Customs Valuation in India: Identifying Trade Facilitation related Concerns
India has introduced several trade facilitation related measures in the last couple of years. The pro-active strategy adopted by the Central Board of Excise and Customs (CBEC) has helped in introducing several policy measures which have not only streamlined the role of the customs department but has also helped industry in a major way without compromising collection of revenue.
A Brief Negotiating History of Customs Valuation in the Gatt and WTO
The subject of customs valuation serves as a useful reminder that WTO Members’ efforts to implement meaningful ad valorem duty commitments are only fully effective alongside a universally accepted and ironclad customs valuation agreement. Ad valorem tariffs entail placing a value on an imported good and then taxing said good at a percentage of that value. Therefore, if the value of the good were to vary, whether in the eyes of the exporter or the customs official, the amount of duty paid at the border would vary accordingly. As one can easily imagine, the process of valuing an imported good, if left entirely to the discretion of the levying authority, can and has permitted it to be used as an instrument of protectionism because, obviously, valuing an imported good at an artificially high price results in an artificially high tariff to be paid by the importer.
Cost and Benefits of Implementing Trade Facilitation Measures under Negotiations at the WTO: an Exploratory Survey
This study suggests that the WTO may need to establish a long-term institutional mechanism to deal with evolving trade facilitation measures and issues. Countries may also agree on a subset of well-defined TFMs to be implemented by all, as well as on a complementary list of possibly more controversial TFMs from which countries would select, based on their own needs and specificity, a pre-determined number of measures for implementation.