G/TFA/W/44  
 
16 June 2021  
(21-4948) Page: 1/4 
Committee on Trade Facilitation  Original: English  
 
 
EXPERIENCE SHARING: ACCELERATE D IMPLEMENTATION OF THE WTO TRADE 
FACILITATION AGREEMENT THROUGH CHINA'S SMART GOVERNANCE  
IN CUSTOMS ADMINISTRATION  
COMMUNICATION FROM CHINA  
The following communication, dated 15 June 2021 , is being circulated at the request of the 
delegation of the China.  
 
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1. Efforts by the international Customs community to accelerate implementation of the WTO 
Trade Facilitation Agreement (TFA)  are widely recognized globally. In 2019, WCO marked 
International Customs Day with the theme of "Smart Borders for Seamless Trade, Travel and 
Transport", aiming to facilitate swift and smooth cross -border movement of goods, people and 
means of transport.  
2. Some Members have been investing heavily in digital development and adopting disruptive 
technologies to reengineer Customs governance for better global connectivity, which greatly 
enhance the effectiveness and efficiency of Customs administrations and furt her expediting the 
movement, release and clearance of goods. The EU has applied Blockchain to improve ATA carnet 
management and communication between governments and businesses. Georgia has developed 
smart contracts, which allow digital management of certi ficates of origin, and so on. These efforts 
are of great significance to the current global response to COVID -19 and the recovery of global 
economy as well.  
3. As one of the first group of Members to join the Agreement, China recognizes the implications 
of TFA on the world economy and that of China and has been committed to take various measures 
to accelerate the implementation of TFA. One of these measures is to put technological innovation 
as a priority and explore a new model of smart governance in Customs administration. We would 
like to share some experience as follows.  
4. We realize Members can accelerate the implementation of TFA through Customs' SMART 
governance in the following three aspects:  
• First, building up Customs' capacity and capabilities in adopti on of advanced technologies, 
use of data and smart management, in line with Article 1 and 7.  
• Second, promoting cooperation among border agencies by establishing a Single Window and 
enhancing mutual assistance and recognition of law enforcement, in line wit h Articles 8 and 
10. 
• Third, promoting international customs cooperation through comprehensive, multi -tiered 
and high -level connectivity, in line with Articles 12 and 13.  
SMART CUSTOMS  
5. We recognize the role of hardware and software infrastructures in Customs capacity building. 
Smart and automated equipment and software systems are widely employed by China Customs and 
other border agencies. Logistics information are collected through digi tal processing, risks are G/TFA/W/44  
 
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  identified automatically, intelligent assistance is provided for field operations, and smart 
management is achieved in administrative process.  
ARTICLE 1: PUBLICATION AND AVAILABILITY OF INFORMATION  
6. With the introduction of Single Window, all information and forms and documents related to 
importation, exportation, and transit are available online. Information services are provided through 
mobile devices as well, and enquiry points are established or maintained through Internet or 
telephone to make smart and self -service enquiry easily accessible.  
ARTICLE 7: RELEASE AND CLEARANCE OF GOODS  
7. We encourage traders to advance filing of electronic import declarations and information using 
Electronic Data Interchange (EDI) to expedite the rel ease of goods, especially critical medical 
supplies and medicines upon arrival. With the help of Single Window, we also encourage stakeholders 
in global supply chains to utilize electronic toolkits to streamline processing and minimize use of 
paper.  
8. By ad opting leading technologies such as AR (Augmented Reality), AI (Artificial Intelligence), 
Big Data and 5G, we have reengineered Customs risk management and Customs control. We are 
now able to automatically collect, identify and compare the information and documents of vehicles, 
containers, goods and personnel. With the adoption of this risk management system, the release of 
low-risk consignments is expedited automatically, while high -risk consignments are warned early. 
Remote and non -contact monitoring, ins pection, quarantine, disinfection and so on are now an 
important part of the Customs control operations.  
9. By connecting with businesses' ERP systems, data of AR video monitoring, customs data and 
warehouse data are verified online in real time. In this cont ext, we can provide additional trade 
facilitation measures related to import, export or transit formalities and procedures for authorized 
operators.  
10. For expedited shipments and perishable goods, Customs physical border operations are 
replaced by digital ad ministrative services, automotive operations and remote collaboration among 
stakeholders. AR Inspection and remote monitoring of live animals are available at some borders. 
Online consultation on issues related to classification, Customs evaluation and ori gin, is conducted 
through an interactive video platform to reduce face -to-face contact.  
11. We have established a total information system for epidemic prevention and control at major 
ports of entry and exit across the country, to implement modular and data -based management of 
health and quarantine operations at ports. We can implement health measures in a way that 
minimizes disruption to international transportation and trade.  
SMART BORDERS  
12. We recognize the importance of cooperation and collaboration among border agencies in smart 
management and trade facilitation, therefore we have integrated Customs and inspection and 
quarantine services, facilitated border infrastructure sharing, rolled out Single Windows among 
border agencies.  
ARTICLE  8: BORDER AGENCY COOPERATION  
13. We have integrated China's entry -exit inspection and quarantine duties and workforce into 
China Customs. Cross -agency information sharing is achieved through a "Single Window", providing 
almost all services related to Customs and port procedures online. Several free trade zones (FTZs) 
in China have established Blockchain -based public service platforms, which enable sharing of 
enforcement data across agencies. Also, by developing and maintaining border control infrastructure 
and software together with other agencies and sharing information, we are able to centralize 
management of border operations and support each other in law enforcement.  G/TFA/W/44  
 
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  ARTICLE 10: FORMALITIES CONNECT ED WITH  IMPORTATION, EXPORTATION AND 
TRANSIT  
14. 100% of trade d ocuments are processed through Single Window, allowing importers and 
exporters to submit documents only once. Through digitalization of almost all forms and documents 
required for importation, exportation and transit, we greatly decrease and simplify the 
documentation requirements. Submission of contracts, packing lists and manifests for import as well 
as Submission of contracts, invoices, packing lists and manifests for export are exempted.  
SMART CONNECTIVITY  
15. Recognizing the role of all stakeholders in glo bal supply chains in promoting cross -border trade 
facilitation, China has adopted new technologies to facilitate mutual -assistance in cross -border law 
enforcement and establish inter -connectivity with all stakeholders.  
ARTICLE 12: CUSTOMS COOPERATION  
16. Based  on the concept of WCO "Globally Networked Customs" (GNC) construction, China has 
established a Customs Data Exchange Platform aiming to promote the interconnection of Customs 
data among different countries or regions. We further promote seamless communica tion among 
parties in the global supply chains and deepening smart cooperation among all parties for trade 
security and facilitation by making use of Blockchain, Electronic Evidence and other leading 
technologies.  
ARTICLE 13: (GENERAL PRINCIPLES) SPECIAL A ND DIFFERENTIAL TREATMENT 
PROVISIONS FOR DEVELOPING MEMBERS AND LEAST -DEVELOPED COUNTRY MEMBERS  
17. Due to their level of social and economic development, developing Members, especially least 
developed country Members, need to make greater efforts in implement ing TFA. So, we advance 
cooperation with developing Members by taking full consideration of their systems, policies and 
standards and work with them in various areas such as modernization of border control infrastructure 
and digitalization of Customs proce dure. 
COMBATING  COVID -19 
18. We reshape Customs clearance procedures by applying disruptive technologies to establish a 
"Green Lane" for medical supplies and make every effort to provide fast -track customs clearance 
services for medical products, drugs, vaccines and other epidemic prevention materials. By means 
of advance declaration, online reservation for Customs clearance, risk management, destination 
detection, and post clearance audit, the time and space of customs supervision have been pushed 
forwar d and moved back as needed. We have also advanced digital operation in the whole process 
of customs clearance, increased non -intrusive inspection capacities, adopted guarantee release, 
special counters and other measures to minimize unnecessary paper -based  operations and 
personnel contact. Traceability technology is adopted to tighten quality control to meet safety and 
quality standards of epidemic prevention materials.  
SUPPORTING ECONOMY RECOVERY  
19. We help optimize business environment at ports by reducing C ustoms clearance time and 
costs. In terms of time, a Customs Clearance Time Evaluation System has been established to 
conduct real -time monitoring and provide early warning for goods that fail to be released within 24h. 
With the implementation of TFA, the average Customs clearance time of imports and exports in 2021 
was reduced by two third compared to 2017. In terms of cost, administrative charges such as port 
construction fees have been cut or reduced, and a list of fees and charges for customs processing  
and port operations are published at Single Windows. According to the World Bank's Doing Business 
2020, China's "Cross -Border Trade" ranked 56th instead of 97th in 2017.  
20. To date, the COVID -19 pandemic is not yet under control globally. It will take more t ime for 
the world economy to recover. We share the experiences of Customs smart governance to promote 
best practices for the implementation of TFA. We believe these practices can help us combat the G/TFA/W/44  
 
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  pandemic and promote world economic recovery in an effecti ve way. We look forward to hearing the 
experiences of other WTO Members in the upcoming meetings.  
 
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