RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/132
2 December 1998
(98-4836)
Council for Trade in Goods Original:  English
TRADE FACILITATION
Background Note
Introduction
(i) This background note contains an inventory of delegations’ suggestions on the scope for
WTO rules in the area of trade facilitation in the context of the Council for Trade in Goods’ work
programme on this subject.  In attempting to list the various proposals, they are grouped under three
categories, i.e (i) proposals concerning government mandated information requirements; (ii) proposals
concerning official procedures; and (iii) proposals concerning transparency and related issues.  A
summary of each proposal made in writing is reproduced for convenience.  Since some proposalshave overlapping content, some international instruments are reproduced under several headings.
(ii) All listed proposals are referenced to provis ions of international instruments related to the
subject matter.  For reasons of space, not all instruments referred to are reproduced in their entirety.
Existing WTO provisions are not listed specifically, as they will be considered at the third informalmeeting of the Goods Council in March 1999.  The background note is intended to assist delegations
in their analysis of the scope for WTO rules in the area of trade facilitation and to help in the analysis
of possible gaps in the existing international regulative framework.
(iii) The note specifically takes into account proposals made in the context of the Goods Council’s
first informal meeting on trade facilitation (28 and 29 September 1998) which focused on import and
export requirements and procedures.  An update to this document will be provided after each of thecoming meetings, accounting for any additional proposals made.
(iv) Additional ideas put forward by delegations are listed at the end of this background note.(v) The table in the Annex to this document lists the international conventions quoted, including
their Contracting Parties.G/C/W/132
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Table of Contents
I. PROPOSALS CONCERNING GOVERNMENT MANDATED INFORMATION
REQUIREM ENTS................................................................................................................4
1. Adoption of International Standards..................................................................................4
- Adoption of International Standards for Imports and Export Data  (EC, G/C/W/122)…………………………………………………………………………..4
- Compatible Electronic Data Interchang e (EDI) Systems (Canada, G/C/W/126)……. 4
2. Reduction and Harmonization of Data Requirements ......................................................6
-  Reduction and Harmonization of Data Sets and Messages (EC, G/C/W/122)………. 6
-  Harmonization of Import Documents and Data (Canada, G/C/W/126)………………7
3. Adoption of Harmonised Documentation Format (EC, G/C/W/122)...............................9
4. Mutual or Reciprocal Recognition of Documents (Switzerland, meeting of
28 September 1998)............................................................................................................. 11
5. Single Window Submission of Information (EC, G/C/W/122) .......................................11
6. The Seamless Integrated Transaction (EC, G/C/W/122) ................................................12
II. PROPOSALS CONCERNING OF FICIAL PROC EDURES .........................................13
1. Avoidance of Unnecessary Procedural Obstacles (EC, G/C/W/122)..............................13
2. Introduction of Automated Customs Clearance (EC, G/C/W/122)................................153. Pre-Arrival Processing, Post Clearanc e Controls and Audit (EC, G/C/W/122) ...........16
4. Authorised Traders (EC, G/C/W/122) ..............................................................................195. Rationalization of Official Interventions at Borders .......................................................21
-  One Stop Clearance (EC, G/C/W/122)………………………………………………...20
-  Border Agency Coordination (Canada, G/C/W/126)………………………………... 20
6. Remote Filing and Simplified Clearance Procedures (EC, G/C/W/122) .......................24
7. Release of Goods (Canada, G/C/W/126) ...........................................................................258. Clearance Times, (EC, G/C/W/122) ..................................................................................289. The Use of Risk Assessment Principles (Canada, G/C/W/126).......................................2810. Commercial Samples and Goods for Exhibition (Canada, G/C/W/126)........................30
11. Express Consignment Clearance (Canada, G/C/W/126).................................................32
III. PROPOSALS CONCERNING TRANSP ARENCY AND RELATED  ISSUES ...........33G/C/W/132
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1. Access to Information Necessary for Import and Export ..................................……….33
-  Availability of Requirements (Canada, G/C/W/126)………………………………….32
-  Transparency (Creation of a Single Comprehensive Database) (EC, G/CW/122)….32
2. Advance Rulings (Canada, G/C/W/126) ...........................................................................35
3. Judicial or Administrative Redress, Review and Appeal................................................36
- Judicial or Administrative Re dress, (EC, G/C/W/122)………………………………..35
- Review and Appeal (Canada, G/C/W/126)……………………………………………..35
4. Cooperation between Trade and Custom s/other Agencies, (EC, G/C/W/122)..............37
5. Corruption and Integrity Issues (EC, G/C/W/122)..........................................................39
IV. OTHER ISSUES RAISE D BY DELEG ATIONS ............................................................40G/C/W/132
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I. PROPOSALS CONCERNING GOVERNMENT MANDATED INFORMATION
REQUIREMENTS
1. ADOPTION OF INTERNATIONAL STANDARDS
Adoption of International Standards for Import and Export Data (EC, G/C/W/122)
1.1 Agreement to use or accept existing UN/UN-ECE standards, codes and guidelines on trade
facilitation1 as the basis for Members’ regulatory and administrative requirements for import and
export documentation and data.  It would be necessary (i) to make a clear identification of the
standards and codes in question; (ii) to ensure that these standards and codes reflect current business
needs and have the in-built flexibility to change as tr ade practises change; (iii) to consider the need for
and scope of any exceptions to the proposed rule.
Compatible Electronic Data Interchange (EDI) Systems (Canada, G/C/W/126)
1.2 Agreement to the increased application of the United Nations Electronic Data Interchange for
Administration, Commerce and Transport (EDIFACT) electronic messaging format for automated
customs systems.  The objectives would be to facilitate increased and rapid exchanges of informationbetween administrations, contribute to cooperative compliance and facilitation activities and provide
the trading community with expedited cleara nce procedures through EDI applications.
International Instruments
1.3. Several international instruments encourage the use and acceptance of international standards,
codes and guidelines on trade facilitation, including the EDIFACT messaging format.  Existing
instruments include:
1.3.1 International Convention on the Simplification and Harmonization of Customs Procedures
(Kyoto Convention ) 
2
Existing Convention of 1973
Annex J.1. (customs application of computers), Recommended Practice 9:
“Whenever practicable, computer applications implemented by Customs authorities
should use internationally accepted standards, especially those adopted by the Council
and referred to in the Computerization File.3”
                                                     
1  UN/ECE recommendations as well as information on UN/EDIFACT, etc. can be accessed online at
http://www.unicc.org/unece/cefact/cef_main.htm.
2  established under the auspices of the Customs Co-operation Council (now WCO), concluded at
Kyoto, 18 May 1973, entered into force 25 September 1974, referred to thereafter as ‘Kyoto Convention’.
3  WCO Recommendations concerning computers recommend the use of the EDIFACT standards and
the use of the United Nations Trade Data Element Directory.G/C/W/132
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Proposed revised Convention4
General Annex, Chapter 3 (Clearance formalities), Standard 10:
“The contents of the Goods Declaration shall be described by Customs.  The paper
format of the Goods Declaration shall conform to the UN-layout key.
For automated customs clearance processes, the format of the electronically submitted
Goods declaration shall be based on international standards for electronic information
exchange as prescribed in the Customs Co-operation Council Recommendations on
information technology.5”
General Annex, Chapter 7 (Application of information technology), Standard 2:
“When introducing computer applications, the Customs shall use relevant
internationally accepted standards.”
1.3.2 International Convention on the Harmon ization of Frontier Controls of Goods6
Article 9:1 (Documents):
“The Contracting Parties shall endeavour to  further the use, between themselves and
with the competent international bodies, of documents aligned on the United NationsLayout Key.”
1.3.3 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments, Section B (Customs), Recommendation 15:
“[Governments, through their Customs authorities, should] enhance Customs controls
and facilitate import clearance by considering, on a bilateral (or multilateral) basis, the
routine electronic transmission of export data  from the country of export to the Customs
authority of the importing country, in accordance with the laws and regulationsconcerning disclosure of information.”
1.3.4 WCO Recommendations
-- Use of codes for the representation of data elements, including:
Annex II – Container identification, recommendi ng use of ISO 6347 (freight containers –
coding, identification and marking) and the IATA code for the representation of data
concerning air freight containers;
Annex III – Dates, recommending use of UN/ECE Recommendation 7 (Numerical
representation of dates, time and periods of time), which is based on ISO 2014 (writing of
                                                     
4  Where references are made to the Kyoto Convention, both the texts of the existing Convention and
the proposed text of the revised Convention are referred to; all standards and recommended practices of theGeneral Annex of the revised Convention are quoted in their draft version of November 1998 (Draft version 2),as prepared by the Kyoto Working Group.
5  These are the WCO Recommendations concerning the use of computers, some of which are listed
under I:1.3.4.
6  Concluded at Geneva, 21 October 1982, entered into force 15 October 1985;G/C/W/132
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calendar dates in all-numeric form) and ISO 3307 (information exchange – representations of
time of the day).
Annex IV – Currencies, recommending use of ISO 4217 (three-letter alphabetic currency
code);
Annex V – Country Codes, recommending us e of the two-letter alphabetic code ISO 3166,
alpha-2;
Annex VI – Description of goods, and tariff or statistical headings, recommending use of the
HS Coding system;
Annex VII – Customs procedures, recommending use of the CCC 1-digit code for the
representation of customs procedures;
Annex VIII – Units of measurement, r ecommending use of UN/ECE Recommendation 20
(Codes for units of measurement used in international trade);
Annex IX – Mode of transport, recomme nding use of UN/ECE Recommendation 19 (codes
for modes of transport).
--  Use of the UN/EDIFACT rules for electronic data interchange;
--  Use of the United Nations Trade Data Directory (UNTDED);--  Use of WCO Data Mapping Guide for Customs UN/EDIFACT Messages;--  The Single Goods Declaration;1.3.5 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures (SCCP )
“Objective 4:
Adoption and Support for the UN/EDIFACT:
To use the standard UN electronic messaging format for automated systems, the United
Nations/Electronic Data Interchange for Administration, Commerce and Transport, topromote an electronic highway for business.”
2. REDUCTION AND HARMONIZATION OF DATA REQUIREMENTS
Reduction and Harmonisation of Data Sets and Messages (EC, G/C/W/122)
2.1 A multilateral programme could be developed to reduce and harmonize data-sets/messaging
as done by G 7 and as recommended eg by Australia in its paper to the WTO Symposium on APEC
procedures. The programme could be carried out under WTO auspices in conjunction with other
relevant organisations such as WCO and the UN-ECE who have obvious technical expertise to
contribute.
2.2 Alternatively, WTO rules or guidelines could be established which dictate in general terms
the objectives and parameters of such an exercise, which could then be carried out either under a
specialist body, at plurilateral level, or via autonomous national measures, within an agreed
timeframe.
2.3 The result should be the adoption of a multilaterally harmonized and reduced maximum data
set, with any national exceptions or variations limited as far as possible, applicable to all relevantG/C/W/132
Page 7
stages of the trade transaction and tailored to meet the majority of trade transactions and, ultimately,
all governmental agency requirements.
2.4 The proposed harmonisation exercise should ensure that data-set requirements
• are reduced and restricted to the very minimum needed for appropriate administrative control,
enabling the trader to submit a single data set which would be retained throughout the differentstages of the trade transaction;
• are designed for electronic messaging purposes;
• use to the maximum possible extent relevant internationally agreed standards and codes;
• are capable of supplying the needs of other actors in the trade and transport chain so that seamless
transfer of data is the norm, and re-keying or variation of data reduced to the minimum;
• be obtainable from commercially available information, to the extent possible for the purpose of
proper customs administration, so that traders do not need to develop separate data sets for officialpurposes;
• cover the majority of international trade transactions.
Harmonization of Import Documents and Data (Canada, G/C/W/126)
2.5 Import documents and data required for release of merchandise should be harmonized, using
existing international standards where appropriate.  This could include expansion of efforts of like-
minded countries (e.g. G-7) to harmonize electronic data elements and electronic data transmission
standards.
International Instruments
2.6. The following international instruments are aiming at a reduction of required information,
and/or are calling for the harmonization of documents, data sets and standard messages:
2.6.1 Kyoto Convention
Existing Convention of 1973
Annex A.1 (Customs formalities prior to the lodg ement of the Goods declaration), Standard 11:
“Where the Customs authorities require documentation in respect of the production of
the goods to the Customs this shall not be required to contain more than the informationnecessary to identify the goods and the means of transport.”
Annex B.1 (Clearance for home use); Standard 11:
“(1) Forms for the Goods declaration for home use shall conform to the official
model laid down by the competent authorities.
(2) The competent authorities shall require the Goods declaration to provide only
such particulars as are deemed necessary for the assessment and collection of importduties and taxes, the compilation of statistics and the application of the other laws and
regulations which the Customs are responsible for enforcing.”G/C/W/132
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Annex B.1 (Clearance for home use); Recommended Practice 25:
“Where goods are imported frequently by the same person, the Customs authorities
should allow a single Goods declaration to cover all importations by that person in a
given period.”
Annex B.1 (Clearance for home use); Recommended Practice 60:
“If the Customs authorities are satisfied that the declarant will subsequently accomplish
all the formalities in respect of clearance for home use they should release the goods,
provided that the declarant produces a commercial or official document giving the main
particulars of the consignment concerned and acceptable to the Customs.”
Annex C.1 (Outright exportation); Standard 8:
“(1) Forms for the Goods declaration for outright exportation shall conform to the
official model laid down by the Customs authorities.
(2) The Customs authorities shall require only such particulars as are deemed
necessary for the assessment and collection of any export duties and taxes chargeable,any repayment of, or exemption from, internal duties and taxes, the compilation of
statistics and the application of the other laws and regulations which the Customs are
responsible for enforcing.”
Proposed revised Convention
General Annex, Chapter 3 (Clearance formalities), Standard 10:
“(1) The contents of the Goods Declaration shall be described by Customs.  The
paper format of the Goods declaration shall conform to the UN-layout key.
(2) For automated customs clearance processes, the format of the electronically
submitted Goods declaration shall be based on international standards for electronic
information exchange as prescribed in the Customs Co-operation CouncilRecommendations on information technology.”
General Annex, Chapter 3 (Clearance formalities), Standard 11:
“The customs shall limit the data required in the Goods declaration to only such
particulars as are deemed necessary for the assessment and collection of duties and
taxes, the compilation of statistics and the application of customs law.”
General Annex, Chapter 3 (Clearance formalities), Transitional standard 25:
“The Customs shall permit the submission of supporting documents by electronic
means.”
2.6.2 WCO Recommendations
--  Use of the United Nations Trade Data Elements Directory (UNTDED);
--  Use of WCO Data Mapping Guide for Customs UN/EDIFACT Messages;
--  The Single Goods Declaration.G/C/W/132
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2.6.3 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments, Section B (Customs), Recommendation 6:
“[Governments, through their Customs authorities, should] examine closely the
possibility of speeding up, as much as possible, the process of goods release based on aminimum of essential information. However, they should ensure that all information
necessary for proper revenue collection, accounting, and precise statistical reporting is
communicated to the Customs authorities.”
2.6.4 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures
7
Objective 10:
“Harmonized APEC Data Elements8
To develop a comprehensive directory supported in UN/EDIFACT which includes a
simplified "core set" of data elements, largely derived from commercially available
data, that would satisfy the standard data requirements of the majority of APEC tradetransactions and so facilitate the exchange of information and provide a foundation for
common forms and electronic commerce.”
3. ADOPTION OF HARMONISED DOCUMENTATION FORMAT (EC, G/C/W/122)
3.1 Pending the global use of electronic messaging formats there will still be a need for
submission of import and export data in paper form.  Multilateral acceptance of the concept and
design of the Single Administrative Document (SAD) (based on the UN aligned document system,
currently used by over 60 countries and the standard tool used by UNCTAD in its ASYCUDA
programme to streamline customs procedures in developing countries) would be a significantinternational harmonisation measure.  Further discussion and possibly reduction of content of the
SAD in the light of progress made to reduce and harmonise data sets would need to accompany such
multilateral acceptance.  Integration into the SAD of elements of the WCO standard for a Single
Goods Document (SGD) would also be a useful meas ure to ensure a product with global acceptability.
International Instruments
3.2 Most existing international instruments do not refer to the concept of a Single Administrative
Document, but recommend minimum data requirements and/or aligned documents or document series
in conformity with the UN Layout Key.  The relevant provisions of these instruments are listed below:
3.2.1 Kyoto Convention
Existing Convention of 1973
Annex B.1 (Clearance for home use), Standard 11:9
                                                     
7  Other initiatives on harmonization of data elements for customs procedures are underway in the G 7,
as well as in NAFTA (North American Trade Automation Prototype).
8  see also WTO document G/C/W/115, p.184
9 Note 2 to Standard 11 suggests that Contracting Parties may use of the a layout key which is in
conformity with the UN Layout Key.G/C/W/132
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“(1) Forms for the Goods declaration for home use shall conform to the official
model laid down by the competent authorities.
(2) The competent authorities shall require the Goods declaration to provide only
such particulars as are deemed necessary for the assessment and collection of importduties and taxes, the compilation of statistics and the application of the other laws and
regulations which the Customs are responsible for enforcing.”
Annex C.1 (Outright exportation), Recommended Practice 9:
“When they are considering revision of present forms or preparation of new forms for
the Goods declaration for outright exportation, the customs authorities should use as far
as possible the lay-out key in Appendix I in accordance with the Notes in Appendix
II.
10”
Proposed revised Convention
General Annex, Chapter 3 (Clearance formalities), Standard 10, first sentence:
“The contents of the Goods Declaration shall be described by customs.  The paper
format of the Goods Declaration shall conform to the UN-layout key.
3.2.2 UN/ECE Recommendations11
Recommendation 1: United Nations Layout Key for Trade Documents
The United Nations Layout Key for Trade Documents aims at providing an international basis
for the standardization of documents used in intern ational trade and transport and for visual display
representations of such documents. The UN Layout Key is intended particularly to serve as a basis for
designing aligned series of forms employing a master document in a reprographic one-run method of
document preparation; it can also be applied for the layout of visual display presentations in electronic
data processing applications.
Recommendation 18: Facilitation Measures Related to International Trade Procedures
Group 9- Measures . related to entry and/or transit
9.2  Alignment of Customs import declarations“National Customs import declarations should be aligned with the United Nations
Layout Key, taking into account the aligned layout for Goods declaration for home use
specified in Appendix 1 to Annex B.1 of  the International Convention on the
Simplification and Harmonization of Customs Procedures (Kyoto 1973).”
3.2.3 WCO Recommendation
--  The Single Goods Declaration.
                                                     
10  The layout key suggested is in conformity with the UN Layout Key.
11  The full texts of UN/ECE Recommendations, including all background information, can be accessed
on the internet at http://www.unicc.org/unece/trade/facil/bdy_recs.htm.G/C/W/132
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4. MUTUAL OR RECIPROCAL RECOGNITION OF DOCUMENTS (SWITZERLAND,
MEETING OF 28 SEPTEMBER 1998)
4.1 Consideration of mutual recognition of comparable documentation, possibly with some
tolerance with regard to a limited number of non-comparable documents.  For the purpose of allowing
traders to submit to the extent possible the same set of documentation to different Member’s
administrations
International Instruments
4.2 The concept of mutual recognition of documents has found entry in the following WCO
Recommendations:
--  The Single Goods Declaration;
--  Customs Requirements Rega rding Commercial Invoices;
--  The Adoption of a Standard fo rm of Certificate of Origin.
5. SINGLE WINDOW SUBMISSION OF INFORMATION (EC, G/C/W/122)
5.1 Agreement should be sought on the principle th at submission of data or other information
requirements either at export or import be one time only and to a single agency (normally customs or
a trade department), which will then ensure onward transmission of data to other relevant agencies,
and interagency coordination thereafter.  Such a provision naturally relies on the recognition of an
agreed common data set by different government agencies concerned with an export or import
transaction, rather than the imposition of unique, non-harmonised alternatives.  EDI is also an
important element in the functioning of such arrangements.  Discussion would be needed on
acceptable exceptions that may be necessary to the norm of providing information to oneadministrative window alone.
International Instruments
5.2 When identifying its scope, it needs to be noted that a “single window” concept seems
practical and feasible only in an electronic envir onment.  No international instruments could be found
which provide for a single-window approach. However, one useful differentiation could be made
between data and information required for the release of the goods and such data and information that
is not.  For the present the G7 initiative agreed to include the following areas in their Feasibility Study
on Other Governmental Departments/Agencies: f ood, pharmaceutical products, drugs, animal and
plant health and quarantine.  With this limita tion the following WCO/Customs Instruments apply:
5.2.1 Kyoto Convention
Existing Convention of 1973
Annex B.1 (Clearance for home use), Standard 11, paragraph 2:
The competent authorities shall require the Goods declaration to provide only such
particulars as are deemed necessary for the assessment and collection of import duties
and taxes, the compilation of statistics and the application of the other laws and
regulations which the Customs are responsible for enforcing.G/C/W/132
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Annex C.1 (Outright exportation), Standard 8, paragraph 2;
The Customs authorities shall require only such particulars as are deemed necessary for
the assessment and collection of any export duties and taxes chargeable, any repayment
of, or exemption from, internal duties and taxes, the compilation of statistics and the
application of the other laws and regulations which the Customs are responsible forenforcing.
Proposed revised Convention
General Annex, Chapter 3 (Clearance formalities), Standard 11
“The customs shall limit the data required in the Goods declaration to only such
particulars as are deemed necessary for the assessment and collection of duties and
taxes, the compilation of statistics and the application of customs law.”
6. THE SEAMLESS INTEGRATED TRANSACTION (EC, G/C/W/122)
6.1 The seamless integrated transaction (sometimes called the seamless electronic transaction)
enables a single submission by the trader of data at export, thus bringing considerable cost and time
benefits to his operation.  It also permits far more effective governmental control over illegal activities
such as systematic under-invoicing through enab ling the comparison of export and import data.
6.2 It is likely that seamless integrated transactions will progressively be introduced at a bilateral
or regional level irrespective of a WTO-driven data harmonisation exercise.  WTO principles (of
non-discrimination, rights of access by all companies able to meet certain objective conditions,
conditions of participation by third countries etc) could be designed to ensure that the development of
such arrangements is both encouraged and guided in the optimum manner.
International Instruments
6.3 Existing instruments that promote a seamless integrated transaction include12:
6.3.1 Kyoto Convention
Existing Convention of 1973
Annex J.1 (Customs application of  computers); Recommended Practice 8:
Subject to conditions laid down in national legislation, the Contracting Parties should
ensure that the Customs authorities have the right to retain information for their own use
and, as appropriate, to exchange such information with other Customs administrations
and all other interested parties by means of ADP techniques.  Similarly, Customs
authorities should have access to traders' computer systems for verification/audit
purposes
                                                     
12  At present, a customs prototype project is being developed between the UK and the US, which will
provide for the electronic transmission of minimal data to effect export departure and import clearance  at the
frontier.  This project is intended to facilitate trade by simplifying customs procedures and developing standarddata elements to support both import and export requirem ents.  It will also incorporate information sharing
between customs administrations, leading to increased levels of compliance and enhance mutual assistance in
the enforcement field.G/C/W/132
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Proposed revised Convention
General Annex, Chapter 6 (Customs control), Standard 7:
“The Customs shall seek to co-operate with other Customs administrations and seek to
conclude mutual administrative assistance agreements to enhance Customs control”.
General Annex, Chapter 7 (Information technology), Standard 4:
“New or revised national legislation shall provide for:- electronic commerce methods as an alternative to paper-based documentary
requirements;
- electronic as well as other paper-based authentication methods;
- the right of the Customs to retain information for their own use and, as
appropriate, to exchange such information with other Customs administrations
and all other legally approved parties by means of electronic commerce
techniques.”
6.3.2 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments, Section B (Customs), Recommendation 15:
“Enhance Customs controls and facilitate import clearance by considering, on a bilateral
(or multilateral) basis, the routine electronic transmission of export data from the
country of export to the Customs authority of the importing country, in accordance with
the laws and regulations concerning disclosure of information.”
II. PROPOSALS CONCERNING OFFICIAL PROCEDURES
1. AVOIDANCE OF UNNECESSARY PROCEDURAL OBSTACLES (EC, G/C/W/122)
1.1 Consideration could be given to making Article VIII :1(c) GATT 1994 fully operational by a
provision to expand and elaborate on it: namely a requirement for WTO members to reduce import
and export procedures to the absolute minimum necessary to ensure the application of legitimate
controls, and to use the least trade restrictive procedures available.  Provisions might be necessary to
define what would be such legitimate controls and what application of them would constitute the
"minimum necessary", taking account of risk based management techniques, individual traders’
compliance etc.
1.2 Such a provision would be comparable to existing provisions in eg the TBT Agreement
concerning the avoidance of unnecessary technical obstacles.  The other EC recommendations on
documentation and information requirements at import and export would constitute means to achieve
this avoidance of unnecessary procedural obstacles.
International Instruments
1.3 Existing international instruments that require its parties to reduce procedural obstacles to a
minimum, include:G/C/W/132
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1.3.1 Kyoto Convention
Existing Convention of 1973:
Annex A.1 (Customs formalities prior to the l odgement of the Goods declaration), Standard 9:
“Customs control in respect of imported goods shall be reduced to the minimum.”
Annex A.3 ( Commercial means of transport), Standard 18:
“Customs control in respect of commercial means of transport before arrival at a
designated Customs office or other approved place of call shall be reduced to the
minimum necessary to ensure compliance with the laws and regulations which theCustoms are responsible for enforcing.”
Annex F.7 (Carriage of goods coastwise), Standard 25:
“Customs control of goods conveyed under the carriage of goods coastwise procedure
shall be reduced to the minimum necessary to ensure compliance with the laws and
regulations which the Customs are responsible for enforcing.”
Proposed new Convention
General Annex; Chapter 6 (Customs control), Standard 2:
“Customs Control shall be limited to that  necessary to ensure compliance with the
Customs law.”
General Annex; Chapter 6 (Customs control), Standard 3:
“In the application of Customs control, the Customs shall use risk management.”
1.3.2 International Convention on the Harmon ization of Frontier Controls of Goods
Article 2 (Aim):
“In order to facilitate the international movement of goods, this Convention aims at
reducing the requirements for completing formalities as well as the number and duration
of controls, in particular by national and international coordination of control
procedures and of their methods of application.”
1.3.3 UN/ECE Trade Facilitation Recommendations
Recommendation 18: Facilitation Measures Related to International Trade Procedures
Recommendation 18 outlines a series of measures related to the movement of goods,
presented in groups covering different phases of a common international trade transaction.  Each
section describes the application area, outlines the procedures and documents covered, and describes
the particular problems for which facilitation measures are provided.G/C/W/132
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2. INTRODUCTION OF AUTOMATED CUSTOMS CLEARANCE (EC, G/C/W/122)
2.1. members should consider provisions to introduce electronic-based systems progressively as
an optional alternative to paper based systems, using the relevant internationally accepted standards
such as the UN-EDIFACT.  Provisions to ensure that introduction of IT-based systems is carried out
in consultation with all affected parties, is used  in a coordinated way by all agencies involved in
export and import verification or information collection, and for each stage in the trade and transportchain.  A comprehensive, « holistic » approach is needed to maximise the benefits of IT based
systems.  Automation should logically follow, rather  than precede other initiatives to simplify and
harmonise requirements.
International Instruments
2.2 Existing instruments calling for the application of automated customs clearance:
2.2.1 Kyoto Convention
Existing Convention of 1973
Annex J.1 (Customs application of computers), Recommended Practice 7:
“The Customs authorities should review and where appropriate modernize existing
manual procedures, documentation and coding practices prior to introducing the use of
ADP techniques.”
Annex J.1 (Customs application of computers), Recommended Practice 10:
“Customs authorities should consult with other agencies (both national and
international), when systems are being considered, developed or enhanced, with a viewto avoiding duplication of effort wherever possible.”
Proposed revised Convention
General Annex: Chapter 7 (Information technology), Standard 1:
“The Customs shall apply information technology to support Customs operations, where
it is cost-effective and efficient for the Customs and the trading community”
General Annex: Chapter 7 (Information technology), Standard 3:
“The introduction of information technology shall be carried out in consultation with all
relevant parties directly affected to the greatest extent possible.”
General Annex: Chapter 1 (General Principles), Standard 3:
“The Customs shall institute and maintain formal consultative relationships with the
trade to increase co-operation and facilitate participation in establishing the most
effective methods of working commensurate with national provisions and international
agreements.”
2.2.2 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments; S ection B (Customs), Recommendation 3:G/C/W/132
Page 16
“Maximize the use of information technology to assist Customs in the efficient
performance of their duties. Computer applications for the Customs processing of
commercial and financial transactions should be developed taking into consideration the
experiences of all countries. Consideration should be given where applicable to
implementing UNCTAD's programme for Customs computerization and reform, the
Automated System for Customs Data (ASYCUDA). Computer interfaces (aimed atusing United Nations EDIFACT interchange standards) which allow for the electronic
submission of manifests, goods declarati ons, etc., should be developed and made
available to traders;”
2.2.3 UN/ECE Recommendations:
Recommendation 18: Facilitation Measures Related to International Trade Procedures
Group 9- Measures related to entry and/or transit9.4 Acceptance of ADP-produced Customs Goods declarations, etc.
“Customs authorities in importing countri es should implement the Recommendation (16
June 1981) of the Customs Co-operation Council concerning the transmission and
authentication of Goods declarations which are processed by computer. In consequence,
and under conditions to be laid down by the Customs authorities, they should:
1. Allow declarants to use electronic or other automatic means to transmit to the
Customs Goods declarations for automatic processing. Such declarations may
be transmitted either by direct link between the data processing systems of theCustoms and those of the declarant or  on magnetic or other ADP media;
2. Accept that Goods declarations which are transmitted by electronic or other
automatic means to Customs be authenticated other than by handwritten
signature.”
3. PRE-ARRIVAL PROCESSING, POST CLEARANCE CONTROLS AND AUDIT (EC,
G/C/W/122)
3.1 WTO provisions should be conceived that integrate the revised Kyoto Convention in order to
promote, progressively, the universal introduction of modern concepts such as Pre-arrival Processing,
Post Clearance Controls and Audit, and guide their development in a trade enhancing and equitable
manner.  Trade issues that should be addressed in such a set of provisions would include : the
definition and scope of such systems, the eligibility of  traders to benefit from them (to ensure that not
only major companies but all traders able to comply with objective competence and compliancebenchmarks would qualify); how to ensure their app lication for all control purposes (the benefits of
audit based controls are negated if they apply only for eg duty calculation purposes, while origin
verification, licensing, or statistical returns remained subject to transaction based clearance) ; and how
to ensure the flexibilities needed for customs administrations to operate according to local
circumstances.  Elaboration of the scope of audit procedures could also be considered : UN-ECE with
WCO are currently developing recommendations in this area that could be drawn upon.G/C/W/132
Page 17
International Instruments
3.2 International instruments that provide for introduction concepts such as Pre-arrival
Processing, Post Clearance Controls and Audit, include:
3.2.1 Kyoto Convention
Existing Convention of 1973
Annex J.1 (Customs application of computers), Recommended Practice 12:
“For the purposes of Customs control, Customs authorities should use administrative
assistance arrangements to facilitate the audit of commercial ADP systems located inother States.”
Annex J.1 (Customs application of computers), Recommended Practice 17:
“The Customs authorities should consider incorporating Customs selectivity criteria in
Customs ADP systems, in particular, to facilitate the identification of Goods
declarations for checking or of consignments for examination.”
Annex B.1 ( Clearance for home use), Recommended Practice 24:
“The declarant should be authorized to lodge a Goods declaration for home use at a
competent Customs office before the goods arrive at that office.”
Proposed revised Convention
13
General Annex, Chapter 3 (Clearance formalities), Standard 21:
“National legislation shall make provision for the lodging and registering or checking of
the Goods declaration and supporting documents prior to the arrival of the goods.”
General Annex, Chapter 3 (Clearance formalities), Transitional Standard 32:
“For authorized persons who meet criteria specified by the Customs, including having
an appropriate record of compliance with Customs requirements and a satisfactory
system for managing their commercial records, the Customs shall provide for:
- release of the goods on the provision of the minimum information necessary to
identify the goods and permit the subsequent completion of the final Goods
declaration;
                                                     
13  During the third meeting of the Kyoto Working Group, it was decided to develop general guidelines
covering all aspects of customs control.  These guideli nes, which are expected to be adopted by the WCO in
April 1999, are set to contain a comprehensive overview of best practices and issues which a control programme
of any modern customs administration should address. Inter alia , the guidelines will promote (i) a shift from
exclusive movement controls to more audit-based contro ls, e.g. from the introduction of simplified procedures
up to the authorization for trader self-assessment; ( ii) risk management, (iii) compliance an performance
indicators to keep the programme efficient and effective,  (iv) customs/trade co-operation, (v) mutual assistance
among customs authorities, (vi) use of information technology.  The guidelines further emphasize that theimplementation of a modern Customs control programme requires continuous support from senior management,
sufficient trained, motivated and paid staff and proper legislation, organization and procedures.  The content of
these guidelines also relates to other proposals of this section; i.e. in section II:2-7, 9, and in section III:4 and 5.G/C/W/132
Page 18
- clearance of the goods at the declarant’s premises or another place authorized
by the Customs;
and, in addition, to the extent possible other special procedures such as:
- allowing a single Goods declaration for all imports or exports in a given period
where goods are imported or exported frequently by the same person;
- use of the authorized persons’ commercial records to self-assess their duty and
tax liability and, where appropriate, to ensure compliance with other Customs
requirements;
- allowing the Goods declaration by means of an entry in the records of the
authorized person to be supported subsequently by a supplementary Goods
declaration.”
General Annex, Chapter 6 (Customs control), Standard 6:
“Customs control systems shall include audit-based controls.”
3.2.2 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments; S ection B (Customs), Recommendation 5
“Take steps to make available facilities for pre-arrival processing of transactions, which
can deliver significant trade facilitation benefits and, with appropriate safeguards, does
not compromise in any way the control objectives of Customs. The electronic
submission of pre-arrival cargo data further facilitates this process.”
3.2.3 UN/ECE Recommendations:
Recommendation 18: Facilitation Measures Related to International Trade Procedures
Group 9- Measures related to entry and/or transit9.5 Periodic lodgement of impo rt declarations by ADP means
“Importers' forwarders/Customs brokers should investigate the benefits of periodic
lodgement of import declarations (including those for goods released from private
bonded warehouses) in computer-readable form.”
9.9 Release of goods without s ubmission of transport documents
“National authorities in importing countries should amend regulations, where necessary,
in order to permit the release of goods to the importer without the necessity of handingover a bill of lading or any other transport document. Where there is currently a need to
use transport documents to meet import regulations, the reasons should be investigated
and alternative methods adopted.”
9.13 Deferred duty payment
“National authorities should--where necessary--introduce legislation enabling Customs
to allow deferred payment of duty to all persons who provide an adequate guaranteeG/C/W/132
Page 19
covering the amount of relevant duties and taxes, or who are otherwise acceptable to the
Customs.”
9.15 Advance lodgement of Customs declarations
“Customs authorities should study the advantages of authorizing advance lodgement
and examination of Customs declarations, without prejudice to relevant provisions for
acceptance of such declarations, in order to allow goods to be cleared immediately after
arrival at the port, border crossing point, inland depot, or other place of clearance (e.g.
importer's premises).”
9.16 Immediate release system
“Customs authorities should study the advantages of immediate release systems for
Customs clearance, allowing goods to be taken directly to the importer's premises for
immediate disposal against the submission of a simplified Customs document or on the
presentation of an administrative or commercial document which permits the
identification of the goods in question. Such release should be subject to latersubmission of a proper decl aration, which may be in computer-readable form. The
release should not prejudice possible future Customs controls, including periodic
controls on the importer's premises of the goods and of the importer's records.”
9.17 Customs control on importer's premises
“To ease bottlenecks, Customs authorities should study the systems whereby approved
importers are allowed to bring sealed transport units to their premises under a release
note; meanwhile, the Customs declaration is lodged with the importer's local Customs
office and the goods can be used if the Customs have not visited the premises forinspection within a specified short period of time.”
9.18 Periodic Customs entry
“Customs authorities should study the advantages of permitting approved importers to
clear goods under a partly-completed Import declaration, subsequently to be
supplemented by a periodic schedule--which may be in computer-readable form--
containing full details of the goods imported within the relevant period.”
4. AUTHORISED TRADERS (EC, G/C/W/122)
4.1 Consideration should be given to the introduction of measures that would allow companies of
all sizes, including SMEs, able to meet objective crit eria, to benefit from authorised trader status. The
WTO should be prepared to develop the necessary criteria to ensure that systems of authorised traders
are WTO-compatible, do not discriminate among traders on the basis of size or origin, and reduce
trade barriers to the greatest possible extent.
4.2 Agreement between member governments on the criteria for eligibility, and the nature and
extent of benefits to be accorded to authorised traders, while preserving the flexibility needed by
customs administrations, would be an important step in facilitating the development between
administrations of seamless integrated transactions, which depend on common standards and
assumptions.G/C/W/132
Page 20
International Instruments
4.3 Existing provisions addressing the concept of authorized traders include:
4.3.1 Kyoto Convention
Existing Convention of 1973
no provision
Proposed revised Convention
General Annex, Chapter 3 (Clearance formalities), Transitional Standard 32:
“For authorized persons who meet criteria specified by the Customs, including having
an appropriate record of compliance with Customs requirements and a satisfactory
system for managing their commercial records, the Customs shall provide for:
- release of the goods on the provision of the minimum information necessary to
identify the goods and permit the subsequent completion of the final Goodsdeclaration;
- clearance of the goods at the declarant’s premises or another place authorized
by the Customs;
and, in addition, to the extent possible other special procedures such as:
- allowing a single Goods declaration for all imports or exports in a given period
where goods are imported or exported frequently by the same person;
- use of the authorized persons’ commercial records to self-assess their duty and
tax liability and, where appropriate, to ensure compliance with other Customs
requirements;
- allowing the Goods declaration by means of an entry in the records of the
authorized person to be supported subsequently by a supplementary Goods
declaration.”
4.3.2 UN/ECE Recommendations:
Recommendation 18: Facilitation Measures Related to International Trade Procedures
Group 9- Measures related to entry and/or transit
9.17 Customs control on importer's premises
“To ease bottlenecks, Customs authorities should study the systems whereby approved
importers are allowed to bring sealed transport units to their premises under a release
note; meanwhile, the Customs declaration is lodged with the importer's local Customsoffice and the goods can be used if the Customs have not visited the premises for
inspection within a specified short period of time.”G/C/W/132
Page 21
9.18 Periodic Customs entry
“Customs authorities should study the advantages of permitting approved importers to
clear goods under a partly-completed Import declaration, subsequently to be
supplemented by a periodic schedule--which may be in computer-readable form--
containing full details of the goods imported within the relevant period.”
5. RATIONALIZATION OF OFFICIAL INTERVENTIONS AT BORDERS14
One Stop Clearance (EC, G/C/W/122 )
5.1. To complement the proposals concerning coordination of the provision of information to
different government agencies, provisions should be considered to ensure, notably at import, that
goods are subject only to a single physical intervention, normally by customs on behalf of other
agencies.  Administrations would ensure, over time, a level of coordination and delegation of controlsto customs to enable all verifications (eg health and safety data and certification, sanction controls,
IPR verification, import licence checks, export subsidy verification) to be done once only.  The
overall aim should be to set a norm of such integr ation, subject to possible exceptions (where customs
may not be qualified to carry out specific expert functions), but with the burden of proof clearly lying
on the administration seeking to maintain separate or non-harmonised control functions.
Border Agency Coordination (Canada, G/C/W/126)
5.2 WTO Members could consider rules to ensure that the activities and requirements of all
agencies present at borders are coordinated in a manner designed to facilitate trade.  One such
technique is to make maximum use of a data set which has been harmonized across the various borderagencies of a country.  This "single window" approach also lends itself readily to electronic
technology.
International Instruments
5.3 The following international provisions pursue the rationalization of official interventions at
borders, as set out in the proposals above.  Also included are provisions that address co-operation in
the conduct of official procedures by customs authorities at borders.  As far as sharing of information
is concerned, co-operation issues between customs are addressed under proposals I:6 (Single Window
Submission of Information) and I:7 (The Seamless Integrated Transaction):
5.3.1 Kyoto Convention
Existing Convention of 1973
Annex B.1 (Clearance for home use); Recommended Practice 4:
“Where corresponding Customs offices are located on a common frontier, the
Customs authorities of the two countries concerned should, as far as possible, correlate
the business hours and the competence of those offices.”
                                                     
14  This proposal is closely related to proposals I:6 (Single Window Submission of Information) and I:7
(The Seamless Integrated Transaction) which address cooperation regarding information requirements.G/C/W/132
Page 22
Annex B.1 (Clearance for home use); Recommended Practice 34:
"If the goods must also be inspected by other competent authorities (for the purpose of
applying veterinary, health, phytopathological, etc., controls) the Customs should,
where practicable, perform their examination at the same time.”
Annex C.1 (Outright exportation);Standard 5:
Where corresponding Customs offices are located on a common frontier, the Customs
authorities of the countries concerned shall as far as possible correlate the business
hours and the competence of those offices.
Proposed revised Convention
General Annex; Chapter 3 (Clearance formalities); Standard 2:
“Where Customs offices are located at common border crossing, the Customs
administrations concerned shall correlate the business hours and the competence ofthose offices.”
General Annex; Chapter 3 (Clearance formalities); Transitional Standard 3:
“At common border crossings, the customs administrations concerned shall, whenever
possible, operate joint controls.”
General Annex; Chapter 3 (Clearance formalities); Transitional Standard 4:
“Where the Customs intend to establish a new Customs office or to convert an existing
one at a common border crossing, they shall, wherever possible, co-operate with the
neighbouring Customs to establish a juxtaposed Customs office to facilitate joint
controls.”
General Annex; Chapter 3 (Clearance formalities), Transitional Standard 35:
“If goods must be inspected by other competent authorities and the Customs also
schedules an examination, the Customs shall ensure that the inspections are co-
ordinated and, if possible, carried out at the same time.”
5.3.2 International Convention on the Harmon ization of Frontier Controls of Goods
Article 4 (Co-ordination of controls):
“The Contracting parties shall undertake, to the extent possible, to organize in a
harmonized manner the intervention of the Customs service and the other control
services.”
Annex 1 (Harmonization of Customs Controls and other Controls):Article 1:  (Principles)
1. As the Customs are present at all frontiers and as their interventions are of a
general nature, other controls shall, as far as possible, be organized in a harmonized
manner with Customs controls.G/C/W/132
Page 23
2. In application of this principle, it is possible if appropriate to carry out all or
part of these controls elsewhere than at the frontier, provided that the procedures used
contribute to facilitate the international movement of goods.
Article 2:
1. The Customs shall be kept fully informed of the requirements prescribed by
laws or regulations which may lead to the operation of controls other than Customs
controls.
2. When it is found other controls are necessary, the Customs shall ensure that the
services concerned are informed and shall cooperate with them.
Article 3 (Organization of Controls):
1. When several controls have to be carried out at the same place, the competent
services shall make all appropriate arrangements to carry them out simultaneously, if
possible, or with the minimum delay.  They shall endeavour to coordinate theirrequirements as to documents and information.
2. In particular, the competent services shall make all appropriate arrangements
for the necessary personnel and facilities to be available at the place where the controls
are carried out.
3. The Customs may, through explicit delegation of powers by the competent
services, carry out on their behalf all or part of the controls of which these services are
responsible.  In this case, these services will see to it that the necessary means be
furnished to Customs.
Article 4 (Result of Controls):
1. In all matters dealt with by this Convention, control services and Customs shall
exchange all relevant information as soon as possible so as to ensure that controls areefficient.
2. On the basis of the results of the controls carried out, the competent service
shall decide on the subsequent treatment of the goods, and if necessary, shall inform the
services responsible for other controls.  On the basis of this decision Customs shall
subject the goods to the appropriate Customs procedure.
The Convention also contains annexes on Medico-Sanitary Inspection (Annex 2); Veterinary
Inspection (Annex 3); Phytosanitary Inspection (Ann ex 4), Control of Compliance with Technical
Standards (Annex 5); Quality Control (Annex 6) which set out particular procedures for these
inspections.
5.3.3 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments, Section B (Customs), Recommendation 7:
“[Governments, through their Customs authorities, should] rationalize the cargo
clearance process, which frequently requires the intervention of several government
agencies in addition to Customs, through coordinated interventions by the agenciesG/C/W/132
Page 24
concerned or by investing responsibility for all cargo clearance activities in one single
authority, i.e. Customs.”
6. REMOTE FILING AND SIMPLIFIED CLEARANCE PROCEDURES (EC, G/C/W/122)
6.1 Consideration of WTO provisions whereby facilities allowing for the filing of customs and
other documents at a location different from the port of export or arrival of the goods, and clearance of
goods at other places than the customs office, would be established by Members as an option for
traders, based on the relevant provisions in the revised Kyoto Convention.
International Instruments
6.2 At present, no international instruments contain mandates to provide for remote filing and
customs clearance at other places than the customs office.  Standards on customs clearance in the
existing Kyoto Convention merely allow for such concepts.  The revised Kyoto Convention seeks to
introduce these concepts to a greater extent.
6.2.1 Kyoto Convention
Existing Convention of 1973
Annex B.1 (Clearance for home use), Standard 3:
“The Customs authorities shall designate the Customs offices at which goods may be
cleared for home use.  In determining the competence of these offices and their hours of
business, the factors to be taken into account shall include the particular requirements of
trade and industry.”
Annex C.1 (Outright exportation), Standard 3:
“The Customs authorities shall designate the Customs offices at which goods may be
cleared for outright exportation.  In determining the competence of these offices and
their hours of business, the factors to be taken into account shall include the particularrequirements of trade, industry and transport.”
Proposed revised Convention
General Annex, Chapter 3 (Clearance formalities), Standard 1:
“The Customs shall designate the Customs offices at which goods may be cleared.  In
determining the competence and location of these offices and their hours of business,
the factors to be taken into account shall include in particular the requirements of trade
and industry.”
General Annex, Chapter 3 (Clearance formalities), Standard 1.a:
“At the request of the declarant and for reasons deemed valid by Customs, the latter
shall, subject to the availability of resour ces, perform the functions laid down for the
purposes of a Customs procedure outside the designated hours of business and away
from Customs offices.  Any expenses chargeable shall be limited to the approximatecost of the services rendered.”G/C/W/132
Page 25
General Annex, Chapter 3 (Clearance formalities), Standard 15
“The Customs shall permit the lodging of the Goods declaration at any designated
Customs office.”
6.2.2 UN/ECE Recommendations:
Recommendation 18: Facilitation Measures Related to International Trade Procedures
Group 9- Measures related to entry and/or transit9.16 Immediate release system
“Customs authorities should study the advantages of immediate release systems for
Customs clearance, allowing goods to be taken directly to the importer's premises for
immediate disposal against the submission of a simplified Customs document or on the
presentation of an administrative or commercial document which permits the
identification of the goods in question. Such release should be subject to latersubmission of a proper decl aration, which may be in computer-readable form. The
release should not prejudice possible future Customs controls, including periodic
controls on the importer's premises of the goods and of the importer's records.”
9.17 Customs control on importer's premises
“To ease bottlenecks, Customs authorities should study the systems whereby approved
importers are allowed to bring sealed transport units to their premises under a release
note; meanwhile, the Customs declaration is lodged with the importer's local Customs
office and the goods can be used if the Customs have not visited the premises forinspection within a specified short period of time.”
6.2.3 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures (SCCP
Objective 3: Simplification and Harmonizati on on the Basis of the Kyoto Convention
To improve efficiency in customs clearance and the delivery of goods in order to benefit
importers, exporters and manufacturers through simplified customs procedures and best
practices.
7. RELEASE OF GOODS (CANADA, G/C/W/126)
7.1 Goods should be released from the border and customs control as quickly as possible on the
basis of presentation and acceptance of appropriate documents and data.  Approaches to securing
expedited clearance may be premised on:
-  the pre-arrival or arrival provision of a minimal level of documentation and data coupled with
post-entry accounting and verifications; or
-  the pre-arrival or arrival provision of more extensive documentation and data which may not
require post-entry accounting and verifications.
7.2 Customs administrations may apply both of these approaches based on the nature of the
client’s business, its accounting procedures, its compliance performance, etc.  The emphasis is placedG/C/W/132
Page 26
on introducing tailored approaches to particular goods and traders that secure the objective of
expedited clearance.
International Instruments
7.3 International instruments calling for rapid release of goods include the following:
7.3.1 Kyoto Convention
Existing Convention of 1973
Annex B.1 (Clearance for home use), Standard 15,
“In support of the Goods declaration the Customs authorities shall require only those
documents considered necessary by them in order to permit control of the operation and
ensure that all requirements relating to the application of relevant restrictions or other
regulations have been complied with.”
Annex B.1 (Clearance for home use), Recommended Practice 24:
“The declarant should be authorized to lodge a Goods declaration for home use at a
competent Customs office before the goods arrive at that office.”
Proposed revised Convention
General Annex, Chapter 3 (Clearance formalities), Standard 11:
“The customs shall limit the data required in the Goods declaration to only such
particulars as are deemed necessary for the assessment and collection of duties and
taxes, the compilation of statistics and the application of customs law.”
General Annex:, Chapter 3 (Clearance formalities), Standard 13, paragraph 2:
“The release of the goods shall not be delayed provided that any security required has
been furnished to ensure collection of any applicable duties and taxes.”
General Annex, Chapter 3 (Clearance formalities), Standard 21:
“National legislation shall make provision for the lodging and registering or checking of
the Goods declaration and supporting documents prior to the arrival of the goods.”
General Annex, Chapter 3 (Clearance formalities), Standard 23:
“In support of the Goods declaration the Customs shall require only those documents
necessary to permit control of the operation and to ensure that all requirements relatingto the application of Customs law have been complied with.”
General Annex, Chapter 3 (Clearance formalities), Transitional Standard 32:
“For authorized persons who meet criteria specified by the Customs, including having
an appropriate record of compliance with Customs requirements and a satisfactory
system for managing their commercial records, the Customs shall provide for:G/C/W/132
Page 27
- release of the goods on the provision of the minimum information necessary to
identify the goods and permit the subsequent completion of the final Goods
declaration;
- clearance of the goods at the declarant’s premises or another place authorized
by the Customs;
and, in addition, to the extent possible other special procedures such as:
- allowing a single Goods declaration for all imports or exports in a given period
where goods are imported or exported frequently by the same person;
- use of the authorized persons’ commercial records to self-assess their duty and
tax liability and, where appropriate, to ensure compliance with other Customs
requirements;
- allowing the Goods declaration by means of an entry in the records of the
authorized person to be supported subsequently by a supplementary Goods
declaration.”
General Annex, Chapter 3 (Clearance formalities), Standard 33:
“When the Customs decide that goods declared shall be examined, this examination
shall take place as soon as possible after the goods declaration has been registered.”
General Annex ; Chapter 3 (Clearance formalities), Standard 43:
“If the Customs are satisfied that the declarant will subsequently accomplish all the
formalities in respect of clearance they shall release the goods, provided that thedeclarant produces a commercial or official document giving the main particulars of the
consignment concerned and acceptable to the Customs, and that security, where
required, has been furnished to ensure collection of any applicable duties and taxes.”
7.3.2 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments, Section B (Customs), Recommendation 6
“[Governments, through their Customs authorities, should] examine closely the
possibility of speeding up, as much as possible, the process of goods release based on aminimum of essential information. However, they should ensure that all information
necessary for proper revenue collection, accounting, and precise statistical reporting is
communicated to the Customs authorities.”
7.3.3 UN/ECE Recommendations:
Recommendation 18: Facilitation Measures Related to International Trade Procedures
Group 9- Measures related to entry and/or transit
9.9 Release of goods without submission of transport documents
“National authorities in importing countries should amend regulations, where necessary,
in order to permit the release of goods to the importer without the necessity of handing
over a bill of lading or any other transport document. Where there is currently a need toG/C/W/132
Page 28
use transport documents to meet import regulations, the reasons should be investigated
and alternative methods adopted.”
9.15 Advance lodgement of Customs declarations
“Customs authorities should study the advantages of authorizing advance lodgement
and examination of Customs declarations, without prejudice to relevant provisions for
acceptance of such declarations, in order to allow goods to be cleared immediately after
arrival at the port, border crossing point, inland depot, or other place of clearance (e.g.
importer's premises).”
9.16 Immediate release system
“Customs authorities should study the advantages of immediate release systems for
Customs clearance, allowing goods to be taken directly to the importer's premises for
immediate disposal against the submission of a simplified Customs document or on the
presentation of an administrative or commercial document which permits the
identification of the goods in question. Such release should be subject to latersubmission of a proper decl aration, which may be in computer-readable form. The
release should not prejudice possible future Customs controls, including periodic
controls on the importer's premises of the goods and of the importer's records.”
9.18 Periodic Customs entry
“Customs authorities should study the advantages of permitting approved importers to
clear goods under a partly-completed Import declaration, subsequently to be
supplemented by a periodic schedule--which may be in computer-readable form--
containing full details of the goods imported within the relevant period.”
8. CLEARANCE TIMES, (EC, G/C/W/122)
8.1 Consideration of setting, as a norm an abso lute time limit for routine customs clearance, with
suitable flexibility provided both for exceptional circumstances and goods that fall outside the scopeof a routine clearance procedure, which would need to be defined.
8.2. Currently, no international instruments exist that provide for absolute time limits  for customs
clearance.  Provisions that seek to secure speedy clearance or release of goods are compiled above
under II:3, II:4, and II:7.
9. THE USE OF RISK ASSESSMENT PRINCIPLES (CANADA, G/C/W/126)
9.1 Consideration should be given if and how risk assessment principles fall under the scope for
WTO rules, since for purposes of inspections at the border and for post-entry verification procedures,
risk assessment techniques will provide the greatest degree of facilitation while at the same time
providing a highly efficient means of compliance.
9.2 Existing instruments seeking the application of risk assessment principles in customs
operations:G/C/W/132
Page 29
9.2.1 Kyoto Convention
Existing Convention of 1973
no provision
Proposed revised Convention
General Annex:, Chapter 6 (Customs control), Standard 3:
“In the application of Customs control, the Customs shall use risk management.”
General Annex:, Chapter 6 (Customs control), Standard 4:
“The Customs shall adopt a compliance measurement strategy to support risk
management.”
General Annex:, Chapter 6 (Customs control), Standard 5:
“The Customs shall use risk analysis to determine which persons and which goods,
including means of transport, should be examined and the extent to which they are
examined.”
9.2.2 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments, Section B (Customs), Recommendation 4:
“[Governments, through their Customs authorities, should:] ensure the effective use of
scarce manpower resources by means of risk assessment, profiling, selectivity and
targeting techniques to identify high-risk consignments for physical examination. The
proportion of consignments to be physically examined by Customs should be kept to a
minimum consistent with the accomplishment of control objectives.”
9.2.3 UN/ECE Recommendations:
Recommendation 18: Facilitation Measures Related to International Trade Procedures
Group 9- Measures related to entry and/or transit9.11 Selective Customs examination
“Customs authorities should avoid systematic physical examination of goods under
clearance. They should carry out selective controls on the basis of the Customs entry, to
be complemented by a physical examination of the goods only when required.”
9.2.4 WCO Recommendations
--  Good Classification Work Model9.2.5 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures
Objective 11: Risk Management TechniquesG/C/W/132
Page 30
“To focus Customs enforcement efforts on high-risk goods and travellers and facilitate
the movement of low-risk shipments, through a flexible approach tailored to each APEC
economy.”
10. COMMERCIAL SAMPLES AND GOODS FOR EXHIBITION (CANADA, G/C/W/126)
10.1 Simplified and streamlined clearance requirements and procedures for these types of goods
are increasingly critical to the timely and effective operations of international business.  These
procedures considered should secure timely clearance and entry through the introduction of
standardized and simplified procedures for such g oods that are not destined to enter the economy for
commercial purposes, are of negligible value or are to be subsequently exported.
International Instruments
10.2 International Instruments that provide for simplified import requirements for commercial
samples and/or goods for exhibition include:
10.2.1 Convention on Temporary Admission (Istanbul Convention)15
Preamble:
“…Resolved to facilitate temporary admission by simplifying and harmonizing
procedures, in pursuit of economic, humanitarian, cultural, social or touringobjectives,…"
Annex B.1. (goods for display or use at exhibitions, fairs, meetings or similar events), Article 6:
“(1) Customs examination and clearance on the importation and re-exportation of
goods which are to be, or have been, displayed or used at an event shall, whenever
possible and appropriate, be effected at that event.
(2) Each Contracting party shall endeavour, wherever it deems appropriate in view
of the importance and size of the event, to establish a Customs office for a reasonableperiod on the premises of an event held within its territory.”
10.2.2 Customs Convention on the ATA Carnet for the Temporary Admission of Goods
16
The ATA Convention regulates the use and issuance of the ATA carnet, under which
commercial samples can be temporarily imported (as well as goods temporarily imported under other
international conventions concerning temporar y admission to which the state concerned is a
Contracting party, or under national regulations on temporary admission).  The ATA Convention
seeks to eliminate the two main difficulties encountered whenever goods are temporarily imported,
namely the need to fill out a  national customs declar ation and the necessity of furnishing security for
the payment of the customs duties and other taxes chargeable in case of failure to re-export.  The ATA
Carnet is an international customs document issued and approved by associations approved by thecustoms.
                                                     
15  Concluded at Istanbul, 26 June 1990 ; entered into force 27 November 1993.
16  Concluded at Brussels,  6 December 1961, entered into force 30 July 1963.G/C/W/132
Page 31
10.2.3 Customs Convention concerning facilities for the importation of goods for display or use at
exhibitions, fairs, meetings or similar events17
Article 8 (Reduction of formalities to a minimum):
“This Article contains a general undertaking that each Contracting Party will reduce to a
minimum the Customs formalities required in connection with the facilities provided for
in the Convention and  will promptly publish all regulations concerning such
formalities.”
Article 10 (Customs Clearance):
“With a view to avoiding the unpacking of goods and delays caused by customs
clearance carried out at the frontier, the Convention recommends that, whenever
possible and appropriate, customs examination and clearance of goods both on
importations and re-exportation should take place at the event at which the goods are to
be, or have been displayed or used.  Furthermore, in order to reduce the exhibitor’s costs
it is recommended that, where they deem appropriate in view of the importance and sizeof the event, the customs authorities should establish a  customs office for a reasonable
period within the premises of that event.”
10.2.4 Kyoto Convention
Existing Convention of 1973
Annex B.2. (relief from import duties and taxes in respect of goods declared for home use),
Standard 14:
“Relief from import duties and taxes and from economic prohibitions or restrictions
shall be granted in respect of samples of no commercial value (samples of negligible
value within the meaning of the international Convention to facilitate the importation of
commercial samples and advertising material; Geneva, 7 November 1952).”
Proposed revised Convention
Specific Annex B – Procedures concerning home use, Chapter 3 (relief from import duties and taxes
in respect of goods declared for home use), Recommended Practice 718:
“Relief from import duties and taxes and from economic prohibitions and restrictions
should be granted in respect of the following goods under the conditions specified, andprovided that any other requirements set out in national legislation for such relief are
complied with :
[ … ]
(ii) Samples of no commercial value;”
                                                     
17  concluded at Brussels, 8 June 1961, entered into force13 July 1962.
18  draft as of June 1998, pending adoption by the Permanent Technical CommitteeG/C/W/132
Page 32
10.2.5 WCO Recommendation
-- Samples to be regarded as being of negligible  value within the meaning of the International
Convention to facilitate the Importation of Commercial Samples and Advertising Material,
30 November 1956, (T2-4101)
10.2.6 International Convention to facilitate the importation of commercial samples and
advertising materia l19
Article VII (Simplification of Formalities):
“1. Each Contracting Party shall keep to  a minimum the formalities required in
connection with the facilities accorded by the present Convention.
2. Each Contracting Party shall publish pr omptly all regulations introduced in this
respect in such a manner as to enable persons concerned to become acquainted with
them and to avoid the prejudice which might result from the application of formalities
of which they are unaware.”
10.2.7 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures
Objective 9: Provisions for Temporary Importation, e.g. acceding to the A.T.A. Carnet Convention
or the Istanbul Convention.
“To help business move goods such as commercial samples, professional equipment,
tools of trade and exhibition material across borders with a high degree of certainty as to
how these goods will be treated by Customs by having standard procedures for
admitting goods on a temporary basis.”
11. EXPRESS CONSIGNMENT CLEARANCE (CANADA, G/C/W/126)
11.1 WTO Members could promote the widespread im plementation of principles contained in the
WCO Express Consignment Guidelines, the international standard procedures for clearance of express
goods.  The objective would be to introduce expedited clearance procedures for these shipments whilemaintaining appropriate enforcement and targeting activities
International Instruments
11.2 International instruments providing for expedited clearance of express consignments:
11.2.1 Kyoto Convention
Existing Convention of 1973
Annex F.5. concerning urgent consignments, Standard 3:
“Clearance of urgent consignments shall be carried out rapidly as a matter of priority,
and Customs control shall be restricted to the minimum necessary to ensure compliance
with the laws and regulations which the Customs are responsible for enforcing.”
                                                     
19  concluded at Geneva, 7 November 1952, entry into force 20 November 1955.G/C/W/132
Page 33
Annex F.5. concerning urgent consignments, Standard 4:
“When clearing urgent consignments Custom s authorities shall take into account such
factors as the degree of urgency with which a consignment is needed, the nature and
value of the consignment and the particular circumstances relating to it. In any event
absolute priority shall be granted to relief consignments.”
Proposed revised Convention
General Annex, Chapter 3 (Clearance Formalities), Standard 34:
“When scheduling examinations, priority shall be given to the examination of live
animals and perishable goods and to other goods which the Customs accepts areurgently required.”
11.2.2 WCO  Customs Guidelines for the Clearance of Express Consignments
The WCO Express Consignment Guidelines  provide a tool for customs administrations to
grant fast clearance while maintaining customs control with regard to express consignments.Guidelines are given on the scope of documentation necessary for clearance, on valuation, onconditional and unconditional clearance, and on the differentiation between high- and low-valueconsignments.
11.2.3 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures
Objective 12: Guidelines on Express Consignments Clearance
To implement principles contained in the WCO Guidelines on Express Consignment
Clearance,  the international standard procedures for clearance of express goods,
working in partnership with express industry associations.
III. PROPOSALS CONCERNING TRANSPARENCY AND RELATED ISSUES
1. ACCESS TO INFORMATION NECESSARY FOR IMPORT AND EXPORT
Availability of Requirements (Canada, G/C/W/126)
1.1 The public dissemination of and easy access to national laws, regulations and administrative
policies and guidelines (e.g. through electronic means) to the international trading community
(including references to various governmental requirements which may need to be satisfied dependingon the particular goods).
Transparency (Creation of a Single Co mprehensive Database) (EC, G/C/W/122)
1.2 Calls have been made accordingly for the creation of a single comprehensive database,
accessible by internet, assembling all relevant laws, rules and procedures for import and export.  It
will be necessary in the WTO discussions to evaluate the most efficient means of ensuring maximum
transparency and availability to traders, especially SMEs, by exploiting existing national and
international sources, avoiding duplication, and to the extent that more information is needed, to
ensure that sufficiently detailed and comprehensive transparency requirements are established.G/C/W/132
Page 34
International Instruments
1.3 The following provisions in international agr eements seek to increase access to information
necessary for import and export:
1.3.1 Kyoto Convention
Existing Convention of 1973
Annex G.1 (Information supplied by the Customs); Standard 3:
“The Customs authorities shall ensure that all relevant information of general
application pertaining to the laws and regulations which they are responsible forenforcing is readily available to any interested person.”
Annex G.1 (Information supplied by the Customs); Standard 5:
“At the request of the interested person, the Customs authorities shall provide, as
quickly and as accurately as possible, information relating to the specific matters raised
by the interested person and pertaining to the laws and regulations which the Customs
authorities are responsible for enforcing.”
Annex G.1 (Information supplied by the Customs); Recommended Practice 6:
“The Customs authorities should supply not only the information specifically requested
but also any other pertinent information which they consider the interested person
should be made aware of.”
Proposed revised Convention
General Annex, Chapter 9 (Information, decisions and rulings supplied by the Customs), Standard 1:
“The Customs shall ensure that all relevant information of general application
pertaining to Customs law is readily available to any interested person.”
General Annex, Chapter 9 (Information, decisions and rulings supplied by the Customs), Transitional
Standard 3:
“The Customs shall use information technology to enhance the provision of
information.”
General Annex, Chapter 9 (Information, decisions and rulings supplied by the Customs), Standard 4:
“At the request of the interested person, the Customs shall provide, as quickly and as
accurately as possible, information relating to the specific matters raised by theinterested person and pertaining to Customs law.”
General Annex, Chapter 9 (Information, decisions and rulings supplied by the Customs), Standard 5:
“The Customs shall supply not only the information specifically requested but also any
other pertinent information which they consider the interested person should be made
aware of.”G/C/W/132
Page 35
1.3.2 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures
Objective 2: Transparency of Customs Procedures, including Information on Customs Laws,
Regulations, Administrative Guidelines, Procedures and Rulings:
“To ensure traders have all the pertinent information for business decisions through the
provision of accurate, consistent and user-friendly information.”
2. ADVANCE RULINGS (CANADA, G/C/W/126)
2.1 International business requires as much certainty as possible in the conduct of international
trade.  WTO Members should consider the use of rulings, issued in advance of importations, which
are binding on the importing authorities provided that the goods and the circumstances at importationare identical to those presented in the ruling request.  Rulings could cover the main elements of import
requirements, for example, tariff classification and applicable duties and taxes.  The Uruguay Round
Agreement on Rules of Origin contains provisions for such advance rulings and might serve as a
model to apply more generally
International Instruments
2.2 International instruments that have introduced the concept of advance rulings include:
2.2.1 Kyoto Convention
Existing Convention of 1973
Annex G.1 (Information supplied by the Customs); Standard 3:
“The Customs authorities shall ensure that all relevant information of general
application pertaining to the laws and regulations which they are responsible for
enforcing is readily available to any interested person.”
Annex G.1 (Information supplied by the Customs); Standard 5:
“At the request of the interested person, the Customs authorities shall provide, as
quickly and as accurately as possible, information relating to the specific matters raised
by the interested person and pertaining to the laws and regulations which the Customs
authorities are responsible for enforcing.”
Proposed revised Convention
General Annex, Chapter 9 (Information, decisions and rulings supplied by the Customs), Standard 1:
“The Customs shall ensure that all relevant information of general application
pertaining to Customs law is readily available to any interested person.”
General Annex, Chapter 9 (Information, decisions and rulings supplied by the Customs), Standard 4
“At the request of the interested person, the Customs shall provide, as quickly and as
accurately as possible, information relating to the specific matters raised by theinterested person and pertaining to Customs law.”G/C/W/132
Page 36
2.2.2 WCO Recommendation concerning a Good Classification Model
This Recommendation provides a framework for improvement of classification work by Customs
Administrations.  It recommends, inter alia , that classification work be carried out “so as to facilitate
international trade and investment and to ensure compliance with both fiscal and trade rules or laws
with emphasis being placed on the pre-entry and post-clearance stages and not only on thedeclaration-processing stage.” It further suggests that (i) “details on pre-entry classification
information should be included in a centralized database so as to enable checking by others and thus
avoiding issuance of conflicting information on the same product by different offices;” and states that
(ii) “binding classification information is highly desirable, and ideally should be issued within a
prescribed time and should remain valid for a specific period unless found to be incorrect, altered or
withdrawn.  It further states that it is (iii) “highly desirable that any pre-entry or binding classification
information (or ruling) issued to an importer or pr ospective importer or an exporter should also be
published in order to provide guidance to the general public on the classification of similar or related
merchandise.”
2.2.3 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures
Objective 8: Introduction of an Advance Classification Ruling System
“To establish simplified procedures for providing classification information prior to
importation, thus bringing certainty and predictability to international trading and
helping traders to make sound business decisions based on legally binding advice.”
3. JUDICIAL OR ADMINISTRATIVE REDRESS, REVIEW AND APPEAL
Judicial or Administrative Redress, EC; G/C/W/122)
3.1 Supplement GATT Article X :3 and Article VIII :3 with a provision ensuring that tribunals
act rapidly enough to preserve commercial interests (eg delivery deadlines, perishable goods),
drawing on what has been developed within the Kyoto Convention work.  In addition, study the way
in which the provisions of Articles VII :3 and X :3 have been implemented by WTO members.
Review and Appeal, (Canada, G/C/W/126)
3.2 WTO Members should consider obligations relating to the ability of importers and exporters
to have access to an unbiased administrative appeal process, in the first instance, and then to judicial
levels to seek a redetermination of treatment accorded by port of entry officials.
International Instruments
3.3 The following international instruments dealin g with customs procedures provide for rules on
judicial and administrative redress:
3.3.1 Kyoto Convention
Existing Convention of 1973
Annex H.1 (Appeals in Customs matters), Standard 6:
“National legislation shall provide for the right of an initial appeal to the Customs
authorities.”G/C/W/132
Page 37
Annex H.1 (Appeals in Customs matters), Standard 7:
“Where an appeal to the Customs authorities is dismissed, the appellant shall have the
right of a further appeal to an authority independent of the Customs administration.”
Annex H.1 (Appeals in Customs matters), Standard 8:
“In the final instance, the appellant shall have the right of appeal to a judicial authority.”
Proposed revised Convention
General Annex, Chapter 10 (Appeals in Customs matters), Standard 4:
“National legislation shall provide for the right of an initial appeal to the Customs.”
General Annex, Chapter 10 (Appeals in Customs matters), Standard 5:
“Where an appeal to the  Customs is dismissed, the appellant shall have the right of a
further appeal to an authority independent of the Customs administration.”
General Annex, Chapter 10 (Appeals in Customs matters), Standard 6:
“In the final instance, the appellant shall have the right to appeal to a judicial authority.”
4.3.2 APEC: Collective Action Plan by the Sub-Committee on Customs Procedures (SCCP )
Objective 7: Introduction of Clear Appeals Provision:
“To provide business with an opportunity to challenge potentially erroneous or
inequitable Customs decisions through mechanisms for transparent, independent and
timely appeals.”
4. COOPERATION BETWEEN TRADE AND CUSTOMS/OTHER AGENCIES, (EC,
G/C/W/122)
4.1 Consideration of the scope for WTO rules requiring each Member to set up a systematic
mechanism of cooperation on trade facilitation.  This could be a sui generis provision or based on
adoption of the UN-ECE Recommendation 4 concer ning the establishment of national trade
facilitation organs.
International Instruments
4.2 The following international instruments foresee institutionalized trade-customs co-operation:
4.2.1 Kyoto Convention
Existing Convention of 1973
no provisionG/C/W/132
Page 38
Proposed revised Convention
General Annex, Chapter 1 (General Principles), Standard 3:
“The Customs shall institute and maintain formal consultative relationships with the
trade to increase co-operation and facilitate participation in establishing the mosteffective methods of working commensurate with national provisions and international
agreements.”
General Annex, Chapter 6 (Customs control), Standard 7:
“The Customs shall seek to co-operate with other Customs administrations and seek to
conclude mutual administrative assistance agreements to enhance Customs control.”
General Annex, Chapter 6 (Customs control), Standard 8:
“The Customs shall seek to co-operate with traders and seek to conclude Memoranda of
Understanding to enhance Customs control.”
4.2.2 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments: S ection B (Customs), Recommendation 10
“Take steps to foster a cooperative rather than a confrontational approach to Customs
operations. The Memorandum of Understanding (MOU) programme of the Customs
Cooperation Council should be used as a vehicle for greater cooperation between
Customs authorities and commercial operators.”
4.2.3 UNECE Trade Facilitation Recommendation 4: National Trade Facilitation Organs
The Working Party on Facilitation of International Trade Procedures “recommends that
the governments of countries Members of the Economic Commission for Europe, in accordance
with their national regulations, encourage the implementation of recommendations onfacilitation of international trade procedures through setting up national organizations or
committees, or by administrative or other suitable means.”
The Working Party “further recommends to the Commission to draw the attention of the
Economic and Social Council and the other United Nations Regional Economic Commissions to
the desirability of establishing national committees on facilitation of trade procedures, in
countries not members of the Economic Comm ission for Europe, where they do not exist
20.”
4.2.4 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments, Section B (Customs), Recommendation 10:
“Take steps to foster a cooperative rather than a confrontational approach to Customs
operations. The Memorandum of Understanding (MOU) programme of the Customs
                                                     
20  In the annotations to the recommendation, the Working party provides guidelines for establishing
such national organizations or committees, and identifies  as action areas (i) trade document alignment, as well
as (ii) automatic data processing and coding.G/C/W/132
Page 39
Cooperation Council should be used as a vehicle for greater cooperation between
Customs authorities and commercial operators.”
4.2.5 WCO Declaration on the Further National Development of Memoranda of Understanding
Between Customs and the Trading Community Aimed at Co-operation to prevent Drug
Smuggling
The Customs Co-operation Council declares, inter alia , “that Members should give urgent
consideration to concluding MOUs on a national level with companies and trade associations involved
in international commerce, transport and travel, where they have not done so, or to introducing other
voluntary co-operative programmes, to further support the joint efforts of Customs and the trade in the
fight against drug smuggling.”
5. CORRUPTION AND INTEGRITY ISSUES (EC, G/C/W/122)
5.1 Consideration of benchmarking of certain generally agreed standards of performance, so as to
give political guidance to administrations as to the direction they should be taking in terms of medium
to long term administrative reform.  The WCO’s Arusha Declaration and the WCO’s customs reform
guidelines could offer such benchmarks.  Further consideration could also be given to the valuableobservation made by Chile, at the WTO Symposium in March, that the setting of performance
indicators, and the establishment of customs’ own missions and management programmes, with
unequivocal political support, was a key factor in ensuring effective customs modernisation.
International Instruments
5.2. Existing instruments that address corruption and integrity issues:
5.2.1 Columbus Ministerial Declaration on Trade Efficiency
Recommendations to Governments, Section B (Customs), Recommendation 1:
In consultation with other interested parties (both governmental and non-governmental,
as appropriate), clearly define their corporate objectives for Customs and develop and
publish an overall long-term plan which sets out the manner in which it is intended toachieve these objectives;
Recommendations to Governments, Section B (Customs), Recommendation 2:
“[Governments should, through their Customs authorities] urgently examine their
existing Customs practices and institute a programme of reform for those procedures
that are identified as inefficient or redundant.  Reference should be made to existinginternational conventions on Customs process simplification and harmonization (the
Kyoto Convention of the Customs Cooperation Council).  This should be undertaken
with national trade and transport interests to en sure full coordination of carrier, port and
Customs controls.”
Recommendations to Governments, Section B (Customs), Recommendation 11:
“[Governments should, through their Customs authorities] take steps to ensure the
highest level of integrity and professional standards within their Customs service. The
measures identified by the Customs Cooperation Council in the Arusha Declaration onG/C/W/132
Page 40
Integrity in Customs should be implemented. Effective measures are also required to
discourage low standards of integrity in the trading community.”
Recommendations to Governments, Section B (Customs), Recommendation 12:
“[Governments should, through their Customs authorities] institute Customs reform
programmes aimed at enhancing the efficiency and effectiveness of their Customs
services, thereby avoiding as far as possible, for example, the need to use the services of
pre-shipment inspection agencies to carry out Customs-related activities. While recourse
to such services might be a necessity in certain circumstances, it should be regarded as
an interim measure and conducted in conformity with the provisions of the agreement
on preshipment inspection (PSI) annexed to the Marrakesh agreement.”
Recommendations to Governments, Section B (Customs), Recommendation 17:
“[Governments should, through their Customs authorities] ensure that Customs are
adequately resourced to perform their designated role efficiently, effectively and to a
high standard of professional ethics, since a Customs service starved of resources will
certainly be an obstacle to trade.”
Recommendations to Governments, Section B (Customs), Recommendation 18:
“[Governments should, through their Customs authorities] offer training (including
through scholarships) especially directed  to Customs professionals in developing
countries for training nationally or abroad in cooperation with the Customs Cooperation
Council (CCC) and/or UNCTAD. This training should cover the requirements of
international Customs conventions and regional integration, with emphasis on
operational aspects.”
5.2.3 WCO Arusha Declaration
The Arusha Declaration (Declaration of the Customs Cooperation Council concerning integrity
in Customs, 1993) assigns top priority to the comb at of corruption inside customs administrations. In
it, the Customs-Cooperation Council (now WCO)
“declares that a top priority for all governments should be to ensure that Customs is free
of corruption.  This requires a firm commitment at the highest political and
administrative levels to maintaining a high standard of integrity throughout the civil
service and particularly in the Customs.”
The declaration further states that national Customs integrity programmes must take account a
number of key factors, which include, inter alia , (i) clear and precise customs legislation; (ii) simple,
consistent and easily accessible  procedures based on the Kyoto Convention, including a procedure for
appealing against decisions of the Customs ; (iii) automation; (iv) the establishment of mechanisms for
internal control and diversification of tasks; (v) sufficient remuneration of customs officers, (vi)sufficient training; (vii) a Code of Conduct; (viii) and an open relationship between customs andcustoms brokers.
IV. OTHER ISSUES RAISED BY DELEGATIONS
1. A number of issues which are not explicitly covered by the proposals contained in this note
have been raised by delegations both in writing as well as orally, which were subsequently not further
elaborated on.  For reasons of completeness, these issues are reproduced below:G/C/W/132
Page 41
2. Switzerland, in G/C/W/114 proposed that the G oods Council discuss the following issues:
- “The lack of (or the deviation from) international transport rules for all modes of transport, in
respect of documentation and technical regulations.
- A general concern of many speakers was the wide range of discretion on the part of officials
arising from a lack of precision and transparency in administrative regulations which is also a
major source of irregularities and corruption.  It appears that the various provisions in theAgreement on Import Licensing Procedures (as well  as in Article X of the GATT) with regard
to automatic and non-automatic licences, the publication and specification of all fees and
charges could be used to examine the various suggestions made and to look into ways and
means to improve the situation.
- In a similar vein, the better implementation of internationally agreed messaging protocols - a
trade facilitation instrument which often cannot be used because of governmental rulesprescribing specific payment methods which do not allow the use of these protocols - could be
looked into by the Committee on Import Licensing.”
3 The European Communities, in G/C/W/122, flagged the following additional issues:
“The EU recognises that any effort to simplify the international trade transaction should
consider the process in its entirety. In addition to the suggestions set out above, WTO members will
need to consider how to ensure maximum simplif ication and harmonisation of data and procedures
relevant to cargo transportation and logistics, specific requirements in respect of transport of
dangerous goods, freight forwarding, and banking and payments transactions attached to tradedgoods. Electronic commerce – the introduction of automated systems and EDI-based messaging – is
also a key element in simplification of data which has only been referred to briefly.”
4. Norway, at the meeting of 28 and 29 September 1998, called for increased standardization of
documentation and regulations between the different modes of transport with respect to dangerous
goods.G/C/W/132
Page 42
ANNEX 1
International Conventions quoted
CONTRACTING
PARTIESConvention on
Temporary
Admission1Customs Convention
on the ATA carnet
for the temporary
admission of goods2Customs Convention
concerning facilities
for the importation of
goods for display or
use at exhibitions,
fairs, meetings or
similar events3International
Convention to
facilitate the
importation of
commercial samples
and advertising
material4International
Convention on the
Harmonization of
Frontier Controls of
Goods5International
Convention on the
Simplification and
Harmonization of
Customs Procedures
(Kyoto Convention)
MEMBERS
Angola
Antigua and Barbuda
Argentina
A u s t r a l i a XXXX X
A u s t r i a XXXXXX
Bahrain
Bangladesh
Barbados
Belgium X X X X X X
Belize
Benin
Bolivia
Botswana X
Brazil
Brunei Darussalam
Bulgaria X X X
Burkina Faso
Burundi X
Cameroon X
C a n a d a XXX
Central African Rep. X
ChadG/C/W/132
Page 43CONTRACTING
PARTIESConvention on
Temporary
Admission1Customs Convention
on the ATA carnet
for the temporary
admission of goods2Customs Convention
concerning facilities
for the importation of
goods for display or
use at exhibitions,
fairs, meetings or
similar events3International
Convention to
facilitate the
importation of
commercial samples
and advertising
material4International
Convention on the
Harmonization of
Frontier Controls of
Goods5International
Convention on the
Simplification and
Harmonization of
Customs Procedures
(Kyoto Convention)
Chile
Colombia
Congo X
Costa Rica
Côte d’Ivoire X X X
C u b a XXXXX
Cyprus X X X X
Czech Republic X X X X X X
Democratic Rep. of
the Congo
D e n m a r k XXXXXX
Djibouti
Dominica
Dominican Republic X
EC X XX
Ecuador
Egypt X X X
El Salvador
Fiji X
F i n l a n d XXXXXX
F r a n c e XXXXXX
Gabon
Gambia X
G e r m a n y XXXXXX
Ghana X X
Greece X X X X X X
Grenada
GuatemalaG/C/W/132
Page 44
CONTRACTING
PARTIESConvention on
Temporary
Admission1Customs Convention
on the ATA carnet
for the temporary
admission of goods2Customs Convention
concerning facilities
for the importation of
goods for display or
use at exhibitions,
fairs, meetings or
similar events3International
Convention to
facilitate the
importation of
commercial samples
and advertising
material4International
Convention on the
Harmonization of
Frontier Controls of
Goods5International
Convention on the
Simplification and
Harmonization of
Customs Procedures
(Kyoto Convention)
Guinea Bissau
Guinea, Rep. of X
Guyana
Haiti X
Honduras
Hong Kong, China X
H u n g a r y XXXXXX
Iceland X X X
India X X X X
Indonesia X
I r e l a n d XXXXXX
I s r a e l XXXX
I t a l y XXXXXX
Jamaica X
Japan X X X X
Kenya XX
Korea X X X X
Kuwait
Lesotho X X X X
Liechtenstein XX
L u x e m b o u r g XXXXXX
Macau
Madagascar X
Malawi X
Malaysia X X X
Maldives
Mali X
Malta X X XG/C/W/132
Page 45CONTRACTING
PARTIESConvention on
Temporary
Admission1Customs Convention
on the ATA carnet
for the temporary
admission of goods2Customs Convention
concerning facilities
for the importation of
goods for display or
use at exhibitions,
fairs, meetings or
similar events3International
Convention to
facilitate the
importation of
commercial samples
and advertising
material4International
Convention on the
Harmonization of
Frontier Controls of
Goods5International
Convention on the
Simplification and
Harmonization of
Customs Procedures
(Kyoto Convention)
Mauritania
Mauritius X X X
Mexico
Mongolia
Morocco X X X X
Mozambique
Myanmar
Namibia
Netherlands X X X X X X
New Zealand X X X X
Nicaragua
Niger X X X
N i g e r i a X XXX
N o r w a y XXXXX
Pakistan X X X
Panama
Papua New Guinea
Paraguay
Peru
Philippines
P o l a n d XXXXXX
P o r t u g a l XXXXXX
Qatar
Romania X X X
Rwanda XX
St. Kitts & Nevis
St. Lucia
St. Vincent & Gren.G/C/W/132
Page 46
CONTRACTING
PARTIESConvention on
Temporary
Admission1Customs Convention
on the ATA carnet
for the temporary
admission of goods2Customs Convention
concerning facilities
for the importation of
goods for display or
use at exhibitions,
fairs, meetings or
similar events3International
Convention to
facilitate the
importation of
commercial samples
and advertising
material4International
Convention on the
Harmonization of
Frontier Controls of
Goods5International
Convention on the
Simplification and
Harmonization of
Customs Procedures
(Kyoto Convention)
Senegal X X
Sierra Leone X
Singapore X X
Slovak Republic X X X X X
S l o v e n i a XXXXX
Solomon Islands
South Africa X X X X
S p a i n XXXXXX
Sri Lanka X X X X
Suriname
Swaziland
S w e d e n XXXXXX
S w i t z e r l a n dXXXXXX
Tanzania X
Thailand X X X
Togo
Trinidad & Tobago X X X
Tunisia X X
T u r k e y XXXX X
Uganda X X X
United Arab
Emirates
U n i t e d  K i n g d o m XXXXXX
United States X X X
Uruguay
Venezuela
Zambia X
Zimbabwe X XG/C/W/132
Page 47CONTRACTING
PARTIESConvention on
Temporary
Admission1Customs Convention
on the ATA carnet
for the temporary
admission of goods2Customs Convention
concerning facilities
for the importation of
goods for display or
use at exhibitions,
fairs, meetings or
similar events3International
Convention to
facilitate the
importation of
commercial samples
and advertising
material4International
Convention on the
Harmonization of
Frontier Controls of
Goods5International
Convention on the
Simplification and
Harmonization of
Customs Procedures
(Kyoto Convention)
OBSERVERS
Albania
Algeria X X X
Andorra
Armenia X
Azerbaijan
Belarus X X X
Bhutan
Cambodia
Cape Verde
China X X X
C r o a t i a XXXXX
Estonia X X
Ethiopia
F. Yugoslav Rep. of
MacedoniaX
Georgia
Holy See
Jordan
Kazakstan
Kyrgyz Republic
Laos, P.D.R. of
Latvia
Lithuania X X
Moldova
Nepal
Oman
Russian Federation X X XG/C/W/132
Page 48
CONTRACTING
PARTIESConvention on
Temporary
Admission1Customs Convention
on the ATA carnet
for the temporary
admission of goods2Customs Convention
concerning facilities
for the importation of
goods for display or
use at exhibitions,
fairs, meetings or
similar events3International
Convention to
facilitate the
importation of
commercial samples
and advertising
material4International
Convention on the
Harmonization of
Frontier Controls of
Goods5International
Convention on the
Simplification and
Harmonization of
Customs Procedures
(Kyoto Convention)
Saudi Arabia X
Seychelles
Sudan X X
Taipei, Chinese
Tonga
Ukraine
Uzbekistan X
Vanuatu
Vietnam X
__________
                                                     
1 The following non-WTO Members/Observers are also cont racting parties to this Convention:  Tajikistan.
2 The following non-WTO Members/Observers are also cont racting parties to this Convention:  Iran, Lebanon.
3 The following non-WTO Members/Observers are also contractin g parties to this Convention:  Iran, Kampuchea, Lebanon.
4 The following non-WTO Members/Observers are also contracting par ties to this Convention:  Bosnia & Herzegovina, Iran, Yugoslav ia.
5 The following non-WTO Members/Observers are also contracting pa rties to this Convention:  Bosnia &Herzegovina, Yugoslavia.