WORLD TRADE
ORGANIZATIONG/C/W/434
15 November 2002
(02-6343)
Council for Trade in Goods
REVIEW, CLARIFICATION AND IMPROVEMENT OF GATT ARTICLES V, VIII AND X
PROPOSALS MADE BY DELEGATIONS
Compilation by the Secretariat
INTRODUCTION
The present document contains an inventory of Members' proposals on how to review and, as
appropriate, clarify and improve GATT Articles V, VIII and X, as mandated by paragraph 27 of theDoha Ministerial Declaration. It was prepared in response to a request for such a compilation
expressed at the meeting of the Council for Trade in Goods at 1-2 October 2002.
STRUCTURE
The paper groups the proposals according to the GATT Article they refer to, regardless of
when they were first formally presented to the Council for Trade in Goods. In doing so, the document
keeps the sequencing set out in the Work Programme and followed in the CTG sessions, starting with
Article X, moving to Article VIII and finally taking up Article V. Many of the proposals have
overlapping content. To avoid repeated listing of similar texts and to highlight commonalties, the
compilation tries to identify a number of sub-headings under which it groups the various suggestions,based on shared elements. In several cases, this im plies departing from the structuring set out in the
original communications. The sequencing of the sub- headings generally follows their mentioning in
the GATT Article in question, while also attemp ting to list related issues in consecutive order.
Proposals within a subheading are ranked in alphabetic order of the Member suggesting them.
To give the most authentic reflection possible, the compilation keeps the proposals' original
formulations whenever feasible. Direct quotations from the original texts are marked in italic font.
1
                                                     
1 The only slight modifications concern the use of acronyms, which were normally spelled out, and the
use of capital letters.This document has been prepared under the Secretariat's
own responsibility and without prejudice to the positions o f
Members and to their rights and obligations under the WTOG/C/W/434
Page 2
TABLE OF CONTENTS
I. PROPOSALS CONCERNING ARTIC LE X OF THE GATT 1994....................................3
1. Publication and availabi lity of info rmation ............................................................................3
2. Consultative/feedback mechanisms and minimum time periods before entry into
force .......................................................................................................................... ..................7
3. Review and appeal procedures and due process ....................................................................8
4. Technical assistance, capacity buildin g, special and differen tial treatment ........................9
II. PROPOSALS CONCERNING ARTICLE VIII OF THE GATT 1994 .............................11
1. General provisions to make Article VIII more operational ................................................11
2. Specific provisions regardi ng fees and charges ....................................................................12
3. Specific provisions regarding data and documentation requirements and
procedures..................................................................................................................... ...........13
4. Specific provisions regarding customs and related import and export procedures..........15
5. Specific provisions related to co llateral or moneta ry security ............................................18
6. Cooperation and coordination among di fferent authorities; communication with
traders ........................................................................................................................ ..............19
7. Injection of GATT/WTO principles ......................................................................................208. Specific work  programme ...................................................................................................... 22
9. Technical assistance, capacity buildin g, special and differential treatment ......................22
III. PROPOSALS CONCERNING ARTICLE V OF THE GATT 1994..................................25
1. Customs procedures and documentation requirements ......................................................25
2. Non-discriminatory treatment ...............................................................................................263. Differentiation of transshipme nt and non-transshipment...................................................28
4. Fees and charges and securities .............................................................................................2 8
5. Cooperation .................................................................................................................. ...........29
6. Technical assistance, capacity buildin g, special and differential treatment ......................30G/C/W/434
Page 3
I. PROPOSALS CONCERNING ARTICLE X OF THE GATT 1994
Written proposals regarding Article X have been submitted by the following four2 delegations:
− Canada (G/C/W/379)
− European Communities (G/C/W/363)
− Japan (G/C/W/376)
− Korea (G/C/W/377)
1. Publication and availability of information
1.1. Publication and making available of a ll information regarding border crossing
trade3/border rules and procedures4/international trade and customs administration5
(Canada, European Communities, Korea)
Specifications regarding the information covered:
− All (relevant) laws, regulations, judicial decisions, administrative guidelines and administrative
rulings affecting imports and exports; all multilate ral, regional and bilateral agreements affecting
international trade policy; information on cust oms and other border-related agency processes;
conditions and qualifications for different forms of customs treatment, including any amendments
to the foregoing; as well as of where (e.g., offices, websites) the above information can be
obtained;  (Canada)
− All relevant laws, regulations, administrative guidelines, specific decisions of or having general
application, information on customs and other agency processes, conditions and qualifications for
different forms of customs treatment6, right of appeal procedures, fees and charges, port, airport
and other entry-point procedures, including all amendments thereto , as well as  details of customs'
and other government agencies' management plans relating to implementation of WTO
commitments, or of their relev ant reform and  modernisation programmes, including for example
targets, deadlines and benchmarks set in such programmes; (European Communities)
− Laws, regulation, judicial decision and administrative rulings of general applications, made
effective by any contracting party and pertaining directly to international trade and customs
administration, (referred to as 'Measures' for the rest of this paper); (Korea)
Specifications regarding means/modalities:
− Publication and availability of information to all interested parties ; (Canada, European
Communities)
                                                     
2 A written contribution was also received by the Un ited States (G/C/W/384), giving an overview of
mechanisms used by its authorities in ensuring transparency, along with citing related WTO provisions and a
section noting the potential for practical application of technical assistance to operationalize these mechanisms,
without proposing specific measures as such.
3 European Communities.
4 Canada.
5 Korea.
6 Such as, for example, Memoranda of Understanding between customs and operators, criteria for
authorised trader status.G/C/W/434
Page 4
− Through officially designated, readily accessible medium (including, where possible and feasible)
in electronic form; (Canada, European Communities)
− Through centralized inquiry points, publications and, where possible and feasible, through display
on-line (e.g., via electronic homepages); without technology in dissemination to be a mandatory
process.  The information can also be made readily available in publications such as the Customs
tariff, official gazettes, bulletins and public notices. These can be located at appropriate Customs
offices or at other strategic locations where such information is likely to be needed, e.g., at
embassies and trade missions abroad or by display in public offices such as major post offices.
Special enquiry offices or desks can provide a valuable information service. (Canada).
− Information should be presented in a simple and accessible manner and not designed to
discriminate or make it inaccessible or difficult for non-national operators to access;  (European
Communities)
− As regards information on relevant advance rulings, provision is needed whereby binding rulings
can be revoked at any time if made pursuant to false, incorrect or incomplete information, but
otherwise not with retroactive effect or without prior information of interested/affected parties.
(European Communities)
− Any fees charged for the provision of information to interested parties should be commensurate
with the cost of providing that service;  (European Communities)
− Publication in full and promptly in such a manne r as to enable governments and traders to
become acquainted with them; (Korea)
− The media through which Measures are published should be notified to the (WTO) Secretariat ,
which would then be required to make the notified information available to all the Members;
(Korea)
Specific references to technical assistance/cap acity building/special and differential treatment:
− Open to discussing with WTO Members where technical assistance might be provided  in
developing either or both non-electronic and electronic similar, relevant processes.  (Canada).
− Translation services can be considered as a part of a capacity building package to be provided to
the developing country Members;  (Korea)
− As regards notification of media through which to publish measures to the WTO Secretariat,
donor Members could consider technical assistance  in assisting developing country Members to
make use of electronic media, such as the internet, for this purpose;  (Korea)
1.2. Identification of elements that should be  provided in laws and regulations (Japan)
Specification of proposed measure(s):
− Rules identifying the required elements of trade-related procedures;
− Providing trade-related procedures in laws and regulations, and then publicizing them to the
relevant government offices;G/C/W/434
Page 5
1.3. Identification of the means to public ize the laws and regulations (Japan)
Specification of proposed measure(s):
− Setting rules on  the practical ways for publicizing laws and regulations;
1.4. Formulation and publication of ad ministrative guidelines (Japan)
Specification of proposed measure(s):
− Though securing a uniform administration of laws and regulations, it would then be necessary to
formulate and publish administrative guidelines.
1.5. Advance rulings (Canada, European Communities, Japan, Korea)
Specification of proposed measure(s):
− Provision of binding rulings on tariff classification, possibly also on eligibility for treatment under
specific customs procedures such as those of fering relief from duties and taxes, including : rulings
in advance of importation (in response to a written request by an importer, exporter or their
representative), which are binding on the importing authorities, provided that the goods and the
circumstances at importation are identical to those presented in the ruling request; Rulings could
cover the main elements of import requirements, e.g., tariff classification and applicable duties,
taxes and import licensing requirements; (Canada)
− Information made public should also include rele vant advance rulings, notably binding rulings on
classification and origin, provided confidentiality and commercial secrecy is respected;  (European
Communities)
− Establishment of an advance ruling system to ease accessibility to trade-related information for the
private sector; (Japan)
− Any advance ruling of a binding nature could be included in the scope of Measures; (Korea)
Specifications regarding means/modalities:
− Advance rulings could be modified or revoked, after notification, without retroactive application.
In circumstances where inaccurate or false information was provided, such rulings could be
modified or revoked without notification and with retroactive application. (Canada)
− Provision is needed whereby binding rulings can be revoked at any time if made pursuant to false,
incorrect or incomplete information, but otherwise not with retroactive effect or without prior
information of interested/affected parties; (European Communities)
Specific references to technical assistance/cap acity building/special and differential treatment:
− Translation services can be considered as a part of a capacity building package to be provided to
the developing country Members;  (Korea)G/C/W/434
Page 6
1.6. Establishment of enquiry points/trade de sks/single national focal points (European
Communities, Japan, Korea)
Specification of proposed measure(s):
− Establishment of enquiry points or trade desks providing information on measures proposed by the
EC under 1.1, 1.5 and 1.7 for use of governments and traders on a non-discriminatory basis and
notification to the WTO Secretariat; (European Communities)
− Establishment of inquiry points to ease accessibility to trade-related information for the private
sector; (Japan)
− Establishment of a Single National Focal Point (SNFP) to respond to inquiries by Members and
traders regarding Measures or any information directly related with customs procedures,
importation or exportation. The contact  information relating to the SNFP should be notified tothe WTO Secretariat , which should then make such information available to the other Members
(and traders).  The Single National Focal Point should respond to the inquiries within a
reasonable period of time.  (Korea)
Specific references to technical assistance/cap acity building/special and differential treatment:
− As regards the establishment of a single national focal point, a flexible implementation period for
establishing and notifying the SNFP and a relaxation of the responding period could be
considered. (Korea)
1.7. Legal basis for administrative actions, d ecisions or rulings (European Communities)
Specification of proposed measure(s):
− Members could confirm their commitment only to take administrative actions, decision or rulings
affecting importers or exporters where a legal basis to do so is established.
1.8. Notification of core Measures (Korea)
Specification of proposed measure(s):
− Members could consider a notification requirement of Measures (or their core subset) and their
amendments in one of the official WTO languages to the WTO Secretariat. The Secretariat can
make the notified information available to all Member governments. The Members could further
consider allowing access to such information by private traders through an electronic means
managed by the Secretariat. One should introduce the same level of notification requirement as is
used in the TBT/SPS  Agreements.
Specific references to technical assistance/cap acity building/special and differential treatment:
− As a capacity building package, the donor Members can support the provision of translation
services to the developing country Members. Or as a special and differential treatment  package,
the period for notification can be relaxed for developing countries.G/C/W/434
Page 7
2. Consultative/feedback mechanisms and minimum time periods before entry into
force
2.1. Provide for opportunity for all stakeholders/in terested parties to consult and comment on
proposed rules and procedures before thei r formal adoption/implementation (Canada,
European Communities, Korea)
Specification of proposed measure(s):
− Provide early opportunities for stakeholders to comment on prospective rules and procedures (i.e.,
before the rules and procedures are implemented), including: (i) early notice of a proposed
regulation, e.g., in an annual regulatory plan; (ii) a requirement that a public consultation
process be launched to give interested persons an opportunity to make their views known within a
specified time period, e.g., within 60 days; (…)7 (iii) prepublication of the draft regulations in the
official gazette before they can be put in place to give those who are interested in a regulatory
proposal the opportunity to determine the extent to which the proposal is in keeping with previousconsultations. (Canada)
− Establish a provision for consultation between interested parties, both governments and private
sector, on proposed new legislation, regulations  and other procedures affecting import and export
administration, before formal adoption or entry into  force. The scope of any such provision should
be further discussed. This could be extended to include a requirement to establish a regularconsultative mechanism with representative private sector bodies including importers, exporters,
carriers, chambers of commerce, relating to new or revised laws and regulations, and to major
changes in operating procedures, particularly where these are in legislative form.
− Establishing a prior consultation mechanism among interested parties or major stakeholders;
(Korea)
Specific references to technical assistance/cap acity building/special and differential treatment:
− As a special and differential treatment measure, a relaxation of the allowed time could be
considered; (Korea)
2.2.  Adequate time periods for su ch comment (European Communities)
Specification of proposed measure(s):
− Standard, and adequate time periods (should) be provided for comment (…)
2.3. Allow for reasonable/adequate (standard) time periods between adoption and entry into
force of regulations  (European Communities, Korea)8
Specification of proposed measure(s):
− Standard, and adequate time periods (…) should be provided (…) between adoption and entry
into force of regulatiosn, to allow trade to adjust. (European Communities)
                                                     
7 An additional measure is listed under subsequent section 2.4 focusing on its particular content.
8 See also Canada's suggestions under 2.1, page 7.G/C/W/434
Page 8
− The Members should allow a reasonable period of time before the formal introduction of
Measures. (Korea)
Specific references to technical assistance/cap acity building/special and differential treatment:
− As a special and differential treatment measure, a relaxation of the allowed time could be
considered;  (Korea)
2.4. Publication of reasoned motivations fo r a proposed measure (European Communities,
Canada)
Specification of proposed measure(s):
− Publication of the reasoned motivations for a proposed measure in relation to the policy
objectives sought, the availability of other, possibly less trade restrictive measures etc. (European
Communities)
− Analysis to explain what the regulatory proposal is meant to achieve, what alternatives have been
considered, what consultations have been carried out, what the reply of the department or agencyis to the concerns voiced and, what mechanisms are built in to ensure compliance with the
regulations; (Canada)
2.5  Review and update of  primary legislation  (European Communities)
− A commitment could be considered whereby the primary legislation would be reviewed, and as
necessary codified or consolidated at reasonable intervals in order to ensure it remains up to dateand so as to ensure efficiency in the information process. (European Communities)
3. Review and appeal procedures and due process
3.1. Non-discriminatory, legal right of appeal (Canada, European Communities, Japan, Korea)
Specification of proposed measure(s):
− There should be a non-discriminatory, legal right of appeal against customs and other agency
rulings and decisions, initially to a higher authority within the same agency or another body, and
subsequently to a separate judicial or administrative body. (Canada, European Communities)
− Improving accessibility to independent judicial, arbitral or administrative tribunals and making
more readily available procedures to review and correct administrative actions related to customs
matters.  This could include provisions to ensure that trade is not unduly affected pending the
outcome of appeal procedures and could include the following: (i) ensuring that stakeholders
seeking redress with respect to decisions resulting from the interpretation of rules and procedureshave access to appropriate appeal mechanisms; (ii) providing right of review and appeal for tariff
classification and other customs rulings;
9 (…)
                                                     
9 An additional measure is listed under subsequent section 3.2 focusing on its particular content.G/C/W/434
Page 9
Appeal procedures should be clearly outlined in legislation, and the legal requirements and
procedures for filing an appeal should be made readily accessible to the trade community and the
general public;  (Canada)
− Appeal procedures, and standard times and conditions for appeal should be made publicly
available. A standard time should be set for resolution of minor appeals at administrative level.
Procedures for appeal should be easily accessible, including to SMEs, and costs should be
reasonable and commensurate with costs in providing for the appeals. (…) Appeal procedures
should also be available in respect of decisions relating to goods in transit and exports, as well as
imports. Companies should have right to be represented at all stages of appeal procedure by an
agent or legal representative.  (European Communities)
− In order to make appeal procedures effective, as stipulated in Article X, the establishment of a
system, as well as the formulation of laws an d regulations, which would make the system workable
is necessary. (Japan)
− A non-discriminatory, legal right of appeal against customs and other agency rulings and
decisions should be ensured. (Korea)
3.2. Mechanism for goods to be released and possibility for duty payment to be left in
abeyance in certain situations (Canada, European Communities)
Specification of proposed measure(s):
− Providing a mechanism to allow goods to be released and the possibility, in certain situations, for
payment of duties and taxes to be left in abeyance, subject to the requirements of nationallegislation, to the payment of a surety, guarantee or other form of bond pending the outcome of
the appeal. In certain circumstances, pending the outcome of an appeal, goods could be releasedon the basis of the provision of collateral or so me form of monetary security to ensure that
obligations of importers, exporters, warehouse operators or international transporters of goods
would be met.  Care needs to be taken to ensure that the enforcement activity of customs or other
agencies is not reduced or unduly impeded by an unfettered right of release of goods. (Canada).
− Goods should normally be released, and the possib ility be available in given circumstances for
duty payment to be left in abeyance, pending outcome of appeal, subject, where required bynational legislation, to the payment of a surety, guarantee or other form of bond. (European
Communities)
4. Technical assistance, capacity building, special and differential treatment
Apart from the specific references to technica l assistance, capacity building and special and
differential treatment already listed in the context of the measures they relate to, Members' proposals
also contain the following (separate) references to these issues:
− Technical assistance can assist developing countries, particularly the least developed countries,
who face resource and capacity constraints in implementing impr ovements and clarifications of
GATT Articles V, VIII and X. Developing coun tries may also need time to implement new
commitments. (… )  Members will need to discuss in greater detail how best to identify, coordinate
and deliver technical assistance where and when it is needed to implemen t future commitments on
trade facilitation. (…) Reference to the interrelationship of technical assistance to future WTO
commitments in the area of trade facilitation.  (Canada)G/C/W/434
Page 10
− The (… )  proposals (…) may in some cases justify the provision of technical assistance for some
developing countries, who lack resources to impl ement them, or who may need time to introduce
changes. For these reasons it is important that Members provide Technical Assistance to assist
developing countries, especially least developed, to establish requisite information platforms,
particularly in electronic format, in order to fulfil transparency requirements. Where necessary,assistance may also be provided to support the implementation of other commitments that
Members may enter into based on the above proposals. The possible scope and nature of, special
and differential treatment provisions for, in particular, the least developed countries, also needs
further discussion. (…) More generally, the issue of how to integrate the technical
assistance/capacity building dimension in the final result of the process on trade facilitation needs
to be considered in depth, taking into account th e sum of trade facilitation commitments that WTO
members will take on.  (European Communities)
− For developing countries, appropriate technical assistance would be helpful for the purpose of
implementing the measures mentioned above. As me ntioned in the Doha Ministerial Declaration,
technical assistance is important. Thus, consideration must be given to developing countries,
especially the LDCs, which would enable them to reap the benefits of an open, rules-based
multilateral trading system. There are certain international organizations which have the expertisein the area of trade facilitation, for example, the WCO in the field of customs procedures.  Any
existing work done by such international organizations should be taken into account in order to
ensure technical assistance in this area and to avoid any unnecessary duplication from the
viewpoint of work efficiency.  (Japan).
− In examining various ideas, Korea finds it important to consider two basic criteria: (1) the level of
contribution in facilitating trade, and (2) feasibility. Any proposal or idea should be evaluated andprioritized according to how much it can contribute and how easily it can be drawn into relevant
WTO rules and be eventually implemented. What S&D or TA/CB package it offers should also be
taken into account in assessing the feasibility.  (Korea)G/C/W/434
Page 11
II. PROPOSALS CONCERNING ARTICLE VIII OF THE GATT 1994
Written proposals regarding Article VIII have been subm itted by the following six10 delegations:
− Canada (G/C/W/397)
− Colombia (G/C/W/425)
− European Communities (G/C/W/394)
− Hong Kong, China (G/C/W/398)
− Japan (G/C/W/401)
− Korea (G/C/W/403)
1. General provisions to make Article VIII more operational
1.1. Scope and coverage (European Communities)
Specification of proposed measure(s):
− Pursuant to GATT Article VIII, the provisions would apply to all procedures, formalities and
requirements, and fees and charges applied to products by customs authorities or by any othergovernment body in connection with importation and exportation, to the extent not already
covered by other WTO articles and agreements (including procedures and formalities applied bycustoms on behalf of other agencies) ;
1.2. Geographical coverage (European Communities)
Specification of proposed measure(s):
− Any provisions agreed should also obviously apply to sub Federal authorities where appropriate,
as well as to procedures and requirements applied by customs unions.
1.3. Non-discrimination (European Communities)
Specification of proposed measure(s):
− Non discrimination in the design, application and effect of export and import procedures and
formalities imposed on the goods of all Members.
1.4. Transparency and predicta bility (European Communities)
Specification of proposed measure(s):
− Transparency and predictability in the design, application and effect of procedures and
formalities .
                                                     
10 A written contribution was also received by the Unite d States (G/C/W/400), identifying more generally
elements within the context of GATT Article VIII the US considers to warrant clarification and improvement, in
the form of questions intended to contribute to the discussions. The communication does not propose anyspecific measures as such.G/C/W/434
Page 12
1.5.  Avoidance of unnecessary proce dural barriers (European Communities)
Specification of proposed measure(s):
− A commitment to avoid unnecessary procedural barriers to trade in the design, application and
effect of import and export procedures, and in particular to ensure that such procedures do not
unduly slow down the movement or release of goods. This should also  include a commitment not
to design or apply procedures and formalities with a view to or with the effect of giving additional
protection to domestic products.  This would be done by ensuring that import and export
procedures shall not be more trade restrictive than necessary to fulfil legitimate objectives (which
(…) should be specified or given in an illustrative list).
1.6.  Abolishment of procedure or requirement in  case of changed circumstances or less trade
restrictive  alternative (European Communities)
Specification of proposed measure(s):
− A provision whereby Members should no longer maintain a procedure or requirement if the
circumstances giving rise to its introduction no longer exist or if the changed circumstances orobjectives can be addressed in a less trade restrictive manner.
1.7. International standards and in struments (European Communities)
Specification of proposed measure(s):
− Members should base their import and export procedures on agreed international standards and
instruments, except where such international standards would be an ineffective or inappropriate
means to fulfil the legitimate objectives sought.
1.8. Special and differential tr eatment (European Communities)
Specification of proposed measure(s):
− A commitment to the principle and application of Special and Differential Treatment for
developing countries, in particular the least developed countries.
2. Specific provisions regarding fees and charges
2.1. Interpretation of paragra ph 1 (a) (European Communities)
Specification of proposed measure(s):
− Interpretation of Article VIII:1 (a) on the following lines: (i) the service provided must be related
to the products in question; (ii) fees levied must refer to the approximate cost of the service
rendered; (iii) the fees or charges in question may not therefore be calculated on an ad valorem
basis; (iv) administrative or operational costs not associated with treatment of imports or exports
respectively may not be imposed on such imports or exports .G/C/W/434
Page 13
2.2. Commitment regarding paragraph 1 (b) (E uropean Communities, Hong Kong, China)
Specification of proposed measure(s):
− Establish a commitment by Members to review, and if necessary, consolidate or reduce the number
and diversity of their fees and charges, and to notify remaining fees and charges together with the
justification for them in terms of the provisions of Article II and Article VIII of the GATT.Consideration could be given to establishing a lis t of types of permissible fees, e.g. an illustrative
list, or an exclusive list etc
. (European Communities)
− Introduction of basic GA TT/WTO principles like necessity and review into paragraph 1(b) to add
more meaning to this provision; (Hong Kong, China)11
3. Specific provisions regarding data and documentation requirements and
procedures
3.1. Simplification, reduction and standardisation of documenta tion and data requirements
and procedures (Canada, Colombia, European Communities, Hong Kong, China)
Specification of proposed measure(s):
− Simplifying border-related documentation and increasing compatibility/standardizing data
required for release of merchandise by (i) using existing international standards where
appropriate, developing common data sets to be requested in the process of clearance. The
objective would be to create standard, international compatible data sets that will meet
government and trade requirements for international cross-border trade;  (ii)  increased
compatibility and standardization of data sets wo uld facilitate the increased use of information
and communication technologies (i.e., EDI or electronic data interchange).  (Canada)
− Commitment to reduce excessive documentation;12(Colombia)
− Commitment by Members to simplify and reduce documentation and data requirements to the
absolute minimum, consistent with the need to enforce legitimate policies, including the use ofagreed international standards as a basis for documentation and data requirements (both for
format and content of documents and data). The WCO’s simplified data set could be developed
further as the basic reference point/standard, while the UN layout key is also relevant here.
Members could agree to abolish excessive documentation requirements such as demands forconsular invoices and the like, and in cases where physical documentation is required, routinely
accept copies and not originals of documents, except in narrowly defined and clearly identified
circumstances.  (European Communities)
− Inject basic GATT/WTO principles such as least trade restrictiveness/necessity, use of
international standards/harmonization, review, simplicity/modernization, neutrality, consistency
and predictability into paragraph 1 (c) to make it more operational. The suggested measures
include (i) a requirement for import and export formalities and documentation requirements to be
not more trade restrictive and administratively burdensome than necessary to fulfil a legitimate
objective, (ii) a requirement for Members to adopt formalities and documentation requirements
                                                     
11 See also section 7.1 on pages 20 and 21.
12 Referred to as a  medium-term priority.G/C/W/434
Page 14
with reference to international standards, or to  follow guidelines and recommendations in their
import, and export formalities where they exist and appropriate, (iii) a requirement to review
formalities and documentation requirements in the light of changed circumstances and objectives
and to remove/reduce such formalities and documentation requirements if the circumstances or
objectives which gave rise to their adoption no longer exist or if they could be addressed in a lesstrade-restrictive manner, (iv) a requirement to streamline procedures, and simplify and reduce
data/documentation requirements to the minimum and an encouragement to adopt information and
data exchange through electronic means,
13 (v) a requirement for procedures to be neutral in
application and administered in a fair and equitable manner, and for any necessary import and
export formalities maintained for the conduct of trad e to follow the principles of consistency and
predictability so as to minimize uncertainty and discretionary practices (Hong Kong, China)14
3.2. Introduction of uniform domestic customs code (European Communities)
Specification of proposed measure(s):
− Introduction by each WTO Member, or customs union between two or more Members, of a
uniform domestic customs code or similar legi slation, as well as single import and export
declarations, administrative message or data set .
3.3. Acceptance of commercially available in formation (European Communities, Korea)
Specification of proposed measure(s):
− Acceptance of relevant commercially available information and documents as the norm, as well as
regular review of documentation and data requiremen ts in liaison with representatives of the
trading community with a view to continued simplification15; (European Communities)
− Acceptance of commercially available information and copies, except for some justifiable cases;
(Korea)
3.4. Single, one-time presenta tion to one agency (Colombia, European Communities,
Japan,)16
Specification of proposed measure(s):
− Establishment of a single-window facility at border points, with efficient carrier media17;
(Colombia)
− Introduction of the principle of a single, one-time  presentation to one agency, normally the
customs, of all documentation and data requirements for export or import, subject to any
exceptions to be identified.  For developing countries, the commitment should be to implement this
provision in a progressive manner. (European Communities)
                                                     
13 The proposal notes that " This requirement however would need to  take full account of the technical
capacity of individual Members." G/C/W/398, page. 3.
14 See also section 7.1 on pages 20 and 21.
15 For the acceptance of copies, see also the EC proposal under section 3.1. (page 13).
16 See also Canada's suggestions under section 6.1 on page 19.
17 Referred to as a medium-term priority.G/C/W/434
Page 15
− (…) introduction of "single window" through which a trader can submit, once and for all, the
required data to a single agency for various official purposes;18 (Japan)
4. Specific provisions regarding customs and related import and export procedures
4.1.  Simplified/standardised trade and/or clea rance procedures (Canada, Colombia, European
Communities, Japan)
Specification of proposed measure(s):
− Devising of a series of expedited, differentiated, simplified procedures for speedy clearance
through customs of large volumes of small consignments requiring immediate release.
Such procedures/guidelines should provide for immediate release to all such consignments,
provided that conditions stipulated are met and the necessary information is communicated at a
specified time before the consignments arrive at destination. Procedures should take into account
the different categories of goods involved and varying trade patterns and compliance
requirements .
In developing such a system, goods could be grouped into certain categories as noted below.
However, with the exception of restricted goods under suggested category 4, it should be clearly
noted that prohibited or restricted goods would not be included under such an expedited system.
1. Correspondence (personal letters, post cards) and documents (i.e., printed matter in
non-commercial quantities, securities, bank documents and statements, other legal
documents, airline tickets and business correspondence).
2. No value, or low value, non-dutiable and/or non-taxable consignments, e.g.,
transplant organs, human remains, pets, etc; material for mass distribution in
commercial quantities; literature for the bl ind; unsolicited gifts below a specified
value and trade samples.
3. Low value dutiable consignments (i.e., above the value and/or duty and tax limits of
category 2 or those not qualifying for remission or waiver).
4. High value consignments (consignments not falling under other three categories
above) that could include restricted goods. Consignments in this category could be
granted immediate release with subsequent clearance if a provisional or a simplified
goods declaration or invoice with the minimum  information required by customs to
grant release is provided and there are adequate financial guarantees to customs tosecure the payment of duties and taxes. Any required permits, certificates, etc. may be
furnished at the time of release or prior to clearance. For restricted goods, any
permits, certificates, etc., would be required at time of release.  (Canada)
− Accession to the conventions administered by the World Customs Organization (WCO) which seek
to harmonize customs procedures, in particular the International Convention on the Simplification
and Harmonization of Customs Procedures (Kyo to Convention), the Convention on Temporary
Admission (Istanbul Convention) and the Brussels Convention on Nomenclature for the
Classification of Goods in Customs Tariffs, inter alia, which include mechanisms for the
progressive adoption of commitments, selectivity as regards the inclusion of regulations and the
possibility of reservation
19s; (Colombia)
                                                     
18 Also mentioned under section 6.1, "border agency cooperation".
19 Referred to as a medium-term priority.G/C/W/434
Page 16
 
− Progressive introduction of simplified and standardised import and export procedures, based on
international standards and instruments (eg the WCO’s Kyoto Convention). This could include a
commitment to the progressive modernisatio n of customs administrations (e.g. through
implementing the WCO's Custom s Modernisation Programme and the Arusha Declaration), and
agreement by each Member to establish, notify and, within realisable targets, progressivelyreduce, its domestic standard processing times for goods release.
Introduction of simplified release and clearance procedures (eg. Presentation of simplified data
sufficient for rapid release, followed by submission of more detailed data later; or/and periodical
submission of data and company auditing). Membe rs could consider drawing up a list of agreed
types of simplified procedures for adoption. (European Communities)
− Adoption of internationally-accepted standards and instruments, if any, as a basis for setting up
and implementing trade procedures;  (…) use of internationally accepted standards (as regards the
automation of border procedures for imports and exports, including customs procedures) (Japan)
4.2  Use of international standa rds (Colombia, Hong Kong, China20)
− Adoption of international standards on the harmonization and simplification of customs
procedures;21 (Colombia)
− (…) The operation of GATT Article VIII:1(c) could therefore be enhanced by requiring Members
to adopt formalities and documentatio n requirements with reference to international standards, or
follow guidelines, and recommendations in thei r import and export formalities and requirements
where they exist and as appropriate. (Hong Kong, China)
4.3. Special procedures for authorized traders (Canada, European Communities)
Specification of proposed measure(s):
− Streamlined special procedures could be developed for authorized persons, i.e., frequent
importer/exporter who satisfies criteria such as having an appropriate record of compliance with
official import/export requirements and a satisfactory system for managing their commercialrecords in exchange for authority to have goods released quickly.
This could be based on the development and im plementation of a risk management program to
determine which goods and traders are generally compliant with official border procedures and
posing low risk for control purposes. Approval of traders for special or “fast-track” proceduresrequiring minimum official intervention at the border might be considered appropriate for
traders who regularly import/export goods, e.g., - (i ) Provision of minimal information at time of
release of goods; (ii) Clearance at the declarant’s premises or other inland locations; (iii) Ability
to submit a goods declaration covering multiple transactions over a certain specified period; (iv)
Self-assessment and accounting of duties and taxes by an authorized person; (v) Ability to make agoods declaration by a bookkeeping entry in the commercial records of an authorized person.
(Canada)
                                                     
20 Also referred under section 7.1 on pages 20 and 21. Other references to international standards have
been listed in the respective sections dealing with the substantive content of the measures where use of existingstandards has been suggested.
21 Referred to as a medium-term priority.G/C/W/434
Page 17
− (…) introduction by each Member of a system of authorised traders, using transparent, objective
and non-discriminatory criteria . (…)  Would grant to compliant traders willing to support the
customs’ regulatory work with simplified or other premium procedures for their import and export
activities. (…) should not exclude the participation of small and medium sized enterprises.
Members could consider developing in WTO or under WCO auspices a coherent international
standard or model for authorised trader status . (European Communities)
4.4. Risk assessment and/or a dvanced control techniques (Canada, European Communities,
Japan, Korea)
Specification of proposed measure(s)s:
− Development of disciplines covering the use of risk assessment principles and post-entry audits as
a step forward in addressing the trade facilit ation principles of efficiency and effective
compliance.  (…)
The use of risk management techniques can be supplemented by post-entry audits (or compliance
verifications) under which customs can initiate a systems audit and or a periodic verification of
importers’ and carriers’ books and records. This could range from a single program review (e.g.,
valuation, origin, tariff classification) to a co mprehensive review of all customs programs. The
overall objective in using risk management techniqu es and post-entry audits is to allow customs
to be able to identify and effectively attend to areas of higher and unknown risk while allowing
the optimal use of resources to facilitate legitimate trade.   (Canada)
− Use of risk assessment methods based on international standards and practices (…) Such system
should not exclude the participation of small and medium sized enterprises. (European
Communities)
− A reasonable selection of goods to be investigated/examined, based on the appropriate risk
assessment methods;
Adoption of advanced control techniques, such as deferred payment, post-clearance audit, and
release of goods before import permission (with an adequate security, if required); (Japan)
− Pre-arrival processing, post-auditing and core risk-management measures are the key measures
for the rapid release of goods. (Korea)
Specific references to technical assistance/cap acity building/special and differential treatment:
− The focus of the CB/TA should be on instituti onal reform and human training, taking into account
that IT infrastructure could make the process more efficient . (Korea)
4.5. Automation (Colombia, European Communities, Japan)
Specification of proposed measure(s):
− Commitment to press forward with programmes to automate procedures, and to ensure better use
of information technology22, (Colombia)
                                                     
22 Referred to as a medium-term priority.G/C/W/434
Page 18
− Automation of customs and other agency procedures for import and export, including the
possibility to present electronically the customs’ and other declarations, and for the payment ofduties or other fees and charges. (European Communities)
− Promoting the automation of official border procedures for imports and exports, including
customs procedures ; (Japan)
4.6. Non-discrimination
Specification of proposed measure(s):
− Non-discrimination in terms of requirements and procedures applicable to like products
irrespective of their mode of transportation (procedures are unlikely to be identical – but they
should not give rise to discriminatory treatment). Non–discriminatory criteria should also apply inrespect of licensing of customs brokers, together  with an undertaking to phase out, over time, any
requirements for their mandatory use. (European Communities)
4.7. Streamlining of operations and enha ncement of transparency (Colombia)
− Systematization of the processes of the diff erent customs administrations, border crossings,
storage warehouses and places of arrival and departure necessarily involves streamliningoperations and ensuring transparency in the work of customs officials, as well as removing
barriers and the possible discretion to which this gives rise.
23
Specific references to technical assistance/cap acity building/special and differential treatment:
Technical assistance and capacity-building must (…) target this issue, to ensure that all countries are
in a position to implement the standards and disciplines adopted.
5. Specific provisions related to collateral or monetary security
Specification of proposed measure(s):
5.1. Collateral or m onetary security provisions (Canada)
− WTO Members could consider an enhanced clearance system that includes security provisions
(bonds, financial guarantees, surety bonds) or other forms of collateral to ensure the obligations
to customs of importers, exporters, warehouse operators or international transporters of goods,
are properly discharged.  For example, such a system could be used to secure payment of duties
and taxes where payment is deferred or where goods are provisionally released pendingcompletion of final clearance procedures (i.e., such as in cases awaiting a decision on the correct
tariff classification).  A similar relevant process is already reflected in Article 13 of the Agreement
on Customs Valuation.  Such a provision would allow for quicker release of goods by separating
the accounting (payment) process from the movement/importation of the goods.
In addition, it would also be useful in ensuring goods that are imported to fulfil a specific purpose
are subsequently duty-paid or exported after use, e.g., authorization to import goods for “inward
                                                     
23 Referred to as a long-term priority.G/C/W/434
Page 19
processing” without payment of duties and taxes, providing the finished goods are subsequently
exported.
6. Cooperation and coordination among different authorities; communication with
traders
6.1. Border agency coordination (Canada, Japan)
Specification of proposed measure(s):
− Consideration of  ways and means to ensure that the activities and requirements of all agencies
present at borders are coordinated in a manner designed to facilitate trade. This might includeincreasing the compatibility of, or standardizin g the import/export data requirements of such
agencies with the objective of allowing importers and exporters to present all required data toonly one border agency.  Such a “single window” approach could be designed to take into
account, where possible, the use of relevant electronic technology.
It could also include the coordination of proc edures and formalities. Agreements to ensure
cooperation between customs authorities on coordinating border controls and to establish
technical and operational measures to regulate the functioning of integrated border controls
could be considered (e.g., controls through a single, shared physical infrastructure in which theneighbouring countries’ customs services operate side by side). (Canada)
− Cooperation and coordination among different authorities in charge of border controls at entry
and exit point, e.g., introduction of "single window" through which a trader can submit, once andfor all, the required data to a single agency for various official purposes;  (Japan)
Specific references to technical assistance/cap acity building/special and differential treatment:
− Open to explore the possibility for developing specific technical assistance and training in this
area. (Canada)
6.2. Convergence of official controls (European Communities)
Specification of proposed measure(s):
− Where documentary or physical verification of consignments by more than one agency is
necessary this should be carried out at a single place and time, to the extent possible, and at hoursthat meet traders’ needs.
6.3. User – agency communication (Japan)
Specification of proposed measure(s):
− Providing the opportunity for the users of the trade procedures, including private sectors, to bring
forward their views and comments to the agency in question;G/C/W/434
Page 20
7. Injection of GATT/WTO principles
7.1. Injection of basic GATT/WTO principles in to specific provisions of GATT Article VIII
(Hong Kong, China)
−  (…) proposes injection of certain basic GATT/WTO principles, commonly found in the WTO
agreements, into specific  provisions of GATT Article VIII to enhance their operation.  It is neither
intended to be comprehensive in identifying elem ents for clarification/improvement nor exhaustive
in suggesting possible GATT/WTO principles for application to the provisions identified.
       A. Formalities and Documentation Requirements24
Proposal to look at the basic GATT/WTO principles under certain WTO agreements like the TBT,
SPS, or Import Licensing (IL) Agreements and consider their applicability to import and export
formalities and documentation requ irements. The following cites a few common principles which
might be considered for incorporation into GATT Article VIII:1(c) to make it more operative.
These suggestions are however purely illustrative in nature and without prejudice to possiblefuture discussions on the format and language of the clarifications and improvements required.
(i) Least Trade Restrictiveness/Necessity
 Apply a necessity test  similar to the one used in the SPS, TBT and IL Agreements to the
derivation and enforcement of import and export procedures.  Hence, it could be introduced to
improve GATT Article VIII:1(c) by requiring import and export formalities and documentation
requirements to be not more trade restrictive and administratively burdensome than necessary to
fulfill a legitimate objective. Certainly, more thoughts are required to identify a list of “legitimateobjectives” which might include first and foremost prevention of deceptive practices. The list
would be subject to the agreement of Members and should take into account the specific needs of
different Members in the process of derivation.
(ii) Use of International Standards/Harmonization
(…) The operation of GATT Article VIII:1(c) could therefore be enhanced by requiring Members
to adopt formalities and documentatio n requirements with reference to international standards,
or follow guidelines, and recommendations in their import and export formalities and
requirements where they exist and as appropriate.
(iii) Review
A requirement to reduce and remove unnecessary formalities and documentation requirements in
the light of changed circumstances (…) could be introduced under GATT Article VIII:1 (c) with
reference to relevant provisions in  the TBT Agreement or IL Agreement.  (…)
(iv) Simplicity/Modernization
(…) The IL Agreement explicitly requires that application and renewal procedures shall be as
simple as possible. This principle of simplicity could be extended to import and export formalities
and documentation requirements by stressing the need to streamline procedures, and simplify and
reduce data/documentation requirements to the minimum. In the light of developments in
                                                     
24 A (shorter) reference to these proposals was also made under the section 3.1 presenting suggested
measures as regards documentation requirements (pages 13 and 14).G/C/W/434
Page 21
information technology, Members could perhaps be encouraged to adopt information and data
exchange through electronic means.  This requirement however would need to take full account
of the technical capacity of individual Members.
(v) Other Principles in Operation
(…) Members may however consider the need for injecting into GATT Article VIII:1(c) the more
general principle of neutrality, as enshrined in the IL Agreement which requires that rules for
import licensing procedures shall be neutral in application and administered in a fair and
equitable manner.  In addition, it would be impor tant to ensure that any necessary import and
export formalities maintained for the conduct of trade do follow the principle of consistency and
predictability so as to minimize uncertainty and discretionary practices which act as seriousimpediments to trade.
B. Fees and Charges
25
(…) Members may consider the desirability of introducing basic GATT/WTO principles like
necessity and review , (...) to add more meaning to  GATT Article VIII:1(b) which stipulates that
contracting parties recognize the need for reducing the number and diversity of fees and charges
but has not  provided a clear indication  as to how Members would put the recognition into deeds.
Such clarification/improvement may entail reference to GATT Article VIII:1(a) which other
Members may also have suggestions for improvement.
Specific references to technical assistance/cap acity building/special and differential treatment:
− In view of different economic development among Members (..) full consideration should be given
to the technical assistance needs of Members, particularly the developing and least developedcountry Members, in following these basic GATT/WTO principles in their administrations
connected with importation and exportation. In this regard, the WTO should explore fully withother relevant international organizations  like the WCO and the UNCTAD on areas where
cooperation and coordination could be further enhanced. Given the wide spectrum of issues
covered under GATT Articles V, VIII and X, and the resource constraints, it would be important
for Members to prioritize areas where technical assistance and capacity building is most required
in order to develop a more targeted programme.
7.2. Use accepted GATT/WTO principles as refere nce for legal interpretation and guideline
for matters not specifically covered by  Article VIII's provisions (Korea)
− (…) useful to reiterate some of the widely accepted principles with a view to providing a clear
reference for legal interpretations as well as a guideline for the matters not specifically coveredby the operative provisions. Such principles can be inferred from GATT Article VIII together with
the other Articles of the GATT and WTO instruments: (…) (i)  Non-discrimination: MFN and
national treatment; (iii) Transparency; (iii) Predictability (…); (iv) Simplicity, (v)
Reasonableness;
                                                     
25 A (shorter) reference to these proposals was also made under the section 2.2 presenting suggested
measures as regards documentation requirements (page 13).G/C/W/434
Page 22
8. Specific work programme
Apart from the identification of several medium and long-term priorities which have been
listed under the respective headings relating to the content of the suggested measures, the Colombian
delegation further proposed the establishment of a work programme.
8.1. Work program
Specification of proposed measure(s):
− Preparation of a glossary of the terms used in Article VIII and which help to define its scope and
interpretation, such as: "services rendered", "substantial penalties", "approximate cost of
services" and the scope of a "penalty in respect of an omission or mistake … necessary to serve …as a warning", inter alia;
− preparation of an inventory of the measures adop ted by Members under Article VIII of the GATT,
in particular those relating to the documents and procedures used in foreign trade operations andthe fees charged in all cases;
− analysis of the relationship between the provisions of and commitments under Article VIII of the
GATT and the WTO multilateral agreements;
− review of internationally agreed standards on th e streamlining of documentation and procedures;
− exchange of information between Members on their experiences with streamlining procedures and
rationalizing costs;
− preparation of a comprehensive technical as sistance and capacity-building programme for
developing countries, tailored to their individual requirements;
− exchange of information between Members and international organizations on their experiences
with systematizing customs and other national  authorities involved in import and export
procedures, as well as on electronic data transmission.
9. Technical assistance, capacity building, special and differential treatment
Apart from the specific references to technica l assistance, capacity building and special and
differential treatment already listed in the context of the measures they relate to, Members' proposals
also contain the following (separate) references to these issues:
− Full support of the integrated approach of developing WTO commitments and ensuring technical
assistance and capacity building where required to  assist in implementing such commitments.  We
believe this is best pursued through Member discussion on how best to identify, coordinate and
deliver technical assistance in the context of implementing future commitments in tradefacilitation.  (Canada)
− (…) aware of the limitations suffered by (…) customs and trade authorities in terms of physical
and human resources. (…) (R)eiterate the importance of both technical assistance tailored to the
needs and expectations of the different countries and time to move ahead with the planned
programmes and actions.G/C/W/434
Page 23
− Ultimate aim of developing a multilateral agreement  on the interpretation and application of
Article VIII, which takes, among others, the element of special and differential treatment into
consideration. (Colombia)
− Any agreement or understanding on GATT Articles V, VIII and X should recognise the needs and
difficulties faced by developing countries, especially the least developed, and provide practical
means to assist their development. (..) any future WTO provisions should therefore include a
range of special and differential treatment prov isions, including less on erous initial commitments
for poorer developing countries, transitional periods for the assumption of commitments, and
more stable provisions regarding the supply of technical assistance.
(i) Differentiation in commitments: a number of commitments may require resources or capacity
building measures to implement, and may thus  at the moment be beyond the means of, in
particular, least developed countries. This may be the case of the proposals on a single one timepresentation to one agency of data and documentation, automation of customs processes, and
introduction of certain kinds of simplified release procedure, but there may be other specific
procedures which pose difficulties in the short term for particular Members.
In these cases, two options could be considered (..): a) the commitment in question should not
apply until such time as the Member in question is in a position to im plement them, and in the
meantime  developed country Members and intergovernmental organisations should continue as
far as possible to provide technical assistan ce to help implementation. The drawback however
with this option is that it risks creating a semi permanent “two tier” Membership and may
contain insufficient incentives for the Member in question to implement what are at the end of theday valuable improvements to its trading potential. The EU is therefore not convinced that this
would be the best option, but would like to know the views of LDC members. (b) all LDC
Members do enter into commitments to implement all the provisions established in the WTO but
that, in doing so, individual transitional period s would be established for each Member seeking
time, in conjunction with a specific technical assistance programme that would be worked outand agreed with the country in question. The advantage of this approach is that it would increase
the prospect of LDCs actually to join a nd implement the commitments while maintaining
considerable flexibility and giving specific consideration to their individual development
constraints.
(ii) Transitional periods: Transitional periods should also be considered to enable developing
countries other than the least developed to im plement commitments in a progressive or staged
manner, in particular where commitments hav e appreciable resource implications. However,
commitments relating to transparency and non-discrimination could be implemented
immediately.
(iii) Technical assistance and capacity building: The EC already dedicates considerable
development assistance to trade facilitation and intends to continue to do so, particularly if a set
of WTO provisions, setting common standards to wh ich assistance can in future be mobilised, can
be established. The definition of trade facilitation, in technical assistance programmes,  is of
course traditionally wider than customs and bo rder crossing measures, and broader than the
subject matter of GATT Articles V, VIII and X. Assistance for trade facilitation often covers alsomeasures relating to, for example, the improvement of port  infrastructure, cargo logistics, or
services to exporters. (…) The EC proposes the following arrangements for the improved
provision and coordination of assistance in the field of trade facilitation:
a) Members should (…) increase the level and quality of technical assistance for trade
facilitation. Where competing requests for assistance are made, priority should be given to thoseG/C/W/434
Page 24
countries whose needs are clearly identifiable and which have demonstrated clear political
commitment to carrying out simplification measures.
b) Where a Member, as part of its development aid, is providing trade related technical
assistance to another Member it should, if requested by that other Member, include in such
assistance trade facilitation measures and support. (…)
c) Consideration should be given to setti ng up an international mechanism for the future
organisation of technical assistance in the field of trade facilitation, bringing together donor
Members and recipient Members and regional groupings, along with the WTO, UNCTAD, WCO,
World Bank, IMF, UN regional economic commissions, and as necessary otherintergovernmental bodies such as the ICAO, IM O and UPU. This international mechanism would
be charged with ensuring that recipient needs are matched with donors, that potential gaps are
filled, that transparency, coherence and where necessary coordination takes place between
donors and recipients, and that assistance is dire cted, among other things, to implementing WTO
commitments in this field. This kind of coordinated approach simply does not exist today and isneeded.
d) In the case of a Least Developed Country Member seeking to implement specific commitments
only after a transitional period (…), the Member in question could develop and agree with other
donor Members and institutions a specific action plan,  whose implementa tion could be reviewed
and monitored through the joint mechanism described above. Such action plans should define the
activities, funding and timing for implementati on, the commitments to be made by the donors and
the recipient, and where appropriate the regional dimension of implementation.
e) (…) interest from a number of trade federations  in contributing to assistance to implement
trade facilitation measures, notably if some basic rules have been agreed in the WTO to whichthat assistance could be targeted, (…) should be encouraged. (…) national and international
trade federations or interested companies (should) be invited to participate in capacity
building/technical assistance programmes – either in respect of specific country programmes, or
specific areas of expertise - via th e proposed international framework. (European Communities)
− For some countries that lack adequate capacity, appropriate technical cooperation is an effective
tool for introducing and implementing trade faci litation measures smoothly. To this end, when
considering efficient resource allocation, the expertise and work of specialized international
organizations, such as the WCO, shall be fully taken into account. In order to make technical
cooperation programmes more effective, it is important to create targeting goals for technicalcooperation. Japan believes that the best process for achieving such goals would be through
constructive WTO negotiations.  (Japan)G/C/W/434
Page 25
III. PROPOSALS CONCERNING ARTICLE V OF THE GATT 1994
Written proposals regarding Article V have been submitted by the following three delegations:
− Canada (G/C/W/424)
− European Communities (G/C/W/422)
− Korea (G/C/W/423)
1. Customs procedures and documentation requirements
1.1. Limitation, simplification, sta ndardization of customs pr ocedures and documentation
requirements (Canada, European Communities, Korea)
Specification of proposed measure(s):
− Develop new provisions to limit any undue documentation requirements on arrival, or on any
intermediate or subsequent stops in the Customs territory while in transit and on departure of
goods in transit .
(…) limit Customs formalities on arrival, on subsequent stops within the Customs territory and
on departure to the minimum necessary to ensure compliance with Customs law in the territory of
the contracting party.  Such formalities should as simple as possible taking into account
necessary control measures.
Provide for the use of risk management principles to permit special procedures for those traders
(and/or their authorized consignee) that have demonstrated a good record of compliance with
Customs requirements for goods in transit thro ugh the Customs territory. This might include
special arrangements under which Customs formal ities are reduced by agreement between the
Customs and the trader and/or the authorized cons ignor or consignee, similar to the proposals
made by Canada in its submission on Article VIII.
Provide for a provision to promote “the simplification of customs regulations concerning traffic
in transit”. The Havana Charter originally in cluded provisions to “promote international
agreement relating to the simplification of customs regulations concerning traffic in transit, the
equitable use of facilities required for such transit and other measures designed to promote theobjectives of this Article.” This exhortation is captured in part by the provisions of the current
wording from Article VIII, paragraph 1c) “ The contracting parties also recognize the need for
minimizing the incidence and complexity of import and export formalities and for decreasing and
simplifying import and export documentation requirements ”. This has similar application to the
provisions of Article V. (Canada)
− As a general aim, (…) Members could consider provisions to limit to the minimum and harmonise
to the best possible degree the extent and nature of the documents and data to be presented purely
in respect of transiting goods. It would seem appropriate that any specific rules in this context
should begin with specifying that the requirements and procedures applied to traffic in transit
should be significantly less onerous than that for imported or, as the case may be, exported goods .
(…)
The most operational way to proceed will be to introduce a rule that stipulates that the data
required for transit and any other procedures applied must be:G/C/W/434
Page 26
a) Based on international standards where they exist (comparable to the proposals in the EU
paper on Article VIII). b) The minimum needed and for a legitimate purpose. c) Based on the
presumption that they be less comprehensive and onerous than those for importation.  (European
Communities)
− Apart from the measures proposed for the improv ement of Article VIII of the GATT, a further
simplification of customs procedures for goods in transit should be instituted.  Documentary
requirements and physical inspection for transit traffic should be further simplified in due
consideration that transit traffic usually poses lower risks than final destination goods.
“Authorization of a consignor” can be one method of simplifying customs requirements for goods
in transit and setting appropriate risk-based customs procedures.
Documentation data sets should be standardized internationally while reflecting risk elements in
terms of transit. The uniformity of data sets can improve risk management, and can also facilitate
the use of electronic systems for customs procedures.  (Korea)
1.2. Review and removal of unnecessary or  overburdensome procedures (European
Communities)
− There may also be requirements and procedures relating to excessively cumbersome or inefficient
consignment reporting or forms of unjustified custom s intervention. It would be useful to hear the
views of other Members on problems encountered which could be resolved through a tightening upof the commitments in GATT Article V . In identifying such “problems” experienced by operators,
it will of course be necessary to distinguish between procedures that are necessary to carry out a
legitimate control objective, and those which are unwarranted.
1.3. Promotion of use of transit instruments (Canada, European Communities)
Specification of proposed measure(s):
− Promote the use of international instruments rela ting to Customs transit including the possibility
of accession to various instruments relating to Customs transit26, where applicable.  (Canada)
− Members could consider whether it would be us eful, in the framework of GATT Article V, to
promote the establishment of regional transit regimes and provide guidance on their mainelements. WTO members could also envisage pr ovisions encouraging accession to international
instruments relating to customs transit, or to take account of the standards in such instrumentswhen drawing up bilateral or regional instruments. (…) (European Communities)
2. Non-discriminatory treatment
2.1. Non-discrimination between modes of transport in relation to transit procedures
(European Communities)
                                                     
26 Reference was made to the following international instruments: 1) The Customs Convention on the
International Transport of Goods under cover of TIR Carnets (TIR Convention), Geneva, 14 November 1975;  2)The Convention on Temporary Admission (done at Istanbul, 26 June 1990) (as per Annex A as it relates to ATACarnets);  3) The Customs Convention on the ATA Carnet for the Temporary Admission of Goods (ATA
Convention), Brussels, 6 December 1961.G/C/W/434
Page 27
Specification of proposed measure(s):
− (…) Discussing further how, in practice, the requir ement for non-discrimination between different
transit modes is applied, in transit procedures , documentary and data requirements in view of
Members’ need for flexibility in terms of transport and other policy choices. In addition to
“classic” modes of transit such as air, road, rail or boat, it should be noted that the carriage e.g.of oil and gas and other products via pipelines or other means may also fall within the scope of
transit. WTO Members may wish to evaluate whether freedom of transit for such goods is effective
and whether there is any need or scope for reassessing GATT Article V to take account of the
special nature of this form of transit.  (European Communities)
2.2. Non-discrimination between individual carriers in rela tion to transit procedures
(European Communities)
Specification of proposed measure(s):
− (…) to draw up some illustrative guidance as to measures that would  or would  not be considered
consistent with GATT V, paragraph 2. However, to the extent that any such measure operates as
an unwarranted restriction on the services provided (in a broader sense than transit alone)
through cross-border supply or through commercial presence of foreign operators, this would be
an issue more appropriately raised in the context of the GATS. The EC simply wants to note at thispoint the need to better clarify the interface between the freedom of transit for third country
vehicles and vessels guaranteed by GATT Article V and the fact that, under the GATS, the right to
provide a transport service in or across the territory of a third country depends on specific
commitments having been made by that third c ountry. It would be useful if Members were to
consider this inter-relationship further to ensure, at a minimum, consistency between work beingdone in the GATS (including scheduling of commitments in the transport sector) and that in the
CTG as regards Article V. This issue could usefully be drawn to the attention of the Council on
Trade in Services.  (European Communities)
2.3. Non-discrimination between types of  consignment (European Communities)
Specification of proposed measure(s):
− In cases where freedom of transit is denied for carriage of certain (usually controlled) goods, with
local carriers being given the sole right to transport them across the transiting territory,notwithstanding security/safety guarantees being given by the exporting /importing Member, (i)t is
important to distinguish whether, in such cases,  these measures are being applied for legitimate
public protection reasons of the kind referred to earlier, or simply to favour domestic operators. It
should be recognised that certain types of goods will always be subject to special provisions or
may even be excluded from transit altogether. The solution is therefore not to accord carte
blanche freedom of transit to all consignments: this will not be possible or even desirable. WTO
members could however consider the need for countries individually to publish a list of such
“sensitive” goods and  strengthening the obligation of WTO members to ensure consistency of
treatment for such goods and for operators so that when goods are allowed to transit only subject
to exceptional guarantee requirements, those requirements are proportionate and applied
uniformly. (European Communities)
2.4. National treatment (Canada)
Specification of proposed measure(s):G/C/W/434
Page 28
− Paragraph 5 currently calls for most-favoured-nation treatment for traffic in transit, building on
the general provisions of most-favoured-nation treatment that is outlined in GATT Article I. Thereis, however, no explicit accounting of the complementary principle of national treatment on
internal taxation and regulation as contained under GATT Article III. The extension of national
treatment to goods in transit would add more certainty to this Article overall .
3. Differentiation of transshipment and non-transshipment
3.1. Differentiation of transshipment  and non-transshipment (Korea)
Specification of proposed measure(s):
− (…) Different requirements for goods in transit without transshipment than for goods in transit
with transshipment. In the case of maritime countries, if goods in transit do not involve
transshipment into different means of transportation within the Member country, a simple goods
declaration and fairly simple set of service fees ma y be sufficient for transit procedures since there
is only a minimal risk that the goods may be released into the transit country, and the services that
the transit country authorities provides will be relatively small.
On the other hand, for goods in transit which involve transshipment within the transit country,
there may be a need for additional inspection and security measures to prevent the smuggling ofgoods in transit into the transit country as well as other illegal activities during the process of
transshipment. It seems reasonable for the tran sit countries to require a minimal amount of
additional paperwork and service fees.
In the case of landlocked countries, transit traffic, which may or may not involve trans-shipment,
may cross many borders.  Given the higher risk of the illegal release of transit goods, it may be
necessary for these landlocked countries to implement more sophisticated risk management
procedures compared to maritime countries that do not necessarily require border-crossing
transits.
Therefore, it may be useful to discuss the different requirements in each of these circumstances,
and devise appropriate customs measures for each of these cases in order to minimize the burdens
on the traders engaged in transit traffic, while still maintaining a reasonable degree of safety and
order for the countries that these goods pass through.
4. Fees and charges and securities
4.1. Clarification of fees and clearer definition of terms (Canada, European Communities)
Specification of proposed measure(s):
− GATT Article V states that all fees and charges shall be “commensurate with administrative
expenses entailed by transit or with the cost of services rendered” and “shall be reasonable”.  Itwould be useful to provide a clearer definition of this to clarify that fees and charges should only
be charged on a amount representative of the approximate cost of services rendered.
Canada’s submission on GATT Article VIII on fees and charges connected with importation and
exportation made a number of proposals to clarify such fees. These proposals might provide a
basis to elaborate parallel provisions on fees and charges in connection with transit   (Canada)G/C/W/434
Page 29
− GATT Article V, paragraph 4 states that all fees and charges shall be “reasonable”. It would be
useful to provide a clearer definition of this and that  fees should only be charged in respect of the
provision of legitimate services necessary to ensure the effective transit of the goods. WTO
members could consider establishing an indicative list of such legitimate services. The further
work on this should take into account the fact that charges or fees could be justified not only bydirect and specific services connected with the movement of goods but also fees caused by services
of more general benefit to transporters, e.g. derived from the use of harbour waters and
infrastructure maintenance for which public authorities are responsible. Excessive fees charged
for overflying WTO Members' airspace would also appear to be covered by such a provision, to
the extent such operations fall within the scope of Article V paragraph 7.
The EC submission on GATT Article VIII concerning and fees and charges connected with
importation and exportation, made a number of proposals to clarify such fees, and these
proposals may constitute a good basis for elaborating parallel provisions on fees and charges in
connection with transit.  (European Communities)
4.2. Notification of fees and charges (Korea)
Specification of proposed measure(s):
− Notification by members of any changes of fees and charges for transit traffic would be helpful.
Fees and charges for transit traffic themselves wo uld still be subject to the discretion of each
WTO Member .
4.3. Securities (Canada, European Communities)
Specification of proposed measure(s):
− Provide for the possible use of “surety bonds” in cases where the Customs might require security
to be furnished for goods in Customs transit passing through its territory. This might also
potentially address those instances where the Customs transit operation is terminated and thegoods in transit are subsequently entered for importation.  (Canada)
− As regards securities, in view of the problems identified in part 4 h) above, it would be useful to
introduce disciplines on the level, nature and management of securities or deposits demandedfrom transit operators, to ensure that such requirements do not have a chilling effect on trade.
(European Communities)
5. Cooperation
5.1. Cooperation among customs authorities (Korea)
Specification of proposed measure(s):
− A mechanism to institutionalize cooperation am ong the Members’ customs authorities could be
considered. It would deal with the coordination of transit policies and the sharing of information
on goods in transit among WTO Members.
5.2. Harmonization of tran sit policies (Korea)G/C/W/434
Page 30
Specification of proposed measure(s):
Harmonization of transit policies among WTO Members can facilitate transit traffic to a considerable
degree because traders need comply with only one set of customs requirements.  (..)
5.3. Information sharing among customs authorities (Korea)
Specification of proposed measure(s):
− Sharing of information among the customs author ities of WTO Members whose territory goods
pass through can relieve traders of the burden of providing the same information to differentcustoms offices or going through repetitive procedures and thus be instrumental in reducing
paperwork and costs for traders.  (Korea)
6. Technical assistance, capacity building, special and differential treatment
Apart from the specific references to technica l assistance, capacity building and special and
differential treatment already listed in the context of the measures they relate to, Members' proposals
also contain the following (separate) references to these issues:
− (…) want to look to a wider discussion that migh t better place proposals for technical assistance
and capacity building into an appropriate context that could link with more specific proposals
resulting from earlier discussions on Articles VIII and X.  We believe this is best pursued through
Member discussion on how best to identify, coordinate and deliver technical assistance in the
context of implementing future  commitments in trade facilitation.  In this regard, Canada
continues to support fully the integrated approach of developing WTO commitments and
ensuring technical assistance and capacity building where required to assist in implementing
such commitments.  (Canada)
− Proposals to improve the quality and quantity of trade related technical assistance are also
obviously relevant to transit, in cases where Members lack adequate domestic infrastructure . (…)
Special and differential treatment in  trade facilitation could encompass:
(a) possible differentiation in commitments, parti cularly for least developed countries, but also
possibly for other developing country Members with specific needs or facing specific difficultiesin implementing commitments which may ca rry appreciable resource implications.
(b) the use of transitional periods to enable prog ressive implementation of the results, at a pace
and in a manner suited to the needs of developing country Members.
(c) and action to improve the quality, quantity and co-ordination of technical assistance, aimed at
improving the conditions of transit for developing countries, including through more systematicco-operation between donor bodies and recipient Members, while involving as appropriate the
private sector.  (European Communities)
− Members should also consider the need to provide technical assistance and capacity building
measures to developing country Members in order for them to build the necessary infrastructure
and service facilities, and integrate various regulations in order to facilitate the transit of goods.
(…)G/C/W/434
Page 31
(..) proper technical assistance and capacity building measures should be provided to support the
developing country Members to implement so me of the above-mentioned suggestions. To
facilitate transit traffic, technical assistance should be expanded to support developing countries
in their efforts to integrate their regulations, m odernize infrastructure and service facilities for
transit (such as road, rail, airport and waterway  facilities), and automate their transit systems.
Technical assistance can be provided through various means such as workshops, training
programs, or direct financial assistance to inst all electronic data systems. Such technical
assistance can substantially improve the capacity of developing countries to expedite the
processing of goods in transit.
Best practices or a model transit system, which developing countries can easily introduce, should
be developed. Longer implementation periods according to the features of the system can be
considered as special and differential treatment.
In order to provide appropriate technical assistance, an understanding of developing countries’
needs and capabilities in terms of transit measures are also essential. Therefore, developingcountries should take steps to determine in which areas they most need technical assistance.
(Korea)
__________