WORLD TRADE  
ORGANIZATION  TN/TF/W/62 
19 September 2005 
 (05-4109) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
 
COMMUNICATION FROM THE SEPARATE CUSTOMS TERRITORY OF  
TAIWAN, PENGHU, KINMEN AND MATSU 
 
  The following communication, dated 16 Sept ember 2005, from the Separate Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, is  being circulated in advance of the Negotiating 
Group meeting of 19-20 September 2005.   
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ESTABLISHING A LONG-TERM MECHANISM  
ON TRADE FACILITATION MATTERS 
  
I. INTRODUCTION 
1. We all recognize the potential benefits of trade f acilitation measures, especially for small- and 
medium-sized enterprises, but there remain two diffi cult issues associated with the implementation of 
these measures, to which Members need to find a l asting, long-term solution:  (1) the provision of 
technical assistance and capacity building, and (2) the use of international standards.  It would be 
difficult, for example, for some Members to make  any commitment if they are not sure whether 
sufficient technical assistance will be provided, esp ecially beyond the negotiations phase.  Likewise, 
Members may not be able to implement internationa l standards if they are in any doubt about the 
specifics of these instruments.  This paper is intende d to contribute to Members’ current deliberations 
on a lasting mechanism that can be put in place to d eal with relevant matters on the subject of trade 
facilitation over the long term.   
II. TECHNICAL ASSISTANCE AND CAPACITY BUILDING 
2. Technical assistance and capacity building for developing and least-developed Members  is a 
critical element of the negotiations on trade facilitation.
1  The point cannot be over-emphasized that a 
successful conclusion to these negotiations hinges upon whether the amount of technical assistance 
and capacity building sufficient to the needs of these Members can actually be provided.  In this 
context, Members have agreed to  review the effectiveness of the support and assistance provided, and 
to evaluate its ability to implement what is agreed in the negotiations.2   
                                                      
1 Paragraph 1 of Annex D requires that "Negotiations shall aim to clarify and improve relevant aspects of 
Articles V, VIII and X of the GATT 1994 with a view to  further expediting the movement, release and clearance 
of goods, including goods in transit.1  Negotiations shall also aim at enhancing technical assistance and support for capacity building in this area…". 
2 Paragraph 7 of Annex D. TN/TF/W/62 
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 3. Previous contributions from Members are a useful source of ideas on how to ensure the 
effective provision of technical assistance and capacity building in the long term.  For example: 
(a) The EC has recommended that "the WTO and ot her organizations (the World Bank, WCO, 
UNCTAD, and others) should well in advance of  the implementation of the results of the 
negotiations, establish and operate jointly a platform for international cooperation and 
coordination of technical assistance in the field of trade facilitation…" (TN/TF/W/46). 
(b) At the meeting held in June 2005, the United St ates informally raised the question of whether 
Members should now commence an examination of what type of surveillance would be most 
appropriate to monitor support and assistance th at will be provided to help developing and 
least-developed countries implement the comm itments resulting from the Trade Facilitation 
Negotiations.  The United States also queried whether Members could perhaps consider 
exploring an informal open-ended "steering comm ittee" or "task force" type of approach, to 
inform the NGTF of work on technical assistance  and contribute to keeping such work on a 
practical, problem-solving path. 
(c) India has also informally suggested "a possi ble mechanism for making available technical 
assistance under Annex D".  Paragraph (v) of I ndia’s paper suggests "members could identify 
their needs of technical assistance and capacity building in a particular area and approach the 
NGTF (during the negotiations) or the relevant committee dealing with trade facilitation 
(upon completion of the negotiations) which would en sure that the need fo r such assistance is 
adequately met by discussing with Members that ha ve expertise in that field and in relevant 
cases, also coordinate with relevant multilateral agencies". 
(d) The African Group also urges Members to consider the idea of establishing a 
coordination/collaborative mechanism or bui lding upon any existing mechanism involving 
various partners engaged in trade facilitation in order to enhance synergies and ensure 
efficient use of available resources.  The African Group also suggests that there should be 
long-term sustainability of technical assistance programmes (TN/TF/W/56). 
4. We believe that the establishment of such  a mechanism, as proposed, would be, amongst 
other things, the appropriate platform for ensuring that  in the long term the needs are being met by the 
assistance provided.  This mechanis m should be the forum where all Members can continue to consult 
on matters relating to technical assistance and capaci ty building, as well as share national experiences. 
III. USE OF INTERNATIONAL STANDARDS 
5. We have recently conducted a survey am ong several hundred of our own stakeholders, 
including manufacturers, traders, brokers and forwarde rs.  They were questioned on the issue of trade 
facilitation and what they would like to see coming out  of the negotiations.  Not surprisingly, one of 
all possible outcomes they desire most strongly is  "to establish a harmonized international rule on 
customs procedures".  Over 50 per cent of those in terviewed place "a harmoni zed international rule" 
in the top three of their priorities, with as many as half of them regarding this proposal as the most 
needed of all. 
6. We appreciate all the proposals contributed by Members, which share the common goal of 
further expediting the movement, release and clearan ce of goods.  Several of the contributions have 
made relevant proposals specifically on "estab lishing a harmonized international rule on customs 
procedures":  TN/TF/W/62 
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 (a) Japan, Mongolia, Peru and the Separate  Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu have jointly suggested th at Members use international standards, 
to the extent possible where international st andards have been already set up by other 
relevant international organizations, with  a view to minimizing the incidence and 
complexity of import and export formalities (TN/TF/W/17). 
(b) Korea goes one step further to recommend the adoption of the "WCO Customs Data 
Model" and "UN Layout Key for Trade Docu ments" so that WTO Members can work 
to a standard list of data, and a comm on format and layout for documentation 
(TN/TF/W/18). 
(c) New Zealand’s proposal requires Members to adopt the WCO’s Convention on the 
Harmonized Commodity Description and Coding System ("the HS Convention") to 
ensure that decisions on tariff classification are made on an objective basis 
(TN/TF/W/24).  New Zealand, in conjunction with Norway and Switzerland, also suggests that "the development or use of  already existing standardized formats on 
documentation should be considered."  An example of the latter is the UN Layout 
Key for Trade Documents".  (TN/TF/W/36). 
(d) Bolivia, Mongolia and Paraguay jointly pro pose use of international standards for 
transit formalities and documentation re quirements.  They suggest "use of 
international standards applied in most WT O Members to the extent possible, where 
other relevant international organizations al ready have set up international standards, 
with a view to minimizing unnecessary delays  or restrictions on traffic in transit". 
(TN/TF/W/28) Peru also recommends "promotion of the use of international instruments relating to customs transit, in cluding the possibility of acceding to such 
instruments, where applicable".  (TN/TF/W/30). 
(e) The EC recommends that "members should ag ree to use international standards and 
instruments as the basis for their import and export procedures and requirements, 
except where such international standards w ould be an ineffective or inappropriate 
means to fulfill the legitimate objectives sought".  (TN/TF/W/46). 
(f) India and the United States jointly propo se to establish a multilateral mechanism for 
the exchange and handling of informati on between Members.  The information 
exchange mechanism will ultimately be built upon implementation of the WCO’s 
Customs Data Model (TN/TF/W/57).   
7. The goal of establishing "a harmonized interna tional rule on customs procedures" is a worthy 
ideal, but the task of achieving it is by no means easy.  By applying already existing international 
standards, Members may be able to avoid some duplication of work, but there are also serious 
shortcomings, which must be taken into account.  For example, some WTO Members may not necessarily be members of the relevant interna tional organizations.  New Zealand mentions, for 
example, that only two-thirds of WTO Members are Contracting Parties to the HS Convention.  
Moreover, a mere thirty-eight parties have so far contracted to the revised International Convention on 
the Simplification and Harmonization of Customs Procedures (the revised "Kyoto Convention"). 
8. This is another important reason why we believe it necessary to establish a long-term 
mechanism on issues of trade facilita tion, as a forum to help bridge the gaps that currently exist. TN/TF/W/62 
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 IV. PROPOSAL 
9. We are convinced that trade facilitation is such  an important issue that it deserves continuous 
attention of all Members.  In fact, the harmonizati on of international standards and rules, as well as 
the provision of the technical assistance needed  by Members, are nothing new to the WTO.  
The Committee on Sanitary and Phytosanitary Measures (the "SPS Committee") and the Committee on Technical Barriers to Trade (the "TBT Committee") are two very relevant examples.  We are of the 
view that it is equally important that Members c onsider establishing a long-term mechanism, in the 
form of either a committee, a working group, a task force, annual periodic meetings, any other appropriate structure, or even recourse to an existing mechanism, in order to deal with trade 
facilitation issues, especially customs matters. 
10. The functions of the long-term mechanism might include, but would not be limited to, the 
following: 
(a) Review the effectiveness of the support and assistance provided to developing 
Members, especially least-developed Memb ers, so as to ensure progress on the 
implementation of the results of the negotiations.  If difficulties in implementation are 
encountered by developing or least-developed Members, the mechanism, in 
conjunction with additional developed Members and/or relevant international 
organizations, shall ensure provision of the necessary technical assistance and 
capacity building. 
(b) Grant to developing Members, especially LDCs, upon request, specified, time-limited 
exceptions from obligations, in whole or in part , taking into account their financial, 
trade and development needs with a view to  ensuring full compliance with the final 
results of the negotiations. 
(c) Provide a regular forum to allow Members to  consult on any matters relating to trade 
facilitation. 
(d) Maintain close contact with the relevant in ternational organizations in the field of 
trade facilitation with the aim of securing th e best information on trade facilitating 
measures, and thus avoiding unn ecessary duplication of efforts. 
(e) Encourage the use of international standard s, guidelines, or recommendations by all 
Members. 
(f) Serve as a forum for Members to share na tional experiences and exchange views on 
trade facilitation matters.  The mechanism shall also promote effective cooperation 
between customs, or any other appropri ate authorities, on trade facilitation and 
customs compliance issues. 
(g) Serve, as appropriate, as a platform for the coordination of matters relating to trade 
facilitation with other WTO Committees. 
V. CONCLUSION 
11. We recognize the fact that the provision of tec hnical assistance and capacity building, as well 
as the harmonization of international rules on trad e-facilitating measures are worthy long-term goals.  
While we are very hopeful that the results of this round of negotiations will further expedite the flow 
of legitimate trade, we are convinced that, for th e reasons mentioned above, the establishment of a 
mechanism that will continue to work over th e long-term is a very necessary element in the  TN/TF/W/62 
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 painstaking processes of establishing harmonized inte rnational rules on trade and customs procedures, 
and in ensuring that the assistance provided to developing Members, and especially least-developed 
Members, is effective in implementing the results of the negotiations.  In the meantime, we would 
encourage Members to continue to discuss these issues in further detail, as well as the functioning of 
the mechanism both during and beyond the negotiations phase. 
12. Having said that, we would like to emphasize that this proposal is without any prejudice to the 
possible form of the long-term mechanism on trade facilitation matters, or the possible format of the 
final result of the negotiations, as stipulated in Footnote 1 of Annex D.3  
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3 Footnote 1 of the Annex D states, "It is understood that this is without prejudice to the possible format of the 
final result of the negotiations and would allow consideration of various forms of outcomes."