RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/153
12 May 1999
(99-1964)
Council for Trade in Goods
TRADE FACILITATION
Factual summary of the informal meetings of the Council for Trade in Goods
in September and December 1998 and April 1999
I. INTRODUCTION
1. At its meeting on 8 July 1998, the Council for Trade in Goods (CTG) agreed to a Chairman’s
proposal on the continuation of work on trade faci litation, as mandated in paragraph 21 of the
Singapore Ministerial Declaratio n (WT/MIN(96)DEC).  The Chairman’s proposal, contained in the
minutes of the meeting (G/C/W/34), reads as follows:
"1. The Council for Trade in Goods will hold regular, informal meetings to continue the
work on trade facilitation, as set out in paragraph 21 of the Singapore Ministerial
Declaration.
2. The schedule of meetings (each lasting 2-3 days) and the core agenda will be as noted
below:
(1) import and export procedures and requirements, including customs and border-
crossing problems; overview of the Kyoto Convention and its current revision
process – September 1998;
(2) physical movement of consignments (transport and transit); payments, insurance
and other financial requirements which affect the cross-border movement of
goods in international trade - December 1998;
(3) electronic facilities and their importance for facilitating international trade;
technical cooperation and development issues relating to simplification of trade
procedures; consideration of WTO Agreements relating to, or including
provisions on, trade facilitation - March 1999;
(4) evaluation of the exploratory and analytical work to assess the scope for WTO
rules in the area of trade facilitation - June 1999.
Although this agenda should, for the sake of efficiency, be adhered to as closely
as possible, there should be freedom at any meeting to address issues from any othermeeting or to bring in any other related issue and question.  Prior to the fourth meeting,
the Secretariat will compile a factual summary of the first three meetings to assist
Members in evaluating the work undertaken thus far.
3. Furthermore, the Chairman of the CTG will invite the Chairpersons of the Committees
on Customs Valuation, Import Licensing, Rules of Origin, Sanitary and PhytosanitaryG/C/W/153
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Measures, Technical Barriers to Trade, the Chairperson of the Working Party on
Preshipment Inspection and, as appropriate, the Chairpersons of other subsidiary bodies
of the CTG to propose an item "trade facilitation" for inclusion in the agenda of their
meetings.  Under this agenda item, these bodies will henceforth address those aspects of
trade facilitation which they regard as being related to the respective agreements with aview to introducing the results of these discussions into the informal CTG discussions on
trade facilitation in March 1999.  The Chairman of the CTG will also contact the
Chairpersons of the Council for Trade in Services and the Council for TRIPS as well as
the Chairperson of the Committee on Trade and Development to suggest that these
bodies make a similar contribution.
4. Other international inter-governmental organizations with expertise and experience in
the field of trade facilitation (notably ITC, UN/ECE, UNCTAD and WCO) will be
invited to contribute to the exploratory and analytical work.  Specific arrangements to
this effect will be made in the informal meetings of the CTG or in the WTO bodies
mentioned under para 3 supra as appropriate.  A symposium with non-governmental
organizations and specialists from the private sector will be considered.
5. To ensure the success of the exercise, Members are encouraged to submit substantive
ideas and proposals at all stages of the process.
6. The results of the exploratory and analytical work mandated by the Singapore
Ministerial Declaration should be reported by the CTG to the General Council."
2. The Council for Trade in Goods met in three informal meetings (28-29 September 1998,
7
 December 1998, and 19-20 April 1999) to discuss the issues set out in paragraph 2 (1) – (3) of the
Chairman’s proposal.  At the first meeting, on 28 and 29 September 1998, a presentation was made by
the WCO Secretariat on the content and review process of the  Convention on the Simplification and
Harmonization of Customs Procedures  (Kyoto Convention).  On 20 April 1999, the Secretariat
organized an information session at which three e xperts, from the Inter-American Development Bank,
UNCTAD, and the WTO, gave presentations on technical cooperation and development issues relating
to simplification of trade procedures, as well as on electronic facilities and their importance for
facilitating international trade.
3. Several Member delegations and one observer circulated written contributions to the informal
work process of the Council for Trade in Goods.  A summary table of these contributions is contained
in the Annex to this document.  The summary table also lists background notes by the Secretariat,
which were prepared in the context of the work programme.
4. The contributions made by other WTO bodies in accordance with paragraph 3 of the
Chairman's proposal are contained in document G/C/W/149.
5. As set out in the last sentence of paragraph 2 of the Chairman’s proposal, the present
summary is intended to assist Members in evaluating the work undertaken thus far.  It provides an
overview of the main points that were raised in the three informal meetings.  It does not intend toprovide an exhaustive summary of all the proposals and arguments presented in the written
contributions, though it seeks to reflect the main thrust of the issues addressed in the papers and at the
informal meetings.G/C/W/153
Page 3
II. DISCUSSION ON BENEFITS AND MEANS TO ENHANCE TRADE FACILITATION
A. OVERALL BENEFITS AND BENEFITS FOR DEVELOPING ECONOMIES
6. Delegations agreed that the simplification of trade procedures had potential for considerable
savings in time, money, as well as human and other resources and could result in substantial benefits
for each and every economy.  Several Members referred to studies that had shown that the savingspotential through enhancement of trade facilitation can be a considerable portion of the value of the
goods traded, often exceeding the costs of tariffs and other duties and charges.  Unlike the latter, costs
incurred through inefficiencies in the transaction chain did not have redistributive effects, but were
dead-weight losses for the economy.
7. Several Members stated that trade facilitation was benefitting all actors in an economy:
importers and exporters through time and money savings, producers through cheaper availability ofintermediate products, consumers through lower prices, administrations through increased efficiency,
enhanced control effectiveness, and the availability of accurate statistics.  Such statistics enabled
Members to carry out accurate economic forecasting and to base their policy choices on such
information.
8. It was argued by several delegations that an improved administrative framework for trade
transactions would benefit especially small and medium-sized enterprises (SME's), as these were
usually at a disadvantage in coping with untransparent trade procedures and would as a result often
opt to stick to their traditional markets.  Trade facilitation would thus expand the trading opportunities
for these companies, and help increase the number of potential trading partners.
9. It was stressed by several delegation that trade facilitation needed to be balanced with other
policy objectives, such as enforcement and protection from trafficking illicit goods.  It was argued that
modern customs techniques such as profiling and risk assessment could contribute towards both
objectives at the same time. Simplification and automation, combined with training and better pay fora smaller number of customs officers, and driven by high-level political commitment, would also
contribute to greater integrity and help eradicate related problems.
10. Some Members stated that trade facilitation was a critical element in any country's economic
infrastructure.  In an age of 'just-in-time' manufacturing and distribution, a facilitative environment for
imports and exports would not only benefit a country's trade, but was increasingly an important factor
in the investment decisions of the private sector.
11. By reducing the costs involved in the trade process and enhancing trade opportunities, it was
argued that trade facilitation was benefitting all Members. Trade facilitation would consequently not
present a situation necessitating the exchange of mutual concessions, but presented a 'win-win'
situation in which all Members stood to gain.  Some delegations stated that simplification of tradeprocedures was strengthening the functioning of the multilateral trading system as a whole.
B. T
HE ROLE OF AUTOMATION
12. Several delegations emphasized that automation was an important tool in the creation of a
facilitative environment for trade.  On the basis of simplified information requirements andprocedures, automation had not only the potential to reduce errors, avoid double entry of information,
and accelerate information flows, but would also allow for increasing de-linkage of movement of
goods from controls and duty assessments, thus minimizing the time that consignments spend idle,
while enhancing an administration’s control effectiveness and ability to collect revenue.  It was stated
that, for many administrations, automation was critical in order to address challenges of increasingtrade flows in the face of stable or falling budget resources.  Time gained in processing documentationG/C/W/153
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and through more selective controls based on risk-assessment would translate into direct resource
gains for administrations.  Moreover, the rapid advances in information technology development
made it conceivable that some countries could leap-frog systems that were currently in place in
countries with a longer history of automation.  It was stated by several delegations that automation
needed to extend beyond customs administrations, and needed to include all players in the tradetransaction chain.
13. The recent developments in information techno logy had led to the emergence of inexpensive
technology solutions, e.g. internet-based solutions, which would particularly enable SMEs to reap the
benefits of electronic communication with government agencies, as well as other participants in the
trade transaction chain.
14. One delegation emphasized that in choosing between automated systems, the demands of
traders ranging from multinationals to SME’s needed to be satisfied.  Complex and costly systems
would not be appropriate tools in facilitating trade.  Therefore, a range of information technology
options which catered to the needs of different types of clients may have to be introduced.  Systems
and content of information needed to be harmonized between administrations, and legislativerequirements for paper documentation had to be abandoned
1.  Some delegations stated that automated
messages should be based on or be compatible wi th the UN/EDIFACT messaging standard.  Other
delegations believed that prescriptions for a particular proprietary standard would be inopportune, and
could possibly, through locking in of antiquated solutions, inhibit use of the best available
technologies.  Open and non-proprietary standards where thus preferable.  It was necessary to involveall players in the trade cycle to make automation and electronic facilities most beneficial.
15. Other delegations, while acknowledging the promise of automation, raised doubts as to the
feasibility of introducing automated systems to thei r administrations in the near future.  Potentially
high start-up costs, poor infrastructure, and lacking human resources were cited as the main obstaclesin this respect.
16. Several Members provided papers
2 and oral presentations on their national experiences with
aspects of trade facilitation.  All oral presentations evolved around a common theme, namely progress
in processing of information and clearance of goods through the introduction of automated systems.
One Member reported that the introduction of an automated customs clearance system had reduced
clearance times for sea cargo from an average 26.1 hours in 1991 to 5.6 hours in 1998; clearancetimes for air cargo had been reduced from 2.3 to 0.7 hours over that period.  Another Member stated
that its ‘single-window’ for electronic data submission would usually lead to completion of all
information requirements within 15-30 minutes.  One Member stated that it had introduced an EDI-
based ‘green channel’ clearing scheme which would in the future be able to handle 30-40% of
consignments.
C. T
ECHNICAL ASSISTANCE
17. It was recognized that technical co-operation was instrumental for moving towards a higher
degree of trade facilitation.  Some delegations stated that WTO commitments on trade facilitation
needed to be complemented with the appropria te means for implementation.  Existing technical
assistance programmes by other intergovernmental organizations would typically address only
specific parts of what was believed to be a whole set of related trade procedures.  Such programmes,
which were each by itself good tools, would often overlap and were rarely well co-ordinated with one
another.
                                                     
1  G/C/W/152.
2  G/C/W/123; G/C/W/125; G/C/W/134; G/C/W/146.G/C/W/153
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18. Several delegations stated that the WTO itself was not in a position to provide the technical
expertise required for much of this technical assistance.  However, some of these delegations believed
that the WTO could set the basic trade policy framework, and provide a platform for co-operation and
co-ordination with other intergovernmental organiza tions who were providing technical assistance in
this area, i.e. UNCTAD, WCO, World Bank and IMF3.
19. Several delegations believed that any comprehensive technical co-operation effort needed to
involve all players in the trading process.  Co-operation and dialogue between government authorities
and the private sector were useful to identify the best possible strategies and products that would
benefit both partners.  If backed by a credible willingness to reform, such partnerships could lead to
private sector engagement in the development and provision of appropriate automated tools, training,
and infrastructure investment for ports, transport and communications.
III. OVERVIEW OF THE DISCUSSIONS ON A ROLE FOR THE WTO IN TRADE
FACILITATION
20. Delegations agreed that the WTO should avoid duplication of work with other organizations.
A. IMPLEMENTATION OF EXISTING AGREEMENTS
21. There was consensus that implementation of existing agreements, such as the Agreements on
Customs Valuation, Import Licensing, Rules of Origin, Sanitary and Phytosanitary Measures, Technical
Barriers to Trade, Preshipment Inspection, as well as the Agreement on Trade-Related Aspects of
Intellectual Property Rights was of crucial importance for the facilitation of trade.  Delegations were ofthe view that at present the implementation of several WTO Agreements was incomplete.
22. Some delegations believed that the WTO should mainly focus on the implementation of
existing agreements, and consider new areas for work only once it became clear that problems did
persist despite complete implementation.
B. N
EED AND SCOPE FOR NEW WTO RULES
23. There were differing views regarding the need and scope for additional WTO rules on trade
facilitation.  While some delegations believed that new multilateral rules could be beneficial, others
believed that there was no need for additional multilateral rules and that work on trade facilitation
should be left to other organizations which were already carrying out work in that area and/or national
initiatives.
24. Some delegations stated that the WTO could develop general guidelines or recommendations
to provide political support for trade facilitation initiatives that were under way elsewhere, both
nationally and in other international fora.  One delegation stated that non-binding recommendations
could be developed regarding ‘single-window’ information submission, or use of automated systems4.
(a) Arguments in favour of new WTO rules
25. It was argued by some delegations that predictability and security for exporters and importers
was best secured with a set of multilaterally binding rules on trade facilitation.  Regarding other
subjects, where initiatives in other organizations had not succeeded in bringing about multilaterallyapplied disciplines, Members had in the past been able to develop regulatory frameworks in the
GATT/WTO that they were willing to  respect.  This apparent strength of the organization could also
                                                     
3 G/C/W/136.
4 G/C/W/150.G/C/W/153
Page 6
be used for the development of a multilaterally binding set of rules on trade facilitation.  Trade
facilitation rules would strengthen already existing disciplines contained in other WTO Agreements.
The WTO had the capacity to identify what was in the common interest for trade.  A set of basic
WTO rules on trade facilitation would guide reform efforts in a consistent direction and provide the
necessary sustained political commitment that was in strumental for successful administrative reform
in this area.  Experience had shown that in addition to practical ‘bottom-up’ technical assistance, a
rule bound ‘top-down’ strategy was needed.  By the same token, a credible ‘top-down’ approach
backed by WTO rules made it easier to attract sustained private sector engagement in the reform
efforts.
(b) Arguments against new WTO rules
26. A number of delegations believed that the ar guments made in favour of new WTO rules on
trade facilitation were not compelling.  While the overall benefits of trade facilitation were recognized
by all Members and many delegations stated that they were convinced of the usefulness of many of
the concepts advocated, it was argued that the problems which developing economies were facing in
this area could not be solved by the introduction of binding commitments subject to the WTO dispute
settlement mechanism.  Instead, a vast effort in technical assistance and capacity building was neededto support national reform efforts and to tackle the main problems of delays and administrative
inefficiencies.  However, resources for achieving and enhancing comprehensive technical progress
that included software development and installation, training, modification of administrative
procedures were limited.
27. It was further argued that many Members were still grappling with the implementation of
certain commitments from the Uruguay Round, and th at these implementation issues needed to be
addressed before consideration could be given to additional rules.
C. P
ROPOSED FRAMEWORKS FOR NEW WTO RULES
28. Several delegations set out concrete proposals for future WTO rules in trade facilitation.  The
full proposals are contained in the respective written submissions, a list of which is annexed to this
summary.  In addition, an inventory of the concrete proposals for future WTO rules was prepared by
the by the Secretariat (G/C/W/132, G/C/W/132/Rev.1.)  This inventory also refers to international
instruments that address the subject-matter of the proposals.
29. Several delegations believed that the WTO should seek to identify areas where new rules
could fill gaps in the existing framework of rules, and add value for the overall enhancement of trade
facilitation.
30. Proponents of WTO rules on trade facilitation agreed that transparency of rules, regulations,
and administrative rulings and practices was of critical importance for participants in the tradetransaction process.
31. One delegation proposed that a framework for WTO rules should include the following
elements:  (i) procedural and substantive improvement of existing WTO Agreements;
(ii) incorporation of elements of work undertaken in other organizations into the legal framework ofthe WTO; (iii) development of additional rules in the areas of customs procedures, and possibly also
in transport, and banking and payment issues.
32. Another delegation stated that a set of binding WTO commitments could be built around the
principles of efficiency and simplification, consistency and harmonization, transparency, protectionG/C/W/153
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and compliance, integrity, cooperation, and consultations5.  Some of these principles were already
embodied in GATT Articles VIII (Fees and Formalities connected with Importation and Exportation)
and X (Publication and Administration of Trade Regulations).  Concepts such as advance rulings,
release of goods, and review and appeal which existed only in some of the WTO Agreements, should
be extended to other areas.  As appropriate, elements of existing international instruments, such as theKyoto Convention, should be incorporated into such a set of rules.
33. It was stated by another delegation that the core objectives of trade facilitation were increased
‘transparency’ and ‘rapid release of goods.’  GATT Articles VIII and X provided a foundation upon
which new rules could be elaborated.
34. Another delegation believed that, if a WTO instrument on trade facilitation was to be
developed, it should contain (i) improved rules on transparency, (ii) encouragement of mutual
recognition of documents, (iii) and increased use of rules and practices developed and recommended
by non-governmental organizations such as ISO standards.  It should further incorporate or refer to
instruments of other fora, e.g. the Kyoto Convention
6.
35. One delegation suggested that the WTO should oversee the policy aspects of the Kyoto
Convention, including the dispute settlement procedures, while the WCO should handle technical
aspects of trade facilitation7.
D. OVERVIEW OF THE PROPOSALS FOR RULES AND /OR MEASURES FOR ENHANCING TRADE
FACILITATION
(a) Customs and Border Crossing Procedures
36. In order to simplify information requirements related to import and export, one delegation
proposed to reduce and harmonize data sets and to seek adoption of international standards (such as
UN-ECE Recommendations) for import and export data.  A harmonized documentation format, basedon the UN aligned document system, should be developed.  Traders should be allowed to submit
required data for their transactions at one time only and to one single agency.  The benefits of such a
‘one-stop’ or ‘single-window’ approach would be greatly enhanced through a seamless electronic
transaction.  On the basis of automated systems for customs data, administrations could be required to
effectively engage in automated customs clearan ce, pre-arrival processing of information, post-
clearance and audit-based controls.  Automated systems should be used to run risk-assessment
programmes which would help minimize physical interventions.  Establishment of objective criteriafor authorized traders would minimize interference w ith legitimate trade.  A target time for clearance
could be envisioned, and official interventions at borders should be coordinated between agencies
(one-stop clearance).  Members should grant timely judicial or administrative redress against
administrative decisions.  Co-operation between trade and government should be fostered.
8
37. Another delegation proposed consideration of rules that ensured quick release of goods.Customs administrations should be required to use risk assessment principles, and border agencies
needed to cooperate, in order to allow for ‘single window’ submission of data and clearance of goods.
Information requirements for import and export should be simplified and harmonized, and compatible
electronic data interchange (EDI) systems needed to be put in place.  In addition, this delegationproposed simplified and streamlined clearance procedures for commercial samples and goods for
exhibition, express consignment clearance, simplified procedures for low values shipments,
                                                     
5  G/C/W/126.
6  G/C/W/137.
7  G/C/W/150.
8  For details on these proposals, see G/C/W/122 and G/C/W/138.G/C/W/153
Page 8
transparency (availability of requirements), and increased use of advance rulings, e.g. in
classification.9
38. Another delegation suggested consideration of mutual recognition of documents or data.10
39. Some delegations proposed establishing a comprehensive database assembling all relevantlaws, regulations and rulings for import and export.
11
(b) Movement of Goods
40. One delegation suggested consideration of adoption of UN-ECE Recommendations 11
and 12, as well as integration of other instruments into a WTO Trade Facilitation framework.
Instruments explicitly mentioned were the IMO FAL Convention , Annex 9 (Facilitation) of the ICAO
1944 Convention on International Civil Aviation , and the Montreal Protocol IV of the Warsaw
Convention.12
(c) Payment, Insurance and other Financial Requirements
41. One delegation proposed to develop measures to improve access to credit information and
suggested further development of ISO quality mana gement standards on payment delays. Also, access
problems to commercial insurance could be addressed.  Furthermore, the problem of late payment in
commercial transactions could possibly be addressed within the WTO.13
(d) Possible amendments to existing WTO Agreements
42. Certain delegations believed that that a trade facilitation framework that was centred around
reduced and harmonized data requirements, modernized customs techniques, a ‘single-window’ for
submission of information, and automated proced ures, should apply to the Agreements on Import
Licensing Procedures, Technical Barriers to Trade, SPS, Rules of Origin, and PSI.14
43. Other delegations believed that existing agreements were not always consistent in theirapproach to trade facilitation-enhancing measures.  In this context, it was suggested that the concepts
of advance ruling, release of goods, and review and appeal which existed only in some of the
agreements, should be extended to other areas.  For example, advance rulings would also be useful
regarding goods classification.
44. On the proposal to amend existing WTO Agreements, one delegation stated that the WTO
Agreements constituted a single undertaking and contained, as a whole, a balance of rights and
obligations.
                                                     
9  G/C/W/126.
10  G/C/W/137.
11 G/C/W/122, G/C/W/151.
12  G/C/W/133; for additional information on these instruments, see G/C/W/132/Rev.1.
13 G/C/W/133.
14 For concrete proposals on the further procedural and substantive improvement of existing
    Agreements, see G/C/W/136and  G/C/W/151).G/C/W/153
Page 9
ANNEX
Summary of written contributions received in connection with the
work programme on Trade Facilitation
Symbol Member / Other
SourceDate Title and Topic
G/C/W/122 European Communities 22 September 1998 Assessment of Scope for WTO Rules in
the Field of Import, Export, andCustoms Procedures
G/C/W/123 Republic of Korea 25 September 1998 Reforming the Customs Clearance
System in Korea(National Experience Paper)
G/C/W/125 Hong Kong, China 28 September 1998 Import and Export Procedures and
Requirements
(National Experience Paper)
G/C/W/126 Canada 30 September 1998 Trade Fac ilitation
(Suggestions for a WTO role in tradefacilitation)
G/C/W/80/Add.1 WTO Secretariat 2 December 1998 Update of background note G/C/W/80
(information on trade facilitation workcarried out by other international
organizations)
G/C/W/132 WTO Secretariat 2 December 1998 Backgro und note
(Inventory of delegations’ suggestions)
G/C/W/133 European Communities 3 December 1998 Issues Relating to the Physical
Movement of Consignments(Transport and Transit) & Payment,Insurance and Other FinancialQuestions Affecting Cross-border
Trade in Goods
G/C/W/134 Republic of Korea 22 December 1998 Matters Related to the Facilitation of
Cargo Movement in Korea(National Experience Paper)
G/C/W/137 Switzerland 4 March 1999 Trade Fac ilitation
(Proposal for future WTO work)
G/C/W/138 European Communities 4 March 1999 Trade Fac ilitation and Electronic
Commerce
G/C/W/136G/L/299
S/C/W/101
IP/C/W/131European Communities 10 March 1999 Trade Facilitation in relation to existing
WTO Agreements
G/C/W/143WT/COMTD/W/60European Communities 10 March 1999 Trade Facilitation in relation to
Development
G/C/W/132/Rev.1 WTO Secretariat 29 March 1999 Background note
(Inventory of delegations’ suggestions)
G/C/W/146 Republic of Korea 6 April 1999 Revision of the Customs Act of Korea
for Trade Facilitation
(National Experience Paper)
G/C/W/148 UNCTAD 8 April 1999 Trade Facilitation
(Overview of relevant UNCTADG/C/W/153
Page 10
Symbol Member / Other
SourceDate Title and Topic
activities)
G/C/W/149 WTO Secretariat 14 April 1999 Contributions received from other
WTO bodies
G/C/W/150 Republic of Korea 15 April 1999 Customs Administration and Trade
Facilitation(Proposal for future WTO work)
G/C/W/151 Japan 23 April 1999 Trade Facilitation – Proposal by Japan
G/C/W/152 Australia 4 May 1999 Role of Electronic Reporting in Trade
Facilitation
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