WTO Negotiations on Trade Facilitation: W hat is at s take ?

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 TextTN/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 TRANSPARENCY • Publications • Administration of laws Uniform, impartial and reasonable • Appeals Prompt, independent review

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

6. What ? Time Other .. Determination of a Member, provided in writing to an applicantof 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. Article 3: Advance Rulings

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 • Reduce # and kind of fees • Simplify formalities and documents • 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 • RELEASE AND CLEARANCE OF GOODS • CONSULARIZATION • 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 11

12. Article 7: RELEASE & CLEARANCE OF GOODS (1) Nine sub-categories 1) Pre-arrival Processing • Electronic Payment • Separation of release from final determination • 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. [ 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) Articles 8 and 9

15. Article 10FORMALITIES, PROCEDURES & DOCUMENTATION

16. Single Window: the concept OGAs OGAs CUSTOMS CARRIER CUSTOMS CARRIER WHARFINGER HAULIER WHARFINGER HAULIER 1 0 0 Single Window CUSTOMS PORT CUSTOMS PORT BROKER AUTHORITY BROKER AUTHORITY LINE CONSIGNEE LINE AGENT CONSIGNEE AGENT CONSIGNOR CONSIGNOR TO FROM

17. Single Window and linkage to other TF measures under Article VIII Reduction & limitation of formalities & documents Use of international standards Period review of formalities Single Window Pre-arrival processing Cooperation among border agencies Risk Management Expedited shipment Authorised Operators

18. GATT Article V • TRANSIT • most convenient routes • no discrimination • no unnecessary delays or restrictions • 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. Implementation of TF measures Flexibility of commitments: 3 different categories of commitments • Category A: • Time of entry into force • Category B: • (x) years after entry into force • Category C: • (x) years after entry into force + TACB

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

25. Measures Category A)Immediate Signature of agreement Entry into force Measures Category B)Deferred. Timeframe in schedule Measures Category C)Deferred. Timeframe and technical assistance

26. Measures Category A)Immediate Notification of Categories Notification of Implementation plan Signature of agreement Entry into force Measures Category B)Deferred. Timeframe in schedule Self-determination of capacityList of commitmentsImplementation Plan Measures Category C)Deferred. Timeframe and technical assistance

27. Implementation Notification of Categories Notification of Implementation Plan Signature of Agreement Entry into Force (n) Years • « Establish implementation plan» • Timeframe • TA & CB required • Donor • Implementation agency • « Establish list» • Measures category A • Measures category B • Measures category C • Level of compliance • « Active participation » • Introducing proposals • Reacting to proposals • TF needs self-assessmentOverall reform & development context

28. Barua1: Schedule of Commitments 1Members haven’t decided how the notification will look, but this is an example to give you an idea.

29. 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

30. Questions

31. Thank you ! Serafino.Marchese@wto.org