RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/150
16 April 1999
(99-1516)
Council for Trade in Goods Original:  English
TRADE FACILITATION
Customs Administration and Trade Facilitation
Communication from the Republic of Korea
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I. BACKGROUND
1. In the Marrakesh Agreement establishing the World Trade Organization, Members have
agreed that "relations in the field of trade and economic endeavour should be conducted with a viewto raising standards of living, ensuring full em ployment and a large and steadily growing volume of
real income and effective demand, and expanding the production of and trade in goods and services,
while allowing for the optimal use of the world’s resources in accordance with the objective of
sustainable development, seeking both to protect and preserve the environment and to enhance the
means for doing so in a manner consistent with their respective needs and concerns at different levelsof economic development."
1
2. Members have also agreed in the above-stated Agreement that we "contribute to these
objectives by entering into reciprocal and mutually advantageous arrangements directed to the
substantial reduction of tariffs and other barriers to trade and to the elimination of discriminatory
treatment in international trade relations." 2
3. To serve these purposes, the said Agreement provides that "the WTO shall provide thecommon institutional framework for the conduct of trade relations among its Members in matters
related to the agreements and associated lega l instruments included in the Annexes to this
Agreement." 
3
II. ISSUES RELATED TO TRADE FACILITATION
(a) WCO and WTO
4. Five years after the Marrakesh Agreement, however, some of WTO Member Countries,
including Korea, believe that divergences between national customs procedures continue to hamper
exchanges of goods and further simplification and harmonization of customs procedures could thus be
beneficial to international trade.
5. Taking this into account, the World Customs Organization (WCO) has exerted efforts since
1994 to reach a higher level of simplification and harmonization of customs procedures. Korea, for its
                                                     
1 See, first paragraph. of Preamble of the Marrakesh Agreement Establishing the World Trade
Organization.
2 Id. at third paragraph.
3 Id. at paragraph 1 of Art.2.G/C/W/150
Page 2
part, has participated in the meetings discussing the revision of the existing Kyoto Convention. By so
doing, the Korean government expects that goods imported into Korea for the purpose of sale, or any
commercial, industrial or like use will be facilitated as much as possible.
6. Korea believes that the WTO has a valuable role to play in the facilitation of international
trade. Given its expanding mandate and growing influence, the WTO is in a good position to  support
the work carried out by the WCO in the customs aspects of trade facilitation. The WTO, in our view,
should oversee the policy aspects of the Kyoto Convention, including the dispute settlement
procedures, while the WCO should handle technical aspects of trade facilitation4 to promote rapid
release of imported goods.
(b) G7 Initiative
7. Through the Common Data Element Initiative, G7 countries (U.S.A., Britain, Germany,
France, Italy, Canada, Japan) have endeavoured since 1996 to significantly reduce the number of data
elements required for customs clearance from the existing some 800 elements to some 90 elements for
a rapid release of the imported goods. While the initiative faithfully reflects the position of foreign
exporters, it unfortunately fails to accurately factor in the viewpoint of importing countries onimportant factors such as customs valuation, social security, and environmental risks.
8. Should G7 countries plan to expand the number of countries participating in the Common
Data Element Initiative, Korea feels that a comprehensive discussion on this initiative should be
conducted in the WTO Council of Trade in Goods in  conjunction with the WCO, so as to better
address the interests of importing countries.
(c) Single Window for Information
 9. To institutionalize a single window for information regarding trade and importation, full-
fledged reform of most countries’ administration of foreign trade is necessary. Korea proposes that theWTO Members further discuss the issue of single window access. Eventual conclusions reached by
Members on this issue should take the form of simple recommendations rather than an agreement or
an understanding having a legal binding force.
(d) Automation and Modernization of Customs Administration
10. Regarding the automation and modernization of customs administration, Korea suggests the
following:
• WTO Member Countries are recommended to provide a system that allows the private sector to
use electronic means of data exchange designed for an integrated management of documentation
and data with a view to ensuring seamless commercial transactions. The WTO should encourage,
through recommendations, the incorporation by Members of the provisions prescribed in the
Kyoto Convention establishing the customs acceptance of electronic documents and data as wellas processing and release of the goods by electronic means.
• Korea also stresses that the WTO’s recommendation should include commitments to use open,
interoperable and internationally recognized standards and codes, such as UN-EDIFACT, as abasis for harmonized, simplified data and documentary requirements.
                                                     
4 Paragraph 10.1 (WCO/WTO Trade Facilitation) of the Report to the APEC Committee on Trade and
Investment, the First Session of the APEC Sub-Committee on Customs Procedures held on February 2-4, 1999
in Wellington, New Zealand.G/C/W/150
Page 3
• Furthermore, greater international cooperation and technical assistance should be provided to
developing countries of the WTO through international organizations and developed countries soas to help these developing countries build an infrastructure and develop the expertise necessary
to reach a higher level of automation and modernization in the field of customs and export/import
administration.
(e) Transparency
11. Korea endorses the proposal to be possibly put forward by the WTO in regard to the issue of
transparency in the area of laws and regulations and administrative guidelines directly governing
foreign trade. No doubt, greater transparency in laws, regulations and administrative guidelines help
reduce barriers to trade.  
III. CONCLUDING REMARKS
12. Korea proposes that the issue of trade facilitation be included on the agenda of the New
Round to be possibly launched in the Third Ministerial Meeting of the WTO in December 1999. An
agreement promoting trade facilitation within the framework of the WTO could embody either
obligations with a legal binding force or simple recommendations with no such binding power,
depending on the issues concerned.
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