WORLD TRADE  
ORGANIZATION  TN/TF/W/133 
10 July 2006 
 
 (06-3314) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM ARMENIA, THE EUROPEAN COMMUNITIES, THE  
FORMER YUGOSLAV REPUBLIC OF MACEDONIA, THE KYRGYZ REPUBLIC, 
MONGOLIA,, PARAGUAY, THE REPUBLIC OF MOLDOVA, RWANDA, AND 
SWITZERLAND 
  
 The following communication, dated 7 July 2006,  is being circulated at the request of the 
Delegations of Armenia, the European Communitie s, the  Former Yugoslav Republic of Macedonia, 
the Kyrgyz Republic, Mongolia,, Paraguay, the Republic of Moldova, Rwanda, and Switzerland 
 
_______________ 
 
 
TRANSIT – COMPILATION OF TEXTUAL PROPOSALS IN  
TN/TF/W/113 AND TN/TF/W/119 
 
 
This submission compiles the text ual proposals made in TN/TF/W/113
1 and TN/TF/W/1192 while 
deleting some duplications between them. It is being circulated by the proponents of the two 
submissions to the Negotiating Group with a view  to facilitating progress in the negotiations. The 
source of the text is indicated at the end of each pa ragraph. The submission is without prejudice to the 
proponents' positions as subscribed to  in TN/TF/W/113 and TN/TF/W/119.  
 (a) Scope 
1. Definition of traffic in transit :  Goods (including those moved via fixed infrastructure, inter 
alia pipelines, baggage and the persona l belongings of the person operating the means of transport), 
and means of transport, shall be deemed to be in transit across the territory of a Member when the 
passage across such territory is only a portion of a complete journey begi nning and terminating 
beyond the frontier of the Member whose territory the tr affic passes.  Traffic of this nature is termed 
"traffic in transit" irrespective of (i) trans-shipment , short-term storage, breaking bulk, or change in 
the mode of transport, and (ii) whether the goods or means of trans port, after passing across a territory 
of a Member, return to the territory of a Member in which they originate or through which they have 
previously transited. [TN/TF/W/113; paragraph (a) 1.] 
2. Exception :  The provisions of this [Article] shall not apply to the operation of aircraft in 
transit, but shall apply to air transit of goods (i ncluding baggage). [TN/TF/ W/113; paragraph (a) 2.] 
                                                     
 
1 Communication from Armenia, the European Co mmunities, the Kyrgyz Republic, Mongolia, the 
Former Yugoslav Republic of  Macedonia, and the Republic of  Moldova of 6 June 2006. 
2 Communication from Mongolia, Rwanda, Paraguay and Switzerland of 7 June 2006. TN/TF/W/133 
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  (b) Freedom of transit 
3. Freedom of transit and routes most convenient for international transit :  There shall be 
freedom of transit through the territory of each Member via the routes most convenient for 
international transit.  Traders have the freedom  to choose the route subject to any reasonable 
restrictions imposed by Members consistent with para graph 4.  No distinction shall be made which is 
based on the choice of means of transp ort, the flag of vessels, the place of  origin, departure, entry, exit 
or destination, or any circumst ances relating to the ownership of goods or means of transport. 
[TN/TF/W/113;  paragraph (b) 3.]  
(c) Legitimate public policy objectives and traffic in transit 
4. Members recognize that the legitimate public policy objectives set out in GATT Articles XX 
and XXI, including in relation to national security, health, safety and the environment, shall not be 
compromised in any way.  To that end, Member s recognize that the general and security exceptions 
provided for in GATT Articles XX and XXI shall be fully applicable. [TN/TF/W/113;  paragraph (c) 4.] 
5. Any Member may require that traffic in trans it through its territory be entered at the proper 
customs house without prejudice to the other commitments on transit. [TN/TF/W/ 113;  paragraph (c) 
5.] 
(d) Non-discrimination 
6. National treatment :  With respect to all laws, regul ations, requirements and procedures 
affecting the internal passage of traffic in transit across the territory of a Member, and all fees and charges imposed on or in connection with transit, including transportation char ges ("transit fees and 
charges"), and without prejudice to the legitimate cu stoms control and supervision of goods in transit, 
each Member shall accord to traffi c in transit to or from the territory of any Member, treatment no less 
favourable than that accorded to domestic good s, exports and imports, and their movement. 
[TN/TF/W/113;  paragraph (d) 6.] 
7. Most-favoured-nation treatment :  With respect to all laws, regulations, requirements, 
procedures and fees and ch arges, including transportati on charges, on or in conne ction with transit, each 
Member shall accord to traffic in transit to or from the territory of any other Member treatment no less 
favourable than the treatment accorde d to traffic in transit to or from any third country. [TN/TF/W/113; 
paragraph (d) 7.] 
8. Treatment following transit :  Each Member shall accord to pr oducts which have been in transit 
through the territory of any other Member treatment no  less favourable than that which would have been 
accorded to such products had they been transporte d from their place of departure to their destination 
without going through the territory of such other Member.  Any Member shall, however, be free to 
maintain its requirements of direct consignment exis ting on the date of the GATT 1994 in respect of any 
goods in regard to which such direct consignment is  a requisite condition of eligibility for entry of the 
goods at preferential rates of duty or has relation to the Member's pr escribed method of valuation for 
duty purposes. [TN/TF/W/113; paragraph (d) 8.] 
(e) Fees and charges 
9. Members shall exempt traffic in transit from cu stoms duties, transit duties and other fees and 
charges, except transit fees and ch arges that are commensurate with th e cost of the service rendered.  
Any transit fee and charge shall:  TN/TF/W/133 
 Page 3 
 
 
   - Be reasonable, having regard to the conditions of transit; 
  - Not be charged with respect to consular services or the equivalent;   - Only be imposed for transit services provi ded in direct connection with the specific 
transit movement in question or for any formality required for undertaking such 
importation or exportation;  
  - Not exceed the approximate cost of the transit service provided;    - Not be calculated on an ad valorem basis. [TN/TF/W/113; paragraph (e) 9.] 
 
10. Publication :  Members shall publish information on all transit fees and charges.  This 
Information shall include the reason for the tran sit fee or charge (the service provided), the 
responsible authority, the transit fees and charges th at will be applied, and when and how payment is 
made.  Members shall make this information readil y available to all interested parties and inform 
other Members where this information is available.  The information shall be published via an 
officially designated medium, and where feasible and possible, official website. [TN/TF/W/113; paragraph (e) 10.] 
11. Prior publication :  Members shall accord an adequate time period between the publication of 
information on new or amended transit fees and ch arges and their entry in to force except when 
justified by legitimate public policy objectives. [TN/TF/W/ 113;  paragraph (e) 11.] 
12. Periodic review :  Each Member shall periodically review  its transit fees and charges to ensure 
that they are in line with WTO commitments and with  a view to consolidating them and reducing their 
number and diversity. [TN/TF/W/113;  paragraph (e) 12.] 
(f) Transparency 
13. Publication :  Members shall publish all transit fo rmalities and documentation requirements, 
and regional transit agreements or arrangements.  Members shall make this information readily 
available to all interested parties and inform other Members of where this information is available.  
The information shall be published via an offici ally designated medium, and where feasible and 
possible, official website. [TN/TF/W/113; paragraph 16.] 
14. Prior publication :  Members shall accord an adequate time period between the publication of 
new or amended transit formalitie s and documentation requirements and their entry into force except 
where justified by legitimate public policy objectives. [TN/TF/W/113; paragraph 17.] 
15. Transparency of transit release time :  Each Member shall periodically publish the average 
time for release of traffic in transit at main points of entry and exit using tools such as the WCO Time 
Release Study. [TN/TF/W/113;  paragraph 18.] 
(g) Transit formalities and documentation requirements 
16. Transit formalities and documentation requirements are all laws, regulations, requirements and 
procedures on or in connection with transit. [TN/TF/W/113;  paragraph (f) 13.] 
17. Special border crossing facilities for transit : Traffic in transit shall not be subject to any 
unnecessary delays or restrictions and shall be gran ted expedited and simplified treatment at border 
crossing points, including sea, fluvial and air ports or inland terminals as applicable. As far as possible, physically separate transit lanes shall be ma de available for traffic in transit. [TN/TF/W/119; 
element 1] TN/TF/W/133 
Page 4  
 
  18. Members shall ensure that traffic in transit through their territory is not subject to any 
unnecessary delays, restrictions, inspections or co ntrols. Transit formalities and documentation 
requirements shall be reasonable having regard to th e conditions of transit, applied uniformly and be 
not more trade restrictive than necessary to achie ve the legitimate public policy objective pursued.  
For traffic in transit, Members shall provide for: 
 - The processing of transit documents and da ta prior to the arrival of the transiting 
consignment;  
  - The use by traders of commercially available information, documents and data 
wherever possible, including as part of transit declarations;  
 
 - The progressive establishment of a single window for traffic in transit.   [TN/TF/W/113; paragraph (f) 14. Last bullet of TN /TF/W/113; paragraph (f) 14. ("As far as possible, 
physically separate transit lanes shall be made availa ble for traffic in transit") is covered in paragraph 
17 above] 
19. Formalities adjusted to the specificities of the goods in transit : Members shall adapt the 
treatment of goods in transit to the expected degree  and nature of the hazard, whether fiscal, sanitary 
or security related, that can be derived from the ch aracteristics of goods in transit. Categories such as 
"normal goods", "dangerous goods", "perishable good s" and "sensitive goods" may be established at 
national level together with rela ted procedures and shall be made publicly available. [TN/TF/W/119; 
element 2] 
20. Simplified treatment / risk management :  Members shall use risk management techniques to 
enable any inspections to be ta rgeted on the basis of the degree of risk attached to individual 
consignments.  This shall include the establishm ent of authorized trader schemes which grant 
simplified treatment to traders with a good track r ecord of compliance with transit formalities and 
documentation requirements. In designing and applying transit formalities and documentation 
requirements, Members shall take account of the inherent charact eristics of the goods concerned. 
[TN/TF/W/113;  paragraph (f) 21] 
21. Limited physical inspections of goods : Members shall limit physical inspections of goods in 
transit to the case where circumstances may require  them. Consignments secured by customs seals 
shall not as a general rule be subjected to custom s examination. No quality control and no veterinary, 
medicosanitary or phytosanitary inspection shall be  imposed on goods in transit, except in cases 
where risks have been identified. This shall not prevent customs from carrying out spot checks on the 
goods, based on risk management. Only when cust oms consider such measure indispensable in 
relation with the characteristics of the goods as refe rred in Article [2] shall they (i) require goods to 
follow a prescribed itinerary; or (ii) require goods to be conveyed under customs escort surveillance. 
Normally customs shall not impose such treatment  to sealed consignments conforming with the 
national regulatory requirements.
3 [TN/TF/W/119;  element 3] 
22. Common customs documentation and procedures : For goods entering a Member under 
customs transit procedure, Members should accept co mmercially available information, including as 
part of transit declarations. Contracting parties to  regional transit agreemen ts or arrangements should 
agree on common, simplified documents that are ali gned with international standards. In both cases, 
Members involved in transit shall allow the same  set of documents to accompany the consignment 
from the country of departure to destination. [TN/TF/W/119;  element 4] 
                                                      
3 Members shall consider using Annex E, Standard 3 of the Revised Kyoto Convention as the basis for 
the national requirements on seals and fastening.  TN/TF/W/133 
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  (h) Promotion of regional transit agreements or arrangements 
23. Members shall promote bilateral and regional tr ansit agreements or arrangements which are 
consistent with all other commitments on Trade Facilitation and with a view to reducing trade 
barriers. Members agree to cooperate and coordina te in designing and applyi ng bilateral and regional 
transit agreements or arrangements. Members sha ll take full account of international standards and 
instruments when designing and applying those agreem ents or arrangements. It is recommended that 
such agreements or arrangements go beyond customs matters which are relevant in the context of 
transit, such as road and transport issues. Members sh all not enforce unilateral rules affecting traffic in 
transit which are not in accordance with the bilatera l or regional transit agreem ents or arrangements in 
which they participate. Members participating in regional transit agreements or arrangements shall 
give positive consideration to reasoned requests to participate by other Members who meet the 
requisite participation criter ia. [merger of TN/TF/W/113; pa ragraph (f) 20. and TN/TF/W/119; 
element 6] 
(i) Bonded transport regime and guarantees / inte rnational, regional or national customs 
guarantee system 
24. Bonded transport regime and guarantees  / international, regional or national customs 
guarantee system :  In order to avoid provisional taxation while securing revenue in case of inland 
diversion of goods, Members shall operate bonded transport regimes that allow the transit of goods 
through the territory of Members without payment of customs duties, taxes or other charges subject to 
the provision of an appropriate guarantee.  Member s shall ensure that guarantees required from transit 
operators are: 
 - Reasonable having regard to the conditions  of transit and the characteristics and the 
nature and value of the consignment in question, and limited to the amount of 
customs debt or other charges which may be incurred in respect of the goods; 
  - Designed and applied on a regional or in ternational basis to as great an extent as 
possible; 
  - Released promptly and in full after the completion of the transit operation.   25. Guarantees shall be renewable for subsequent consignments on ce a previous one is proved to 
have reached its destination. No fees and charges shall be imposed in relation to the use of bonded 
transport regimes and guarantees except for those di rectly related to the approximate cost of any 
service provided. [merger of: TN/TF/W/113;  para graph (f)  22. and TN/TF/W/119;  element 5] 
(j) Use of international standards 
26. Use of international standards :  Members shall draw upon international standards and 
instruments
4 as a basis for transit formalities and documentation requirements, where such standards 
and instruments exist, except when they would be  an inappropriate or ineffective means for the 
fulfilment of the legitimate objectives purs ued. [TN/TF/W/113;  paragraph (f) 15.] 
                                                      
4 International standards and instruments on transit include the Specific Annex E of the International 
Convention on the Simplification and Harmonisation of Customs Procedures (the Revised Kyoto Convention), the UN TIR Convention, the ATA Convention, the Istanbul Convention, the International Convention on the 
harmonization of frontier controls of goods, the UN Layout Key for documentation and the WCO Data Model.  TN/TF/W/133 
Page 6  
 
  27. Members should give careful consideration to  the possibility of acceding to international 
instruments relating to Customs transit.
5  Alternatively, they shall cons ider, when drawing up bilateral 
or regional agreements with a view to setting up international Customs transit procedure, the 
Standards and Recommended Practices of the Specific Annex E of the Revised Kyoto Convention. [TN/TF/W/119; element 8] 
(k) Cooperation and Coordination 
28. Amongst authorities :  Members shall ensure cooperation and coordination between all 
concerned authorities and agencies in  their territory to facilitate tr affic in transit. Members shall 
ensure cooperation with other Members on issues of traffic in transit, including with regard to 
standardizing transit formalities and documenta tion requirements and coordinating operations of 
border crossings.  To this end, neighbouring Members shall, as far as  necessary, meet periodically to 
discuss and come to an understanding on the fees a nd charges, formalities, legal requirements and 
practical operation of transit regimes relati ng to goods moving in transit between them. 
[TN/TF/W/113;  paragraph (g) 23.] 
29. Between authorities and the private sector :  Members shall provide opportunities for 
interested traders to comment on the transit regime  and its operation, including with regard to the 
introduction of new or amended transit fees and char ges, and transit formalities and documentation 
requirements, with a view to minimizing unnecessary delays and restrictions on traffic in transit." [TN/TF/W/113;  paragraph (g) 24.] 
(l) Periodic review / Monitoring with a view to enhancing efficiency, transparency and 
predictability of the transit agreement or arrangement  
30. Periodic review :  Each Member shall periodically review its transit formalities and 
documentation requirements to ensure that they ar e in line with WTO commitments and with a view 
to consolidating them and reducing their impact  on trade.  Such reviews shall allow for the 
participation of all interested parties and, as appr opriate, may be held at a regional or international 
level. [TN/TF/W/113;  paragraph (f)  19.] 
31. Recognizing the importance of efficient implem entation of such transit agreements or 
arrangements, the parties of such regional agreemen ts or arrangements are encouraged to incorporate 
measures relating to the monitoring of transit into their agreements or arrangements. Such measures 
can foresee inter alia  the appointment of national transit coor dinators; performance indicators (e.g., 
target clearance times) or public private partners hips to manage and monitor the arrangement. 
[TN/TF/W/119;  element 7] 
__________ 
  
                                                     
 
5 E.g., the UN TIR Convention or equivalent.