WORLD TRADE  
ORGANIZATION  TN/TF/W/32 
28 April 2005 
 
 (05-1719) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM HONG KONG, CHINA 
 
 The following communication, dated 26 Apr il 2005, from the Delegation of Hong Kong, 
China, is being circulated in advance of the Negotiating Group meeting of 2-4 May 2005. 
 
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PROPOSAL FOR IMPROVING GATT ARTICLE X 
  I. PROPOSAL 
1. Hong Kong, China proposes the following im provements to Article X of GATT 1994: 
(a) Transparency and Publication of Information 
All measures referred to in pa ragraph 1 of Article X of GA TT 1994 should be published in a 
clear and consistent manner, through a readily accessible and widely available medium, at no 
cost or at a charge commensurate with the co st of services rendered, and in as much advance 
as possible. 
 
(b) Electronic Publication of Information 
(i) In addition to (a) above, any informa tion to be published under proposal (a) 
should be made available by the publishing Member for access by any 
interested parties through electronic means at no cost or at a charge 
commensurate with the cost of services rendered. 
(ii) Each Member should notify the other Members through the Secretariat the 
means to access the information published electronically. 
(c) Consultation with Traders 
(i) Each Member should establish effectiv e mechanisms for exchanges with 
traders, whose views should be duly taken into account, concerning the administration of measures referred to in paragraph 1 of Article X of GATT 
1994. 
(ii) When formulating, implementing and re viewing any measures referred to in 
paragraph 1 of Article X of GATT 1994,  opportunities should be provided for 
consultation with traders if substantial trade interests or major changes to the 
existing measures are involved. TN/TF/W/32 
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 II. EXPLANATION 
2. Proposal (a) provides more clarity to paragraph 1 of Article X.  To ensure that measures are 
published promptly in such a manner as to enable governments and traders to become acquainted with 
them, the proposal sets out the major and important parameters for publication, namely: 
(a) in a clear and consistent manner; 
(b) through a readily accessible and widely available medium; 
(c) at no cost or at a charge commensurate with the cost of services rendered; and 
(d) in as much advance as possible. 
3. The first parameter provides that the informati on should be published in a clear and consistent 
manner to avoid confusion to traders.  The second pa rameter ensures that info rmation is disseminated 
through a readily accessible and widely available me dium.  It does not preclude the use of multiple 
media.  The third parameter ensures that informati on should be made available free of charge, or at a 
charge commensurate with the cost of services rende red such as printing costs.  The fourth parameter 
clarifies the term "promptly" by requiring publica tion of information in as much advance as possible 
of it being "made effective" as stipulated in paragr aph 1 of Article X.  In accordance with paragraph 1 
of Article X, the proposal does not require the di sclosure of confidential information which would 
impede law enforcement or otherwise be contrary  to the public interest or would prejudice the 
legitimate commercial interests of partic ular enterprises, public or private. 
4. On top of proposal (a), proposal (b) provides fo r electronic publication of information, either 
as the only means of publication or as an additional one.  With the rapid advance in technology and 
the widespread adoption of the Internet, the elect ronic means has become the most efficient and 
effective means of communication.  It also levels  the playing field for traders to the extent of 
narrowing the gap between large a nd resourceful enterprises and small and medium ones in terms of 
cost of access to information.  Electronic publi cation of trade regulations should therefore be 
encouraged.  Once a Member has est ablished a channel for electronic publication of trade regulations 
or in case of future changes, it should notify other Members through the Secretariat.  Obviously, there 
are implementation concerns and they are fully recognised in the next section. 
5. Proposal (c) relates to paragraph 3(a) of Ar ticle X and provides for the establishment of 
effective mechanisms for exchanges with traders co ncerning the administration of trade regulations.  
There can be a single mechanism or multiple ones,  taking different forms for different Members, 
depending on the circumstances of individual Members.  For example, it can be a customer liaison 
group, an advisory body, or a c onsultative council, with the participation of the business sector, 
consumer organizations, academics or professional bodies, and any other interested parties, as a 
Member deems appropriate.  Proposal (c) goes further that traders should be consulted when measures 
are being formulated, implemented or reviewed if s ubstantial trade interests or major changes to the 
existing measures are involved.  It is noted that th e definitions of "substantial trade interests" and 
"major changes" may cause concern.  However, it is not  possible to provide a hard  and fast rule and to 
set precise definitions due to varying circumst ances.  Each Member may draw up broad and 
reasonable guidelines to suit its own domestic situation and examine each case accordingly. 
III. IMPLEMENTATION CONCERNS 
6. Implementation concerns are foreseen regarding proposals (b) and (c).  Members are 
encouraged to examine their own situations (e.g ., whether they have a governmental website, how 
they consult the trade in day-to-d ay operation, etc.) and share their experience with other Members so  TN/TF/W/32 
 Page 3 
 
 
 that lessons can be learnt on how to implement thes e proposals in the simplest, most efficient and cost 
effective manner.  Technical assistance should be provided to Members in need to implement these 
proposals. 
7. In addition to technical assistance, a longer im plementation period can be considered for these 
proposals. 
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