. /.  WORLD TRADE  
ORGANIZATION  TN/TF/W/21 
21 March 2005 
 
 (05-1198) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM THE UNITED STATES 
  
 The following communication, dated 18 Marc h 2005, from the Delegation of the United 
States, is being circulated in advance of the Negotiating Group meeting of 22-24 March. 
 
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RELEASE OF GOODS 
 
I. PROPOSAL 
X Maintain a system by which goods may be relea sed from the custody of customs before final 
payment of duties or resolution of customs matters (such as classification or customs 
valuation), utilizing as necessary a guar antee as a surety, bond, or deposit.  
 
II. IMPROVEMENT AND CLARIFICATION 
1. This proposal would bring about one of the mo st significant improvements to Article VIII of 
GATT 1994, providing for greater efficiency that can benefit both the trade as well as customs administrations.  Strengthened commitments aimed at  enhancing the efficient release of goods are at 
the core of these negotiations, given the dema nds of today's just-in-time global economic 
environment. 
2. Delays in receiving goods due to customs clearance are a significant matter of concern for any 
company – particularly a small enterprise operati ng under the demands of a today's just-in-time 
economic environment.  At the same time, from the perspective of a customs administration, as long as payment of duties can be guaranteed, the physical  custody of goods is unnecessary, and can be 
merely obstructive and impose an unnecessary burden on managing inventory while issues related to 
classification and valuation remain unresolved. 
3. There is precedent for such a WTO commitment, although in a more narrow context.  Under 
Article 13 of the Customs Valuation Agreement, Me mbers are to make provision for goods release in 
the event of delays in the final determination of customs value. 
III. EXPERIENCE 
4. A number of Members use guara ntees such as a bond, deposit, or surety which allow for 
goods to be released even while  certain issues may be pending.  The United States has a release 
system in place for the physical release of goods inde pendent of the collection of duties and the fixing 
of value, classification, and, in certain circumst ances, admissibility matters.  Under such a system, 
upon the arrival of goods an importer may file an entry and release form, which applies for the release 
of goods from customs custody, and is required to have  surety or guarantee for the payment of duties.  
The surety will be obligated pending the resolution of admissibility, tariff classification, and value TN/TF/W/21 
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issues, and the surety is the instrument that cu stoms holds as a guarantee of compliance with customs 
laws –  rather than maintaining physical custody of the goods.   
IV. COSTS 
5. Transition costs will vary between Members, and further exploration is needed to assess 
individual situations.  There may be a need to establish a legal framework for such a system, along 
with the possible need for redirecting administrativ e resources.  Each situation will likely not be a 
matter of significant financial expenditure. 
V. SPECIAL AND DIFFERENTIAL TREATMENT 
6. Diagnostic tools should be utilized to assess the unique situation of each individual Member 
regarding implementation of the proposed commitmen t.  Such an undertaking can identify needs and 
priorities, and lead to appropriate and workable transition periods combined with assistance targeted 
at individual situations.  The United States looks  forward to working with Members during the 
negotiations to obtain more specific assessments of  individual Members’ situation related to this 
proposal. 
VI. TECHNICAL ASSISTANCE AND CAPACITY BUILDING 
7. The United States has experience in providing assistance toward the establishment of a 
release system consistent with the proposal, and is  interested in obtaining further information from 
others, including International Or ganizations, that may have experience in providing assistance related 
to establishing release systems consistent with this proposal. 
VII. PROPOSED NEXT STEPS IN THE NEGOTIATIONS 
Χ Members work together to refine elements of co mmitments related to maintaining a system 
that provides for release of goods prior to final payment of duties or resolution of other legal 
matters. 
 
Χ Drawing upon as appropriate the work of In ternational Organizations, Members undertake 
country-specific diagnostics regarding implemen tation of the proposal.  Results would 
include an assessment of possible tasks, time line, and resources necessary for each 
particular Member to achieve effective implementation.. 
 
Χ Members exchange experiences on implementation and technical assistance, and develop a 
path by which every Member can ultimately ac hieve full implementation of the proposed 
commitment. 
 
 
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