Application Of "WTO Agreement On Customs Valuation" To Domestic Sale Of Bonded Goods In China

As an important link in Customs clearance of goods in international trade,Customs valuation is a major issue under trade facilitation by the WTO.Discussions over Customs valuation usually focus on general traded goods,while seldom on bonded goods.As China is now encouraging domestic sale of bonded goods,with fast increase thereof already achieved,more and more attentions have been paid to Customs valuation on bonded goods for domestic sale in the country.Therefore,the General Administration of Customs of China has specifically formulated the “Measures of the P.R.China on Customs Valuation of Duty-Paid Value of Bonded Goods for Domestic Sale”(hereinafter referred to as “Valuation Measures for Bonded Goods”)so as to further improve China Customs' valuation system."WTO Agreement on Customs Valuation"(hereinafter referred to as the "Valuation Agreement"),reached through Uruguay Round negotiations in 1994,is an important component of a package of WTO multilateral trade agreements and is legally binding upon all WTO member states.The “Valuation Measures for Bonded Goods” within China Customs' valuation system is naturally also subject to the “Valuation Agreement”.This paper firstly briefs the development of international Customs valuation system,with emphasis on the basic Customs-valuation principle — Transaction Value Standard that is established by the "Valuation Agreement";secondly,by text analysis,points out the discrepancies in the “Valuation Measures for Bonded Goods” from the “Valuation Agreement”,which are mainly reflected in three aspects: application of Transaction Value Standard,sequence in application of valuation methods,and abidance by the principle of fairness,uniformity and neutrality;thirdly indicates that existing deficiencies in the “Valuation Measures for Bonded Goods” will make China disadvantageous in respect of WTO policy review and are contrary to China's policy of encouraging domestic sale of bonded goods;finally,makes some suggestions for China to optimize the “Valuation Measures for Bonded Goods” by revising relevant laws/regulations,formulating other Customs administrative systems,joining international legislations for Customs valuation,etc.