1. WCO instruments proposed in the WTO negotiations
Meeting of Core Group, African Group and Caribbean Group
8 November 2005, Geneva
Kunio Mikuriya
Tadatsugu Toni Matsudaira
World Customs Organization (WCO)

2. WTO July Package - Annex D
9. Due account shall be taken of the relevant work of the WCO and other relevant international organizations in this area.

3. WCO instruments addressed in the WTO proposalsHS
(TN/TF/W/24, 45, 46, 52)
Revised Kyoto Convention
(TN/TF/W/ 30, 34, 36, 39, 42, 45, 46, 49, 50, 52, 53, 55, 58)
Customs Data Model
(TN/TF/W/ 18, 46, 57)
Immediate Release Guidelines
(TN/TF/W/ 10, 44, 45, 50)
Time Release Study Guide
(TN/TF/W/ 18, 45, 46)
Istanbul Convention
(TN/TF/W/ 30)

4. Compilation: L.1. Objective Criteria
for Tariff Classification (TN/TF/W/43)
Main Measure(s) Proposed
• Require objective criteria for the tariff classification of goods. (TN/TF/W/24)
Suggested Approach/Means
• "... requiring the use of objective tests, and (...) requiring Members to adopt the World Customs Organization's Convention on the Harmonized Commodity Description and Coding System ('the HS Convention') "... establish criteria that classification decisions and any necessary tests should satisfy, such as objectivity, scientific basis, wide acceptance and impartiality."
See also TN/TF/W/46

5. H S Universal economic language and code for transportable goods
Used by over 190 countries and economies (120 Contracting Parties)
Basis for tariff application, GATT tariff schedule, trade negotiations, trade statistics, implementation of border measures (quota, controls, etc)
Periodic Review
5 year interval in principle,
HS2002 as current version, HS2007 review work underway
Uniform application assured by WCO HS Committee
Interpretation (Explanatory note, Compendium of classification opinions)
Dispute settlement (Recommendations)
Technical assistance by WCO Secretariat
HS infrastructure, advance rulings (classification advice)

6. Compilation: Release & clearance of goods, formalities, transit (TN/TF/W/43)
K.1.(c) Risk Management
Use risk management and risk analysis as defined in the WCO Revised Kyoto Convention Guidelines. (TN/TF/W/49)
H.1.(d) Use of International Standards
Recommendation to accede to the conventions administered by the World Customs Organization (WCO) which seek to harmonize and simplify customs procedures, in particular the International Convention on the Simplification and Harmonization of Customs Procedures (Kyoto Convention), … (TN/TF/W/30)
M.3.(c) Disciplines on Transit Formalities and Documentation Requirements.
"....give careful consideration to the possibility of acceding to international instruments relating to Customs transit if they are in a position to implement them. If this is not possible, when drawing up bilateral or regional agreements with a view to setting up international Customs transit procedure, they should consider the Standards and Recommended Practices of Annex E of the Revised Kyoto Convention of 1999." ( TN/TF/W/39).

7. Revised Kyoto Convention
Originally adopted in 1973 and revised in 1999
Use of modern technology (automation)
Use of modern techniques (risk management, partnership with trade)
Legal structure
Main body, General Annex (core principles), Specific Annexes (standards for specific procedures)
Guidelines (guide for implementation, best practice) : constantly updated
Entry into force on 3 February 2006 (accession by 40 members)
Kyoto Management Committee
Accession open to WCO/UN members
Consistent with and complementary to the WTO rules

8. Measures covered by the WCO instruments
Pre-arrival declaration
Express shipment
Post clearance audit
Authorized traders
Co-operation
Automation
Transit
Publication of information
Advance Rulings
Appeals
Fees
Standardized and simplified documents
Risk Assessment

9. Use of International Standards
Compilation: H.1.(d)
Use of International Standards
Main Measure(s) Proposed
• … Members should agree to use international standards and instruments as the basis for their import and export procedures and requirements (...) (TN/TF/W/46)
Suggested Approach/Means
• "The data set developed within the WCO data model, UN EDIFACT (UN Electronic Data Interchange for Administration, Commerce and Transport) and the UN Layout Key could be identified as basic reference points/standards [for using international standards as a basis for documentation and data requirements] (...), and WTO Members may wish to identify others. "
Also see TN/TF/W/18; TN/TF/W/57

10. UN instruments UN Layout Key Revised Kyoto Convention UN/EDIFACT
“… The paper format of the Goods declaration shall conform to the UN-layout key. …”
Standardized trade documents in size, format, data elements (including customs goods declaration)
UN/EDIFACT
Electronic Data Interchange for Administration, Commerce and Trade

11. WCO Data Model
Harmonized maximum data sets & their electronic message format to complete border procedures
Effective & efficient tool for B2B, B2G, G2G exchange of information
Compatible with UN/EDIFACT
Interoperable with trade and transport
Cover border measures other than Customs
Supporting “Single Window”
latest version: June 2005

12. Compilation: K.1. (b) Expedited Procedures
for Express Shipments
Main Measure(s) Proposed
• "... an agreement on trade facilitation should promote the widespread implementation of the procedures of the WCO on Express Consignments" as the "international standard procedures for clearance of express goods." (TN/TF/W/45)
Also see TN/TF/W/10 and 44

13. Immediate Release Guidelines
Scope
Shipments requested for immediate release
Express consignment carriers, freight forwarders, and postal services
Categorization of shipments into 4 categories
Correspondence and documents
Low value consignments with no duties and taxes
Low value dutiable consignments
High value consignments
Procedures & dataset specific to each category
Pre-arrival declaration& data processing

14. Compilation: F.2 Maintenance and Reinforcement of Integrity and Ethical Conduct Among Officials
(a) Establishment of a Code of Conduct
(b) Computerized System to Reduce/Eliminate Discretion
(c) System of Penalties
(d) Technical Assistance to Create/Build up Capacities to Prevent and Control Customs Offences
(e) Appointment of Staff for Education and Training
(f) Coordination and Control Mechanisms
In particular, TN/TF/W/60 lists up WCO Arusha Declaration and implementation tools as important reference

15. Arusha Declaration Adopted in 1993 and revised in 2003
Leadership & commitment
Simplification of procedures and automation
Reduce opportunities for malpractices
Adequate human resource management
Recruit, training, rotation, remunerations etc.
Partnership with private sector
Tools for implementation (Model code of ethics and conduct, Integrity Self-Assessment Guide, Action Plan)

16. Capacity Building during negotiations
Assistance in understanding of issues
Information sheets for negotiators
Promote customs involvement in supporting negotiators
Identification of needs & priorities
Self-assessment checklists (proposal-based checklists under consideration)
WTO trade facilitation negotiations support guide (WB)
Needs assessment questionnaire & inventory (WTO)
Time release study

17. Capacity Building for implementation
Enhance effectiveness and efficiency of customs administration to discharge its responsibilities in revenue collection, protection of society, security and facilitation of global trade
Base Customs procedures on international standards and best practices
A broad and comprehensive process that cannot be tackled on a narrow technical or single issue basis
Connect capacity building needs and funding

18. Customs Capacity Building Strategy (adopted June 2003 by WCO Council)
Lesson learned - Need for:
Political will and commitment
Greater ownership and participation of Customs personnel
Accurate diagnosis of needs and country specific responses
Realistic donor and government expectations
Adequate resources (human and financial)
Enhanced co-operation and coherence
A more focused, coordinated and well-resourced approach,
based on accurate diagnosis and using regional approach

19. WCO assistance in CB Assist in ownership approach
Intervention at early stage
Diagnostics
Action planning
Business case for funding to address donors
Pool of experts
Training material
E-learning
Collaborative efforts with other international organizations and donors
Regional approach
Regional Training Center
Regional Office for Capacity Building, Asia Pacific
Synergy with existing regional institutions and initiatives

20. e-mail: tadatsugu.matsudaira@wcoomd.org
For more information
“Preparation for WTO trade facilitation negotiations”
“WCO trade facilitation initiatives and
simplification of customs procedures”
Rue du Marché 30, 1210 Brussels
Tel : + 32 (0)
Fax: + 32 (0)