Non-Tariff Trade Barriers: Customs Valuation and the WTO
While China has cut tariffs on imported goods as per its WTO commitments, as is often the case, the devil is in the details. And, in the case of tariff assessments, one such key detail is whether non-tariff barriers continue to exist by virtue of how Chinese Customs officials determine dutiable product values at the time of import.
In the past, Chinese Customs officials enjoyed considerable discretion in determining the dutiable value of imported goods, typically relying on minimum and reference prices in value assessments. The dutiable value of imported goods was thus determined by comparing the declared value with values of the same or similar goods. The minimum or reference point for such comparisons could effectively be selected by the relevant Customs official based on his own experience or sometimes with reference to values found in a Customs database comprising of pricing information declared by previous importers. If
