Convention on the Valuation of Goods for Customs Purposes
- Type: Convention
- Date of signature: 15/12/1950
- Place of signature: Brussels, Belgium
- Depositary: Belgian Ministry of Foreign Affairs
- Date of entry into force: 28/07/1953
What is it about?
The 1950 Convention, whose provisions have become more or less obsolete since the WTO Valuation Agreement entered into force in 1995, provides a calculation base, the so-called Definition, for valuing goods for Customs purposes. According to the 1950 Convention, the value is calculated by determining the regular market price of the concerned item, meaning the price that an item would fetch in an open market between independent buyers and sellers at the moment of imposing duties. The value takes into account all sales related fees and shipping costs to the port of entry. Those fees and costs include transport, insurance, commissions, taxes and duties, fees for setting up business abroad, packaging and cargo fees.
Why is it relevant?
Since 1995, the WTO Customs Valuation Agreement puts in place a fair, uniform and impartial system to evaluate goods for Customs purposes, according to commercial reality and banning the use of arbitrary or fictitious values. Nowadays the 1950 Convention has a limited impact; in 2003 only Algeria, Haiti, Israel, Kenya, Rwanda, Senegal, Tanzania remained Parties to this Convention.
This Convention establishes a Committee on Customs Valuation, attached to the World Customs Organization (WCO). The role of the Committee is to ensure the interpretation of the Definition and its uniform application by the Contracting Parties. Only members to the World Customs Organization (WCO) can become a Party to this Convention.
- Agreement on the Implementation of Article VII of GATT 1994 (WTO Agreement on Customs Valuation)
- International Convention on Mutual Administrative Assistance in Customs matters (Brussels, 27 June 2003)
- International Convention on Harmonization of Border Control of Goods (Geneva, 21 October 1982)
- International Convention on Mutual Administrative Assistance for the prevention, investigation and repression of Customs offences (Nairobi, 9 June 1977)
- International Convention on the simplification and harmonization on Customs procedures (Kyoto, 18 Mai 1973) 1. Protocol amendment thereto (Brussels, 26 June 1999)
- Convention establishing a Customs Co-Operation Council (WCO), (Brussels, 15 December 1950)