Council Regulation (EEC) No 1224/80 of 28 May 1980 on the valuation of goods for customs purposes

Published date31 May 1980
Subject MatterGeneral Agreement on Tariffs and Trade (GATT),Harmonisation of customs law: value for customs purposes,Commercial policy
Official Gazette PublicationOfficial Journal of the European Communities, L 134, 31 May 1980
EUR-Lex - 31980R1224 - EN

Council Regulation (EEC) No 1224/80 of 28 May 1980 on the valuation of goods for customs purposes

Official Journal L 134 , 31/05/1980 P. 0001 - 0009
Greek special edition: Chapter 02 Volume 8 P. 0218
Spanish special edition: Chapter 02 Volume 6 P. 0224
Portuguese special edition Chapter 02 Volume 6 P. 0224


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( 1 ) OJ NO L 148 , 28 . 6 . 1968 , P . 6 .

( 2 ) OJ NO L 71 , 17 . 3 . 1980 , P . 1 .

COUNCIL REGULATION ( EEC ) NO 1224/80

OF 28 MAY 1980

ON THE VALUATION OF GOODS FOR CUSTOMS PURPOSES

THE COUNCIL OF THE EUROPEAN

COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY , AND IN PARTICULAR ARTICLE 113 THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION ,

WHEREAS , ON 27 JUNE 1968 , THE COUNCIL ADOPTED REGULATION ( EEC ) NO 803/68 ON THE VALUATION OF GOODS FOR CUSTOMS PURPOSES ( 1 );

WHEREAS , SINCE THEN , IN ITS DECISION 80/271/EEC OF 10 DECEMBER 1979 CONCERNING THE CONCLUSION OF THE MULTILATERAL AGREEMENTS RESULTING FROM THE 1973 TO 1979 TRADE NEGOTIATIONS , THE COUNCIL APPROVED IN PARTICULAR , ON BEHALF OF THE EUROPEAN ECONOMIC COMMUNITY , THE ' AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ' ( 2 );

WHEREAS THAT AGREEMENT LAYS DOWN RULES FOR FACILITATING INTERNATIONAL TRADE BY REMOVING BARRIERS TO SUCH TRADE ARISING FROM THE APPLICATION OF DIFFERENT METHODS OF CUSTOMS VALUATION ; WHEREAS ITS AIM IS , IN PARTICULAR , TO PURSUE THE OBJECTIVES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ( GATT ) AND TO ENSURE THAT DEVELOPING COUNTRIES ENJOY ADDITIONAL ADVANTAGES IN INTERNATIONAL TRADE ; WHEREAS , WHERE POSSIBLE , IT INTRODUCES THE TRANSACTION VALUE AS THE BASIS FOR THE CUSTOMS VALUATION OF GOODS ;

WHEREAS THAT AGREEMENT WILL ENTER INTO FORCE ON 1 JANUARY 1981 ; WHEREAS , HOWEVER , THE COMMUNITY HOLDS THE VIEW THAT IT SHOULD BE IMPLEMENTED FROM 1 JULY 1980 ;

WHEREAS THE COMMUNITY , IN ACCEPTING THE AGREEMENT , HAS PLACED ITSELF UNDER AN OBLIGATION TO ENSURE , NOT LATER THAN THE DATE OF ENTRY INTO FORCE OF THE AGREEMENT FOR THE COMMUNITY , THAT ITS RULES CONCERNING CUSTOMS VALUATION CONFORM WITH THE PROVISIONS OF THE AGREEMENT ;

WHEREAS , TO THIS END , THE CUSTOMS VALUATION SYSTEM INTRODUCED BY REGULATION ( EEC ) NO 803/68 AND CURRENTLY IN FORCE SHOULD BE AMENDED ; WHEREAS THAT REGULATION WAS INTENDED TO ENSURE UNIFORM APPLICATION OF THE COMMON CUSTOMS TARIFF AND EQUAL TREATMENT OF COMMUNITY IMPORTERS ; WHEREAS THE OBJECTIVE OF THIS REGULATION IS TO FOSTER WORLD TRADE BY INTRODUCING A FAIR , UNIFORM AND NEUTRAL SYSTEM OF CUSTOMS VALUATION EXCLUDING THE USE OF ARBITRARY OR FICTITIOUS CUSTOMS VALUES ; WHEREAS , THEREFORE , THE CUSTOMS VALUE MUST BE DETERMINED IN ACCORDANCE WITH CRITERIA WHICH ARE COMPATIBLE WITH TRADE PRACTICE ; WHEREAS , IN PARTICULAR , THE BASIS FOR CUSTOMS VALUATION OF GOODS WILL , AS A GENERAL RULE , BE THE TRANSACTION VALUE DEFINED IN ARTICLE 3 OF THIS REGULATION ;

WHEREAS , HOWEVER , CERTAIN TRANSITIONAL MEASURES MUST BE LAID DOWN IN THE CASE OF GOODS THE CUSTOMS VALUE OF WHICH MUST BE DETERMINED PRIOR TO THE DATE OF ENTRY INTO FORCE OF THE ABOVEMENTIONED AGREEMENT ;

WHEREAS IT IS NECESSARY TO GUARANTEE THAT THIS REGULATION APPLIES UNIFORMLY TO IMPORTS OFF ALL GOODS AND , THEREFORE , TO LAY DOWN A COMMUNITY PROCEDURE WHICH WILL ENABLE THE DETAILED RULES FOR ITS IMPLEMENTATION TO BE ADOPTED WITHIN AN APPROPRIATE PERIOD ;

WHEREAS IT IS , THEREFORE , DESIRABLE THAT A COMMITTEE BE SET UP TO ORGANIZE CLOSE AND EFFECTIVE COLLABORATION BETWEEN THE MEMBER STATES AND THE COMMISSION IN THIS AREA ,

HAS ADOPTED THIS REGULATION :

TITLE 1

ARTICLE 1

1 . IN THIS REGULATION :

( A ) ' CUSTOMS VALUE ' MEANS VALUE FOR THE PURPOSE OF APPLYING THE COMMON CUSTOMS TARIFF ;

( B ) ' PRODUCED ' INCLUDES GROWN , MANUFACTURED AND MINED ;

( C ) ' IDENTICAL GOODS ' MEANS GOODS PRODUCED IN THE SAME COUNTRY WHICH ARE THE SAME IN ALL RESPECTS , INCLUDING PHYSICAL CHARACTERISTICS , QUALITY AND REPUTATION . MINOR DIFFERENCES IN APPEARANCE SHALL NOT PRECLUDE GOODS OTHERWISE CONFORMING TO THE DEFINITION FROM BEING REGARDED AS IDENTICAL ;

( D ) ' SIMILAR GOODS ' MEANS GOODS PRODUCED IN THE SAME COUNTRY WHICH , ALTHOUGH NOT ALIKE IN ALL RESPECTS , HAVE LIKE CHARACTERISTICS AND LIKE COMPONENT MATERIALS WHICH ENABLE THEM TO PERFORM THE SAME FUNCTIONS AND TO BE COMMERCIALLY INTERCHANGEABLE ; THE QUALITY OF THE GOODS , THEIR REPUTATION AND THE EXISTENCE OF A TRADEMARK ARE AMONG THE FACTORS TO BE CONSIDERED IN DETERMINING WHETHER GOODS ARE SIMILAR ;

( E ) ' IDENTICAL GOODS ' AND ' SIMILAR GOODS ' , AS THE CASE MAY BE , DO NOT INCLUDE GOODS WHICH INCORPORATE OR REFLECT ENGINEERING , DEVELOPMENT , ARTWORK , DESIGN WORK , AND PLANS AND SKETCHES FOR WHICH NO ADJUSTMENT HAS BEEN MADE UNDER ARTICLE 8 ( 1 ) ( B ) ( IV ) BECAUSE SUCH ELEMENTS WERE UNDERTAKEN IN THE COMMUNITY ;

( F ) ' GOODS OF THE SAME CLASS OR KIND ' MEANS GOODS WHICH FALL WITHIN A GROUP OR RANGE OF GOODS PRODUCED BY A PARTICULAR INDUSTRY OR INDUSTRY SECTOR , AND INCLUDES IDENTICAL OR SIMILAR GOODS ;

( G ) ' THE MATERIAL TIME FOR VALUATION FOR CUSTOMS PURPOSES ' MEANS :

( I ) FOR GOODS DECLARED FOR DIRECT ENTRY INTO FREE CIRCULATION , THE DATE OF ACCEPTANCE BY THE CUSTOMS AUTHORITIES OF THE DECLARANT ' S STATEMENT OF HIS INTENTION THAT THE GOODS SHOULD ENTER INTO FREE CIRCULATION ,

( II ) FOR GOODS WHICH , AFTER ANOTHER CUSTOMS PROCEDURE HAS BEEN APPLIED , ENTER INTO FREE CIRCULATION , THE TIME FIXED BY ACTS OF THE COUNCIL OR THE COMMISSION PERTAINING TO THAT CUSTOMS PROCEDURE OR BY MEMBER STATES IN ACCORDANCE WITH SUCH ACTS ;

( H ) ' THE AGREEMENT ' MEANS THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE CONCLUDED IN THE FRAMEWORK OF THE MULTILATERAL TRADE NEGOTIATIONS OF 1973 TO 1979 .

2 . FOR THE PURPOSES OF THIS REGULATION , PERSONS SHALL BE DEEMED TO BE RELATED ONLY IF :

( A ) THEY ARE OFFICERS OR DIRECTORS OF ONE ANOTHER ' S BUSINESSES ;

( B ) THEY ARE LEGALLY RECOGNIZED PARTNERS IN BUSINESS ;

( C ) THEY ARE EMPLOYER AND EMPLOYEE ;

( D ) ANY PERSON DIRECTLY OR INDIRECTLY OWNS , CONTROLS OR HOLDS 5 % OR MORE OF THE OUTSTANDING VOTING STOCK OR SHARES OF BOTH OF THEM ;

( E ) ONE OF THEM DIRECTLY OR INDIRECTLY CONTROLS THE OTHER ;

( F ) BOTH OF THEM ARE DIRECTLY OR INDIRECTLY CONTROLLED BY A THIRD PERSON ;

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( G ) TOGETHER THEY DIRECTLY OR INDIRECTLY CONTROL A THIRD PERSON ; OR

( H ) THEY ARE MEMBERS OF THE SAME FAMILY .

3 . FOR THE PURPOSE OF THIS REGULATION , PERSONS WHO ARE ASSOCIATED IN BUSINESS WITH ONE ANOTHER IN THAT ONE IS THE SOLE AGENT , SOLE DISTRIBUTOR OR SOLE CONCESSIONAIRE , HOWEVER DESCRIBED , OF THE OTHER SHALL BE DEEMED TO BE RELATED ONLY IF THEY FALL WITHIN THE CRITERIA OF PARAGRAPH 2 .

4 . FOR THE PURPOSES OF THIS REGULATION , THE TERM ' PERSONS ' MEANS NATURAL OR LEGAL PERSONS .

ARTICLE 2

1 . THE CUSTOMS VALUE OF IMPORTED GOODS IS TO BE DETERMINED UNDER ARTICLE 3 WHENEVER THE CONDITIONS PRESCRIBED THEREIN ARE FULFILLED .

2 . WHERE SUCH VALUE CANNOT BE DETERMINED UNDER ARTICLE 3 , IT IS TO BE DETERMINED BY PROCEEDING SEQUENTIALLY THROUGH ARTICLES 4 , 5 , 6 AND 7 TO THE FIRST SUCH ARTICLE UNDER WHICH IT CAN BE DETERMINED , SUBJECT TO THE PROVISO THAT THE ORDER OF APPLICATION OF ARTICLES 6 AND 7 SHALL BE REVERSED IF THE IMPORTER SO REQUESTS ; IT IS ONLY WHEN SUCH VALUE CANNOT BE DETERMINED UNDER A PARTICULAR ARTICLE THAT THE PROVISIONS OF THE NEXT ARTICLE IN A SEQUENCE ESTABLISHED BY VIRTUE OF THIS PARAGRAPH CAN BE APPLIED .

3 . WHERE THE CUSTOMS VALUE OF IMPORTED GOODS CANNOT BE DETERMINED UNDER ARTICLE 3 , 4 , 5 , 6 OR 7 , IT SHALL BE DETERMINED USING REASONABLE MEANS CONSISTENT WITH THE PRINCIPLES AND GENERAL PROVISIONS OF THE AGREEMENT AND OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND ON THE BASIS OF DATA AVAILABLE IN THE COMMUNITY .

4 . NO CUSTOMS VALUE SHALL BE DETERMINED UNDER PARAGRAPH 3 ON THE BASIS OF :

( A ) THE SELLING PRICE IN THE COMMUNITY OF GOODS PRODUCED IN THE COMMUNITY ;

( B ) A SYSTEM WHICH PROVIDES FOR THE ACCEPTANCE FOR CUSTOMS PURPOSES OF THE HIGHER OF TWO ALTERNATIVE VALUES ;

( C ) THE PRICE OF GOODS ON THE DOMESTIC MARKET OF THE COUNTRY OF EXPORTATION ;

( D ) THE COST OF PRODUCTION , OTHER THAN COMPUTED VALUES WHICH HAVE BEEN DETERMINED FOR IDENTICAL OR SIMILAR GOODS IN ACCORDANCE WITH...

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