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WTO WTO

Negotiations on Trade Facilitation:Negotiations on Trade Facilitation:

What is at stake?What is at stake?

Serafino Marchese Head, Course Design and Training SectionWTO Institute for Training and Technical Co-operation

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Background

•The Doha Work Program mandate on TF adopted in 2004 – July Package•Negotiation Committee on TF established - October 2004•Proposals submitted by Members •Draft Consolidated Negotiating Text TN/TF/W/165/Rev.15 or higher

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Draft Consolidated Negotiating Text TN/TF/W/165/Rev.15

Based on WTO Members’ proposals - Section I (4 groups)

• Article X (Transparency) Articles 1-5

• Article VIII (Fees & Formalities) Articles 6-10

• Article V (Transit) Article 11

• Other issues Articles 12-15

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GATT Article XGATT Article XTRANSPARENCYTRANSPARENCY

PublicationsPublications

Administration of lawsAdministration of laws Uniform, impartial and reasonableUniform, impartial and reasonable

AppealsAppeals Prompt, independent reviewPrompt, independent review

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Draft Consolidated Negotiating Text TN/TF/W/165/Rev.15 – Articles 1 to 5

1. Publication and availability of information

2. Prior publication and consultation3. Advance Rulings4. Appeal or Review Procedures5. Other measures to enhance impartiality,

non-discrimination and transparency

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Article 3: Advance RulingsWhat ?

Time

Other ..

Determination of a Member, provided in writing to an applicant of the tariff classification, [applied duty rate, customs valuation, duty drawback], fees and charges of a good for customs purposes, prior to the commencement of trade in the good concerned

As soon as possible but not later than (..) days after application received

Advance rulings issues shall be immediately enforceable by customs administration.

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Article 4: Appeal Procedures• Right of Appeal or Review

- Raised against decisions by customs or border agencies concerning transit of goods;- Non-discrimination & transparency;- Standard periods for review of decisions;- Opportunity to raise complaints.

• Appeal Mechanism [in a CU] [that is a WTO Member]- Mechanism for redress of adverse findings (relating to food items) of inspection authorities at the import points of a CU; - decided at the customs union level;- Appeal decision binding on the inspection authorities of all member states of a customs union“.

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Article 5: Other Measures

• [ 5.1 Import alert/rapid alert ] • a border control mechanism, for quality of imported food

product;• operated in case of detection of contaminated imports or

import of products not meeting the required standards; • Possible contaminated exports subject to 100% inspection

• 5.2 Detention

• [ 5.3 Test Procedures ]

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GATT Article VIIIGATT Article VIII

FEE$ and FORMALITIESFEE$ and FORMALITIES Fees reflect cost for services renderedFees reflect cost for services rendered

Simplify formalities and documentsSimplify formalities and documents

Reduce # and kind of feesReduce # and kind of fees

Minor penalty for minor errorsMinor penalty for minor errors

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GATT Article VIII: Articles 6 to 10 GATT Article VIII: Articles 6 to 10

6. DISCIPLINES ON FEES AND CHARGES IMPOSED ON OR IN CONNECTION WITH IMPORTATION AND EXPORTATION

7. RELEASE AND CLEARANCE OF GOODS

8. CONSULARIZATION

9. BORDER AGENCY CO-OPERATION

[9 BIS. DECLARATION OF TRANSHIPPED OR IN TRANSIT GOODS]

10. FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION AND TRANSIT

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Article 6: FEES AND CHARGES

6. FEES AND CHARGES CONNECTED WITH IMPORTATION AND EXPORTATION

Sub-categories of measures

6.1 Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation

(a) Specific Parameters for Fees/Charges

b) Publication/Notification of Fees/Charges

(c) Prohibition of Collection of Unpublished Fees and Charges

d) Periodic Review of Fees/Charges

6.2 Penalty Disciplines

Source: Draft Consolidated Negotiating Text TN/TF/W/165/Rev.15

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Article 7: RELEASE & CLEARANCE OF GOODS (1)

Nine sub-categories

1) Pre-arrival Processing

2) Electronic Payment

3) Separation of release from final determination

4) Risk Management

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Article 7: RELEASE & CLEARANCE OF GOODS (2)

5) Post-clearance Audit6) Establishment & Publication of

Average Release Times7) Trade Facilitation Measures for

Authorized Operators8) Expedited Shipments9) Perishable Goods

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Articles 8 and 9[ 8. CONSULARIZATION ]

"A Member shall not require a consular transaction, in

connection with the importation of any

good".

“Consular transaction”: "the procedure of obtaining from a consul customs

documentation in connection with the

importation of the good.“

TN/TF/W/104 (Uganda & US)

9. BORDER AGENCY COOPERATION

Encourage border Authorities & Agencies to cooperate

Among others:

• Converging data & documentation requirements

• Coordinate customs procedures

TN/TF/W/128 (Canada)

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Article 10 FORMALITIES, PROCEDURES & DOCUMENTATION

Sub-categories of measures1) Review of Formalities and Documentation Requirements 2) Reduction/Limitation of Formalities & Documentation

Requirements3) Use of International Standards 4) Single Window5) Pre-shipment & [Post-shipment Inspection]6) [Use of Customs Brokers]7) [Common Border Procedures [and Requirements]]8) [Uniform Forms and Documentation Requirements]9) Option to Return Rejected Goods to the Exporters 10) Temporary Admission of Goods/Inward and Outward

ProcessingSource: Draft Consolidated Negotiating Text TN/TF/W/165/Rev.15

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PORTAUTHORITY

CUSTOMS

CONSIGNOR

CARRIER

HAULIERWHARFINGER

CUSTOMSBROKER

LINEAGENT CONSIGNE

E

100

FROM

PORTAUTHORITY

CUSTOMS

CONSIGNOR

OGAs

CARRIER

HAULIERWHARFINGER

CUSTOMSBROKER

LINEAGENT CONSIGNEE

TO

Single Window

OGAs

Single Window: the concept

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Single Window and linkage to other TF measures under Article VIII

Single Window

Use of international

standards

Reduction & limitation of formalities &

documents

Pre-arrival processing

Authorised Operators

Cooperation among border

agencies

Period review of formalities

Risk Management Expedited shipment

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GATT Article V

TRANSITTRANSIT most convenient routes

no discriminationno discrimination

no unnecessary delays or no unnecessary delays or restrictionsrestrictions

no duties - reasonable chargesno duties - reasonable charges

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Article 11: Freedom of TransitArticle 11: Freedom of Transit

• Fixed Infrastructure• Regulations, Restrictions and Non-

Discrimination• Disciplines on Fees and Charges• Disciplines on Transit Formalities &

Documentation requirements• Guarantees• Improved Coordination and Cooperation• National transit Coordinator

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Other issuesOther issues

• Article 12: Customs Cooperation [Mechanism for Trade Facilitation and Compliance]

• Article 13: Institutional Arrangements

• Article 14: National Committee

• Article 15: Preamble/Cross-cutting Matters

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• SDT (para. 2 of Annex D to the July Package):– SDT should go beyond traditional transition periods for

implementing commitments.– Extent and timing of commitments shall be related to

implementation capacities of developing countries and LDCs.– Developing countries and LDCs are not obliged to undertake

investments in infrastructure beyond their means.

• Additional SDT for LDCs (para. 3):– LDCs will only be required to undertake commitments to the

extent consistent with their individual development, financial and trade needs; or their institutional capabilities

Special & Differential Treatment

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Mandate

Phase 1 - TA/CB during the negotiations

Phase 2 - TA/CB after the negotiations for implementation

Annex D Organizations

IMF, OECD, UNCTAD, World Bank, WCO

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Category A: Time of entry into

forceCategory B:

(x) years after entry into force

Category C: (x) years after entry

into force + TACB

Implementation of commitments

Transitional period

Technical assistance and

Capacity building

Implementation of TF measures

Flexibility of commitments: 3 different categories of commitments

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(n) Years

Implementation

(n) Years

Signature of

agreement

Entry into

force

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Entry into

force

Measures Category A)Immediate

Measures Category B)

Deferred. Timeframe in schedule

Measures Category C)

Deferred. Timeframe and technical assistance

Signature of

agreement

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Entry into

force

Measures Category A)Immediate

Measures Category B)

Deferred. Timeframe in schedule

Measures Category C)

Deferred. Timeframe and technical assistance

Signature of

agreement

Notification of

Categories

Self-determination of capacityList of commitmentsImplementation Plan

Notification ofImplementatio

n plan

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(n) Years

Implementation

« Active participation »

•Introducing proposals

•Reacting to proposals

TF needs self-assessmentOverall reform &

development context

« Establish list»

•Measures category A

•Measures category B

•Measures category C

Level of compliance

« Establish implementation plan»

• Timeframe

• TA & CB required

• Donor

• Implementation agency

Notification of

Categories

Notification ofImplementatio

n Plan

Signature of

Agreement

Entry into

Force

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Barua1: Schedule of Commitments

A- Implement right away

B – time needed C – time and TA needed

1.1 Publication2.1 Interval between Publication and Entry into Force2.2 Prior Publication4.1 Right of Appeal5.1 Import/Rapid Alert6.1 Disciplines on Fees7.1 Electronic Payment7.3 Separation of Release

1.2 Internet Publication1.3 Enquiry Point1.4 Notification7.4 Risk Management7.7 Authorized Traders7.8 Expedited Shipmt10.1 Periodic Review of Formalities10.7 Use of Customs Brokers

3.1 Advance Rulings7.1 Pre-Arrival Processing 7.5 Post-Clearance Audit7.9 Perishable Goods10.2 Reduction of Formalities10.5 Single Window10.6 PSI Elimination11.7 Regional Transit Agreements

1 Members haven’t decided how the notification will look, but this is an example to give you an idea.

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Special & Differential Treatmentfor developing and LDC countries

Categorization of each measure notified to WTO Implementation schedule notified for measures

requiring TA Early warning system – notification if the TF

measure won’t implement by notified date. Possibility of changing category of a measure(s)

Grace period – countries refrain from use of WTO dispute settlement for [X] period

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Questions

Thank you !

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Serafino.Marchese@wto.org