The methods of decreasing tariff assessment are: the WTO agreement on the implementation of Article VII of the 1994 GATT or the so-called evaluation agreements is part of the Uruguay Round agreements. The agreement sets the rules for determining the value of goods for the imposition of customs duties and taxes applicable at the time of the importation of goods. Under the valuation agreement, transaction value is the primary value method, that is, the value that is based on the price actually paid or payable for the goods. The agreement consists of four main parts, next to a preamble and three annexes. Part I contains substantive rules for the valuation of goods. Part II provides for the international administration of the agreement and the settlement of disputes. Part III provides for special and differentiated treatment of developing countries and Part IV contains the so-called final provisions on issues such as the adoption and accession of the agreement, reservations and maintenance of the agreement. The agreement provides for a customs assessment system that bases customs value primarily on the transaction value of imported goods, i.e. on the price actually paid or payable for goods when they are sold for export to the importing country, with certain adjustments. The agreement aims to establish a uniform system that is fair, uniform and neutral for the valuation of goods imported for customs purposes, that is in accordance with commercial conditions and that prohibits the use of arbitrary or fictitious customs values. The agreement recognizes, by its concept of positive value, that customs assessment should, as far as possible, be based on the actual price of the goods to be assessed.
The agreement gives customs authorities the right to request additional information from importers when they have reason to doubt the accuracy of the reported value of imported products. If, in spite of any additional information, the administration retains reasonable doubts, it can be considered that the customs value of the imported goods cannot be determined on the basis of the declared value and that the duty should determine the value taking into account the provisions of the agreement.  The full text of the agreement is available on the WTO website. More information on the agreement and its application is also available on the WTO website in the Trade Topics category. The above evaluation methods should be used in hierarchical order. The main basis of the customs assessment under the agreement is “transactional value” within the meaning of Article 1. Article 1 defines transaction value as “the actual price paid or payable for goods when they are sold for export to the country of import.”  Article 1 is read at the same time as Article 8, which allows customs authorities to quantify the transaction value when certain parts of the goods, considered part of the customs value, are produced by the purchaser but are not effectively included in the price paid or payable for imported goods. Section 8 also allows for the inclusion of exchanges (“considerations”) between the buyer and the seller in forms other than money in the transaction value of the exchanges (“considerants”).