1. TECHNICAL ASSISTANCE ON CUSTOMS VALUATION PRESENTED BY JAMAICA CUSTOMS

2. CHALLENGES ON IMPLEMENTING THE WTO AGREEMENT ON CUSTOMS VALUATION

3. November 6, 2002Jamaica Customs3 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.

4. November 6, 2002Jamaica Customs4 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

5. November 6, 2002Jamaica Customs5 Implementation Issues Inadequacy of the transitional period The continued use of minimum values for high risk items Phased implementations vs Implementation Cold Turkey

6. November 6, 2002Jamaica Customs6 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

7. November 6, 2002Jamaica Customs7 Capacity Building Trained Operative Personnel Informed External Stakeholders Resident Valuation Experts Valuation Post Audit

8. November 6, 2002Jamaica Customs8 Requirements for Capacity Planning Training Programmes: Customs Personnel External Stakeholders Extensive training for valuation personnel Qualified Trainers Funding

9. November 6, 2002Jamaica Customs9 Technical Assistance APEC Train-the-Trainer Programme WCO Valuation Committee Senior Management Training UK Customs Procedures and manuals

10. November 6, 2002Jamaica Customs10 Result of Technical Assistance 350 Operative Officers Trained 130 Customs Brokers trained Forums with various interest groups Publication of Valuation Guide Procedure Manual

11. November 6, 2002Jamaica Customs11 Post Implementation Challenges

12. November 6, 2002Jamaica Customs12 Challenges in Interpreting the Code The term paid as a condition of sale Royalty Agreements Licence Related Party Transactions Transfer Pricing Proving Family Relationship

13. November 6, 2002Jamaica Customs13 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.

14. November 6, 2002Jamaica Customs14 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.

15. November 6, 2002Jamaica Customs15 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.

16. November 6, 2002Jamaica Customs16 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.

17. November 6, 2002Jamaica Customs17 Valuation Control Real Burden of Proof Cash Payments No paper trail The obligation to give an explanation for rejecting the declared value

18. November 6, 2002Jamaica Customs18 Burden of Proof and Post Clearance Verification No support for post clearance verification (approximately 40% of imports)

19. November 6, 2002Jamaica Customs19 Risk Management System Computerized risk management system Price referencing module Intelligence Module Risk Management Module To be commissioned March 2003 Consultation required

20. November 6, 2002Jamaica Customs20 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.