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TECHNICAL ASSISTANCE ON CUSTOMS VALUATION

TECHNICAL ASSISTANCE ON CUSTOMS VALUATION. PRESENTED BY JAMAICA CUSTOMS. CHALLENGES ON IMPLEMENTING THE WTO AGREEMENT ON CUSTOMS VALUATION. INTRODUCTION. Jamaica Customs was the recipient of technical assistance: WTO Mission assessed our implementation activities,

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TECHNICAL ASSISTANCE ON CUSTOMS VALUATION

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  1. TECHNICAL ASSISTANCE ON CUSTOMS VALUATION PRESENTED BY JAMAICA CUSTOMS

  2. CHALLENGES ON IMPLEMENTING THE WTO AGREEMENT ON CUSTOMS VALUATION

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

  4. Implementation Issues • Limited provisions of technical assistance for: • Training of operative level personnel • Modernization of methods of customs clearance • Development of computer systems to provide effective price references • Improving management techniques Jamaica Customs

  5. Implementation Issues • Inadequacy of the transitional period • The continued use of minimum values for high risk items • Phased implementations vs • Implementation “Cold Turkey” Jamaica Customs

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

  7. Trained Operative Personnel Informed External Stakeholders Resident Valuation Experts Valuation Post Audit Capacity Building Jamaica Customs

  8. Requirements for Capacity Planning • Training Programmes: • Customs Personnel • External Stakeholders • Extensive training for valuation personnel • Qualified Trainers • Funding Jamaica Customs

  9. Technical Assistance • APEC • Train-the-Trainer Programme • WCO Valuation Committee • Senior Management Training • UK Customs • Procedures and manuals Jamaica Customs

  10. 350 Operative Officers Trained 130 Customs Brokers trained Forums with various interest groups Publication of Valuation Guide Procedure Manual Result of Technical Assistance Jamaica Customs

  11. Post Implementation Challenges Jamaica Customs

  12. Challenges in Interpreting the Code • The term “paid as a condition of sale” • Royalty Agreements • Licence • Related Party Transactions • Transfer Pricing • Proving Family Relationship Jamaica Customs

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

  14. The Complexities of Transfer Pricing • Inherent Price Influence. • Technical and Complex transfer pricing policies. • The interpretation of the term “as a condition of sale” and the opportunity it presents to certain categories of importers. Jamaica Customs

  15. Royalties and Licence Fees • The interpretation of the term “paid as a condition of the sale” • Companies are rewriting contracts to categorically state that payment for royalties is not made as a condition of the sale of the goods. Jamaica Customs

  16. Valuation Control • The difficulties of exercising valuation control in the absence of minimum values. • The absence of reliable historical customs values to assist in the verification of values. Jamaica Customs

  17. Valuation Control • Real Burden of Proof • Cash Payments • No paper trail • The obligation to give an explanation for rejecting the declared value Jamaica Customs

  18. Burden of Proof and Post Clearance Verification • No support for post clearance verification (approximately 40% of imports) Jamaica Customs

  19. Risk Management System • Computerized risk management system • Price referencing module • Intelligence Module • Risk Management Module • To be commissioned March 2003 • Consultation required Jamaica Customs

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

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