1 WTO Negotiations on Trade Facilitation: What is at stake? Serafino Marchese Head, Course Design and Training Section WTO Institute for Training and Technical Co-operation

2 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

3 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

4 GATT Article X GATT Article X TRANSPARENCY  Publications  Administration of laws Uniform, impartial and reasonable Uniform, impartial and reasonable  Appeals Prompt, independent review Prompt, independent review

5 Draft Consolidated Negotiating Text TN/TF/W/165/Rev.15 – Articles 1 to 5 1.Publication and availability of information 2.Prior publication and consultation 3.Advance Rulings 4.Appeal or Review Procedures 5.Other measures to enhance impartiality, non-discrimination and transparency

6 Article 3: Advance Rulings What ? 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.

7 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“.

8 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 ]

9 GATT Article VIII FEE$ and FORMALITIES  Fees reflect cost for services rendered  Simplify formalities and documents u Reduce # and kind of fees u Minor penalty for minor errors

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

11 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

12 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

13 Article 7: RELEASE & CLEARANCE OF GOODS (2) 5) Post-clearance Audit 6) Establishment & Publication of Average Release Times 7) Trade Facilitation Measures for Authorized Operators 8) Expedited Shipments 9) Perishable Goods

14 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)

15 Article 10 FORMALITIES, PROCEDURES & DOCUMENTATION Sub-categories of measures 1) Review of Formalities and Documentation Requirements 2) Reduction/Limitation of Formalities & Documentation Requirements 3) Use of International Standards 4) Single Window 5) 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 Processing Source: Draft Consolidated Negotiating Text TN/TF/W/165/Rev.15

16 PORT AUTHORITY CUSTOMS CONSIGNOR CARRIER HAULIERWHARFINGER CUSTOMS BROKER LINE AGENT CONSIGNEE FROM PORT AUTHORITY CUSTOMS CONSIGNOR OGAs CARRIER HAULIERWHARFINGER CUSTOMS BROKER LINE AGENT CONSIGNEE TO Single Window OGAs Single Window: the concept

17 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

18 GATT Article V TRANSIT   m  most convenient routes ununununo discrimination  n n n no unnecessary delays or restrictions u nu nu nu no duties - reasonable charges

19 Article 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

20 Other 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

21 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

22 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

23 Category A:  Time of entry into force Category 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

24 (n) Years Implementation (n) Years Signature of agreement Entry into force

25 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

26 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 capacity List of commitments Implementation Plan Notification of Implementation plan

27 (n) Years Implementation « Active participation » Introducing proposals Reacting to proposals TF needs self-assessment Overall 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 of Implementation Plan Signature of Agreement Entry into Force

28 Barua 1 : Schedule of Commitments A- Implement right away B – time neededC – time and TA needed 1.1 Publication 2.1 Interval between Publication and Entry into Force 2.2 Prior Publication 4.1 Right of Appeal 5.1 Import/Rapid Alert 6.1 Disciplines on Fees 7.1 Electronic Payment 7.3 Separation of Release 1.2 Internet Publication 1.3 Enquiry Point 1.4 Notification 7.4 Risk Management 7.7 Authorized Traders 7.8 Expedited Shipmt 10.1 Periodic Review of Formalities 10.7 Use of Customs Brokers 3.1 Advance Rulings 7.1 Pre-Arrival Processing 7.5 Post-Clearance Audit 7.9 Perishable Goods 10.2 Reduction of Formalities 10.5 Single Window 10.6 PSI Elimination 11.7 Regional Transit Agreements 1 Members haven’t decided how the notification will look, but this is an example to give you an idea.

29 Special & Differential Treatment for 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

30 Questions

Thank you ! 31