Law Sample Essay Paper on Import and Export Tax (WTO)

Import and Export Tax (WTO)

Question One
Implementation of Article VII of the GATT 1994

Based on the implementation of Article VII of the GATT 1994, there are relevant obligations and rights implemented on a custom administration in the treatment of customs valuation between an overseas vendor and its related party importer. Article VII provides a comprehensive overview of the customs purposes in the valuation of the different undertakings. It relates to the duties and charges on the importation and exportation based on the value agreed.  The provision states that a contracting party shall review the operation of the regulations in terms of the valuation of the customer pursuant to the provisions of article VII. It provides that the value of the customer on imported products is based on the actual values of the duty assessed (Lee 35).

It also recognizes the implications of actual value in the particular transactions that creates competitive conditions. Moreover, Article VII provides that the contracting parties should rely on the International Monetary Fund based on the formulation of the rules and regulations. Paragraph 2 of the article recognizes that the employment of multiple rates of exchange reflects the value of the foreign currency transactions. In addition, the implementation of the Article VII to GATT 1944 applies the transaction value of the identical products in the determination of the customs value. This follows the implications of the commercial levels and quantity for the establishments of reasonable and accurate adjustments that can affect the value of the imports negatively or positively.

The implementation of the agreement of Article VII of GATT 1994 develops after the failure of article 1 to 6 in the determination of the customs value of the imported goods. However, the requirement on the implementation of the article requires that the customs value cannot be determined based on the transaction values of the goods for exports.  Since, the transaction value of the imports is relevant when it is adjusted in terms of different quantities. The customs value of the imported goods is obtained as a computed value. The computed values contains the elements value of materials, amount for profits, and expenses and the cost of all additional expenses that reflects the valuation options under different considerations. Therefore, the request of importers in form of writing on custom value is provided for under the provisions of Article VII of GATT 1994.

 Obligations Imposed on WTO members

Under article 1.2, the WTO members are required to be keen on the valuation of the related-party transactions. The communication must involve the customs authorities of the circumstances of selling the information by the importers in the considerations that involves the prices and the reasonable evidence on the importers. A panel decision argued that Thai Customs acted inappropriately in terms to article 1.2 by facilitating communication of the transactions by rejection of the transaction value.  The customs authority was required to state substantial grounds of rejecting the cigarettes imports after the transaction value had been determined. This examines the situation under the imports and sellers to require for effective communication of the transactions value and requirements.

Furthermore, the article emphasizes that the WTO members should initiate a proper communication strategic agreements in order to control dumping.  For example, it determines the commerce between one state and another in less than the expected normal value. When the price of goods and services exported is less than the comparable prices, it indicates the normal operations of the trade. Thus, the parties should be involved in order to avoid the margin of dumping due to conflicts of interests in terms of selling and general cost of the exports and imports. The administration of article 2 is crucial in the understanding of relevant appellant bodies that implement the rulings and recommendations among the concessions of the covered agreements.

Question 2
Reports on Recent Trade Developments

There is a clear background on WTO dispute resolution that contains relevant remedies and agreements on the trade of goods and services. The remedies offer relevant measures in terms of disagreements. Most of the G-20 members have placed restrictions in order to restrict trade. This trend controls the trade ready actions to avoid dumping, increased tariffs, and stringent import restrictions. The measure have affected close to 1.1% of the G-20 traders of imparts and 0.9% of world importers.  The provisions of WTO dispute resolutions certain remedies to the situation that includes obtaining mutual agreements covered under article 3(7) (Koul 120). The consultations are relevant in determining the considerations and chances to promote relevant solutions among the parties. The consultations are covered under article 4 within a representation of another member. The request of the consultations is made within 10 days after receipt (Gupta 78).  Then, in not more than 30 days, the parties enter into consultations in the principle of good faith.

For example, in a case of Colombia-Indicate Prices and Restrictions Port of Entry. Panama and Columbia had to form consultations to determine the measures on offenses, but there were no mutual agreements. The confidentiality and prejudice rights of the two parties regulate the consultations.  Thus, the consultation forms an important aspect on certain a mutual agreements and settlement between the vendors of goods and the importers. Secondly, the panels are usually established to solve any disagreements including consultations and other brief summary of legal nature. The provisions of the representatives to GATT 194 contains that the international trade law are relevant in the creation of panel of 5members (Oliver 163).

Furthermore, the Australian legal system is relevant to provide legal interpretations that develops the panels. The facts of the provisions are significant in the formation of an appellate body to consult with the parties ahead of the formation of a panel. In addition, the articles XXII and XXIII of GATT 1947 are also applicable in restoring amicable solutions on the trade between the different countries. The dispute settlements mechanism of the WTO provisions develops are process that assist in the security of the multilateral systems of trade (Hoekman 56).

Nevertheless, the WTO agreements Annex 3 provides for relevant rules and procedures that govern settlement of disputes.  The provisions assist in solving any disputes between the importers and the vendors in overseas. The requirements are set within annex 1 usually referred to as covered agreements. Each member is preserved within certain rights and obligations under the covered agreements. The guidelines and rules in the covered agreements are directly interpreted from the international laws that occur under the DSB rulings.  Such issues can be solved through effective operation of the WTP and clear cooperation between the rights and obligations of each member (Ndlovu 147).

The WTO reports require each member must take responsibility and requirements in order to enhance effective trading co-existence. The relevant committees formed under the provisions of the WTO assists in reaching agreed solutions. The solutions are reached through consultations and dispute settlement rules (Shadikhodjaev 590). Based on the requirements of GATT 1947, the covered agreements are effective in determining the entry forces in boundaries of the difference countries. This follows the regulations and rules of WTO agreements. The understanding of the articles 4, 5, 6, and 12 are crucial in the insuring effective rules and procedures are followed in case of conflicts of interests between the parties (Lee 31). Moreover, the recent trade developments on the effects of trade restrictions provide that the parties should be compensated or suspended relating on the concessions.  The compensation and suspensions of the concessions refers to the implementation of covered agreements between parties.

After developing concessions, the parties can be decided to receive concession of acceptable compensation between the parties. However, the period of dispute settlements is controlled in order to avoid the expiry of compensations. Within 60 days, the principles and procedures of the dispute settlement process offers appropriate procedures and provisions to arbitrate between controversial matters (Gundogdu 78). However, the arbitration and consultations are protected under the recommendations of article 2.1 that requires surveillance on the implementation of the rulings and recommendations (Zhang 383). The WTO jurisprudence that includes panel, appellate bodies, arbitrations and WTO committees are relevant in handling any trade restrictions effects between the parties. This follows the obligations and rights of the involved parties to ensure effective process of import and exports of the goods and services. Thus, the summarization of the WTO jurisprudence provides the relevant instruments to counter the effects of trade restrictions (Rajkarnikar 197).



Works Cited

Gundogdu, Ahmet Suayb. “Determinants of OIC countries’ customs revenue vis-à-vis implementation of WTO customs valuation agreement.” Journal of Economic Cooperation & Development 32.3 (2011).

Gupta, Sayantan. “Changing faces of international trade: Multilateralism to regionalism.” Journal of International Commercial Law & Technology 3.4 (2008).

Hoekman, Bernard M. World trade organization (WTO): Law, economics, and politics. London: Routledge, 2007.

Koul, Autar Krishan. Guide to the WTO and GATT: Economics, law and politics. London: Kluwer law international, 2005.

Lee, Eun Sup. “GATT 1994.” World trade regulation. Springer Berlin Heidelberg, 2012. 31-49.

Lee, Eun Sup. “Outline of the WTO.” World trade regulation. Springer Berlin Heidelberg, 2012. 3-28.

Ndlovu, Lonias. “Effects of the WTO anti–dumping agreement on South African case law.” International Journal of Public Law and Policy 4.2 (2014): 147-160.

Oliver, Gustavo L. Morales. “WTO rules and Argentina’s import controls.” Bus. L. Int’l 13 (2012): 163.

Shadikhodjaev, Sherzod. “Duty drawback and regional trade agreements: Foes or friends?.” Journal of International Economic Law 16.3 (2013): 587-611.


Rajkarnikar, Pushpa Raj. “Implementation of the WTO Customs Valuation Agreement in Nepal: An ex-ante impact assessment.” Trade Facilitation beyond the Multilateral Trade Negotiations: Regional Practices, Customs Valuation and Other Emerging Issues (2006): 195.

Zhang, Xin. “Implementation of the WTO agreements: framework and reform.” Nw. J. Int’l L. & Bus. 23 (2002): 383.