JOB/GC/142, JOB/CTG/9  
JOB/SERV/271, JOB/DEV/49  
 
19 October 2017  
(17-5673) Page: 1/3 
General Council  
Council for Trade in Goods  
Council for Trade in Services  
Committee on Trade and Development  Original: English  
 
E-COMMERCE ELEMENTS FO R MC11  
COMMUNICATION FROM C HINA 
The following communication, dated 18 October 2017, is being circulated at the request of the 
delegation of China.  
 
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WTO Members , based on the existing mandate, have conducted lively and valuable discussions on 
e-commerce under the auspices  of the General Council and its relevant subsidiary bodies since 
MC10. Members generally recognize  the importance of such discussions under the WTO 
framework, and acknowledge both the opportunities and challenges incurred from e -commerce for 
the trade growth and economic progress of Members  at different development stages.  
 
On the basis of these discussions, we believe a pragmatic way of the prepa rations leading up to 
MC11 is to identify the elements acceptable  to Members . These elements may be reflected in the 
MC11 Work Programme on Electronic Commerce as key building blocks in our work beyond for a 
high-priority discussion in the Dedicated Sessio n of the General Council or a body to be agreed 
upon by all Members . We believe that this will help the WTO maintain its relevance and  respond to  
the calls from the business communities . We therefore call upon Members  to take a constructive 
attitude and st rive to build consensus related to e -commerce at MC11 and beyond. Those specific 
elements  that may be positively considered  are as follows:  
 
1  ON THE MORATORIUM OF  CUSTOMS DUTIES ON EL ECTRONIC TRANSMISSIO NS 
1.1.  E-commerce has provided the WTO Members  with brand new ways of trade and 
unprecedented business opportunities, particularly for developing Members , the micro, small and 
medium -sized enterprises  (MSMEs ) and vulnerable groups. With a view to making full use of the 
convenience that e -commerce brings, and enabling inclusive development of trade, also  having in 
mind the  uncertainty of future technological development as well as its influence, Members  may 
decide to maintain the practice of not imposing  customs duties on electronic transmissions  until 
the next  session of the Ministerial Conference to be held in 2019 . 
2  FACILITATING CROSS -BORDER E -COMMERCE  
2.1.  Along with the rapid development of e -commerce globally, transaction parties located in 
different customs territories increasingly conclude transactions through  electronic means, and then 
complete payment, logistics and other business processes. E -commerce is now changing the way 
of trade in goods. In reality , free zones and  customs  warehouses  and other good practices 
facilitating cross -border e -commerce  have pla yed a key role in  promoting the development of 
industries . Members ' successful experience s in this regard may be summarized at MC11  for 
reference by other Members  to promote the latter 's development of e -commerce and better 
achieve the goals of inclusive g rowth  in accordance with their individual circumstances . 
2.2.  Based on the experiences of some WTO Members  like China, the facilitating role of free zones 
and customs warehouses as defined in the Specific Annex D of International Convention on the JOB/GC/142 • JOB/CTG/9 • JOB/SERV/271 • JOB/DEV/49  
 
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  Simplificatio n and Harmonization of Customs Procedures, or Kyoto Convention of the World 
Customs Organization (WCO) , may be explored in depth.  
2.3.  The facilitating role of free zones and customs warehouses is first and foremost reflected in 
that relevant goods are permitted to be stored, unpacked and grouped, collected for repacking, 
and repacked in  the free zones and customs warehouses at the import ing destinations; then go 
through the importing procedures including customs declaration, tariffs and internal tax payment 
in accordance with the electronically -placed transaction orders, and from free zones and customs 
warehouses,  eventually get transport ed and delivered to the buyer. Such free zones and customs 
warehouses may also locate in a third territory other than the importing or exporting one, to offer 
the same facilitation as mentioned above to relevant goods.  
2.4.  Such facilitation may also include pe rmitting relevant goods to be stored, unpacked and 
grouped, collected for repacking, and repacked in the free zones and customs warehouses at the 
exporting source, and complete in due course the exporting procedures including export 
declaration, export tax  rebate  and etc.; then in accordance with the electronically -placed 
transaction orders and upon completion of the importing procedures including customs clearance, 
tariffs and internal tax payment, get transported and delivered to the importing destination , and 
finally reach the buyer.  
2.5.  Bringing into play the role of free zones and customs warehouses in facilitating the operation 
of cross -border e -commerce  can not only save time for cross -border logistics and delivery to cut 
costs,  improve  e-commerce  custome r experience, and enhance the transaction efficiency of both 
sellers and buyers, but also make the job of regulatory authorities easier, by reducing the 
administrative costs and raising the administrative efficiency in the regulation of relevant goods.  
2.6.  It is worth  noting that making use  of free zones and customs warehouses to facilitat e the 
operation of cross -border e -commerce  is without prejudice  to the Members ' existing trade  policies, 
the regulatory framework and implementation , namely  policies of tariff s and related internal taxes, 
export tax refund, and licensing of various kinds in relation to import and export.  
2.7.  With regard to the facilitati ng functions of free zones and customs warehouses, Members  
may also share the status of  relevant domestic legisla tions or offer summary -type introductive 
materials, the content of which may include but not be limited to the definition and categories, 
establishment and closure, administration and regulation of free zones and customs warehouses, 
and authorized operatio ns as well as the period of storage therein and etc. 
2.8.  Members may discuss the capacity building of developing Members  in the context of policies 
of free zones and customs warehouses as well as their relationship with the development of e -
commerce.  
2.9.  Members may request the WTO Secretariat to assist  in understanding  and draw ing upon the 
relevant work of the WCO, and build a cooperative relationship with it if  necessary.  
2.10.   Members may explore more concrete issues relating to the facilitation of e -commerce based 
on the stipulation of the Kyoto Convention regarding free zones and customs warehouses, 
summarize and share more experiences with one another to better serve the objective of 
promoting inclusive trade and development through  e-commerce.  
3  PROMOTING PAPERLESS TRADING  
3.1.  The development of e -commerce  has further promoted paperless trading. With improved 
transaction efficiency, reduced transaction costs and saved resources as its greatest advantage, 
paperless trading represents the development trend of international trade under the new 
circumstances.  
3.2.  Members may endeavor to promote paperless trading  to the extent possible , and in 
particular, explore in the implementation of Trade Facilitation Agreement (TFA) effective ways and 
means to encourage  the development of e -commerce,  including the possibility of  accepting trade 
administration documents submitted electronically as with the same legal effect of their paper 
versions, and make trade administration documents available to the public in electronic form.  JOB/GC/142 • JOB/CTG/9 • JOB/SERV/271 • JOB/DEV/49  
 
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  4  ELECTRONIC SIGNATURE , ELECTRONIC AUTHENT ICATION AN D ELECTRONIC 
CONTRACTS  
4.1.  The recognition and standardization of electronic signature, electronic authentication and 
electronic contracts help promote the rapid development of  electronic transactions, and safeguard 
the security of electronic transactions.  
4.2.  Members may, building on the existing work of United Nations Commission on International 
Trade Law  (UNCITRAL ), maintain domestic legislation for electronic signature that would not deny 
the legal validity of a signature solely on the basis that the signature is in electronic form; permit  
parties of  an electronic transaction to mutually determine the appropriate electronic signature and 
authentication method, and permit electronic authentication agencies to have the opportunity to 
prove to the judicial or admin istrative authorities that their electronic authentication of an 
electronic transaction complies with legal requirements with respect to electronic authentication;  
confirm the legality of contracts concluded through electronic signatures from the legal 
perspective. If the parties enter into a contract in the form of letter or text in electronic data, a 
confirmation instrument may be required to be signed prior to the forming of a contract. The 
contract is formed at the time when the confirmation instrument is signed.  
4.3.  Members  may also exchange information on policies concerning electronic signature, 
electronic authentication and electronic contracts , and work towards the mutual recognition of 
digital certificates and electronic signatures;  and e ncourag e the use of digital certificates in the 
business sector.  
5  TRANSPARENCY  
5.1.  With a view t o better understand ing each other 's policies related to e -commerce and their 
changes, and promot ing the development of e -commerce as well as the realization of goals 
concern ing inclusive growth,  Members  may, on top of the existing transparency requirements in 
the WTO agreement,  endeavor to enhance the transparency regarding  e-commerce  policies , 
including  to publish, or otherwise promptly make publicly available , where publica tion is not 
practicable, laws and regulations  of general application which pertain to or affect the operation of 
E-commerce ; provide , to the extent possible, the original text of such laws and regulations as well 
as where they are published to the WTO Secr etariat;  respond , to the extent possible, to 
reasonable enquiries from other Members  regarding facilitating cross -border e -commerce through 
enquiry point(s) established and maintained under the Trade Facilitation Agreement  or other 
existing enquiry point(s ). 
6  DEVELOPMENT AND CO-OPERATION  
6.1.  The WTO work on e -commerce should reflect the concept of inclusive trade, and earnestly 
help MSMEs and vulnerable groups to better participate in and benefit from international trade and 
global value chains. Many Members ' experience s of e-commerce  development ha ve proven that e -
commerce is conducive to development and helps small farmers and MSMEs  in remote areas to 
integrate into the vast domestic and international markets.  The e -commerce work at the WTO 
should take into full account the actual situation of Members  at different stages of development, in 
particular the specific demands of developing and least developed Members , strive to solve the 
problems of development to th eir general concern, and enhance the ability of developing Members  
to benefit from e -commerce, and take  the principle of special and differential treatment as an 
integral part.  Considering the WTO's functions,  Members  may further explore specific consensus  
on development and cooperation. Members ' concrete opinions and recommendations are welcome, 
including the work that can be carried out under the Aid for Trade Program of the WTO.  
6.2.  Recommendations  and p ractical measures may be taken to improve the e -commerc e 
infrastructure, technical conditions and capacity building of developing members regarding cross -
border e -commerce . Cooperative activities like information exchange, joint study, promotion 
events and training may be conducted, including the sharing of ex perience in helping MSMEs, 
economically under -developed areas and vulnerable groups to participate in e -commerce.  
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