Imagine an international trade market brimming with diverse goods, yet shrouded in pricing uncertainties that create significant challenges for traders. The accuracy of customs valuation directly impacts fair tax collection, smooth trade operations, and national economic security. To enhance Jordan's customs valuation expertise, the World Customs Organization (WCO), in collaboration with the German Customs Cooperation Fund (CCF Germany), conducted a landmark national workshop in Amman during February 2023.
Capacity Building: A Model of International Cooperation
The five-day workshop, held from February 5-9 at the Amman Regional Training Center, brought together 19 mid-to-senior level officials from various Jordan Customs departments. The WCO engaged two pre-certified customs valuation experts as trainers: Mr. Adel HABSA from Algerian Customs and Mr. Abdulkarim ALMAWASH from Saudi Arabian Customs. WCO Secretariat experts also participated to ensure the workshop's technical rigor.
Participants received comprehensive training on the Customs Valuation Agreement and its practical implementation. The curriculum covered essential topics including transaction value principles, valuation adjustments, alternative valuation methods, transfer pricing fundamentals, revenue program overviews, advance ruling systems, selected tools adopted by the Technical Committee on Customs Valuation, and post-clearance audit procedures.
Practical Focus: Bridging Theory and Application
The workshop emphasized hands-on learning through case studies and interactive discussions. Participants applied theoretical knowledge to real-world scenarios, developing practical problem-solving skills.
During transaction value principle exercises, attendees analyzed different contract types to determine which costs should be included in or excluded from dutiable value. When examining alternative valuation methods, they explored appropriate approaches when transaction values are unavailable, ensuring fair and reasonable assessments. These practical exercises provided clarity on customs valuation processes.
Curriculum Breakdown: Building Valuation Expertise
The workshop covered these critical valuation components:
- Transaction Value Principle: As the preferred valuation method, this section examined definition, application criteria, and adjustment requirements for accurate duty calculation.
- Valuation Adjustments: Detailed guidance on calculating and applying adjustments for shipping, insurance, packaging and other costs affecting dutiable value.
- Alternative Valuation Methods: Procedures for identical/similar goods valuation, deductive valuation, and computed valuation when transaction values cannot be used.
- Transfer Pricing Fundamentals: Concepts and risks of intercompany pricing, helping officials identify and address related valuation challenges.
- Revenue Programs: Common customs revenue enhancement strategies and implementation approaches.
- Advance Ruling Systems: Benefits and procedures for obtaining binding pre-import decisions on valuation and classification.
- Technical Committee Tools: Selected WCO valuation guidelines and case studies reflecting current best practices.
- Post-Clearance Audits: Methods and objectives for verifying valuation decisions after goods release.
Future Outlook: Sustaining Valuation Improvements
In closing remarks, Ms. Manal Nussair, Director of the Amman Regional Training Center, thanked participants and trainers while expressing interest in hosting additional WCO-supported programs. The workshop strengthened Jordan's valuation capabilities and laid foundations for continued WCO-Jordan collaboration.
Enhanced customs valuation expertise promises to make Jordan's trade environment more transparent and efficient, potentially attracting foreign investment and supporting economic growth. This initiative also serves as a valuable reference for other developing nations seeking to improve customs administration through international cooperation.