THE Jamaica Customs Department is preparing to implement the World Trade Organisation (WTO) Agreement on Customs Valuation that could come on stream anytime now. The following is a continuation of information supplied by the Department about some of the things that importers should know. The first segment was carried in last Friday's Financial Gleaner.
Valuation of used motor vehicles and equipment
The present system of valuation will still be applicable to used motor vehicles and certain used equipment, chassis and bodies. Application of the new system has been deferred until March 2003.
Valuation declaration
A declaration of particulars relating to Customs value is required to be submitted to the Department when goods are being cleared. This declaration is a written and signed statement attesting to the truthfulness, accuracy and completeness of the information supplied to Customs in relation to any goods being valued. Valuation declarations are made by the importer on the "Declaration of Particulars Relating to Customs Value" Forms C84 and C85.
The declaration is not normally needed when:
The total Customs value of the consignment is US$1,000 or less, and
The goods are not of a commercial nature, for example used personal belongings admitted as such by the Commissioner of Customs.
Evidence of price paid
The Customs Department will require documentary evidence to support the price paid or payable. The importer must produce a copy of the seller's invoice or other documents against which full payment will be made. This includes facsimile invoices, additional invoices and all payments to and for the benefit of the seller.
It is the importer's responsibility to maintain and make available, upon request, all documentary evidence to support declared values.
Customs rights and obligations
Under the WTO Agreement, Customs has the right to satisfy itself as to the truth or accuracy of any statement, document or declaration presented for valuation purposes. Reference can be found in Article 17 of the WTO Valuation Agreement and Section 19(2) of the Customs Act.
Confidentiality:
All information, which is by nature confidential or is provided on a confidential basis, shall be treated as strictly confidential by the Customs authorities concerned. Disclosure shall not be made without the permission of the persons or government providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings. Reference can be found in Section 19A of the Customs Act.
Transparency:
Laws, regulations, judicial decisions and administrative rulings shall be published and made accessible to the public. Reference in Article 16 of the WTO Valuation Agreement.
Explanation:
The Commissioner of Customs shall, on a written request by the importer, give reasons in writing as to how the Customs value of the imported goods was determined. Reference at Section 19(3) of the Customs Act.
Release of goods:
In the majority of cases, it should be possible to clear goods without delay, but there may be instances in which there are delays, for example, goods for which the value cannot be established or verified. Reference at Section 81 of the Customs Act.
No goods shall be detained for valuation purposes, provided the importer supplies all the necessary information and has put the necessary security in place.
Importers' rights and obligations
Importer have the right to ask for a Valuation Division Review or a Customs Departmental Review (independent of the Valuation Division), as well as appeal to the Taxpayer Appeals Department or the Revenue Court. They also have the right to confidentiality, transparency, an explanation and release of goods.
However, the WTO Agree-ment places an obligation on the importer to:
Maintain proper books and accounting records for Customs review
Make complete and accurate declaration on the prescribed forms of the goods at the time of importation, and
Co-operate with the Customs authorities during investigations of values.
It also places a burden of proof obligation on the importer to substantiate the value of the goods being valued.
Further information on the WTO Agreement may be had from the Customs Valuation Guide for the importing public.
In Wednesday Business we will look at some of the changes that will be made and who will benefit from the new WTO Agreement.
