Book Review
Customs valuation: Law and practice
Title: WTO Agreement on Customs Valuation Law and Practice
Author: M. Azadul Islam, Advocate
Publisher: CCB Foundation
First Published: February 2010
Pages: 290
Price: Taka 1000.00
ISBN: 978-984330690-6
Type of Book: Law book on Customs Valuation
THE World Trade Organization came into being on 1 January 1995 with as many fifteen 
Agreements and seven Understandings on the Various Articles on GATT including an update on Implementation of Article VII of the GATT terming “The Agreement on the Implementation of Article VII of the General Agreement on Tariffs and Trade 1994” i.e. WTO Agreement on Customs Valuation and shortly Agreement on Customs Valuation (ACV). Customs valuation practices are subject to the WTO Agreement on Customs Valuation which mandates that the customs value of imported goods, to the greatest extent possible, should be the transaction value, that is, the price paid or payable for goods. However, the valuation fraud is frequently reported as a major problem in developing countries and many of them still find that implementing the ACV presents one of the most challenging aspects of customs work. Valuation work is particularly difficult in some countries in which the reliability of commercial invoices tends to be poor. Substantial efforts have so far been made to adopt ACV principles in Bangladesh; yet, most observers realize the valuation practice lacks proper implementation especially due to lack of mass awareness about the intrinsic valuation principles. In recognition of this, Mr. M. Azadul Islam prepared a book titled “WTO Agreement on Customs Valuation Law and Practice” as a handbook to provide guidance to the many organizations and individuals involved in implementation agreement on customs valuation. This book draws attention on the customs valuation history and range of specific issues important to know for those who are somehow linked with import and legal practitioners on customs valuation of imported goods. It also draws on the experience of the author with extensive practical experience in the filed and is complemented by a number of case laws on customs valuation. The issues as raised are of most important for valuation purposes in day-to-day work of the customs officials as well as the core issues for settlement of disputes on customs valuation.
This book is comprised of eight chapters, two annexure, glossary, alphabetical index and references. Chapter 1 addresses the historical developments of Customs Valuation especially in 19th century. An attempt has also been made to address the meaning of customs valuation briefly.
Chapter 2 contains Customs Valuation Agreement with comments. These comments are incorporated following specific provisions of the agreement highlighting every important factor as contained in those provisions. WTO Agreements on Customs Valuation is comprised of a General Introductory Commentary, four parts having twenty-four Articles, three Annexure including Explanatory Notes for Article 1 to 15 of the Agreement. Two Ministerial Decisions have also become a part of the Agreement and, therefore, these two decisions have also been accommodated with the texts, comments as well.
Chapter 3 refers to some judicial cases on the valuation practice in both jurisdictions of Bangladesh and India. These decisions have been quoted briefly and the reader interested for further study may search in line with the references as mentioned in this chapter. For easy searching and understanding a subject wise case index has also been prepared. This will certainly help readers' searching on particular issues on customs valuation.
Chapters 4 and 5 have especially been prepared for the Customs officials. These chapters have been formulated in line with the revised and updated version of the WCO Customs Valuation Control Handbook, which serves as a practical guide for customs officers in all countries applying WTO Valuation Agreement. Chapter 4 deals with the required documents, which are important for valuation purposes, and also specifies some areas where customs authority should pay more attention. Chapter 5 elaborates how the documents are to be verified and what measures are to be taken in certain circumstances.
Chapter 6 highlights the activities of the pre-shipment inspection agencies with regard to the valuation for customs purposes. PSI Companies are primarily engaged in developing countries to help customs authorities by providing valuation opinion amongst other services for which they are mandated. Chapter 7 is devoted to make an analysis as to the application of WTO Valuation Agreement in Bangladesh. The findings as reflected in this chapter are specifically based on the number of cases challenging customs valuation in the High Court Division of the Supreme Court of Bangladesh and numerous review cases as are dealt by the lawyer author on behalf of Intertek Bangladesh Limited- a world renowned reputed PSI Company. Author believes that most issues have been covered regarding practice of ACV Rules by the concerned customs officials, importers as well as PSI Companies. And that all interested readers including professionals will find it useful in ascertaining the core issue for correct application of the ACV.
Chapter 8 signifies the WTO Valuation Agreement and implementation problems and requirements for correct application with a synchronized idea as to the customs valuation practice around the world. Few suggestions have been incorporated for the proper implementation of the Agreement especially in the developing countries, which lack proper mechanism to fulfill its obligation under the agreement. The Agreement on the Implementation of Article VII of the GATT 1994 was adopted by Bangladesh under the Customs Valuation (Determination of Price of Imported Goods) Rules, 2000. The original Bengali text along with translation in English has been annexed. A glossary of the commercial terms and subjective index has been prepared for easy references.
This contents of this book are aimed at several audiences firstly the importers and their legal counsels; secondly, the customs officials; thirdly, the policy makers and trade bodies and last but not the least the Bench and the Bar - all who did lack single book on the modern customs valuation when dealing with a case on this issue. As this is first of its kind here in Bangladesh, this will definitely will bring positive results in shaping customs valuation practice with a picture when there will be little less possibility to misinterpret and misapply the valuation principles what the State is obliged to implement in revenue collection. The book is of greater interest in the customs revenue issues. The object is clear to help reach valuation agreement to all interested audiences, which is of special importance. The main agreement and the local laws have been illustrated thoroughly and it will be useful to the intended audiences. Author's opinions are made on the experiences while working the at all level of dealing with the valuation principles and it explores issues to rethink on the current practice on this matter. Case laws are mentioned with specific issues which are very pragmatic approach and useful but this could be made more understandable if Author could mention the reference of the Supreme Court of India and few more valuation cases in Bangladesh. This book could be more convincing if there were certain discussion on the provisions of section 25 of Customs Act to a certain extent.
The book is not of that kind to be encyclopedic rather deliberately selective so that it can be fruitfully be used while any issue on customs valuation is in dispute. It avoids many general issues and effort has been given to technical issues that are well covered and successfully provides guidelines as easy references manual which will help designing and implementing customs valuation and its reform needed for overall modernization to enable customs to fulfill its role and help valuation practitioners in establishing their arguments in accordance with the international law of customs valuation. This book contains a wealth of practical information on the context and operational modalities for all stakeholders in revenue sector and provides, on the basis of experiences and facts, a clear map to the effective implementation of modern valuation principles. It is both very comprehensive and easy to consult and certainly has what it takes to become a reference manual for everyone striving implementation ACV rules. The combination of knowledge, experiences and thoughts on this specialized matter timely justifies the author to present a book of this kind.
-Law Desk.
