such value shall be used to determine the customs value of the imported goods# Article 3

+a,

If the customs value of the imported goods cannot be determined under the provisions of Articles and %' the customs value shall be the transaction value of similar goods sold for e(port to the same country of importation and e(ported at or about the same time as the goods being valued# In applying this Article' the transaction value of similar goods in a sale at the same commercial level and in substantially the same .uantity as the goods being valued shall be used to determine the customs value# )here no such sale is found' the transaction value of similar goods sold at a different commercial level and5or in different .uantities' ad4usted to ta$e account of differences attributable to commercial level and5or to .uantity' shall be used' provided that such ad4ustments can be made on the basis of demonstrated evidence which clearly establishes the reasonableness and accuracy of the ad4ustment' whether the ad4ustment leads to an increase or a decrease in the value#

+b,

%# )here the costs and charges referred to in paragraph % of Article ; are included in the transaction value' an ad4ustment shall be made to ta$e account of significant differences in such costs and charges between the imported goods and the similar goods in .uestion arising from differences in distances and modes of transport# -# If' in applying this Article' more than one transaction value of similar goods is found' the lowest such value shall be used to determine the customs value of the imported goods# Article 4 If the customs value of the imported goods cannot be determined under the provisions of Articles ' % and -' the customs value shall be determined under the provisions of Article / or' when the customs value cannot be determined under that Article' under the provisions of Article 6 e(cept that' at the re.uest of the importer' the order of application of Articles / and 6 shall be reversed# Article # +a, If the imported goods or identical or similar imported goods are sold in the country of importation in the condition as imported' the customs value of the imported goods under the provisions of this Article shall be based on the unit price at which the imported goods or identical or similar imported goods are so sold in the greatest aggregate .uantity' at or about the time of the importation of the goods being valued' to persons who are not related to the persons from whom they buy such goods' sub4ect to deductions for the following: +i, either the commissions usually paid or agreed to be paid or the additions usually made for profit and general e(penses in connection with sales in such country of imported goods of the same class or $ind7 the usual costs of transport and insurance and associated costs incurred within the country of importation7 where appropriate' the costs and charges referred to in paragraph % of Article ;7 and the customs duties and other national ta(es payable in the country of importation by reason of the importation or sale of the goods#

+ii, +iii, +iv,

+b,

If neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued' the customs value shall' sub4ect otherwise to the provisions of paragraph +a,' be based on the unit price at which the imported goods or identical or similar imported goods are sold in the country of importation in the condition as imported at the earliest date after the importation of the goods being valued but before the e(piration of !8 days after such importation#

%# If neither the imported goods nor identical nor similar imported goods are sold in the country of importation in the condition as imported' then' if the importer so re.uests' the customs value shall be based on the unit price at which the imported goods' after further processing' are sold in the greatest aggregate .uantity to persons in the country of importation who are not related to the persons from whom they buy such goods' due allowance being made for the value added by such processing and the deductions provided for in paragraph +a,# Article $ # The customs value of imported goods under the provisions of this Article shall be based on a computed value# Bomputed value shall consist of the sum of: +a, +b, the cost or value of materials and fabrication or other processing employed in producing the imported goods7 an amount for profit and general e(penses e.ual to that usually reflected in sales of goods of the same class or $ind as the goods being valued which are made by producers in the country of e(portation for e(port to the country of importation7 the cost or value of all other e(penses necessary to reflect the valuation option chosen by the 1ember under paragraph % of Article ; #

+c,

%# =o 1ember may re.uire or compel any person not resident in its own territory to produce for e(amination' or to allow access to' any account or other record for the purposes of determining a computed value# <owever' information supplied by the producer of the goods for the purposes of determining the customs value under the provisions of this Article may be verified in another country by the authorities of the country of importation with the agreement of the producer and provided they give sufficient advance notice to the government of the country in .uestion and the latter does not ob4ect to the investigation# Article & # If the customs value of the imported goods cannot be determined under the provisions of Articles through 6' inclusive' the customs value shall be determined using reasonable means consistent with the principles and general provisions of this Agreement and of Article VII of GATT !!" and on the basis of data available in the country of importation# %# =o customs value shall be determined under the provisions of this Article on the basis of: +a, +b, the selling price in the country of importation of goods produced in such country7 a system which provides for the acceptance for customs purposes of the higher of two alternative values7

+c, +d, +e, +f, +g,

the price of goods on the domestic mar$et of the country of e(portation7 the cost of production other than computed values which have been determined for identical or similar goods in accordance with the provisions of Article 67 the price of the goods for e(port to a country other than the country of importation7 minimum customs values7 or arbitrary or fictitious values#

-# If the importer so re.uests' the importer shall be informed in writing of the customs value determined under the provisions of this Article and the method used to determine such value# Article ' # In determining the customs value under the provisions of Article ' there shall be added to the price actually paid or payable for the imported goods: +a, the following' to the e(tent that they are incurred by the buyer but are not included in the price actually paid or payable for the goods: +i, +ii, +iii, +b, commissions and bro$erage' e(cept buying commissions7 the cost of containers which are treated as being one for customs purposes with the goods in .uestion7 the cost of pac$ing whether for labour or materials7

the value' apportioned as appropriate' of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for e(port of the imported goods' to the e(tent that such value has not been included in the price actually paid or payable: +i, +ii, +iii, +iv, materials' components' parts and similar items incorporated in the imported goods7 tools' dies' moulds and similar items used in the production of the imported goods7 materials consumed in the production of the imported goods7 engineering' development' artwor$' design wor$' and plans and s$etches underta$en elsewhere than in the country of importation and necessary for the production of the imported goods7

+c,

royalties and licence fees related to the goods being valued that the buyer must pay' either directly or indirectly' as a condition of sale of the goods being valued' to the e(tent that such royalties and fees are not included in the price actually paid or payable7

+d,

the value of any part of the proceeds of any subse.uent resale' disposal or use of the imported goods that accrues directly or indirectly to the seller#

%# In framing its legislation' each 1ember shall provide for the inclusion in or the e(clusion from the customs value' in whole or in part' of the following: +a, +b, +c, the cost of transport of the imported goods to the port or place of importation7 loading' unloading and handling charges associated with the transport of the imported goods to the port or place of importation7 and the cost of insurance#

-# Additions to the price actually paid or payable shall be made under this Article only on the basis of ob4ective and .uantifiable data# "# =o additions shall be made to the price actually paid or payable in determining the customs value e(cept as provided in this Article# Article * # )here the conversion of currency is necessary for the determination of the customs value' the rate of e(change to be used shall be that duly published by the competent authorities of the country of importation concerned and shall reflect as effectively as possible' in respect of the period covered by each such document of publication' the current value of such currency in commercial transactions in terms of the currency of the country of importation# %# The conversion rate to be used shall be that in effect at the time of e(portation or the time of importation' as provided by each 1ember# Article 1All information which is by nature confidential or which is provided on a confidential basis for the purposes of customs valuation shall be treated as strictly confidential by the authorities concerned who shall not disclose it without the specific permission of the person or government providing such information' e(cept to the e(tent that it may be re.uired to be disclosed in the conte(t of 4udicial proceedings# Article 11 # The legislation of each 1ember shall provide in regard to a determination of customs value for the right of appeal' without penalty' by the importer or any other person liable for the payment of the duty# %# An initial right of appeal without penalty may be to an authority within the customs administration or to an independent body' but the legislation of each 1ember shall provide for the right of appeal without penalty to a 4udicial authority# -# =otice of the decision on appeal shall be given to the appellant and the reasons for such decision shall be provided in writing# The appellant shall also be informed of any rights of further appeal#

Article 12 Daws' regulations' 4udicial decisions and administrative rulings of general application giving effect to this Agreement shall be published in conformity with Article @ of GATT !!" by the country of importation concerned# Article 13 If' in the course of determining the customs value of imported goods' it becomes necessary to delay the final determination of such customs value' the importer of the goods shall nevertheless be able to withdraw them from customs if' where so re.uired' the importer provides sufficient guarantee in the form of a surety' a deposit or some other appropriate instrument' covering the ultimate payment of customs duties for which the goods may be liable# The legislation of each 1ember shall ma$e provisions for such circumstances# Article 14 The notes at Anne( I to this Agreement form an integral part of this Agreement and the Articles of this Agreement are to be read and applied in con4unction with their respective notes# Anne(es II and III also form an integral part of this Agreement# Article 1 # In this Agreement: +a, +b, +c, %# 0customs value of imported goods0 means the value of goods for the purposes of levying ad valorem duties of customs on imported goods7 0country of importation0 means country or customs territory of importation7 and 0produced0 includes grown' manufactured and mined#

In this Agreement: +a, 0identical goods0 means goods which are the same in all respects' including physical characteristics' .uality and reputation# 1inor differences in appearance would not preclude goods otherwise conforming to the definition from being regarded as identical7 0similar goods0 means goods which' although not ali$e in all respects' have li$e characteristics and li$e component materials which enable them to perform the same functions and to be commercially interchangeable# The .uality of the goods' their reputation and the e(istence of a trademar$ are among the factors to be considered in determining whether goods are similar7 the terms 0identical goods0 and 0similar goods0 do not include' as the case may be' goods which incorporate or reflect engineering' development' artwor$' design wor$' and plans and s$etches for which no ad4ustment has been made under paragraph +b,

+b,

+c,

+iv, of Article ; because such elements were underta$en in the country of importation7 +d, +e, goods shall not be regarded as 0identical goods0 or 0similar goods0 unless they were produced in the same country as the goods being valued7 goods produced by a different person shall be ta$en into account only when there are no identical goods or similar goods' as the case may be' produced by the same person as the goods being valued#

-# In this Agreement 0goods of the same class or $ind0 means goods which fall within a group or range of goods produced by a particular industry or industry sector' and includes identical or similar goods# "# &or the purposes of this Agreement' persons shall be deemed to be related only if: +a, +b, +c, +d, +e, +f, +g, +h, they are officers or directors of one another>s businesses7 they are legally recogni2ed partners in business7 they are employer and employee7 any person directly or indirectly owns' controls or holds / per cent or more of the outstanding voting stoc$ or shares of both of them7 one of them directly or indirectly controls the other7 both of them are directly or indirectly controlled by a third person7 together they directly or indirectly control a third person7 or they are members of the same family#

/# Persons who are associated in business with one another in that one is the sole agent' sole distributor or sole concessionaire' however described' of the other shall be deemed to be related for the purposes of this Agreement if they fall within the criteria of paragraph "# Article 1$ 3pon written re.uest' the importer shall have the right to an e(planation in writing from the customs administration of the country of importation as to how the customs value of the importerFs goods was determined# Article 1& =othing in this Agreement shall be construed as restricting or calling into .uestion the rights of customs administrations to satisfy themselves as to the truth or accuracy of any statement' document or declaration presented for customs valuation purposes# PART II

A91I=I*TRATI?=' B?=*3DTATI?=* A=9 9I*P3TA *ATTDA1A=T Article 1' Institutions # There is hereby established a Bommittee on Bustoms Valuation +referred to in this Agreement as 0the Bommittee0, composed of representatives from each of the 1embers# The Bommittee shall elect its own Bhairman and shall normally meet once a year' or as is otherwise envisaged by the relevant provisions of this Agreement' for the purpose of affording 1embers the opportunity to consult on matters relating to the administration of the customs valuation system by any 1ember as it might affect the operation of this Agreement or the furtherance of its ob4ectives and carrying out such other responsibilities as may be assigned to it by the 1embers# The )T? *ecretariat shall act as the secretariat to the Bommittee# %# There shall be established a Technical Bommittee on Bustoms Valuation +referred to in this Agreement as 0the Technical Bommittee0, under the auspices of the Bustoms Bo-operation Bouncil +referred to in this Agreement as 0the BBB0,' which shall carry out the responsibilities described in Anne( II to this Agreement and shall operate in accordance with the rules of procedure contained therein# Article 1* +onsultations and Dispute !ettlement # A(cept as otherwise provided herein' the 9ispute *ettlement 3nderstanding is applicable to consultations and the settlement of disputes under this Agreement# %# If any 1ember considers that any benefit accruing to it' directly or indirectly' under this Agreement is being nullified or impaired' or that the achievement of any ob4ective of this Agreement is being impeded' as a result of the actions of another 1ember or of other 1embers' it may' with a view to reaching a mutually satisfactory solution of this matter' re.uest consultations with the 1ember or 1embers in .uestion# Aach 1ember shall afford sympathetic consideration to any re.uest from another 1ember for consultations# -# The Technical Bommittee shall provide' upon re.uest' advice and assistance to 1embers engaged in consultations# "# At the re.uest of a party to the dispute' or on its own initiative' a panel established to e(amine a dispute relating to the provisions of this Agreement may re.uest the Technical Bommittee to carry out an e(amination of any .uestions re.uiring technical consideration# The panel shall determine the terms of reference of the Technical Bommittee for the particular dispute and set a time period for receipt of the report of the Technical Bommittee# The panel shall ta$e into consideration the report of the Technical Bommittee# In the event that the Technical Bommittee is unable to reach consensus on a matter referred to it pursuant to this paragraph' the panel should afford the parties to the dispute an opportunity to present their views on the matter to the panel# /# Bonfidential information provided to the panel shall not be disclosed without formal authori2ation from the person' body or authority providing such information# )here such information is re.uested from the panel but release of such information by the panel is not authori2ed' a nonconfidential summary of this information' authori2ed by the person' body or authority providing the information' shall be provided#

PART III *PABIAD A=9 9I&&ARA=TIAD TRAAT1A=T Article 2# 9eveloping country 1embers not party to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade done on % April !:! may delay application of the provisions of this Agreement for a period not e(ceeding five years from the date of entry into force of the )T? Agreement for such 1embers# 9eveloping country 1embers who choose to delay application of this Agreement shall notify the 9irector-General of the )T? accordingly# %# In addition to paragraph ' developing country 1embers not party to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade done on % April !:! may delay application of paragraph %+b,+iii, of Article and Article 6 for a period not e(ceeding three years following their application of all other provisions of this Agreement# 9eveloping country 1embers that choose to delay application of the provisions specified in this paragraph shall notify the 9irector-General of the )T? accordingly# -# 9eveloped country 1embers shall furnish' on mutually agreed terms' technical assistance to developing country 1embers that so re.uest# ?n this basis developed country 1embers shall draw up programmes of technical assistance which may include' inter alia7 training of personnel' assistance in preparing implementation measures' access to sources of information regarding customs valuation methodology' and advice on the application of the provisions of this Agreement# PART IV &I=AD PR?VI*I?=* Article 21 .eser#ations Reservations may not be entered in respect of any of the provisions of this Agreement without the consent of the other 1embers# Article 22 0ational :egislation # Aach 1ember shall ensure' not later than the date of application of the provisions of this Agreement for it' the conformity of its laws' regulations and administrative procedures with the provisions of this Agreement# %# Aach 1ember shall inform the Bommittee of any changes in its laws and regulations relevant to this Agreement and in the administration of such laws and regulations# Article 23

.e#ie/ The Bommittee shall review annually the implementation and operation of this Agreement ta$ing into account the ob4ectives thereof# The Bommittee shall annually inform the Bouncil for Trade in Goods of developments during the period covered by such reviews# Article 24 !ecretariat This Agreement shall be serviced by the )T? *ecretariat e(cept in regard to those responsibilities specifically assigned to the Technical Bommittee' which will be serviced by the BBB *ecretariat# A==A@ I I=TARPRATATIVA =?TA* ;eneral 0ote !e"uential Application of <aluation Met4ods # Articles through : define how the customs value of imported goods is to be determined under the provisions of this Agreement# The methods of valuation are set out in a se.uential order of application# The primary method for customs valuation is defined in Article and imported goods are to be valued in accordance with the provisions of this Article whenever the conditions prescribed therein are fulfilled# %# )here the customs value cannot be determined under the provisions of Article ' it is to be determined by proceeding se.uentially through the succeeding Articles to the first such Article under which the customs value can be determined# A(cept as provided in Article "' it is only when the customs value cannot be determined under the provisions of a particular Article that the provisions of the ne(t Article in the se.uence can be used# -# If the importer does not re.uest that the order of Articles / and 6 be reversed' the normal order of the se.uence is to be followed# If the importer does so re.uest but it then proves impossible to determine the customs value under the provisions of Article 6' the customs value is to be determined under the provisions of Article /' if it can be so determined# "# )here the customs value cannot be determined under the provisions of Articles is to be determined under the provisions of Article :# (se of ;enerally Accepted Accounting Principles # 0Generally accepted accounting principles0 refers to the recogni2ed consensus or substantial authoritative support within a country at a particular time as to which economic resources and obligations should be recorded as assets and liabilities' which changes in assets and liabilities should be recorded' how the assets and liabilities and changes in them should be measured' what information should be disclosed and how it should be disclosed' and which financial statements should be prepared# These standards may be broad guidelines of general application as well as detailed practices and procedures# through 6 it

%# &or the purposes of this Agreement' the customs administration of each 1ember shall utili2e information prepared in a manner consistent with generally accepted accounting principles in the country which is appropriate for the Article in .uestion# &or e(ample' the determination of usual profit and general e(penses under the provisions of Article / would be carried out utili2ing information prepared in a manner consistent with generally accepted accounting principles of the country of importation# ?n the other hand' the determination of usual profit and general e(penses under the provisions of Article 6 would be carried out utili2ing information prepared in a manner consistent with generally accepted accounting principles of the country of production# As a further e(ample' the determination of an element provided for in paragraph +b,+ii, of Article ; underta$en in the country of importation would be carried out utili2ing information in a manner consistent with the generally accepted accounting principles of that country# 0ote to Article 1 Price Actually Paid or Payable # The price actually paid or payable is the total payment made or to be made by the buyer to or for the benefit of the seller for the imported goods# The payment need not necessarily ta$e the form of a transfer of money# Payment may be made by way of letters of credit or negotiable instruments# Payment may be made directly or indirectly# An e(ample of an indirect payment would be the settlement by the buyer' whether in whole or in part' of a debt owed by the seller# %# Activities underta$en by the buyer on the buyer>s own account' other than those for which an ad4ustment is provided in Article ;' are not considered to be an indirect payment to the seller' even though they might be regarded as of benefit to the seller# The costs of such activities shall not' therefore' be added to the price actually paid or payable in determining the customs value# -# The customs value shall not include the following charges or costs' provided that they are distinguished from the price actually paid or payable for the imported goods: +a, charges for construction' erection' assembly' maintenance or technical assistance' underta$en after importation on imported goods such as industrial plant' machinery or e.uipment7 the cost of transport after importation7 duties and ta(es of the country of importation#

+b, +c,

"# The price actually paid or payable refers to the price for the imported goods# Thus the flow of dividends or other payments from the buyer to the seller that do not relate to the imported goods are not part of the customs value# Paragrap4 1(a)(iii, Among restrictions which would not render a price actually paid or payable unacceptable are restrictions which do not substantially affect the value of the goods# An e(ample of such restrictions would be the case where a seller re.uires a buyer of automobiles not to sell or e(hibit them prior to a fi(ed date which represents the beginning of a model year# Paragrap4 1(b,

# If the sale or price is sub4ect to some condition or consideration for which a value cannot be determined with respect to the goods being valued' the transaction value shall not be acceptable for customs purposes# *ome e(amples of this include: +a, +b, +c, the seller establishes the price of the imported goods on condition that the buyer will also buy other goods in specified .uantities7 the price of the imported goods is dependent upon the price or prices at which the buyer of the imported goods sells other goods to the seller of the imported goods7 the price is established on the basis of a form of payment e(traneous to the imported goods' such as where the imported goods are semi-finished goods which have been provided by the seller on condition that the seller will receive a specified .uantity of the finished goods#

%# <owever' conditions or considerations relating to the production or mar$eting of the imported goods shall not result in re4ection of the transaction value# &or e(ample' the fact that the buyer furnishes the seller with engineering and plans underta$en in the country of importation shall not result in re4ection of the transaction value for the purposes of Article # Di$ewise' if the buyer underta$es on the buyerFs own account' even though by agreement with the seller' activities relating to the mar$eting of the imported goods' the value of these activities is not part of the customs value nor shall such activities result in re4ection of the transaction value# Paragrap4 2 # Paragraphs %+a, and %+b, provide different means of establishing the acceptability of a transaction value# %# Paragraph %+a, provides that where the buyer and the seller are related' the circumstances surrounding the sale shall be e(amined and the transaction value shall be accepted as the customs value provided that the relationship did not influence the price# It is not intended that there should be an e(amination of the circumstances in all cases where the buyer and the seller are related# *uch e(amination will only be re.uired where there are doubts about the acceptability of the price# )here the customs administration have no doubts about the acceptability of the price' it should be accepted without re.uesting further information from the importer# &or e(ample' the customs administration may have previously e(amined the relationship' or it may already have detailed information concerning the buyer and the seller' and may already be satisfied from such e(amination or information that the relationship did not influence the price# -# )here the customs administration is unable to accept the transaction value without further in.uiry' it should give the importer an opportunity to supply such further detailed information as may be necessary to enable it to e(amine the circumstances surrounding the sale# In this conte(t' the customs administration should be prepared to e(amine relevant aspects of the transaction' including the way in which the buyer and seller organi2e their commercial relations and the way in which the price in .uestion was arrived at' in order to determine whether the relationship influenced the price# )here it can be shown that the buyer and seller' although related under the provisions of Article /' buy from and sell to each other as if they were not related' this would demonstrate that the price had not been influenced by the relationship# As an e(ample of this' if the price had been settled in a manner consistent with the normal pricing practices of the industry in .uestion or with the way the seller settles prices for sales to buyers who are not related to the seller' this would demonstrate that the price had not been influenced by the relationship# As a further e(ample' where it is shown that the price is ade.uate to ensure recovery of all costs plus a profit which is representative of the firm>s overall profit reali2ed over a representative period of time +e#g# on an annual basis, in sales of goods of the same class or $ind' this would demonstrate that the price had not been influenced#

"# Paragraph %+b, provides an opportunity for the importer to demonstrate that the transaction value closely appro(imates to a 0test0 value previously accepted by the customs administration and is therefore acceptable under the provisions of Article # )here a test under paragraph %+b, is met' it is not necessary to e(amine the .uestion of influence under paragraph %+a,# If the customs administration has already sufficient information to be satisfied' without further detailed in.uiries' that one of the tests provided in paragraph %+b, has been met' there is no reason for it to re.uire the importer to demonstrate that the test can be met# In paragraph %+b, the term 0unrelated buyers0 means buyers who are not related to the seller in any particular case# Paragrap4 2(b, A number of factors must be ta$en into consideration in determining whether one value 0closely appro(imates0 to another value# These factors include the nature of the imported goods' the nature of the industry itself' the season in which the goods are imported' and' whether the difference in values is commercially significant# *ince these factors may vary from case to case' it would be impossible to apply a uniform standard such as a fi(ed percentage' in each case# &or e(ample' a small difference in value in a case involving one type of goods could be unacceptable while a large difference in a case involving another type of goods might be acceptable in determining whether the transaction value closely appro(imates to the 0test0 values set forth in paragraph %+b, of Article # 0ote to Article 2 # In applying Article %' the customs administration shall' wherever possible' use a sale of identical goods at the same commercial level and in substantially the same .uantities as the goods being valued# )here no such sale is found' a sale of identical goods that ta$es place under any one of the following three conditions may be used: +a, +b, +c, a sale at the same commercial level but in different .uantities7 a sale at a different commercial level but in substantially the same .uantities7 or a sale at a different commercial level and in different .uantities#

%# <aving found a sale under any one of these three conditions ad4ustments will then be made' as the case may be' for: +a, +b, +c, .uantity factors only7 commercial level factors only7 or both commercial level and .uantity factors#

-# The e(pression 0and5or0 allows the fle(ibility to use the sales and ma$e the necessary ad4ustments in any one of the three conditions described above# "# &or the purposes of Article %' the transaction value of identical imported goods means a customs value' ad4usted as provided for in paragraphs +b, and %' which has already been accepted under Article # /# A condition for ad4ustment because of different commercial levels or different .uantities is that such ad4ustment' whether it leads to an increase or a decrease in the value' be made only on the basis of demonstrated evidence that clearly establishes the reasonableness and accuracy of the

ad4ustments' e#g# valid price lists containing prices referring to different levels or different .uantities# As an e(ample of this' if the imported goods being valued consist of a shipment of 8 units and the only identical imported goods for which a transaction value e(ists involved a sale of /88 units' and it is recogni2ed that the seller grants .uantity discounts' the re.uired ad4ustment may be accomplished by resorting to the seller>s price list and using that price applicable to a sale of 8 units# This does not re.uire that a sale had to have been made in .uantities of 8 as long as the price list has been established as being bona fide through sales at other .uantities# In the absence of such an ob4ective measure' however' the determination of a customs value under the provisions of Article % is not appropriate# 0ote to Article 3 # In applying Article -' the customs administration shall' wherever possible' use a sale of similar goods at the same commercial level and in substantially the same .uantities as the goods being valued# )here no such sale is found' a sale of similar goods that ta$es place under any one of the following three conditions may be used: +a, +b, +c, a sale at the same commercial level but in different .uantities7 a sale at a different commercial level but in substantially the same .uantities7 or a sale at a different commercial level and in different .uantities#

%# <aving found a sale under any one of these three conditions ad4ustments will then be made' as the case may be' for: +a, +b, +c, .uantity factors only7 commercial level factors only7 or both commercial level and .uantity factors#

-# The e(pression 0and5or0 allows the fle(ibility to use the sales and ma$e the necessary ad4ustments in any one of the three conditions described above# "# &or the purpose of Article -' the transaction value of similar imported goods means a customs value' ad4usted as provided for in paragraphs +b, and %' which has already been accepted under Article # /# A condition for ad4ustment because of different commercial levels or different .uantities is that such ad4ustment' whether it leads to an increase or a decrease in the value' be made only on the basis of demonstrated evidence that clearly establishes the reasonableness and accuracy of the ad4ustment' e#g# valid price lists containing prices referring to different levels or different .uantities# As an e(ample of this' if the imported goods being valued consist of a shipment of 8 units and the only similar imported goods for which a transaction value e(ists involved a sale of /88 units' and it is recogni2ed that the seller grants .uantity discounts' the re.uired ad4ustment may be accomplished by resorting to the seller>s price list and using that price applicable to a sale of 8 units# This does not re.uire that a sale had to have been made in .uantities of 8 as long as the price list has been established as being bona fide through sales at other .uantities# In the absence of such an ob4ective measure' however' the determination of a customs value under the provisions of Article - is not appropriate#

0ote to Article # The term 0unit price at which ### goods are sold in the greatest aggregate .uantity0 means the price at which the greatest number of units is sold in sales to persons who are not related to the persons from whom they buy such goods at the first commercial level after importation at which such sales ta$e place# %# As an e(ample of this' goods are sold from a price list which grants favourable unit prices for purchases made in larger .uantities# !ale "uantity - 8 units -%/ units over %/ units (nit price 88 !/ !8 0umber of sales 8 sales of / units / sales of - units / sales of units sale of -8 units sale of /8 units 5otal "uantity sold at eac4 price 6/ // ;8

The greatest number of units sold at a price is ;87 therefore' the unit price in the greatest aggregate .uantity is !8# -# As another e(ample of this' two sales occur# In the first sale /88 units are sold at a price of !/ currency units each# In the second sale "88 units are sold at a price of !8 currency units each# In this e(ample' the greatest number of units sold at a particular price is /887 therefore' the unit price in the greatest aggregate .uantity is !/# "# A third e(ample would be the following situation where various .uantities are sold at various prices# (a) !ales !ale "uantity "8 units -8 units / units /8 units %/ units -/ units / units (nit price 88 !8 88 !/ 8/ !8 88

(b) 5otals 5otal "uantity sold 6/ (nit price !8

/8 68 %/

!/ 88 8/

In this e(ample' the greatest number of units sold at a particular price is 6/7 therefore' the unit price in the greatest aggregate .uantity is !8# /# Any sale in the importing country' as described in paragraph above' to a person who supplies directly or indirectly free of charge or at reduced cost for use in connection with the production and sale for e(port of the imported goods any of the elements specified in paragraph +b, of Article ;' should not be ta$en into account in establishing the unit price for the purposes of Article /# 6# It should be noted that 0profit and general e(penses0 referred to in paragraph of Article / should be ta$en as a whole# The figure for the purposes of this deduction should be determined on the basis of information supplied by or on behalf of the importer unless the importer>s figures are inconsistent with those obtained in sales in the country of importation of imported goods of the same class or $ind# )here the importer>s figures are inconsistent with such figures' the amount for profit and general e(penses may be based upon relevant information other than that supplied by or on behalf of the importer# :# The 0general e(penses0 include the direct and indirect costs of mar$eting the goods in .uestion# ;# Docal ta(es payable by reason of the sale of the goods for which a deduction is not made under the provisions of paragraph +a,+iv, of Article / shall be deducted under the provisions of paragraph +a,+i, of Article /# !# In determining either the commissions or the usual profits and general e(penses under the provisions of paragraph of Article /' the .uestion whether certain goods are 0of the same class or $ind0 as other goods must be determined on a case-by-case basis by reference to the circumstances involved# *ales in the country of importation of the narrowest group or range of imported goods of the same class or $ind' which includes the goods being valued' for which the necessary information can be provided' should be e(amined# &or the purposes of Article /' 0goods of the same class or $ind0 includes goods imported from the same country as the goods being valued as well as goods imported from other countries# 8# &or the purposes of paragraph +b, of Article /' the 0earliest date0 shall be the date by which sales of the imported goods or of identical or similar imported goods are made in sufficient .uantity to establish the unit price# # )here the method in paragraph % of Article / is used' deductions made for the value added by further processing shall be based on ob4ective and .uantifiable data relating to the cost of such wor$# Accepted industry formulas' recipes' methods of construction' and other industry practices would form the basis of the calculations# %# It is recogni2ed that the method of valuation provided for in paragraph % of Article / would normally not be applicable when' as a result of the further processing' the imported goods lose their identity# <owever' there can be instances where' although the identity of the imported goods is lost' the value added by the processing can be determined accurately without unreasonable difficulty# ?n

the other hand' there can also be instances where the imported goods maintain their identity but form such a minor element in the goods sold in the country of importation that the use of this valuation method would be un4ustified# In view of the above' each situation of this type must be considered on a case-by-case basis# 0ote to Article $ # As a general rule' customs value is determined under this Agreement on the basis of information readily available in the country of importation# In order to determine a computed value' however' it may be necessary to e(amine the costs of producing the goods being valued and other information which has to be obtained from outside the country of importation# &urthermore' in most cases the producer of the goods will be outside the 4urisdiction of the authorities of the country of importation# The use of the computed value method will generally be limited to those cases where the buyer and seller are related' and the producer is prepared to supply to the authorities of the country of importation the necessary costings and to provide facilities for any subse.uent verification which may be necessary# %# The 0cost or value0 referred to in paragraph +a, of Article 6 is to be determined on the basis of information relating to the production of the goods being valued supplied by or on behalf of the producer# It is to be based upon the commercial accounts of the producer' provided that such accounts are consistent with the generally accepted accounting principles applied in the country where the goods are produced# -# The 0cost or value0 shall include the cost of elements specified in paragraphs +a,+ii, and +iii, of Article ;# It shall also include the value' apportioned as appropriate under the provisions of the relevant note to Article ;' of any element specified in paragraph +b, of Article ; which has been supplied directly or indirectly by the buyer for use in connection with the production of the imported goods# The value of the elements specified in paragraph +b,+iv, of Article ; which are underta$en in the country of importation shall be included only to the e(tent that such elements are charged to the producer# It is to be understood that no cost or value of the elements referred to in this paragraph shall be counted twice in determining the computed value# "# The 0amount for profit and general e(penses0 referred to in paragraph +b, of Article 6 is to be determined on the basis of information supplied by or on behalf of the producer unless the producer>s figures are inconsistent with those usually reflected in sales of goods of the same class or $ind as the goods being valued which are made by producers in the country of e(portation for e(port to the country of importation# /# It should be noted in this conte(t that the 0amount for profit and general e(penses0 has to be ta$en as a whole# It follows that if' in any particular case' the producer>s profit figure is low and the producer>s general e(penses are high' the producer>s profit and general e(penses ta$en together may nevertheless be consistent with that usually reflected in sales of goods of the same class or $ind# *uch a situation might occur' for e(ample' if a product were being launched in the country of importation and the producer accepted a nil or low profit to offset high general e(penses associated with the launch# )here the producer can demonstrate a low profit on sales of the imported goods because of particular commercial circumstances' the producer>s actual profit figures should be ta$en into account provided that the producer has valid commercial reasons to 4ustify them and the producer>s pricing policy reflects usual pricing policies in the branch of industry concerned# *uch a situation might occur' for e(ample' where producers have been forced to lower prices temporarily because of an unforeseeable drop in demand' or where they sell goods to complement a range of goods being produced in the country of importation and accept a low profit to maintain competitivity# )here the producer>s own figures for profit and general e(penses are not consistent with those usually reflected in sales of goods of the same class or $ind as the goods being valued which are made by producers in

the country of e(portation for e(port to the country of importation' the amount for profit and general e(penses may be based upon relevant information other than that supplied by or on behalf of the producer of the goods# 6# )here information other than that supplied by or on behalf of the producer is used for the purposes of determining a computed value' the authorities of the importing country shall inform the importer' if the latter so re.uests' of the source of such information' the data used and the calculations based upon such data' sub4ect to the provisions of Article 8# :# The 0general e(penses0 referred to in paragraph +b, of Article 6 covers the direct and indirect costs of producing and selling the goods for e(port which are not included under paragraph +a, of Article 6# ;# )hether certain goods are 0of the same class or $ind0 as other goods must be determined on a case-by-case basis with reference to the circumstances involved# In determining the usual profits and general e(penses under the provisions of Article 6' sales for e(port to the country of importation of the narrowest group or range of goods' which includes the goods being valued' for which the necessary information can be provided' should be e(amined# &or the purposes of Article 6' 0goods of the same class or $ind0 must be from the same country as the goods being valued# 0ote to Article & # Bustoms values determined under the provisions of Article : should' to the greatest e(tent possible' be based on previously determined customs values# %# The methods of valuation to be employed under Article : should be those laid down in Articles through 6 but a reasonable fle(ibility in the application of such methods would be in conformity with the aims and provisions of Article :# -# *ome e(amples of reasonable fle(ibility are as follows: +a, Identical goods - the re.uirement that the identical goods should be e(ported at or about the same time as the goods being valued could be fle(ibly interpreted7 identical imported goods produced in a country other than the country of e(portation of the goods being valued could be the basis for customs valuation7 customs values of identical imported goods already determined under the provisions of Articles / and 6 could be used# !imilar goods - the re.uirement that the similar goods should be e(ported at or about the same time as the goods being valued could be fle(ibly interpreted7 similar imported goods produced in a country other than the country of e(portation of the goods being valued could be the basis for customs valuation7 customs values of similar imported goods already determined under the provisions of Articles / and 6 could be used# Deducti#e met4od - the re.uirement that the goods shall have been sold in the 0condition as imported0 in paragraph +a, of Article / could be fle(ibly interpreted7 the 0!8 days0 re.uirement could be administered fle(ibly# 0ote to Article ' Paragrap4 1(a)(i,

+b,

+c,

The term 0buying commissions0 means fees paid by an importer to the importer>s agent for the service of representing the importer abroad in the purchase of the goods being valued# Paragrap4 1(b)(ii, # There are two factors involved in the apportionment of the elements specified in paragraph +b,+ii, of Article ; to the imported goods - the value of the element itself and the way in which that value is to be apportioned to the imported goods# The apportionment of these elements should be made in a reasonable manner appropriate to the circumstances and in accordance with generally accepted accounting principles# %# Boncerning the value of the element' if the importer ac.uires the element from a seller not related to the importer at a given cost' the value of the element is that cost# If the element was produced by the importer or by a person related to the importer' its value would be the cost of producing it# If the element had been previously used by the importer' regardless of whether it had been ac.uired or produced by such importer' the original cost of ac.uisition or production would have to be ad4usted downward to reflect its use in order to arrive at the value of the element# -# ?nce a value has been determined for the element' it is necessary to apportion that value to the imported goods# Various possibilities e(ist# &or e(ample' the value might be apportioned to the first shipment if the importer wishes to pay duty on the entire value at one time# As another e(ample' the importer may re.uest that the value be apportioned over the number of units produced up to the time of the first shipment# As a further e(ample' the importer may re.uest that the value be apportioned over the entire anticipated production where contracts or firm commitments e(ist for that production# The method of apportionment used will depend upon the documentation provided by the importer# "# As an illustration of the above' an importer provides the producer with a mould to be used in the production of the imported goods and contracts with the producer to buy 8'888 units# Cy the time of arrival of the first shipment of '888 units' the producer has already produced "'888 units# The importer may re.uest the customs administration to apportion the value of the mould over '888 units' "'888 units or 8'888 units# Paragrap4 1(b)(i#, # Additions for the elements specified in paragraph +b,+iv, of Article ; should be based on ob4ective and .uantifiable data# In order to minimi2e the burden for both the importer and customs administration in determining the values to be added' data readily available in the buyer>s commercial record system should be used in so far as possible# %# &or those elements supplied by the buyer which were purchased or leased by the buyer' the addition would be the cost of the purchase or the lease# =o addition shall be made for those elements available in the public domain' other than the cost of obtaining copies of them# -# The ease with which it may be possible to calculate the values to be added will depend on a particular firm>s structure and management practice' as well as its accounting methods# "# &or e(ample' it is possible that a firm which imports a variety of products from several countries maintains the records of its design centre outside the country of importation in such a way as to show accurately the costs attributable to a given product# In such cases' a direct ad4ustment may appropriately be made under the provisions of Article ;#

/# In another case' a firm may carry the cost of the design centre outside the country of importation as a general overhead e(pense without allocation to specific products# In this instance' an appropriate ad4ustment could be made under the provisions of Article ; with respect to the imported goods by apportioning total design centre costs over total production benefiting from the design centre and adding such apportioned cost on a unit basis to imports# 6# Variations in the above circumstances will' of course' re.uire different factors to be considered in determining the proper method of allocation# :# In cases where the production of the element in .uestion involves a number of countries and over a period of time' the ad4ustment should be limited to the value actually added to that element outside the country of importation# Paragrap4 1(c, # The royalties and licence fees referred to in paragraph +c, of Article ; may include' among other things' payments in respect to patents' trade mar$s and copyrights# <owever' the charges for the right to reproduce the imported goods in the country of importation shall not be added to the price actually paid or payable for the imported goods in determining the customs value# %# Payments made by the buyer for the right to distribute or resell the imported goods shall not be added to the price actually paid or payable for the imported goods if such payments are not a condition of the sale for e(port to the country of importation of the imported goods# Paragrap4 3 )here ob4ective and .uantifiable data do not e(ist with regard to the additions re.uired to be made under the provisions of Article ;' the transaction value cannot be determined under the provisions of Article # As an illustration of this' a royalty is paid on the basis of the price in a sale in the importing country of a litre of a particular product that was imported by the $ilogram and made up into a solution after importation# If the royalty is based partially on the imported goods and partially on other factors which have nothing to do with the imported goods +such as when the imported goods are mi(ed with domestic ingredients and are no longer separately identifiable' or when the royalty cannot be distinguished from special financial arrangements between the buyer and the seller,' it would be inappropriate to attempt to ma$e an addition for the royalty# <owever' if the amount of this royalty is based only on the imported goods and can be readily .uantified' an addition to the price actually paid or payable can be made# 0ote to Article * &or the purposes of Article !' 0time of importation0 may include the time of entry for customs purposes# 0ote to Article 11 # Article provides the importer with the right to appeal against a valuation determination made by the customs administration for the goods being valued# Appeal may first be to a higher level in the customs administration' but the importer shall have the right in the final instance to appeal to the 4udiciary#

%# 0)ithout penalty0 means that the importer shall not be sub4ect to a fine or threat of fine merely because the importer chose to e(ercise the right of appeal# Payment of normal court costs and lawyers> fees shall not be considered to be a fine# -# <owever' nothing in Article shall prevent a 1ember from re.uiring full payment of assessed customs duties prior to an appeal# 0ote to Article 1 Paragrap4 4 &or the purposes of Article /' the term 0persons0 includes a legal person' where appropriate# Paragrap4 4(e, &or the purposes of this Agreement' one person shall be deemed to control another when the former is legally or operationally in a position to e(ercise restraint or direction over the latter# A==A@ II TAB<=IBAD B?11ITTAA ?= B3*T?1* VAD3ATI?= # In accordance with Article ; of this Agreement' the Technical Bommittee shall be established under the auspices of the BBB with a view to ensuring' at the technical level' uniformity in interpretation and application of this Agreement# %# The responsibilities of the Technical Bommittee shall include the following: +a, to e(amine specific technical problems arising in the day-to-day administration of the customs valuation system of 1embers and to give advisory opinions on appropriate solutions based upon the facts presented7 to study' as re.uested' valuation laws' procedures and practices as they relate to this Agreement and to prepare reports on the results of such studies7 to prepare and circulate annual reports on the technical aspects of the operation and status of this Agreement7 to furnish such information and advice on any matters concerning the valuation of imported goods for customs purposes as may be re.uested by any 1ember or the Bommittee# *uch information and advice may ta$e the form of advisory opinions' commentaries or e(planatory notes7 to facilitate' as re.uested' technical assistance to 1embers with a view to furthering the international acceptance of this Agreement7 to carry out an e(amination of a matter referred to it by a panel under Article ! of this Agreement7 and to e(ercise such other responsibilities as the Bommittee may assign to it#

+b, +c, +d,

+e, +f, +g, ;eneral

-# The Technical Bommittee shall attempt to conclude its wor$ on specific matters' especially those referred to it by 1embers' the Bommittee or a panel' in a reasonably short period of time# As provided in paragraph " of Article !' a panel shall set a specific time period for receipt of a report of the Technical Bommittee and the Technical Bommittee shall provide its report within that period# "# The Technical Bommittee shall be assisted as appropriate in its activities by the BBB *ecretariat# .epresentation /# Aach 1ember shall have the right to be represented on the Technical Bommittee# Aach 1ember may nominate one delegate and one or more alternates to be its representatives on the Technical Bommittee# *uch a 1ember so represented on the Technical Bommittee is referred to in this Anne( as a 0member of the Technical Bommittee0# Representatives of members of the Technical Bommittee may be assisted by advisers# The )T? *ecretariat may also attend such meetings with observer status# 6# 1embers of the BBB which are not 1embers of the )T? may be represented at meetings of the Technical Bommittee by one delegate and one or more alternates# *uch representatives shall attend meetings of the Technical Bommittee as observers# :# *ub4ect to the approval of the Bhairman of the Technical Bommittee' the *ecretary-General of the BBB +referred to in this Anne( as 0the *ecretary-General0, may invite representatives of governments which are neither 1embers of the )T? nor members of the BBB and representatives of international governmental and trade organi2ations to attend meetings of the Technical Bommittee as observers# ;# =ominations of delegates' alternates and advisers to meetings of the Technical Bommittee shall be made to the *ecretary-General# 5ec4nical +ommittee Meetings !# The Technical Bommittee shall meet as necessary but at least two times a year# The date of each meeting shall be fi(ed by the Technical Bommittee at its preceding session# The date of the meeting may be varied either at the re.uest of any member of the Technical Bommittee concurred in by a simple ma4ority of the members of the Technical Bommittee or' in cases re.uiring urgent attention' at the re.uest of the Bhairman# =otwithstanding the provisions in sentence of this paragraph' the Technical Bommittee shall meet as necessary to consider matters referred to it by a panel under the provisions of Article ! of this Agreement# 8# The meetings of the Technical Bommittee shall be held at the head.uarters of the BBB unless otherwise decided# # The *ecretary-General shall inform all members of the Technical Bommittee and those included under paragraphs 6 and : at least -8 days in advance' e(cept in urgent cases' of the opening date of each session of the Technical Bommittee# Agenda %# A provisional agenda for each session shall be drawn up by the *ecretary-General and circulated to the members of the Technical Bommittee and to those included under paragraphs 6 and : at least -8 days in advance of the session' e(cept in urgent cases# This agenda shall comprise all items whose inclusion has been approved by the Technical Bommittee during its preceding session' all

items included by the Bhairman on the Bhairman>s own initiative' and all items whose inclusion has been re.uested by the *ecretary-General' by the Bommittee or by any member of the Technical Bommittee# -# The Technical Bommittee shall determine its agenda at the opening of each session# 9uring the session the agenda may be altered at any time by the Technical Bommittee# =fficers and +onduct of 3usiness "# The Technical Bommittee shall elect from among the delegates of its members a Bhairman and one or more Vice-Bhairmen# The Bhairman and Vice-Bhairmen shall each hold office for a period of one year# The retiring Bhairman and Vice-Bhairmen are eligible for re-election# The mandate of a Bhairman or Vice-Bhairman who no longer represents a member of the Technical Bommittee shall terminate automatically# /# If the Bhairman is absent from any meeting or part thereof' a Vice-Bhairman shall preside# In that event' the latter shall have the same powers and duties as the Bhairman# 6# The Bhairman of the meeting shall participate in the proceedings of the Technical Bommittee as such and not as the representative of a member of the Technical Bommittee# :# In addition to e(ercising the other powers conferred upon the Bhairman by these rules' the Bhairman shall declare the opening and closing of each meeting' direct the discussion' accord the right to spea$' and' pursuant to these rules' have control of the proceedings# The Bhairman may also call a spea$er to order if the spea$er>s remar$s are not relevant# ;# 9uring discussion of any matter a delegation may raise a point of order# In this event' the Bhairman shall immediately state a ruling# If this ruling is challenged' the Bhairman shall submit it to the meeting for decision and it shall stand unless overruled# !# The *ecretary-General' or officers of the BBB *ecretariat designated by the *ecretaryGeneral' shall perform the secretarial wor$ of meetings of the Technical Bommittee# >uorum and <oting %8# Representatives of a simple ma4ority of the members of the Technical Bommittee shall constitute a .uorum# % # Aach member of the Technical Bommittee shall have one vote# A decision of the Technical Bommittee shall be ta$en by a ma4ority comprising at least two thirds of the members present# Regardless of the outcome of the vote on a particular matter' the Technical Bommittee shall be free to ma$e a full report to the Bommittee and to the BBB on that matter indicating the different views e(pressed in the relevant discussions# =otwithstanding the above provisions of this paragraph' on matters referred to it by a panel' the Technical Bommittee shall ta$e decisions by consensus# )here no agreement is reached in the Technical Bommittee on the .uestion referred to it by a panel' the Technical Bommittee shall provide a report detailing the facts of the matter and indicating the views of the members# :anguages and .ecords %%# The official languages of the Technical Bommittee shall be Anglish' &rench and *panish# *peeches or statements made in any of these three languages shall be immediately translated into the other official languages unless all delegations agree to dispense with translation# *peeches or statements made in any other language shall be translated into Anglish' &rench and *panish' sub4ect to

the same conditions' but in that event the delegation concerned shall provide the translation into Anglish' &rench or *panish# ?nly Anglish' &rench and *panish shall be used for the official documents of the Technical Bommittee# 1emoranda and correspondence for the consideration of the Technical Bommittee must be presented in one of the official languages# %-# The Technical Bommittee shall draw up a report of all its sessions and' if the Bhairman considers it necessary' minutes or summary records of its meetings# The Bhairman or a designee of the Bhairman shall report on the wor$ of the Technical Bommittee at each meeting of the Bommittee and at each meeting of the BBB# A==A@ III # The five-year delay in the application of the provisions of the Agreement by developing country 1embers provided for in paragraph of Article %8 may' in practice' be insufficient for certain developing country 1embers# In such cases a developing country 1ember may re.uest before the end of the period referred to in paragraph of Article %8 an e(tension of such period' it being understood that the 1embers will give sympathetic consideration to such a re.uest in cases where the developing country 1ember in .uestion can show good cause# %# 9eveloping countries which currently value goods on the basis of officially established minimum values may wish to ma$e a reservation to enable them to retain such values on a limited and transitional basis under such terms and conditions as may be agreed to by the 1embers# -# 9eveloping countries which consider that the reversal of the se.uential order at the re.uest of the importer provided for in Article " of the Agreement may give rise to real difficulties for them may wish to ma$e a reservation to Article " in the following terms: 0The Government of ############ reserves the right to provide that the relevant provision of Article " of the Agreement shall apply only when the customs authorities agree to the re.uest to reverse the order of Articles / and 6#0 If developing countries ma$e such a reservation' the 1embers shall consent to it under Article % of the Agreement# "# 9eveloping countries may wish to ma$e a reservation with respect to paragraph % of Article / of the Agreement in the following terms: 0The Government of ############ reserves the right to provide that paragraph % of Article / of the Agreement shall be applied in accordance with the provisions of the relevant note thereto whether or not the importer so re.uests#0 If developing countries ma$e such a reservation' the 1embers shall consent to it under Article % of the Agreement# /# Bertain developing countries may have problems in the implementation of Article of the Agreement insofar as it relates to importations into their countries by sole agents' sole distributors and sole concessionaires# If such problems arise in practice in developing country 1embers applying the Agreement' a study of this .uestion shall be made' at the re.uest of such 1embers' with a view to finding appropriate solutions# 6# Article : recogni2es that in applying the Agreement' customs administrations may need to ma$e en.uiries concerning the truth or accuracy of any statement' document or declaration presented to them for customs valuation purposes# The Article thus ac$nowledges that en.uiries may be made

which are' for e(ample' aimed at verifying that the elements of value declared or presented to customs in connection with a determination of customs value are complete and correct# 1embers' sub4ect to their national laws and procedures' have the right to e(pect the full cooperation of importers in these en.uiries# :# The price actually paid or payable includes all payments actually made or to be made as a condition of sale of the imported goods' by the buyer to the seller' or by the buyer to a third party to satisfy an obligation of the seller#