WT/L/156/Rev.4  
 
2 February  2023 
(23-0669) Page: 1/16 
Committee on Budget, Finance and Administration    
 
 FINANCIAL REGULATIONS OF THE WORLD TRADE ORGANIZATION  
Revision  
CONTENTS  
 
CHAPTER I. AUTHORITY AND APPLICABILITY ................................ ................................ .. 2 
CHAPTER II. PREPARATION OF THE BUDGET  ................................ ................................ ... 2 
CHAPTER III. ADOPTION OF THE BUDGET  ................................ ................................ ....... 3 
CHAPTER IV. CONTRIBUTIONS BY MEMBERS AND OBSERVERS  ................................ ........  3 
CHAPTER V. MISCELLANEOUS INCOME  ................................ ................................ ............  5 
CHAPTER VI. VOLUNTARY CONTRIBUTIONS, GIFTS OR DONATIONS  ...............................  5 
CHAPTER VII. USE OF THE FUNDS  ................................ ................................ ....................  5 
CHAPTER VIII. THE SURPLUS ACCOUNT  ................................ ................................ ...........  6 
CHAPTER IX. THE WORKING CAPITAL FUND  ................................ ................................ .... 7 
CHAPTER X. TREASURY MANAGEMENT  ................................ ................................ .............  8 
CHAPTER XI. FINANCIAL REPORTING  ................................ ................................ ..............  8 
CHAPTER XII. INTERNAL CONTROL  ................................ ................................ ..................  9 
CHAPTER XIII. EXTERNAL AUDIT  ................................ ................................ ...................  10 
ANNEX A  WTO EARLY PAYMENT ENCOURAGEMENT SCHEME  ................................ .........  12 
ANNEX B  ADMINISTRATIVE MEASURES FOR MEMBERS AND OBSERVERS IN 
ARREARS  ................................ ................................ ................................ ........................  13 
ANNEX C  WTO SECRETARIAT'S GUIDELINES FOR THE RECEIPT AND 
NOTIFICATION OF VOLUNTARY FUND CONTRIBUTIONS FROM MEMBERS AND 
OBSERVERS  ................................ ................................ ................................ ....................  15 
ANNEX D  VOLUNTARY CONTRIBUTIONS, GIFTS OR DONATIONS FROM NON -
GOVERNMENTAL DONORS  ................................ ................................ ..............................  16 
 WT/L/156/Rev.4  
 
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  CHAPTER I. AUTHORITY AND APPLICABILITY  
Regulation 1  
 
These Regulations shall govern the financial administration of the World Trade Organization 
(WTO).  
 
Regulation 2  
 
The Director -Genera l shall be responsible for the implementation of these Regulations. He  or she  
may delegate to other officers of the WTO such authority as he  or she  considers necessary for the 
effective implementation of these Regulations.  
 
Regulation 3  
 
Rules made by the Director -General in order to carry out the provisions of these Regulations shall 
be communicated to the General Council for approval.  
 
Regulation 4  
 
These Regulations shall not be amended except by the General Council acting upon the advice of 
the Committee on Budget, Finance and Administration (the Committee). The Committee shall 
review these regulations at least every five years.  
 
CHAPTER II. PREPARATION OF THE BUDGET  
Regulation 5  
 
The WTO biennium shall consist of two consecutive financial periods covering each year of the 
biennium. The financial period shall be from 1 January to 31 December.  
 
Regulation 6  
 
For each financial period, the Director -General shall prepare a budget proposal containing 
estimates of the income and expendi ture of the WTO, together with the comparable figures for the 
previous period.  
 
This budget proposal, as well as any revisions for the second year of the biennium as may be 
necessary, will be presented to the Committee at least eight weeks prior to the las t scheduled 
meeting of the year of the General Council.  
 
The budget proposal and any proposed revisions to the budget shall be presented in Swiss Francs 
(CHF).  
 
Regulation 7  
 
The budget proposal shall present the breakdown of expected expenditure by key ca tegories, such 
as those for staff, temporary assistance, general services, travel or capital expenditure.  
 
In addition, the budget proposal shall set out how the Secretariat intend s to deploy the budgeted 
resources to achieve the WTO’s objectives, showing,  for illustrative purposes, the breakdown of 
expected expenditure by key output areas such as dispute settlement or technical assistance.  
 
The contribution to the budget of the International Trade Centre (ITC) shall be included as one 
category in the WTO b udget proposal. The detailed ITC budget proposal as presented to the United 
Nations is presented as a separate document and is subject to a specific recommendation by the 
Committee.  
 
Expenditure specific to the functioning of the Appellate Body and its Sec retariat shall be identified 
and subject to a specific recommendation by the Committee.  
 WT/L/156/Rev.4  
 
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  The budget proposal shall show the maximum number of Full Time Equivalent (FTE) Posts in each 
year of the biennium, together with anticipated changes in the distributi on of the FTE Posts by 
grade and by division.  
 
The budget proposal shall be accompanied by such information , annexes and explanatory 
statements as may be requested by or on behalf of the General Council, and such further annexes 
or statements as the Direct or-General may deem necessary or useful.  
 
Regulation 8  
 
Supplementary budget proposals for the current financial period may be submitted by the 
Director -General on an exceptional basis.  
 
The Director -General shall prepare supplementary budget proposals in a form consistent with the 
approved budget. These proposals shall follow the same examination and approval process as for 
the annual budget proposals.  
 
Regulation 9  
 
The proposed budget expenditure shall be financed by income that consists of:  
 
a) Contributions from Members and Observers. A draft scale of contributions to be assessed 
shall be prepared in accordance with Regulation 12; and  
b) Miscellaneous income, with an explanation of the source of each item of miscellaneous 
income.  
These figures sh ould be accompanied by the comparable figures for the prior period.  
 
CHAPTER III. ADOPTION OF THE BUDGET  
Regulation 10  
 
The Committee shall examine the budget proposal and seek further explanations and amendments 
as it deems necessary. Once the Committee h as completed its examination, it shall prepare a 
report and a recommendation which shall be submitted to the General Council for adoption.  
 
Regulation 11  
 
The same procedures set out in Regulations 6, 7, 9 and 10 shall be applied to any revision for the 
second financial period of the biennium. The Director -General may submit a revised proposal for 
the second year of the biennium when there are exceptional and unexpected changes that could 
not have been foreseen at the time of the presentation of the budget proposal for the biennium.  
 
CHAPTER IV. CONTRIBUTIONS BY MEMBERS AND OBSERVERS  
Regulation 12  
 
The draft scale of contributions to be assessed to Members is established on the basis of each 
Member’s international trade (imports plus exports) in relation to the total international trade of all 
WTO Members.  
 
Calculations of assessed contributions for a given year shall be based on international trade 
statistics over a five  year period. E.g. the calculations of assessed contributions for 2015 shall be 
based on international trade statistics for the years 2008 to 2012; or if these statistics are not 
available, for the last five years for which statistics are available.  
 
The statistics used refer to trade in goods and commercial services, including int ellectual property 
rights payments, derived from the balance of payments statistics of the International Monetary 
Fund (IMF). Data are based on the IMF's methodology as defined in its 5th edition of the Balance 
of Payments Manual (BPM5) up to 2010 and as d efined in the 6th edition of the Balance of 
Payments Manual (BPM6) as of 2011.  WT/L/156/Rev.4  
 
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  Where IMF data deviate from IMF guidelines and include transactions not related to goods, 
services or intellectual property rights, adjustments provided to the WTO by the Centra l Bank or 
the National Statistical Office of a Member shall be taken into account by the Secretariat when 
adequately documented and justified.  
 
If IMF data are not available, the WTO Secretariat shall use estimates based on the best other 
available sources . 
 
A minimum contribution of 0.015 per cent of the total assessed contributions to all Members shall 
be applied to those Members whose share in the total international trade of all WTO Members is 
less than 0.015 percent.  
 
The same minimum contribution shal l also be assessed to Observers.  
 
The contributions shall be assessed and paid in CHF.  
 
Regulation 13  
 
After the General Council has adopted the budget and the scale of contributions, the 
Director -General shall promptly notify Members and Observers of thei r financial obligations by 
providing an invoice and a statement of account.  
 
Members and Observers have the obligation to promptly pay their contributions. Contributions 
shall be considered as due and payable in full upon receipt of the invoice or on 1 Jan uary of the 
financial period to which they relate, whichever is later. As of 1 January of the following calendar 
year the unpaid balance of such contributions shall be considered to be one year in arrears.  
 
With a view to encouraging Members to pay their c ontributions as early as possible in the year in 
which they fall due, the interest earned by investing the funds received by the Secretariat should 
be refunded to the Members pro rata, depending on the amount of their payments and on the date 
which they ar e made, as set out in Annex A.  
 
Regulation 14  
 
The Director -General shall take appropriate action with a view to ensuring that Members and 
Observers pay their contributions promptly. The Secretariat shall report regularly to the 
Committee on the state of p ayment of contributions. Members and Observers with arrears shall be 
subject to Administrative Measures as defined in Annex B.  
 
Regulation 15  
 
Observers may only accede to the WTO if their contributions as Observers have been fully paid. 
New Members shall be required to make a pro rata contribution for the year in which they become 
Members, after any relevant deduction of their assessment as Observer which shall also be 
calculated on a pro rata basis for that year. New Members shall also be required t o provide their 
proportion of the total advances to the Working Capital Fund; this advance shall be carried to the 
credit of the relevant Member. Payments made by a Member shall be credited first to the Working 
Capital Fund and then to the contributions du e. 
 
Regulation 16  
 
Any payment in respect of contributions made by a Member which has not paid in full its 
contribution for previous calendar years shall, unless the General Council decides otherwise, be 
credited against the earliest date of such arrears.  
 
Regulation 17  
 
A Provision for contributions in arrears shall be maintained . 
 WT/L/156/Rev.4  
 
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  CHAPTER V. MISCELLANEOUS INCOME  
Regulation 18  
 
Except in so far as the General Council may decide otherwise, all income other than 
(a) contributions payable by Members, (b) inte rest earned by investing contributions received by 
the Secretariat and not required immediately, and (c) income derived from investments of the 
Working Capital Fund shall be classed as miscellaneous income.  
 
CHAPTER VI. VOLUNTARY CONTRIBUTIONS, GIFTS OR DO NATIONS  
Regulation 19  
 
Voluntary contributions, gifts or donations from WTO Members and Observers may be accepted by 
the Director -General provided that the purposes for which the contributions are made are 
consistent with the policies, aims and activities of the WTO, and provided that the acceptance of 
such contributions which involve additional direct costs* to the regular budget of the WTO or 
financial liability for the Organization shall require  prior consent of the Committee , in line with the 
guidelines laid out in Annex C.  
 
Voluntary contributions, gifts or donations from Non -Governmental Donors are subject to the 
additional guidelines laid out in Annex D.  
 
Monies accepted for purposes specified by the donor shall be treated as trust funds. A s tandard 
overhead fee of up to 13% may be charged on direct expenditure incurred by trust funds to reflect 
supporting services provided by the Secretariat. The standard overhead rate can be reduced when 
implementing partners are being used and when defined in the agreement signed with the donor. 
The Programme Support Fund collects the overhead fees from all trust funds and pays expenditure 
incurred to support the trust fund 's activities. The Programme Support Fund also releases a fee 
representing 10% of its expenditure to the WTO Secretariat, that will record it as miscellaneous 
income.  
 
Monies accepted in respect of which no purpose is specified shall be treated as miscellaneous 
income and reported as "gifts" in the accounts of the financial period.  
 
Monies received by a staff Member as honorarium in his/her official capacity shall be remitted to 
the Organization and be credited to the WTO Staff Assistance Fund.  
 
Unless otherwise provided, such voluntary contributions, gifts or donations shall be admin istered in 
accordance with the present Financial Regulations.  
 
* Additional direct costs in this context include salaries, health insurance contributions, pension 
contributions and travel costs of staff members who work either fully or partially i.e. >20% of their 
normal hours  on matters related to a proposed new trust fund charged to the WTO regular budget. 
Additional direct costs are to be clearly identified in any trust fund proposal submitted in 
conjunction with an offer of a voluntary contribution for the purpose of establishing a new trust 
fund. It is the responsibility of the contributor to clearly and transparently identify the estimated 
additional direct costs involved in implementing the fund’s activities.  Trust fund implementation 
activities incl ude training, projects etc., aimed to achieve objectives of the trust fund. Indirect 
costs to the regular budget of the WTO arising from voluntary contributions shall be charged to the 
Programme Support Fund.  
 
CHAPTER VII. USE OF THE FUNDS  
Regulation 20  
 
The adoption of a budget by the General Council shall constitute an authorization to the 
Director -General to incur expenditure for the purposes for which the appropriations were adopted 
and up to the amounts so adopted.  
 WT/L/156/Rev.4  
 
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  Regulation 21  
 
At the end of the financial period the Director -General shall report on the transfers of credits 
between sections of the expenditure budget to the General Council for approval. For items so 
identified by the Committee at the time of budget finalization, transf er shall not be permitted.  
 
Regulation 22  
 
The Director -General may enter into commitments for future financial periods, provided that such 
commitments:  
 
a) are for normal ongoing activities that are more effectively procured using a multi -year 
approach; Wher e the total expected value of multi -year contracts with a supplier exceeds 
CHF 2 million, the Director -General shall notify, as part of the quarterly financial reporting, 
these contracts to the Committee, including details of the goods or services procured  and 
the likely amounts to be paid under the contracts; or  
b) are authorized by specific decisions of the General Council.  
CHAPTER VIII. THE SURPLUS ACCOUNT  
Regulation 23  
 
a) The budgetary result is defined as the sum of assessed contributions and projected 
miscellaneous income, less, the sum of actual expenditure and actual miscellaneous income.  
 
b) The actual expenditure does not take into account the variations in the actuarial provisions for 
the long -term liabilities associated with staff pensio ns and After Service Health Insurance if they 
have not been included in the approved budget.  
 
c) The annual budgetary result shall be reported in the WTO Financial Performance Report. If, at 
the end of a financial period, the budgetary result shows a posit ive balance, this amount shall be 
transferred to the Surplus Account. The Director -General shall make specific recommendations to 
the General Council, through the Committee, for the redistribution of the annual budgetary savings 
in any of the following way s1: 
 
i. Application as income against the budget for the next applicable financial period 
following that in which the budgetary savings occur, thereby reducing Members' 
contributions.  
ii. Transfer to the Working Capital Fund; or  
iii. Transfer to the Reserves.  
d) If a t the end of a financial period the budgetary result shows a deficit, this amount will be 
covered, to the extent possible, by transfer from the Working Capital Fund. Any part of the deficit 
left uncovered after transfer of funds from the Working Capital Fu nd shall be included in the 
budget for the next possible financial period.  
 
Regulation 23 Bis 
 
a) Assets are defined as r esources controlled by an entity as a result of past events and from 
which future economic benefits or service potential are expected to flow to the entity.  
 
b) Liabilities are defined as p resent obligations of the entity arising from past events, the 
settlement of which is expected to result in an outflow from the entity of resources embodying 
economic benefits or service poten tial. 
 
 
1 The General Council may, if circums tances so require, authorise other ways to redistribute the positive annual 
budgetary result.  WT/L/156/Rev.4  
 
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  Regulation 23 Ter  
 
The sum  of the budgetary result for the period and IPSAS adjustments, including the actuarial 
provisions for pension and After Service Health Insurance, determine the WTO year -end financial 
result. The financial result is for info rmation purposes only.  
 
CHAPTER IX. THE WORKING CAPITAL FUND  
Regulation 24  
 
The Working Capital Fund shall be constituted by:  
 
a) assessed advances made by Members. Such sums shall be carried to the credit of the 
Members which have paid them;  
b) any sums which the General Council may cause to be paid into it from time to time. Such 
sums shall be carried to the credit of the Organization.  
Regulation 25  
 
Any government acceding to the WTO shall make an advance to the Fund in accordance with the 
scale of contributions applicable to the budget for the year of its accession. The minimum advance 
to the Working Capital Fund amounts to 0.5 percent of the principal of the Fund for countries or 
separate customs territories whose share of the total trade of M embers is 0.5 percent or less.  
 
Regulation 26  
 
The Director -General is authorized to advance from the Working Capital Fund:  
 
a) such sums as may be necessary to finance budgetary appropriations pending receipt of 
contributions;  
b) in exceptional circumstances, subject to prior authorization of the General Council on the 
basis of a recommendation from the Committee, such sums as may b e necessary to finance 
commitments relating to extraordinary expenditure.  
Regulation 27  
 
a) Sums advanced under Financial Regulation 26(a) shall be reimbursed to the Working Capital 
Fund as soon as receipts from contributions are available for the purpose.  
 
b) The replenishment of sums advanced in accordance with Financial Regulation 26(b) will 
require a decision by the General Council, based on a recommendation of the Committee.  
 
Regulation 28  
 
The General Council may liberate all or part of the sums constitut ing the Working Capital Fund, 
and the sums so liberated in so far as they are derived from monies placed in the Fund under 
Regulation 2 4(a) shall be returned in CHF to the Members which have contributed to the Fund in 
proportion to their respective shares in the Fund.  
 
Regulation 29  
 
Subject to a decision of the General Council, countries or separate customs territories which for 
any reason cease to be Members of the WTO shall be entitled to the reimbursement of the total 
amount of their shares in the Worki ng Capital Fund under Financial Regulation 24(a) provided that 
they have honoured all liabilities attributable to them.  
 
Regulation 30  
 
Interest accrued on the Working Capital Fund shall be added to the Working Capital Fund and 
carried to the credit of the  Organization under Regulation 24(b) above.  
 WT/L/156/Rev.4  
 
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  CHAPTER X. TREASURY MANAGEMENT  
Regulation 31  
 
The Director -General shall establish clear and comprehensive financial rules related to treasury 
management activities engaged by the Secretariat. Funds retained by the Secretariat shall be 
securely kept or invested only with first class financial institutions.  
The Secretariat shall designate the banks in which the funds of the WTO shall be held. The 
Secretariat shall set criteria for the selection of banks, including  a minimum credit rating, and 
these criteria shall be included in the WTO’s Financial Rules.  
The Director -General shall not engage in any speculative activities such as on exchange or interest 
rates. Monies should only be held in CHF, with the exception of  where the Secretariat reasonably 
expects or has committed to making payments in other currencies in the near future.  
The investments of monies standing to the credit of any trust funds, reserve or special account 
shall be subject to any directives of the appropriate authority.  
 
The Director -General shall include in the financial statements submitted to the General Council a 
statement of the investments currently held.  
 
Income from investments shall be credited as provided in the rules or agreement relating to each 
fund or account.  
 
CHAPTER XI. FINANCIAL REPORTING  
Regulation 32  
 
The financial statements of the Organization shall be prepared in accordance with the International 
Public Sector Accounting Standards (IPSAS) applicable to the accounting pe riod concerned. Any 
divergence from the use of the specified standards shall be explained in the notes to the financial 
statements.  
 
Regulation 33  
 
Appropriate separate accounts shall be maintained in respect of all trust funds, reserves and 
special accoun ts. 
 
Regulation 34  
 
The accounts of the Organization shall be maintained and presented in CHF. Accounting records 
may, however, be recorded in both the transaction currency and in CHF.  
 
Regulation 35  
 
The Director -General shall submit the financial statem ents of the WTO to the External Auditor no 
later than the 31 March after the close of the financial period.  
 
Regulation 36  
 
The report of the External Auditor shall be transmitted to the Committee together with the audited 
financial statements in a timely manner, allowing sufficient time for the Committee to examine the 
report and the audited financial statements in advance of the regular meeting of the General 
Council in July. The Committee on Budget, Finance and Administration shall examine the financial 
statements and the audit report with a view to making a recommendation to the General Council 
to approve the financial statements.  
 WT/L/156/Rev.4  
 
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  Regulation 37  
 
The Director -General shall also provide to the Committee:  
 
a) Reports  on the financial position and performance of the Organization, for the first 6 months 
and year -end. The year -end report shall include information on the financial performance of 
the Organization by activity (for example, technical assistance or dispute settlement).  
b) Annual reports on hu man resources, with details on the evolution of the grade structure, 
salary adjustments, employee benefits, diversity of staff, internal mobility of staff, external 
recruitment activities and learning and development.  
CHAPTER XII. INTERNAL CONTROL  
Regulati on 38  
 
The Director -General shall:  
a) establish an effective system of risk management to identify and address internal and 
external risks to the Secretariat;  
 
b) establish detailed financial rules and procedures in order to ensure effective financial 
administra tion and the exercise of economy;  
 
c) cause all payments to be made on the basis of appropriate supporting documents and other 
documents which ensure that the services or goods have been received and that payments 
have not previously been made;  
 
d) designate the  officers who may receive monies, incur obligations and make payments on 
behalf of the WTO. All payments shall require a minimum of two signatories;  
 
e) maintain an internal control system which shall ascertain the accomplishment of established 
operational objectives; compliance with policies, procedures, rules and regulations; and 
safeguarding of assets. The internal control system shall also provide for an effective current 
examination and/or review of financial transactions in order to ensure:  
 
• the regularity of the receipt, custody and disposal of all funds and other financial resources of 
the WTO;  
• the conformity of obligations and expenditures with the appropriations or other financial 
provisions approved by the General Council, or with the p urposes and rules relating to trust 
funds and special accounts;  
• the economic use of the resources of the WTO;  
• the reliability and integrity of the information on which such use is based;  
f) maintain an internal oversight function, which shall be responsible f or providing independent 
and objective assessments of the adequacy and effectiveness of the Organization's internal 
control system, management practices, budgetary control and allegations of misconduct, in 
all its forms, at the WTO. For this purpose, the i nternal oversight function shall have 
unrestricted access to all functions, activities, operations, processes and information within 
the Organization.  
 
Regulation 39  
 
Commitments or obligations shall not be incurred and payments shall not be made unless an  
appropriate authorization has been made under the authority of the Director -General.  
 
Regulation 40  
 
The Director -General may, on an exceptional basis, make such ex -gratia payments as he or she 
deems to be necessary in the interests of the WTO. A statemen t of such payments shall be 
submitted with the final accounts.  WT/L/156/Rev.4  
 
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  Regulation 41  
 
The Director -General may, after full investigation, authorize the writing off of losses of cash, 
supplies, equipment and other assets, other than arrears of contributions. A stat ement of all such 
losses written off during the financial period shall be submitted to the External Auditor with the 
final accounts.  
 
Regulation 42  
 
The Director -General shall establish rules for the procurement function. The procurement function 
includes all actions necessary for the acquisition, by purchase or lease, of property, including 
products and real property, and of services, including works. The following general principles shall 
be given due consideration when exercising the procurement  function of the WTO:  
 
• Efficient and effective use of the Organization's resources;  
• Non-discriminatory, fair, open competition and equal opportunity for vendors;  
• Transparency;  
• Best value for the money in terms of quality and price; and  
• Accountability.  
Tenders for property and services shall be invited by a recognized method of solicitation, except 
where the Director -General deems that, in the interest of the WTO, a departure from this financial 
regulation is desirable. In such cases, a statement specifying the precise amount, the payee and 
the rationale for the departure from this financial regulation, shall be disclosed in the Financial 
Performance Report of the concerned year.  
 
CHAPTER XIII. EXTERNAL AUDIT  
Regulation 43  
 
The General Council shall appoint a n External Auditor to perform the audit of the financial 
statements of the WTO and of its Pension Plan in accordance with Regulation 44 for a six -year 
period non -renewable.  
 
The External Auditor shall be the Supreme Audit Institution of a Member of the WTO . 
 
The Committee shall organize an open invitation to bid, define selection criteria, examine offers 
received and make a recommendation to the General Council to approve the appointment of a new 
External Auditor before the end of the mandate of the current  External Auditor.  
 
The External Auditor shall not be removed during his tenure of office except by the General 
Council.  
 
Regulation 44  
 
The External Auditor shall be required to audit the WTO and the WTO’s Pension Plan financial 
statements in accordance w ith INTOSAI Auditing Standards and other generally accepted 
international standards such as the International Standards on Auditing issued by the International 
Federation of Accountants and express an opinion thereon. The External Auditor shall be required  
to conduct itself in conformity with the INTOSAI Code of Ethics and other generally accepted 
professional standards.  
 
The mandate of the External Auditor shall comprise regular and performance audits as defined by 
the INTOSAI Auditing  Standards.  
 
The External Auditor shall be completely independent and solely responsible for the conduct of any 
audit that it undertakes.  
 
The General Council may request the External Auditor to perform certain specific examinations and 
issue separ ate reports on the results.  WT/L/156/Rev.4  
 
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  Regulation 45  
 
The Director -General shall provide the External Auditor s with the facilities he  or she  may require in 
the performance of the audit.  
 
In the event of a disagreement between the Director -General and the External Aud itor on the 
facilities to be provided, the Director -General should seek guidance from the General Council.  
 
Regulation 46  
 
The External Auditor shall issue an annual report on the audit of the financial statements to the 
Committee in a timely manner, in ac cordance with Regulation 36. The External Auditor may also 
report to the Committee on financial issues, on performance audits and/or special reports on any 
issue deemed of significance by the External Auditor, or any issue raised by the General Council in 
accordance with Regulation 44.  WT/L/156/Rev.4  
 
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  ANNEX A 
 
WTO EARLY PAYMENT ENCOURAGEMENT SCHEME  
With a view to encouraging Members to pay their contributions as early as possible in the year in 
which they fall due, the interest earned by investing the funds received by the Secretariat should 
be refunded to the Members pro rata, depending on the amount of their payments and on the date 
which they are made. As a consequence, the miscellaneous income in the annual income budget 
estimates will no longer include t he item for interest earned on investments.  
 
As a general rule, the secretariat, upon receiving contributions, invests in short term deposits the 
funds which are not to be used immediately. Since the total interest received is a combination of 
three factor s: 
a) the amount of funds held in deposit;  
b) the duration of the deposits;  
c) the interest rate;  
 
The amount to be distributed can only be known with precision at the close of the budget year. 
Therefore, the crediting operation can physically take place only afte r the beginning of the new 
financial year, in other words, too late in principle for the amount credited to be deducted from the 
contributions assessed for the new financial year. Consequently only the contributions assessed for 
the second following year w ould be reduced by the amount of interest accrued. The scheme would 
work as follows:  
 
• YEAR A    interest is credited; at the end of the year the allocation of interest is 
determined;  
• YEAR A + 1    the contributions assessed for year A+2 are calculated when t he budget 
estimates are prepared; interest credit is taken into account and deducted from the 
contributions assessed for year A+2;  
• YEAR A + 2    payment of contribution assessed less interest credited.  
Bearing in mind that the date of payment and the amount paid are two important factors, one 
could consider that the determination of the amounts of interest to be distributed should be based 
on a formula under which these two factors would serve as a basis for the calculations of interest 
entitlements.  
 
Where a contribution was received during the year when it was due, a number of points to be 
credited to the account of the Member concerned would be calculated as follows;  
 
number of points  =  amount X number of days to run up to the end of the year (360 d ays) 
         10,000  
 
For example   assuming a Member paid CHF 200,000 on 17 March, the number of points crediting 
in its favor would result from the following formula:  
 
200,000 X 283  = 5,660  
            10,000      
 
Assuming further that the total number of points apportioned during the year amounted to 
350,000 and that the amount of interest to be distributed was CHF 150,000, the amount credited 
to the Member concerned would be:  
 
150,000 X 5,660  = CHF 2,426  
   350,000  
 
Should the Member have paid its cont ribution on 10 October (number of days to run up to the end 
of the year: 77) the amount credited would have been CHF 660.  WT/L/156/Rev.4  
 
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  ANNEX B 
 
ADMINISTRATIVE MEASURES FOR MEMBERS AND OBSERVERS IN ARREARS  
 
Category  Administrative Measures  
I After one but less than two full year's  assessed contributions remain 
outstanding at the end of the year:  
1. Representatives of Members will not be nominated to preside over WTO 
bodies  
2. Documentation will not be posted to delegations in Geneva nor to the 
Members' and Observers'  capitals.  
3. At the beginning of each year, the Director -General will notify the Ministers 
of the Members and Observers responsible for the WTO of the applicable 
administrative measures.  
4. The Director -General will contact annually the Minister of the Members' and 
Observers' responsible  
for the WTO, or any other official at the appropriate level emphasizing the 
question of arrears.  
5. The Secretariat will report annually to the Committee on Budget, Finance 
and Administration on the implementation of administrative measures.  
6. Members and Observers will be subject to specific reporting at the General 
Council meetings.2 
II After two but less than three full year's  assessed contributions remain 
outstanding at the end of the year, in addition to the measures of Category I:  
1. The access of the WTO Members' web site will be discontinued.3 
2. The ability of Members to act on the recommendations by the Committee on 
Budget, F inance and Administration to the General Council on financial 
matters will be removed.  
3. Observers will be denied access to training or technical assistance.  
The Chairs of the accession working group of Observers will remind the delegation of 
Observers, duri ng their working group meeting, of their financial obligations.  
III After three full year's  assessed contributions remain outstanding at the end of the 
year, in addition to the measures of Categories I and II:  
1. Members and Observers will be designated as Inactive Members and 
Inactive Observers, respectively.  
2. Inactive Members will be denied access  to training or technical assistance 
other than that necessary to meet their WTO Article XIV -2 obligations.  
3. The accession working groups do not meet either formally or informally. 
WTO will suspend its request for annual contributions from Inactive 
Observer s. Request for annual contributions will resume the year the 
Observers are not anymore designated as Inactive.4 
4. Inactive Members and Observers taking the floor in the General Council will 
be identified as such.  
 
 
2 See General Council procedures.  
3 Applicable to Members and Observers. Under current policy, Observers have a differentiated access to 
documents posted on the Members' Website.  
4 To be enforced starting 1 January 2013.  WT/L/156/Rev.4  
 
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GENERAL COUNCIL PROCEDURES FOR MEMBERS AND OBSERVERS  
SUBJECT TO ADMINISTRATIVE MEASURES  
 
At the beginning of each calendar year,  the Committee on Budget, Finance and 
Administration will notify to the General Council the list of Members and Observers under 
Administrative Measures, with a  recommendation that these Members and Observers be urged to 
liquidate their arrears.  
 
At the end of each meeting of the General Council , the Chairman of the Committee 
on Budget, Finance and Administration will provide information with regard to which Memb ers and 
Observers are under Administrative Measures. The Chairman of the General Council will request 
Members and Observers in Categories II and III to inform the Secretariat as to when the payment 
of arrears may be expected.  
 
Each year  the Director -Genera l will report on the results of his contacts with Members’ 
and Observers’ authorities on the issue of arrears.  
 
* * * * * * *  
 
 
SPECIAL PROVISIONS FOR THE SUSPENSION OF ADMINISTRATIVE MEASURES  
FOR INACTIVE MEMBERS AND OBSERVERS  
 
 
The General Council can suspend the application of Administrative Measures for Members 
in Category III which agree to, and abide by, a defined schedule of instalment  payments aimed at 
liquidating all arrears.5 
 
Those Members with pre -1988 arrears that wer e assessed at the minimum contribution 
may benefit from a reduction in those arrears to the level of the 1989 minimum contribution. For 
each full payment of an annual contribution between 1988 and 1994, any contracting party with 
pre-1988 arrears may cance l an equal number of assessments for 1987 and earlier years upon 
payment of the  1989 minimum contribution amounting to CHF  19,137. The difference between a 
pre-1988 assessment and the payment of CHF  19,137 would be funded by the Miscellaneous 
Income of the  WTO.6 
 
The General Council can suspend the application of Administrative Measures for Observers 
that are in Category III on 1 January 2013, which agree to, and abide by, a defined schedule of 
installment payments aimed at liquidating all arrears.  
 
 
5 Amend earlier decisions of the General Council  in 1988 ( C/M/226 ) and 1994 (C/M/273) to reflect the 
reduced number of categories.  
6 As approved by the General Council in 1994 (C/M/273).  WT/L/156/Rev.4  
 
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  ANNEX C  
 
WTO SECRETARIAT'S GUIDELINES FOR THE RECEIPT AND NOTIFICATION OF 
VOLUNTARY FUND CONTRIBUTIONS FROM MEMBERS AND OBSERVERS  
• In keeping with a commitment to streamline the procedures for the notification, approval, 
implementation and reporting on volu ntary fund contributions, the Director -General has authorised 
the following guidelines which are aimed at improving transparency and consistency in the 
handling of all voluntary funds. These procedures shall be applied in strict conformity with 
Financial R egulation 19.  
• In the case of formal pledges made for the future establishment of a trust f und or trust 
funds, these pledges will be notified to Members for transparency purposes. Once an actual fund is 
proposed in furtherance of the pledge, it will be noti fied as such, in accordance with the guidelines 
below.  
• All voluntary funds will be submitted to the Director -General for his /her consideration and 
may be accepted where he /she determines that "...the purposes for which the contributions are 
made are consis tent with the policies, aims and activities of the WTO".  
• In considering the proffered voluntary contribution, the Director -General will receive the 
Administration and General Services Division 's (AGSD) determination whether the contribution 
would involve additional direct costs to the regular budget of the WTO or financial liabilit ies for the 
Organization, as defined under Financial Regulation 19 . 
• When the Director -General assesses the proffered funding positively, and upon receipt of the 
AGSD 's assessment,  a notification will be transmitted to the Committee on Budget Finance and 
Administration (CBFA) for consideration  in the following manner:  
• Where the voluntary contributions/ fund involves no additional direct costs to the regular 
budget of the WTO or financial liabilit ies for the Organization, the CBFA will be notified  
by the Director -General  prior to the receipt of such voluntary contributions for 
transparency purposes.  
 
• Where the voluntary contributions/ fund involves additional direct costs to the regular 
budget of the WTO or financial liabilit ies for the Organization , the notification will be 
submitted  by the Director -General  for consideration and consent by the CBFA.  This will 
be done by including such notifications as an agenda item in the upcoming CBFA 
meeting and documents related to such agenda item shall be circulated in accordance 
with the agreed rules of procedure for distributing CBFA meeting documents.  
 
• The Director -General's notification  to the CBFA  of all trust funds arisin g under voluntary fund 
arrangements shall contain the following information and supporting documentation thereof:  
• The objectives of the trust fund;  
• The expected beneficiaries (if specified);  
• The implementation strategy;  
• The expected deliverables;  
• The amou nt of the funding dedicated to the trust fund;  
• The expected duration;  
• The implementation partners identified;  
• An estimate of the regular budget impact, including staff time and other resources, of 
implementation of the fund’s activities  
• The Secretariat fo cal points for the trust fund ; and  
• The Governing Body . WT/L/156/Rev.4  
 
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  ANNEX D 
 
VOLUNTARY CONTRIBUTIONS, GIFTS OR DONATIONS FROM  
NON-GOVERNMENTAL DONORS  
Given that voluntary contributions, gifts or donations (hereafter "donations") from 
non-governmental donors could be of benefit and since Members are committed to ensuring that 
no conflict of interest should arise through the acceptance of such donations, it is herein affirmed 
that the process with regard to such donations will be governed by the following guidelines.  
 
1. Donations proposed by private individuals and non -governmental, non -profit organizations or 
foundations (non -governmental donors) may be considered. These may include donations of 
goods or services "in kind"; however, secondment of staff from non -government al donors to the 
WTO is prohibited.  
2. Donations from non -governmental donors which are for -profit organizations or companies shall 
not be accepted.  
3. The activities, aims and motivations of the non -governmental donors mentioned under 1 above 
shall not be incom patible with the policies, aims and activities of the WTO and, as mentioned 
above, shall not give rise to a conflict of interest.  
4. While non -governmental donors shall be encouraged to make donations to the Doha 
Development Agenda Global Trust Fund at large, the donor may specify one or more activities 
associated with WTO programs as the purpose of the donation.  
5. All proposed donations from non -governmental donors shall be notified to the Committee on 
Budget, Finance and Administration which shall prompt ly consider the proposals. The 
Director -General shall accept a proposed donation only after the Committee has approved the 
proposed donation and its intended use(s). It is recognized that the Committee may wish to 
consider establishing a subsidiary working  group to make recommendations to it relative to 
proposed donations.  
6. The notification shall include full details regarding the activities, aims and motivations of the 
non-governmental donors mentioned under 1 above and the intended uses(s) of the donation.  
7. All accepted donations from non -governmental donors shall be placed in a trust fund and be 
disbursed in a manner that takes into account the broad objectives of the Committee on Trade 
and Development, the Memorandum of Understanding Establishing the Globa l Trust Fund and 
any additional modalities to be established for the purpose of disbursing the resources of the 
trust fund.  
8. Donations shall not entitle non -governmental donors to use of the WTO name or logo in any 
way. Full details relative to all accepted  donations from non -governmental donors and their 
uses shall be included in the Director -General’s Budgetary and Financial Report on 
extra-budgetary funds.  
9. Information with regard to accepted donations shall also be made available on the WTO Website 
in ord er to ensure transparency.  
 
__________