RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/TF/M/7 
16 September 2005 
 (05-4083) 
Negotiating Group on Trade Facilitation  
  
 
SUMMARY MINUTES OF THE MEETING 
 
Held in the Centre William Rappard
 
on 25-26 July 2005  
 
Chairman:  Mr. Muhamad Noor Yacob (Malaysia) 
  
1. The Chairman
 said that the main purpose of the meeting was two-fold:  (i) to provide 
delegations with an opportunity to  make contributions on the agenda  of the Negotiating Group (NG) – 
both in terms of offering new input a nd of reacting to the contributions previously received, and (ii) to 
continue the dialogue on technical assistance and ca pacity building (TA&CB) as an area everybody 
considered to merit special attention.  Furtherm ore, Members would be i nvited to admit relevant 
international organizations, including the IMF, OECD, UNCTAD, WCO and the World Bank, to attend the next meeting of the Group on an ad hoc basis.   
2. The agenda was adopted
.   
A. CONTRIBUTIONS ON THE AGREED AGENDA OF THE NEGOTIATING GROUP  
3. The representative of the Philippines, speaking on behalf of the Core Group , informed that 
with the recent accession of Nepal, the Group had grow n to a total of 20 members from developing 
and least-developed countries from Africa, Asia and Latin America.   
4. The Core Group agreed that the compilation of the proposals by the Secretariat circulated in 
TN/TF/W/43/Rev.1 could be a valuable working document for Members' work.   
5. Given the vast number of proposals on the tabl e, both Core Group (CG) and capital experts 
still needed a considerable amount of time to exam ine and – more importantly – to assess the merits 
of each of them.   
6. The Core Group appreciated the Chair's rep eated mentioning and encouragement that 
proposals would still be welcomed at any stage of the NGs work.  That was an important matter to 
keep in mind.   
7. The Core Group was grateful to the Secretariat for including in document TN/TF/W/43/Rev.1 
the additional information on the main GATT Articl es that the proposals attempted to cover and for 
the Secretariat note on Technical Assistance (TN/TF/W/54).  In assessing the proposals, it was 
important that Members remained faithful to thei r mandate that limited work to clarifying and 
improving relevant aspects of GATT Articles V, VIII and X.   
8. The Core Group also welcomed the new proposals and experience-sharing contributions by 
Members and wished to thank some of the prop onents who had provided written responses to written 
questions by members of the Core Group.  The Core Group believed that the written questions in 
JOB(05)/64 and 84 and the responses in JOB(05)/95, 102, 104, 111, 112 and 153  were also important TN/TF/M/7 
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 inputs to the progress of Members' work since they served to provide clarity to some concerns that 
members of the CG might have on those proposals.  As part of that cooperative effort, CG members 
would continue to circulate their questions in writin g.  In that connection, the Core Group wished to 
draw attention to the latest questions from I ndia and the Philippines in JOB(05)/159.  The CG 
remained very grateful to Me mbers for their written responses. 
9. As Members looked towards preparations for the Hong Kong Ministerial, the Core Group 
believed that the NGs work after the summer break should continue with its constructive examination 
of all the proposals submitted or to be submitted, establishing clearer linkages to the essential aspects 
of technical and financial assistance that would concretely embody special and differential treatment 
(SDT) and the developmental dimension of trade fa cilitation.  The Core Group also hoped that work 
would commence to arrive at a collective agreemen t/definition of what the objectives/goals should be 
for Hong Kong and beyond.  The Core Group hoped that the work Members would do after the 
summer break would contribute constructively to ensu ring a successful outcome for work at the Hong 
Kong Ministerial.   
10. The representative of Japan
 said that the document circulated in TN/TF/W/53 was an 
explanatory note on pre-arrival examination, which Japan, Mongolia, Peru and Chinese Taipei 
proposed in document in TN/TF/W/17 for clarifica tion and improvement of Article VIII.  It was a 
follow-up to the first explanatory note on risk ma nagement that Japan had submitted at the June 
meeting of the NG.  The note elaborated the pr e-arrival examination regime and introduced the 
experience of Japan in implementing that regime, fo r example, as regards customs procedures.  Japan 
believed that pre-arrival examina tion further expedited the releas e of cargoes through documentary 
examination prior to cargo arrival.  That was, of course, without prejudice to the right of the 
authorities to conduct further examination where nece ssary and to maintain appropriate border control 
with the use of a risk management concept.   
11. In general, importers were re quired to submit an import declaration to customs after cargoes 
arrived from foreign countries.  Therefore, in principle, importers were unable to begin import 
procedures prior to the arrival of cargoes.  To cope with such a situation in a flexible manner and to 
facilitate the legitimate flow of goods, a pre-a rrival examination regime was established.   
12. Pre-arrival examination allowed importers to su bmit a pre-arrival import declaration prior to 
the arrival of cargoes so that customs could conduc t documentary examinations in advance.  If the 
pursuance of legitimate policy objectives was not impe ded, customs would notify the importers before 
the arrival of cargoes whether further examina tion or inspection was required.  If no further 
examination or inspections were required, custom s would then issue an import permit immediately 
after the formal declaration was presented upon the arrival of the cargoes.   
13. The benefits of that regime had been wi dely recognized in relevant international 
organizations.  For example, the WCO Revised Kyoto Convention required customs to introduce a 
pre-arrival examination regime.   
14. In Japan, a pre-arrival examination regime had been introduced in 1991 to respond to the need 
of effectively coping with the increasing volume of tr ade with limited human and financial resources.  
That regime had become one of the major trade f acilitation measures in Japan while at the same time 
maintaining adequate border control.  In 2004, u sage rates of pre-arrival examination were 28% for 
sea cargoes and 54.8% for air cargoes.  Furthermore, the pre-arrival examination regime was being used in other trade procedures such as food sanitation,  which demonstrated the merits of using such a 
regime as an effective measure for trade facilitation and appropria te border control. 
15. Although the outline of the pre-arrival examination regime in Japan had already been 
explained in TN/TF/W/53, Japan wished to highlight the major characteristics of the regime.  First,  TN/TF/M/7 
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 although that regime could be used for all types of  imported cargo, types of cargo that benefit most 
from that regime were those requiring quick pr ocessing.  For example, fresh foods, cargoes under 
strict delivery and those with particular seasonal demand.  Second, importers  were required to submit 
pre-arrival declarations using the same form as fo r general import declarations together with the 
necessary supporting documents attached.  However, t hose attachments could be omitted if they were 
deemed unnecessary at the time of pre-arrival declaration.   
16. Third, customs would conduct a documentary ex amination after receipt of the pre-arrival 
declaration and would endeavour to complete the procedure by the scheduled date of the import 
declaration.   
17. Fourth, customs would notify whether further ex amination or physical inspection of the cargo 
was necessary to the importer if such notification di d not impede the legitimate policy objective.  It 
went without saying, however, that customs had the discretion to conduct a physical examination after 
that notification, should the need arise.  Lastly, im porters would inform customs of their intention to 
request a formal import declaration upon arriva l of cargoes with all deferred documents for 
submission, and customs would immediately prov ide an import permit as long as no further 
examination or inspection was required.  
18. The availability of a pre-arrival examinati on had greatly contributed to expediting the 
movement of goods while maintaining appropriate  border control, as shown in the annex of 
TN/TF/W/53.  According to the 7th time release survey conducted in 2004 by the Japanese Ministry of 
Finance, the average time required from port entry to  the release of goods in the case of cargo with the 
use of pre-arrival examination was 51.3 hours, whic h was 30% less than the time without the use of 
that regime.   
19. As for the implementation cost of a pre-a rrival examination, since the significance of 
introducing that regime was merely to change the timing of import declaration submissions, the 
regime could be implemented using existing f acilities and resources, and use of IT was not a 
precondition for that regime.  Therefore, it should not  incur substantial costs.   On the other hand, 
Japan believed that the benefits of introducing th e measure far outweighed the cost of introduction as 
shown in the usage rate of the regime and the time required for release of cargoes using that regime.   
20. While Japan believed that that regime could be  introduced with minimal cost burden, Japan 
shared the concerns expressed by developing-coun try Members in terms of their implementation 
capacity.  In recognition of such concerns, and of the merits that a pre-arrival examination regime 
could bring to expediting the movement of goo ds, Japan had been providing TA to developing-
country officials in the area of customs procedures, including that of pre-arrival examination, and was 
willing to continue providing technical assistan ce in the field of trade facilitation.   
21. The representative of Korea  introduced Korea's submission on its post-clearance audit system, 
recalling that Korea had already expressed the importa nce of such a system as one of the means to 
facilitate trade in its proposal TN/TF/W/18.  Korea now wished to elaborate on that issue in detail by 
submitting its experience paper on post-clearance a udit (TN/TF/W/55) with the hope that it would 
enable Members to further understand how that system  could be incorporated to facilitate trade.   
22. In Korea, a post-clearance audit system had fi rst been introduced in 1996 in order to cope 
with the rapid increase in the volume of imports and to expedite customs clearance procedures 
overall.  Unlike pre-clearance audit, post-clearance w as in essence meant to ch eck the accuracy of the 
amount of duties and taxes paid by the importers after the clearance of the imported goods.  Initially, a 
case-by-case audit system had been set up.  Over time, it was supplemented with other new types of 
systems called "Planned Audit" and "Comprehensive Audit".   TN/TF/M/7 
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 23. The three categories were the following:  (i ) Case-by-case audit.  The Korean Customs 
Service examined, on a case-by-case basis, the corr ectness of the payment of duties and taxes of 
selected import cases, which were electronically stated by the Korean Customs Services' risk 
management method.  It was mainly a paper-based audit;  (ii) Planned audit.  Korean Customs 
examined companies' import transaction patterns and items with a high risk of tax evasion.  It was 
either a paper-based audit or an on-the-location aud it;  (iii) Comprehensive audit.  This was initially a 
self-assessment audit system conducted by selected companies.  Import cases that customs officials had selected as audit subjects were self- examined by those companies.   
24. Nowadays, approximately 88% out of 4 million im port declarations submitted each year went 
through post-clearance audit.  As a result, there was not only a sharp decline in the time spent for 
customs clearance, but it also contributed to cost  savings for both businesses and the government.   
25. One of the most important purposes of introducing post-clearance audit in Korea was to 
accelerate customs clearance.  Based on Korean Custom s Services' experience, that audit system was 
one of the effective means to facilitate clearan ce procedure, which did not require significant 
investment in IT infrastructure, additional costs or additional manpower.   
26. The representative of Singapore
 introduced Singapore's contribution (TN/TF/W/58), saying 
that GATT Article VIII imposed certain obligatio ns on Members in relation to fees and charges 
imposed or in connection with im portation and exportation.  The Artic le also recognized  the need for 
minimizing the incidence and complexity and e xport formalities, and for decreasing and simplifying 
import and export documentation requirements (Article VIII:1(c)).   
27. Singapore's paper related to Article VIII:1(c).  It provided a factual account of Singapore's 
experience on the adoption of a Single Window sy stem based on an automated electronic data 
interchange (EDI) system know as the TradeNet®.  The paper showed how TradeNet® had reduced 
excessive formalities and documentation requireme nts, and how it had facilitated the customs 
procedures for the timely movement and clearance of goods.  The paper did not make any specific recommendation and was intended sole ly for Members' information. 
28. As part of the overall objective of simplifyi ng import and export form alities and requirements 
for traders, Singapore had instituted the TradeNet ® in 1989.  TradeNet® replaced the previous 
cumbersome paper-based procedures that traders had to  follow to process their customs documents.  It 
served as "the Single Window" for one-stop service clearance and release facilities through 
coordination among multiple agencies.   
29. The system was consistent with the general principles in the World Customs Organization 
International Convention on the Simplification and Harmonization of Customs Procedures 1999 
(Revised Kyoto Convention), by allowing for (i) modernizing customs procedures and practices and thus enhancing efficiency and effectiveness;  (ii) the application of customs procedures and practices 
in a predictable, consistent and transparent manner;  (iii) the implementation of  relevant international 
standards;  and (iv) the maximum practicable use of information technology, where it was cost-
effective and efficient for customs authorities and for traders.   
30. TradeNet® was first introduced on a trial basis with a group of 50 users.  Currently, there 
were over 2,400 traders, shipping agents, freight  forwarders, air cargo agents, etc., linked to 
TradeNet®.  All permitted applications for imports and exports were processed electronically through 
TradeNet®.  It processed about 20,000 applications  on a daily basis.  That translated to about 
8 million applications a year.  Information on Trad eNet® and other operational details could be found 
in the paper.  More information on the Tr adeNet® could be obtained from the website 
www.tradenet.com.sg.    TN/TF/M/7 
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 31. Benefits that had arisen from the TradeNet®, in cluded:  (i) an improved level of service to the 
trading community, and improved human resources mana gement for both traders and agencies.  In the 
paper-based environment, documents had to be physi cally delivered and collected.  That could only 
be done during office hours.  Using TradeNet®, documents could be transmitted and the approved 
permits received electronically, 24 hours a day.  Fu rthermore, while previously it took between 2 and 
7 days to obtain approval, now an application could be approved on aver age within 10 minutes;  (ii) in 
addition to the elimination of voluminous paperw ork – there had been an automatic electronic 
deduction of duties and taxes, which had resulted in an overall reduction in business costs for traders;  
and (iii) other benefits included more efficient cu stoms control, which enhanced risk management 
(see e.g., TN/TF/W/47 from Singapore on risk management);  uniform enforcement of customs 
legislation;  and faster production of trade statistics.   
32. In short, the institution of TradeNet® had resulte d in a substantial and notable increase in the 
administrative and operational capacity, transparency and predictability of the operations of customs 
and other agencies, without compromising the key objectives of trade facilitation on the one hand and 
sufficient controls on the other.   
33. While outlining Singapore's national experien ce in implementing a Single Window system 
via TradeNet®, Singapore recognized that LDCs  and some developing countries might have 
difficulties implementing an EDI-based Single Window  system such as TradeNet®.  TradeNet® was 
one model of a Single Window system, and one of the tools which could be used to achieve the 
objectives of Article VIII.  In sharing its e xperience, Singapore hoped to encourage discussion on 
possible approaches to Single Window systems as well as alternative mean s of achieving the same 
gains.  Special and differential treatment (SDT) that took into account the different capacities of 
Members should, where necessary, be an integral part of any commitment in the area of Single 
Window systems.  For example, Members might wi sh to discuss longer implementation time-frames 
for developing and least-developed countries, and other phased-in approaches.  TA&CB measures 
would also be an important aspect of the implementation of a Single Window system.   
34. The representative of Switzerland  said that Switzerland appreciated the updated Secretariat 
compilation which would become an increasingly central document in Members' discussions after the summer break.   
35. The experience papers by Japan, Korea and Singa pore were useful.  It was a good idea to 
have a written exchange of information on those e xperiences which would enable Members' experts in 
capitals to follow the debate on those areas.  Switz erland wished to put forward a proposal regarding 
the effective integration of exchanges of experiences  into the NG's general discussion.  Starting with 
the Secretariat compendium as a thread in the discussions, it could be useful to have national experiences accompany a more in-depth discussion of the subject.  It was important to have certain 
exchanges of views to come to an understandi ng while anchoring the discussions in reality.   
36. As for Japan's paper on pre-arrival examinati ons, Switzerland had a similar system.  Like 
Japan, Switzerland had also had a very positive expe rience using that type of procedure.  If 
Switzerland understood well paragraphs  5 and 6 of the paper, the pro cedure described by Japan was a 
two-stage one.  First, there was a pre-arrival declara tion, and a formal customs declaration at the time 
that the goods physically arrived.  In Switzerland, th e procedure was even simple r.  With a pre-arrival 
statement, and when verification of the actual goods was not required, there was no need for a second 
presentation of a customs declaration.   
37. Switzerland also wished to raise a point about paragraph 7 saying that Japanese customs 
administration, during implementation, took account  of 3.25 of the General Annex of the Revised 
Kyoto Convention.  For a number of years, Switzerland had been using those procedures in TN/TF/M/7 
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 Switzerland, and given the good experiences that it had gained with its application, Switzerland could 
only support and recommend such procedure.   
38. As for Singapore's paper, Singapore had implem ented something that many Members could 
only dream about.  What was interesting in that c ontribution was that paragraph 8 illustrated well that 
one could gradually introduce a Single Window and th at it did not necessarily need to cover all the 
procedures at the outset.  Switzerland had been work ing for some time to accomplish that objective 
which it hoped to have achieved by mid-2006.  A ll of the existing clearance forms were gradually 
replaced by a single automated clearance system.  Switzerland sought additional information from Singapore as to how they had incorporated other agencies into their Single Windows, such as the 
veterinary services.   
39. Switzerland also appreciated Korea's paper.  Switzerland had had positive experiences with 
the post-clearance audit systems.   
40. The representative of Chinese Taipei
 said that the national experiences shared by Japan, 
Korea and Singapore were very useful and helpful to understand customs measures.  Chinese Taipei's 
own customs authority had been implementing pr e-arrival regimes since 1997 and a post-clearance 
audit regime since 2000.  The re gulations and procedures had had to be modified as and when 
necessary within Chinese Taipei's cu stoms system.  Chinese Taipei's experience had shown that the 
implementation of best measures in the customs syst em could significantly improve the efficiency of 
customs clearance.   
41. To help Members better understand customs regi mes, it would be appreciated if answers 
could be provided to the following questions:  (1) how long did it take for the customs authority to 
notify the importer to contact the audit for impor ted goods;  (2) how much time was granted for  
implementing the post-clearance audit;  and (3) was the post-clearance system also applied to export 
declaration?   
42. Japan's submission, on page 2, paragraph 8, me ntioned that the usage rates of pre-arrival 
examination in Japan were 28% and 54.8% for sea cargoes and air cargoes.  Chinese Taipei wondered 
why the rate for sea cargo was lower than the one for air cargo.   
43. The representative of Peru  said that while Singapore's experience seemed extremely 
interesting.  It was an elaborate system for some  countries.  However, in Peru, the Single Window 
system was being developed as well as a system of tele-clearance via the Internet.  The procedures had been systematized based on Internet registration.   
44. Japan's document was very didactic and presente d a very important national experience.  It 
helped Members understand in practical terms the pr e-arrival system.  Peru wished to express its 
support for that system as an important TF m easure, which both the deve loped and developing 
countries could use.  As Japan had pointed out, it did not necessarily require the incorporation of new 
IT equipment, even though it was in fact desirable so  as to obtain the full benefits of the system for 
the examination of goods prior to their arrival.   
45. In Peru, as a general rule, legislation prescr ibed that a goods declaration would only be 
accepted for processing if the goods were on customs territory.  An exception would, however, be 
made in the case of goods subject to the "Adva nce System for Customs Clearance and Urgent 
Clearances".  The Advance System for Customs Clearance allowed the work of processing the 
declaration to begin prior to the arrival of the goods  on the customs territory.  Natural or legal persons 
who availed themselves of the system had the right to  transport the goods directly to their warehouses.  
Following the arrival of the goods, the declaration must  be regularized with the customs authorities.   TN/TF/M/7 
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 To avail themselves of the Advanced System for Cu stoms Clearance, the beneficiaries must fulfil 
certain requirements. 
46. The clearance of urgent shipments enabled th e work of processing the declaration to begin 
prior to the arrival of the goods on the customs terri tory provided that the goods in question were by 
their very nature aid or emergency shipments.  However, on the arrival of the goods the declaration 
must be regularized in the same way with the customs authorities.   
47. The representative of Sri Lanka  said that the national experience papers were useful.  
Sri Lanka wished to share its experience on the su bject of pre-arrival examination in response to 
Japan's proposal, since there we re similarities.  He was able to make  that input due to the fact that he 
had received real-time input from his capital from a gr oup established as a direct result of a workshop 
held in Colombo the previous month in collaboration with the World Bank.    
48. Sri Lanka Customs had successfully introduced th e examination of pre-arrival declarations 
submitted manually to expedite the express cargo co nsignments released through a clearance centre 
operated by a leading courier company.  The company had provided the necessary infrastructure 
facility, including X-ray machines, for screening of parcels being cleared without physical 
examinations and Customs held a cash deposit of th e company as a security guarantee.  The procedure 
adopted for clearance of express cargo at that centre  was similar in several aspects to Japan's proposal 
in TN/TF/W/53.   
49. Under the existing procedure, a company subm itted an Import Declaration together with a 
copy of the Cargo Manifest and copy of the Air Wa y Bill to the Customs prior to arrival of cargo.  
The time of declaration would depend on the recei pt of on-line information by the company from the 
principals.   
50. The customs staff examined the documents on a risk analysis basis and selected parcels for 
physical examination.  When the goods arrived at the clearance centre in customs' bonded carriers, the 
company staff, under the supervision of customs, sort ed out the parcels which needed to be examined 
and released without examination.  Once the cust oms declaration was warranted for payment after 
selectivity for examination, the data would be cap tured electronically and on-line payment would be 
made.  The customs staff randomly screened the pa rcel selected for releasing without examination 
through the X-ray machine and permitted clearance.   The documents were also subject to post 
auditing.   
51. With the implementation of pre-arrival docum entary examination, approximately 85% of 
parcels which required urgent clearance could be re leased within one-and-half hours from the time of 
arrival of consignments.   
52. The expectation had been to ad opt the system for the regime of general cargo of several 
categories.  The main constraint Sri Lanka experi enced was to bring about a pre-arrival examination 
system, since the majority of shipping agents were  not in a position to forward cargo manifests to the 
Customs in advance.  It was nec essary to get that requirement fulf illed through the shipping agent to 
effectively adapt the system.   
53. In that context, Sri Lanka sought  clarification from the Japanese delegation as to at what stage 
the delivery order was submitted to the customs an d what clearance documents were warranted to 
accept payments under that procedure.   
54. Under the existing regulations in Sri Lanka, the tariff and rate of exch ange were applicable 
for assessment of fiscal levies as at the date of subm ission of declaration to the Customs.  Therefore, a TN/TF/M/7 
Page 8  
 
 time period had to be determined for pre-arriva l declaration in order to refrain from revenue 
implication issues.   
55. In principle, Sri Lanka agreed to extend the pre-arrival documentary examination facility for 
general cargo, too, except for specified cate gories of goods with the necessary assistance from 
relevant organizations or supporti ng countries to put the system into practice effectively.   
56. The representative of Panama
 said that Panama had in place a Single Window system which 
had been functioning for more than 15 years.  Panama wished to put several questions to Singapore relating to how one could analyze and strengthe n the Single Window system;  in particular, as 
follows:  (1) Was Singapore's system centralized or  regional and divided into different geographical 
regions?;  (2) Did Singapore require support from a specialized international body with regard to 
customs procedures?;  and (3) how much time had Singapore needed to set up the TradeNet® and had 
it been set up in stages?   
57. The representative of Egypt
 raised a question regarding Korea's paper (TN/TF/W/55) on post-
clearance audit.  Paragraph 12 of the paper i ndicated that from 2001 to 2004, additional revenues 
related to detection of tax evasions increas ed almost five times from US$100 million to 
US$480 million.  Egypt wished to have an explanati on for that increase.  Was it related to a more 
efficient or a different way of implementing post-audit clearance?   
58. The representative of th e European Communities  said that the revised compilation document 
could, indeed, be a valuable working document on which to base the NG's preparations for its report 
for the Hong Kong Ministerial.  The European Co mmunities hoped that it would be kept up to date 
and that, in the autumn, one could find a way to review  it and even make it shorter rather than longer.   
59. With respect to the submissions from Japan, Ko rea and Singapore, the EC considered it useful 
to also circulate, in addition to specific proposal s on TF commitments, those kinds of explanatory 
papers which explained how, in practice, certain trade facilitation measures operated, their benefits, 
their cost, and other implications.  That would help to improve Members' understanding about the 
nature of those provisions.   
60. The European Communities certainly agreed with  Korea that auditing systems for payments 
of customs duties were a very efficient means of facilitation both for traders and governments.  
Auditing systems were a very efficient way of doing  calculations, more efficient than doing it on an 
individual consignment basis, and also a very good means to reward compliant  traders with a faster 
system for goods release.  The EC shared the question that Egypt put to Korea.  The EC would also 
like to know exactly what accounted for the very la rge increase in revenue collection in the period 
referred to by Korea.  Furthermore, the EC wondered what that represented as a percentage of Korea's 
total revenue collection.   
61. As for the Japanese paper on pre-arrival pro cessing, the European Communities thought that 
pre-arrival processing was one of the most signifi cant TF measures that could be introduced.  A 
number of delegations, including Chinese Taipei, Pe ru, Mongolia, Korea, the European Communities, 
Turkey, and others, had already made proposals on that matter.  The EC saw that as a measure of 
transparency and predictability, comparable to advance ruling systems, but  also as a measure of 
facilitation.  For the EC, the real benefit of pre- arrival processing was that it reduced the time taken 
for goods to be released from customs control sin ce, instead of carrying out all the documentary 
examination processing upon the arrival of the goods, th e examination could be carried out while the 
cargo was on route, or even before shipment.  The European Communities believed that it was 
particularly useful for consignments which were time-sensitive, such as foodstuffs, or just-in-time 
express shipments.  The European Communities noted that, as demonstrated by Japan in its paper, 
pre-arrival processing was as useful for small co mpanies as it was for large companies and was a  TN/TF/M/7 
 Page 9 
 
 
 measure that could be introduced with or with out automated procedures.  That observation was 
important as it should allay concerns of some count ries that that form of facilitation technique was 
only possible on the basis of automation, which was obviously not the case.  Some Members had 
expressed concerns about possible cost implications , or the burden of those methods.  But, as Sri 
Lanka had mentioned, pre-arrival processing was alread y in existence in a wide range of countries.   
62. In that context, the EC wished to draw the NG's attention to an interesting report by the 
Global Express Association, a federation of the expr ess carriers, which had surveyed the extent to 
which pre-arrival processing of the kind described by Japan was actually in operation around the world.  The report showed that there was a very large number of countries already using it, including, 
for example, Bangladesh, China, India, Indonesia, Jamaica, Malaysia, Mauritius, Nigeria, Sri Lanka, 
and Uganda, which demonstrated that there was no particular difficulty from a development point of 
view for Members to introduce pre-arrival proces sing.  The report suggested that there was no 
correlation between using that facilitation method and levels of development, or size of economy or 
geographical region, or any other parameter.   
63. As for Singapore's paper on its TradeNet® system, a number of Members had already 
proposed the introduction of such a system, a Single Window for the submission of documentation 
needed for import and export.  Obviously, that " one-stop shop" idea was a major facilitation measure 
because it saved traders from having to separately subm it documents or data to a number of different 
agencies.  Not every delegation was as organized or sophisticated as Singapore, and some Members 
had expressed concerns about how easy it would be for all of them to introduce that kind of "one-stop 
shop" system.  But, as Singapore had suggested, it could be introduced on a progressive basis and 
progressively applied to different forms of custom s operation.  The fact that the Single Window 
system could be applied progressively to cover a la rger proportion of customs operations was, in part, 
an answer to the questions raised by delegations ab out the ease or difficulty of introducing that type of 
system.   
64. The representative of Jamaica
 said that the revised Secretariat compilation would be useful in 
developing a sort of inventory of proposed measures, making it easier to cross-reference what was 
being done in Member states to allow for a better value added in the negotiations.   
65. Jamaica wished to make a few comments on the submission by Japan.  For the most part, the 
nature and scope of Japan's formalities for pre-arri val examination was consistent with those carried 
out in Jamaica.  In paragraph 4, it was noted that  customs might conduct documentary and/or physical 
inspections of the declared cargo, if necessary.  Fr om Jamaica's point of view, physical examinations 
would always be a requirement of the customs depa rtment in order to facilitate effective controls 
while at the same time facilitating trade.  Howe ver, in the case of "authorized traders" on the 
programme called selective import and importation system  (SIIS), that requirement might be waived.   
66. On paragraph 13, Jamaica wished to note that Jamaican customs required a submission at 
least ten days prior to arrival of the consignment.  It was noted in paragraph 15 that, for Japan, 
importers were notified about the necessity for phys ical inspection prior to the scheduled date.  In 
Jamaica's case, traders were not advised beforeha nd of customs intentions to waive the physical 
examination requirement.  In paragraph 16 on the import declaration, once the entry had been 
accepted and passed by customs, there was no further requirement by the invoice branch of the customs department for the submission of docume nts.  Like Japan, Jamaica saw it as important for 
trade facilitation for the facility of pre-arrival exam ination to be available to those importers who 
needed their cargo right away, in which case the fac ility provided a so-called just-in-time effect.   
67. The representative of Singapore
 replied to questions raised about  Singapore's paper.  First, it 
should be noted that, as highlighted in the introducti on to the paper, the document was an experience 
paper.  The paper recognized the difficulties that LDCs and some developing countries might have in TN/TF/M/7 
Page 10  
 
 implementing a system like TradeNet®.  Singapore had also emphasized that TradeNet® was just one 
tool for achieving the objectives of a Single Window system.   
68. As for the question raised by Switzerland, Tr adeNet® was linked up with all the relevant 
agencies dealing with importation and expor tation of goods, including SPS measures.  The 
TradeNet® system had facilitated trade.  However,  it had not prejudiced customs control.  On the 
contrary, it had enhanced efficient customs control.   As highlighted in Singapore's previous paper 
(TN/TF/W/47) Singapore employed risk-management techniques at the border to concentrate on high 
risk goods.   
69. With respect to the question raised by Pana ma as to whether the system was centralized, 
Singapore wished to recall that Singapore was rather  a small country.  Therefore, it was a centralized 
system.  The question as to whether support was rece ived from other agencies would be answered in 
due course.  As for the question about how long it had taken to set up the system, Singapore wished to 
inform that a multi-agency comm ittee had been set up in December  1986.  After some internal 
coordination and discussion, the system was institute d in January 1989.  Basically, it had taken about 
two years to institute Trade Net.  However, Trade Net itself had been implemented in stages.  First, 
the system only processed applications for items that were not controlled or th at were not subject to 
duty.  Later, it extended to control items such as food and medicine.  It was an evolving system and 
had been implemented in stages.   
70. The representative of Korea
 welcomed Japan's experience paper on their pre-arrival 
examination system which well illustrated how pre- arrival examination could work to facilitate 
clearance procedures.   
71. Korea had had a similar system in place since 1995.  As had been well described by Japan, 
that system did not necessarily carry an overly add itional burden in order to be introduced in one's 
customs clearance system.   
72. In Korea, the pre-arrival examination system was mostly used in importation by air that 
required expeditious clearance or importation from close distances, for inst ance, China or Japan.  
Perhaps the only significant difference between Japan and Korea in terms of a pre-arrival examination 
system was that, unlike Japan, where customs woul d issue an import permit immediately after the 
formal import declaration was presented upon arrival of the cargoes, in Korea, once pre-arrival import 
declaration documents were examined by customs and provided that they met Korea's pre-arrival 
examination standard, the "import acceptance permit" was immediately issued "even prior to" the arrival of the cargoes for further expediting importation procedures.   
73. Korea believed that the pre-arrival examination system, along with other useful systems 
introduced through many proposals by Members, was one of the useful studying tools which could be considered and adopted as Trade Facilitation rules to elevate one's customs clearance process.   
74. With respect to Singapore's paper, Korea shar ed the view on the usefulness of a Single 
Window.  Korea was also considering the implem entation of a Single Window through its domestic 
authorities.  It was not fully implemented yet.  Singapore's paper encouraged Korea to expedite 
domestic procedures in that regard.   
75. With respect to the questions on Korea's paper by Chinese Taipei, Korea wished to reply that 
there was no legal duration of the reporting on the imported goods.  But Korea was expecting the 
importers to report within a reasonable period of  time on their imports.  Then, Korea's customs 
authorities examined those import cases within a certa in period of time.  For example, the planned 
audit normally took 10 days, while the comprehensiv e audit system required almost twice as much 
time, about 20 days.  Theoretically, the maximum period in which to conduct the examination was  TN/TF/M/7 
 Page 11 
 
 
 2 years.  However, if more than 2 years had passed, there was no obligation for the importers to report 
with the Korean Air Customs authorities having no right to request any examination on that importation.   
76. Regarding the third question on whether the system was also applied to the exporter 
declaration, Korea wished to info rm that its customs authorities had no right to contact the exporters 
directly.  If Korea's authorities sought any additio nal information on an importation, they would 
request it through the importers.  Therefore, the audit system did not directly apply to export declarations.   
77. With respect to the questions from Egypt and the EC on the reasons for the rapid increase in 
revenue from 2001 to 2004  when introducing the audit system, Ko rea wished to inform that it had  
introduced the system in 1996, with the planned audit and the comprehensive audit having been 
supplemented as of 2001.  By introducing the pl anned audit and comprehensive audit, Korea had 
enforced its audit system through those means and, as  a result, detected a rapid increase in violations.  
Korea did not aim for introducing the audit system  for the prevention of tax evasion but for the 
facilitation of trade.  Therefore, if over time, the self-assessment of the aud it system was applied to 
more and more importations, e xperience showed the number of tax evasions by companies to 
decrease.  As for the EC's question on the ratio of  the tax collection to the total tax revenue, Korea 
wished to inform that it amounted only to a very small fraction of one or two per cent.   
78. The representative of Japan
 said that the national experience papers by Korea and Singapore 
were very useful.  Japan had adopted similar sy stems with respect to post-audit and Single Window 
systems, and much could be learnt from those experiences.   
79. With respect to the comments received on Jap an's proposal, Japan was encouraged by the 
feedback from developing countries which adopted sim ilar systems, especially for air cargo.  It was 
encouraging to hear that Japan's experience was sh ared even by developing countries with respect to 
the usefulness of pre-arrival declaration and examination.   
80. As regards the question by Chinese Taipei about  the usage rate of sea cargo and air cargo 
regarding the pre-arrival examination, Japan wished to inform that the importers of air cargoes were 
very sensitive to the quick release and delivery of goods.  In the case of air cargo, the cargo was  
directly brought to Japan from the countries of or igin.  Traders and importers might obtain necessary 
information or documentation to submit pre-arrival declar ations before arrival.  But in the case of sea 
cargo, importers and traders were not sensitive to the quick delivery.  Also, they might change 
destination or content of the vessels.  Therefore, th ey could have some difficulties in preparing for the 
submission of all information and documents n eeded for the pre-examination and pre-arrival 
declaration.  That might be the reason for the usag e rate being substantively lower in the case of sea 
cargo compared to that of air cargo.   
81. The representative of the United States  briefly introduced the proposal jointly submitted by 
India and the United States (TN/TF/W/57).  The paper set forth their joint proposal under the Trade 
Facilitation negotiating mandate to "aim at provisi ons for effective cooperation between customs or 
any other appropriate authorities on trade facilitation and customs compliance issues".   
82. The challenges faced today by officials respons ible for border regimes as well as by traders 
themselves operating in a global just-in-time econom y brought about a true complementarity.  The 
needs of facilitation actually demanded a broad arra y of tools "away from the border" for authorities 
to ensure compliance with applicable laws and regulations.  Members had seen some of those 
articulated in proposals for new commitments re flecting improvement and clarification of GATT 
Article V, VIII and X.   TN/TF/M/7 
Page 12  
 
 83. The sponsors of the paper believed that there could be substantial benefits from achieving a 
mechanism that was practi cal, effective, and forward-looking, so that the mechanism would also work 
to promote cooperation and commonality of informa tion requirements.  In that regard, the proposal 
put forward the idea of building such a mech anism on the WCO's Customs Data Model.   
84. The proposal was an invitation for Members to work together and create some new 
opportunities to improve facilitation and enhance tools used by authorities for ensuring compliance.  
Just as important, however, as the paper set out, were th at the results in that area could be a ladder for 
bringing forward the border regimes of Members at  all levels of development through the emergence 
of a virtual cooperation and information "network".   
85. The India-US proposal put forward what the sponsors saw as the next steps to be undertaken 
towards meeting the mandate.  There were many asp ects to the issue of cooperation and information 
exchange, as the paper noted, and future submissions could be expected.  It should be apparent – if 
only from the partnership behind that proposal – th at there was a genuine need and interest in 
advancing on that element of the mandate rounding out the rest of the NG's work.  The United States looked forward to that effort as the NG's work overall intensified.   
86. The representative of India
 said that the revised compilation of the proposals would be an 
important document as Members moved towards a more intensive phase of the negotiations.   
87. India was pleased to introduce the India-US paper on customs cooperation and fully 
supported the ideas expressed by the US  when introducing the paper.   
88. India noted that the joint paper was the firs t proposal on the third aim of the negotiations 
under Annex D modalities, whereas the other two aims  of Annex D, combined together, had already 
attracted more than 50 proposals.  India was pleased that the work on the third aim of negotiations had 
been started with that proposal.   
89. India believed that Members' work in the NG woul d be incomplete if the issue of establishing 
a multilateral mechanism for exchange and hand ling of information between Members was not 
addressed.   
90. Some of the important reasons for undertaking negotiations on trade facilitation, such as 
exponential growth of global trade and advancemen t of information technology, also afforded 
opportunities to look at enhanced compliance m echanisms.  India believed that the current 
negotiations provided the right opportunity to give a multilateral under-pinning to the traditional 
bilateral method of cooperative inform ation exchange.  That would be in tune with Members' work on 
improving GATT Articles V, VIII and X.  India st rongly believed that an enhanced compliance 
system through such a cooperation mechanism would be  another facet of trade facilitation.  India also 
expected that a cooperation mechanism would have  some additional, positive spin-offs such as the 
creation of an information "network" involving all Members.   
91. The on-going negotiations presented an opportunity to evolve a cooperation mechanism for a 
broad universe of information categories, consis ting of both trade transaction information and 
secondary information.  However, India felt that it was best to approach the issue step by step and had 
therefore first focussed the discussions on a mechan ism for exchanging trade transaction information, 
which essentially consisted of data elements rela ting to movement of goods across the border.   
92. India was mindful that the outcome of the TF negotiations should not create any overly 
burdensome system or institution which a large number of WTO Members might find difficult to adopt.  Hence, India's aim would be that such a mechanism should be practical and efficient.  
Therefore, that work could take into account th e WCO's ongoing work on a Customs Data Model.    TN/TF/M/7 
 Page 13 
 
 
 93. India believed that another crucial issue that  would determine the efficacy of a cooperation 
mechanism was the issue of confidentiality in hand ling such information.  India would address that 
issue in more detail as the negotiations progressed.  India wished to suggest that the confidentiality 
barrier should not exist for such type of data whic h was available in the normal course of procedures 
to the customs authorities of importing and exporti ng countries.  Similarly, Members had to be 
mindful that one of the improvements they were  discussing for GATT Article X was to strengthen 
judicial appeal procedures.  The cause of an enhan ced judicial appeal system would definitely not be 
served by withholding normal trade transaction information which could be a crucial piece of 
evidence to bring a wrong-doer to justice.  The paper suggested the next steps for evolving a 
multilateral mechanism for the ex change of information.   
94. The representative of Paraguay  recalled Paraguay's earlier st ressing of the importance it 
attached to the channels for information exchange that allowed customs officials and others to have 
steady, effective and speedy exchange of information.   That contributed to being more transparent, 
improve customs procedures and prevent the committi ng of offences.  For those reasons, the US-India 
proposal to have networks for the exchange of commercial information was welcome, as were other 
proposals that would go into more detail on the envisaged mechanism.   
95. The representative of Chinese Taipei  welcomed the proposal from the US and India to 
establish a multilateral mechanism fo r the exchange and handling of information between Members.  
As everybody was aware, that exchange of inform ation had been undertaken bilaterally in specific 
areas.  When implementing measures such as advance ruling, pre-arrival clearance and post-clearance audit, Chinese Taipei agreed, in principle, that a multilateral mech anism for information exchange 
would enhance customs cooperation between Members.   However, one had to be very careful to 
address the second category of confidential information.   
96. Chinese Taipei sought answers to the following qu estions:  (1) should a hub be established for 
Members to transfer that trade transition inform ation?  And (2) how did the mechanism handle the 
information and how did it use it?  Chinese Taipei  was interested in further discussing some other 
elements of such a mechanism, such as, for exampl e, the possible use of information, communication 
technique and the potential developmen t of international standards.   
97. The representative of South Africa
 commented on the India-US paper, announcing South 
Africa's intention to co-sponsor the proposal.  Th e drafters of Annex D had recognized that trade 
facilitation and compliance with customs procedures we re interlinked and could be considered to be 
two sides of the same coin.  In a perfect world,  customs administrations' objectives would be to only 
facilitate trade and not to worry about enforcin g control, as all traders would be compliant.  
Unfortunately, that was not the case.  While South Africa acknowledged that the majority of traders 
and businesses were honest and very hard-working, one had to realize that there were those who were 
bent on committing criminal activities and who were  not willing to comply with customs laws.  
Unless one had the necessary tools to combat such  actions, countries would be deprived from reaping 
the full benefits that could be ga ined from trade facilitation.   
98. South Africa saw the primary role of customs ad ministrations as that of ensuring trade flows, 
by ensuring compliance with customs laws and pro cedures, and also other laws administered at 
borders.  It was the way in which customs admi nistrations discharged that responsibility that 
determined whether they facilitated or inhibited legitimate trade.  Customs administrations were 
increasingly coming under pressure to contribute to th e social-economic development by, on the one 
hand facilitating trade, and, on the other, preven ting additional economies and societies against the 
threat poached, amongst others, by organized criminal syndicates and terrorists.   
99. It was a common objective to promote trade that  would enable development, especially in 
developing countries.  That was, however, under threat from criminal elements.  The customs TN/TF/M/7 
Page 14  
 
 community was serious in responding to those cha llenges as was evident at the WCO Council meeting 
which had taken place in June 2005.  For the fi rst time, the WCO Council took a ground-breaking 
decision to approve a framework of standards to se cure and facilitate global trade.  Those standards 
would enable the seamless move ment of goods through international trade supply chains, and to 
empower customs administrations to effectively ensu re compliance.  One of the cornerstones of those 
standards was to establish a real-time cooperation be tween customs administrations through advanced 
electronic transmission of customs data, enabling customs administrations to identify high-risk 
consignments prior to the arrival of goods.  Sout h Africa had joined more than one hundred other 
countries who formally indicated their intention to implement that framework by depositing their 
declaration of intent with the Secretary-General of the WCO.   
100. The reasons that South Africa associated itself with that paper were the following:  First, 
South Africa believed that the negotiations should not  only strive to provide a balance between trade 
facilitation and compliance, but also to produce an agreement that would ensure maximum trade 
facilitation while also ensuring maximum compliance with the law.  Those two objectives could be achieved at the same time.   
101. Second, South Africa had always believed that the mention in the July Package of giving due 
account to the WCO was very important in ensuri ng that Members took full advantage of already 
developed tools in order not to re-invent the wheel  by developing similar tools.  The proposal was 
consistent with South Africa's thinking as it also referred to WCO instruments.   
102. Third, South Africa believed that the exchange of both categories of information, as indicated 
in the paper, would go a long way in addressi ng fundamental issues faced by all customs 
administrations, developed and deve loping alike.  Some of the benefits included the following:  the 
ability of countries to conduct risk assessment, to eff ectively deal with higher risk cargo;  and the 
ability of countries to ensure a smoother and much faster movement of low-risk consignments, thus 
enhancing the facilitation of trade.   
103. Looking at the key findings on benefits of trad e facilitation, words such  as increased revenue 
for customs, increase in investments, and economic growth, were seldom left out.  It was clear that 
whatever benefit a country could reap from the fac ilitation of trade, those could be easily subtracted 
by illegal activities.  Rogue traders and organized cr iminal syndicates also exploited the international 
supply chain through the evasion and avoidance of  duties and taxes, the smuggling of goods and 
money laundering and trade in counterfeit goods.  Those activities threatened national economic 
security.   
104. Members had to ensure that the benefits that  countries were looking for were not eroded by 
such threats.  The goals should be to give maximu m facilitation to legitimate traders on the one hand, 
and inhibit and disrupt illegitimate and criminal elem ents on the other.  That proposal offered the 
opportunity to do just that by establishing a mu ltilateral mechanism for information exchange.   
105. The representative of Switzerland
 said that Switzerland had understood the India-US paper to 
lean on two categories of information:  trade transact ions and specific cases linked to investigations.  
The submission dealt with the first category.  Sw itzerland would be interested in having further 
explanation on the mechanism descr ibed.  The question of confidentia lity of information would be a 
key element in the discussion.  Furthermore, Switzer land wished to underscore that its industry had 
insisted that WTO negotiations should serve to pr epare disciplines that would lead to a drastic 
reduction of information required for the clearance of  goods.  Different authorities should have a strict 
minimum of information necessary for clearance.  They had expressed concern that, in some cases, 
there was no confidentiality of information, with th e information not only strictly used for clearance 
but for other purposes.  However, further discussions were welcome.    TN/TF/M/7 
 Page 15 
 
 
 106. The representative of Singapore  had two comments on the India-US paper.  First, as identified 
in paragraph 8 of that paper, confidentiality was an important issue that had to be addressed.  
Singapore, like most countries, had confidentiality pr ovisions in its legislation to protect confidential 
business information submitted to the government.  Those rules were necessar y to allow businesses to 
operate in a cooperative environm ent and to prevent business info rmation from being divulged to 
unauthorized persons, as well as to maintain traders'  confidence in the govern ment agencies.  That 
was a sensitive issue.  Nonetheless, Singapore woul d endeavour to cooperate and render assistance 
whenever it was permissible under its legislation.   
107. Second, in exploring the possibility of implem enting the WCO Customs Data Model to define 
the universe of trade transaction information, it might be necessary to consider the position of 
Members which might be operating one-stop Single Window systems such as Trade Net, whereby 
traders just had to submit one trade declaration, wire and EDI system for processing by all relevant 
agencies.  That Single Window incorporated all th e data requirements of all controlling agencies.  
Therefore, it was possible that the data sets handled by Members operating Single Window systems could be different from the data sets required by authorities that might be operating on the two-step 
processing system highlighted in that paper.   
108. The representative of the European Communities
 welcomed the notion that Members should 
try to develop a multilateral platfo rm for cooperation between customs authorities in the negotiations.  
A number of proposals had already been made on cust oms cooperation at the border in the context of 
transit regimes.  The India-US proposal took that a step further in proposing a different form of 
cooperation between customs concerning the exchange of data.   
109. The EC noted that the paper referred to th e importance of bilatera l arrangements between 
customs administrations.  That element would continue  to be important in any future commitments or 
approaches to customs cooperation.  The EC also recognized the case for developing some 
multilateral arrangements as well and welcomed the re ference to the WCO Customs Data Model.  The 
paper was in a sense suggesting that that coul d constitute some form of generally accepted 
internationally used standard.  The EC also shar ed the point made by others on the question of 
confidentiality of information.  That was certainl y important and an issue which would have to be 
looked at in the future, as and when that pr oposed mechanism was developed further.   
110. The EC had some specific questions regardi ng the proposal.  First, it suggested that 
information exchange between customs could be part of supporting behind-the-border modern 
customs procedures, such as advance rulings or pre-arrival processing of information.  It was not very 
clear to the Communities why one would need to have a government mechanism of exchange of 
information in order to implement what were in fact business-to-government operations.  Pre-arrival 
processing of data and advance rulings were the pro duct of a relationship between the trader and the 
customs.  It was therefore not clear why one w ould need government information mechanisms to 
support those kinds of trading interests.  Clar ification was therefore sought on that point.   
111. Second, the proposal suggested that one could u se data generated at export for the purpose of 
import clearance.  In other words, the export data would actually replace data collected at import with 
the result of one therefore having only one set of data as opposed to two.  The EC wondered whether 
that was actually part of the thinking behind that proposal.   
112. More precision was further sought as to what th e proposed mechanism would actually be and 
how it would look.  The proposal did not really go into any specifics on the m echanism.  Lastly, the 
EC would be interested to have further explana tion as to which specific issues that mechanism would 
be designed to address or solve.  The paper was not very explicit about what sort of problems that 
kind of mechanism for information exchange was designed to solve.   TN/TF/M/7 
Page 16  
 
 113. The representative of Colombia
 said that the India-US proposal to improve cooperation 
between customs authorities was important.  It was important to implement a compatible information 
system so as to exchange information between parties, taking as a basis the WCO Customs Data 
Model.  Colombia was attentive to the developments  that would take place, taking into consideration 
the measures proposed in the India/US proposal.  The exchange that had taken place would help to 
continue developing that mechanism w hose general lines had been presented.   
114. Colombia also agreed with other delegations on the need to pay special attention to the 
treatment of confidentiality of information.  That  was critical.  If Members wanted to safeguard and 
manage properly confidential information, they had to have appropriate systems that would help in 
their work on both customs control and trade facilitation.   
115. The representative of Jamaica  said that the establishment of me chanisms for the exchange and 
handling of information was an area which Jamai ca had incorporated in its customs reform and 
modernization programme.  As such, customs cooperation, particularly through information 
exchange, was pursued actively by Jamaica with its main trading partners.  A number of information-sharing arrangements were being pursued.  Jamaica could therefore support the establishment of that 
mechanism as an outcome of the trade facilitation negotiations.   
116. More information was sought on the scope of the elements which would be binding, as well 
as on those which would be non-binding or applied on a best-endeavour basis.  Jamaica also wished to 
ensure that there was a streamlining of the cases where cooperation would take place.  In so doing, 
one would take account of the very important issue rai sed in the proposal in respect of the principle of 
confidentiality in handling information.  It would al so provide a certain degree of predictability of the 
types of requests that could be made as well as  the conditions under whic h cooperation would take 
place.  In terms of the procedural elements of cooperation, Jamaica would propose that an assessment 
of existing systems be done so as to avoid duplicatio n.  Furthermore, TA for information sharing and 
networking, both with agencies and cross agencies,  would be a priority in that context.   
117. The representative of Romania
 said that both the Chair's TNC report and the Secretariat's 
compilation reflected accurately the work done in  the NG and showed the way forward.  Romania 
welcomed the paper by India and the US which high lighted an important aspect of what the rules on 
trade facilitation might include.  Cooperation betwee n customs authorities was crucial in many cases.  
Romania's experience had shown that bilateral agre ements constituted today's way of solving those 
matters.  Romania would ask the proponents to further clarify how the mechanism might look.  The paper noted that it would be in full compliance with the WCO Customs Data Model, but Romania 
wondered whether the sponsors of the paper envi saged replacing the actual bilateral agreements 
among customs authorities with a new multilateral one.  Clarification was also sought on the scope of 
the information exchange the mechanism would provid e.  Romania also attached great importance to 
the confidentiality of the information to be ex changed between customs authorities and had very 
pertinent and very strict legislation on ho w to treat confidential information.   
118. The representative of Mauritius
 said that Mauritius supported the joint proposal by India and 
the US for cooperation between customs author ities on trade facilitation and customs compliance 
issues.  That would indeed be a positive step in expediting trade flows and enhanced transparency.  
Mauritius also welcomed the proposal to set up a multilateral mechanism.  Mauritius was, however, 
concerned, as had also been expressed by other de legates, about confidentiality aspects.  Further 
clarification on that matter would therefore be appreciated.   
119. The representative of China  said that the Secretariat's update d compilation was very important 
and could be taken as the basis for the future negotiating process.    TN/TF/M/7 
 Page 17 
 
 
 120. Exchange of information was a long-pending issu e, already discussed in several other fora, 
including the WTO Committee on Customs Valuati on and the relevant committees in the WCO.  
However, the practical obstacles remained unsolved in many countries.  As referred to in the paper by 
the US and India, major difficulties were confidentiali ty matters, the incompatibility in the IT systems 
under the data definitions, the overburden of work  for the customs of exporting Members, and the 
uncertainty of the legal status of the information provided by the customs of exporting Members to be 
handled by the customs of importing Members.  Howe ver, the launch of trade facilitation negotiations 
under the framework of standards for security a nd facilitation of global trade which was newly 
adopted at the annual conference of the WCO opened a very important opportunity to discuss that issue further and within a broader and more inte nsive framework.  China ag reed with the proponents 
that all Members should work together with th e cooperation from other relevant international 
organizations.  Members should be more creative during that process to find out a possible way to address all those obstacles.  China was ready to discu ss that issue in the future negotiating process.   
121. The representative of Japan
 appreciated the work by the US and India and agreed on the 
importance of customs cooperation, which would c ontribute to due customs controls.  While Japan 
understood the importance of information exchange, it also shared the concerns expressed by other 
Members with respect to confidentiality issues.  In  particular, the Japanese legislation imposed strict 
constraints with respect to the provision of informati on to other countries.  It also had to be taken into 
account that Members had different legal and judicial systems.  Therefore, one had to take into full 
consideration confidentiality aspects in developing the India-US proposal.  The issue would become 
much more important when Members discussed multilate ral systems, not with respect to a bilateral 
agreement, but with respect to information exchange .  That would have to be discussed further.   
122. The representative of Australia  recognized that cooperation between customs authorities was 
the third objective of the July Framework manda te that welcomed the launch of discussions to 
advance that objective through the India-US proposal.  Australia wished to highlight three points in a 
preliminary reaction to the proposal.   
123. First, as for several other Members, confiden tiality was an important issue for Australia.  
Australian businesses did provide commercial informa tion to customs authorities, in confidence, and 
were sensitive to the way in which that informati on was managed and handled by customs.  That was 
an issue that Members had to look at closely as they moved forward on that proposal.  Second, 
Australia noted the intention to build on work of the WCO in that area and would be looking closely at precisely how that WCO work could be translat ed into the WTO environment.  There could be 
many ways in which that could unfold.  Third, Australia noted that the information that could 
potentially be covered by category I of the propo sal would potentially involve a huge volume of 
transactions, presumably import and export data between developed and developing countries.  
Clearly, one was looking at a two-way flow of inform ation here, and one would need to consider the 
extent of the administrative burden that that might impose, notwithstanding the obvious ability to 
make use of IT technology.  Australia was willing to further discuss the details of the submission and 
looked forward to further proposals on the matter.   
124. The representative of Pakistan
 said that, with respect to the India-US proposal, Members had 
already agreed in the July Framework that an y agreement on Trade Facilitation would aim for 
effective cooperation between customs.  Pakistan ag reed with the sponsors of the paper that Members 
should establish a practical and effective commit ment pertaining to (i) a defined universe of 
information;  (ii) a practical basis for exchange that was efficient and not burdensome;  and (iii) a 
forward-looking exchange of information.   
125. With respect to the question of confidentiality, Pakistan agreed that one had to address that 
matter.  However, one had to be careful not to use th at concept for a one-way flow of information.  In 
the past, there had been much ag reement between developing countries, and also through the WCO, TN/TF/M/7 
Page 18  
 
 and that sharing of customs information was mostly  serving the interests of developed countries, such 
as, for example, with respect to the information flow about drugs, etc.  But when developing countries wanted any information on valuation or simila r matters, that request was often refused on 
confidentiality grounds.  Therefore, anything Members built up should be bilateral and in the interests 
of both sides.  Pakistan looked forward to seeing a further building-up on th e US-India proposal.   
126. The representative of Korea
 said that Korea welcomed the India-US paper on a mechanism 
for information exchange.  Korea did not deny th e usefulness of such a me chanism for information 
sharing which would help Members to proceed and share important information among customs authorities.  In that respect, Korea welcomed th e consideration of that mechanism for information 
exchange.   
127. At the same time, Korea also had some concerns and reservations, like other Members, on 
what kind of differentiation was to be made be tween the first and second category of types of 
information.  That should be further developed.  Th at was also closely related to the matter of the 
multilateral or bilateral mechanism for those different  types of information.  Also, one had to think 
about whether some regulations or agreements we re subject to obligations on an obligatory or 
voluntary basis, and to what extent.  Another point already mentioned by Japan was that there were 
very different legal bases depending on each country and how those mechanisms could be 
incorporated as a rule.  Korea shared the views regarding confidentiality and usefulness of that 
mechanism and the compatibility be tween the two of them.  Those concerns should be further 
elaborated.   
128. The representative of Brazil
 said that the US-India proposal was a good one that pointed in a 
new direction.  It was the first proposal on the issue of exchange of information defined as part of the 
NG's mandate in Annex D.  One did not yet kno w the details of that multilateral mechanism on 
information exchange.  While agreeing on the relevan ce of the matter, Brazil agreed with Pakistan on 
some of the concerns raised.  Confidentiality was definitely an important issue, but it should not 
prevent countries from having access to important information.  Therefore, whatever one did to 
preserve confidentiality had to be done in a way that did not prevent countries from having access to 
information they needed.  That should be importa nt from their perspective as importing countries and 
as trade partners.   
129. The representative of Egypt  said that, while specific instruc tions had not yet been received 
from his capital on the India-US paper, the issue of exchange and handling of information between 
Members had already been discussed, albeit in a di fferent context and framework, in the Committee 
on Customs Valuation, where the matter had been ta ken up as an implementation issue.  At that time, 
the instruction had been to support that mechanis m of information.  Therefore, until having any 
further instructions, Egypt was generally s upportive of that kind of mechanism.   
130. The representative of Peru  said that, on first impression, the India-US paper was very 
interesting.  Peru favoured all mechanisms for an exch ange of information.  It  had to be both open and 
transparent.  Peru shared some of the concerns that had been expressed by a number of delegations 
regarding the issue of confidentiality, and also on transparency, as mentioned by Pakistan.  Peru 
wished to see the further development of the paper.   
131. The representative of the United States  wished to respond to some of the points made on the 
India-US proposal.  South Africa's comments were appreciated.  The issue of information exchange 
had already been discussed previously in the WT O.  The US position had been different from the 
Egyptian one at that time.  What had changed was that there was now an opportunity to make one's 
own context.  There was a clean slate.  That had also come up in other proposals.  The advantage 
Members had in the negotiations was that they  could look at issues anew and forge ahead.    TN/TF/M/7 
 Page 19 
 
 
 132. With respect to the questions raised by the EC, the US wished to correct certain impressions.  
The examples of advance rulings and pre-arrival information had not been given as elements that 
would be assisted by such a mechanism.  Rather, they had been referred to as examples to underscore 
the importance of information that was used away fro m the border.  Customs was not just about visual 
inspection anymore.  The point had been to give examples of the importance of functions away from 
the border with the nexus being that, what was bein g proposed would be yet another tool to assist the 
performance of such functions away from the border.  The intention had not been to suggest that there 
was a direct link of the function of cooperation with, for instance, issuing binding rulings.   
133. As for the EC's second question of whether the proposal put forward a notion suggesting that 
data at exportation replaced that at importation, the US wished to clarify that that was not what had 
been suggested.  The United States had done some work  on that particular issue in the past, both with 
its neighbours to the north as well as with the United Kingdom customs administrations, but, certainly, that was not specifically provided for in the paper.  It might be an intriguing element to look 
into, as the negotiations proceeded, but he could not  say that that had been on his delegation's mind 
when submitting the paper.  The US would, however , invite the EC to advance such a notion.   
134. With respect to the third EC question about what the mechanism would look like, the only 
answer the US could give was: "let's see".  That was going to be up to Members.  The submission was intended to give some shape as to how to appr oach that element of the negotiating mandate.  
Confidentiality, for example, certainly had to be addressed, as well as efficiency.   
135. As for the EC's fourth question, seeking an explanation of problems, the US was a little 
confused.  In the United States, the customs administ ration liked to say that they were responsible for 
implementing and administering four hundred laws on behalf of forty agencies.  The US was sure that 
each customs administration in the individual EC member States was in a similar situation as well.  Therefore, overall, the proposal should not be take n as anything except a way forward, a beginning.  It 
had taken five decades for the United States and I ndia to put forward a joint proposal.  That should 
not be underestimated, as well as the fact that the US and India were both cognizant and 
well-schooled in the issues referred to.  Both shared th e interest in the fact that there was promise for 
a significant result, as well as the notion that the issues presented were in fact submultiple. Members 
had a chance to come in with some results that had benefits on many levels.  The US was most anxious to move forward on that issue.   
136. The representative of India
 said that India was pleased with the process that had been started 
with the US and was looking forward to continuing it.  Most of the questions raised on their joint 
submission had already been addressed in a preliminary way by the US.  India saw that as a 
beginning, and noted that there was interest in kn owing how that mechanism would work.  It was an 
issue Members had to work on further.   
137. India was thankful to South Africa for co-sponsor ing the paper.  Some of the concerns that 
had been expressed by them should also go to answer the EC's last question as to what kind of issues 
that cooperation mechanism was meant to address.  India looked at that mechanism as a means to 
address issues concerning the violations of cust oms laws.  The Indian delegation fully supported 
Pakistan's observation that the mechanism should be  such that it had an internal balance as well 
regarding the exchange of information which woul d include information of use to countries where 
customs revenue was still an important part of fiscal resources.  As a result, one would need 
information which helped to combat customs revenue frauds.   
138. Confidentiality was clearly important.  But one had to carefully consider whether it was 
meant to block information which, in any case, had to be shared by the business with the exporting 
country as well as the importing country.  That was the very important touchstone that one had to see with respect to confidentiality.  The second matter was whether it was blocked to be used from the TN/TF/M/7 
Page 20  
 
 judicial processes, which was, in some way, the e nd result of any process of an investigation relating 
to compliance issues.   
139. The representative of El Salvador
 referred to two contributi ons presented during the June 
meeting by China and Korea, and by Japan re lating to risk management (TN/TF/W/42 and 
TN/TF/W/49, respectively).  They had given useful  insight into the experiences applied by other 
Members.  Currently, and given the important progress that had been made in risk management, 
El Salvador had been carrying out procedures similar to the ones referred to in the submissions.  The 
only difference was that, in the case of other experien ces cited, they used tools and systems that were 
more sophisticated and advanced.  That highlight ed the importance of TA and support for CB which 
could be offered to countries such as El Salvador to  strengthen the administration of risk management.  
Risk management in El Salvador aimed at facilitati ng trade without losing control.  Measures adopted 
to that end included, in phase one, pre-arrival control measures, the study of goods that were prohibited, restricted or withheld, the analysis of  goods susceptible to tax evasion, classification of 
importers according to the frequency of non complia nce with current customs legislation, selectivity 
of products likely to be poorly classified from a tariff point of view, tariff classification of goods, 
origin of goods, and evaluation of goods.  In phase two, measures applied included franchises and 
samples without commercial value, control of importe rs who made use of special regimes as well as 
control of importers based on results obtained in  phase one.  Phase three involved feedback.   
140. Paragraph 3 of TN/TF/W/49 pointed out that in keeping with the method of risk management, 
commodities and traders could be classified in different categories in accordance with its number of standards.  El Salvador wished to know more a bout those standards, which were applied to classify 
basic products or commodities and traders, and to know what was meant by "basic product or 
commodity" in that context.  Regarding the levels of  risk in classifying goods and traders, El Salvador 
wished to know what treatment was given to each of those groups.   
141. With regard to the explanatory note pr esented by Japan in document TN/TF/W/42, 
paragraph 7 mentioned the applica tion of different trade facilitation measures to ensure the legitimate 
movement of goods and the adoption of necessa ry measures against illicit transactions or the 
movement of illicit goods through simplified declarati on procedures, a system of instant granting of 
import licences upon the arrival of goods, a pre-arrival examination system, and a system of payment of customs duties and other duties.  In that regard, El Salvador wished to know what limitations Japan 
had confronted for the application of those proced ures and how they had been solved.  Information 
was also sought on whether there were still obsta cles for the implementation of some of those 
procedures and systems.  That would allow developing and least-developed countries to capitalize on 
Japan's experience.   
142. The representative of Sri Lanka
 commented on the proposal by China and Korea on risk 
management (TN/TF/W/49), elaborating on the importan ce of risk management.  With the increase of 
trade volumes, it was no longer possible to examine 100% of all cargoes coming in and going out.  
But, at the same time, one could not forget the fact  that customs administrations had an onerous task 
to ensure compliance with customs laws and regulati ons by importers and exporters.  In order to draw 
an appropriate balance between the two elements of customs control and Trade Facilitation, it had 
now been well recognized that the best mechanis m would be the assessment and management of the 
risk factor involved.   
143. Even though the term "risk management" was re latively new, all customs administrations had 
been applying risk analysis either formally or informally, based on their experiences and on the 
information and intelligence they gathered.  What wa s required to date was to have an effective and 
well planned risk management procedure that could be adopted by all Member countries.  In that 
context, Sri Lanka shared the same view on the va rious elements of the proposal made by China and 
Korea.    TN/TF/M/7 
 Page 21 
 
 
 144. Sri Lanka also wished to take the opportunity to elaborate on certain aspects related to risk 
management, which Sri Lanka felt should be included in the measur es to improve Article VIII.   
145. First, Sri Lanka was of the view that a mutual administrative assistance programme should be 
in place for the countries to exchange informati on necessary to develop risk profiles that would 
enhance risk management which eventually facilitate d trade.  Particularly, it was the responsibility of 
countries that had more trade benefits to provi de information required by the other respective 
countries.   
146. Second, Sri Lanka wished to emphasize the importance of adopting a compliance 
measurement strategy by customs administrations w ithin the framework of ri sk management.  That 
could be done by random examinations based on auto mation and also through audit-based checks.   
147. The representative of India  associated his delegation with the statement by the Philippines on 
behalf of the Core Group.  India wished to co mment on papers TN/TF/W/40 to TN/TF/W/50.  Many 
of the ideas presented in those papers echoed those pr esented earlier.  Therefore, India's intervention 
was limited to new proposals or to those where India considered it important to reaffirm its stated position.   
148. With respect to Article X-related proposal s by Argentina (TN/TF/W/40) and Turkey 
(TN/TF/W/45), India broadly supported the proposal to create an official WTO webpage with a "trade facilitation" link to Member countries, or a WTO trade portal.  India, however, had concerns 
regarding the creation of a national enquiry poin t, which India had already expressed at the May 
meeting in response to a somewhat similar pr oposal by China in TN/TF/W/26.  Turkey had 
specifically mentioned that if different addresses were indicated for different trade regulations, that 
would not contribute to the aim of facilitating trade. India was unable to appreciate that logic.  Trade 
regulations in different areas required specific exper tise and it might be difficult for a single enquiry 
point to handle all queries w ith equal depth of knowledge.   
149. India broadly supported Argentina's proposal (TN/TF/W/40) that each Member should 
provide the Secretariat with a list of websites c ontaining detailed (and updated) information under 
Article X with TA being given to developing countries and LDCs, whose native language was not one 
of the official WTO languages, to translate the regula tions in at least one of the official languages of 
WTO, as well as Turkey's proposal (TN/TF/W/ 45) for developed countries to publish all 
regulations/legislations in one of the WTO offici al languages with developing countries adopting a 
'keyword' approach to improve accessibility to trad e regulations.  But Argentina only talked about 
developing countries.  It was India's understanding that the requirement of publishing regulations in 
one of the three WTO official languages would also  apply to the developed countries whose working 
language was other than one of the three WTO langua ges.  That was clearly mentioned in Turkey's 
proposal and India supported that. India's understanding of Turkey's proposal of a 'keyword' approach 
was that it would apply to developing/least-devel oped countries whose official language was other 
than one of the three official WTO languages.  While India supporte d that idea in principle, India 
sought more clarity on how such an approach would work; particularly how a keyword, which would 
be in a WTO official language, would lead an interest ed party to the main legislation, which would be 
in a non-WTO language.   
150. Turkey's suggestion for Members to define thei r customs work processes with a flow chart in 
the official website of their customs authorities wa s useful, but would be burdensome to implement.  
There were several customs process es like export, import, refund, drawback, adjudication, etc.  
Preparing and displaying a work flow chart for each  one would be difficult a nd burdensome.  One had 
to guard against evolving a system that tended to create an information-overload.   TN/TF/M/7 
Page 22  
 
 151. With respect to Article VIII-related proposal s and Turkey's suggestion to harmonize import 
documents and data required for the release of goods , using existing international standards under the 
CV Agreement, the HS Convention, the UN Layout Key guidelines, the WCO Kyoto Convention, Agreements on TRIPS and Rules of Origin (ROO),  etc., India supported the broad thrust of the 
proposal regarding standardizing trade documents.  However, India was not clear as to what standards 
were being referred to under various WTO agreem ents for the harmonization of documents.  For 
instance, it was India's understanding that the Agreement on CV and ROO did not contain any standards which would help in sta ndardizing documents. India sought clarification on that issue.   
152. With respect to Turkey's proposal to establish a time limit for customs release to increase the 
predictability of customs procedures, and the EC's suggestion for each Member to establish and agree 
progressively to reduce its domestic standard processing times for goods release and clearance, based 
on a common instrument such as the WCO Time Release Study (TN/TF/W/46), India reiterated its position given in response to Korea's paper (TN/ TF/W/18).  In India's understanding, Members' 
commitment would need to be limited to publishing  average time of release for important customs 
stations for past periods.  Members would themselv es determine that release period which would only 
serve as an indicative time for clearance of goods ra ther than imply any commitment.  India wished to 
point out that India's domestic Time Release St udy indicated that time periods for goods clearance 
was not only dependent upon the speed and efficiency of customs procedures but also, to a significant extent, upon speedy action by the importer in filing the goods declaration, responding to queries and in making duty payment.  Furthermore, time periods for goods release also depended upon the state of 
infrastructure at the port and the hinterland connectiv ity.  On account of those considerations, India 
would be unable to consider any type of prescr iptive commitment to establish and progressively 
reduce a standard processing time.  However, India recognized the value of reducing processing times 
and was making every possible autonomous effort in  that direction and hoped that other Members 
shared that goal, too.   
153. As for the EC's proposal for a commitment to  simplify and reduce documentation and data 
requirements to an absolute minimum consistent with the need to enfo rce legitimate policies 
(TN/TF/W/46), India felt that, while favouring a generalized commitment to simplify and reduce 
documentation and data requirements in line with certain listed international standards, setting a 
commitment in terms of "absolute minimum" was to o strong.  India sought clarification from the EC 
as to whether they had any illustrative criteria in  mind to operationalize that notion of "absolute 
minimum".   
154. With respect to the EC's proposal for routin e acceptance of relevant commercially available 
information (TN/TF/W/46), India had pointed out during the May meeting in response to Korea's proposal (TN/TF/W/18) that such a practice would be somewhat contradictory to another proposal of harmonizing document formats.  On ce harmonization and standardi zation of document format was 
achieved, there would be a necessity for customs aut horities to have another system to forego certain 
documentation requirements when relevant inform ation was already available in a commercial 
transaction. In India's understanding, a standardized  documentation format should serve as a standard 
goods declaration and that could not be dispensed with.  
 
155. India broadly supported the EC's proposal that  each WTO Member or Customs Union should 
have a uniform customs code or aligned customs legislation, as well as a single import and export 
declaration, administrative message or data set.  Members would in any case be expected to move in 
such a direction in an environment of automated clea rance.  However, India wished to point out that 
that should not preclude a Member from having diffe rent documents for different customs procedures 
(such as home clearance, warehousing, ex-bond, et c.), when those procedures were being undertaken 
through paper filing and not EDI.    TN/TF/M/7 
 Page 23 
 
 
 156. With respect to the EC's proposal for a progressive implementation of single, one-time 
presentation to one agency, normally the customs, of all documentation and data requirements for 
export or import, subject to any exceptions to be identified with flexibility being required for some 
developing countries (TN/TF/W/46), India had already commented on that issue with reference to proposals by Korea (TN/TF/W/18) and Canada (TN/TF/W/20).  India had suggested that such a 
Single Window system should be in the nature of a best-endeavour clause for developing countries 
since it would require substantial resources to de velop full connectivity between various agencies 
dealing with border clearance procedures and for standa rdization and integration of data requirements 
of all such agencies.  India therefore expressed its strong concern about the EC's suggestion that there 
should be flexible implementation of that pr ovision for only some developing countries.   
157. As for the EC's proposal to have a commitment by each Member to introduce simplified 
customs release and clearance procedures including the possibility of:  pre- arrival processing of 
documentation; rapid release procedures based, for example, on the submission of a simplified document and mechanisms for post-release reconcilia tion of documentation and duties payable;  the 
possibility of customs clearance or relevant export control at an importer's or exporter's premises;  and 
the possibility of periodical audit and duty paym ent rather than duty payment on the basis of 
individual transaction, India broadly supported a sy stem of simplified customs release and clearance 
procedures as provided under the WCO's revised Kyoto Convention.  India sought clarification from the EC whether they had any other specific elemen ts of simplified customs release and clearance 
procedures in mind, in addition to those already listed.   
158. With respect to the listed procedures, India ha d some reservations.  The first related to the 
proposal to allow for the possibility of customs cleara nce or relevant export control at an importer's or 
exporter's premises as a generalized commitment.  I ndia currently had a system of completing export 
procedures at an exporter's premises (normally for ma nufacturer exporters).  India also had a system 
of permitting on request, examination of some categ ories of import goods, such as specialized cargo 
requiring examination in a specialized environmen t, or perishable cargo.  However, India only 
extended such a facility subject to availability of staff.  India would have reservations regarding 
taking that as a binding commitment for all forms of exports and imports, on account of 
considerations of additional res ource requirements.  The second issue where India would have a 
reservation was the proposal to have a periodic duty payment instead of payment on the basis of 
individual transactions.  India felt that, in India's trading environment, that would pose a risk to revenue and a burdensome additional requir ement of monitoring duty recovery.   
159. India broadly supported the EC's suggestion to in troduce systems of authorized traders, using 
transparent, objective and non-discriminatory cr iteria with such systems not excluding the 
participation of SMEs.  However, India wished to  sound a note of caution regarding the proposal to 
have non-discriminatory criteria for SMEs.  In Indi a, a system of simplified clearance for trusted 
traders (which was in the nature of an authorized trader system) was based on certain criteria such as 
import turnover, transaction turnover, a prescribed number of years of import and export, central 
excise registration, etc.  Such criteria were evol ved to exclude fly-by-night operators from such 
schemes, but some of them might adversely affect SMEs in obtaining the status of trusted trader.  Hence, India wished to highlight that, while an y criteria should not expressly discriminate against 
SMEs, it should not prevent Members from adopting cr iteria which was consistent with their domestic 
needs of risk assessment, revenue security, etc.  In ot her words, the criteria would need to be based on 
individual national requirements.   
160. India also broadly supported the EC's proposal regarding convergence of official controls in a 
"one-stop shop".  However, one had to be mindful  that meeting that requirement would require 
cooperation, coordination and resource availability of several agencies other than customs.  In that 
respect, India supported the notion of a best-endeavour  clause built into that proposal by use of the 
expression "to the extent possible".   TN/TF/M/7 
Page 24  
 
 161. Regarding the EC's suggestion for the elimina tion of Pre-Shipment Inspection arrangements, 
India broadly supported that proposal with the caveat th at one would need to continue with some form 
of specialised, pre-shipment inspection systems, fo r example for potentially hazardous goods (such as 
waste and scrap iron and steel originating from war affected areas, since those could contain explosive materials).   
162. As for the EC proposal to have a commitment to non-discrimination in terms of requirements 
and procedures applicable to like pr oducts irrespective of their mode of transportation, India, like 
many other Members, was also not sure how such a commitment would operate in practice.  India looked forward to further amplification of that proposal with examples.   
163. The Communities' suggestion that non-discriminatory rules should apply in respect of 
licensing of customs brokers and to having an undertaking to phase out any requirements for 
mandatory use of customs brokers was broadly suppor ted.  India, however, sought greater clarity from 
the proponents on their understanding of the term "non -discriminatory rule".  In India's understanding, 
some elements of such a principle could also be linked to the GATS negotiations.   
164. With respect to Article V-related proposals,  and Singapore's suggestion to clarify the 
expression "unnecessary delays" appearing in Article V: 3 by stipulating [a] time period[s], after which 
any further retention at the custom house could be deemed to constitute unnecessary delay (TN/TF/W/47), India was of the view that time pe riod for goods clearance was not only a function of 
efficient customs procedures but was also interlinke d with infrastructure and resource issues.  While 
India had simple transit procedures, India had a systemic concern in accepting any fixed time period 
regarding clearance of goods, either for home consumption or for transit.   
165. As for Singapore's idea that Members should di scuss what could legitimately be charged in 
respect of transit traffic within the parameters  prescribed under GATT Article V:3 (be commensurate 
with administrative expenses and cost of services) an d under what situations administrative expenses 
be imposed on transit traffic, as well as drawi ng up guidelines for imposition of "administrative 
expenses", India had observed at the June meeting,  in response to the EC's proposal on the same 
subject (TN/TF/W/35), that, while India had minimal charges on transit, it wished to know from the 
proponents an illustrative list of transit charges.  I ndia noticed that some examples had been given in 
that proposal, namely expenses for risk assessment and for random inspections.  Members' work in 
that area would be benefited by further illustrative examples of that kind.   
166. Finally, regarding Singapore's proposal to stre ngthen international cooperation with respect to 
transit with the NG considering the possibility of drawing up a non-exhaustive list of elements that 
Members should endeavour to incorporate when negotiating regional transit agreements, India 
proposed that any non-exhaustive list of elements for a regional transit regime should only be an 
indicative and a non-binding list.  The illustrative examples of possible elements for harmonization suggested in the proposal indicated that Members had to be mindful that some of those subjects were also negotiating issues under GATS and hence would need  to be dealt with with appropriate caution.   
167. The representative of Colombia
 commented on the proposals concerning inspection involving 
risk assessment.  Colombia had an automatic risk ass essment procedure.  As criteria, information was 
used that had been analy sed by customs officials.  Colombia w as therefore very interested in having 
more information about risk assessment systems.  In ternally, Colombia was adapting its legislation in 
order to try to improve the performance in that  area.  The Colombian authorities were willing to 
support such proposals, but would require TA&CB from  countries that had more experience in that 
area.   
168. Recently, the Government of Colombia had adopted a law which established procedures 
designed to expedite import and export clearance pr ocedures.  At a future meeting, Colombia would  TN/TF/M/7 
 Page 25 
 
 
 share with the NG the objectives and results obtained.   The same piece of legislation established an 
obligation for the authorities responsible for physical inspection in Colombia's airports, seaports and 
border areas to coordinate their activities so as to be able to respect deadlines and to limit the cost of 
the procedures.   
169. Colombia welcomed the papers by Japan (TN/TF/W/42), China and Korea (TN/TF/W/49), 
and Singapore (TN/TF/W/46).  Colombia's animal  and plant health department had asked for 
information regarding experience with, and assist ance from, countries that had risk management 
procedures for the importation of goods that could i nvolve sanitary and phytosanitary risks.  Colombia 
welcomed Singapore's proposal to strengthen risk management for transit goods, thus facilitating the 
transit of low risk goods.  The Colombian delegation also welcomed the proposals designed to 
promote regional transit agreements and coordina tion amongst customs authorities of countries with 
common borders, as set out in the Norwegian proposal (TN/TF/W/48).   
170. The representative of Turkey  said that the updated Secretariat compilation would have a 
central role in the future phase of the negotiations.   
171. Turkey also wished to thank India for their va luable comments and clarification requests that 
Turkey would respond to in the near future.  It th at context, it would be helpful if the comments and 
questions could be provided in writing.   
172. Turkey also wished to share its views on some  of the proposals on the table.  Turkey had 
previously submitted a paper that proposed the establishment of an enquiry system providing access 
to the national legislation of WTO Members by using keywords.  From the perspective of that 
proposal, Turkey supported Argentina's proposal in TN/TF/W/40 to set up an official WTO website 
and appropriate links to nati onal information sources.  Deta iled information concerning the 
commercial practices could be reached through the mechanism proposed in paragraph 22 of 
TN/TF/W/45.   
173. Turkey supported the initiatives to facilitate clearance formalities of express shipments. 
Turkish Customs already provide d simplified procedures for express shipments.  Consignments 
whose customs value were under a certain de minimi s threshold and non-commercial in nature could 
be declared to customs authorities by shipment companies under a single declaration form for a day 
with a list of related consignments attached.  Cu stoms staff could eventual ly adapt their working 
hours, taking into account the requests of shipping comp anies.  The experience in  that field justified 
the economic rationale outlined by Chinese Taipei in its submission TN/TF/W/44.  However, some 
features of Chinese Taipei's practice, such as si mplified declaration of low-value shipments and 
financial guarantees, might not be implemented for the time being due to systematic reasons.  Thus, 
Turkey was of the opinion that the economic jus tification of accelerated transactions for express 
shipments was clear and should be acknowledged in th e final commitments.  However, instruments of 
simplification could be decided upon by the resp ective Member itself in accordance with the WCO 
Guidelines.   
174. As for risk management proposed by Japan in  TN/TF/W/42, in Turkey's view it allowed 
authorities to focus compliance in  selected areas as opposed to a full-scale transactional compliance 
approach in order to use resources more efficiently .  As Turkey already applied such a system, it 
supported the use of risk management techniques in customs clearance as stated in TN/TF/W/45, and 
therefore supported Japan's proposal.  In addition, it should be noted that most of the risk management 
techniques required computer-based systems.  Theref ore, Turkey wished to underline the need for 
infrastructure and technical capacity to perform or improve risk assessments.  Turkey also shared 
most of the views put forward by China and Korea in TN/TF/W/49 including the ones on classification of companies according to their co mpliance records and post-clearance control.  TN/TF/M/7 
Page 26  
 
 However, Turkey had some reservations about the fu nctioning of a risk management platform to share 
primary customs data. More clarification would be appreciated on that topic.   
175. Among proposals put forward by Singapore in TN/TF/W/47, Turkey supported the ideas of 
determining entry customs house, and providing a de finition for administrative expenses and cost of 
services rendered.  Turkey would like to propose for the term "unnecessary delay" to be linked to the 
standard clearance time to be declared by Member s.  Since the standard clearance time would be a 
reference time for completion of all transactions un til release, that might ultimately help to avoid 
unnecessary delays at customs.  Turkey also agreed  on the necessity of strengthening international and 
regional cooperation in transit.   
176. Turkey also supported the proposals of the EC in TN/TF/W/46 and shared Argentina's 
approach regarding the links between elements of Annex D.  Workshops by the World Bank in three 
countries had shown that facilitation in trade ope rations was not only a commitment, but also a 
process starting from the phase of identifying needs a nd priorities.  That process was expected to 
deliver the outcome of a capacity strengthened e nough to run speedy and secu re operations.  For that 
reason, commitments should be in parallel with the administrative capacities of developing countries 
in particular.  S&D treatment at that point shoul d, and could, be a reliever to keep pace with 
requirements of the final outcome of the negotiations.   
177. The representative of Argentina
 referred to India's comments on communication 
TN/TF/W/40, saying that it would appreciate receiving them in writing to be able to give them due 
consideration.  Argentina sought clarification on tw o points.  First, it seemed that India generally 
supported  the possibility of establishing a WTO website  which could serve as a portal for TF and that 
they had no problems with establishing links to national websites.  Argentina understood India's 
concern relating to the setting up of  a single focal point because that would mean setting up a specific 
central body.  The idea behind Argentina's proposal had been to have trade information that was 
easily accessible.  But Argentina also thought that it would not be sufficient to just have information 
whereby the trader could have access to the information if there was no possibility of putting 
questions or getting guidance.  It was indispensable to create the scope whereby the trader could have 
access to, or have interactive communication with, th e relevant authorities.  That was the value of 
having a central office or some mechanism which could facilitate that.   
178. India's second point about the proposal being a pplicable to developing as well as developed 
countries, as well as LDCs, was a matter of persona l interest.  There were paragraphs that only 
referred to developing and LDC countries, but there would certainly be need for TA&CB to enable 
those countries to establish those websites or create focal points and the like.   
179. The representative of China  commented on various proposals, starting with the paper by 
Japan (TN/TF/W/42).   
180. In that paper, the collection, assessment and an alysis of information and providing of proper 
treatment to the traders were referred to as being th ree sequent steps for customs to facilitate trade.  
China believed that those steps were very important .  Moreover, applying f acilitative measures, such 
as, for instance, the Simplified Declaration Procedures and Instant Import Permit upon Arrival System mentioned by Japan, certainly could not be done w ithout the necessary support of IT application and 
highly qualified staff.  Coordination and coope ration among the government agencies, and with 
private sectors, were also of fundamental importance in that regard.  Since adoption of those measures 
required necessary investment in terms of funds and human resources, it required political will and 
economic development to reach a considerable leve l.  Only then would government officials and 
traders be in the position to realize the importa nce of a more effective and efficient customs 
management for their trade activities.  It was a matter of cost-and-profit action.  Revenue-focused  TN/TF/M/7 
 Page 27 
 
 
 Members needed experiences and TA from other Members which had already implemented that to 
secure their duty collection.   
181. In that context, China would suggest that c ountries with early implementation experiences not 
only introduce the concepts, but also share their expe rience in developing those concepts to help other 
Members better understand how TF improved the de velopment of the economy.  China appreciated 
Japan's efforts in that respect.   
182. As for a proposal from Argentina (TN/TF/W/40) regarding publication of information 
through the website, the Chinese delegation consid ered it to be a good idea to link a Member's 
national website containing detaile d information under Article X to th e WTO website available to all 
Members.  However, because of the different development stages, developed Members might be 
capable of publishing all regulations/legislation in  the three WTO official languages without major 
difficulties, while developing and least-devel oped Members might confront implementation 
difficulties given their national languages and their li mited ability to apply IT.  Therefore, flexible 
approaches regarding timeframe a nd range of regulations for pub lishing on websites should be taken 
into account.   
183. China was of the view that the translation c ould be done at the national level with necessary 
assistance from the WTO Secretariat.  The international community's financial and technical support was vital.  Members should be encouraged to co mmence the work as early as possible.  Websites from 
developed Members that had been created could be linked to the WTO website as soon as they considered it proper to do so, as a model for implementation.   
184. As for the EC's proposal in TN/TF/W/46 to ha ve a uniform customs code, China wished to 
echo that idea.  It was important for both the cust oms and traders to talk about business on the same 
legal ground within a customs territory.  When me ntioning the "standard processing time", China was 
of the view that carrying out that kind of analysis would be of great help to the customs to find out its weakest point in expediting release of goods.  
185. With respect to the proposal by Singa pore (TN/TF/W/47), and its definition of 
"administrative expenses", Singapore had mentioned th at "Members could clarify that 'administrative 
expenses' should only relate to costs expended fo r risk assessment and random inspections.  That 
could be a nominal fee which should be applied on a non-discriminatory basis".  However, in the 
practice of China Customs, if the enterprise wa s granted to an expeditious customs clearance 
procedure, no charges should be imposed on the consignment.   
186. As for drawing up a possible guideline to define the "cost of services rendered" and 
"administrative expenses entailed by transit", Ch ina's concern was that, because of the diversity 
among Members, it was hard to compile such a guide line.  China wished to know more about what 
kind of methods were to be introduced in developing th e guidelines that were acceptable to Members.   
187. The representative of Korea
 expressed Korea's belief that, under the very limited resources 
and manpower, risk management was one of the most effective ways to make best use of those 
capacity constraints.  Risk management techniques were  there to direct those li mited resources to high 
risk commodities and areas as opposed to commodities having a lower risk .  It was also a way to get 
the right balance between facilitation of procedur es and compliance with the relevant rules and 
regulations.  In that respect, Korea had proposed th at risk management might be applied to various 
areas, including the post-clearance audit, or customs classification and valuation, and others.   
188. Korea shared the view on the need for TA&CB fo r the application of that technique.  Korea 
was also open to further negotiations on the specific elements on the application of risk management, TN/TF/M/7 
Page 28  
 
 including, as Sri Lanka had rightly pointed out, some  mutual assistance programmes for risk profiles, 
enterprises classification, or adoption of compliance strategies.   
189. The representative of the European Communities
 replied to questions raised by India, 
announcing that answers would also be submitted in writing.  With respect to India's question about 
the EC proposal that each Member established a domestic procedure for measuring standard 
processing times, the EC agreed that each Member  should determine their own domestic standard 
times.  They could not, by definition, be harmoni zed across the Membership, and should not be.  The 
idea was for those times to be indicative only.  Th e important element was that each Member actually 
took the important step administratively to in troduce that system of self-assessment and self-
measurement, for the good reasons expressed by China.   
190. With respect to India's suggestion of it being a contradiction to, on the one hand propose the 
standardisation of the customs declaration, and, on the other, require customs to routinely accept 
commercially-available information, the EC could th ink of a number of circumstances where, beyond 
the basic requirements of the standardized custom s declaration, traders might be asked to provide 
more information, such as, for instance, on the weight  of goods, on whether par ties were related or not 
for the purpose of customs valuation, standard i ngredients and measurements for products.  Those 
were things which could be demanded by custom s subsequent to an initial check of the import 
declaration.  And in those situations, the trad er's own commercial data documents should normally 
suffice.   
191. As for India's concerns about the EC's proposal  regarding a Single Window for the lodging of 
data or documentation for import and export being suggested to be flexibly applied as a best 
endeavour only for some developing countries, the EC  wished to explain that its initial thinking was 
that the LDCs who had the greatest resource limitati ons might find that more difficult to apply than 
larger developing countries.  Howeve r, the EC took the point that a country such as India, which had a 
large number of regulatory agencies, and a large nu mber of ports, airports, and entry points, might 
also face challenges in operating a Single Window system.  A discussion had already taken place on 
that matter when negotiating the Import Licensing Agre ement.  One would have to look at a flexible 
approach that would commit all Members progr essively, perhaps along the lines proposed by 
Singapore, to introduce a Single Window concept.   
192. India had also expressed reservations concerning the proposal that, among the simplified 
procedures that Members might introduce were the possibility of customs clearance at an importer's 
premises, or the possibility of pe riodic duty payments.  Both measures were a very straightforward 
and useful trade facilitation measure.  In particular , the possibility of periodic duty payments was 
much more efficient and time-saving – both fo r traders and for customs – than individual 
consignment-based systems of duty collection, and,  in many cases, periodic payments of duty could 
be linked to some kind of authorized trader scheme.   It was one of the privileges accorded to traders 
with a very good compliance record.  One did not ha ve to collect the duty from them on every single 
occasion, on every consignment, but it could be collected on a monthly basis, or periodically.   
193. On the question of convergence of official controls at the border, India had rightly recognized 
that that required a degree of coordination between  different border agencies, such as the customs or 
the veterinary authorities, and that that therefor e should only be a best endeavour.  That was one 
possibility.  The EC noted, however, that in the pa per tabled by Malaysia, which addressed the same 
issue (TN/TF/W/50), Malaysia also suggested that there could be a general commitment to provide for 
convergence controls subject to exceptions.  Perhaps that might be a way round the particular Indian 
concern.   
194. On the question of customs brokers, India suggested that a provision to provide for non-
discriminatory licensing of customs brokers might involve the GATS rather than the GATT.  That  TN/TF/M/7 
 Page 29 
 
 
 might be true and the EC would look again at that.  For the EC, the important thing was that traders 
should be allowed to import and export directly an d lodge their declarations directly rather than 
having to go through the often very burdensome a nd costly monopoly of customs brokers which they 
experienced certainly in some countries.  On the ot her questions tabled by India, as well as on those 
posed by the Philippines, the EC would come back in writing.   
195. The representative of Egypt  commented on document JOB(05)/158 from Hong Kong, China, 
replying to Egypt's questions in submission TN/TF/W/ 31.  What Egypt valued in that paper was the 
key word "flexibility" which recurred in most of the paragraphs on HKC's views on the application of 
the suggested benchmark on the necessity and r easonableness, as well as for the self-review 
mechanisms and the related questi ons of how frequent it should be a nd whether it should be left to 
each country to decide what was more suitable for it.  As for Hong Kong, China's experience, on the 
application of those benchmarks and the self-revie w mechanism, Egypt also recognized that Hong 
Kong, China acknowledged that it was a free port, wh ich was quite a specific situation.  It was 
interesting to see how they implemented that suggestion. 
196. The representative of Hong Kong, China  said that the Secretariat's updated compilation would 
serve as a useful basis for the NG's future work.   
197. Hong Kong, China wished to reply to India's verbal questions about Hong Kong, China's 
proposal presented at the June meeting.   
198. With due respect to the mandate that negotiati ons shall aim to clarify and improve relevant 
aspects of Articles V, VIII and X of the GATT 1999 4, HKC's proposal on Article VIII aimed to put 
Article VIII:1(c) into action, as explained in HKC 's submission TN/TF/W/31, and as listed in sections 
G and H of the Secretariat's revised compilation.  The proposal in fact copied most of Article 
VIII:1(c) and removed the phrase "recognize the need fo r".  It advanced the key principle for TF and 
provided a stronger basis for TF endeavours.  It was HKC's top priority to reinforce basic GATT principles in the negotiations, but that did not mean  that HKC did do not want to have other specific 
elements in the final outcome.  HKC in fact suppor ted almost all other proposals for specific elements 
and measures submitted by other Members as they would clearly bring benefits to world trade.  In 
view of the number and variety of proposals as c ontained in the Secretariat's compilation, HKC 
simply saw no need to duplicate the work of other Members.  
199. Regarding HCK's proposal on Article X (TN/TF/W/ 32) and also listed in the Secretariat's 
compilation in sections A and C, paragraph 1(a) set ou t the general principle.  It did not preclude the 
use of multiple media.  Paragraph 1(b)(i) provided for electronic publication.  HKC envisaged that 
even with paragraph 1(b)(i) in force, publication in printed media should still follow paragraph 1(a).  
HKC also envisaged, as explained in the last s ection of its submission, that TA and longer 
implementation periods might be provided for el ectronic publication under paragraph 1(b)(i).   
200. The notification requirement in paragraph 1(b)( ii) was proposed to cover the means to access 
the information published electronically.  HKC atte mpted to make that paragraph technologically 
neutral; hence, there was no direct mention of the in ternet or of a website.  It referred to the addresses 
of the relevant websites of individual Members.   
201. HKC welcomed India's idea of publishing the links to those notified websites.  In fact, the 
current WTO website dedicated one page to each  of its Members.  The HKC page on the WTO 
website already had a link to its Trade and Industry Department website, which provided, inter alia , 
comprehensive information relating to HKC's import and export control.  For India, the page had a 
link to the Ministry of Commerce and Industry website.  Even at present, a Member could set up a 
link to its electronic publication website on the dome stic website to which the WTO website linked.   TN/TF/M/7 
Page 30  
 
 202. The representative of Japan
 replied to questions raised with respect to the Japanese 
submission.  As for El Salvador's enquiry about Japan's experience in maintaining its sound border  
control while advancing speedy clearance, as referred to  in paragraphs 6 and 7 of Japan's paper, the 
challenge for Japanese customs and other agencies was how to cope with an increased volume of 
trade.  Japan had greatly benefited from global trad e with the volume of trade having been increased 
notably.  Japan had also had some kind of sound co mpetition with its neighbouring countries.  Being a 
hub port in East Asia, it had been necessary to upgrade Japan's risk management system to enable it to 
handle the high volume of trade while maintaining proper customs control.  That was a never-ending 
challenge, and a challenge which had arisen in recent years.   
203. With respect to Sri Lanka's enquiry concerni ng Japan's paper on pre-arrival examination, 
Japan wished to inform that, unlike the Sri Lanka n regime, Japan did not require any delivery order 
when issuing a permit after receiving the formal im port declaration.  The reason for that was that 
Japan had other systems which could confirm the location and movement of the actual cargoes in Japan's ports.   
204. The representative of Uganda
 wished to briefly respond to the comments by the Philippines 
regarding Uganda's joint proposal with the US on consularization.   
205. Uganda wished to express disappointment and surprise about those co mments.  As Uganda 
continued to attempt to understand what had prompted that critique, particularly in view of the 
otherwise positive reception the proposal had r eceived so far, the Ugandan delegation found it 
difficult to understand the justification for the rete ntion of consularization on the basis that some 
goods were probably meant not to leave the exporting country.  In Uganda's experience, the practice 
was quite different.   
206. The proposal to remove consularization on an autonomous, best-endeavour basis defeated the 
purpose of that exercise, watered down predictability and did not help in reducing costs for SMEs.   
207. The representative of the Philippines  replied to the question from Uganda, saying that the 
questions posed by the Philippines in JOB(05)/159 on the Uganda proposal had not meant to be 
criticism.  Rather, the intention had been  to better understand their proposal.   
208. The representative of Argentina  said that continuous work on the compilation was of 
tremendous importance for Members' work.  Argentina also appreciated that ot her cross-cutting issues 
were included.  Argentina further wondered whet her the compilation could not also include national 
experience papers.  Some focused on a particular  article and could therefore easily be included 
whereas others were less specific, with Argentin a not being sure how they should be included.  
Should they simply be labelled as national experience papers?  Arge ntina wished to discuss how those 
documents could be included.   
209. The representative of Chile  said that Chile had a number of concerns regarding the Swiss 
proposal, supported by Argentina, regarding an expa nsion of the compilation to also include national 
experience papers.  The compilation had to be a document that would help Members understand the 
proposals.  Inclusion of the national experience papers would make the compilation a very heavy 
document, and one that would be less easy to use.  It was useful to have those national experience papers as they showed to what extent Members c ould use certain suggestions, but including them in 
the compilation was not the proper way forward.   
210. The representative of Canada
 said that the revised compilation was an extremely useful 
document that could be used in future meetings as a basis for proceeding on the various issues to 
discuss how one might develop specific commitments on trade facilitation.  Picking up on the point 
raised by Switzerland about national experiences, Cana da wished to suggest that, instead of trying to  TN/TF/M/7 
 Page 31 
 
 
 incorporate those detailed papers into the compila tion document, those types of interventions were 
made orally while going through each of the issu e areas in order to further discuss them.   
211. The representative of Chile  wished to clarify some of the doubts raised at the last meeting 
with respect to the communication by the Latin Am erican countries on links between the elements of 
Annex D on behalf of the sponsoring countries .  The link between the Annex D elements was a key to 
the needs and priorities to be identified through a sy stem of self-assessment.  It was for that reason, 
and in order to respond to a number of questions, that the sponsors of the paper had decided to explain 
further exactly what they meant by the pr ocess of self-review or self-assessment.   
212. The identification of needs and priorities require d a process of self-review or self-assessment 
that had to be dynamic and on-going.  Dynamic on the basis of the objectives that were at the 
forefront of the negotiations and on-going because it would not only  take place during the process of 
the negotiations but also after its conclusion.  De veloping counties and LDCs could carry out that 
process by requesting technical assistance, if require d.  During the period of negotiations, the self-
assessment process would be on the basis of the prog ress made in the NG.  That process would have 
different objectives, depending on the particular mome nt or stage at which the negotiations stood.  In 
that context, in the initial stage of submitting proposals, the objective would be to carry out a 
diagnosis.  The proposals had identified various asp ects of Articles V, VIII and X of GATT 1994 that 
were suggested as important to consider during the negotiations.  But it was not yet clear what exactly 
the scope of that would be.  In that context, th e objective of the self assessment would be to compare 
the actual situation of each Member with those asp ects that had been identified.  There should be 
diagnosis or a snapshot of the current situation that would enable Members to determine (i) those 
elements and measures already identified and already being applied by Members, as well as the way 
in which they were being applied, and (ii) those elements and measures that had been applied.   
213. From those which had not been applied, one had to determine which Members were actually 
interested in applying them, those which would be interested in applying them but did not consider 
them to be a priority, and those which would have no  interest in applying them for reasons that might 
include legal or security issues, or others.  In a subsequent negotiating phase, which would be the 
definition of the scope of the disciplines, there woul d be much more clarity as to how to clarify and 
improve the provisions of Article V, VIII and X.  Once Members had that greater clarity regarding those details, the self-assessment would help to determine (i) which aspects and measures were consistent with the scope and structure of the pro posals, (ii) which were being applied, but in a 
different fashion or included different elements , and (iii) whether and where there would be 
difficulties in application.  That would help to improve Members' participation in the process of 
defining the scope of the disciplines.  It was hoped that by the time the nego tiations became specific, 
Members would have already defined their proven capacity, and that they would know what had 
already been applied and whether they would need  additional time, technical assistance or capacity 
building in order to apply the negotiated commitments.   
214. During a post-negotiation period, the self assessm ent process would depend on the results of 
the outcome of the negotiations.  While it was difficu lt to describe at the moment, if one assumed that 
certain commitments would be subject to the ap plication of deadlines, then the self-assessment 
process should help to evaluate the application of  the commitments and the TA&CB already carried 
out.  That would then develop further when there wa s greater clarity with respect to the actual results 
of the negotiations and the form that the commitments would actually take.   
215. As for the questions regarding the mechanism pr oposed in paragraph 15, that mechanism also 
had to be both dynamic and on-going.  It should be established over time.  It was quite likely that the 
key role it would play would come about in the post-negotiation period.  However, it was still too 
early to draw any conclusions on that subject.   TN/TF/M/7 
Page 32  
 
 216. The representative of the Philippines
 wished to revert to the earlier discussions about the 
Secretariat compilation and what to do with it.  As already mentioned by the Philippines earlier on behalf of the Core Group, the Core Group found th e compilation to be a very useful and valuable 
working document for the NG's future work.   
217. The representative of Mexico
 said that, since the beginning of the negotiations on trade 
facilitation, there had been an intense exchange of proposals among Members on possible alternatives 
that would enable international trade to grow s ubstantially and take place more smoothly, it being 
understood that the development of freer multilateral trade relations w ould implicitly lead to more and 
better opportunities for the developing and least-develope d countries to integrate more efficiently into 
the world economy.  That would help to strengt hen the synergies between them and with the 
developed countries in the production area, and woul d lead, in turn, to an  increased capacity to 
generate new business opportunities, ultimately enab ling them to boost their production, investment, 
and employment as a prerequisite to improving their welfare.   
218. The various presentations by Members had re vealed a considerable amount of common 
ground on the general issues of importance to the achievement of progress in creating better 
conditions for an increase in trade flows.  At th e same time, certain Members contributed to the 
negotiating process by presenting, in greater detail,  more specific objectives to be pursued through 
trade facilitation measures based on their individual experience or the common practices of a group of Members.  And in spite of the greater specificity of these presentations, there was also a certain amount of common ground as to the particular objectives that Members had been able to achieve, perhaps with slight variations as regards the speci fic measures implemented owing to the differences 
in their particular development status.   
219. Alongside the discussions and ongoing analysis of the contributions of Members, participants 
also addressed, in a variety of ways, the need to  ensure the supply of TA&CB essential to the proper 
implementation of TF measures.  In the course of that exchange of ideas, certain Members already 
identified some of their specific needs and prioritie s, while others discussed  the efforts they were 
currently making in the TA&CB area.  The internatio nal organizations also contributed, describing the 
programmes and activities currently under way to support the implementation of trade facilitation 
measures.  In spite of the progress mentioned earlier,  it was possible that the various alternatives for 
addressing needs and priorities of Members that might  require assistance would be easier to define as 
Members progressed in identifying the possible discip lines to be considered for any agreement on TF.   
220. The depth of the discussions on the various proposals and ideas submitted by Members from 
the outset of the negotiations and the common ground  that had emerged at the various levels of 
discussing TF issues, objectives, and m easures suggested that there was a critical mass that could be 
used to help in identifying the di sciplines that tentatively might form  part of an agreement.  That 
would not prevent Members from continuing their an alysis and exchange of ideas with a view to 
defining the level and scope of those disciplines or of any others that might be identified 
subsequently.   
221. The identification of possible disciplines might be a good way of pursuing the substantial 
progress made in the negotiations in that it would provide Members with the following advantages:  
(i) Members would have a clearer basis for assessing,  in greater detail and individually, where they 
stood vis-à-vis  the conditions for achieving the implementati on, where appropriate, of the disciplines;  
(ii) Members would be able to consider more precisely the particular areas where there might be a 
need to request TA&CB support;  (iii) Members woul d also have more elements at their disposal 
when it came to exploring more specifically the po ssible alternatives for ensuring that TA and support 
for CB was provided to Members that needed it.  That , in turn, would help to provide a better idea of 
the form that S&D treatment could take according to the degree to which it was possible to provide 
TA and support for CB;  and (iv) Members would have more information and elements at their  TN/TF/M/7 
 Page 33 
 
 
 disposal to discuss the scope and level that could be established for each one of the possible 
disciplines considered.   
222. The identification of possible disciplines would be an ongoing process which, on the basis of 
feedback that would be conducted in the light of  the above-mentioned advantages, would lead to a 
more dynamic process of analysis that could, in turn, help produce a clearer idea of what an 
agreement on TF could look like in its initial form.   
B. TECHNICAL ASSISTANCE AND CAPACITY BUILDING  
223. The discussions under this agenda item generally took place in informal mode , with the 
exception of the following parts:   
224. The representative of Morocco  said that it was important to recall that modalities for 
negotiations on Trade Facilitation contained a str ong commitment by Members, in particular 
developed countries, to provide technical assistan ce and support for capacity building to enable 
developing and least-developed countries to par ticipate in and benefit from the negotiations.   
225. The communication of the African Group, which had been circulated as document 
TN/TF/W/56 attempted to put forward some ideas on how technical assistance and capacity building 
could be operationalized.  Some of these ideas were  not new as some Members had also alluded to 
them in previous discussions on technical assistance.   
226. As far as the process of the identification of the needs and priorities of individual Members 
was concerned, the African Group would like to suggest a revision of the WCO Self Assessment 
Checklist to make it simpler and in conformity with  the scope of the negotiations and to cover not 
only customs issues but also all formalities and pr ocedures related to impor tation, exportation and 
transit in line with GATT Articles V, VIII and X.  That would assist Members in identifying their 
needs and priorities falling within the scope of the negotiations.   
227. Further, the African Group was proposing a compilation of needs and priorities identified by 
different Members.  That compilation, which shoul d be continually updated, as appropriate, would 
serve as a useful reference by those Members, organizations and other donors willing to provide 
targeted assistance during and after the negotia tions.  Assistance should be extended to those 
Members having difficulties in identifyi ng their needs and priorities.   
228. Regarding the training and educative process, the African Group welcomed the support so far 
extended by the WTO, individual Member countries, and other organizations for the clarification and 
educative process, including training of customs offi cials, with respect to GATT Articles V, VIII and 
X.   
229. The African Group believed that that kind of s upport should be enhanced both at the national 
and regional levels in order to facilitate the participation of de veloping and least-developed countries 
in the negotiations.  The African Group encouraged  individual Members and organizations expected 
to support these activities to come forward and give their indications in order to trigger requests by 
those Member countries in need.   
230. Furthermore, the clarification and educative process should contribute to the negotiations 
through factual reporting of the outcome of semina rs/workshops by the relevant organization during 
the meetings of the NG.   
231. As recognized in Annex D of the July 2 004 Framework, coordination among relevant 
international agencies and donors in the provision of TA&CB was important during and after the TN/TF/M/7 
Page 34  
 
 negotiations, particularly where TF measures require d support for infrastructural development.  The 
importance of coordination had also been mentioned in the note by the WTO Secretariat on TA&CB on TF (TN/TF/W/5).   
232. While the modalities for negotiations on trad e facilitation alluded to coherence and a 
collaborative approach among international organiza tions providing technical assistance in that area, 
their specific role with regard to implementation of  the needs and priorities of developing and least-
developed countries needed to be clarified in orde r to ensure complementar ity.  Accordingly, the 
African Group urged Members to consider the idea of establishing a coordination/collaborative mechanism or building upon any existing mechanism involving various partne rs engaged in trade 
facilitation in order to enhance synergies and to ensu re efficient use of available resources.  Such 
mechanism should ensure that the needs and priorities with respect to trade facilitation identified by 
developing and least-developed countries were addressed  effectively, that available resources would 
be efficiently used, and that there would be long-term sustainability of technical assistance 
programmes.   
233. The African Group underscored the importance of  TA&CB for an effective outcome in trade 
facilitation, and also wished to highlight that the contribution of TF measures to the multilateral 
trading system could be enhanced if Members eff ectively addressed other non-tariff barriers affecting 
the flow of trade both in goods and in services.   
234. The representative of Guatemala
 expressed her delegation's appreciation of the Regional 
Workshop on TF held by the WTO, UNCTAD, the World Bank and the WCO in Guatemala City from 27 June to 1 July with the participati on of Costa Rica, Cuba, the Dominican Republic, 
El Salvador, Guatemala, Honduras, Nicaragua and Panama.   
235. A very important and positive feature to be empha sized with regard to participation in the 
event was that it gave the Geneva-based delegates responsible for the negotiations the opportunity to 
participate.  That, together with the participa tion of capital-based delegates responsible for the 
negotiations and customs agents involved in the a pplication of TF measures, gave impetus to the 
event that was very valuable with a view to form ing and, in the cases where they already existed, 
strengthening national trad e facilitation teams.   
236. The event focused on the context of the nego tiations and the negotiating mandate for trade 
facilitation – Annex B.  Presentations were made  on Articles V, VIII and X of the GATT 1994, 
accompanied by group exercises in order to identif y barriers to trade in goods, including goods in 
transit, resulting from the application of border prac tices and procedures.  A detailed review was made 
of certain proposals relating to Articles V, VIII, and X of the GATT 1994.  Emphasis was also placed 
on the importance of such issues as SDT and TA&CB.   
237. One of the most valuable aspects of the workshop was the work to strengthen national 
negotiating positions and examine the functioning of  the negotiating process in Geneva and the degree 
of support required from the capitals.  The second part of the event, directed by the World Bank with 
the support of the other organizations present, was de voted to the application of the Support Guide for 
the WTO Negotiations on Trade Facilitation.   
238. There was also discussion, with regard to the Central American countries, of the support that 
the Permanent Secretariat of the General Treaty of  Central American Economic Integration (SIECA) 
is providing for the application of trade facilitati on measures in the region.  Another issue discussed 
was the role of the private sector in trade f acilitation.  A presentation was made on Guatemala's 
experience with the One-stop Export Office.    TN/TF/M/7 
 Page 35 
 
 
 239. The representative of the World Customs Organization (WCO) gave a very useful 
presentation on the WCO's instruments and standards on trade facilitation and, with the participation 
of UNCTAD, analysed, inter alia , the assessment of needs and the auto mation of customs facilities.   
240. Exercises were carried out in groups for the presentation of the results of the review of 
proposals by the participants, the identification of factors critical for success in the negotiations and 
the analysis of the actors (users) of internationa l trade in each country.  The experiences of other 
countries, such as Jamaica and Uganda, were also  presented.  Finally, there was discussion of the 
steps and national plans of action to continue th e negotiating process in Ge neva, although the course 
and implementation of that process obviously remained in the hands of each of the countries.   
241. The workshop was very valuable and successf ul and would bear fruit, which would be 
reflected in the work of the NG.   
242. The representative of Honduras  thanked the WTO, the World Bank, the WCO and UNCTAD 
and the donor countries for having facilitated the par ticipation of several delegates from the Geneva 
missions in the workshop, as well as the government  of Guatemala for the hospitality provided.   
243. The workshop had provided the opportunity to  share experiences with senior customs 
administrators and those responsible for the nego tiations on trade facilitation.  The programme was 
varied with the activities covering several issues, in cluding an explanation of the negotiating process 
in Geneva and of the various proposals concerning Ar ticles V, VIII and X of the GATT.  In addition, 
groups were formed with a view to reviewing the proposals and to identifying each country's position 
on those proposals, with the participants also bei ng asked to identify certain barriers to trade.   
244. The most valuable feature of the event was th e impact it had on the officials of each country 
in making them aware of the importance of the discussions taking place in Geneva.  The workshop 
helped provide them with the means for forming nati onal groups to follow-up this issue with a view to 
analysing the proposals and providing feedback to  the delegates responsible for the negotiating 
process in Geneva.   
245. The representative of El Salvador  said that the Regional Workshop on Trade Facilitation held 
in Guatemala from 27 June to 1 July 2005 had given El Salvador's representatives the opportunity to 
hold in-depth discussions on a number of issues, incl uding:  (i) the proposals put forward by Members 
concerning Articles V, VIII and X;  (ii) technical assistance, capacity building and special and differential treatment;  (iii) actions taken by vari ous international organizations in the field of 
cooperation;  and (iv) existing suppor t mechanisms for the negotiations.   
246. El Salvador believed that such activities not only helped to strengthen the work carried out by 
national trade facilitation institutions, but also cont ributed to the coordination between capitals and 
their Geneva missions in the framework of the current negotiations.   
247. The representative of the OECD
 informed Members of its current  work on trade facilitation.  
The OECD Development Assistan ce Committee (DAC), which regrouped 22 major bilateral donors 
as well as the EC, had recently initiated a project th at aimed to strengthen the design, delivery and 
evaluation of trade facilitation-related technical assistance and capacity-building programmes, in a 
way that was consistent with the Paris Decl aration on Aid Effectiveness (2005) and other DAC 
guidelines, including the DAC Guidelines on Strengthening Trade Capacity for Development (2001).  The project would complement the research on trade facilitation carried out by the OECD Trade Committee and would be undertaken in coordination with other international organizations, such as 
WCO, UNCTAD and the World Bank.   TN/TF/M/7 
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 248. The project should as such indirectly contribute to the delivery of commitments included in 
Annex D of the WTO "July Package".  It was primarily being undertaken in light of (1) the important positive impact trade facilitation could have on development and poverty reduction;  (2) the 
increasing aid commitments targeted at supporting trade facilitation reform, and (3) the numerous technical assistance and capacity-building commit ments included in the WTO "July Package".   
249. The project would deliver two distinct outputs:  In a first phase, running from July to 
December 2005, a review of past development a ssistance efforts of bilateral donors and multilateral 
agencies in the area of trade facilitation would be  undertaken.  That review would be conducted 
through a desk study, which would comprise four parts.   
250. First, a quantitative analysis – showing, for the 2001-2004 period, the main trends in aid 
volume; the main donors and beneficiary countries, aid delivery modes (bilate ral versus multilateral), 
as well as the geographical distribution of trade facilita tion-related aid.  The analysis would rely on 
data reported to the WTO/OECD TCBDB and the OECD Creditor Reporting System (which, among 
others, monitors aid targeted at infrastructure development). 
251. Second, it would include a mapping of existing don or expertise – aiming to distinguish which 
donor or international organization sp ecialises in what type of trade facilitation related assistance, if 
any (e.g., training of officials;  automation).  The mapping would also list and describe existing 
instruments designed by different organizations, fo r example, trade facilitation diagnostic tools and 
performance indicators.  The quantitative analysis an d mapping should thus help provide an inventory 
of support provided so far.   
252. Third, a qualitative analysis would be undertaken.  It would identify factors that had 
contributed to success (or failure) of past developm ent assistance programmes.  More specifically, it 
would examine factors that had contributed to in creased relevance, efficiency and effectiveness of 
donor assistance, by looking at a sample of past  TA&CB programmes.  The qualitative analysis did 
not aim to be a thorough evaluation of past deve lopment assistance programmes.  Rather, it aimed to 
identify and share lessons regarding past experience with development assistance in the area of trade 
facilitation.   
253. Finally, the study would summarize lessons learned and conclusions drawn.   
254. In a second phase, running from January 2006, th e lessons learned would be further refined 
and tested through field research (interviews) a nd consultations with partner countries and other 
international organizations that had undertaken releva nt work in the area, with a view to producing a 
good practices paper for strengthening trade facilitati on-related capacities in partner countries.  The 
paper mainly aimed to identify how donors and reci pients could best work together to strengthen 
sustainable capacities to implement trade facilitation measures.   
255. That second phase aimed to bring together development assistance practitioners, trade and 
customs officials and private sector representatives in OECD and partner countries involved in trade facilitation.   
256. The representative of UNCTAD
 reported on TA&CB activities carried out by UNCTAD.  
Those activities were financed by the Trust Fund supported by the Governments of Sweden and Spain.   
257. The main objective of that Trust Fund was to help Geneva- and capital-based negotiators 
from developing countries and from least-develope d countries to better understanding the scope and 
implications of the negotiated measures, in the context of Annex D of the July Package.    TN/TF/M/7 
 Page 37 
 
 
 258. Activities under that Trust Fund covered:  (i) The organization of ad-hoc brainstorming 
sessions on WTO negotiations on Trade Facilitation fo r Geneva-based delegates.  Two such sessions 
were organized in March and May 2005.  Similar events woul d be organized on request from groups 
of delegations.  (ii) The organization of re gional workshops on WTO negotiations on Trade 
Facilitation, with cooperation from the WCO.  Two such workshops were organized respectively in 
Bangkok (Thailand), with ESCAP, in May 2005, and in Lusaka (Zambia), with COMESA, in June 
2005.  Other workshops would be organized in the near future, for Least-Developed and Landlocked 
Developing countries in Asia, in Geneva, on 26 Se ptember 2005; and for French-speaking LLDCs in 
West Africa, in the Autumn.  (iii) The partic ipation of Geneva-based delegates from developing 
countries and UNCTAD staff in regional workshops or ganized jointly with WTO, in the context of 
the WTO technical assistance programme.  One such event had been conducted in Guatemala, at the 
end of June 2005;  two others we re scheduled for early August for South American countries, in 
Buenos Aires, and for French-speaking African co untries in mid-September, in Tunis.  (iv) The 
participation of Geneva-based delegates from LLDCs and UNCTAD staff in a Round-table on Trade 
Facilitation organized as part of the meeting of Trade Ministers of LLDCs scheduled for 9-10 August 
in Asunción.  That Ministerial Conference would fo cus on the Doha Round of trade negotiations, in 
preparation for the WTO Conference in Hong Kong.   
259. The Trust Fund also covered the elaboration of information material on some tabled measures 
to be made available for general distribution in Sept ember.  Using the format of technical notes, that 
material summarized, based on available experiences, the implication of the measure in terms of human and financial resources, time required for implementation, prerequisites, sequencing of 
measures, etc.   
260. With respect to the issue of Single Window operations, UNCTAD wished  to remind delegates 
that there were more than 100 trade points operating in  90 countries.  The concept of trade points had 
been developed by UNCTAD.  A trade point was a trade facilitation centre,  established as a public-
private partnership within Governmental or priv ate sector institutions.  It provided trade-related 
information and introduced the use of electronic co mmerce technologies, with a view to enhancing the 
competitiveness of small and medium-sized ente rprises.  Those 100 trade points were regrouped 
under the World Trade Point Federation (www.tradepoi nt.org).  The functionalities of a trade point 
were relevant to Single Window ope rations and might include an enquiry point facility.  In a number 
of countries, the trade point provided information on applicable trade regulations and could therefore 
serve as a tool towards the implementation of an improved Article X.   
261. Regarding risk assessment techniques, UNCTAD wi shed to recall that the Automated System 
for Customs Data (ASYCUDA), developed by UNCTAD, incorporated several key Customs functions such as: management of Customs cleara nce process, selective examination practice based on 
risk analysis, monitoring of transit procedures, use of international standards in relation with 
documents (UN Layout Key) and with Electronic Da ta Interchange.  All those aspects were closely 
linked to the review, clarification and improvement  of Articles V and VIII.  A document had been 
deposited indicating the countries where that system was present and providing a brief description of 
the main features of the system.   
262. With respect to the points by Switzerland on c oordinated and collaborative efforts in Trade 
Facilitation, UNCTAD wished to recall that, since th e Doha Ministerial Conference, the Heads of UN 
agencies, through the High Level Committee on Prog rammes, had requested coordination among UN 
agencies in the area of Trade Facilitation.  That request had led to the organization of six Inter-
Agency meetings, the next one planned for Septembe r 2005, in Geneva.  Delega tions were invited to 
take note of the coming meeting of the Global Fac ilitation Partnership for Trade and Transport (GFP), 
on Tuesday 20 September, as well as of the UNC TAD Expert Meeting on Trade Facilitation on 
20-23 September, and the Regional Workshop for LLDCs in Asia on 26 September 2005. TN/TF/M/7 
Page 38  
 
 263. The Chairman
 wished to share his sense that th e NG was making progress in the area of 
TA&CB.  Members now had a clearer idea of the importance of TA&CB as well as on how to move 
forward on that issue.  The paper by the African Group was notable.  Members had to work further on the idea of a coordination mechanism, taking into account Members' comments on the need not to have duplication and not to create a "monster".   
264. With respect to the way forward, he would like to propose that the full version of the 
Secretariat's draft questionnaire be made availabl e to delegations, as requested by a number of 
Members, to assist delegations in their needs ass essment.  In respect of the proposed website, the 
intention was to live up to the commitment that  technical assistance was available during the 
negotiation process, in addition to assistance provided at the implementation stage, and to respond to 
the concern that there should not be an expensive mechanism and not something that would take time 
to put in place.  Of course, the success of that  website would depend on whether there were inputs 
from Members.  Japan had already put up what progr ammes they had in place and if other Members, 
other donors, were prepared to do so as well, thei r contributions would equally be uploaded on that 
website.  There would also be links to the relevant international organizations that had activities in the 
TA&CB area.  Those were his main proposals with resp ect to next steps in the work on TA&CB.  If 
there were no objections, one w ould proceed on that basis.   
C. A
D HOC ATTENDANCE OF RELEVANT INTERNATIONAL ORGANIZATIONS , INCLUDING THE 
IMF,  OECD,  UNCTAD,  WCO  AND THE WORLD BANK, AT THE NEXT MEETING OF THE 
NEGOTIATING GROUP  
265. The Chairman  suggested inviting relevant internati onal organizations, including the IMF, 
OECD, UNCTAD, WCO and the World Bank to a ttend the next meeting of the NG on an ad hoc  
basis, as provided for in the Work Plan.  
266. It was so agreed . 
D. OTHER BUSINESS  
267. The Chairman  raised the issue of the Group's next m eeting and the plan for the road ahead.  
As the indicative list of dates shared with delegations  last November only extended to the July period, 
and there was need to plan ahead  for the coming months to allow for optimal preparations, he had 
asked the Secretariat to enquire about meeting fac ilitates for the time up to the final General Council 
meeting before the Hong Kong Ministerial Conferen ce.  The information they had provided him with 
was that rooms would be available for meetings  on 19-20 September, 5-6 October, 8-9 November, 
and 21 November.   
268. Clearly, an important aspect of the NG's work in the autumn would be the preparation of the 
Group's report to the Hong Kong Ministerial via the General Council.  At the same time, and following on from Ambassador Teehankee's statement on behalf of the Core Group at the beginning 
of the meeting, there was need to allow plenty of  time in the autumn meetings for further assessment 
of all of the proposals that had been tabled, existi ng ones and any new ones that might still come in, as 
well as linkages to TA&CB and the broader issues of  S&D.  Following the comments that many 
delegations had made at the present meeting, it was s uggested to do that on th e basis of the Secretariat 
compilation.   
269. What he would like to suggest was that the NG planned on holding some of its autumn 
meetings in an open-ended, informal setting, to allow Members to discuss the proposals among 
themselves openly and frankly and to make as much progress as possible in covering all elements of 
the substance of the mandate.  If Members agreed , the NG could plan on having its meeting on 
19-20 September in an informal mode, focussing on making progress in the examination and  TN/TF/M/7 
 Page 39 
 
 
 assessment of the proposals on the table with regard to all 3 objectives set out in the mandate.  One 
could then plan on having the next meeting on 5-6 Oc tober, in part, at least, in a formal mode, to 
allow delegations to make any statements they might wish formally for the reco rd.  The rest of that 
meeting of 5-6 October could then be used to pick  up again the informal discussions on the proposals 
on the table.   
270. He would not want to forecast what might best suit Members in November, other than to let 
delegations know the dates available.  Members could decide on that in October, in light of how well 
the discussions were proceeding by then.   
271. To sum up, he would therefore propose for the Gr oup to meet next in open-ended, informal 
mode on 19-20 September, and in formal mode, in part at least, on 5-6 October.   
272. It was so agreed . 
 
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