RESTRICTED
WORLD TRADE G/C/W/80
23May1997
ORGANIZATION(97-2149)
Council forTrade inGoods
2June 1997
TRADE FACILITATION
Background Note bytheSecretariat
(i) MinistersinSingaporedirectedtheCouncilforTradeinGoods(CTG)"toundertakeexploratory
andanalytical work, drawing onthework ofother relevant international organizations, onthe
simplification oftrade procedures inorder toassess thescope forWTO rules inthisarea"
(WT/MIN(96)/DEC).
(ii) Atitsmeeting of27January 1997, theCTG requested theSecretariat tocompile information
inrespect ofwork already doneorbeing doneonthesubject oftrade facilitation inother international
organizations, including non-governmental organizations byMay 1997. Asafirststepinthis
compilation,theCTGrequestedthattheSecretariatprovideanoverviewofthetradefacilitationactivities
undertaken bytheseorganisations (G/C/M/17). Incompliance withthisrequest, theSecretariat produced
abriefBackground Note fortheCTG meeting of26March 1997 (G/C/W/70).
(iii) Thepresent Background Note isstructured asfollows: Section Aaddresses thework of
international inter-governmental organizations. Section Bcovers workundertaken byinternational non-
governmental organizations. Section Cgives ashortoverview oftradefacilitation related work carried
outbyregional organizations andfreetrade agreements andcustoms unions. Section Dgives ashort
account ofother initiatives andactivities onthissubject andAnnex Econtains anon-exhaustive list
ofWTO provisions related totrade procedures.
(iv) TheNotecoversalargenumberoforganizationsandawiderangeofissuesrelatedtocommercial
activity. Inlinewiththemandate given bytheCTG, theSecretariat hasattempted todraw abroad
picture oftheactivities ofother organizations. Themain textseeks toprovide aconcise overview
ofthiswork, covering themainaspects related tothe"simplification oftradeprocedures". More detailed
information onthework ofsome organizations iscontained intheAnnexes.
(v) Thisdocument issubmitted totheCTG withtheacknowledgement thatother activities and
initiatives related totrade facilitation mayexist; anyomission ofsuchactivities orinitiatives inno
wayconnotes anymeaning bytheSecretariat. Theinformation presented isbased ontheSecretariat 's
bestefforts, given thetimeandinformation available.G/C/W/80
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TABLE OFCONTENTS
A. INTERNATIONAL INTER-GOVERNMENTAL ORGANIZATIONS ..........4
I. United Nations Economic Commission forEurope (ECE) ............4
Background ..........................................4
Electronic DataInterchange (EDI) ...........................5
Other work oftheECE ..................................6
International Trade Transaction Modelling ......................6
II. United Nations Commission forTrade andDevelopment (UNCTAD) .....6
Background ..........................................6
United Nations Symposium onTrade Efficiency ...................7
Trade Point Programme ..................................8
Other UNCTAD work ...................................8
III. World Customs Organization (WCO) .........................10
Background ..........................................10
International Convention ontheSimplification andHarmonization ofCustoms
Procedures (Kyoto Convention) ........................10
Current revision oftheKyoto Convention .......................11
Customs Convention onTemporary Admission (Istanbul Convention) .....12
International Convention ontheHarmonized Commodity Description and
Coding System ..................................13
International Convention onMutual Administrative Assistance forthe
Prevention,InvestigationandRepressionofCustomsOffenses(Nairobi
Convention) ....................................13
Other Customs Conventions administered bytheWCO ..............14
Other instruments andprogrammes ...........................14
IV. United Nations Commission onInternational Trade Law (UNCITRAL) ....15
V. International Maritime Organization (IMO) ......................15
Convention onFacilitation ofInternational Maritime Traffic (FAL) ......16
VI. International Civil Aviation Organization (ICAO) ..................16
VII. Economic andSocial Commission forAsiaandthePacific (ESCAP) ......17
VIII. Organisation forEconomic Cooperation andDevelopment (OECD) .......17
IX. TheInternational Trade Centre (ITC) .........................18
X. TheWorld Bank ......................................18
XI. TheInternational Organization forStandardization (ISO) .............18
B. INTERNATIONAL NON-GOVERNMENTAL ORGANIZATIONS ...........18
I. International AirTransport Association (IATA) ...................18
II. International Chamber ofCommerce (ICC) ......................19
III. International Chamber ofShipping (ICS) .......................20
IV. International Road Transport Union (IRU) ......................20
V. International Federation ofFreight Forwarders Associations (FIATA) .....20
C. REGIONAL ORGANIZATIONS AND FREE TRADE AREAS ORCUSTOMS
UNION .................................................21
I. Asia-Pacific Economic Cooperation (APEC) .....................21
II. European Union (EU) ...................................22
III. North American FreeTrade Agreement (NAFTA) .................22
D. OTHER ACTIVITIES AND INITIATIVES ..........................22G/C/W/80
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E. LIST OFWTO PROVISIONS (URUGUAY ROUND AGREEMENTS/GATT 1994)
RELATED TOTRADE FACILITATION ...........................23
Article V-Freedom ofTransit ..................................23
Article VII-Valuation forCustoms Purposes .........................23
Article VIII-FeesandFormalities connected withImportation andExportation ....24
Article IX-Marks ofOrigin ....................................24
Article X-Publication andAdministration ofTrade Regulations .............24
Agreement onRules ofOrigin ...................................24
Agreement onImport Licensing Procedures ..........................25
Agreement onPreshipment Inspection ..............................25
Agreement onTechnical Barriers toTrade (TBT) .......................25
General Agreement onTrade inServices ............................25
Agreement onTrade-Related Aspects ofIntellectual Property Rights ...........25
Agreement ontheApplication ofSanitary andPhytosanitary Measures ..........26
ANNEXES
Annex I: UN/ECE RECOMMENDATIONS ...........................27
Annex II: EXPLANATION OFEDI ................................31
Annex III: THE ANNEXES OFTHE WCO KYOTO CONVENTION ............34
Annex IV: THE ANNEXES OFTHE WCO ISTANBUL CONVENTION .........41
Annex V: THE ANNEXES OFTHE WCO NAIROBI CONVENTION: ..........44
Annex VI: OTHER WCO CONVENTIONS ............................45
Annex VII: WCO RECOMMENDATIONS .............................48
Annex VIII: WCO INTERNATIONAL CUSTOMS NORMS ..................51
Annex IX: DETAILED OVERVIEW OFUNCITRAL ACTIVITIES .............52
Annex XI: ICCINTERNATIONAL CUSTOMS GUIDELINES ................57
Annex XIII: ADDITIONAL INFORMATION ONIRUACTIVITIES .............59
Annex XIV: FIATA TRADE FACILITATION DOCUMENTS .................60
Annex XV: UNITED NATIONS CONVENTIONS RELATING TO TRADE
FACILITATION ......................................61G/C/W/80
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A. INTERNATIONAL INTER-GOVERNMENTAL ORGANIZATIONS
I. United Nations Economic Commission forEurope (ECE)
Background
1. Work ontradefacilitation activities began intheECEin1960, following a1959initiative from
theNordic countries, when itwasdecided tosetupaGroup ofExperts toexplore waysinwhich export
documents could besimplified andstandardized. In1971, thetradefacilitation work wasreorganized
intothenewly established Working Party ontheFacilitation ofInternational Trade Procedures, also
referred toasWorking Party 4orWP.4. Itsactivities were concentrated intwoareas, eachcarried
outinagroup ofexperts (GE.1 andGE.2):
"theanalysis oftrade 'formalities 'andprocedures asembodied ininformation requirements
(whether legal, administrative, commercial oroperational) ofparticipants ininternational trade;
and
thedevelopment ofimproved transmission methods (computerized processing and
tele-transmission) fortrade information which could replace traditional paper documents".
Participants included representatives fromtheECEMember governments, representatives fromnational
tradefacilitation bodies, major international organizations aswellascountries notmembers oftheECE.
Member countries oftheUnited Nations notmembers oftheUN/ECE wereentitled toparticipate in
thework ofWP.4 under Article 11oftheECE Terms ofReference.
2. Themajority ofinternational andinter-governmental organizations which areactive intrade
facilitation, work onthebasis of,andtowards theimplementation ofECE standards. Thework of
thetwoexpert groups hasbeenoriented towards thefollowing trade facilitation objectives:
- "seeking improvements intradeprocedures inorder toassist governments andtradeparticipants
tobemore efficient andeffective while alsominimizing delays andcosts...thus reducing
'artificial 'barriers toincreased participation inworld trade;
- reducing thecostofthepaperwork usedintrade byseeking, incooperation withtheinterests
andauthorities involved, thereduction, simplification andinternational harmonization ofthe
information anddocuments required forforeign trade...;
- standardizing theformats (whether electronic orpaper) usedintransaction information flows
foradministration, commerce andtransport ataninternational level...;
- ensuring thattheinformation flows related tothedistribution ofgoods andservices facilitate
anddonotimpede national industrial development orgrowth inexternal trade...".
3. InFebruary 1997, WP.4 wasreorganized intotheCentre forFacilitation ofProcedures and
Practices forAdministration, Commerce andTransport (CEFACT) byaDecision oftheCommittee
ontheDevelopment ofTrade atits45thsession. CEFACT hasreorganized thework oftheWP.4
inorder tostreamline decision-making, leverage collaborative efforts anddelegate technical decision
tofieldexperts. Itworks through informal technical groups; allows thefullparticipation ofnon-ECE
countries, interested international organizations andrecognized NGOs within itsmeetings and
management structure; andmakes useoffocalpoints ininterested UNregional commissions andan
inter-secretariat taskforce oftheECE, UNCTAD andtheITC. CEFACT alsocooperates withprivate
business andother intergovernmental organizations which participate directly initswork.G/C/W/80
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4. Oneofthefirstoutcomes oftheWP.4 arethe26UN/ECE Trade Facilitation Recommendations,
developed overthecourse ofthepast37years.1Several ofthese recommendations havebeenadopted
bytheInternational Standards Organization (ISO) asISOinternational standards (seeunder ISObelow).
ThefirstRecommendation wastheUnited Nations Layout Keyessentially establishes asetofrules
onhownational trade documents should beformulated. Before itsimplementation, theinformation
onthenumerous documents needed fortradewasscattered indifferent places ondifferent forms without
anyuniform system. Implementation, which intensified inthe1970's,sawtheforms printed onthe
samesizepaper withcommon items ofinformation occupying thesamerelative position oneachform.
IntheareaofTrade Procedures, theRecommendation 18"Facilitation measures related tointernational
trade procedures" istobenoted. Itcovers, interalia,some aspects ofcustoms procedures andpre-
shipment inspection. TheECE iscurrently reviewing andupdating thisrecommendation.
5. Information accumulation during thelifetime ofatrade transaction maytakeplace inaseries
ofdocuments orinanelectronic record. Paper documents arethebasis forinformation exchange
between humans while electronic records arethebasisforexchange ofinformation between computers.
Thelatter concept isattheorigin ofElectronic DataInterchange orEDI. Whatever theform, paper
orelectronic data, theissue istheexchange andtemporal flowofinformation andtrade facilitation
isconcerned withstudying waysandmeans ofexpediting theflows bysimplifying related procedures.
6. Asaresult ofthework ontheUNLayout Key,theimportance ofstructured tradeandbusiness
datawasrecognized. Thisresulted inthedevelopment ofstandardized codes anddataelements for
useinbothpaper andelectronic based information exchange. These standards arecompiled inaset
ofthree volumes called theUNTrade Data Element Directory (UNTDED), aswellasinsome
Recommendations.VolumeIcontainsdefinitions1000dataelementsincludingUN/EDIFACT;Volume
IIcontains standardized codes tobeusedwiththedataelements; Volume IIIcontains the26ECE
recommendations. Volume I,thedataelements, isanISOstandard (ISO 7372) which isjointly
maintained bytheECE andtheISOcentral secretariat.
Electronic Data Interchange (EDI)
7. Theuseofcomputers tocarry outbuying andselling between individuals, individuals and
companies, andcompanies andcompanies, known aselectronic commerce, hascontributed significantly
tofacilitating international commerce because itisreducing theamount ofpaperwork thatisrelated
todoing business. Thiscanbedonethrough theInternet, theWorld Wide Web, E-mail andElectronic
DataInterchange (EDI). EDIcanbedefined asthe"structured exchange ofdatabetween applications
indifferent companies". Astructured message isformatted according toapredefined arrangement
ofputting theinformation intoafile. Onpaper, thiswould bea"form". InEDI, theformat used
ingeneraliscalledUN/EDIFACTortheUnitedNationsElectronicDataInterchangeforAdministration,
Commerce andTransport.
8. UN/EDIFACT isaninternational standard fortheformatting andsequencing ofdataforEDI.
Itwasdeveloped through thework ofWP.4 intheareaofEDItodevelop aninternational standard
toreplace thetwonational standards which hademerged intheUnited States andinEurope andwhich
werecreating difficulties forinternational trade. TheUN/EDIFACT is"asetofstandards, directories
andguidelines fortheelectronic interchange ofstructured data,inparticular related totrade ingoods
orservices, between independent computerized systems indifferent organisations, irrespective ofthe
typeofcomputer orsoftware used". Inother words, EDIshould taketheplace ofthepaper exchange
ofbusiness documents.
1Acomplete listofthese recommendations andstandards iscontained inAnnex Iofthedocument.G/C/W/80
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9. EDI,andUN/EDIFACT, canbeclassified asoneofthecornerstones ofElectronic Commerce.
Within thework programme ofCEFACT thereareactivities forthereview, monitoring andevaluation
ofon-going developments intheinformation technology areainorder toincorporate appropriate new
technologies, suchasthose related toElectronic Commerce, intoitswork. Recommendation 25
encourages theuseofUN/EDIFACT bygovernments intheir administrations andintheir EDI
communications withtheprivate sector, andwillbeconsidered bytheUNEconomic andSocial Council
foradoption asaUNRecommendation inJuly1997. Adescription ofthetechnical aspects ofEDI
andUN/EDIFACT isincluded asAnnex IIofthispaper.
Other work oftheECE
10. Another areaofwork within theWP.4 relates tolegalissues arising from trade facilitation
initiatives. Theremoval oflegalimpediments isakeyrequirement toenable global trade todevelop
andbefacilitated. Incarrying outitslegalworkprogramme, CEFACT liaises withotherorganizations,
particularlytheUNCommissiononInternationalTradeLaw(UNCITRAL)andtheInternationalChamber
ofCommerce (ICC).
International Trade Transaction Modelling
11. Since 1994, theECE through WP.4 andnowCEFACT hasbeenworking onthemodelling
ofageneric tradetransaction system which would provide thetemplate fornational models. Themain
objective ofthisworkistoprovide aframework anddiscipline forallrelevant future CEFACT activities
withappropriate liaison withoutside agencies. Thework isbeing carried outthrough aMaintenance
Agency withthemandate to"...undertake themodelling oftheinternational trade transaction, asa
whole, taking intoconsideration allaspects ofmodern datamodelling techniques withaviewtoproduce,
onthebasis ofthismodel oritscomponents, allnecessary information formanagement inthefield
oftradefacilitation, andtomake proposals asappropriate". TheECESecretariat steers theMaintenance
Agency through regular meetings andthrough active interfacing.
12. Thedynamic modelling willconsist of:
- theoverall dynamic behaviour seenfrom aglobal point ofview(business process);
- thedynamic behaviour within alimited logical part(stage) ofthetrade transaction;
- thedetailed dynamic behaviour inlocalsteps(processes/tasks) ofthetradetransaction.
13. Oneofthemainobjectives ofthisactivity istoenable thefuture possibility ofusing EDIFACT
toexpedite andfacilitate transactions atalllevels. Therefore, thedynamic modelling takesintoaccount
therules andguidelines setupbytheBusiness andInformation Modelling (BIM) group inthe
UN/EDIFACT JointRapporteurs Team (JRT). Toenable theuseofelectronic messages, itisnecessary
tocreate themodel asdetailed aspossible inspecific areas (transport ofgoods, payments, etc.)and
toidentify message functions, sequence, business rulesandconstraints thatapply toeachbusiness area.
These business dataattributes andrelationships, defined inscenarios ofEDIsupported activities, would
bemapped toEDIFACT structures asspecified bytheEDIFACT syntax.
II. United Nations Commission forTrade andDevelopment (UNCTAD)
Background
14. UNCTAD became involved intrade facilitation work in1970 when itwasagreed, within the
ECEcontext, ontheneedforfacilitation work tobecoordinated onaglobal basisandfortheexisting
technical functions oftheUnited Nations tobestrengthened inthisarea. Theregional economic
commissions agreed thattheUnited Nations Development Program (UNDP) provided anappropriateG/C/W/80
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framework foraninterregional project tobeattached toUNCTAD. Asthework expanded, itbecame
necessary toseparate theUNDP-financed technical assistance activities andthesubstantive UNCTAD
secretariat work. In1973, UNCTAD andtheECEagreed thatUNCTAD would provide secretariat
technical expertise onaglobal basis. In1975, aseparate secretariat unitwasestablished called the
Special Programme onTrade Facilitation (FALPRO).
15. FALPRO(whichwassubsequentlybeenabsorbedbytheSpecialProgrammeonTradeEfficiency
-seebelow) didnotreport toanyofthebodies within UNCTAD 'spermanent organization structure
andwasnotpartofUNCTAD 'spolicy ornegotiation work. Itsattachment withUNCTAD enabled
ittowork globally withtheregional economic commissions, particularly theUN/ECE, andwiththe
International Trade Centre (ITC). Theoriginal terms ofreference ofFALPRO essentially wereaimed
atensuring thefullparticipation ofdeveloping countries intheinternational trade facilitation work
andindealing withfacilitation matters cross-sectorally withother UNCTAD programmes suchasthe
commodity agreements; generalized system ofpreferences; transport work; harmonization ofcustoms
procedures, etc.Themeans toachieve thisweretocreate representative national facilitation bodies
andtoarrange training ofofficials fromthecountries concerned inorder toenable them tocarry out
trade facilitation work intheirowncountries andtoparticipate ininternational meetings.
16. In1992, attheUNCTAD VIIICartegena Conference2,itwasagreed thatanExpert Working
Group onTrade Efficiency beestablished within UNCTAD. While taking dueaccount ofwork done
inother international organizations, theGroup "would seektosupport, accelerate andenhance these
initiatives...The Group would produce guidelines needed totakeconcrete stepstowards tradeefficiency
atthenational andinternational levels, especially indeveloping countries...The culmination ofthework
ofthegroup would beaninternational symposium ontradeefficiency, which wastobeheldin1994".3
Thesymposium wastoreinforce international discussion onthepromotion ofharmonized national
andregional infrastructures fortrade andtradeefficiency. AttheSecretarial level, UNCTAD 'swork
inthecontext oftheinter-secretarial FALPRO wasincorporated intotheSpecial Programme forTrade
Efficiency (SPTE). Inthe1996reorganization ofUNCTAD, SPTE wastransformed intotheDivision
ofrServices Infrastructure forDevelopment andTrade Efficiency (SITE) andtradefacilitation activities
fallunder itsTrade Facilitation Section. Theobjective oftheSITE istosimplify andharmonize trade
proceduresworldwideandgivegovernmentsandtradersaccesstoadvancedtechnologiesandinformation
networks. TheSPTE carries outawidevariety ofactivities which aredescribed below.
United Nations Symposium onTrade Efficiency
17. TheUnited Nations International Symposium onTrade Efficiency washeld, atMinisterial
level, inColumbus, Ohio, inOctober 1994. TheColumbus Ministerial Declaration onTrade Efficiency
contains thesubstantive outcome oftheSymposium. TheSymposium noted thesigning oftheFinal
ActoftheUruguay Round inMarrakesh as"thesuccessful conclusion ofyears ofnegotiations onthe
macro-economic framework required fortheemergence ofanopen, predictable, secure andnon-
discriminatory trading system. However, efforts made tosecure anopentrade environment willnot
beartheirfullbenefits unless theenterprises ofallnations canimport andexport efficiently...[delegates]
havegathered tofindsolutions tothese micro-economic issues ofinternational trade".4
2UNCTAD VIII, heldatCartegena deIndias, Colombia, February 1992.
3"The Cartagena Commitment", UNCTAD VIII, February 1992.
4"Columbus Ministerial Declaration onTrade Efficiency", Report oftheUnited Nations International Symposium onTrade Efficiency,
TD/SYMP.TE/6, November 1994, para. 2.G/C/W/80
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18. TheSymposium concluded that"adoption oftradeefficiency measures cansignificantly lower
thecosts oftrade transactions. Estimates place thecosts oftrade transactions at7to10percentof
thetotalvalue ofworld trade". TheColumbus Ministerial Declaration putforthasetofpractical actions,
recommendations andguidelines forGovernments, international andnational organizations and
enterprises. They address sixareas which wereconsidered ripefortangible results forinternational
trade: customs, transport, banking andinsurance, information fortrade, business practices, and
telecommunications. UNCTAD 'srole,asagreed attheSymposium, wastoactasthefocalpoint in
theimplementation oftheDeclaration, which would require coordinated efforts bymany national and
international bodies, particularly theUnited Nations. Inparticular, theSymposium called for
"coordination withtheGATT/WTO andallUnited Nations regional economic commissions...[as] of
particular importance infacilitation oftrade".
19. Ofparticular interest forWTO Members, theDeclaration called for,intheareaofcustoms,
"Governments,throughtheirCustomsauthorities,tosimplifyproceduresfordeterminingcustomsvalue,
which cancause significant delays intheclearance ofimport consignments, through theuseofthe
Customs valuation method prescribed intheGATT Agreement, asadministered bytheCustoms
Cooperation Council, which isadministratively lesscomplex thanother methods currently inusein
some countries...". Inaddition, theDeclaration called forGovernments to"avoid asfaraspossible
theuseofpre-shipment inspection agencies tocarry outcustoms-related activities. While recourse
tosuchservices might beanecessity incertain circumstances, itshould beregarded asaninterim
measure andconducted inconformity withtheprovisions oftheAgreement onPreshipment Inspection
annexed totheMarrakesh Agreement...".
Trade Point Programme
20. TheMinisterial Declaration alsoinitiated thelaunching ofUNCTAD 'sTrade Point Global
Network. Atpresent, UNCTAD hasassisted intheestablishment of40operational "Trade Points",
andisassisting intheestablishment of140others, foratotalpresence in109countries, through its
Trade Point Technical Cooperation Programme. Trade Points arenational centres fortradefacilitation,
where participants inforeign trade transactions (e.g.customs, foreign trade institutes, Chambers of
Commerce, freight forwarders, transport companies, banks, insurance companies) aregrouped together
physically orelectronically toprovide allrequired services fortrade transactions. They areasource
oftrade-related information which provides actual andpotential traders withdataabout business and
market opportunities, potential clients andsuppliers, trade regulations andrequirements, etc.Their
primary objectives aretoenhance theparticipation ofdeveloping countries andeconomies intransition
ininternational trade, withspecial emphasis onsmall- andmedium- sized enterprises; toreduce
transactioncostsandpromotebettertradepracticesincludingthroughtheuseofinformationtechnologies
andEDI; andtoallow better access fortraders totrade-relation information andglobal networks.
21. TheTrade Point Global Network, launched attheColumbus Symposium, assembled thePoints
together intoaworldwide electronic network which facilitates communications across borders, provides
easyaccess tointernational databases andopens doors toelectronic trade. TheMinisterial Declaration
contained specific recommendations fortheTrade Points aswellasfortraders, providers ofinternational
trade, transport, maritime, financial andcommunications services. Implementation ofthe
recommendations thatemerged from theSymposium isamong thepriorities ofUNCTAD 'scurrent
work intrade facilitation.
Other UNCTAD work
22. Asconcerns technical assistance under theSITE, most important istheUNCTAD Growth
PackagewhichhasasitsmaincomponenttheASYCUDAcustomssoftwareprogram,thelargesttechnical
assistance project inUNCTAD. Itconsists ofaseries ofefficiency measures combining door-to-doorG/C/W/80
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logistics, trade facilitation, andcustoms simplification andautomation. Thecoreoftheprogram is
acomputersoftwareprogramwhich,since1985,hasbeeninstalledinover70developingandtransitional
economies intheworld. Itisdesigned tostreamline andreduce customs forms andprocedures and
isbased onandincorporates ECEandWCO recommendations andstandards, including those related
totheDocument Layout Key,codes andother standards. Thebasic ideaistoridthecustoms system
ofoutdatedprocedures,practicesandincorporateinternationalpracticesandstandardsinordertoincrease
thecountry 'scustoms revenue through reduced costs andfaster clearance. Thefirstprogram was
developed byUNCTAD in1983onmicro computers. Since then, theprogram hasbeenupdated and
revised numerous times toimprove capacity andperformance. Thesoftware canbeadjusted toeach
country 'scustoms valuation methodology andtranslated intoitsofficial language.
23. Thetransport sector hasreceived themost attention ofallsectors ofeconomic activity in
UNCTAD 'stradefacilitation work. UNCTAD implements, through theUNCTAD Growth Package,
theconcept ofNational Trade andTransport Facilitation Committees (NTTFC). These committees
bring together representatives ofallpublic andprivate parties concerned withinternational trade and
transport facilitation inacountry, i.e.governmental entities, services providers, andtransport users.
Established asaconsultative body, anNTTFC serves asanational forum toestablish formalities,
procedures anddocumentation usedininternational transport andtrade; itsmandate istoprepare
recommendations andadvise ondomestic andforeign policy matters related tothedevelopment of
trade andtransport through proposals totheinstitutions concerned andtotheexecutive branch ofthe
government. UNCTAD andtheLatin American Association forIntegration (ALADI) havesigned
aMemorandum ofUnderstanding topromote jointly thecreation ofNTTFCs inLatin America In
aparticular sub-region these committees canserve asfocalpoints tomonitor andcoordinate regional
actions ontrade facilitation.
24. Other activities inthetransport areahaveconcentrated ontheincreasingly multimodal transport
operations oftransport services, ontheuseofdifferent terms ofshipment (e.g.cir,fob)withspecial
emphasis onshipping andports. Thelatter work isoften coordinated withtheInternational Maritime
Organization, which concentrates ontechnical andsafety problems inshipping andports. Thetechnical
assistance focuses onadvice, management assistance andtraining withregard toeconomics and
management ofshipping, andshipping companies, including corporate planning andfleetoperation.
Itprovides advice onfreight rates andconference practices, ontheimplementation ofconventions
negotiated under UNCTAD, particularly theConvention onaCode ofConduct forLiner Conferences;
andonmaritime administration andmaritime law. With regard toports, UNCTAD 'sassistance has
concentrated ontheeconomic andcommercial aspects. Thisincludes portoperations, administration
andorganization, including legislation andregulations, financial management, costcontrol and
information systems.
25. Finally, UNCTAD hasdeveloped andisinstalling atransport management toolcalled the
Advance Cargo Information System, orACIS. Theobjective istocounter thehighcostoftransportation
resulting from extended door-to-door transit times. ACIS isasetofcomputer applications designed
toproduce management information toaddress multimodal cargo transit andtransport problems. ACIS
hasfourcomponents, eachtracking cargo onamode orinterface: port, road, railandlake. They
inturnhavemain modules performing different, butinter-related functions, especially withregard
tostatistics andperformance indicators. ACIS provides improved information tohelpcontrol the
operationsofindividualtransportoperatorsandfacilitaterationalcorporateplanning.Itisalsoadatabase
facility available toparties registered ashaving aninterest inaconsignment anditstransportation,
providing them withthelatest reported location andstatus ofgoods andtransport equipment. Asa
longtermrecordoftransportmovementdata,itpermitsgovernmentsandinstitutionstoanalyzenational,
sub-regional andregional problems andinvestigate alternative investment opportunities inthetransport
sector.G/C/W/80
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III. World Customs Organization (WCO)
Background
26. TheWorld Customs Organization wasfounded in1953 astheCustoms Cooperation Council
(CCC). Established originally by13European countries, itsmembership hasexpanded to142members.
Allaspects oftheWCO ’swork relate closely toquestions oftrade facilitation. WCO ’smission is
toenhance theefficiency ofcustoms administrations intheareas ofcompliance withtraderegulations,
protection ofsociety andrevenue collection. WCO 'smain activities include:
- examination ofthetechnical aspects ofcustoms systems, aswellastherelated economic factors,
andpromotion ofcommunication andco-operation among Members andwithotherinternational
organizations;
- fostering ofhuman resource development andofimprovements inthemanagement andworking
methods ofcustoms administrations andthesharing ofbestpractices;
- preparation ofdraftconventions andother legalinstruments fortheharmonization anduniform
application ofsimplified andeffective customs systems andprocedures governing thecross-
border movement ofcommodities;
- making recommendations toensure theuniform interpretation andapplication ofconventions;
- making recommendations forthesettlement ofdisputes concerning theinterpretation or
application oftheconventions;
- furnishing interested governments withinformation oradvice oncustoms matters;
- promoting co-operation between customs administrations andbetween customs administration
andthetrading community toimprove communication andfacilitation.
27. While notalltheaspects oftheWCO 'swork programme canbedepicted here, thevarious
legalinstruments established andmaintained under itsauspices areintroduced below. Duetothevast
amount ofmaterial, notallconventions canreceive detailed treatment. However, theKyoto Convention,
asthekeyconventioncoveringcustomsprocedures,andtheIstanbulConventionontemporaryadmission,
aredescribed inmore detail.
InternationalConventionontheSimplificationandHarmonizationofCustomsProcedures
(Kyoto Convention)
28. TheKyoto Convention, agreed inMay1973, consists oftwoparts. Thefirstiscomprised
of19Articles setting outthegeneral provisions essential fortheimplementation oftheinstrument.
Thesecond consists of31Annexes (26ofwhich haveentered intoforce), eachdevoted toaspecific
customs procedure.5AnAnnex enters intoforce when fiveContracting Parties haveaccepted it.Each
Annex consists ofasetofdefinitions clarifying themain customs terms usedandtherulesgoverning
theimplementation oftheprocedure concerned. These provisions taketheformeither ofStandards ,
whose general application andincorporation innational legislation areconsidered essential for
harmonization andsimplification, ortheform ofRecommended Practices ,which areprovisions
recognized asconstituting progress towards theharmonization andsimplification ofcustoms procedures,
andwhose application isconsidered tobedesirable. Bothcategories ofprovisions maybeaccompanied
byNotes,intended toindicate ways inwhich therelevant Standard orRecommended Practice might
beapplied.
29. TheKyoto Convention isopenforaccession byanyState, andbyCustoms orEconomic Unions.
Presently, theKyoto Convention has59Contracting Parties. The31Annexes aretherealinstruments
5Theterm"Customs procedure" inthiscontext isnotusedinthenarrow sense ofthetreatment assigned toimported goods; itcovers
allprovisions relating toaparticular sphere ofCustoms activityG/C/W/80
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ofharmonization ofcustoms procedures, since theycontain theprinciples intended tobeincorporated
innational legislation. Atthetimeofaccession totheConvention, aState hastoaccept atleastone
Annex. Subsequently, eachoftheremaining Annexes canbeaccepted individually. Forthepurposes
oftherights andobligations ofaContracting Party eachoftheAnnexes ithasaccepted together with
thebody oftheConvention constitutes asingle legal instrument. Countries mayselect Annexes if
theywanttolimittheirobligations tothose particular sections oftheirlegislation which theywishto
modernize ortoalign withinternational practice.
30. Contracting Parties which arenotyetinaposition toimplement aparticular provision ofan
Annex canenter areservation inrespect ofthatprovision, indicating thedifferences between the
provisions oftheirnational legislation andthose oftheStandard orRecommended Practice concerned.
Disputes regarding theinterpretation orapplication shallbesettled through negotiations. Anyparty
may refer adispute tothePermanent Technical Committee oftheWCO which willmake
recommendations onthesettlement ofthedispute.
31. TheAnnexes totheKyoto Convention, Athrough K,arelisted below. More detail iscontained
inAnnex IIIofthisreport.
Annex A: Formalities Prior totheLodgement oftheGoods Declaration
Annex B: Clearance ofGoods forHome Use
Annex C: Clearance ofGoods atExportation
Annex D: Origin ofGoods
Annex E: Conditional Release Procedures andProcessing Traffic
Annex F: Special Customs Procedures
Annex G: Relations Between Persons Engaged inInternational Trade andtheCustoms
Administrations
Annex H: Disputes andOffenses
Annex J: Customs Applications ofComputers
Current revision oftheKyoto Convention
32. AWCO Working Group started torevise theKyoto Convention in1995; thetarget for
completion is1999. Therevision hasbecome necessary duetotheradical changes intrade, transport
andadministrative techniques, andtheviewthattheConvention hasnotsignificantly contributed to
theharmonization andsimplification ofcustoms procedures worldwide. Onereason forthisfailure
isthesmall number ofcontracting parties totheindividual annexes. Inaddition, these parties have
made alarge number ofreservations withregard tosome important annexes, andfewparties have
committed tostandards. Therevised Convention willinclude modernizing provisions forelectronic
commerce, riskmanagement, automation andaudit-based controls andwillhavenewimplementation
guidelines which should facilitate adoption ofthemodernized procedures. Therevision process will
examine howtomake theprovisions more binding oncustoms administrations thanunder thecurrent
system.
33. Thestructure oftheConvention willalsoberevised tocontain a“general ”Annex andseveral
specific Annexes. Thegeneral Annex willbecome anintegral partoftheConvention, andcontain
standardsbindingonallContractingPartiesofthenewConvention.Reservationsagainstthesestandards
cannotbeentered. Thegeneral Annex willcomprise several chapters, eachaddressing themain
principles common toallcustoms procedures. Currently, tendifferent chapters areenvisaged inthe
general annex: General Introduction; Definitions; Clearance Formalities; Customs Control; Application
ofInformation Technology; Security; Repayment andRemission ofDuties andTaxes; Appeals in
Customs Matters; Relationship between Customs andThird Parties; Information, Decisions andRulings
supplied byCustoms.G/C/W/80
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34. Inorder toreduce thenumber ofspecific annexes, theWorking Group proposes tocombine
elements oftheoldKyoto Convention Annexes intosingle Annexes ofthenewConvention. Drafting
work onthevertical annexes iscurrently being carried outbyindividual countries, groups ofcountries
ortheWCO Secretariat. Aquestion tobedecided ishowmany specific annexes havetobeaccepted
asaminimum byeachContracting Party. Proposals range from allannexes toonlyone. Another
important decision needs tobetaken regarding reservations. Thepresent reservation system hasresulted
inalarge number ofreservations, without visible progress toward implementation ofthestandards
setforthintheConvention.TheWorkingPartyisconsideringallowingnoreservationsagainststandards
throughout theconvention. TheuseofRecommended Practices willbemaintained onlyinthespecific
Annexes tothenewconvention.
35. Recognizing thatmany countries willnotbeabletocommit toanumber ofstandards right
away, theWorking Party proposes a“dynamic ”Convention which incorporates bestcustoms practices.
Therefore, some standards willbedesigned as"transitional standards" which, overtime, would be
upgraded to“standards ”bytheManagement Committee oftheConvention. ThenewArticle 12bis
oftheConvention envisages timeperiods ofdifferent length fortheimplementation of“standards ”,
“transitional standards ”,and“recommended practices ”.Where these timeframes areinsufficient for
individual administrations, theManagement Committee mayextend theimplementation period upon
request.
36. Also, eachannex willbesupplemented byextensive implementation guidelines which give
examples andoptions ofthebestpractices andwhich canbeupdated bytheManagement Committee
oftheConvention. Todevelop aprogressively more binding convention, ithasbeenproposed to
transform appropriate guidelines intostandards overtime. Thetransitional arrangements from the
original convention totherevised convention hasyettobeconsidered indetail.
Customs Convention onTemporary Admission (Istanbul Convention)
37. TheIstanbul Convention, which entered intoforce on27November 1993, combines inone
legalinstrumentallexistingagreementscoveringtemporaryadmissionofgoodsintoonestateorcustoms
union fromanother, andcreates aframework foraccommodating future requirements. TheConvention
alsoprovides forthecontinuing useoftheATA carnet (carnet depassage endouane pourl’admission
temporaire)fortemporaryadmissionandbroadensitsapplication.Itcurrentlyhas12contractingparties,
andanother 21signatories subject toratification. Itisopenforaccession byanystateandcustoms
oreconomic unions. Since itisexpected thatforsome timenotallthose implementing theATA and
CPD(carnetdepassageendouane)carnetschemewillbeaContractingPartytotheIstanbulConvention,
theWCO Council adopted aRecommendation inviting Contracting Parties toaccept ATA andCPD
carnet regardless ofwhether theyareissued under theIstanbul Convention orother legalinstruments.
38. Thebody oftheConvention consists of34Articles representing themain principles and
provisions essential fortheuniform implementation oftheinstrument, suchasscope, administration,
accession andamendment procedures. Themain provisions foresee thateachContracting Party may
require presentation ofadocument andsecurity fortemporary admission; security shallnotexceed
theamount ofimport duties andtaxes from which thegoods areconditionally relieved. General
minimum periods forre-exportation ofsixortwelve months havebeenspecified annexes.
39. TheConvention has13Annexes, ofwhich Annex A(concerning temporary admission papers,
ATA andCPD carnets) aswellasatleastoneother Annex havetobeaccepted byeachContracting
Party:
Annex A: concerning temporary admission papers (ATA carnets andCPD carnets)
Annex B.1: concerning goods fordisplay oruseatexhibitions, fairs, meetings orsimilar
eventsG/C/W/80
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Annex B.2: concerning professional equipment
Annex B.3: concerning containers, pallets, packings, samples andother goods imported
inconnection withacommercial operation
Annex B.4: concerning goods imported inconnection withamanufacturing operation
Annex B.5: concerning goods imported foreducational, scientific orcultural purposes
Annex B.6: concerning travellers 'personal effects andgoods imported forsports purposes
Annex B.7: concerning tourist publicity material
Annex B.8: concerning goods imported asfrontier traffic
Annex B.9: concerning goods imported forhumanitarian purposes
Annex C: concerning means oftransport
Annex D: concerning animals
Annex E: concerning goods imported withpartial relief from import duties andtaxes.
Todate, onlyAnnexes A,B.1., B.2,B.5andB.6.haveentered intoforce. Theother Annexes have
notyetreached theminimum number offivesignatories. Boththeprovisions ofthebody andthe
Annexes areaccompanied byexplanatory commentaries, which aredesigned tofacilitate implementation
oftheprovisions. More detailed information ontheannexes oftheIstanbul Convention canbefound
inAnnex IVofthisdocument.
40.Other instruments dealing exclusively ormainly withtemporary admission which arecontained
intherelevant annexes totheIstanbul Convention willbeterminated andreplaced forthose Contracting
Parties whohaveaccepted these annexes.
InternationalConventionontheHarmonizedCommodityDescriptionandCodingSystem
41. TheHarmonized Commodity Description andCoding System (Harmonized System) isan
international product nomenclature inforce since 1January 1988. Itsmainapplication isforcustoms
purposes suchasclassification andvaluation, butalsoforthecollection oftrade statistics, rules of
origin andforallkinds oftransactions ininternational trade (transport, insurance etc.) TheWTO
schedules ofalmost allMembers arebased ontheHarmonized System, which means thatmore than
95percentofworld trade iscovered bytheHarmonized System. TheHarmonized System groups
product items in96chapters, 1,241 headings andmore than5,000 sub-headings. Itprovides alegal
andlogical structure fortariff classification. Inorder tokeeptheHarmonized System uptodateand
totakeintoaccountchangesintechnologyandthedevelopmentofnewproducts,theConventionprovides
forperiodic amendments. Tworevisions havetaken place(1992 and1996) andathirdsetofamendments
istobeintroduced in2002.
International Convention onMutual Administrative Assistance forthePrevention,
Investigation andRepression ofCustoms Offenses (Nairobi Convention)
42. Inthefaceofincreasingly widespread customs offenses concerning allcountries, theWCO
Council in1974 feltthenecessity togobeyond thedevelopment andpromotion ofbilateral and
multilateral agreements, which wereuntilthenthestandard instruments forcustoms cooperation. The
Nairobi Convention wasdrawn upbetween 1974 and1977 tocombat customs fraud. Itconsists of
abody and11Annexes, oneofwhich hastobeaccepted atminimum byeachContracting Party.
Acceptancewithreservationsisnotpermitted(Article18).Asabasicprinciple,“customsadministrations
shallafford eachothermutual assistance withaviewtopreventing, investigating, andrepressing customs
offence ”.TheConvention isbased ontheconcept ofreciprocity: aContracting Party hasanobligation
torender assistance toanother Contracting Party onlyinsofarasbothhaveaccepted thesameAnnex.
TheNairobi Convention hascurrently 34Contracting Parties. All11Annexes areinforce(each Annex
enters intoforce afteracceptance byatleasttwoContracting Parties) andarelisted inAnnex VofG/C/W/80
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thisdocument. TheConvention isadministered bytheWCO Council withassistance from the
Enforcement Committee.
43. In1996, theWCO updated its1967 “Model Bilateral Agreement onMutual Assistance for
theProperApplicationofCustomsLawandforthePrevention,InvestigationandCombattingofCustoms
Offenses ”.Themodel agreement laysdown andexplains anumber ofprovisions thatshould be
considered when drawing upabilateral agreement.
Other Customs Conventions administered bytheWCO
44. Thefollowing Customs Conventions, details ofwhich areinAnnex VI6,were designed to
solve certain specific customs problems:
- onthetemporary importation ofpacking
- onthetemporary importation ofprofessional equipment
- concerning customs facilities fortheimportation ofgoods fordisplay oruseatexhibitions,
fairs, meetings orsimilar events
- concerning welfare material forseafarers
- onthetemporary importation ofscientific equipment
- ontemporary importation ofpedagogic material
- ontheATA carnet orthetemporary admission ofgoods (ATA Convention)
- ontheinternational transit ofgoods (ITIConvention)
- onContainers, 19727
Other instruments andprogrammes
45. TheWCO hasdrawn upRecommendations which donothaveabinding character. They are
intended astoolsforimprovement ofcustoms techniques bynational customs administrations and“they
aredesigned tobeaccepted byasmany States aspossible andcover facilities onwhich alargemeasure
ofagreement already exists andlaydown precisely thescope ofanyfacilities granted. ”WCO Members
indicate theiracceptance ofarecommendation, andhave, incertain instances, accepted them with
reservations. Recommendations havebeenissued infiveareas, aslaidoutinAnnex VII.
46. International Customs Norms ,developed bytheWCO, aredesigned toguide customs
administrations inaddressing certain specific customs issues. Each norm deals withaspecific point
ofcustoms technique andsetsoutthefundamental principles tobeincorporated incustoms legislation
orregulation. These norms willbereviewed andincorporated asappropriate intheguidelines ofthe
revised Kyoto Convention. Foralistoftheexisting norms, refertoAnnex VIII.
47. TheWCO hasdeveloped Express Consignment Guidelines toprovide atoolforcustoms
administrations togrant fastclearance while maintaining customs control withregard toexpress
consignments. Guidelines aregiven onthescope ofdocumentation necessary forclearance, onvaluation,
onconditional andunconditional clearance, andonthedifferentiation between high- andlow-value
consignments. Theguidelines havenolegalcharacter orbinding force. However, therevised Kyoto
Convention isforeseen toinclude theprinciples oftheExpress Consignment Guidelines.
6Other United Nations customs-related conventions arelisted inAnnex XVofthisdocument.
7TheCustoms Convention onContainers, 1972 isaUNECE Convention administered withtechnical input from theWCOG/C/W/80
Page15
48. TheWCO hasissued three Resolutions .They concern theabolition ofthepassenger manifest
inrespect ofpassengers arriving ordeparting byair;customs facilities fortourists; andabolition of
control ofmotor vehicle insurance atfrontiers.
49. TheArusha Declaration (Declaration oftheCustoms Cooperation Council concerning integrity
incustoms, 1993) assigns toppriority tothecombat ofcorruption inside customs administrations. Key
factors ofevery national integrity programme would beaclearandprecise customs legislation; simple
andconsistentproceduresbasedontheKyotoConvention;automation;theestablishmentofmechanisms
forinternal control anddiversification oftasks; anopenrelationship between customs andcustoms
brokers, andsufficient remuneration ofcustoms officers.
50. TheCustoms Reform andModernization Programme isatechnical assistance programme that
addresses acustoms administration asawhole anddoesnotfocus onthedevelopment ofparticular
capabilities. Programmes inninecountries havebeencompleted orarebeing conducted presently.
Theprogramme consists offourstages:
1) entry stage:forthisinitial stage a“customs orientation package forpolicy makers, ”
which explains theroleofmodern customs between revenue collection andcontrol ontheone
handandfacilitation ofcommerce ontheother;
2) diagnostic study andplanning stage:thisstageserves todevelop acapacity incustoms
managers toperform adiagnosis oftheircustoms administration anditsenvironment;
3) implementation stage: falling mainly onthecustoms administration concerned, the
WCO Secretariat assists witharange ofsupport programmes onlegislation, customs systems,
processes, compliance, management techniques, human resource development, integrity, and/or
automation.
4) evaluation stage:measurable changes insystems, policies, structures andprocedures
inthecustoms administration arerecorded andevaluated.
IV. United Nations Commission onInternational Trade Law (UNCITRAL)
51. TheUnited Nations Commission onInternational Trade Law(UNCITRAL) wasestablished
bytheUNGeneral Assembly in1966. UNCITRAL ’sobjective istohelpreduce orremove obstacles
totheflowoftradecaused bydisparities innational lawsgoverning international tradethrough furthering
theprogressive harmonization andunification ofthelawofinternational trade. TheCommission has
since become animportant body oftheUnited Nations system inthefieldofinternational trade law.
Itworks mainly through thedrafting ofUNconventions andother legalinstruments.
52. TheSecretariat ofUNCITRAL istheInternational Trade LawBranch oftheUnited Nations
Office ofLegal Affairs, located inVienna. Intheareas ofwork relating totrade facilitation the
Commission isdealing withtheinternational saleofgoods andrelated transactions; international
transport ofgoods; international commercial arbitration andconciliation; international payments;
andelectronic commerce. Themajor results ofthatwork arepresented inAnnex IX.
V. International Maritime Organization (IMO)
53. TheInternationalMaritimeOrganization,establishedbyaConventionadoptedundertheauspices
oftheUnited Nations inGeneva on17March 1948, metforthefirsttimeinJanuary 1959. Ithas
currently 155Member States. TheIMOisaspecialized agency oftheUnited Nations responsible for
improving thesafety ofinternational shipping, facilitation ofinternational maritime traffic, preventionG/C/W/80
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ofmarine pollution from ships, andlegalmatters, including liability andcompensation issues. The
adoption ofmaritime legislation isstillIMO'smost important concern. Around 40conventions and
protocols havebeenadopted bytheOrganization andmost ofthem havebeenamended onseveral
occasions toensure thattheyarekeptuptodatewithchanges taking place inworld shipping. Since
1960, theIMO hasbeeninvolved inthefacilitation ofinternational maritime traffic, loadlinesand
thecarriage ofdangerous goods.
Convention onFacilitation ofInternational Maritime Traffic (FAL)
54. TheConvention onFacilitation ofInternational Maritime Traffic wasadopted bytheIMOin
1965. Ithascurrently 79Contracting Parties. Itsmain objectives aretoprevent unnecessary delays
toships, passengers andcargoes inmaritime traffic, toaidcooperation between governments, and
tosecure thehighest practicable degree ofuniformity informalities, documentary requirements and
other procedures. TheConvention hasbeenamended several times. More details ontheconvention
anditsamendments arepresented inAnnex X.
55. Other relevant IMO Conventions related totrade facilitation arethefollowing:
- International Convention onLoad Lines (LL), 1966
- Special Trade Passenger Ships Agreement (STP), 1971
- International Regulations forPreventing Collisions atSea(COLREG), 1972
- International Convention forSafeContainers (CSC), 1972
- Athens Convention relating totheCarriage ofPassengers andtheirLuggage bySea(PAL),
1974
- Convention onLimitation ofLiability forMaritime Claims (LLMC), 1976
- International Convention onTonnage Measurement ofShips (TONNAGE), 1969
VI. International Civil Aviation Organization (ICAO)
56. TheInternational Civil Aviation Organization (ICAO) deals with thesafety ofaviation
internationally. ICAO establishes Standards andRecommended Practices which aimatassuring that
allfacets ofaviation areconducted safely andinauniform manner byallparticipating States. One
ofICAO ’skeyobjectives isthedevelopment ofsafe,regular, efficient andeconomical airtransport.
Inthiscontext, theterm“facilitation ”refers generally toprocedures aimed attheimprovement of
passenger andcargo flows through airports. Themain instrument ICAO isadministering isthe
Convention onInternational CivilAviation, 1944(asamended), designed todevelop international civil
aviation inasafeandorderly manner forefficient andeconomical operation ofinternational transport.
57. Annex 9oftheConvention (10th Edition asofMay1997) deals withthefacilitation ofair
traffic. Chapter 4oftheannex, entitled “Entry andDeparture ofCargo andother Articles, ”includes
standards andrecommended practices designed tofacilitate international movement ofgoods byair.
ICAO develops andupdates thestandards andrecommended practices toreflect technological progress
aswellaschanges inpolitical andcommercial practices, mostrecently in1996, toenter intoforce
on31August 1997. Theamended standards andrecommended practices havethefollowing objectives:
- aircargo transport shallnotbetreated lessfavourable ascargo transported byother means;
- encouragement ofbusiness, customs, andairport administrations toprovide facilities based
onUN/EDIFACT thatallow forthesubmission ofpaperless cargo manifests; and
- thegranting offacilities thatallow foroff-airport customs clearance, immediate release of
shipments under bond, pre-arrival entry processing, clearance ofexpress consignments, part-
shipment releases, convergence ofcontrols tooneagency clearance.G/C/W/80
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ICAO isactively cooperating withtheWorld Customs Organization toharmonize theprovisions
foraircargo facilitation withtheobjectives oftherevision oftheKyoto Convention.
VII. Economic andSocial Commission forAsiaandthePacific (ESCAP)
58. ESCAP hasbeenworking inavariety ofareas topromote trade facilitation measures inthe
AsiaandthePacific region. Recognizing theimportance ofmicro-level efficiencies topromote inter-
andintra-regional trade, ESCAP hasbeenactively promoting theuseofelectronic commerce andEDI
ininternational tradeinthisregion. Inthisactivity, closecollaboration hasbeenmaintained withother
regional andinternational organizations, namely UN/ECE, theAsia EDIFACT Board andEAN
International.8AnESCAP Network onTrade Facilitation wassetupwithaviewtobringing together
thenational tradefacilitation organs andnational focalpoints established intheAsian andPacific regions
andtocontribute tothedevelopment oftradefacilitation issues. Itisamechanism bywhich theinterests
ofESCAP Member andAssociate Member countries canbereflected indeciding theshape ofnew
international trade information handling system andthedevelopment oftrade facilitation techniques.
Itmeets onceayeartomonitor activities thatrespond totherecommendations emanating from the
meetings.
59. Also withtheECE, ESCAP hasdeveloped twotraining modules, "EDI -AManagement
Overview," and"EDI andUN/EDIFACT -ATechnical Overview" which havebeenincluded inECE
andUNCTAD training activities. Further, ESCAP hasaccess totheECETrade Facilitation Information
Exchange (TraFIX) ontheWorld Wide Web. TraFIX facilitates theintegration ofthework doneon
procedures anddocumentation tosimplify international tradewiththevastarrayofelectronic commerce
technologies andservices. ESCAP isalsoworking withtheECEontheInternational Trade Transaction
Modelling.
60. ESCAP hasbeenactive inconducting aseries ofnational levelworkshops ontradefacilitation
under aproject called "Assistance inmanpower development inthefieldoftradefacilitation". ESCAP
hasalsobeenworking withtheECEintransitional economies through national workshops ontheuse
andapplication ofEDIininternational trade. Trade facilitation issues havealsofigured prominently
inanother program withtheECEforthecountries ofCentral Asia. Finally, ESCAP hasbeenproviding
technical assistance through theregional advisory services torespond efficiently tothespecific needs
oftheMember andAssociate Member countries toenhance micro-level efficiencies andthebenefits
ofinternational trade. Many Member andAssociate Member countries have been undertaking
programmes andprojects toincrease tradeefficiency withextensive assistance oftheESCAP regional
advisory services ontrade facilitation. These include many least-developed, land-locked andisland
developing countries anddisadvantaged economies intransition.
VIII. Organisation forEconomic Cooperation andDevelopment (OECD)
61. TheOECD isnotengaged intrade facilitation, perse,although some ofitsactivities could
contribute totradefacilitation objectives. Afewstudies havebeenprepared onregulatory reform and
improving theefficiency ofpolicies thataffect market entry. With respect toelectronic information
exchange andcommerce, theWorking Party onTelecommunications andInformation Services Policy
isassessing theeconomic effects ofchanges incommunications policies withaparticular focus on
international trade-related issues. Studies focus oninterconnection andequal access tonetworks by
8EAN International began asthenon-profit international organization. theEuropean Article Numbering Association, in1977. In1992,
theorganisation opened toother counties (currently 79)andbecame EAN International. Itsaimisthedevelopment ofaglobal, multi-sectorial
standard fortheidentification ofproducts, services andlocations through article numbering andbarcoding, withtheobjective ofproviding
acommon language forinternational trade. EAN International cooperates closely withitsNorth American counterpart, theUniform Code
Council (UCC) indeveloping standards andachieving technical compatibility inavariety ofactivities.G/C/W/80
Page18
competing operators; pricing strategies andcompetition inmobile telephony; policy frameworks and
pricing forinformation infrastructures; andemployment changes inthetelecommunications industry.
TheWorking Party isalsoexamining theInternet withregard topricing services aswellasitspotential
impact asanalternative toconventional telephone networks.
62. TheCommittee forInformation, Computer andCommunications Policy hasbeenworking since
1993 onpolicy aspects related tocomputer technology forinteractive communications. Thiswork
wasgiven added impetus bytheG7Ministerial Conference ontheInformation Society inFebruary
1995which focused onthetheme, Global Information Infrastructure -Global Information Society (GII-
GIS). InMay1997, theCommittee forInformation, Computer andCommunications Policy agreed
onastatement ofpolicy recommendations addressed togovernments andinternational organisations
suggesting policy directions toenable theprivate sector totaketheleadinthedevelopment and
implementation oftheGII-GIS.
IX. TheInternational Trade Centre (ITC)
63. TheITCprovidestechnicalassistanceonthepracticalapplicationsofstandardsand/orguidelines
related totrade facilitation developed andmaintained bytheUN/ECE inconjunction withtheISO.
ITCworks withtheprivate andpublic sectors primarily through trade support/promotion institutions
withtheprinciple aimofassisting small andmedium sized enterprises toenterintointernational trade
transactions.
X. TheWorld Bank
64. TheWorld Bankfinances technical assistance projects andactivities related totradefacilitation
inawidevariety ofregions which theBank serves. Oneproject related tocustoms reform wascarried
outincooperation withtheWorld Customs Organization. Inaddition, theInternational Economics
Department hascompleted threestudies onthecosts, benefits, andbestpractices inapplying information
technology tofurther trade facilitation.
XI. TheInternational Organization forStandardization (ISO)
65. Withamandatetodevelopandharmonizeglobalstandardstoreduceinefficienciesininternational
commercial transaction, theactivities oftheInternational Organization forStandardization (ISO) can
generally beviewed asfurthering theobjectives oftradefacilitation inthevariety ofeconomic sectors
affected bythese standards. Activities specifically focused ontrade facilitation involve working with
theUN/ECE ondeveloping standards andadopting certain UN/ECE standards asISOstandards and
disseminating theirwide use. Forexample, ISOadopted UN/ECE Recommendation No.3which
contains country codes, asISO3166. Italsoworked withtheUN/ECE onISO4217 which contains
analphabetic codefortherepresentation ofcurrencies. Inaddition, ISOisworking withtheUN/ECE
andtheInternationalElectrotechnicalCommissiononaninternationallyagreedBasicSemanticRepository
(BSR). Thiswillprovide aninternationally agreed database forusebydevelopers ofsoft-ware for
awiderange ofapplications including EDI.
B. INTERNATIONAL NON-GOVERNMENTAL ORGANIZATIONS
I. International AirTransport Association (IATA)
66. TheInternational AirTransport Association (IATA) represents andserves airline industries
from approximately 135countries andterritories; Itsmembers carry themajority oftheworld 's
scheduled international anddomestic airtraffic. IATA 'swork embraces virtually every aspect ofthe
airtransport industry including technical, operational, legalandsecurity matters aswellasfacilitationG/C/W/80
Page19
(streamlining procedures atairports), statistics andindustry finance. Itsobjectives aretopromote safe,
reliable andquick airservices forpassenger traffic andcargo transport.
67. Facilitation, defined asefforts toreduce government regulations andprocedures which impede
movement ofpersons andgoods overinternational boundaries isanareaofprime concern formost
ofIATA’sMembers.Primarilyfocusedontheactionsofcustoms,immigrationandagricultureinspection
staffs atports ofentry around theworld, themostimportant aspects ofIATA ’sefforts occur through
contact athigher government levels. Itactively promotes theadoption ofinternational standards for
aircargotransportationamongitsMembers,andrepresentsMembers’positionswithregardtofacilitation
issues toairport authorities andcustoms administrations.
68. Intheareaofcustoms andtrade co-operation, IATA participates inthejointefforts ofthe
International Chamber ofCommerce andtheWCO todevelop a“Customs Model ”.Theintent of
thiswork istoreduce barriers byfirstidentifying andthenbuilding upon thebestpractices existing
today. Theresulting model could ultimately serve asapractical guide forcustoms organisations
world-wide. IATA cooperates withUNCTAD andanumber ofrelevant non-governmental transport
organisations.
II. International Chamber ofCommerce (ICC)
69. TheICCisafocalpointfortradefacilitation activities among non-governmental organizations.
Itsmembership extends toseveral thousand enterprises inmorethan130countries worldwide. Itgathers,
coordinates, andrepresents business views onallissues relating totrade andcustoms procedures,
documentary requirements, regulatory reform, transport, electronic commerce andother subjects that
influence thefreeflowofgoods across borders. In1996, theICCidentified customs modernization
andreform asakeyconcern ofthefuture anddeveloped theICCInternational Customs Guidelines ,
which form acomprehensive setofpractices forthose engaged ininternational trade andtransport.
The60Guidelines draw heavily ontheKyoto Convention andontheColumbus Declaration (Foran
overview oftheguidelines, please refertoAnnex XI).Since 1996, theICChasaformal Cooperation
Agreement withtheWCO. Italsoparticipates intheUN/ECE Working Party onTrade Facilitation
(WP.4) andpromotes theECE Recommendations among itsmembers.
70. TheICC’sworkisgenerallycarriedoutbyseveralCommissionsandCommittees,eachattending
tooneorseveral issues related totrade, business, investment ortradefacilitation. On1January 1997,
theICCCommittee onTrade Regulation wasrestructured andrenamed astheCommittee onCustoms
andTrade Regulation todenote theICC’snewemphasis oncustoms reform. Elements ofthis
Committee ’s1997 work programme include:
- promotionandawareness-buildingoftheICCInternationalCustomsGuidelinesinotherbusiness
organisations andgovernments;
- establishment ofadialogue oncustoms procedures withtheWTO asafollow-up onthe
Singapore decision onTrade Facilitation;
- increased business-customs cooperation under theauspices oftheICC/WCO Cooperation
Agreement topromote efficiency incustoms control andfacilitation;
- development ofarange ofpractical usesfortheICCInternational Customs Guidelines asa
basis forassessing customs efficiency andmonitoring progress inimplementation.
71. Other Commissions withaclose linktotrade facilitation aretheCommission onInternational
CommercialPracticeswhichmakesrecommendationsonevolutionofcommerciallegalpracticerequiredG/C/W/80
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bymodernisation oftransport techniques andinternational agreements. TheTransport Commissions
provide foraforresolution ofcommon problems involving safety andinternational regulation. The
StandingCommitteeonExtortionandBriberypromotestheICC’sRulesofConducttoCombatExtortion
andBribery inInternational Business transaction byencouraging cooperation between business and
governments worldwide. Finally, theCommission onBanking Techniques andPractices setsself-
regulatory standards forparties involved intrade finance.
72. TheICCpromotes harmonized business practices among itsmembers tosmooth cross border
trade. Ithasdeveloped several business toolsforusebythetrade community, these arepresented in
Annex XII.
III. International Chamber ofShipping (ICS)
73. TheInternationalChamberofShipping(ICS)isthetradeassociationfortheinternationalshipping
industry, dealing withthewhole range ofmatters affecting shipping operations, safety andpollution
prevention, maritime lawandanumber oftrade issues. Ithas37members (predominately national
shipowner associations) in34countries, representing more thanhalfoftheworld ’stonnage. Itworks
onharmonization andsimplification ofcommercial trade practices related tomaritime transport and
hasdeveloped thefollowing instruments:
-1972 Recommendations ontheFormat ofBillsofLading
-1978 Recommendations ontheformat ofCombined Transport BillsofLading
-1969 Recommendations onthelayout andcontent ofaship’smanifest
TheUNaligned ICSStandard BillofLading isusedworldwide asamodel forthedesign ofB/Lforms.
ICShasparticipatedinthedevelopmentof,andpromotes,amongothers,theFALConvention,UN/ECE
TradeFacilitationRecommendationsandEDIFACTStandards,theWCOMemorandumofUnderstanding
Programme onthesuppression ofdrugtrafficking andtheKyoto Convention. Ithasconsultative status
withIMO, WCO, andICC.
IV. International Road Transport Union (IRU)
74. Road transport isthemostimportant formofalllandtransport categories interms oftonnage,
mileage, passengers carried, andvalue ofgoods transported. Theobjective oftheIRUistopromote
national andinternational roadtransport andtosafeguard theinterests ofprofessional roadtransport
andtransport.TheIRUistheinternationalforumandspokesmanfornationalroadtransportorganisations
from 64countries. Itistheinternational guarantor oftheTIRsystem (Customs Convention onthe
International Transport ofGoods Under Cover ofTIRCarnets ),established in1959 (renewed 1975)
undertheauspicesoftheUnitedNationsEconomicCommissionforEurope.Incooperationwithnational
organizations, itissues more than600,000 TIRcarnets peryear. TheIRUproduces theannual “World
Transport Data Report" andatwice-yearly "Selection ofInternational Road Transport Documentation".
Foradditional information ontheIRU, refer toAnnex XIII.
V. International Federation ofFreight Forwarders Associations (FIATA)
75. FIATA represents theinterests offreight forwarding service industries from 145countries.
Itsmembers arenational freight forwarders associations. FIATA participates actively inthedevelopment
ofUN/EDIFACT standards andguidelines atUNECE, therevision oftheKyoto Convention atthe
WCO, andthedrafting ofanew Warsaw Convention attheICAO. Italsocooperates actively with
other intergovernmental organizations such asUNCTAD andIMO ontheimprovement ofthequality
forwardingservicesthroughharmonizationoftransportdocumentsanddevelopmentofstandardconditionsG/C/W/80
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oftrading, etc.Since itsfoundation in1926, FIATA hasdeveloped anumber oftrade facilitation
documents. Fordetails onthese documents andother FIATA activities, consult Annex XIV.
C. REGIONAL ORGANIZATIONS AND FREE TRADE AREAS ORCUSTOMS UNION9
76. ThefollowingparagraphsdiscussthoseregionalinitiativesandactivitiesforwhichtheSecretariat
wasabletoobtain information inthetime available; thepresent submission does notmean toexclude
thepossible existence ofother regional activities orinitiatives.
I. Asia-Pacific Economic Cooperation (APEC)
77. Amajor programme tosimplify andharmonize customs procedures intheAsia-Pacific region
waslaunched in1996 through theOsaka Action Agenda. Allwork iscoordinated bytheSub-Committee
onCustoms Procedures (SCCP) andindividual APEC Members. Collective actions tobetaken byall
APEC Members arehighlighted below:
- Adopting orabiding bytheprinciples oftheHarmonized Commodity Description andCoding
System (HS) by1996: currently, all18APEC economies areapplying theHSSystem, though
notallAPEC Members areyetsignatories totheHSConvention. Atechnical assistance
programme coordinated byJapan seeks torectify difficulties with theadoption ofthesystem
which have occurred infiveMembers.
- Simplification andharmonization ofcustoms procedures onthebasis oftheKyoto Convention
by1998: currently, eight Members aresignatories totheConvention, andanother sixhave
requested technical assistance towards itsimplementation. Duetotheongoing revision ofthe
Kyoto Convention, technical assistance iscurrently heldoffuntil thefuture Convention becomes
clearer; several APEC Members areactively engaged intherevision work.
- Alignment with WTO Agreements: adoption oftheWTO Agreement onImplementation of
Article VIIoftheGATT 1994 (Customs Valuation) andestablishment ofborder enforcement
measures forprotection ofintellectual property rights provided intheWTO Agreement onTrade
Related Aspects ofIntellectual Property Rights bytheyear2000 forthose Members whodelayed
application oftheAgreement.
- Automation ofcustoms clearance systems based onUN/EDIFACT, by1999; work towards
achievement ofthisobjective ispresently underway.
- Provision offacilities fortemporary admission ofgoods for-re-export through accession tothe
ATA Convention bytheyear 2000.
78. Another aspect ofthework programme relates toenhanced transparency ofcustoms laws and
procedures. This objective requires Members topublish information onadministrative guidelines,
procedures andrulings inaddition tocustoms laws andregulations by1998. Bytheyear 2000, APEC
economies have committed tointroducing clear appeal provisions andadvance tariff classification rulings
within each Member state. With regard tocustoms modernization, theSCCP isundertaking astudy
ontheharmonization oftrade data elements forcustoms processing ofcargo. APEC Members are
exploring thefeasibility ofintroducing ariskmanagement approach, andapplying modern electronic
commerce systems tofacilitate cargo clearance.
9Duetothemultitude ofregional agreements thatentertain efforts toharmonize andsimplify tradeprocedures, onlyafeworganizations
forwhich information wasavailable arecovered here.G/C/W/80
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II. European Union (EU)
79. The European Union hasprepared several “Customs Cooperation andMutual Assistance ”
Agreements with Canada, theRepublic ofKorea, andtheUnited States, setting outtheframework in
whichcooperationbetweencustomsadministrationswilloccur.Theagreementsprovideforestablishment
ofchannels ofcommunication between customs authorities tofacilitate thesecure andrapid exchange
ofinformation, aswell asthecoordination ofpositions concerning topics ofcommon interest thatare
discussed intheframework ofinternational organizations. TheAgreements callfortheestablishment
ofJoint Customs Committees. Association agreements withseveral EastEuropean States contain sections
onthealignment ofcustoms procedures with theprinciples oftheEUCustoms Code. Provisions to
align customs procedures exist alsoinAgreements with Russia, Morocco, Tunisia, Israel andTurkey.
Further, theJoint Declaration ofthe12th ASEAN-EU Ministerial Meeting calls fortheinitiation of
ASEAN-EU cooperation incustoms matters.
80. TheEUCustoms 2000 Programme isaninternal EUproject aimed atensuring thehomogeneous
application ofCommunity rules andcommon policy inorder toguarantee equivalent results with regard
toboth controls onandsimplification oftrade. Target datefortheimplementation oftheprogramme
istheendoftheyear2000. Features oftheprogramme include ajoint effort tocombat fraud andillicit
trafficking, computerization ofcustoms services, improvements inworking methods (risk-analysis, audit
techniques, trade-customs memoranda ofunderstanding, etc.). Joint teams ofcustoms experts are
monitoring sectors ofCommunity customs legislation anddrawing upreports identifying bestworking
methods.
III. North American Free Trade Agreement (NAFTA)
81. Chapter fiveoftheAgreement establishes theprocedures thatcustoms administrations from
eachparty must follow inadministering andenforcing theNAFTA rules oforigin regime. Inthiscontext,
uniformregulationsregardinginterpretation,application,andadministrationofrulesoforiginandcustoms
procedures were developed bytheparties. Atrilateral working group onrules oforigin meets atleast
four times ayear forthepurposes ofmonitoring theimplementation andadministration ofNAFTA ’s
drawback andmarking rules aswell astheprovisions ofchapters four andfive, andtheuniform
regulations established forapplying those chapters. ACustoms Subgroup, meets four times ayear to
address customs andtariff-related matters which areintheinterest oftheparties. Itistheforum that
deals with potential disagreement oftheparties ontheinterpretation andadministration ofthecommon
rules oforigin andother customs andtariff-related issues. A“North American Trade Automation
Prototype”(NATAP)forcargomovingamongtheNAFTApartnersiscurrentlyinthetestphase.NATAP
willutilize atrilaterally agreed-upon setofstandardized dataelements, conveyed inEDIFACT syntax.
NAFTApartnersareundertakinganexplorationofmethodsforsimplificationandpossibleharmonization
ofprocedures forexpress consignments.
D. OTHER ACTIVITIES AND INITIATIVES
82. Other activities andinitiatives, forwhich detailed information wasnotreadily available but
which have come totheattention oftheSecretariat, arenoted below.
83. Some regional free trade agreements orcustoms unions feature rules pertaining tothe
harmonization and/or simplification oftrade procedures orcooperation among theMembers 'customs
authorities. These include, inter alia,theAndean Group, theArab Common Market, theAssociation
ofSouth EastAsian Nations (ASEAN), theCaribbean Community (CARICOM), theCentral European
Free Trade Agreement (CEFTA), theCentral African Customs andEconomic Union (CACEU), the
Central American Common Market, theCommon Market forEastern andSouthern Africa (COMESA),
theEconomic Community ofWest African States (ECOWAS), theGulf Cooperation Council, theLatinG/C/W/80
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American Integration Association (LAIA), theSouthern Common Market (MERCOSUR), theSouth
Asian Association forRegional Cooperation (SAARC) Preferential Trading Agreement (SAPTA), and
theWest African Economic andMonetary Union (WAEMU).
84. Three further initiatives arenoted below.
- TheSummit oftheAmericas, held 1994 inMiami launched theideaofaFree Trade Area of
theAmericas (FTAA) by2005. Atthefollowing Ministerial Meetings inDenver, Colorado,
in1995, inCartagena, Colombia in1996, andinBelo Horizonte, Brazil in1997, work continued
inseveral Working Groups which hadbeen established toprepare fornegotiations nolater than
2005,amongthemaWorkingGroupon"CustomsProceduresandRulesofOrigin".Themandate
ofthisWorking Group includes thedevelopment ofacomprehensive inventory ofhemisphere
customs procedures andpublication ofaCustoms Procedures Manual forusebytheprivate
sector; thedevelopment ofrecommendations onpromoting electronic filing ofcustoms
information; and making recommendations onaspecific approach forhemisphere-wide
simplification ofcustoms procedures. InCartagena, itwasagreed thatimmediate action would
betaken onthese areas. InBelo Horizonte, Ministers directed their Vice-Ministers toapprove
therecommendations putforward inthese areas, termed "business facilitation measures".
- Atthe1996 Lyon Summit ,G-7leaders agreed to“initiate aneffort tostandardize andsimplify
customs procedures ”andinitiated work oncommon data elements forimports andexports,
common protocols forelectronic communications related toelectronic processing ofgoods,
andthepossible establishment ofaprototype system forelectronic processing.
- Atthe30th Quadrilateral Trade Minister Meeting inToronto (30April -2May 1997), itwas
agreed tointensify efforts tocomplete theWTO harmonization work programme onnon-
preferential rules oforigin, customs valuation andpreshipment inspection within theexisting
timeframes.
E. LIST OFWTO PROVISIONS (URUGUAY ROUND AGREEMENTS/GATT 1994)
RELATED TOTRADE FACILITATION
85. Thefollowing paragraphs provide ageneral explanation oftherelevant WTO provisions; no
interpretation oftheprovisions isintended.
Article V-Freedom ofTransit
86. Article Vestablishes theGATT definition of"traffic intransit". Itstates that"there shall be
freedom oftransit through theterritory ofeach Member fortraffic intransit toorfrom theterritory
ofother Members...". Further, itstates that"...except incases offailure tocomply with applicable
customs laws andregulations, such traffic coming from orgoing totheterritory ofother Members shall
notbesubject toanyunnecessary delays orrestrictions andshall beexempt from customs duties and
from alltransit duties orother charges imposed inrespect oftransit, except charges fortransportation
or...administrative expenses ...".Itestablishes Most-Favoured-Nation (MFN) treatment forsuch transit
with respect toallcharges, regulations andformalities (theInterpretative Note clarifies thatinrespect
oftransportation charges, thisprinciple refers tolikeproducts being transported onthesame route under
likeconditions).
Article VII-Valuation forCustoms Purposes
87. Article VIIlaysdown themain principles governing thevaluation ofimports forassessment
ofduties orother charges (notincluding internal taxes). Itestablishes thatthisshould bebased ontheG/C/W/80
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"actual value oftheimported merchandise, oroflikemerchandise, andshould notbebased onthevalue
ofmerchandise ofnational origin oronarbitrary orfictitious values". TheArticle defines "actual value".
Interpretation andapplication ofthisArticle hasbeen provided intheTokyo Round andUruguay Round
Agreements onImplementation ofArticle VIIofGATT 1994 (seebelow).
Article VIII-Fees andFormalities connected with Importation andExportation
88. Thebasic premise ofArticle VIII isthatallfeesandcharges (other than import andexport
duties andtaxes covered byArticle III)imposed onorinconnection with importation orexportation
"shall belimited inamount totheapproximate costofservices rendered andshall notrepresent anindirect
protection todomestic products orataxation ofimports orexports forfiscal purposes". Members
recognize thatthenumber anddiversity ofsuch fees, andtheincidence andcomplexity ofimport and
export formalities should bereduced. Further, documentation requirements should belessened and
simplified. Article VIII also provides that minor breaches ofcustoms regulations orprocedural
requirements shall notbesubject tosubstantial penalties.
Article IX-Marks ofOrigin
89. TheArticle establishes MFN treatment with respect tomarking requirements. Itemphasizes
thatthedifficulties andinconveniences tothecommerce andindustry ofexporting countries ofadopting
andenforcing laws relating tomarks oforigin should bereduced toaminimum. Whenever practicable,
required marks should bepermitted tobeaffixed atthetime ofimportation. Inaddition, Members
should cooperates toprevent theuseoftrade names insuch manner astomisrepresent thetrueorigin
ofaproduct, tothedetriment ofprotected distinctive regional orgeographical names ofproducts.
Article X-Publication andAdministration ofTrade Regulations
90. ThisArticle requires eachMember topromptly publish ofalllaws, regulations, judicial decisions
andadministrative rulings affecting imports andexports. Inaddition, "agreements affecting international
trade policy which areinforce" between twoMembers shall alsobepublished. With regard torates
ofduty orother charge onimports, publication shall precede enforcement ofamore restrictive measure.
EachMembershallfurthermaintainorinstitute"judicial,arbitraloradministrativetribunalsorprocedures
forthepurpose,interalia,ofthepromptreviewandcorrectionofadministrativeactionrelatingtocustoms
matters."
Agreement onImplementation ofArticle VIIoftheGATT 1994 (Customs Valuation Agreement)
91. TheCustoms Valuation Agreement contains provisions which putintoeffect theprinciples
contained inArticle VIIoftheGATT. Itestablishes the"transaction value" astheprice actually paid
orpayable oftheimported product astheprimary basis forcustoms value. Italsocontains 5other
methods tobeused whenever thecustoms valuation cannot bedetermined under thetransaction value.
Two ofthese methods deviate from thetransaction value, thedeductive method andthecomputed value.
TheAgreement alsocontains special anddifferential treatment provisions fordeveloping countries,
provision fortheestablishment ofaTechnical Group onCustoms Valuation intheWorld Customs
Organization, andnotification obligations.
Agreement onRules ofOrigin
92. TheAgreement onRules ofOrigin aims atharmonization ofnon-preferential rules oforigin
andensures thatsuch rules donotthemselves create unnecessary obstacles totrade. TheAgreement
setsoutawork programme fortheharmonization ofrules oforigin tobeundertaken, inconjunction
withtheWCO, andcompleted three years after theentry intoforce oftheWTO. Theunderlying principleG/C/W/80
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isthattheoriginating status ofagood should beeither thecountry where thegood hasbeen wholly
obtained or,when more than onecountry isconcerned initsproduction, thecountry where thelast
substantial transformation hasbeen carried out; rules oforigin should notbeused asinstruments of
trade policy; andtheyshould beobjective, predictable, coherent andbased onpositive standards. The
Agreement alsocalls fortheestablishment ofaTechnical Committee onRules ofOrigin intheWCO.
Agreement onImport Licensing Procedures
93. TheAgreement onImport Licensing Procedures recognizes thatimport licensing procedures
canhave acceptable uses, butalsothattheir inappropriate usemay impede theflow ofinternational
trade. Itestablishes disciplines ontheusers ofimport licensing systems toensure thattheprocedures
applied forgranting both "automatic" and"non-automatic" import licences donotinthemselves restrict
ordistort trade. Bybecoming Members oftheWTO, governments commit themselves tosimplifying
andbringing transparency totheir import licensing procedures andtoadministering them inaneutral
andnon-discriminatory manner. TheAgreement setsuptime-limits forthepublication ofinformation
concerning licensing procedures, notification totheCommittee andforprocessing oflicence applications.
Agreement onPreshipment Inspection
94. TheAgreement onPreshipment Inspection (PSI) laysoutaframework ofrules andobligations
forMembers using preshipment inspection (user Member) inorder togovern thepractices ofpreshipment
inspection entities. TheAgreement calls fortransparency andnon-discrimination intheconduct of
these activities andrequests userMembers toensure thatPSIentities useagreed orinternational standards,
thattheyprovide adequate protection forconfidential business information, avoid unreasonable delays
ininspection ofshipments, establish anappeals procedure forexporters andbase price verification on
themethodology provided intheAgreement. TheAgreement alsocalls fortheestablishment ofan
Independent Entity toreview disputes between exporters andPSIentities.
Agreement onTechnical Barriers toTrade (TBT)
95. TheTBT Agreement laysdown rules thatgovern thepreparation, adoption andapplication of
technical regulations, standards andconformity assessment procedures. These include provisions on
non-discrimination andnational treatment, avoiding unnecessary obstacles totrade, harmonization,
transparency, mutual recognition ofconformity assessment procedures andequivalence oftechnical
regulations.Bothstandardsandtechnicalregulationslaydownspecificphysicalrequirementsforproducts,
such asaproduct 'ssize, shape, design, length andfunctions, andaproduct 'labelling, packaging and
marking aswell asproduct-related process andproduction methods. Transparency isensured through
theestablishment ofnational enquiry points, andfour different notifications obligations.
General Agreement onTrade inServices
96. Apart from itsgeneral thrust offacilitating trade inservices, theGATS relates totrade facilitation
inparticular forallmodes oftransport industries. However, with regard toairtransport theservices
related tolanding rights ("hard rights") areexcluded from thescope oftheGATS. Todate37schedules
thatinclude commitments onairtransport services areinforce. Presently, 36countries have undertaken
commitments onmaritime transport. Concerning road andrailtransport, 21and36schedules,
respectively, have entered intoforce. Further negotiations onservices willtakeplace nolater than by
theyear 2000 andwillinclude transport services. Bythesame datetheannex onairtransport services
willbereviewed inorder toconsider thepossible further application oftheGATS tothissector.G/C/W/80
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Agreement onTrade-Related Aspects ofIntellectual Property Rights
97. Section 4oftheAgreement addresses "Special Requirements Related toBorder Measures",
inorder toprevent illicit trafficking ofcounterfeit trademark orpirated copyright goods.
Agreement ontheApplication ofSanitary andPhytosanitary Measures
98. TheAgreement encourages theuseofinternational standards, guidelines andrecommendations,
thusenhancing transparency andsecurity. Itrequires MFN andnational treatment where identical or
similar conditions prevail. Annex CtotheAgreement deals specifically with control, inspection and
approval procedures. Itobliges Members toprovide thatthese procedures arenotinconsistent with the
other provisions oftheAgreement.G/C/W/80
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Annex I:UN/ECE RECOMMENDATIONS
1.United Nations Layout KeyforTrade Documents
Provides aninternational basis forthestandardization ofdocuments used ininternational trade and
transport, including thevisual representation ofsuch documents. TheUNLayout Key isintended
particularly toserve asabasis fordesigning aligned series offorms employing amaster document in
areprographic one-run method ofdocument preparation; itcanalsobeapplied forthelayout ofvisual
display presentations inelectronic data processing applications.
2.Location ofCodes inTrade Documents
The text was incorporated into Recommendation No. 1"United Nations Layout Key forTrade
Documents".
3.ISOCountry Code forRepresentation ofNames ofCountries
Known asthe"ISO ALPHA-2 Country Code", foruseinrepresenting thenames ofcountries,
dependencies,andotherareasofspecialgeographicalinterestforpurposesofinternationaltradewhenever
there isaneed foracoded alphabetical designation.
4.National Trade Facilitation Organs
Provides guidelines forestablishing national organizations orcommittees, inaccordance with national
regulations, toencourage theimplementation ofrecommendations onfacilitation ofinternational trade
procedures.
5.Abbreviations ofINCOTERMS
Proposes abbreviations oftrade terms foracceptance andusebyGovernments andinternational
organizations whenever these terms arereferred toinabbreviated form, including electronic data
transmission andprocessing.
6.Aligned Invoice Layout Key
Applied tothedesign ofcommercial invoices forinternational trade ingoods. Thelayout keycanalso
beused asabasis fordesigning invoices inother instances. Invoices based onthisRecommendation
areintended -totheextent possible -topresent therequired datainsuch awaythatexisting documents
could becomplemented orincertain cases replaced (e.g.customs invoices, consular invoices, declarations
oforigin, etc.).
7.Numerical Representation ofDates, Time andPeriods ofTime
Establishes amethod forastandardized andunambiguous all-numerical designation ofagiven date,
time ofdayandagiven period oftime. Itapplies toallcases where these dataarepresented asseparate
entries innumerical form butnotwhen they arepartofaplain language text.
8.Unique Identification Code Methodology (UNIC)
Establishesauniqueconsignmentreferencenumberwiththeobjectiveofreducingthenumberofdifferent
references used byparties ininternational andnational trade transactions. Itisnotintended asamethod
ofproduct identification.
9.Alphabetic Code fortheRepresentation ofCurrencies
Encourages theuseofthethree-letter alphabetic codes ofInternational Standard ISO4217, "Codes for
therepresentation ofcurrencies andfunds", forapplication ininternational trade andtheir usein
commercial transactions when currencies areexpressed incoded orabbreviated form. Thecode is
designed tobeequally suitable forautomated ormanual applications.G/C/W/80
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10.Codes forShips 'Names
ThisRecommendation isunder revision andwillbereissued following approval bytheUN/ECE Working
Party onFacilitation ofInternational Trade Procedures.
11.Documentary Aspects oftheInternational Transport ofDangerous Goods
Setsforth actions toharmonize information requirements andtosimplify documentary procedures for
thetransport ofdangerous goods inorder todecrease complexity andincrease accuracy andefficiency.
12.Measures toFacilitate Maritime Transport Documents Procedures
Aims tosimplify andharmonize procedures anddocuments used byship-owners, consignees, banks
andother parties involved inthemaritime transport ofgoods toevidence thecontract ofcarriage. This
Recommendation applies toconsignment-based documents evidencing contract orundertaking tocarry
goods byvessel, andtorelated procedures. Italsoapplies tomultimodal transport, asappropriate.
13.Facilitation ofLegal Problems inImport Clearance Procedures
Recommends toGovernments aseries ofmodifications which could beintroduced intonational laws
andregulations topermit customs andregulatory bodies toclear imports more efficiently andtobenefit
from advances inmodern information technology.
14.Authentication ofTrade Documents bymeans other than signature
Seeks toencourage theuseofelectronic data transfer ininternational trade byrecommending that
Governments review national andinternational requirements forsignatures oninternational trade
documents, inorder toeliminate therequirement forpaper documents andmeeting therequirement
ofsignatures bytheauthentication guaranteed bythemeans oftransmission. Italso recommends
examining current commercial documents toidentify those where signature could besafely eliminated
andpromoting thenecessary changes incommercial practice.
15.Simpler Shipping Marks
Describes asimple andstandardized approach toidentify cargo inorder toreduce costs, mistakes,
confusion andshipment delays. TheStandard Shipping Mark established inthisRecommendation should
beused formarking onpackages moved internationally byallmodes oftransport, forreproduction
inrelated documents, asdata elements intrade data interchange.
16.UN/LOCODE -Code forPorts andother Locations
Recommends afive-letter alphabetic code forabbreviating thenames oflocations ofinterest to
international trade, such asports, airports, inland freight terminals, andother locations where customs
clearance ofgoods cantake place, andwhose names need toberepresented unambiguously indata
interchange between participants ininternational trade.
17.PAYTERMS -Abbreviations forTerms ofPayment
Providesabbreviationsforcertaintermsofpayment,referredtoas"PAYTERMS",foruseininternational
commercial trade transactions relating totheprovision ofgoods and/or services.
18.Facilitation Measures Related toInternational Trade Procedures
Outlines aseries ofmeasures related tothemovement ofgoods, presented ingroups covering different
phases ofacommon international trade transaction, which ontheir ownwould notjustify anindependent
formal recommendation butwhich Governments should consider implementing. Each section describes
theapplicationarea,outlinestheproceduresanddocumentscovered,anddescribestheparticularproblems
forwhich facilitation measures areneeded.G/C/W/80
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19.Codes forModes ofTransport
Establishes aone-digit numerical code forrepresenting transport modes andprovides forasecond digit
forsub-divisions which might berequired. This Recommendation applies toallcases where mode of
transport isrepresented incoded form ininternational trade documents andwhere asimple code structure
suffices.
20.Codes forUnits ofMeasurement used inInternational Trade
Provides three character alphabetic andalphanumeric codes forrepresenting units ofmeasurement for
length, area, volume/capacity, mass (weight), time andother quantities used ininternational trade. The
codes areintended foruseinmanual and/or automated systems fortheexchange ofinformation between
participants ininternational trade.
21.Codes forTypes ofCargo, Packages andPackaging Materials
Establishes anumeric code system todescribe theappearance ofgoods aspresented fortransport to
facilitate identification, recording, handling, andestablishing handling tariffs. Therecommendation
alsoestablishescomplementaryalphabeticcodestorepresentthenamesofpackagesandprovidespictorial
symbols toprovide avisual association between thecodes andthetypes ofpackages thattheyrepresent.
22.Layout KeyforStandard Consignment Instructions
Presents alayout key, based ontheUNLayout KeyforTrade Documents, forthedesign ofStandard
Consignment Instructions intended toconvey instructions from either aseller/consignor ora
buyer/consignee toafreight forwarded, carrier orhisagent, orother provider ofservices, enabling the
movement ofgoods andassociated activities. This Recommendation isrelevant tothemovement and
handling ofgoods, customs, distribution ofdocuments, allocation ofcharges andspecial instructions.
23.Freight Cost Code -FCC
Provides anaming system tobeused fortheestablishment ofharmonized descriptions offreight costs
andother charges related totheinternational movement ofgoods. Italsospecifies anunambiguous
coded representation ofthose descriptions. ThisRecommendation applies inallcases where descriptions
offreight costs andother charges have tobestated inplain language orincoded form intrade data
interchange, beitinpaper documents orbyelectronic means.
24.Harmonization ofTransport Status Codes
Provides Transport Status Codes tosatisfy requirements forexchanging coded information about the
status ofconsignments, goods ormeans oftransport atacertain time orplace inthetransport chain.
Representation oftransport status codes canbegiven inplain language orincoded form. Thecodes
provided forinthisRecommendation areintended foruseinmanual and/or automated systems forthe
exchange ofinformation between allparticipants ininternational trade.
25.UseoftheUnited Nations Electronic Data Interchange forAdministration, Commerce andTransport
(UN/EDIFACT)
Recommends coordinated action bygovernments topromote UN/EDIFACT asasingle international
standard forelectronic interchange ofdata(EDI) between public administrations andprivate companies
ofalleconomic sectors worldwide.G/C/W/80
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26.Commercial useofInterchange Agreements forElectronic Data Interchange
PromotestheuseofinterchangeagreementsbetweencommercialpartiesusingElectronicDataInterchange
inconnection with international commercial transaction. The Recommendation includes aModel
Interchange Agreement forinternational use. Though designed forbilateral agreements between two
trading partners, theModel Interchange Agreement, withadjustments, canbeimplemented inmultilateral
relationships such asinatrade community orassociation.G/C/W/80
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Annex II:EXPLANATION OFEDI andUN/EDIFACT
1. Electronic Data Interchange (EDI) developed outoftheneed ofpublic andprivate organizations
tocommunicate efficiently with each other, andtakes advantage ofmodern information technology.
Traditional business communication occurs intwoforms: unstructured (e.g. memo andletters) and
structured (e.g. business transactions such aspurchase orders, despatch advice, invoices, payments).
EDI covers theexchange ofstructured messages, while electronic mail deals with unstructured types
ofcommunications. With astructured message, such asapurchase order, thedataisformatted according
toanagreed standard, thus facilitating theelectronic transfer from onecomputer system toanother.
Often referred toasapplication toapplication communications between computer systems, theintent
istohave a"hands off"operation thatallows fortheexchange ofbusiness oradministrative databetween
trading partners.
2. Recent productivity strategies among thebusiness community, such asJustinTime (JIT) and
Quick Response (QR), areefforts tobecome more efficient. This requires organizations tostreamline
their operations byeliminating allprocedures thatdonotaddvalue tothebusiness process. Amajority
ofmultinational andlarge regional organizations areimplementing EDIandareincreasingly requiring
alltrading partners tobe"EDI capable". Thesavings canbehuge. Arecent Financial Times article
noted thatTexas Instruments oftheUSsaved US$50 million from introducing EDI. Volkswagen of
Germany hopes tocut1percentofitsoperating costs byusing UN/EDIFACT forallitsinternal and
external business.10Forinternational trade, complex document requirements andbusiness relationship
would benefit from EDI streamlining. International trade generally involves transportation carriers,
freight forwarders, brokers, banks insurers, customs administrations andother government agencies.
Thedataentered bytheinitiating party isgenerally required byallother parties involved. EDIallows
allparties toexchange thisinitial datawithout manual copying ordata-entry, thusreducing time and
errors.
3. InanEDIenvironment, itwould notbeefficient, orindeed realistic, foreveryone toexchange
their ownversions ofasingle document (e.g. purchase order). Theavailability ofalibrary ordirectory
ofcommon messages andmessage components wasrecognized asameans topromote auniversal
technique forexchanging ofbusiness data. Until tenyears ago,thiswasachieved byvarious initiatives
atagroup, industry andcountry level. There wasanobvious need foraninternational standard.
UN/EDIFACT wasdeveloped inthiscontext andnowcovers awide range ofindustry sectors, including
purchasing, transport, banking, insurance, product andquality data, materials management, statistics,
travel, tourism andleisure, customs, architecture, engineering andconstruction, health care, social
administration andemployment.
4 UN/EDIFACT consists ofacomprehensive setofrules andprocedures based ontheidea of
standardizing orcoding atalllevels ofinformation; every piece ofinformation should berepresented
byamnemonic, orasymbol which represents thatpiece unambiguously. Inaddition, theorder inwhich
themnemonics areplaced must alsobestandardized. UN/EDIFACT provides these codes andtheir
format. Theformat iscalled theEDIFACT syntax which canbethought ofastheelectronic equivalent
oftheUnited Nations Layout Key. Thesyntax contains therules forhow UN/EDIFACT messages
should bestructured andisanISOstandard (ISO 9735). Within thissyntax standard, anEDIFACT
message isdefined asaseries ofbuilding blocks. Each ofthese building blocks isstandardized and
foreach type ofbuilding block there isaseparate, UN/EDIFACT directory which forms partofthe
UN/EDIFACT standard.
10"EDI dataexchange spreads itswings", Williams, Francis, Financial Times, Friday, 21March 1997.G/C/W/80
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5. Thesyntax rules govern thestructure ofUnited Nations Standard Messages (UNSM) which
isastructured setofdatavalues relating toabusiness function, organized asacollection ofsequenced
segments. Thesegments consist ofdataelements that, together, define aprecise concept. TheUNSM
isdesigned tobeapplicable across business sectors. UN/EDIFACT concerns themessage only; the
communication method isnotpartofthestandard, thusmessages canbesentacross both commercial
andpublic networks aswellastheInternet. UN/EDIFACT isalsoindependent ofhardware andsoftware,
justastherecommendations donotdefine how towrite onthepaper, using pencil, typewriter, etc.
Many such messages have been developed andarecontained intheUN/EDIFACT United Nations
Standard Message Directory (UNSM). Atotal of145UNSMs arespecified inthelatest Directory,
with afurther 60messages indevelopment.
6. Thetwice-yearly UN/EDIFACT Joint Rapporteurs Team (JRT) meetings areheld todevelop
messages andcoordinate positions developed byeach ofthefiveregional EDIFACT Boards: Pan-
American, Western European, Central andEastern European, Australia/New Zealand, andAsia (the
African EDIFACT board wasdismantled attheMarch 1996 meeting ofWP.4). Each Board supports
theRegional EDIFACT Rapporteur which isappointed byWP.4 toorganize thework within his/her
region andthetocoordinate thework between regions. TheJRTmeetings areattended byover 300
technical experts. TheUN/EDIFACT Directories areapproved andpublished, following each JRT
meeting, inaccordance with anapproved version/release process. Aspartofthisprocess, there isa
formal audit toensure thequality oftheUN/EDIFACT product. These directories areavailable for
theUN/ECETradeFacilitationInternetsite(http://www.unece.org/trafix)aswellasfromnational,regional
andinternational organizations thatsupport theprocess, andtheECE Secretariat.
7. Oneproblem thathasarisen which theEDIFACT hasaddressed istheability totrimtheUNSMs
tosuittherequirements ofaparticular industry sector. EDIorganizations ineach region create what
arecalled Message Implementation Guidelines (MIGs) which areputintoanEDIFACT message through
anImplementation Definition (IMPDEF). These MIGs takeaUNSM which isadatamodel ofacertain
business transaction inanyindustry, inanycountry andbetween anynumber ofpartners andtrim it
intoamodel foraspecific industry, country andgroups ofpartners. These arethen usually assembled
intoadirectory anddistributed tothose users inthatparticular community. Ineffect, theIMPDEF
allows thecontents oftheMIG tobeelectronically transmitted through EDIFACT sothatanelectronic
translation oftheUNSM isperformed. Inpractice, however thefullutilization ofIMPDEFS isstill
being developed. However, translation software hasbeen developed totranslate ANSX12, the(American
National Standards Institute Accredited Standards Committee), intoEDIFACT. Itisalsoclear that
these implementation translator software willcontinue tobedeveloped andwillbepartofthefuture
ofEDI.G/C/W/80
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8. Who isusing UN/EDIFACT? Thefollowing countries andeconomies arecurrently using
UN/EDIFACT andinvolved intheUN/EDIFACT development process:
Argentina Australia Austria Belgium
Brazil Bulgaria Canada Chile
Chinese Taipei Colombia Czech Rep. Denmark
Finland France Gabon Germany
Hong Kong Hungary Iceland India
Israel Ireland Italy Japan
Korea Luxembourg Malaysia Malta
Mexico TheNetherlands New Zealand Nigeria
Norway PRC Poland Romania
Russian Fed. Senegal Singapore Slovenia
South Africa Spain Sweden Switzerland
Thailand United Kingdom United StatesG/C/W/80
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Annex III: THE ANNEXES OFTHE WCO KYOTO CONVENTION
A. FORMALITIES PRIOR TOTHE LODGEMENT OFTHE GOODS DECLARATION
Annex A.1.concerning customs formalities prior tothelodgement ofthegoods declaration
This Annex deals with thecustoms formalities forimported goods from thetime theyareintroduced
intothecustoms territory tothemoment where they areplaced under acustoms procedure. Asaprinciple,
customs formalities prior tothegoods declaration shall bereduced toaminimum. Nodiscrimination with
regard totheorigin ofthegoods shall apply atthisstage oftheimport process. Customs documents shall
only berequired tobelodged atthelocation where thegoods have tobeproduced tocustoms. Atthepoint
where thegoods were introduced intothecustoms territory, only documentation thatidentifies goods and
means oftransport canberequired. Annex A.1further setsstandards forunloading practices, taxexemption
fordamaged, destroyed orlostgoods, andtransparency ofcustoms formalities.
Annex A.2.concerning thetemporary storage ofgoods
During thetime between thearrival ofthegoods inacountry andthelodgement oftherelevant Goods
Declaration, customs authorities maintain control overthegoods inapproved areas, termed “temporary stores ”,
which may consist ofbuildings orenclosed orunenclosed spaces. TheAnnex provides forasimple method
ofcontrolling goods pending clearance andisanimportant linkbetween thearrival ofthegoods andtheir
release bycustoms after accomplishment ofthenecessary formalities. TheAnnex alsocontains provisions
concerning,interalia,theestablishmentandmanagementoftemporarystores,authorizedoperations,theduration
oftemporary storage andtheremoval ofgoods from temporary store.
Annex A.3.concerning customs formalities applicable tocommercial means oftransport
This Annex deals with means oftransport which areused ininternational traffic forthetransport
ofpersons forremuneration orfortheindustrial orcommercial transport ofgoods, whether ornotfor
remuneration. TheAnnex provides fortemporary importation, conditionally relieved from payment ofimport
duties andtaxes andfreeofimport prohibitions andrestrictions, forcommercial means oftransport, forspecial
equipment fortheloading, unloading, handling andprotection ofcargo andforparts andequipment which
aretobeused asreplacements. Inaddition, there areprovisions concerning places ofarrival inanddeparture
from thecustoms territory, designated customs offices where commercial means oftransport must bereported,
documentary formalities, customs control andformalities upon departure ofcommercial means oftransport
from thecustoms territory.
Annex A.4.concerning customs treatment ofstores (notinforce)
Annex A.4.provides forexemption from import duties andtaxes forstores which arecarried onboard
vessels, aircraft andtrains (with theexclusion ofprivate means oftransport) arriving inacustoms territory;
these stores maybeintended forpassengers orcrew ormaybeneeded forthemeans oftransport themselves.
Exemption from duties andtaxes isalsoprovided forstores which vessels andaircraft takeonboard inthe
customs territory foruseduring anintended journey abroad.
B. CLEARANCE OFGOODS FOR HOME USE
Annex B.1. concerning clearance forhome use
Clearance forhome useisthecustoms procedure which provides thatimported goods may remain
permanently inacustoms territory. Itistheprocedure most commonly applied toimports andthusacentral
annex oftheKyoto Convention. Some oftheprinciples onwhich Annex B.1. isbased alsounderlie otherG/C/W/80
Page35
customs procedures. Themain provisions oftheAnnex include theobligations ofthedeclarant, such as
lodgement ofaGoods Declaration, with supporting documents (import licence, certificates oforigin, etc.),
payment ofimport duties andtaxes; deferral ofsuch payments orsecurity under certain circumstances. The
annex laysouttheprocedures applied bycustoms: checking ofthegoods declaration; examination ofthe
goods; andassessment andpayment ofimport duties andtaxes. Thelay-out keyfortheGoods Declaration
forhome usereproduced atAppendix ItotheAnnex isaligned tothelayout keywhich UNECE hasadopted
forcommercial documents.
Annex B.2.concerning relief from import duties andtaxes inrespect ofgoods declared forhome use
Allcustoms regulations mention cases ofrelief from duties andtaxes applicable inspecified
circumstances andwhere certain conditions have been met. Insome countries such relief isprovided for
inthecustoms tariff, whereas inothers itmay besetoutinseparate legislation orregulations. TheAnnex
specifically mentions anumber offorms ofrelief normally granted inmost countries. Itincludes reliefs referred
toinother international instruments; human therapeutic substances andblood grouping andtissue-typing
reagents; removable articles imported ontransfer ofresidence; personal effects andeducational articles for
persons attending educational establishments; effects acquired byinheritance; personal gifts; goods sentto
charitable orphilanthropic organizations; awards; documents andmiscellaneous articles ofnocommercial
value; religious objects; products imported fortesting; products andmaterials fortheprotection ofgoods
during transport. Inaddition tolisting examples ofrelief, theannex setsoutpractices fortheimport formalities
such asprior authority, goods declaration andsecurity payment.
Annex B.3.concerning reimportation inthesame state
Thecustoms procedure inthisAnnex applies togoods which arereimported intothecountry of
exportation without having undergone anymanufacturing, processing orrepairs abroad. Inmany instances
reimportationisforeseeableatthetimeofexportation,inwhichcasethegoodsmaybeexportedwithnotification
ofintended return. However, incertain cases goods arereimported owing tocircumstances which arise after
their exportation. Goods reimported inthesame state enter freeofimport duties andtaxes andqualify for
repayment ofanyexport duties andtaxes paid onexportation.
C. CLEARANCE OFGOODS ATEXPORTATION
Annex C.1. concerning outright exportation
Annex C.1.deals with thecustoms procedure applicable togoods which leave thecustoms territory
andareintended toremain permanently outside it.However, itdoes notcover goods exported under the
drawback procedure, under aprocessing procedure orwith repayment ofimport duties andtaxes. Outright
exportationisauniversalcustomsprocedurewhich,exceptwhereexportdutiesortaxesarechargeable,generally
involves relatively simple customs formalities. TheAnnex setsoutavariety offacilities which maybeoffered
tointernational trade within theframework ofthisprocedure. Keystandards include documentary requirements
andrules relating totheexamination ofgoods. Two appendixes contain layout keys forexport declaration
andinvoice. Both conform with theUNECE layout key.
D. ORIGIN OFGOODS
Annex D.1. concerning rules oforigin
ThisAnnex contains therules forthedetermination oftheorigin ofgoods byemploying thefollowing
twobasic criteria:G/C/W/80
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- thatofgoods "wholly produced" inagiven country where only onecountry istaken into
consideration inattributing origin; inthisconnection theAnnex contains alistofgoods which
shall beregarded, under thiscriterion, asbeing wholly produced inagiven country;
- thatof"substantial transformation" where twoormore countries have shared intheproduction
ofgoods. Imported parts ofmaterials must have undergone "substantial transformation" in
thecountry ofproduction ifthegoods made from them aretoberegarded asoriginating in
thatcountry.
There arevarious methods ofexpressing theconcept of“substantial transformation ”,each ofwhich
hasadvantages anddisadvantages andthey aresetoutintheintroduction totheAnnex. TheAnnex suggests
theuseofthemethod which expresses the“substantial transformation ”criterion byarulerequiring achange
intariff heading (possibly accompanied bylistsofexceptions) andrecommends thattheCCCN beused for
itsapplication.
Annex D.2. concerning documentary evidence oforigin
TheaimofthisAnnex istorestrict theuseofdocumentary evidence oforigin byspecifying that
itberequired only inconnection with thegranting ofpreferential treatment ortheapplication ofeconomic
measures orofthose connected with health orpublic order. TheAnnex makes adistinction between four
cases: those where documentary evidence oforigin should notberequired (forexample, goods carried in
travellers ’baggage, goods granted temporary admission orcarried incustoms transit); those where asimple
statement oforigin bytheexporter issufficient; those where such astatement must becertified byaduly
authorized body; and,lastly, those where acertificate oforigin must beproduced. TheAnnex alsocontains
amodelformforcertificatesoforigintogetherwithnotesandrulesfortheiruseandrecommendsthat,whenever
certificates oforigin arerevised, they should bealigned onhismodel.
Annex D.3. concerning thecontrol ofdocumentary evidence oforigin
TheAnnex stipulates that, subject toreciprocity, requests forcontrol oforigin may bemade when
there arereasonable grounds todoubt theauthenticity oraccuracy ofdocuments produced.
E. CONDITIONAL RELEASE PROCEDURES AND PROCESSING TRAFFIC
Annex E.1.concerning customs transit
TheAnnex deals withallthebasic elements ofbothnational andinternational customs transit including
thegoods declaration forcustoms transit, security, examination andidentification ofconsignments, additional
control measures such asprescribed itineraries andtime-limits, andcustoms escort, customs seals and
identification marks. Annex E.1.alsodeals specifically withinternational customs transit bymeans ofageneral
recommendation tocountries toconsider becoming Contracting Parties totheITI,TIRandATA Conventions,
followed byaseries ofprovisions which areconsidered suitable forincorporation innew customs transit
agreements which might have tobeconcluded bycountries which forthetime being arenotinaposition
toaccede tothose international conventions.
Annex E.2. concerning transhipment
This Annex deals with thecustoms procedure applicable togoods which areimported intoacountry
inameans oftransport inorder tobetransferred toanother means oftransport onwhich they then leave
thecountry fortheir final destination, theimportation, transfer andexportation ofthegoods alltaking place
within theareaofasingle customs office. TheAnnex provides thattranshipment operations maybecarried
outwithout payment ofduties andtaxes andunder very simple arrangements forcustoms control.G/C/W/80
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Annex E.3.concerning customs warehouses
TheAnnex deals withthecustoms procedure under which imported goods maybestored under customs
control inadesignated place (i.e.acustoms warehouse) without payment ofimport duties andtaxes. The
Annex laysdown provisions forthedetailed application ofthecustoms warehousing procedure andcovers,
inter alia, theestablishment andmanagement ofthewarehouses themselves, thetypes ofgoods which may
bewarehousedandtheadmissionofthemintothewarehouse,authorizedoperations,thedurationofwarehousing
andremoval from warehouse.
Annex E.4.concerning drawback
This Annex deals with thedrawback procedure which provides, when goods areexported, forrefund
(total orpartial) oftheimport duties andtaxes charged onthegoods oronmaterials contained inthem or
used upintheir production. Itcovers thefollowing twoforms ofdrawback which areprovided forinthe
legislations ofmany countries:
1) incases where thegoods have undergone processing, manufacture orrepair,
2) incases where thegoods areimported andre-exported inthesame state.
Annex E.5.concerning temporary admission subject tore-exportation inthesame state
This Annex relates tothecustoms procedure under which goods may beimported intothecustoms
territory onatemporary basis under relief from thepayment ofimport duties andtaxes. Such goods must
beimported foraspecific purpose andmust beintended forre-exportation within aspecified period. They
must undergo nochange instate other than normal depreciation through use. Inmost cases thetemporary
admission procedure aslaiddown intheAnnex provides fortotal relief from import duties andtaxes, but
incertain cases (when, forexample, theimported goods aretobeusedforproduction purposes orwork projects)
therelief may beonly partial.
Annex E.6.concerning temporary admission forinward processing
Incase goods areimported with aview tolater re-exportation after having undergone specified
manufacturing, processing orrepair, most national legislations allow for(total orpartial) relief from import
duties andtaxes. TheAnnex laysdown theprocedure under which relief from import duties andtaxes is
granted. Theusual requirement isthattheproducts exported shall have been obtained from thegoods imported,
buttheAnnexalsoprovidesfortheuseofgoodsequivalenttothosetemporarilyadmittedforinwardprocessing.
Annex E.7.concerning theduty freereplacement ofgoods (notinforce)
TheprocedurewhichisthesubjectofthisAnnexapplieswheregoodshavebeenprocessedintoproducts
exported from acustoms territory, andprovides forexemption from import duties andtaxes tobegranted
inrespect ofgoods equivalent tothose processed intotheexported products. Animportant advantage of
theduty-free replacement ofgoods procedure isthatapplication forexemption from import duties andtaxes
forfuture importations may bemade atthetime ofexportation oftheprocessed products, whereas under
temporary admission forinward processing application must bemade when therawmaterials forprocessing
areimported.
Annex E.8.concerning temporary exportation foroutward processing
Thecustoms procedure dealt with inthisAnnex enables goods infreecirculation inacustoms territory
tobetemporarily exported formanufacturing, processing orrepair abroad andthen tobereimported with
totalorpartial exemption from import duties andtaxes. Theapplication ofthisprocedure maybemade subjectG/C/W/80
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totheconditions thattheprocessing operations envisaged areregarded bythecompetent authorities asnot
detrimental tonational interests.
F. SPECIAL CUSTOMS PROCEDURES
Annex F.1. concerning freezones
TheAnnex deals with thecustoms procedure applicable togoods introduced into“freezones, ”"free
port", "free warehouse" or"transit zone," allofwhich areapartofastate’sterritory intowhich goods can
beintroduced without being subject totheusual duty andtaxrequirements andcustoms control.
Annex F.2. concerning processing ofgoods forhome use
This Annex laysdown theprocedure ofprocessing ofgoods forhome usewhich permits, where it
isinthenational economic interest, theprocessing ofimported goods under customs control sothattheproducts
thusobtained maybedeclared forhome useunder thetariff classification applicable tothem intheir processed
state. Naturally, theprocedure would beapplied only where therates ofimport duties andtaxes applicable
totheproducts obtained arelower than those applicable totheimported goods andforthisreason thescope
oftheAnnex islimited.
Annex F.3.concerning customs facilities applicable totravellers
This Annex provides fortheminimum customs facilities applicable toalltravellers irrespective of
whether they arenon-residents ordeparting orreturning residents. Theonly persons specifically excluded
from theAnnex arethose transferring residence from onecountry toanother. Thefollowing important subjects
aredealt with intheAnnex: thetreatment oftravellers 'means oftransport forprivate use;theexceptional
nature ofandconditions forpersonal searches; theflatrateassessment systems; theelimination ofarequirement
foralistoftravellers oralistoftheir unaccompanied baggage regardless ofthemode oftransport used.
Annex F.4.concerning customs formalities inrespect ofpostal traffic
Duetothespecial nature ofpostal traffic thecustoms formalities inrespect ofitems carried bymail
aresomewhat different tothose applied togoods carried byother means. Because ofthevery large number
ofitems sentbypost, special administrative arrangements arenecessary toavoid unacceptable delays. The
Annex setsoutthespecial customs formalities applicable topostal traffic atexportation andspecifies that
postal items shall notbesubject tosuch formalities whilst they arebeing conveyed intransit ininternational
traffic.
Annex F.5.concerning urgent consignments
Thepurpose ofAnnex F.5.istofacilitate thecustoms clearance ofgoods which, because oftheir
nature orbecause ofthecircumstances surrounding their shipment, have tobeconveyed rapidly from one
country toanother andcleared through customs with aminimum ofdelay. Such goods areprincipally subject
tothesame customs controls andformalities asordinary consignments ofgoods buttheAnnex provides for
shipments which arerecognized bythecustoms authorities asbeing urgently needed tobecleared asamatter
ofpriority subject tothenecessary revenue safeguards andanyprohibitions andrestrictions.
Annex F.6.concerning therepayment ofimport duties andtaxesG/C/W/80
Page39
This Annex isbased onthegenerally accepted principle thatarefund should bepaid where import
duties andtaxes have been overpaid. TheAnnex liststhose cases inwhich repayment seems particularly
justified andsetsouttheconditions ofrepayment.
Annex F.7.concerning thecarriage ofgoods coastwise (notinforce)
This Annex deals with theprocedure used particularly inmaritime countries forthecustoms control
ofgoods transported byvessel from oneplace toanother inthecustoms territory. Both goods infreecirculation
andunentered imported goods maybecarried under thisprocedure with theexception ofunentered imported
goods remaining onboard thevessel inwhich they arrived inthecustoms territory andbeing carried therein
asacontinuation ofthevessel 'sinward voyage. TheAnnex contains provisions ontheusual procedural aspects
such asdocumentation theplaces andtimes atwhich goods maybeloaded andunloaded, security, andcontrol
measures.
G. RELATIONS BETWEEN PERSONS ENGAGED ININTERNATIONAL TRADE AND THE
CUSTOMS ADMINISTRATIONS
Annex G.1. concerning information supplied bythecustoms authorities
Various types ofinformation (e.g. ontariff rates orclearance procedures) areprovided bycustoms
authorities. Annex G.1. laysouttheenvironment andconditions ofinformation supply. Itsmain chapter
isoninformation ofaspecific nature -information which concerns particular goods oraparticular operation
which theinterested person wishes tocarry out. There aredifferent sections relating togeneral principles,
duties andtaxes, customs valuation andprocedural questions. Aspecial section isdevoted tothespecial
procedure bywhich persons may obtain binding tariff classification information.
Annex G.2. concerning therelationship between customs authorities andthird parties
ThisAnnexisdesignedprimarilytodealwiththerelationshipwhichexistsbetweenprofessionalcustoms
clearing agents andthecustoms aswell asthose third parties performing thefunctions ofcustoms clearing
agents asanincidental partoftheir main commercial activities. Inaddition theAnnex addresses other parties
notinvolved intheclearance ofgoods whointervene inthemovement andstorage ofgoods which areunder
customs control. Oneofthefundamental points oftheAnnex directs thatpersons concerned shall have the
choice oftransacting business with thecustoms either directly orbydesignating athird party.
H. DISPUTES AND OFFENCE
Annex H.1. concerning appeals incustoms matters
This Annex deals with thesituation inwhich adecision oromission ofthecustoms authorities is
notacceptable totheperson directly affected thereby. Itprovides fortheperson concerned tobegiven, upon
request, anexplanation ofthereasons forthedecision oromission andforthere tobearight ofappeal to
acompetent authority. Thiscompetent authority maybethecustoms authorities themselves, anadministrative
authority, oneormore arbitrators, aspecial tribunal and, atleast inthefinal instance, ajudicial authority.
Annex H.1., unlike other Annexes totheKyoto Convention, isnotconcerned exclusively withcustoms
procedures orformalities. However, inregard toappeals tojudicial authorities only broad general principles
have been laiddown.G/C/W/80
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Annex H.2. concerning customs offence (notinforce)
This Annex deals with theconditions under which thecustoms authorities investigate andestablish
anybreachorattemptedbreachofthestatutoryorregulatoryprovisionswhichtheyareresponsibleforenforcing.
Therepression ofcustoms offence byapplication ofsuitable penalties isalsodealt with, butonly totheextent
thatitfalls within thecompetence ofthecustoms authorities.
Annex I.1.concerning customs applications ofcomputers (notinforce)
Thebenefits ofusing ADP techniques insupport ofcustoms procedures have been welldocumented.
They include greater trade facilitation, improved customs controls andanallround greater efficiency inthe
operation ofthecustoms service. Annex J.1.aims todraw Member administrations ’attention tothese
advantages andtoprovide practical advice onthedevelopment andmaintenance ofcustoms ADP systems.
TheAnnex contains several provisions concerning electronic datainterchange anddraws attention totheneed
ofinternational standards inthisarea.G/C/W/80
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Annex IV: THE ANNEXES OFTHE WCO ISTANBUL CONVENTION
Annex A.concerning temporary admission papers (ATA carnets andCPD carnets)
This Annex deals with theinternational customs documents, Carnet dePassage enDouane (CPD)
forthetemporary importation ofmotor vehicles andtrailers andtheATA carnet forthetemporary importation
ofother goods. Thetwotemporary admission carnets have tobeaccepted byContracting Parties totheIstanbul
Convention
- inlieuofnational customs documents todescribe thegoods declared fortemporary admission; and
- asduesecurity forthepayment ofimport duties andtaxes and, totheextent laiddown inthe
Convention, anyother sums payable incase offailure tore-export thegoods induecourse.
Annex B.1. concerning goods fordisplay oruseatexhibitions, fairs, meetings orsimilar events
Annex B.1.deals withthetemporary admission ofanextremely wide range ofgoods. What iscommon
tothem isthatthey arefordisplay oruseatevents ofaneconomic orother nature. TheAnnex covers two
different customs procedures, temporary admission subject tore-exportation andoutright importation free
ofimport duties andtaxes forcertain, clearly defined, goods. since thelatter areeither distributed freeof
charge tothevisiting public orconsumed, destroyed orused upattheevent, therequirement ofre-exportation
must bewaived.
TheAnnex provides fortemporary admission togoods intended fordisplay ordemonstration atan
event;goodsintendedforuseinconnectionwiththedisplayofforeignproductsatanevent;equipmentincluding
interpretationequipment,soundandimagerecordingapparatusandfilmsofaneducational,scientificorcultural
character. TheAnnex provides foroutright importation freeofimport duties andtaxes tosmall samples;
goods imported solely fordemonstration orforthepurpose ofdemonstrating theoperation ofaforeign machine
orapparatus; products oflowvalue used upinconstructing, furnishing, ordecorating thetemporary stand
offoreign exhibitors atanevent; printed matter, catalogues, trade notices, etc.which aredemonstrably publicity
material fortheforeign goods displayed atanevent; files, records, forms andother documents which are
imported foruseassuch at,orinconnection with, international meetings, conferences orcongresses.
Annex B.2. concerning professional equipment
This Annex deals with thetemporary admission ofanyequipment necessary fortheexercise ofthe
calling, trade orprofession ofaperson visiting theterritory ofanother country toperform aspecified task.
Therange ofsuch equipment iscomprehensibly wide. TheAnnex provides fortemporary admission to
professional equipment andcomponent parts imported forrepair ofprofessional equipment.
Annex B.3.concerning containers, pallets, packings, samples andother goods imported inconnection with
acommercial operation
This Annex covers goods which areimported temporarily inconnection with acommercial operation
butwhose importation does notinitself constitute acommercial operation. This means thatthegoods are
notthemselves theobject ofasaleorapurchase. Itprovides fortemporary admission topackings, containers,
component parts intended fortherepair ofcontainers granted temporary admission, pallets, samples, advertising
films, andanyother goods imported foranyofthepurposes listed intheexhaustive listappended toAnnex
B.3.G/C/W/80
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Annex B.4. concerning goods imported inconnection with amanufacturing operation
This Annex covers goods which areused inthemanufacturing process butnotgoods which areto
beprocessed, such asrawmaterials. Itprovides fortemporary admission toarticles onthebasis ofwhich
goods areproduced such asmatrices, moulds, models andsimilar articles; articles bymeans ofwhich goods
areproduced such asmeasuring, controlling andchecking instruments aswellasspecial tools andinstruments
foruseduring amanufacturing process.
Annex B.5. concerning goods imported foreducational, scientific orcultural purposes
This Annex isdevoted topromoting scientific research andeducational orvocational training. It
provides fortemporary admission toanextremely wide range ofgoods:
(a) goods imported exclusively foreducational, scientific orcultural purposes;
(b) spare parts forscientific equipment andpedagogic material which hasbeen granted temporary
admission under (a)above, andtools specially designed forthemaintenance checking, gauging
orrepair ofsuch equipment.
Annex B.6. concerning travellers 'personal effects andgoods imported forsports purposes
This Annex deals with temporary admission facilities fortwocategories ofgoods which areclosely
related butwhich sofarhave been treated differently atinternational level:
(a) allarticles, new orused, which atraveller may reasonably require forhisorherpersonal
useduring thejourney, taking intoaccount allthecircumstances ofthejourney, butexcluding
anygoods imported forcommercial purposes;
(b) sports requisites andother articles forusebytravellers insports contests ordemonstrations
orfortraining intheterritory oftemporary admission.
Travellers asdefined inthisAnnex include tourists, athletes, business travellers, delegates tomeeting
ofinternational organizations, students, etc.
Annex B.7. concerning tourist publicity material
This Annex contributes topromoting international tourism byfacilitating thecirculation oftourist
publicity documents andother material aimed atencouraging thepublic tovisitaforeign country. TheAnnex
covers twodifferent customs procedures. Temporary admission subject tore-exportation fortourist publicity
material andoutright importation freeofimport duties andtaxes forcertain, clearly defined publicity material.
This latter material willnotbere-exported, either because itisforfreedistribution orbecause torequire its
re-exportation would serve nouseful purpose.
Annex B.8.concerning goods imported asfrontier traffic
This Annex facilitates theconditions oflifeofthepeople who liveinafrontier zone ofacountry
andwho, forvarious reasons, have tovisit thefrontier zone intheneighbouring country. Itprovides for
temporary admission togoods carried byfrontier zone inhabitants intheperformance oftheir profession or
trade; personal orhousehold effects offrontier zone inhabitants imported bythem forrepair, manufacture
orprocessing; equipment intended forworking onland located within thefrontier zone oftheterritory of
temporary admission; equipment owned byanofficial body, imported inconnection with arelief operation
(fire, etc).G/C/W/80
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Annex B.9.concerning goods imported forhumanitarian purposes
This Annex contributes totheefforts made intheinterest ofhumanity byfacilitating theimportation
ofurgently needed medical, surgical andlaboratory equipment andofrelief consignments forwarded asaid
tothose affected bynational disasters andsimilar catastrophes. Relief consignments include allgoods, such
asvehicles andother means oftransport, blankets, tents, prefabricated houses orother goods ofprime necessity.
However, thetemporary importation ofvehicles andother means oftransport transporting relief consignments
intothecountry affected, arecovered inAnnex C.
Annex Cconcerning means oftransport
ThisAnnex contributes totheinternational movement ofgoods andpersons byproviding fortemporary
admission facilities forthemeans oftransport used fortheir carriage. Itcovers anywater, air,road orrail
means oftransport which areused forcommercial, industrial orprivate purposes.
Annex Dconcerning animals
This Annex wasprepared inrecognition ofthemany anddiversified functions animals arecalled
upon toperform inthemodern society. Itprovides fortemporary admission toliveanimals ofanyspecies.
Theexhaustive listappended totheAnnex liststhepurposes forwhich animals maybetemporarily imported.
Annex Econcerning goods imported with partial relief from import duties andtaxes
This Annex constitutes anexception tothemain ruleunder theIstanbul Convention according to
which temporary ad-mission shall begranted with atotal relief from import duties andtaxes. Itcovers all
goods which areimported only temporarily butwhich donotfulfil theconditions necessary forgranting a
total relief from import duties andtaxes. Since temporary admission under thisAnnex always entails the
payment ofatleast apartoftheimport duties andtaxes applicable, thecustoms document andsecurity should
besimilar tothose normally required inconnection with clearance forhome use. Thus there isnoobligation
toaccept temporary admission papers (ATA andCPD carnets).G/C/W/80
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Annex V:THE ANNEXES OFTHE NAIROBI CONVENTION:
Annex I: Assistance byacustoms administration onitsown initiative
Annex II: Assistance, onrequest, intheassessment ofimport taxes orexport duties andtaxes
Annex III: Assistance, onrequest, relating tocontrols
Annex IV: Assistance, onrequest, relating tosurveillance
Annex V: Enquiries andnotifications, onrequest, onbehalf ofanother Contracting Party
Annex VI: Appearance bycustoms officials before acourt ortribunal abroad
Annex VII: Presence ofcustoms officials ofoneContracting party intheterritory ofanother Contracting
Party
Annex VIII: Participation ininvestigations abroad
Annex IX: Pooling ofinformation
Annex X: Assistance inaction against thesmuggling ofnarcotic drugs andpsychotropic substances
Annex XI: Assistance inaction against thesmuggling ofworks ofart,antiques andother cultural propertyG/C/W/80
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Annex VI: OTHER WCO CONVENTIONS
TheConventions andRecommendations presented herewere designed tosolve certain specific customs
problems. Anumber ofthese earlier instruments arereferred tobycertain provisions oftheAnnexes tothe
Kyoto Convention. These provisions alsourge Contracting Parties totheKyoto Convention toaccede to
theother earlier Conventions.
1. Customs Convention onthetemporary importation ofpackings
This Convention meets awish frequently expressed byrepresentatives ofinternational trade forthe
extension oftemporary duty free, important procedures topackings. TheContracting Parties undertake to
grant temporary admission topackings, subject totheconditions specified intheConvention, andtoaccept
anundertaking tore-export thepackings inlieuofsecurity wherever thecustoms authorities deem thispossible.
This Convention willbeterminated andreplaced byAnnex B.3. oftheIstanbul Convention
2. Customs Convention onthetemporary importation ofprofessional equipment :
ThisConvention isdesigned tofacilitate theinternational exchange ofspecialized skills andtechniques
bytheintroduction ofgeneral rules onthetemporary duty-free importation ofprofessional equipment. It
hasthree Annexes, onerelating toequipment forthepressor forsound andtelevision broadcasting, oneto
cinematographic equipment andthethird toother professional equipment. TheConvention willbeterminated
andreplaced byAnnex B.2. oftheIstanbul Convention
3. Customs Convention concerning customs facilities fortheimportation ofgoods fordisplay oruse
atexhibitions, fairs, meetings orsimilar events
Thepurpose ofthisConvention istofacilitate thedisplay ofgoods atexhibitions, fairs, meetings
orsimilar events ofacommercial, technical, religious, educational, scientific, cultural orcharitable nature.
Itdeals, inparticular, with thetemporary admission ofgoods andequipment fordisplay oruseatanevent,
thewaiving ofimport duties inrespect ofcertain goods (small samples, printed matter, catalogues, etc.), and
thesimplification offormalities onimportation andre-exportation. This Convention willbeterminated and
replaced byAnnex B.1. oftheIstanbul Convention
4. Customs Convention concerning welfare material forseafarers
This Convention wasdrawn upbytheCouncil ontheinitiative ofandinconsultation with the
International Labour Organization. Itsaimistopromote thewelfare ofseafarers onships engaged in
international maritime traffic. Contracting Parties undertake togrant facilities inrespect ofwelfare material
foruseonboard foreign ships and,unless areservation isentered inthisrespect, towelfare material foruse
inwelfare establishments ashore. This Convention willbeterminated andreplaced byAnnex B.5. ofthe
Istanbul Convention
5. Customs Convention onthetemporary importation ofscientific equipment
ThisConvention helps tomaterialize theprinciple ofthe"free flow ofideas" which hasbeen advocated
andpromoted byUNESCO formore than twenty years. Itremoves certain difficulties encountered inthe
implementation ofthe1950 Florence Agreement andsupplements, with regard toscientific equipment the
professional equipment Convention andthefairs andexhibitions Convention which were alsodrawn upby
theCouncil inco-operation with UNESCO. TheContracting Parties undertake togrant temporary admission,
freeofduties andtaxes, toinstruments, apparatus, machines oraccessories therefor which aretobeusedG/C/W/80
Page46
forpurposes ofscientific research oreducation by"approved institutions" andtoreduce theattendant customs
formalities. This Convention willbeterminated andreplaced byAnnex B.5. oftheIstanbul Convention
6. Customs Convention ontemporary importation ofpedagogic material
ThisConvention isdesigned primarily tosupplement, inthefield ofeducational material, theScientific
EquipmentConvention.ItroundsofftheworkdonebytheWCO,inco-operationwithUNESCO,inconnection
with thetemporary importation ofeducational, scientific andcultural material. Under theConvention the
Contracting Parties undertake togrant andfacilitate thetemporary admission, freeofimport duties andtaxes,
ofpedagogic material which complies with theprescribed conditions (and with certain optional conditions
which may beimposed byeach Contracting Party). Anon-limitative listofpedagogic material isannexed
toandforms anintegral partoftheConvention. This Convention willbeterminated andreplaced byAnnex
B.5. oftheIstanbul Convention
7. Customs Convention ontheATA carnet orthetemporary admission ofgoods (ATA Convention)
On1March 1956 theCouncil adopted theCustoms Convention regarding ECS carnets forcommercial
samples, which wasdesigned tofacilitate thetemporary importation ofcommercial samples duty-free. In
view ofthesuccess oftheECS carnet, in1961 thePermanent Technical Committee established theCustoms
Convention ontheATA carnet forthetemporary admission ofgoods. This carnet canbeused notonly for
commercial samples butalsoforgoods temporarily imported under
-- other international Conventions concerning temporary admission towhich theState concerned isa
Contracting Party (e.g. Conventions onprofessional equipment, onexhibitions andfairs, etc.);
-- national regulations ontemporary admission.
TheATA Convention seeks toeliminate thetwomain difficulties encountered whenever goods are
temporarily imported, namely theneed tomake outacustoms declaration onanational form andthenecessity
offurnishing security forthepayment ofthecustoms duties andother taxes chargeable incase offailure
tore-export. This double aimisachieved bytheATA carnet which isaninternational customs document
issued andguaranteed byassociations approved bythecustoms andaffiliated toaninternational chain (e.g.
Chambers ofCommerce). Some years ago,itwasdecided thattheATA carnet should replace theECS carnet,
inview ofthelatter 'slimited scope. This replacement hascontinued progressively andnow only one
international document isinusefortemporary duty-free admission operations. TheATA Convention will
beterminated andreplaced byAnnex AoftheIstanbul Convention
8. Customs Convention ontheinternational transit ofgoods (ITIConvention) (notinforce)
This Convention wasprepared todeal with emerging patterns ininternational traffic, particularly
thewide spread useofintermodal freight containers. Thebasic aimoftheConvention istoprovide thecustoms
with thepossibility ofcarrying outtheir essential controls without creating transport delays, thuspermitting
transport operators toenjoy fully theadvantages ofthethrough-transport concept.
9. Customs Convention oncontainers
TheConvention hastwomain objectives. First, itprovides fortemporary importation ofcontainers,
freeofimport duties andtaxes, andfreeofimport prohibitions andrestrictions ifre-exported within three
months from thedateofimportation; such temporary admission ofcontainers shall begranted without the
production ofcustoms documents being required ontheir importation andre-exportation andwithout the
furnishing ofaform ofsecurity (Articles 3-11).G/C/W/80
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Secondly, theconvention provides forapproval ofContainers fortransport under customs seal.
Containers approved byaContracting Party ascomplying with therelevant provisions laiddown inthe
Convention shall beaccepted byother Contracting Parties foranysystem ofinternational carriage involving
such sealing. TheConvention alsolaysdown standards fortheconstruction ofcontainers.G/C/W/80
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Annex VII: WCO RECOMMENDATIONS
1. Recommendations concerning co-operation between administrations
a. Recommendation concerning thetreatment ataninternational level ofcustoms technical
questions, (30November 1956)
b. Recommendationonthecommunicationofinformationconcerningthecustomsstatusofgoods,
(22May 1963)
c. Recommendation tofacilitate thetemporary exportation ofgoods sentfrom onecountry of
manufacture, processing orrepair inanother, (3December 1963)
d. Recommendation concerning thetechnical co-operation incustoms matters, (18June 1981)
2. Recommendations concerning duty reliefs, repayments andremission
a. Recommendation concerning therepayment orremission ofduties ongoods refused bythe
importer asnotconforming tocontract, (28November 1957)
b. Recommendation concerning tax-free shops, (16June 1960)
c. Recommendation concerning therepayment orremission ofimport duties andtaxes ongoods
destroyed orlost, (5December 1962)
d. Recommendation concerning thefreeadmission ofremovable articles imported ontransfer
ofresidence, (5December 1962)
e. Recommendation concerning therefund ofimport duties andtaxes onshortages, (5December
1962)
f. Recommendation concerning reimported goods, (6June 1967)
g. Recommendation concerning thefreeadmission ofgiftconsignments (11June 1968)
h. Recommendation toexpedite theforwarding ofrelief consignments intheevent ofdisasters
(8June 1970)
i. Recommendation onthecustoms treatment ofproducts imported fortesting, (5June 1972)
3. Recommendations concerning transport, travel andtourism
a. Recommendation concerning theuseoftemporary importation papers inrespect ofradio and
television vans, (1December 1955)
b. Recommendation onthetemporary admission ofradio andtelevision vans, (9June 1977)
c. Recommendation onthetemporary admission ofradio andtelevision production and
broadcasting equipment, (13June 1985)G/C/W/80
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d. Recommendation concerning thecustoms treatment ofprovisions carried inrestaurant cars,
Pullman cars, sleeping carsandsimilar carsoninternational express trains, (16June 1960)
e. Recommendation concerning thecustoms treatment ofregistered baggage carried byrail,
(5June 1962, amended on21June 1988)
f. Recommendation concerning customs sealing systems inconnection with theinternational
transport ofgoods, (11June 1968)
g. Recommendation concerning theapplication ofaflatrateassessment system togoods sent
insmall consignments toprivate individuals orcarried intravellers ’baggage (flat rate
assessment), (11June 1968)
h. Recommendation forasimplified customs control, based onthedual channel system, of
passengers arriving byair,(8June 1971)
i. Recommendation forasimplified customs control, based onthedual channel system, of
passengers arriving bysea,(5June 1972)
j. Recommendation concerning lighters carried bylashorsimilar-type vessels (5June 1992)
k. Recommendation concerning measures tofacilitate theapplication oftheITIConvention,
(18May 1973)
l. Recommendation concerning thetemporary admission ofspecial equipment carried invehicles
used forinconnection with thetransport ofradio-active materials, (9June 1977)
m. Recommendation concerning theestablishment oflinks between customs transit systems, (16
June 1982)
n. Recommendation concerning theacceptance ofATA carnets inconnection with temporary
admission, (25June 1992)
o. Recommendation concerning theacceptance ofCPD carnets inconnection with temporary
admission, (25June 1992)
4. Recommendations concerning computers
a. Recommendation concerning thetransmission andauthentication ofgoods declarations which
areprocessed bycomputer, (16June 1981)
b. Recommendation concerning theproduction ofgoods declarations bymeans ofcomputer
orother automatic printers, (16June 1982)
c. Recommendation concerning theuseoftheISOAlpha-2 country code fortherepresentation
ofnames ofcountries, (16June 1982)
d. Recommendation concerning theuseofcodes fortherepresentation ofmodes oftransport,
(16June 1982)
e. Recommendation concerning theuseofcodes fortherepresentation ofdata elements, (22
May 1984)G/C/W/80
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f. Recommendation concerning theuseofUN/EDIFACT rules forelectronic datainterchange,
(26June 1990)
g. Recommendation concerning theuseoftheUnited Nations Trade Data Elements Directory
(UNTDED), (26June 1990)
h. Recommendation concerning theuseoftheCCC/IATA datainterchange standards, (21June
1988)
i. Recommendation concerning theadherence tostandards inrelation todatarequirements for
advance passenger information (API), (6July 1993)
j. Recommendationconcerningthetransmissionandauthenticationofcustomsinformationwhich
isprocessed bycomputer.
5. Other recommendations
a. Recommendation onsamples toberegarded asbeing ofnegligible value within themeaning
oftheinternational convention tofacilitate theimportation ofcommercial samples and
advertising materials, (30November 1956)
b. Recommendationconcerningtheadoptionofalayoutkeyforthegoodsdeclaration(outwards),
(1June 1965)
c. Recommendation concerning theright ofappeal incustoms matters, (6June 1967)
d. Recommendation concerning theadoption ofastandard form ofcertificate oforigin, (16
January 1973)
e. Recommendation concerning customs requirements regarding commercial invoices, (16May
1979)
f. Recommendation concerning thesingle goods declaration, (26June 1990)
g. Recommendation concerning theuseoftheglossary ofinternational customs terms, (6.July
1993)G/C/W/80
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Annex VIII: WCO INTERNATIONAL CUSTOMS NORMS
1. Right ofAppeal incustoms matters
2. Clearance ofgoods forhome use.Thedeclarant andthedeclaration ofgoods
3. Information concerning thetariff classification ofgoods, supplied byandbinding onthecustoms
administration (tariff information)
4. Payment orremission ofimport duties andtaxes ongoods destroyed orlost
5. Repayment orremission ofimport duties andtaxes ongoods believed tobecontained inaconsignment
which, after clearance, isfound nottohave contained those goods atthetime ofimportation (Repayment
ofimport duties andtaxes onshortages)
6. Free admission ofremovable articles imported byanatural person ontransfer ofresidence from one
country toanother (Free admission ofremovable articles)
7. Temporary admission procedure
8. Customs warehousing procedure
9. Customs transit ofimported goods
10. Drawback
11. Facilities granted inrespect ofre-imported goods, other than goods under thetemporary exportation
procedure (Re-imported goods)G/C/W/80
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Annex IX: DETAILED OVERVIEW OFUNCITRAL ACTIVITIES
A. Conventions
1. International saleofgoods andrelated transactions
Convention ontheLimitation Period intheInternational Sale ofGoods (New York, 1974) .
ThisConvention establishes uniform rules governing theperiod oftimewithin which legal proceedings
arising from aninternational sales contract must becommenced. Ithasbeen amended byaProtocol adopted
in1980 when theUnited Nations Sales Convention (seebelow) wasadopted. Both theoriginal Convention
andtheConvention asamended entered intoforce on1August 1988. There arecurrently 20States parties
totheConvention, ofwhich 14areparties totheConvention asamended.
United Nations Convention onContracts fortheInternational Sale ofGoods (Vienna, 1980)
ThisConvention establishes acomprehensive code oflegal rules governing theformation ofcontracts
fortheinternational saleofgoods, theobligations ofthebuyer andseller, remedies forbreach ofcontract
andother aspects ofthecontract. TheConvention entered intoforce on1January 1988. There arecurrently
45States parties totheConvention.
2. International transport ofgoods
United Nations Convention ontheCarriage ofGoods bySea, (1978) (the"Hamburg Rules")
This Convention establishes auniform legal regime governing therights andobligations ofshippers,
carriers andconsignees under acontract ofcarriage ofgoods bysea.Itwasprepared attherequest ofdeveloping
countries anditsadoption byStates hasbeen endorsed bysuch intergovernmental organizations asUNCTAD,
Asian-AfricanLegalConsultativeCommitteeandtheOrganizationofAmericanStates.TheConventionentered
intoforce on1November 1992. There arecurrently 25States party totheConvention.
United Nations Convention ontheLiability ofOperators ofTransport Terminals inInternational Trade
This Convention setsforth uniform legal rules governing theliability ofaterminal operator forloss
ofanddamage togoods involved ininternational transport while they areinatransport terminal, andfor
delay bytheterminal operator indelivering thegoods. Thedraft Convention wasadopted byadiplomatic
conference andopened forsignature, ratification andaccession on19April 1991. TheConvention willenter
intoforce upon thedeposit of5instruments ofratification, acceptance, approval oraccession. Uptonow
only 1instrument ofaccession hasbeen deposited.
3. International commercial arbitration andconciliation
Convention ontheRecognition andEnforcement ofForeign Arbitral Awards (New York, 1958)
Although theConvention wasprepared bytheUnited Nations prior totheexistence ofUNCITRAL,
promotion oftheConvention isanintegral partoftheCommission 'sprogramme ofwork. Asitsname indicates,
itprovides fortherecognition andenforcement ofarbitral awards rendered inforeign countries. Atpresent
110States areparty toit.G/C/W/80
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4.International Payments
United Nations Convention onInternational Bills ofExchange andInternational Promissory Notes (New York,
1988)
ThisConvention provides acomprehensive code oflegal rules governing newinternational instruments
foroptional usebyparties tointernational commercial transactions. Itisdesigned toovercome themajor
disparities anduncertainties thatcurrently exist inrelation toinstruments used forinternational payments.
TheConvention applies iftheparties useaparticular form ofanegotiable instrument indicating thatthe
instrument issubject totheUNCITRAL Convention. TheConvention wasadopted andopened forsignature
bytheGeneral Assembly atits43rd session inDecember 1988. 10ratifications oraccessions arenecessary
fortheConvention tocome intoforce. TheConvention hasbeen acceded toby2States todate.
United Nations Convention onIndependent Guarantees andStand-by Letters ofCredit (New York, 1995)
TheConvention wasadopted bytheGeneral Assembly on11December 1995 andisnow open for
signature andratification/accession. Itisdesigned tofacilitate theuseofindependent guarantees andstand-by
letters ofcredit, inparticular where only oneortheother ofthose instruments may betraditionally inuse.
TheConvention also solidifies recognition ofcommon basic principles andcharacteristics shared bythe
independent guarantee andthestand-by letter ofcredit. TheConvention willenter intoforce upon thedeposit
of5instruments ofratification, acceptance, approval oraccession.
Other instruments developed byUNCITRAL:
1.International saleofgoods andrelated transactions
UNCITRAL Legal Guide onInternational Countertrade Transactions
The purpose oftheLegal Guide, adopted in1992, istoassist parties negotiating international
countertradetransactions.Itidentifieslegalissuesinvolvedinsuchtransactionsanddiscussespossiblecontractual
solutions.
2.International commercial arbitration andconciliation
UNCITRAL Arbitration Rules (1976)
TheUNCITRAL Arbitration Rules provide acomprehensive setofprocedural rules upon which parties
may agree fortheconduct ofarbitral proceedings arising outoftheir commercial relationship. TheRules
arewidely used inmany contexts. Recommendations toassist arbitral tribunals andother interested bodies
with regard toarbitrations under theUNCITRAL Arbitration Rules (1982).
UNCITRAL Conciliation Rules (1980)
When parties toacommercial dispute wish tosettle their disputes amicably through conciliation,
they may agree upon thissetofprocedural rules togovern theconciliation proceedings. UNCITRAL Model
LawonInternational Commercial Arbitration (1985). TheUNCITRAL Model Lawisdesigned toassist States
inreforming andmodernizing their laws onarbitral procedure soastotakeintoaccount theparticular features
andneeds ofinternational commercial arbitration. Itwasadopted byUNCITRAL in1985 andhasalready
been enacted intolawbyaconsiderable number ofjurisdictions from bothdeveloped anddeveloping countries.G/C/W/80
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UNCITRAL Notes onOrganizing Arbitral Proceedings (1996)
TheNotes aredesigned toassist arbitration practitioners byproviding anannotated listofmatters
onwhich thearbitral tribunal maywish toformulate decisions during thecourse ofarbitral proceedings. The
text, which isinnowaybinding, may beused whether ornotthearbitration isadministered byanarbitral
institution.
3. International Payments
UNCITRAL Legal Guide onElectronic Funds Transfers
TheLegal Guide, which waspublished in1987, identifies thelegal issues arising from thetransfer
offunds byelectronic means anddiscusses possible approaches fordealing with those issues.
UNCITRAL Model Law onInternational Credit Transfers (1992)
TheModel Law, adopted in1992, deals withoperations beginning withaninstruction byanoriginator
toabank toplace atthedisposal ofabeneficiary aspecified amount ofmoney. Itcovers such matters as
theobligations ofasender oftheinstruction andofareceiving bank, time ofpayment ofareceiving bank
andliability ofabank toitssender ortotheoriginator when thetransfer isdelayed orother error occurs.
4. Electronic commerce
Recommendation ontheLegal Value ofComputer Records (1985)
UNCITRAL Model Law onElectronic Commerce
TheModel Law, adopted in1996, isintended tofacilitate theuseofmodern means ofcommunications
andstorage ofinformation, such aselectronic datainterchange (EDI), electronic mail andtelecopy, with or
without theuseofsuch support astheInternet. Itisbased ontheestablishment offunctional equivalent for
paper-based concepts such as"writing", "signature" and"original". Byproviding standards bywhich thelegal
value ofelectronic messages canbeassessed, theModel Law should play asignificant roleinenhancing the
useofpaperless communication. Inaddition togeneral norms, theModel Lawalsocontains rules forelectronic
commerce inspecific areas, such ascarriage ofgoods. With aview toassisting executive branches of
Governments, legislative bodies andcourts inenacting andinterpreting theModel Law, theCommission has
produced aGuide toEnactment oftheUNCITRAL Model Law onElectronic Commerce .
Other products ofthework ofUNCITRAL include:
Provisions onauniversal unitofaccount andonadjustment ofthelimit ofliability ininternational
transport conventions (1982);
Uniform Rules onContract Clauses foranAgreed Sum Due upon Failure ofPerformance (1983);
Assistance tocountries considering adoption oftexts
Onrequest, theUNCITRAL Secretariat isprepared togive technical assistance andadvice toStates
thatmaybeconsidering adoption ofoneofthelegal texts prepared bytheCommission. Such assistance often
involves review ofproposed legislation.G/C/W/80
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Training ininternational trade law
National andregional seminars oninternational trade law.TheCommission hasundertaken toorganize
national andregional seminars andbriefing missions oninternational trade lawforthepurpose ofpromoting
knowledge about thework oftheCommission, primarily indeveloping countries, with aview totheadoption
anduseofitstexts bythose countries.G/C/W/80
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Annex X:DETAILED OVERVIEW OFTHE IMO CONVENTION ONFACILITATION OF
INTERNATIONAL MARITIME TRAFFIC (FAL) AND ITSAMENDMENTS
Measures facilitate thearrival, stayanddeparture ofships ofcoastal andnon-coastal contracting States
bysimplifying andreducing toaminimum theformalities, documentary requirements andprocedures. This
includes alldocuments pertaining totheship anditspassengers, baggage, crew, cargo andmail which are
required byCustoms, Immigration, Health, andother public authorities.
TheAnnex totheConvention contains provisions relating tothearrival, stayanddeparture ofships
andpersons, health andquarantine, andsanitary measures forplants andanimals. These provisions aredivided
intoStandards andRecommended Practices, andthedocuments which should berequired byGovernments
arelisted. Countries thatcannot comply with standards must inform theIMO ofthedifferences between its
own practices andthestandards inquestion. Most important Standard oftheConvention isStandard 2.1,
which lists 8documents which public authorities candemand ofaship andrecommends themaximum
information andnumber ofcopies which should berequired. IMO hasdeveloped sixofthese documents.
These are:IMO general declaration, cargo declaration, ship’sstores declaration, crew’seffects declaration,
crew list,passenger list.
TheConvention hasbeen amended several times. Since 1973, the‘tacit acceptance ’procedure is
inforce, allowing foraneasier update oftheConvention. The1986 amendments were designed primarily
toreduce ‘redtape'andinparticular toenable automatic dataprocessing techniques tobeused inshipping
documentation. The1987 amendments simplify thedocumentation required byships including crew lists,
andalsofacilitate themovement ofships engaged indisaster relief work andsimilar activities. The1990
amendmentsreviseseveralrecommendedpracticesandaddothersdealingwithdrugtraffickingandtheproblems
ofthedisabled andelderly. They encourage theestablishment ofnational facilitation Committees andalso
cover stowaways andtraffic flow arrangements. The1992 amendments concern theAnnex totheConvention
anddealwiththefollowing subjects: electronic dataprocessing/electronic datainterchange (EDP/EDI), private
giftpackages andtrade samples, consular formalities andfees, submission ofpreimport information, clearance
ofspecialized equipment, AND falsified documents. The1993 amendments (totheAnnex totheConvention)
deal with unmanifested parcels andthehandling ofstowaways.
The1996 amendments have entered intoforce on1May 1997. Theamendments affect standards
andrecommended practices contained intheannex anddealwith thefollowing subjects: thePassenger List;
theestablishmentofnationalmaritimetransportfacilitationcommittees;thedevelopmentofprocedures,including
electronic data interchange (EDI), toallow forthesubmission ofadvance information toenable theuseof
selectivity techniques tofacilitate customs clearance; andthedeclaration ofthepersonal effects ofcruise
passengers. New standards have been added concerning inadmissible persons; theobligations ofshipowners
totransportpersons;andco-operationbetweenGovernmentsandshipownerstoestablishthevalidityofpassports
andvisas. Anew recommended practice hasbeen added onimmigration pre-arrival clearance.
Other tasks ofIMO andinternational cooperation
Inorder toassure widespread implementation ofitsConventions andother legal instruments, IMO
hasdeveloped atechnical co-operation programme which isdesigned toassist Governments which lackthe
technical knowledge andresources thatareneeded tooperate ashipping industry successfully. TheIMO
entertains consultative relationships with other UNagencies, aswellaswith intergovernmental organizations
such astheWCO andtheOECD. Among non-governmental organizations which work onfacilitation related
issues, theIMO cooperates with theIAPH, ISO, ICC, ICS, andIRU.G/C/W/80
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Annex XI: ICC INTERNATIONAL CUSTOMS GUIDELINES
Keypoints oftheICCInternational Customs Guidelines include that:
-- Customs should relymuch more onautomation andelectronic information systems;
-- Documentation requirements should bereduced andharmonized between countries. Commercial
documents should beaccepted bycustoms administrations asexport declaration instead ofcompletion
ofanofficial form; electronic datasubmission based onEDIshould beoptional.
-- Modern clearance techniques should beapplied, suchaspre-arrival clearance andpost-clearance
controls toavoid delays attheborders. Automation forpayments should beinplace.
-- Theworkforceshouldbehighlyprofessionalandwell-trained;aninternalsecurityunitshouldscrutinize
employee integrity.
-- Customs Regulations should betransparent andpublicly available. Toimprove cooperation between
traders andcustoms Memoranda ofUnderstanding should beconcluded. Business should haveaccess
tohighlevelofficials inside thecustoms authorities. Ombudsmen should beappointed toserve as
channels between customs administrations andthebusiness community.
-- International agreements should beadhered to.Agreements mentioned aretransit agreements, the
WTO Valuation Agreement, theHSConvention, theKyoto Convention, the(future) WTO Rules
ofOrigin.G/C/W/80
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Annex XII: ICCBUSINESS TOOLS
ICCINCOTERMS ,13standard trade definitions withclearly laidoutlegal obligations forusein
contracts. TheuseINCOTERMS, currently inits1990version, eliminates thepossibility ofmisunderstanding
anddispute. UN/ECE advocates theuseofINCOTERMS initsTrade Facilitation Recommendation #5.
UCP(Uniform Customs andPractice forDocumentary Credits) ,which isawidely followed system
intheconduct ofsettling payments forimports andexports through documentary credit operations. Itslatest
version, UCP 500hasbeenineffect since 1994.
DOCDEX(DocumentaryCreditExpertiseSystem),asystemthatseekstoprovideindependent,impartial
andexpert recommendations toresolve disagreements overletters ofcredit.
Jointly withUNCTAD, theICCdeveloped Rules forMultimodal Transport Documents .These rules,
based ontheHague andHague-Visby rules forliability, areintended tohelptheuseravoid amultiplicity
ofdifferent regimes governing multimodal transport. TheUNCTAD/ICC rules canbeusedbyoperators
asabasis foramultimodal transport contract.
UNCID (Uniform Rules ofConduct forInterchange ofTrade DatabyTeletransmission) ,which aims
atfacilitating theinterchange oftradedataeffected byteletransmission, through theestablishment ofagreed
rulesofconduct between parties engaged insuchtransmission. TheUNCID rulesareincluded IntheUnited
Nations Trade DataInterchange Directory (TDID).
TheICCModel Distributorship Contract ,which provides asetofuniform contractual rules for
distributorshipagreementswheredistributorsactasbuyers-resellersandasimporterswhoorganizedistribution
inacountry.
TheICCModel Agency Contract ,which incorporates prevailing international trade practice and
principles generally recognized bydomestic lawswithregard toagency agreements.
Itiscurrently designing an“ICCModel SaleContract ”forinternational merchandise trade.
Incooperation withtheWCO, theICCadministers theATACarnet System (duty-free temporary
import ofgoods).G/C/W/80
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Annex XIII: ADDITIONAL INFORMATION ONIRUACTIVITIES
TheIRUiscurrently producing IRUstandard models forinternational Road transport ,andaIRU
standard contract model forco-operation between freight forwarders androadtransport operators inthe
framework ofinternational transport .
TheIRUoperates agreat dealthrough lending itsexpertise onroadtransport matters tovarious
international bodies. Itworks closely withtheInland Transport Committee oftheUNECE, where ittables
proposals onissues including customs affairs, transit ofthirdcountries, vehicle construction, roadsafety,
thecarriage ofdangerous goods andofperishable foodstuffs, andcombined transport. Thenumerous
international conventions signed under theauspices oftheUnited Nations havebeendrafted withtheactive
participation ofIRUexperts. They include: theConvention ontheContract fortheInternational Carriage
ofGoods byRoad (CMR ),andtheEuropean Agreement concerning theCarriage ofDangerous Goods by
Road (ADR) .Granted consultative status byUNEconomic andSocial Council in1949, theIRUactively
participates inthework oftheEconomic Commissions forLatin America, forAfrica, andforAsiaandthe
Pacific, aswellasinthatoftheUNConference forTrade andDevelopment (UNCTAD). Liaison Committees
withtheEUexistonprofessional transport ofpersons, professional transport ofgoods, andtransport on
ownaccount. Moreover, theIRU isactively cooperating withtheWCO, theICC,andother professional
organizations.G/C/W/80
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Annex XIV: FIATA TRADE FACILITATION DOCUMENTS
FIATA represents theinterests ofthefreight forwarding industry through participation asadvisers
orexperts inmeetings ofinternational bodies dealing withtransportation. FIATA isglobally recognized
astheofficial representative organization forfreight forwarding service. Through itsmembers andits2300
associate members (individual freight forwarders), FIATA isestimated toreach outtosome40,000 companies
worldwide
FIATA trade facilitation documents:
-- FIATA FBL(Negotiable FIATA Multimodal Transport BillofLading) which isrecognized bythe
ICCanditsmembers worldwide;
-- FIATA FWR (FIATA Warehouse Receipt);
-- FIATA FCR (FIATA Forwarders Certificate ofReceipt);
-- FIATA FCT(FIATA Forwarders Certificate ofTransport);
-- FIATA FFI(FIATA Forwarding Instructions);
-- FIATA Model Rules ofFreight Forwarding Services;
-- FIATA SDT(FIATA Shippers Declaration fortheTransport ofDangerous Goods);
-- TheAirWaybill recommended byFIATA forusebyFreight Forwarders.
The“FIATA Customs Clearance Manual ”,intended fordaily useoffreight forwarder, isbased on
theKyoto Convention andtheHarmonized System. The“Facilitation Manual ”isbased onRecommendations
bytheUNECE WP.4.
Other FIATA activities
Assistance tothefreight forwarding industry through training (e.g.ThejointIATA/FIATA training
programme toeducate freight forwarders inthehandling ofaircargo), helpwithliability insurance problems
andimplementation advice forelectronic datainterchange. ForallFIATA transport documents existEDI
messages based onUN/EDIFACT. ForEDItransmission ofFIATA documents, EDIFOR (EDI forthe
Forwarding Industries) guidelines were developed byFIATA.
FIATA ’sworkisorganized inso-called “Institutes ”,working groups thatidentify problems incertain
sectors, andwork towards solutions, either through international organizations orthrough direct contact with
administrations. Three institutes existpresently:
*Multimodal transport Institute
*Airfreight Institute
*Customs andFacilitation Institute.G/C/W/80
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Annex XV: UNITED NATIONS CONVENTIONS RELATING TOTRADE FACILITATION
- Convention onTransit Trade ofLand-Locked States, 1965
- Agreement providing fortheprovisional application oftheDraft International Customs Conventions
onTouring, onCommercial Road Vehicles andontheInternational Transport ofGoods byRoad,
1949
- AdditionalProtocoltotheAgreementprovidingfortheprovisionalapplicationoftheDraftInternational
Customs Conventions onTouring, onCommercial Road Vehicles andontheInternational Transport
ofGoods byRoad, 1949
- AdditionalProtocoltotheAgreementprovidingfortheprovisionalapplicationoftheDraftInternational
Customs Conventions onTouring, onCommercial Road Vehicles andontheInternational Transport
ofGoods byRoad, relating totheinternational transport ofgoods bycontainer under theTIRCarnet
Régime, 1950
- Additional Protocol amending certain provisions oftheAgreement providing fortheprovisional
applicationoftheDraftInternationalCustomsConventionsonTouring,onCommercialRoadVehicles
andontheInternational Transport ofGoods byRoad,1952
- InternationalConventiontoFacilitatetheImportationofCommercialSamplesandAdvertisingMaterial,
1952
- Convention concerning Customs Facilities forTouring, 1954
- Additional Protocol totheConvention concerning Customs Facilities forTouring, relating tothe
Importation ofTourist Publicity Documents andMaterial, 1954
- Customs Convention ontheTemporary Importation ofPrivate Road Vehicles.
- Customs Convention onContainers, 1956
- Customs Convention ontheTemporary Importation ofCommercial Road Vehicles, 1956
- Customs Convention ontheTemporary Importation forPrivate UseofAircraft andPleasure Boats,
1956
- Customs Convention concerning Spare Parts usedforrepairing Europe Wagons, 1958
- Customs Convention ontheInternational Transport ofGoods under Cover ofTIRCarnets (TIR
Convention), 1959
- European Convention onCustoms Treatment ofPallets Used inInternational Transport, 1960
- Customs Convention ontheInternational Transport ofGoods under Cover ofTIRCarnets (TIR
Convention), 1975
- International Convention ontheHarmonization ofFrontier Controls ofGoods, 1982
- Convention onCustoms Treatment ofPoolContainers Used inInternational Transport, 1994G/C/W/80
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- International Convention toFacilitate theCrossing ofFrontiers forGoods carried byRail, 1952
- United Nations Convention ontheCarriage ofGoods bySea,1978
- United Nations Convention onInternational Multimodal Transport ofGoods, 1980