. /.   WORLD TRADE  
ORGANIZATION  TN/TF/W/124/Rev.1 
7 July 2006 
 (06-3298) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM HONG KONG, CHINA AND SWITZERLAND 
 
Revision
 
  
 The following communication, dated 30 June 2006,  is being circulated at the request of the 
Delegations of Hong Kong, China and Switzerland.       
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REDUCTION/LIMITATION AND PERIODIC REVIEW  
OF FORMALITIES AND DOCUMENTATION REQUIREMENTS 
 
 
 Hong Kong, China submitted a proposal for im proving relevant aspects of Article VIII of 
GATT 1994 in the document TN/TF/W/31.  Having re gard to feedback received from Members, 
Hong Kong, China and Switzerland in this submissi on set out a textual proposal aiming to achieve 
reduction/limitation and periodic review of fo rmalities and documentation requirements.   
Textual Proposal
 
y Members shall minimise the incidence and comp lexity of import and export formalities and 
decrease and simplify import and export document ation requirements to ensure that such 
formalities and requirements are no more administ ratively burdensome or trade restrictive than 
necessary1 to achieve their legitimate objectives and are applied in an efficient manner so as not to 
constitute unnecessary obstacle to trade.   
                                                      
1 Determining whether formalities and requirements are more trade restrictive than necessary to fulfil 
their legitimate objectives involves a process of consider ing and weighing a number of factors.  These factors 
include: 
(i) the importance of the legitimate objectives to the Member concerned; 
(ii) the extent to which the formalities and requireme nts contribute to the achievement of the legitimate 
 objectives; (iii) the restrictive effect the formalities and requirements have on trade; 
(iv) the reasonable availability of alternative formalities and requirements that may achieve the legitimate 
objectives. In determining whether alternative form alities and requirements are reasonably available, 
the economic, technical and administrative feasibility of such alternative formalities and requirements 
would have to be taken into consideration by the Member concerned; and 
(v) the costs including administrative, implementation and compliance costs associat ed with the formalities 
and requirements and the benefits derived from them. 
After considering the above factors, the formalities and requirements in question would deem to be more trade 
restrictive than necessary if it is determined that  
(a)  alternative formalities and require ments are reasonably available and si gnificantly less trade restrictive 
 and they can achieve the legitimate objec tives to the same or greater extent; or TN/TF/W/124/Rev.1 
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  y Any such formalities or requirements shall not be  maintained if the circumstances or objectives 
giving rise to their adoption no longer exist.   
y Each Member shall review its formalities and requirements at reasonable and regular intervals, 
taking into account relevant new information and business practices, availability and adoption of 
techniques and technology, international best prac tices and input from interested parties including 
the private sector. 
2 
Special and Differential Treatment, Technical Assistance and Capacity Building  
 The co-sponsors propose that these issues be taken forward through the development of a 
horizontal mechanism that would, among others, take  account of the needs, priorities, cost concerns 
and implementation capacities of developing a nd least-developed Members in relation to 
commitments.  A number of relevant submissions on these issues have been made to the Negotiating 
Group on Trade Facilitation.  
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(b)  the trade restrictiveness of the formalities and requirements being examined is disproportionate to the 
  legitimate objectives; or  
(c)  the costs of the formalities and requirements unde r examination are signifi cantly excessive to their 
  benefits. 
2 This self–initiated review shall not affect Memb ers’ rights and obligations under paragraph 2 of 
Article VIII of GATT 1994.