RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/240
31 October 2000
(00-4553)
Council for Trade in Goods Original:  Spanish
TRADE FACILITATION
Document on the Position Taken by Costa Rica on Trade Facilitation
in the Context of its Trade Relations
The following communication, dated 26 October 2000, has been received from the Permanent
Mission of Costa Rica.
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Introduction
Trade facilitation should be a key element of any national development policy.  There must
obviously be a close correlation between open market economies and trade facilitation measures.
The gradual liberalization of trade has proved to be a way of opening up markets.
Nevertheless, an open market can only function properly if trade facilitation procedures are
established which enable all countries to participate effectively in the global economy.
In this connection, business and trade facilitation strategies in general must be a component of
any national policy of liberalization and overall development.
Costa Rica's position on trade facilitation
Costa Rica attaches great importance to the theme of trade facilitation in the context of
multilateral and regional negotiations, and in connection with the free-trade agreements currentlybeing negotiated with Canada and Panama.  The streamlining and harmonization of trade procedures
are factors which undoubtedly foster trade facilitation between countries, while at the same time
contributing to the gradual elimination of barriers to trade in goods and services in the context of their
bilateral, regional and multilateral relations.
Accordingly, Costa Rica recognizes and supports the efforts currently being made in this area
within other international organizations and forums, such as the WTO and the Free-Trade Area of the
Americas, the latter in relation to business facilitation.
It is precisely in the FTAA context that Costa Rica has played a very active role in seeking to
implement the business facilitation measures advocated by the FTAA Ministerial Meeting held in
Toronto, Canada, in November 1999.
With this aim in view, the Costa Rican customs administration is currently working to
complete the implementation of business facilitation measures relating to clearance of express
consignments, electronic data interchange and development of risk assessment systems in its customs
control procedures.G/C/W/240
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Moreover, Costa Rica has already fully implemented other facilitation measures, such as the
establishment of customs procedures to facilitate the entry of promotional documents and other goods
related to business travel  Simplified, streamlined and expeditious procedures have been established
for low value shipments and the Harmonized Commodity Description and Coding System has beenbrought into use.
Similarly, taking into account the growing importance of this topic at national level, in the
context of its negotiation of a free-trade area with Canada, Costa Rica recently began work on the
development of a regulatory framework with specif ic provisions on trade facilitation as a means of
eliminating trade barriers and promoting a freer and smoother exchange of goods, services,
investments and business persons.  We hope thereby to contribute to the progress of work under wayat multilateral and subregional level, providing a positive and timely signal with regard to the
importance of this topic in global trade.
To this end, we are seeking to establish a set of objectives and/or principles as a basis for
defining specific measures to be developed for trade facilitation purposes.
The following are some of the principles concerned:
- Efficiency, simplification and facilitation of trade procedures:  with a view to improving and
expediting management practices and procedures and, in particular, rationalizing andsimplifying customs requirements and formalities so as to streamline the movement and
clearance of goods and contribute to easing the administrative and financial burdens that have
to be borne by commercial operators.
- Harmonization and consistency:  the aim is to promote, as far as possible, the adoption of
common requirements and formalities, where appropriate on the basis of existing
international standards and instruments.
- Transparency:  the aim is to improve access to information and achieve greater awareness,
clarity and predictability with regard to the requirements and procedures relevant to
international trade.  Commercial operators should be given access to all information
concerning the customs requirements they must satisfy, e.g. information needed for importand export transactions or customs requirements for the entry and exit of goods and persons.
Updated information should be made available to users on an Internet site.  In addition, a
computerized facility should be established to consolidate information exchanges between
customs administrations.
- Integrity:  here, the purpose is to promote the reform and modernization of national systems,
including operations and staff management, in order to raise the standard of integrity in
bodies concerned with international trade.
- Cooperation:  the aim would be to promote co operation and technical assistance, in order to
guarantee compliance with the trade facilitation measures that are adopted.
- Modern and flexible customs control systems based on risk evaluation techniques (balance
between facilitation and control).  It is recommended that post-clearance customs control
systems be developed which take account of appropriate and effective inspection methodsbased on risk assessment and auditing techniques.  Intelligent selection methods should be
used in order to focus controls and enforcement efforts on high-risk goods and travellers,
while at the same time facilitating the clearance and movement of low-risk goods and
travellers.G/C/W/240
Page 3
- Customs cooperation and technical assistance:  cooperation should centre on the
modernization of the national customs and technical training services.
- Publication of advance requirements by the customs authorities:  procedures would be
established for the publication of advance requirements in respect of tariff classification,
applicable taxes and fees, non-tariff measures and import and export requirements for goods
subject to customs operations before they have been imported into or exported from the
national territory.
These regulations are intended to provide a cl ear and transparent legal framework for the
promotion of facilitation measures under the bilateral agreement.
Costa Rica will continue promoting, at regional, hemisphere and multilateral level, the
development of specific principles and activities designed to further the concrete implementation of
trade facilitation measures.
For a small and open economy like that of Costa Rica, whose economic growth is based on
increasing foreign trade and attracting foreign direct investment, it is vitally important to improve
business competitiveness and enhance trade facilitation mechanisms.
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