WORLD TRADE
ORGANIZATIONG/C/W/393
11 July 2002
(02-3878)
Council for Trade in Goods
TRADE FACILITATION NEEDS AND PRIORITIES OF MEMBERS
Compilation of existing material by the Secretariat
I. Introduction
At the meeting of the Council for Trade in Goods of 23 May 2002, Members requested the
Secretariat to prepare a compendium of the existing material on Members' trade facilitation needs and
priorities, available at the Secretariat. The reques t relates to delegations' work on the identification of
their trade facilitation needs and priorities, especially those of developing and least developed
countries, as mandated by paragraph 27 of the Doha Ministerial Declaration. The following
compilation aims at meeting this request. As suggested by Members, it provides an overview ofrelevant information contained in Members' submissions to the Secretariat, as well as of related
material embodied in the reports on the 1998 Trade Facilitation Symposium and the 2001 Technical
Assistance Workshop. It also considers relevant submissions by other organizations to the extent
possible.
II. Structure
The existing material was grouped into four categories:
A) National experience papers;
B) Other relevant submissions by Members;
C) Reports on the 1998 Symposium and the 2001 Workshop;D) Relevant submissions by other organizations
Each category is dealt with in a separate section, presenting the material in a table outlining a)
author, b) document number and c) a summary of main points relating to trade facilitation needs and
priorities. As for the applied time-frame, the paper covers all relevant inputs since the beginning ofWTO work on trade facilitation following the Singapore Ministerial.
In the light of the fact that most of the examined material does not address trade facilitation
needs and priorities of Members per se , but rather focuses on particular experiences with trade
facilitation measures and programs, or proposes approaches to future WTO work on this subject, thepresent compilation had to approach their identifi cation in a somewhat indirect manner, basing its
references primarily on information regarding trade facilitation programs/measures proposed or
executed, as well as on what has been presented as main obstacles to the facilitation of trade.
Whilst the paper tries to cover all relevant information, its nature as a compendium requires it
be limited to an overview of the main points raised in the submissions, without extending to an
exhaustive examination of each and every document.This document has been prepared under the Secretariat's ownresponsibility and without prejudice to the positions of Members
and to their rights and obligations under the WTOG/C/W/393
Page 2III. Sources
A) National experience papers
A total of 16 national experience papers have been submitted by the following 10 delegations: Australia (2), Canada (1),  Chile  (1), Costa Rica (1), Czech
Republic (1), Guatemala (1), Hong Kong China (2), Korea (4), Mald ives (1), Norway (1) and Switzerland. Most of them present exp eriences in introducing
measures to facilitate trade. References to trade facilitation needs have been mostly taken from what delegations described as the main problems in this area.
Indications of priorities are based on the presentation of key trade facilitation measures undertaken by delegations.
Member Document number Main points related to trade facilitation needs and priorities
Australia G/C/W/233 Key expectations: (i) government intervention by exception in customs clearance; (ii) customs information
requirements kept to the minimum necessary for risk management and statistical purposes; (iii) fast, reliable,
adaptable, flexible, paperless, cost-efficient best practice processes, including risk management, post-transaction
auditing, pre-arrival reporting and the use of information t echnology; (iv) transparency, predictability and consistency
in procedures developed and adopted by governments in consultation with traders. Future directions: a) cargomanagement re-engineering; b) business partnerships; Recognition of importance of capacity building and technical
assistance;
Australia G/C/W/263 Delivery of technical assistance and capacity building to modernize and reform customs processes and procedur es in
less developed countries whilst ensuring consistency with WTO and WCO conventions and principles; Importance of
simplifying, harmonizing and improving customs procedures; Need for a strategic and planned approach to improve
the delivery of technical assistance, consistent with existing international conventions;
Canada G/C/W/238 Demand for fast and predictable release of goods and measures to facilitate the flow of services and travelers a cross
national borders; Need to undertake modernization of border management process and customs practices; Need forreform of import and export procedures, including elimination of unnecessary processing steps, simplification and
elimination of certain forms, streamlining of document processing flow and adoption of international codes.
Importance of more appropriately applied enforcement tools and for greater coordination among the various
stakeholders. Examples of trade facilitation measures implemented: (i) innovative customs line release systems, (ii)
use of e-commerce and electronic interfaces, (iii) low-value shipment program, (iv) Accelerated Customs ReleaseOperations Support System, (vi) single window, (vii) binding advance rulings, (viii) right of appeal, and (ix) risk
assessment approach;
Chile G/C/W/239 Need to modernize and streamline customs administrations based on the use of information technology;
Implementation of Electronic Data Interchange system in order to have (i) less paper-based inputs to the customsprocess, (ii) longer opening hours, (iii) shorter processing times, (iv) release of staff from repetitive duties, (v) better
inspection and control capacity, (vi) shorter time of goods in warehouses and (vii) interconnection of organizations
involved in foreign trade; Expected benefits from new t echnological developments such as a) improvement in the
logistical chain, improved transparency in customs operations, costs savings and release of staff engaged in
administrative duties;G/C/W/393
Page 3Costa Rica G/C/W/265 Need to reform and modernize customs; Adoption of reforms by setting measures in the area of a) organization al
restructuring b) inspection and automation c) customs proced ures and d) legislation; Implementation of measures like
(i) risk-assessment and control techniques; (ii) processing prior to arrival or advance goods clearance; (iii) in-works
and commercial clearance; (iv) automation of customs clearance procedures; (v) establishment of Users' Committee;and of (vi) National Deregulation Commission; (vii) Single Window for Foreign Trade; (viii) enhancement of
transparency and predictability; (ix) creation of investors' manual;
Czech Republic G/C/W/247 Need to establish modern and effective customs service, ensure training, establish good communications b etween
customs offices, modernize and computerize customs procedures as well as to create appropriate environment fordevelopment. Objective of enhancing the effectiveness of customs and performing tasks more quickly, reliably and in
a less costly way; Measures implemented: (i) Digitalization of data submissions; (ii) new customs transit system, (iii)
simplified procedures, (iv) electronic customs clearance;
Guatemala G/C/W/248 Importance of simplificati on and harmonization of international trade procedures to facilitate trade flows an d reduce
obstacles to international trade. Setting up of Tax Administration Office as one of the most important domestic
measures to modernize trade procedures in customs administ ration and bring them into conformity. Objectives of new
customs model to facilitate trade: (i) update and systematization of customs legislation; (ii) establishment of flexible,secure and automated procedures for foreign trade; (iii) introduction of computer system capable of processing
information related to customs procedures in a timely, reliable and automated way; (iv) remodeling and building up of
customs infrastructure adapted to the new procedures; and (v)coordination and setting up of technical assistance
mechanisms with other countries and international orga nizations for transmission of information and training;
Hong Kong, China G/C/W/125 Trade facilitation measures adopted: (i ) conduct of performance pledges and establishment of customer liaison groups
to improve quality of services to traders; (ii) simpli fication of licensing procedures and requirements; (iii)
introduction of Interactive V oice Response System and creation of a Homepage for public access to information in
order to enhance transparency in licensing procedures; (iv) increased transparency in customs procedures and
requirements; (v) introduction of EDI Service for government trade documents to promote the application ofelectronic commerce;
Hong Kong, China G/C/W/231 Measures implemented to facilitate trade:  (i) improved quality of services to traders; (ii) enhanced t ransparency in
licensing and customs procedure and requirements; (iii) simplified licensing procedures and requirements; (iv)
liberalization of trade; (v) introduction of Electronic Data Interchange Service for government trade documents; (vi)
faster boundary crossings; (vii) pre-arrival clearance to enable speedy customs clearance and (viii) cooperation with
other customs administrations;
Korea G/C/W/123 Importance of guaranteeing efficient trade flows through computerization and simplified work processes; Measures
undertaken to simplify, harmonize and computerize custom s clearance system: (i) reform of the Import Clearance
System, covering the a) reforming of the Import Declarat ion System; b) valuations procedures; and c) post-entry
investigation of imported goods; d) introduction of EDI-bas ed Cargo Selectivity System; e) introduction of On-Dock
Immediate Delivery System; and f) simplification of checklist for eligibility for importation; (ii) computerization of
customs procedures;G/C/W/393
Page 4Korea G/C/W/134* Measures related to the facilitation of cargo move ment such as (i) bonded transportation; (ii) surveillance and control
of cargoes entered, covering both prevention and exposure of customs offences; (iii) post-entry investigations of
goods imported, by measures such as on-the-spot investigation into contracts, invoices, account books, records, and
any other books relating to the transaction at the importer's office;
Korea G/C/W/146 Importance of reforming customs administration an d customs procedures in order to (i) induce foreign direct
investment, (ii) enhance the competitiveness of domestic enterprises,  reach a level of transparency and rationality
compatible with international standards in customs administration. Measures undertaken: a) Introduction of the
Omnibus Bonded Area System; b) intr oduction of immediate release system; c) implementation of paperless import
customs clearance system; d) extension of the duration of storage of goods for transit cargoes;
Korea G/C/W/212* Simplifying customs clearance procedures and harmonizing international standards as essential means to facilitat e
trade flows. Efforts made to facilitate trade: (i) implementation of paperless import clearance system with the aim to
simplify import clearance procedures and expedite logistics flows; (ii) extended implementation of the On-Dock
Immediate Delivery System;
Maldives G/C/W/232* Measures taken by the Customs Service to si mplify customs procedures and documentation by streamlining the
system (i) introduction of Electronic Data Interchange Service, Direct Trader Input and Wide Area Network, leading
to more efficient use of human resources, strengthening of customs procedures; easier and faster clearance,
facilitation of clients' submissions and of generation of timely and up-to-date statistics for customs; (ii)
implementation of the HS Tariff Nomenclature; (iii) launching of Customs Website, providing access to information
regarding external trade regulations and the customs service;
Norway G/C/W/221+ Add.1 Importance of simplifying import and export proc edures as well as other customs related procedures to low er costs
and enhance benefits of trade for national authorities, traders and society at large. Introduction of measures oncustoms facilitation in the areas of electronic customs procedures and the development of a computerized transit
system such as (i) implementation of electronic customs clearance system, leading to paperless goods transit and
electronic communication, and of a (ii) computerized transit system. Need to modernize transit procedures through
computerization to make exchange of information more secure and information more reliable; Implementation and
monitoring of security measures of vital importance to achieve and maintain reliable and secure operation of transit;
Switzerland  G/C/W/234 Need to achieve coherence between simplifying  customs procedures and internal administrative provisions; m easures
introduced to achieve this goal: introduction of (i) new computerized transit system; (ii) common transit zone;  (iii)stepped-up procedures; (iv) better co-ordination of procedures; (v) more liberal and transparent legislation; (vi) client
orientation; Importance of a) transparency; b) necessity to improve co-ordination between customs and administrative
bodies; c) recourse  to international standards or equal recognition of national standards in their absence; d)
harmonization of technical regulations, recognition of conformity assessment procedures and e) mutual
acknowledgement of documents and data contained therein, in combination with advances in electronic data
processing;
Note: Documents marked with an * refer to submissions dealing with trade facilitation programs and related experiences without being explicitly labeled as "experience papers".G/C/W/393
Page 52) Other submissions by Members of relevance
Communications listed under this category contain mainly proposals for future work. Like in the previous section, references to  trade facilitation needs
are mostly based on what Members present as main problems in the facilitation of trade. Indications of priorities have been tak en from proposed measures to
facilitate trade.
Member Document number Main points related to trade facilitation needs and priorities
Australia G/C/W/152 Importance of electronic reporting in trade facilitation; need to reduce or eliminate the requirement for pap er
documentation for customs and other cross-border trade administration as well as other documents for
international trade; importance of removing unnecessary or inefficient government data requirements; need forfast, reliable, flexible, harmonized, cost-efficient and largely paperless systems; need to raise the level of use of IT
systems for communicating to regulatory bodies; Necessity to consider the whole trade transaction process from
the point of quotation to the point of payment with both  official procedures and commercial practices included;
Canada G/C/W/126 Suggestions for specific trade facilitation measures: (i) quick release of goods; (ii) use of risk assessment
principles for border inspections and post-entry verifi cation, (iii) border agency coordination; (iv), harmonization
of import documents and data required for the release of  merchandise using existing international standards where
appropriate; (v) simplified and streamlined clearance requirements and procedures for commercial samples and
goods for exhibition; (vi) express consignment clearance; (vii) simplified procedures for low value shipments;
(viii) use of compatible Electronic Data Interchange (EDI) systems; (ix) use of advance rulings; (x) access to
unbiased administrative appeal process; (xi) making national laws, regulations, administrative policies and
guidelines readily available to the international trading community;
Costa Rica G/C/W/240 Objectives for defining specific trade facilitation measures: (i) efficiency, simplification and facilitatio n of trade
procedures; (ii) harmonization and consistency of requirements and formalities; (iii) transparency andpredictability regarding trade procedures; (iv) integrity; (v) cooperation; (vi) modern and flexible customs control
systems based on risk evaluation techniques; (vii) modernization of national customs and technical training
services; (viii) customs cooperation and technical assistance; (ix) publication of advance requirements by customs
authorities;
European Communities G/C/W/85 International trade transaction process should be as simple as that required for domestic sale; Exp orters should be
able to expect solid but simple and transparent procedures for trading; Onerous formalities should be reduced;
Customs procedures should be reviewed and adapted over time to reflect changes in trade patterns, introduction of
information technologies; Specific areas of work should be: (i) alignment of customs procedures; (ii) modernize
customs procedures and make them more transparent; (iii) standardize information and use of electronictransmissions;
European Communities G/C/W/122 Suggested measures related to docum entation and information requirements at import and export: (i)  avoidance of
unnecessary procedural obstacles; (ii) adoption of international standards; (iii) reduction and harmonization of data
sets and messages; (iv)adoption of harmonized documentation format; (v) single window submission of
information; (vi) seamless integrated transaction; Su ggested measures related to customs and border crossingG/C/W/393
Page 6procedures: (i) introduction of automated customs clearan ce; (ii) pre-arrival processing, post- clearance controls
and audit; (iii) develop system of "authorized traders"; (iv) one stop clearance; (v) remote filing and simplified
clearance procedures; (vi) time-limit for routine customs clearance; (vii) co-operation between trade and
customs/other agencies; (viii) judicial or administrative redress; (ix) enhancement of transparency; (x) tacklecorruption and integrity issues;
European Communities G/C/W/133 In the area of transport and tran sit, proposal to reduce excessive and unharmonized documentation and data
requirements at import and export and promote their electronic submission, minimize date requirements, introduce
modern customs methods, provide for advance clearance of consignments, post-clearance controls and audit, fortransparency and the avoidance of sudden changes in documentation and other requirements, as well as for
progressive convergence of official controls on the international movement of goods; Need to tackle problem of
lack of uniform, harmonized intermodal transportation régime of goods; Regarding payment, insurance and other
questions affecting cross-border trade in goods, suggestion to  pay attention to (i) electronic payment systems, (ii)
banking settlement delays, (iii) non–payment and credit worthiness and (iv) late payment in commercialtransactions;
European Communities G/C/W/138 Need for automation in trade administration; proposed action: (i) establishing customs acceptance of electronic
documents and data, processing and release by electroni c means; (ii) computerization preceded by reduction,
simplification and harmonization of data and documentat ion requirements, as part of a package of modern
techniques such as pre-arrival processing, risk assessment, post-release payment of duties, and remote filing of
declarations; (ii) systematic improvements to customs practices and management; (iii) use of EDI by other
agencies; (iv) use of international standards; (v) public and private sector cooperation; (vi) capacity building;
European Communities WT/GC/W/190 Development of framework of WTO commitments to simplify and harmonize trade procedures, encompas sing,
among others, the (i) harmonization and simplification of trade and transport documents and data, drawing on
international standards, and relying on commercial inform ation; (ii) progressive introduction of modern customs
techniques designed to strengthen compliance and cont rol while speeding release of legitimate goods; (iii)
progressive automation and EDI at the level of customs and other agencies to replace paper procedures for export
and import; (iv) development of measures to facilitate convergence of official controls on border crossing goods;
(v) capacity building to strengthen human and physical infrastructure and improve import/export management; (vi)
consideration of scope for provision to ensure smooth conduct of banking and payment transactions;
Japan G/C/W/151 Need to streamline the entire importation procedures , starting from the arrival of cargo at the border to its rec eipt
by the resident; Essential to apply electronic processing and EDI to enable smoother and faster trade procedures;
Importance of securing transparency in trade procedures, of reducing the number of offices exporters andimporters need to deal with by establishing a single agency to deal with the entire trade procedures and, even more
essential, of simplifying procedures by electronic pro cessing; Importance of technical co-operation; Proposal to
establish database on procedural requirements to increase transparency;G/C/W/393
Page 7Japan G/C/W/236 Importance of (i) increasing transparency and predictability of procedures; (ii)  reducing excessive documentatio n
requirements; (iii) reducing physical examination, (iv) introducing EDI systems; (v) addressing problems related
to customs valuation, (vi) facilitating customs formalities other than customs clearance procedures, such as
procedures for the exemption or reduction of import taxes and repayment. Examples of possible measuresmentioned in this context: Making a clear official announcement and publication of the relevant laws, regulations
and procedures, establish detailed administrative rules for each operation, simplify and  harmonize rules
compatible with international standards, establish a system for advance ruling on classification, timely public
announcement of changes in regulations, share information among sections of the customs authority, increase
communication between relevant departments, decrease  and simplify documentation, adopt risk management
techniques, introduce automated clearance systems achieving seamless and paperless trade procedures.
Japan WT/GC/W/257 Need to implement the existing WTO Agreements; Necessity to facilitate the entire sequential procedures from th e
arrival of goods at the border to free circulation in the domestic market; advance automation of procedures and
EDI by (i) simplifying  measures such as by automation, introduction of EDI and harmonization of requestedformats; (ii)  realizing appropriate and quick clearance by substantive single window; (iii) establishing necessary
framework for technical cooperation; Importance of human resource development; Need to enhance transparency;
Korea G/C/W/150 Need to in stitutionalize a single window for information regarding trade and importation; Suggestion to work on
automation and modernization of customs administration by (i) allowing the private sector to use electronic means
of data exchange designed for an integrated manageme nt of documentation and data with a view to ensuring
seamless commercial transactions; (ii) establishing customs acceptance of electronic documents and data as well
as processing and release of goods by electronic means; (iii) using open, interoperable and internationallyrecognized standards and codes as a basis for harmonized, simplified data and documentary requirements; (iv)
greater international cooperation and assistance to develo ping countries to help them build infrastructure and
expertise necessary to reach higher level of automation and modernization in the field of customs and
export/import administration. Importance of enhancing transparency of laws, regulations and administrative
guidelines governing foreign trade;
Paraguay G/C/W/237 Need to address problems of land-locked countr ies, going beyond the areas of transport and transit to include also
issues such as financing for infrastructure, cost of freight or other facilities, inclusion of land-locked countries in
globalization. Need to substantially upgrade infrastructure of highways, waterways and communications as well as
need for more flexible rules on funding, simpler administrative arrangements and the application of rulesgoverning the use of all modes of transport, need to prov ide landlocked countries with facilities to counterbalance
their disadvantage and place them on an equal footing;
Switzerland G/C/W/92 Trade facilitation areas where action should be taken: (i) pre-arrival processing by, for example, electroni c
processing or "one stop" facilities; (ii) combat of customs irregularities such as corruption and malpractice by
customs authorities; (iii) facilitation of anti-fraud measures by improvements in pre-arrival processing; (iv)
harmonization of customs procedures and establishment of risk assessment and management procedures; (v)
standardization of information and use of electronic transmissions;G/C/W/393
Page 8Switzerland G/C/W/137 Techniques that could be used to facilitate trade: (i) gradual liberalization; (ii) simplification of docum ents,
formalities and regulations governing the import and export of goods, covering not only the customs aspects but
also the forms of transport, insurance and payment relate d to such transactions; (iii) harmonization; (iv) mutual
recognition; (v) enhanced cooperation through the exchan ge of information and the principle of "single window";
Promoting the use of electronic media;
Switzerland WT/GC/W/264 Need to simplify a nd harmonize customs procedures and regulations applied at importation and exportation as
well as in the areas of transport, insurance, and payment modalities linked with trade transactions in order to make
trade transactions more efficient and less expensive; need to facilitate international trade transactions;
United States WT/GC/W/254 Need to strengthen and expand existing rights and obligations and to simplify and streamline the trade facilitation
environment through: (i) clarifying and making more transparent the procedural requirements necessary for tradeunder the covered Agreements; (ii) enhancing efficiencies, including through the rapid release of goods from the
custody of government authorities such as customs administrations; Necessity to have transparent and efficient
trade transaction environment;
3) Reports on the 1998 Trade Facilitation Symposium and the 2001 Technical Assistance and Capacity Building Workshop and relate d documents
A) 1998 Trade Facilitation Symposium
There are three WTO documents dealing with the 1998 Symposium: (i) A check-list of issues raised during the symposium (G/C/W/11 3), (ii) the report
on the Symposium (G/C/W/115) and (iii) a stat ement by the Chairman of the CTG on that  matter (G/L/226). The following section t ries to summarize the main
points related to trade facilitation needs and priorities that were raised in the course of the Symposium, based on what has be en identified by the various speakers
as primary problems in the area of trade facilitation and proposed as a possible way to overcome them. It follows the structure  of the Symposium, grouping the
presentations in four panels.
Panel 1  - Physical movement of consignments (transport and transit): Main points related to trade facilitation needs and prior ities
Problems: Speakers stated that many of the problems for transport operators relate directly to requirements of border crossing;  Another problem was the lack of
uniform international transport rules for all modes of transport regarding documentation, technical regulations, reporting and visa requirements;
Speakers suggested governments to consider:
− harmonizing information requirements for the movement of goods, which would subsequently allow for exploration on processes und er which outbound and
inbound clearances can be accomplished by a single filing;
− implementing existing international agreements  for each mode of transport and further work toward one multi-modal, multilateral  code;
− adopting the Montreal Protocol IV in order to facilitate air transport;
− developing common regulations and reporting requirements for the movement of vessels in and out of ports, based on the common c riteria established by the
IMO Convention on the Facilitation of International Traffic (FAL);
− harmonizing national legislations concerning the movement of crews and passengers in sea transport;G/C/W/393
Page 9− harmonizing technical requirements for vehicles based on existing work in this area;
− harmonizing fiscal charges, restrictions and traffic bans, as well as visa requirements for drivers in the area of road transpo rt;
− adopting existing international rules and harmonization of the various national rules for the carriage of hazardous goods;
− improving market access conditions for foreign transport enterprises.
Panel 2  - Import and export procedures and requirements,  including customs and border crossing problems: Main points related to trade facilitation
needs and priorities
Problems: Speakers identified problems in five areas:
      (i) Documentation requirements:
Speakers pointed to the fact that countless documentation requirements and official regulations existed for the importation and  exportation of goods. About
60 documents were used in an average international trade transaction. Although those documents had different purposes, around 8 0 per cent of the
information contained within them was the same. Documentation requirements were often ill-defined and traders not adequately in formed on how to
comply with them, thus increasing the potential for errors. The resulting lack of transparency of formalities created an enviro nment conducive to
irregularities and malpractice. Non-harmonized and excessive doc umentation requirements in certain countries increased paperwor k four-fold, while the
time lost waiting for border release in many regions accounted for up to 20 per cent of total transport time and up to 25 per c ent of total transport costs. At
the same time, it was questionable whether the large number of information requirements were effective in curtailing dishonest practices.
Speakers suggested governments to consider:
− reducing documentation requirements for import and export. A serious internal review should survey what data are really necessa ry for customs authorities, and
which of them could be obtained through other methods, i.e. by accepting commercial documents or information provided for expor t purposes;
− rationalizing and aligning format, content and numbers of document s required in line with  the United Nations Layout Key for Tr ade Documents and other UN
standards, including UN/EDIFACT;
− increasing possibilities for electronic data submission;
− separating the presentation of documentation from border-crossin g and relying to a larger extent on  post-clearance audits;
− the publication of all official requirements and establishment of information centers (at borders) where traders can receive au thoritative information on official
requirements and collect all necessary official documents;
− reviewing regulations that demand the dispatch of numerous samples for product registration, which can become effective trade r estrictions when applied to
high-value, low-volume consignments;
− reviewing their labeling requirements which often demand inappropriate and unreasonable measures from importers;
− using a single administrative document for all import and export regimes;
− seeking greater compatibility between import and export documentation by harmonizing information requirements. Common sets of d ocumentation between
importing and exporting countries would assist processes under which outbound and inbound clearances can be accomplished by a s ingle filing, thus facilitating
one-stop border controls.  This would also increase customs control as it would help to avoid under-valuation by traders;
− using international standards for the exchange of information, (standard definitions of individual data elements, standard mess ages, or standard codes);
− harmonizing import, transport, and transit requirements regarding dangerous goods, phytosanitary requirements, and veterinary p rescriptions, where a variety of
national requirements additional to international standards persist;G/C/W/393
Page 10− greater standardization of the wording of compulsory labeling. Governments should consider whether attaching secondary labels i n the language of the
importing country would suffice to meet the concerns reflected in the labeling regulations.
      (ii) Official procedures:
Speakers considered antiquated official procedures, together with  documentation requirements, to be responsible for the delays in international trade. They
pointed out that for low-risk consignments, transaction-based cont rols not only slowed down clearan ce, but also resulted in sub -optimal use of customs
resources, which were better concentrated on high risk consignments. Risk assessment and audit-based controls would help trade facilitation, allow for more
efficient enforcement of regulations, and improve collection of duties by customs, thus presenting a win-win situation.
Speakers suggested governments to consider:
− conducting all official controls in a single location and concentrating them in the hands of customs as the responsible agency;
− streamlining procedures to avoid unnecessary checks and double-checks by other regulatory government agencies;
− the increased use of communication systems to undertake more effective risk assessment and profiling, allowing the large number  of low risk consignments to
cross borders with minimal intervention, while focusing customs resources on high-risk consignments;
− moving from transaction-based control procedures to audit-based controls, thus eliminating intervention during the movement of goods;
− introducing measures that facilitate pre-arrival processing and expedited clearance upon arrival;
− carrying out official procedures at traders' premises instead of at ports;
− issuing "authorizations" to compliant traders to make them eligible for minimized "green channel" fast track processing;
− flexible means of paying duties, including advance settlement and refund measures;
− accepting of payment guarantees, such as bonds instead of deposits;
− introducing of systems that allow the efficient post-release collection of taxes and duties;
− the self-assessment of trusted traders;
− the abolition of prior registration procedures for labels, or, at least, establishment of a single center that processes the ap plications for such registrations;
− the standardization of procedures and streamlined operations which increase transparency in formalities and help traders build realistic expectations regarding
time and costs involved in border-crossing;
− establishing effective liaison between customs administrations at border-crossing points.
       (iii) Automation and use of information technology:
Lack of or insufficient use of automated processes and informa tion technology was considered a major source of delays, costs an d inefficiencies, since paper
documents had usually to be presented at the time of border-crossing, and verification of the information submitted took place at that time. Speakers noted
that experience in customs administrations that had increased the use of information technology showed that border-crossing tim e could be reduced
considerably, while control and revenue collection functions were improved at the same time.
Speakers suggested governments to consider:
− allowing for, or enhancing the use of electronic data submissi on, thus speeding up filing and processing, and de-linking the pl ace of filing from the borders or
ports of arrival. This way, errors can be sorted out be fore goods arrive at borders and delays can be minimized;
− using of communication systems to undertake more effective risk assessment, which would help a larger number of goods to move a cross borders with minimal
intervention;G/C/W/393
Page 11− adapting electronic systems that facilitate post-release payment of taxes and duties;
− developing electronic data transmission between exporting and importing administrations.
       (iv) Transparency, predictability and consistency :
Lack of transparency and predictability was described as a major source of uncertainty regarding costs and time of internationa l trade transactions. Without
predictable information on costs and time, traders had difficulty making informed business decisions. As lacking transparency a nd predictability of
requirements and procedures allowed for a wide range of discretion on the part of officials, they were also a major source of i rregularities and corruption.
Speakers suggested governments to consider:
− the publication of all laws, regulations, and administrative rulings;
− making legislation, procedures and document ation requirements as transparent as possible and defining the scope of information to be provided to authorities as
clearly as possible.  This would help avoid misunderstandings, delays, additional costs, longer working time for officers, and limit their discretionary powers;
− greater uniformity in the application of customs laws, regulations, administrative guidelines and procedures;
− the specification and publication of all fees and charges levied in order to allow traders to assess more accurately the costs involved in the trading process.  Lack
of transparency in this area makes procedures particularly susceptible to irregularities;
− the application of laws, regulations and requirements only after their publication;
− the implementation of the principles of the Arusha Declaration on Customs Integrity;
− re-evaluating penalization for inadvertent mistakes which re sult from misunderstandings due to inadequate transparency;
− the harmonization of national tariffs beyond the 6-digit level of the Harmonized System;
− the establishment of a database which contains the specific customs requirements of all WTO Members.
       (v) Modernization of border-crossing administration:
Speakers noted that customs departments and other government agenci es involved in trade were often inefficiently structured int ernally. Common problems
included inadequacies in physical infrastructure, training and education, insufficient emoluments of the staff, and lack of coo peration between customs
administrations as well as between customs and trade.
Speakers suggested for governments to consider:
− improving the educational standards of officials, especially regarding the rules the officials are administering;
− increasing the ratio of professionals relative to other staff;
− extending opening hours of border-crossing authorities and adjusting them to commercial needs;
− locating agencies which need to cooperate functionally together under one roof. These agencies should conduct official controls  in one place;
− increasing cooperation mechanisms between trad ers (represented for instance by chambers of commerce) and customs. A trust based  relationship will improve
compliance and allow customs to focus their resources on high-risk consignments;
− seeking financing from international financial institutions and the private sector to overcome infrastructure problems;
− regulation of professional standards of customs brokers and customs warehouses;
− greater cooperation between customs administrations. Informati on exchange, common border controls, and the introduction of "one -stop" border controls for
immigration and customs should be pursued.G/C/W/393
Page 12Panel 3  - Payments, insurance and other financial requirements which affect cross-border movement of goods in international tr ade: Main points related
to trade facilitation needs and priorities
Problems: In the area of payments and financial requirements, speakers cited a large number of problems resulting from commerci al practices of banks, insurances,
etc. Inefficient payment and credit arrangements remained the ma in obstacle to trade, often resulting in long delays for the pa yment of goods. Internationally agreed
messaging protocols were often not implemented, partly because of overly rigid government rules prescribing specific payment me thods that did not allow the use
of these protocols. Methods of export credit evaluation were often outdated. In addition, there was no internationally agreed m ethod to ensure the legal validity and
security of electronically exchanged payment messages when those messages were originating from or were sent to a party that wa s not a bank.
Speakers suggested governments to consider:
− setting rules that recommend faster payment methods and faster bank handling of transactions;
− setting rules providing greater flexibility on payment methods where foreign exchange controls persisted;
− agreeing on a single international method to ensure the legal validity and security of electronically exchanged payment message s, possibly based on the
BOLERO model.
Panel 4 – Electronic facilities and their importance for facilitati ng international trade: Main points related to trade facilit ation needs and priorities
Problems: Speakers expressed the need to address legal issues in  connection with electronic commerce in a multilateral context.  The importance to promote EDI
nationally and to use UN/EDIFACT as the common standard for EDI was highlighted.
Speakers suggested governments to consider:
− contributing to the work under UN/EDIFACT to develop a more open, easier to use, standard that will further facilitate the use of EDI over the internet for trade
transactions;
− the implementation of cryptography rules such as  the 1997 OECD Guidelines for Cryptography Policy;
− increased use of EDI between regulatory authorities and with private firms;
− working towards multilateral solutions on payments, tax liability, legal, and social issues arising from the use of Electronic Commerce.
B) 2001 Workshop on Technical Assistance and Capacity Building in Trade Facilitation
The Workshop's goal was to provide for a forum to exchange view s among all relevant parties on the role of technical assistance  and capacity building in
trade facilitation. Members were given the opportunity to share their experiences, take stock of past and present assistance pr ograms and assess the expertise of
the various providers of technical assistance. A compilation of the presentations and discussions of this workshop can be found  in G/C/W/297. Indications of
trade facilitation needs and priorities have been taken from what  has been described as essential for the advancement of trade facilitation and related assistance as
well as from what has been identified as future challenges in this area. It should be noted however, that, in accordance with i ts focus on technical assistance
issues, many of the points raised regarding needs and priorities  relate to technical assistance and capacity building rather th an trade facilitation as such. Like in
the case of the 1998 Symposium, this section follows the stru cture of the workshop, grouping interventions in four panels.G/C/W/393
Page 13Panel 1  - Overview of technical assistance activities by intern ational organizations: Main points related to trade facilitatio n needs and priorities1
Speakers underlined the importance of:
− using effective selectivity methods and implement international instruments and conventions which simplify and harmonize proced ures;
− political will at the highest governmental level to introduce reforms and to extend attention beyond the initial approval to th e implementation phase;
− involving all stakeholders in all phases of the trade facilitation process;
− joint effort and cooperation amongst all international and regional organizations involved in trade facilitation as well as wit h national customs administrations;
− coordination and exchange of information among donors;
− enhancing co-operation between customs administrations and trade officials;
− transforming customs administrations into customs services;
− eliminating outdated procedures and multiple non-standardized documents;
− fostering the "software" dimension of international trade and transport;
− revenue control strategy based on risk assessment and selective controls targeted at high-risk goods and enterprises as well as  effective post-clearance controls;
− harmonizing data elements;
− introducing single window and one-step solutions;
− aligning domestic legislation and procedures with international standards;
− setting up a sound resources management system;
− existence of a transparent legal framework;
− reducing tariffs and making them less complex.
− increasing border control capacity;
− undertaking long-term institutional and policy reforms beyond political cycles;
− fighting corruption;
− reforming the business process;
− developing and implementing specific tools;
− strengthening institutional capacities of recipient countries;
− ownership factor;
− focussing on implementation across WTO disciplines beyond seminars;
Panel 2 – Overview of technical assistance by donor Members: Main  points related to trade facilitation needs and priorities
Speakers underlined the importance of:
− Increasing coherence and transparency;
− Better sequencing and synchronization of assistance programs;
− Building trust among customs;
− Applying information technology to assess the risk of a cargo;
                                                     
1 Identical points raised by speakers in various panels will only be mentioned once when first addressed.G/C/W/393
Page 14− Building up a database to store relevant information;
− Integrating customs procedures into international standards;
− Cooperation amongst various government agencies;
− Involving other governmental agencies and the private sector;
− Encouraging the private sector to work directly with governments and donors to support capacity building;
− Establishing direct links between customs officers and agencies in donor and recipient countries;
− Basing any assistance project on a plan;
− Identifying means by which to deliver technical assistance;
− Need to prioritize assistance and consider the sometimes limited absorption capacity of a recipient;
− Measuring and comparing technical assistance against international norms;
− Support to be demand-driven;
− Selecting programs in accordance with a country's level of development;
− Flexible assistance which is tailored to the particular needs of the recipient country.
− Providing maintenance and follow-up monitoring of assistance projects;
− A sustainable knowledge transfer;
− Avoiding conflicting training;
Panel 3  –  Overview of experiences by recipient Members: Main  points related to trade facilitation needs and priorities
Speakers underlined the importance of:
− Creating a balance between customs control and trade facilitation;
− Computerized transactions;
− Implementation of new customs software;
− Approaching changes carefully, taking into account the implications  for both individuals and groups within the entity to be ref ormed;
− Having the top management leading the reform during the whole transition process;
− Comprehensive insight into the problems at the highest levels of political administration;
− Communication; Nature and motivation for the change as well as ex pected benefits needed to be communicated to all stakeholders at an early stage;
− Intensive training;
− Monitoring and reinforcing the process of change and responding immediately to emerging difficulties;
− Expanding e-commerce technologies;
− Preparation for risk management;
− Flexible strategies;
− Clear vision, sound strategy and sound project management;
− Facilitation communication between bilateral donors and internationa l organizations by agreeing on a single set of rules at an early stage;
− Introduction of new systems to speed up the clearance process;
− Introduction of a new SAD-based bill of entry;G/C/W/393
Page 15− Having systems that are extensible and easy to maintain;
− Taking proper account of local dynamics, and having region based programs;
− Support from both public and private institutions;
− Making economic modeling an integral part of assistance programs;
− Evaluation process which adequately addresses scope, implementation and true impact of projects;
− Highly qualified personnel appropriately equipped;
− Having the right people to ensure implementation
− Having same dedicated staff employed throughout all stages of the project;
− Constant commitment by all parties involved; and caring a bout the motivation of the people involved in implementation.
Panel 4  –  Roles for private sector participation in technical assistance and capacity building: Main points related to trade facilitation needs and priorities
Speakers underlined the importance of:
− making trade facilitation strategies part of any national liberalization and overall development policy;
− governments becoming the agents of change;
− not only focussing on material and infrastructural matters but also look at the human factor;
− not simply translating a process from one country to another, but taking into account the local circumstances;
− opening countries to foreign direct investment;
− creating a new culture in both public administration and the private sector;
− seeing modernization, reform and the adoption of  new processes as dynamic rather than static processes;
− recognizing that any strategy needed to be subject to continuous change;
− knowledge transfer;
− legislative stability;
− obtaining  market information on potential export countries;
− transparent payment processes for customs, duties and fees;
− a centralized, internet accessible database for relevant information and a centralized site for international document creation ;
− focusing on achievable targets;
− competitiveness;
− creating adequate industrial policies based on more accurate export and import data;
− secure and reliable networks connecting different enterprises;
− strong leadership of the local governments concerned;
− participation of local experts with operational know-how;
− backup from industrialized nations in terms of financing;
− efficient technology transfers through the participation of private enterprises with experience in similar projects.G/C/W/393
Page 16D). Relevant submissions by other organizations
Three documents by other organizations have been submitted to the Secretariat and circulated as CTG documents since the Singapo re Ministerial
Conference. Two of them (one by UNCTAD and one by the UN/ECE) outline the respective organization's work in the area of trade f acilitation without
addressing Members' trade facilitation needs and priorities as such. The remaining paper (G/C/W/230, by UNCTAD) deals with tran sit problems for landlocked
developing countries. Its main findings relating to trade fa cilitation needs and priorities are outlined in this section.
Transit problems for landlocked developing countries: Main points related to trade facilitation needs and priorities
The paper highlights the importance of:
− eliminating existing physical bottlenecks such as inadequate port facilities and rail or road infrastructures, poor transport e quipment, insufficient
telecommunication facilities, as well as any remaining non-ph ysical barriers to the smooth movement of transit goods;
− an efficient economic and environmentally sound national and international transport system;
− enhancing flexibility in the sense of being capable to adapt to variations in consumer demand and unforeseen circumstances;
− raising speed and reliability of delivery of goods;
− reducing excessively high transport costs inflating consumer prices of imported goods and undermining landlocked countries' com petitiveness of exports in
foreign markets;
− improving inadequate infrastructure and poor utilization of assets;
− reducing cumbersome government regulations and procedures in both landlocked and transit developing countries;
− improving inefficient transport , harmonizing transport policie s and adopting common technical standards and legal principles;
− streamlining and harmonizing customs and administrative procedures and documentation;
− addressing imbalances of trade;
− of effective and close cooperation and collaboration between landlocked developing countries and their transit neighbors at reg ional, sub-regional and bilateral
levels;
− considerable financial resources for improving the transport infrastructure;
− assistance in negotiating and/or implementing bilateral and regional agreements and arrangements;
− assistance in institution building and human resource development in the transit sector and development and implementation of c ustoms and transport
information systems;
− of strengthening technical cooperation in favor of developing countries.
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