G/C/W/738  
 
19 June 2017  
(17-3276) Page: 1/2 
Council for Trade in Goods  Original: English  
 
 
TEMPORARY ADMISSION OF CONTAINERS, PALLE TS AND PACKING MATER IALS  
COMMUNICATION FROM A USTRALIA  
The following communication, dated 19  June 2017, is being circulated at the request of the 
Delegation of Australia.  
 
 
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1.1.  In other fora WTO  Members  have identified temporary admission for containers, pallets and 
packing materials as a positive measure for facilitating trade and reducing costs for business and 
consumers. Agreements to this effect at the mult ilateral level include the 1962  European 
Convention on Customs Treatment of Pallets used in International Transport, the 1972  Customs 
Convention on Containers, the 1990  Istanbul Convention on T emporary Admission and the 
2006 Revised Kyoto Convention. Plurilaterally, this i ssue was addressed in the T rans-Pacific 
Partnership, and is under discussion in Regional Comprehens ive Economic Partnership 
(RCEP)  negotiations. It has also been addressed in bilateral negotiations, such as the 
China -Australia Free Trade Agreement (ChAFTA).  
1.2.  We are in the midst of a cargo logistics revolution. Packed goods are travelling faster, more 
frequently and to a greater spread of destinations than ever before. We need modern rules 
attuned to this new reality. The economic benefits of getting logistics right are clear. For exam ple, 
estimates cite that the introduction of shipping containers increased bilateral trade 790 % between 
22 industrialized countries over 20  years, compared to an increase of 285 % over the same period 
attributable to GATT  membership. To illustrate the poten tial size of this issue, preliminary work 
suggests that the value of imports of containers, pallets and packing material s globally in 2015 
was over USD  65 billion, with an estimated average ap plied MFN  tariff of 10.5 %. Efficiencies 
gained in their facilita tion could be expected to result in a multiplied benefit for the global trading 
system. With global merchan dise trade in 2016 valued at US  $16 trillion the potential financial 
benefits are significant.  
1.3.  Current multilateral agreements are limited in members hip and strength of commitment . 
There are for example only 30  parties to the 1962  European Convention on Customs Treatment of 
Pallets used in International Transport and only 21  parties who have agreed without reservation to 
the relevant provisions of the 1990 Istanbul Convention on Temporary Admission. The Revised 
Kyoto Convention enjoys a broader 109  party membership, but consists only of recommendations, 
not commitments.  
1.4.  A notabl e limitation of the 1990  Istanbul Convention on Temporary Admission and the 
Revised Kyoto Convention is that they only provide temporary admis sion to containers that are 
one cubic metre or more in size. This narrow scope is  clearly out of step with today' s world of 
globaliz ed trade, where participation in regional and global suppl y chains is of significant and 
increasing importance, and where shipment of containers of all sizes around the world is 
commonplace.  
1.5.  Under the WTO  Agreement on Trade Facilitation (TFA), provision is made for the temporary 
admission of goods, but the TFA do es not specifically address containers, pallets and packing 
materials.  G/C/W/738  
 
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  1.6.  There is scope to do more in the WTO through a new initiative on temporary admission for 
containers, pallets and packing materials, which build on and complements the TFA. WTO  Members 
have the opportunity to provide significant cost and administrative savings for importers, exporters 
and ultimately consumers. Developing Members and MSMEs will benefit as barriers to the 
reusability of pallets, containers and packing are eliminated and acc ess to better technology makes 
the transportation of goods more cost effective and increasingly available to all. Of particular 
importance to agricultural dependent economies, reduced food waste and improved food security 
are notable benefits. This initiat ive promotes optimizing global supply chain efficiencies and 
making world trade more environmentally friendly and sustainable.  
1.7.  Australia is developing a formal proposal on this initiative with the aim of securing  an 
outcome at the Eleventh  WTO Ministerial Conference in Buenos Aires in December  2017, and 
would welcome further engagement with interested Members on this proposal.  
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