RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/TF/M/4 
29 April 2005 
 
 (05-1778) 
Negotiating Group on Trade Facilitation  
  
 
SUMMARY MINUTES OF THE MEETING 
 
Held in the Centre William Rappard
 
on 22-24 March 2005  
 
Chairman:  Mr. Muhamad Noor Yacob (Malaysia) 
  
 
1. The Chairman  said that the main purpose of the meeting was to provide delegations with an 
opportunity to make contributions on the agenda of the Negotiating Group (NG) – both in terms of 
offering new input and reacting to the contributions pr eviously received – as set out in the Work Plan 
adopted in November 2004.  Secondly, Members woul d be invited to admit relevant international 
organizations, including the IMF, OECD, UNCTAD,  WCO and the World Bank, to attend the next 
meeting of the Group on an ad hoc basis.   
2. Under "Other Business", the representative of Australia  wished to report on a workshop on 
the Trade Facilitation (TF) negotiations hosted by Australia and Malaysia for APEC economies in 
Kuala Lumpur on 1-2 March.   
3. The agenda was adopted .   
A. CONTRIBUTIONS ON THE AGREED AGENDA OF THE NEGOTIATING GROUP  
4. The Chairman  outlined the organization of the meeting, explaining that the NG would first 
take up Members’ new submissions, then move to  the previously submitted contributions and the 
inputs by participating international organizations  before finally reverting to the most recent 
communications for additional feedback.  Delegations  would be free to address multiple aspects at the 
same time.  
5. The representative of Japan , introduced the Japan-Mongolia proposal on GATT Article VIII 
(TN/TF/W/17), explaining that it addressed the thr ee areas of (i) fees and charges, (ii) import and 
export formalities and documentation requirements, and (iii) penalties for minor breaches, introducing 
specific examples of problems faced by the priv ate sector and proposing specific – non-exhaustive – 
measures as solutions.   
6. With respect to fees and charges, it was impor tant not to impose unpublished ones, since that 
caused traders, especially small- and medium-si zed enterprises (SMEs), unpredictable costs, which 
restricted their business chances.  Furthermore, if fees and charges were not limited to the cost of 
services rendered,  they imposed unnecessary costs for traders,  thereby impeding international trade 
flows.  As a solution, Japan and Mongolia proposed the periodic review of the appropriateness of the 
amount and the number of fees and charges, th eir publication and the prohibition of collecting 
unpublicized fees and charges.   
7. Cumbersome import and export formalities a nd complicated documentation requirements 
imposed unnecessary costs on traders, especially SMEs trying to engage in trade for the first time, TN/TF/M/4 
Page 2  
 
thus curbing their opportunities to enter new market s.  Furthermore, they hindered a government's 
efficient allocation of limited human and fi nancial resources, thereby deterring economic 
development opportunities through the expansion of trad e.  As solutions to those problems within the 
scope of Members’ legitimate policy objectives, Ja pan and Mongolia proposed to limit import and 
export formalities and documentation requirements to  the least-trade-restrictive level.  Periodic 
reviews of such formalities, based on comments from  the private sector and other parties, would 
support that measure.  The use of international standa rds, to the extent possible, was also an important 
element, and in line with paragraph 9 of Annex D of the July Package.  Pre-arrival documentary 
examination, one-time submission of import or e xport documentation to one agency and documentary 
examination and physical inspection without delay were important measures to minimize the 
incidence and complexity of such formalities.  Introducing risk management was also necessary to 
facilitate trade while at the same time ensuring re gulatory control at the border, and for achieving the 
right balance between facilitation and control.  Risk management would enable governments to 
allocate human and financial resources efficiently , and allow traders to reduce both cost and time 
spent on trade procedures.  With respect to docum entation requirements, the acceptance of required 
documents in copies  (in cases where multiple authorities were involved, or where documents were 
required to conduct other procedures) would also contribute to saving time and costs.  The same 
would go for the acceptance of single documenta ry submission of required import or export 
documentation in cases of repeated transactions of the same product.  
8. Regarding penalties for minor breaches of import and export formalities, the rejection of 
documents due to a mistake in documentation whic h could be corrected immediately by the trader 
without hindering an authority's pursuit of legitimate policy objectives, would impose unnecessary 
costs on traders.  Furthermore, if the applicable penalties were not publicized , it allowed for discretion 
of officials to the disadvantage of traders, especia lly SMEs.  As a solution to such problems, Japan 
and Mongolia proposed to clearly state and publish pe nalty provisions against breaches of import and 
export formalities in relevant laws and regulati ons and to prohibit the imposition of unpublished 
penalties.  Explaining the reason for rejecting the submitted documents at the application desk would 
also be an important measure to solve such problems. 
9. Special and differential (S&D) treatment,  technical assistance and capacity building 
(TA&CB), and cost implications of proposed measures were all important elements for the negotiations.  As for cost implications, national experiences had shown that most of the suggested 
measures could be implemented by using each Member's existing facilities and resources with 
minimum costs for legislation and training of offici als.  The benefits of introducing the measures far 
outweighed the costs.  However, it was recognize d that TA&CB would be required to implement 
some of them.  Support based on coordination amongs t relevant international organizations (IMF, 
OECD, UNCTAD, WCO and World Bank) might also be  taken into consideration for that purpose.  
The granting of transition periods in accordance w ith developing Members’ implementation capacities 
would also be a necessary S&D element.  In addition, the opportunity to sound out  the 
implementation capacities of developing Members toge ther with experts from relevant international 
organizations might be useful.  Japan stood ready to continue providing necessary technical assistance 
for capacity building in the proposed areas.   
10. The representative of Korea
, presented the Korean proposal (TN/TF/W/18), saying that it 
contained five suggestions of how to clarify and improve GATT Article VIII, with a focus on 
reducing administrative burdens on import and export formalities.   
11. First, Korea proposed that customs author ities accept commercially-available information 
such as bills of lading or commercial invoices for documentation required in the customs process to 
avoid repetition.  In addition, traders' documenta tion burden would be significantly reduced if copies 
of documents were accepted in the export and import process.  TN/TF/M/4 
 Page 3 
 
 
12. Second, Korea suggested to make best use of  the achievements by relevant international 
organizations, such as the WCO Customs Data Mo del and the UN Layout Key, which were both 
designed to standardize the format and layout of  trade-related documents and widely applied by 
Members.  They would be a good basis for setti ng a standard and aligning the design of trade 
documents.   
13. Third, Korea proposed to use a "Single Window " where traders could submit all the necessary 
documents and data to a single agency.  The merits  of such facility had been emphasized on many 
occasions, including in the context of other Members' proposals that had been tabled.  The OECD had 
further observed that it was easier to establish a Single Window in developing countries, as it was less difficult to set up an integrated mechanism from scra tch than to overhaul an already-existing system 
into an integrated mechanism.   
14. Fourth, it was suggested to establish and pub lish average clearance and release times for 
goods, which would enhance transparency and pr edictability for customs processes and benefit 
businesses, especially SMEs.  Under that proposal, trad ers would have the right to seek an explanation 
from the customs authority if the processing time for their goods was longer than the average time.   
15. Fifth, Korea supported the idea of utilizing pre- arrival processing, post-clearance auditing and 
risk management measures to accel erate the release of goods.  Korea was aware that some Members 
were not ready to use extensive risk assessment a nd management procedures that were a pre-requisite 
for those measures.  Therefore, an incrementa l approach was suggested, accompanied by proper 
technical assistance and capacity building support for developing countries and LDCs.  Based on its 
own experience, Korea would also like to unde rscore the importance of using Information 
Technology (IT) to realize the maximum benefits from the suggested measures.   
16. The representative of Canada
 introduced the Australian-Canadian proposal on collateral or 
collateral security (TN/TF/W/19) as an instrument to expedite the release of goods.  For many 
economies, the use of such instruments and measures had proven to be successful in promoting efficiency in the clearance process for goods.   
17. The proposal focused on areas in which arrange ments for collateral security or monetary 
guarantees were most commonly available and most u seful for traders and governments, such as when 
delays were encountered in the completion of fi nal clearance procedures, including cases awaiting a 
decision on correct tariff classification.  A trad er wishing to seek the release of a good prior to 
completion of clearance procedures would be able to post a security instrument or cash deposit with 
customs or with other appropriate authorities.  When the amount of duty or charges payable was 
finally determined, the authorities could then seek pa yment from the trader, and if the trader did not 
fulfil his obligations, payment could be obtained from the security instrument.   
18. Traders would benefit from those measures by gaining improved predic tability regarding the 
delivery times for their shipments.  Customs aut horities and other relevant authorities could benefit 
from the added assurance that traders would dischar ge their obligations while lowering transaction 
costs for governments and traders alike.  The in creased certainty in transaction costs provided by 
access to collateral security would also encourag e greater investment and capital flows to the 
economy as a whole.   
19. Appropriate provisions for S&D treatment could be incorporated to reflect the specific 
circumstances of individual Members.  A basic and integral part of any measure on collateral security must also include TA&CB to enable countries to implement any changes that might be necessary.   
20. The representative of Australia
 said that the current supply-chain management increasingly 
relied on "just-in-time" delivery of goods.  De layed release of goods pending the completion of 
customs formalities could add significantly to the costs of doing business (penalties, opportunity TN/TF/M/4 
Page 4  
 
costs), and was one of the most common complain ts from exporters.  Lengthy clearance procedures 
also generated inefficiencies for customs admi nistrations, and incentives for non-compliance by 
traders.   
21. One way to overcome that impediment to trad e was to separate the process of fulfilment of 
customs obligations (including the payment of duties)  from the actual release of goods, subject to the 
provision of sufficient collateral or monetary security as a guarantee of future payment.   
22. Providing for early release of goods against m onetary security made good business sense as it 
facilitated trade while ensuring revenue security a nd improved compliance by traders both through the 
provision of the security itself and by reduci ng incentives to circumvent regulations.   
23. Many Members had already adopted that prac tice.  The Agreement on Customs Valuation 
(CVA) required Members to allow the release of goods  prior to the final determination of customs 
value.  The proposal would simply extend that flexibility to other border formalities, as appropriate (i.e., to the extent that legitimate policy goals such as national security and sanitary/phytosanitary 
controls were not compromised).  It would entail few new costs for Members who already complied with their obligations under the CVA.  Trans ition costs would be essentially limited to training 
officers in the wider use of collateral security arrangements, and to pos sibly updating relevant 
legislation/guidelines to make the option more wide ly available.  Initial costs should be offset by 
efficiency gains and improved revenue collection.   Australia hoped that including commitments on 
monetary securities in the Trade Facilitation negot iations would enhance the implementation of 
Members' obligations under the CVA and mobilize additional TA&CB to help address the causes of 
non-compliance, where they were linked to capacity constraints.   
24. The representative of Canada
 introduced Canada's proposal on border agency coordination 
(TN/TF/W/20), saying that measures on border agen cy coordination could address costs and delays 
resulting from the proliferation of cross-border pro cedures.  For many economies, including Canada's, 
the use of those instruments and measures had proven to be successful in promoting efficiency in the 
clearance process for goods.   
25. The proposal focused on basic elements to prov ide countries with the means to identify their 
specific needs in order to implement greater coor dination, such as (i) compatibility among agencies in 
the information they required, allowing traders to present all required data to one single border agency 
and (ii) coordination on procedures and formalities to ensure cooperation across borders and agencies, 
as well as on operational aspects of regulating border cont rols (including, for example, the sharing of 
physical infrastructure between neighbouri ng authorities to reduce waste and unnecessary 
duplication).   
26. Traders benefited from those measures by ga ining improved predictability in procedural 
requirements for their transactions.  The increased ce rtainty in transaction costs provided by improved 
border agency coordination would also encourage greater investment and capital flows to the economy as a whole.  Customs authorities and ot her competent authorities benefited from the 
efficiencies, the savings in administrative costs,  and the overall rationalization of resources that 
resulted from such enhanced coordination.   
27. The representative of Uganda
 introduced the Uganda-US proposal on consularization 
(TN/TF/W/22), stressing that TF was one of the areas with potential for utmost gains in the Doha 
Development Round.  As a landlocked country, Uga nda held the view that reduction in transaction 
costs was one of the stronger ways in which products  could be made more competitive.  Uganda was 
therefore particularly interested in an effective outcome of the improvement and clarification process 
of the relevant GATT Articles that formed the basis of  negotiations on TF.  It was in that context that 
the proposal had been made.    TN/TF/M/4 
 Page 5 
 
 
28. The parameters for fees and charges were an is sue of great concern for Uganda and there was 
a need to define them with utmost precision.  The objective was to take those fees and charges and 
carry out a selection process, retaining only those that were necessary. The elimination of the non-necessary ones would reduce transaction costs, thus boosting participation in trade, especially for 
SMEs.   
29. The process of consularization required that go ods for export must first be submitted to the 
supervision or certification by the consul of the importing Member country in the territory of the 
exporting country for the purpose of obtaining consular invoices or consular visas for commercial invoices, or consul "verification" of other elemen ts of customs documentation required in connection 
with importation, such as valuation or origin.  For instance, a small Ugandan trader wishing to export 
to a case scenario territory, had to go to an embassy or consulate to have the export papers legalized.  
In some cases, every shipment had document costs of US$ 80 per page for the following documents:  
original invoice, customs declaration, way bill manifest, in transit non manipulation, bill of entry, packing list, with a total payment of US$ 480 in the legalization procedure alone, per container.  Yet, 
the exporter still had to pay other fees incidental to  exporting.  The list was not exhaustive.  Those 
fees were exorbitantly high and inevitably ate into  what would had been profits for the exporter, 
making a small exporter's goods costly and ther efore uncompetitive.  Considering Uganda’s 
landlocked- , LDC- as well as small-sized enterprise characteristics, those f ees worsened an already 
difficult situation and defeated the entire purpose of facilitating trade.  They constituted, in effect, a 
veiled barrier to trade.   
30. It was also important to note that, in the above  case, a similar inspection would have to be 
made at the point of entry into the importing Member, causing a duplication of procedures.  The 
requirement for consularization therefore led to a waste of time, was counter-productive and costly, 
and went against the spirit of facilitation, which ai med at increasing efficiency in the movement of 
goods.   
31. It was also worth recalling the provisions of GATT Article VIII:1(b), where Members 
recognized the need to reduce the number and divers ity of Article VIII-related fees and charges.  
Uganda wondered whether the above-m entioned fees and their applicati on were not also contravening 
Article VIII:1 (a).   
32. In light of the above, Uganda proposed the e limination of that practice, the case for which 
was compelling.  The proposal highlighted the fact th at requirements for consularization needed to be 
revised.  Through modern administrative techniques for verification, there were other cheaper and 
speedier ways in which a verification of whether bor der requirements were bei ng met could be made.  
From an historical viewpoint, the Contracting Pa rties to the GATT had recommended the abolition of 
consular invoices and consular visas and had a ffirmed that recommendation on several occasions.  
That was a strong reaffirmation that the usefulness of consularization, even as early as 1952, had been 
questioned.  More importantly, fo r Uganda, consularization had been a great barrier to access into 
markets of countries applying that requirement.  
33. The proposal also touched on the possible need  for an assessment on TA&CB, as well as on 
elements of S&D treatment, exploring its appropriaten ess in the context of consularization.  However, 
the sooner that requirement was abolished, the bette r for Uganda and for other Members in a similar 
situation.   
34. The representative of the United States
 joined Uganda in proposing the prohibition of the 
requirement of consular transactions, including consul arization-related fees and charges in connection 
with the importation of goods.  The issue had been identified to the US as a problem early on in a consultation process with the private sector, particularly by representatives of smaller businesses.  But it had been the explanation of the matter by Uga nda in February that had helped the US fully 
understand the effect of those practices, which the proposal sought to eliminate.   TN/TF/M/4 
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35. It was often heard that the TF negotiations aime d at modernizing and upda ting relevant rules. 
The Uganda-US proposal underscored the truth of that theme.  Recommendations for eliminating 
those kinds of consular formalitie s and fees had been made right after the initial drafting of GATT 
Article VIII, and were issued again in 1957.  That  had been followed by another recommendation by a 
panel of experts on consular formalities convened in March 1962.  And yet, it had never been 
eliminated.  The US was of the view that it was high time to take that long-standing advice as a very 
practical step towards the modernization of the trading system.   
36. A second proposal by the United States (TN/TF/W/21) dealt with the release of goods, similar 
– albeit not identical – to that put forward by Cana da and Australia.  At the core of the NG's work 
mandate was the goal of further expediting the m ovement, release and clearance of goods.  The US 
proposal on the release of goods squarely addressed th at element.  On the one hand, what the US 
proposed was very simple, because it built on a co mmitment already included in Article 13 of the 
CVA.  On the other hand, a system for the releas e of goods when certain issues were still pending, 
was a tool for meeting the needs and demands of the current just-in-time global economy.  The phrase 
"win-win" had often been used in the WTO, and it so metimes seemed like a cliché.  But to the extent 
that Members could focus on efforts and commitments related to a system that provided for the rapid 
release of goods, it was a very accurate description of  the results the negotiations could bring.  As 
described well in the Canada-Australia releas e-proposal, which the United States supported, the 
implementation of such a system not only expande d trade, but also encouraged investment, and 
contributed to the efficiency of customs author ities in meeting their responsibilities related to 
compliance with applicable laws and regulations.   
37. The representative of the European Communities
, introduced the EC-Australia proposal on 
clarification and improvement of GATT Article VIII provisions on fees and charges (TN/TF/W/23).  The EC had already made a submission on GATT Article X addressing the transparency of fees and charges.  The new submission covered the actual rules and disciplines on the fees and charges themselves.  The proposals were also relevant  to the clarification and improvement of GATT 
Article V.    
38. For business, the proposals would increase predic tability and help avoid unwarranted fees and 
charges.  For governments, the proposals would incr ease clarity in the design and application of fees 
and charges.    
39. The scope of the proposals was not only fees an d charges of customs, but also of other 
concerned agencies.  The provisions should cover all fees and charges on or in connection with 
imports and exports, or which were  a necessary condition for import or export.  There was a need to 
ensure that all import and export fees and ch arges were covered to avoid loopholes.   
40. On general disciplines for fees and charges, th e proposal was inspired by existing WTO rules 
and dispute settlement rulings.  There was still cons iderable uncertainty about what was and was not 
allowed.  The EC proposed that (i) the service provide d was related to the goods in question;  (ii) that 
fees and charges referred to the approximate cost of  the service provided, and (iii) therefore could not 
be calculated on an ad valorem basis;  (iv) that costs not linked to the service provided could not be 
imposed;  and (v) that there should be non-discrimination in the design and application of fees and charges.   
41. GATT Article VIII recognized the need to reduce the number and diversity of fees and 
charges but created no obligation to do so.  That  was a weakness which should be addressed in the 
negotiations.  Members should review and, if ne cessary, consolidate or reduce the number and 
diversity of fees and charges.  There should be an obligation to publish or notify remaining fees and 
charges.  For new or revised fe es and charges, there should be a sufficient implementation period 
between adoption and entry into force – they should not change from one day to the next.  In  TN/TF/M/4 
 Page 7 
 
 
undertaking a review, it would be useful to have rules.  To that end, the EC proposed a list of permissible fees and charges and the discontinuation of consular fees. 
42. The EC believed that the suggested proposals would not impose significant capacity demands.  
But, clearly, there would be potential for developed countries and special organizations to share their 
experience in designing and developing fees and ch arges schemes.  The EC recognized that fees and 
charges might be an important source of governme nt revenue for some developing countries, which 
should be taken into account.  The fees and charges themselves could be used to help fund some of 
the customs services provided.  The EC supported all tabled submissions on fees and charges.   
43. The representative of Australia
 considered it very useful to address the problem of excessive 
and unjustified fees and charges on importation and exportation.  Article VIII provided that fees and 
charges should be limited in amount to the appr oximate cost of services rendered and should not 
represent an indirect protection to domestic products  or taxation of imports or exports for fiscal 
purposes.  However, an examination of the NAMA NTB notifications revealed that many Members continued to levy disproportionate  and unjustified fees and charges on imports and exports for fiscal 
or protectionist purposes, often on an ad valorem  basis.  That pointed to a need to clarify and 
strengthen the provisions of Article VIII.   
44. The paper proposed a set of concrete disciplines to  clarify and strengthen Article VIII.  It did 
not seek to introduce new obligations but sought to se t out existing obligations in explicit terms, such 
as (i) an explicit commitment to non-discrimination in the design and application of fees and charges, which would reflect an established WTO principle a nd give effect to the requirement that fees and 
charges shall not represent an indirect protection to domestic products;  or (ii)  an explicit prohibition 
of ad valorem  fees and charges to ensure that fees and ch arges actually reflected the approximate cost 
of services provided.  A recent OECD study (TD/TC /WP(2004)46) had found that 54 per cent of fees 
in high-income economies were levied on an ad valorem  basis – adding significantly to the cost of 
trade.  The prevalence of ad valorem  fees in low-income economies might indicate a need for 
TA&CB to develop a more appropriate fees structure based on cost recovery.   
45. The paper also sought to give practical effect  to paragraph 1(b), which recognized the need 
for reducing the number and diversity of fees and ch arges.  As a first step, it proposed that each 
Member reviewed, and if necessary, consolidated or  reduced the number and diversity of its fees and 
charges.  All remaining fees and charges must be ma de publicly and easily available, together with the 
justification for them.  By implication, Member s would be prohibited from collecting unpublished 
fees and charges.  Publication need not be burde nsome – in many cases, it was expected to simply 
entail consolidating information already available in various forms.  That would provide greater 
certainty and predictability for traders and should, over time, lead to the abolition of unjustified or 
obsolete charges.   
46. It was essential that the scope of commitments on fees and charges applied beyond customs to 
other agency interventions and tasks undertaken on their behalf.  Otherwise, gains in one area could 
be diminished by unnecessary fees and charges applied elsewhere.   
47. The representative of New Zealand
 presented New Zealand's paper (TN/TF/W/24), explaining 
that it contained three practical proposals.  For convenience, those proposals had been arranged under 
the well-established principles of transparency, due process and minimizing unnecessary restrictions 
on trade.  The proposal also discussed S&D treatment and TA&CB considerations.   
48. The main goal of those proposals was to he lp identify rules that would increase the 
predictability and certainty of international trade.  Those TF rules would be ultimately beneficial to all 
WTO Members.  However, developing countries and SME exporters were likely to reap greater 
benefits from a more transparent, predictable,  user-friendly international trading system.   TN/TF/M/4 
Page 8  
 
49. The first proposal fell under the heading of "t ransparency and due process".  It called for 
Members and traders to have the right to comme nt on proposed TF measures, and to have those 
comments taken into account.  The key thought was to establish a common-sense  mechanism, similar 
to that existing in some other WTO Agreements, so that the relevant authorities had an obligation to 
explain the rationale for the proposed measures to those most affected: traders and other WTO 
Members.  New Zealand's domestic experience w ith implementing supply-chain security had shown 
that a consultation/dialogue requirement could u ltimately be beneficial to both the responsible 
government authorities and traders a ffected by the TF measures.   
50. The second proposal was that objective criteria be required for the tariff classification of 
goods.  The aim of introducing a greater degree of objectivity into customs classification procedures 
was to ensure that tariff classification decisions we re not themselves used as a disguised protection of 
domestic industries.  Such an objective test would ensure that tariff classification decisions were 
based on transparent and well-established criteria and would aim to remove the high degree of subjectivity and variability in some Members' tari ff classification procedures.  In essence, the 
proposal was designed to address the practice that one had at times been confronted with, where 
importing countries manipulated tariff classification decisions to assign a higher tariff to imported 
products.   
51. The third proposal fell under the principle of "minimizing unnecessary restrictions on trade".  
It called for Members to agree to more precise, operational and effective provisions on minimizing 
excessive documentation.  The proposal sought to improve Article VIII by providing clearer guidelines on how best to simplify and minimize tho se fees and formalities, and to improve Members' 
and traders' understanding of the administrative frameworks operating within many Members.   
52. The representative of Chinese Taipei
 introduced Chinese Taipei 's submission (TN/TF/W/25) 
saying that unreasonably high fees charged by Memb ers in the course of international trade would 
increase the transaction costs for traders, and thus reduce the opportunities for conducting 
international business.  SMEs were the most aff ected, because they survived on very tight profit 
margins.  For example, complaints were often hear d from traders about high fees for consular invoices 
and certificates charged by importing Members.  Not only did high charges and excessive amounts of 
documentation increase transaction costs, but they al so caused inconvenience to applicants, often to 
the point where exporters were discouraged from pursu ing international trade.  Moreover, it could be 
especially burdensome when there was no consulate office in the exporting Member country, and the 
exporter had no choice but to apply through the next nearest consulate office in another country.   
53. GATT Article VIII:1 (a) required that "all fees and charges of whatever character (other than 
import and export duties and other taxes within th e purview of Article III) imposed by contracting 
parties on or in connection with importation or exportation shall be limited in amount to the 
approximate cost of services rendered and shall not represent an indirect protection to domestic products or a taxation of imports or exports for fi scal purposes".  One of the contentious issues about 
that provision was how to estimate the approximate cost of services rendered.  Although past dispute 
settlement cases had touched upon the definition of a fee or charge limited to the approximate cost of 
services rendered, there was still no clear guidance as to  exactly how the approximate cost of services 
rendered should be calculated.   
54. Some Members had contributed their thoughts on  how to proceed with that issue.  For 
example, Hong Kong, China, had suggested that "Members might consider the desirability of 
introducing basic GATT/WTO principles such as necessity and review" (G/C/W/398).  The EC 
argued that "the fees or charges in question might not therefore be calculated on an ad valorem  basis" 
(G/C/W/394).  The United States proposed to "est ablish specific parameters for fees charged by 
Members under Article VIII of GATT 1994" (TN/TF/W/14).    TN/TF/M/4 
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55. Chinese Taipei was of the view that the costs of services rendere d could be brok en down into 
two main components:  (i) direct costs, and (ii) indir ect costs.  Direct costs we re those directly related 
to the specific services provided, including labour, ma terials, equipment and utilities.  Indirect costs, 
by contrast, were costs incurred that were not direc tly related, but were nonetheless attributable to the 
specific services rendered, e.g., costs of supporting labour, equipment, and office rent.  Generally 
Accepted Accounting Principles (GAAP) might also  be used, if necessary, as a reference to the 
allocation of direct and indirect costs.  At the same time, one should not lose focus and pay too much 
attention to arguing whether an expenditure should be classified as direct cost or indirect cost.  The fact was that they would all eventually be included in  the calculation of cost of services rendered.     
56. To put that concept into operation, it was sugg ested to use a table for analyzing costs.  
Periodical reviews of the levels of fees and ch arges imposed on or in connection with import and 
export should also be conducted, for example, at least once every three years. 
57. The example of a "Special Cargo Examination Fee" was useful to illustrate how a Cost 
Analysis Table might be applied.  The occasions on which a "Special Cargo Examination Fee" might be charged included:  examinations  conducted out of regular office hours, or at the special request of 
the applicants, or for goods not st ored at customs-designated locations.  Thus, special arrangements 
needed to be made.  The total estimated cost of  conducting a special cargo examination was made up 
of direct costs and indirect costs.  In that particul ar example, the direct costs were the addition of the 
costs of the directly-related labour (inspector, chie f and driver) and directly-related materials (gasoline 
and office supplies).  To calculate the indirect co sts, an estimate was made of the depreciation and 
maintenance costs of the car used partially for ex amination and attributable office utilities and other 
materials.   
58. The implementation of that measure would be a feasible solution to the existing problem and 
would constitute a more scientific way of arriving at a level of fees that more fairly represented the 
real costs of services rendered in the context of Article VIII.  Furthermore, from Chinese Taipei's 
experience, the costs of implementing that type of system were minimal.  The first step would have to be the enactment or amendment of relevant laws and/or regulations to establish the necessary 
measures.  That would need to be followed by training of the relevant accounting officers.   
59. Chinese Taipei was ready to work with in terested Members and other international 
organizations on details such as, implementing principles, design of a cost analysis table, S&D 
treatment and TA&CB, as necessary.   
60. The representative of China
, presented China's submission (TN/TF/W/26), explaining that it 
focused on clarifying and improving GATT Article X.  It echoed some points already raised by other Members.  The proposal covered the scope of trade regulations subject to publication, methods of 
publication, enquiry points and commenting periods.  Ch ina was of the view that  greater transparency 
and predictability were of utmost importance to the trading community.  From the perspective of 
traders, it could provide them with information on trade procedures in an accurate and timely manner, 
avoid undue formalities and docum entation requirements, accelera te trade processes, and reduce 
transaction costs.  From the perspective of g overnments, it could increase an administration's 
efficiency, cut administrative costs, and optimize resource allocation.   
61. In light of China's experience, the proposals, if adopted, would help to reduce trade costs, 
increase administrative efficiency and provide a mo re transparent and predictable environment for 
traders and enterprises, especially, SMEs.  There were some implementation concerns Members had 
to give attention to, such as the fact that the estab lishment of enquiry points and internet sites required 
relatively high resource inputs, especially for some  developing Members.  The implementation costs 
were closely related to the IT modernization level of individual Members.  Taking into consideration 
the large gap between developed and developing Me mbers in that regard, a longer implementation 
period should be provided for de veloping Members.  TA&CB tailore d to the specific needs of each TN/TF/M/4 
Page 10  
 
individual developed Member would be very helpful to address im plementation concerns.  China's 
proposal was not exhaustive in that regard.   
62. The representative of Mongolia
 invited the Secretariat to pay special attention to involving 
landlocked developing countries in the negotiations, especially those not present in Geneva, which 
should be given special assistance.   
63. Document TN/TF/W/23 from the EC and Australia contained some elements of great 
importance to Mongolia.  Mongolia therefore supported most of its ideas.  
64. With respect to document TN/TF/W/19 by Au stralia and Canada, Mongolia had some 
concerns about the idea of making the provision of  collateral security a commitment.  Mongolian 
companies had been experiencing some problems with collaterals when exporting goods through 
transit countries as well as with regard to des tination countries.  Being a small economy, Mongolian 
companies were also small and had limited resources to cover required collaterals.  They invested all 
their resources into goods for export and import and did not have extra money to pay the collateral.  It 
took the goods weeks to reach thei r destination, during which the co llected collateral money remained 
tied up in the coffer of the transit countries instead of being in circulation.  Mongolia therefore wished 
to discuss with Australia and Canada how that con cern could be incorporated into their proposal.  
Mongolia was not supportive of making the provision of collateral a commitment.   
65. The representative of Romania  wondered whether Canada coul d elaborate on its collateral 
securities proposal and explain how it was supposed to function and whether it increased costs.  
Romania could not see how blocking money for long periods could help to facilitate trade.  With 
respect to Canada's proposal on establishing a Si ngle Window, which appealed to Romania as a good 
measure to facilitate trade, Romania wished to know whether it was envisaged for the Single Window 
to create a new authority which would imply supplementary costs and fees both for the national authorities and for the exporters and importers, or whether the idea was to pick one of the existing 
agencies at the border to assume such function.   
66. Finally, Romania would like Uganda and the US to inform the Group about how many 
countries still used consular visas.  For Romania's traders, that did not seem to be a problem.  Most of 
Romania's trade was done without consular visas.  Pe rhaps the Secretariat had also some information 
on that matter.   
67. The representative of Paraguay
 appreciated the practical approach taken in presenting the 
proposals, and was pleased to see the different obstacl es being identified that existed with regard to 
the transit of goods, as well as with the solutions suggested.  Looking at the presentations, it seemed 
that there was tacit agreement on concentrating wo rk on the clarification and improvement of GATT 
Articles VIII and X.  In order to have a balanced  coverage of the negotia tions, Paraguay would focus 
its efforts on Article V, as well as on the issue of  technical assistance and capacity building.  Those 
questions had already been covered indirectly as the three GATT Articles had a close relationship to 
those matters.  Nevertheless, some particular aspects of  Article V needed to be dealt with individually, 
such as its reference to the "routes most convenient for international transit" in paragraph 2, as well as 
the issue of controls which transiting goods had to undergo.  Transparency and predictability applied 
to the transit of goods could also be the objectives of  some of the proposals.  Paraguay was aware that 
the current work would not be able to address a ll the problems in the area of goods movement, but 
believed that it could be a basis for more fluid trade.   With technical assistance and political will, it 
should be possible to advance work in the field.    
68. Canada's proposal on collateral or monetary secu rity provisions was an acceptable suggestion, 
especially with respect to the release of implementa tion costs to the private sector.  Such a system 
could have a positive influence on trade, and there were many advantages to be gained.  Paraguay 
could invest in that type of system.  Howeve r, that should not have consequences on Paraguay's  TN/TF/M/4 
 Page 11 
 
 
administrative structures.  Looking at the tec hnical implications, the material and the legal 
implications of setting up such a system, it w ould be necessary to know more details about its 
implementation, such as the type of required infrast ructure, the operation costs, the procedures for the 
collection of the duties and the types of  services which would be rendered.   
69. Paraguay shared Canada's belief that coordina tion amongst the administrations dealing with 
the trans-border  movement of goods was essential for st reamlining trade.  Single Windows and 
integrated border controls offered excellent possib ilities to facilitate trade.  Paraguay also believed in 
single documents and integrated controls at the borde rs.  In Paraguay's experience, the integration of 
controls had varied in terms of complexity and difficulty depending on the intervening stakeholders 
and the volume of border movement.  In order for one or more Members to cooperate at the border 
post, many elements woul d have be to harmonized.   One should not set up obligations which would 
restrict Members to one system but limit oneself to make known the usefulness of the system and 
promote its use through technical assistance.  
70. Paraguay shared the premise of Japan's proposal  that the principle of non-discrimination had 
to be the basis of all measures to facilitate trad e. Paraguay supported the Japanese proposal of a legal 
mechanism for a periodic review of fees and char ges affecting importation and exportation in an 
automatic and reasonable way,  covering all sectors .  With regard to the publication of fees and 
charges, Paraguay wondered whether the idea was fo r that to take place through a medium of broad 
range such as the internet, or whether it was proposed  to simply have a legal requirement to publish 
that information in a legal gazette, official journal, or a medium determined by each national legislation.     
71. The use of international standards was also  something that should be encouraged by 
organizations and donor countri es through countries technical assistance and the development of 
projects of a regional-, but not mandatory, character.  Solutions of a general design did not always have the capacity to adapt to each  particular case and the cost of implementing the measures based on 
international standards could sometimes lead to heavy burdens which not all Members were capable 
of taking on.  One should also not lose sight of the fact that international standards on customs 
formalities were numerous and different.  
72. The proposals on documentary examination and ph ysical inspection without undue delay, and 
on a time frame for the release of goods were highly desi rable.  But one could not simply have such a 
discipline in countries where the infrastructure did not allow for that type of release, where the 
personnel was scarce and not trained and where the controls of their activities were deficient.   
Making those processes more flexible would lead to a more efficient system.  The other mechanisms 
suggested by Japan such as pre-arrival clearance a nd risk assessment would merit more detailed study 
in light of real experiences.  Paraguay therefore wished  to get more details related to the application of 
those measures in developing countries and LDCs.   Paraguay also agreed with  Japan on the need to 
diffuse to the maximum information on penalties wh ich penalized omissions and offences related to 
the traffic of goods on the understanding that that me asure was oriented at improving the transparency 
of the system.   
73. Paraguay shared the views set out in the EC proposal on fees and charges and agreed with 
what had been said by the EC, the United States and Uganda with regard to consular fees.  At the 
same time, one had to keep in mind that the adop tion of the suggested measures would have direct 
consequences on public revenue, whic h had to be taken into account.  Otherwise, that would create 
difficulties for many capitals, especially in countries with small economies.     
74. The proposal by the United States and Canada w ith regard to release of goods upon posting of 
a guarantee also seemed viable in principle.  Se tting up the suggested mechanism would have to be 
preceded by a diagnosis of the situation and feasi bility, accompanied, if necessary, by technical 
assistance to assist with the implementation.  To  incorporate successfully new and more efficient  TN/TF/M/4 
Page 12  
 
mechanisms, adapted to the local needs, Members ha d to ensure that they did not commit to things 
they were not able to carry out later on.  It wa s necessary to determine beforehand whether affected 
Members would in fact be able to set up and maintain the necessary structures.  
75. Paraguay agreed with New Zealand on the need to create a forum to exchange views between 
traders and government agencies, which should work in a very efficient way.  Members affected by 
measures on goods transit should be c onsulted on, or at least informed  about, any amendments to new 
measures.  Paraguay also believed that the coexis tence of different systems of classification caused 
difficulties in transit and trade.  Members should harmonize those systems based on the suggestions 
put forward by New Zealand.   
76. Korea's proposal to accept copies of document s, however, was not appropriate, as it would 
lead to illegal practices.  It was easier to falsify c opies than to falsify originals.  The suggestion was 
also only a short-term solution which would become  obsolete once one moved towards electronic data 
management, which would allow more efficient wo rk and save time and money.  Such modern 
technologies would make transit and transport more fluid, allow trade to flow smoothly and had a 
better chance of being adopted by administrations .  Assistance was required to enable countries to 
have access to that type of technology and to be  able to install it.  Concerns regarding the 
harmonization and standardization of documents were largely shared.  The model proposed by the 
WCO would hopefully be available to Me mbers soon and should be promoted.  
77. Korea should be thanked for reminding the Group that developing countries must be proactive 
in the negotiations.  At the same time, the task ahead  was not an easy one.  Many countries were not 
able to go as far in the area of Trade Facilitation as th ey would like.  It was difficult to gather all the 
required information to draw a lis t of one's needs and come up with methods which could enable the 
finding of solutions.  The assistance provided to Paraguay by some Members was very useful in enabling the country to identify some of the proble ms that could be addressed in the negotiations and 
formulate communications which had Paraguay's interests in mind.   That coordination should 
continue to identify Members’ pr iorities, especially those with no resources, to determine their 
problems.   
78. The representative of Peru
 said that the discussions in the Group and the contributions made 
so far with the emphasis on TA&CB showed that the Group was heading in the right direction.  Albeit 
still early in the process, common concerns and interest s had already materialised. It could be useful if 
the Secretariat identified, in cooperation with th e countries that had presented proposals, the main 
elements of those proposals.   That way, developing countries would have a proper set of information 
for assessing the proposals and would be able to m ove forward in the negotiations more easily.   
79. Document TN/TF/W/17, which Peru wished to co-sponsor, had the proper format in outlining 
problems and offering possible solutions, which made it easier to have an exchange of views on those 
aspects.  It was sufficiently broad without being e xhaustive, allowing for possible new solutions to the 
presented problems to materialize.  With respect to the specific matter of suggesting a periodic review 
and publication of fees and charges connected with  importation and exportation, Peru considered it 
important to carry out such a periodic review to br ing charges in line with the changing circumstances 
of trade reality.  Peru also cons idered it important for import and e xport formalities to be as little trade 
restrictive as possible, in line with the simplifi cation Members tried to achieve when talking about 
Trade Facilitation.  In Peru, an automated harmoni zed Single Window system had been developed to 
harmonize and simplify the formalities required for customs processing, making use of electronic 
means, to the extent possible, with a view to reduce time and costs.   
80. Peru strongly supported the submission of in formation prior to the arrival of the goods  as vital 
to improve the operationality  of customs and shorten release tim es.  Trade Facilitation must go hand 
in hand with suitable controls of customs operations .  One way of achieving that was to use risk 
assessment when carrying out inspections.  Trader s with a good track record of compliance with  TN/TF/M/4 
 Page 13 
 
 
customs procedures should benefit from simplified pro cedures.  To keep their records up to date, it 
was necessary to have an appropriate exchange of in formation between Members.  In that context, a 
harmonized automated clearance system was useful as it allowed for the reduction of the physical 
presentation of the customs declaration and its documentation.     
81. The possibility of accepting copies of import and export documents, wherever possible, 
would make commercial activities much easier and would prevent delays in the presentation of 
documents in cases where it was difficult to obtain the original.   
82. Penalties must be clearly established in the regulations, which must be published for the 
knowledge of all commercial operators.  The only point Peru had a reservation about was the 
Japan/Mongolia suggestion in the area of substantia l penalties for minor breaches in documentation.  
Under the new Peruvian General Customs Law, a mu ch stricter policy had been adopted, leading to 
the imposition of a fine in cases of breaches, even if  the error had not been intentional.  Japan and 
Mongolia suggested for such minor breeches not to lead  to a refusal of the documentation.  Rather, 
they should be corrected.  But that would be difficult to apply in Peru  as errors in declarations were 
often committed intentionally in order to obtain be nefits.  Under the current policy applied by the 
Peruvian Ministry of Economy and Customs, if the document was filled out properly, everything was 
made easy, but in cases of breaches, even if they were  minor ones, the law was applied properly.  That 
part of the Japan-Mongolia proposal was therefore not applicable in Peru, as it could actually open the 
door to fraud and lead to greater difficulties in terms of  customs procedures rather than facilitate trade.   
83. Peru agreed on the importance of border ag ency cooperation as stressed by Canada in 
document TN/TF/W/20.  Peru was in the process of seeking increased cooperation amongst the 
relevant bodies through cooperation programmes.  It was a very basic aspect that had to be taken up in 
the context of facilitation.   
84. Peru also supported document TN/TF/W/21.  Consular formalities should progressively be 
eliminated as a clear obstacle to Trade Facilitation.   
85. Finally, the Group should not ignore the fact th at Trade Facilitation was intrinsically linked 
with technical and financial assistance to allow de veloping countries to develop or improve means to 
facilitate trade in their countries.  Without that, all envisaged TF measures would not be sustainable.  
86. The representative of Chinese Taipei  shared the views expressed  in the Japan-Mongolia paper  
(TN/TF/W/17) and wished to co-sponsor it.  At th e same time, Chinese Taipei had a few comments on 
the proposals, and a few questions that required further clarification.   
87. The proposal to periodically review the fees and charges, import/export formalities and 
document requirements significantly advanced Artic le VIII:2's provisions requiring a Member to 
review, upon request by another Member, the operation of its laws and regulations in the light of the 
provisions of the Article.  Chinese Taipei was interest ed in hearing more about how in practice such a 
periodic review mechanism would work.    
88. Regarding the use of international standards for import and export formalities and document 
requirements, Chinese Taipei was of the view that it was better to refer to the specific and detailed 
parts of the envisaged international standards.   
89. The proposal by Uganda and the Unites States on consularization built on earlier 
recommendations on the abolition of consular i nvoices and consular visas and had also been 
supported by other Members, and was based on comp laints from traders about high fees for consular 
invoices and certificates charged by some importing Members.  The elimination of the requirement 
for consular transactions, including consularizati on-related fees and charges, would be a "quantum 
leap" towards the facilitation of global trade and the streamlining of bureaucratic administration.  It TN/TF/M/4 
Page 14  
 
would also benefit developing count ries' exporters, particularly SMEs.  That could be one of the most 
significant achievements of the negotiations.  At th e same time, the proposal would require a lot of 
effort to develop the way forward on that matter.   
90. As for the proposal on the release of goods by th e US, Australia and Canada, the provisions in 
Chapter 3 of the General Annex to the Revised Kyoto Convention provided for the separation of 
release from clearance. The proposal also indicated  that the measure was already reflected in 
Article 13 of the CVA.  Chinese Taipei agreed with Members proposing that measure as it would 
provide for the quicker release of goods, cost savings from the reduction in delivery delays, and greater certainty and predictability as to cash flow and shipping times.   
91. Korea was to be commended for its proposal of  several important measures, including the 
harmonization and standardization of  document formats, using intern ational instruments, such as the 
WCO Customs Data Model and the UN Layout Ke y.  Chinese Taipei also supported Korea's 
suggestion of establishing a Single Window. Chinese Taipei had already recommended measures such 
as pre-arrival processing, risk management and post-cl earance auditing in its previous submission.  Its 
national experience had shown that those measures could be achieved without significant financial 
and administrative burden.  Chinese Taipei ther efore strongly believed that by adopting and 
implementing those measures sooner rather than la ter, with proper capacity-building and technical 
assistance, developing and least-developed countries w ould be able to enjoy the benefits earlier.   
92. The representative of Kenya
 said that the submitted proposals offered Members a wealth of 
information to analyze what really fell under the thr ee Articles, and what could be eliminated for the 
purposes of the present exercise.  A common thread running through all proposals was the role of the 
government, which was reduced to a minimum.  Me mbers might have to look at the role of the 
government as a facilitator of trade as well.  One coul d not just keep on shedding it off and claim that 
it was not important.  
93. Another issue running across the proposals rela ted to the cost of implementation.  The 
proposals suggested that implementation costs would be minimal.  But what might be minimal for 
country A, located above the equator, might not be minimal for country B, which was situated within 
the equator, and that had to be taken into account.  Quantification was therefore very important to get 
a clearer picture of what Members were really talking about.   
94. A third point running across the proposals was that they tended to point towards 
standardization of fees and procedures.  In that  context, Kenya wondered whether Annex D gave 
Members the mandate to do that.  And if it was not within the mandate of Annex D, why was it 
necessary to do that?  Perhaps that could be explained by the authors of those proposals.  Furthermore, 
the cost of implementation seemed not to be respondi ng to Annex D.  Annex D was very clear in that 
developed-country Members were to provide tec hnical assistance, both during the negotiations and 
after, for the implementation.  Kenya therefore wa nted to hear from those delegations having made 
proposals what technical assistance they were providi ng to Kenya at the moment to participate in the 
negotiations and to benefit from them.  
95. Another matter of concern was the fact that most of the proposals seemed to limit S&D to 
longer transition periods for implementation, wherea s Annex D clearly stated that it had to go beyond 
that. Members committed themselves to that, and it had to be seriously addressed, with the proposals 
reflecting that commitment.    
96. As for Japan's and Mongolia's suggested pe riodic review proposal (TN/TF/W/17), Kenya 
wondered whether that was really necessary, given th at there were already existing mechanisms that 
could address the issue, such as the Trade Policy Review Mechanism (TPR).  There should be no 
duplication of work.    TN/TF/M/4 
 Page 15 
 
 
97. As for the paper's references to technical assistance and support for capacity building,  it 
seemed that that was now delegated to the interna tional organizations, contra ry to paragraph 5 of 
Annex D, which contained Members' commitment to do that themselves, particularly the developed 
ones.  Kenya therefore wondered at what stage those Members would actually chip in and start providing the necessary assistance.   
98. The proposal on collateral by Australia and Ca nada sounded very good on paper.  However, 
one should not forget that the co llateral business could also lock out small-skilled traders.  In Kenya, 
for instance, an enterprise would typically involve a man with his wife and son, with no resources to 
pay for a collateral.  One should not create NTBs in  the name of removing some of those barriers.  
One had to look at those matters critically to see if they  were of real interest to those small enterprises.  
Furthermore, when looking at the reference to Article 13, Kenya wondered whether that was an 
implementation issue or rather a Trade Facilitation issue.  
99. With respect to document TN/TF/W/21 on the release of goods, Kenya was of the view that, 
sometimes, minimum checks were important to ensure what was being released was the right  product.   
Kenya had a problem with that proposal. Just recen tly, a container had been released in Kenya which 
had proven to contain narcotic produc ts.  One therefore had to be very careful in ensuring that what 
was released was the correct product.  Related secu rity aspects could not be overruled.  Kenya did not 
want its government to share the responsibility of dishonest traders.   
100. Uganda's and the United States' proposal on co nsularization was something Kenya was very 
sympathetic to.  It was interesting to see a very strong WTO Member come together with a weak one, 
which underlined the value of Trade Facilitation.  What Kenya wanted to know was why it had taken 
them so long to phase it out, given that that matter had been discussed for many years.   
101. With respect to the EC's and Australia's propo sal that only legitimate fees and charges should 
remain, it had to be known what was meant by "legitim ate" fees and charges, as there were likely to 
be divergent interpretations of the term.  Kenya might  consider all fees and charges legitimate that the 
proponents wished to eliminate, so it might be necessary to come up with some definitions.  
102. The paper by New Zealand appeared to call on na tional parliaments to get input from outside.  
It was not clear how countries would react to exte rnal bodies providing inputs.  Kenya wondered how, 
for instance, Congress would react if Kenya were to propose how they should amend their laws to fit 
Kenya's interests.  That was a very sensitive area.  It therefore might be necessary to reflect on what 
was really meant by Trade Facilitation.   
103. The representative of Rwanda, speak ing on behalf of the African Group
, recognized the 
importance of Trade Facilitation for enhancing econo mic competitiveness at the national, regional and 
continental level.  The African Group was preparing a communication on that important topic.  In that 
context, the African Group would like to emphasize  once again that the work of the NGTF and its 
outcomes had to be made relevant to the deve lopment needs as contained in Annex D.    
104. The paper under preparation highlighted the issu e of cost implications, raised important 
challenges faced by Africa's trading environment and, among other things, emphasized the issue of 
S&D and capacity building.  The African Group exp ected Members to consider its concerns.   
105. Technical assistance and capacity building were  crucial.  Annex D r ecognized the importance 
of technical assistance both during negotiations and during the implementation of its results.  For the 
time being, given the speed of the negotiations, the African Group requested the readiness of the 
Secretariat, together with relevant institutions  such as COMESA, SADC, ECOWAS and others, to 
undertake a needs assessment at the national and regional level.   TN/TF/M/4 
Page 16  
 
106. The representative of Chile
 said that the principles laid out in GATT Article VIII on fees and 
charges should be strengthened.  With regard to  Japan's, Mongolia's and Chinese Taipei's proposals, 
Chile sought clarification with regard to how th e suggested periodic review was supposed to be 
implemented.  Chile also wished to know under what criteria the amount of appropriate fees and 
charges would be evaluated.  Furthermore, Chile s ought clarification with regard to publications.  
Would it be enough to have those fees and charges published in official journals by governments or 
did the proposal aim for some sort of commitment to publish elsewhere?   
107. The EC’s proposal to establish a list of permissi ble fees and charges was interesting as long as 
the idea was to reduce the number of fees and charg es rather than broaden their scope.  Chile also 
supported the proposed elimination of consular fees.   
108. Canada and the United States had proposed th e establishment of a mechanism for the early 
release of goods against monetary or collateral security, according to which the release of goods 
would take place before the decision on the classifica tion, the final amount to be paid or on other 
customs proceedings.  Canada went further by se tting out a number of circumstances in which that 
type of guarantee would be necessary.  Their proposal outlined two circumstances and Chile would 
like to ask Canada if they considered it necessary to negotiate specific circumstances in which the 
security would be asked for.  In Chile, most of  the customs procedures were pre-arrival customs 
procedures without asking for any security.  It would be interesting to ensure that proposals of that 
type did not discourage those types of practices.  Fu rthermore, there was a risk of misuse in that 
customs release was delayed without there being s ituations meriting it in order to demand a security 
from the exporters, thereby increasing the transaction co sts.  If such a mechanism was to be set up, 
one would have to look very closely not only at the different ways in which the guarantees could be 
asked for, but also at how to set up disciplines with  regard to the implementation of those guarantees, 
and at what types of mechanisms would be  used for returning those securities.   
109. That type of financial instrument was not wid espread in developing countries.  With respect 
to the early release of goods, it was not clear that SMEs in developing countries could use that type of 
mechanism, especially when  looking at the costs of those types of guarantees.  In that context, Chile 
wished to seek clarification from Canada with re gard to their proposal on S&D.  It was not clear 
whether, when saying that implementation could be deferred, the reference was to commitments 
which developing countries would take on in order to provide those types of guarantees for their 
exporters, or in order to administrate and mana ge the guarantees which would be coming into their 
customs offices.   
110. Korea, along with Mongolia and Chinese Taipei, d ealt with a topic of extreme importance for 
Chile:  standardization and simplification of docum ents required in import and export procedures.  
They proposed the introduction of specific measur es such as the standardization of documents, using 
and benefiting from the work already carried out  by the WCO to set up a Single Window, which 
should be studied. 
111. In the same context, New Zealand had proposed to set up provisions which would enable the 
minimization of the documentation required.  Chile would like to ask New Zealand for clarification 
on how they would implement that proposal.  Did Ne w Zealand feel that each Member should notify 
the documents and systems in force and that they commit as part of the negotiations to eliminate 
excessive documentation which might exist in thei r countries?  And who would determine whether, 
and on what criteria, that type of documentation was excessive?  In other words, how would Members 
be able to decide on the options for eliminating excessive documentation?   
112. As for the proposals by Chinese Taipei, Chile w ould like to know if Chinese Taipei used its 
cost analysis in order to determine all the values of its  fees and charges.  With respect to the proposal 
by China, Chile sought clarification on the idea of a period for comments.  Item four of the Chinese  TN/TF/M/4 
 Page 17 
 
 
proposal suggested for comments to be received after the notification but before  entry into force.  
Chile wondered if changes could be made when legislation had already been published.   
113. The representative of Pakistan  said that the presented proposals all aimed at simplifying 
customs procedures and resulted in reduced costs fo r business and more transparency.  Most of them 
sought to improve existing procedures and did not re quire any large-scale new infrastructure.  They 
were just seeking the reduction of clearance form alities.  Commonalities among the documents were 
proposals relating to (i) the harmonization and standa rdization of documents, (ii) the use of a Single 
Window, (iii) the release of goods against a security if there was a classification dispute or if the 
import was temporary and meant for re-export, (iv) disciplines in fees and charges including consular fees and (v) publication of trade regulations. 
114. With respect to the proposal for all countries to  use the same classification system such as the 
Harmonized System (HS), the problem was not using the HS as such, since it was already applied by 
over 97 per cent of world trade.  Rather, the proble m was for everybody to use the same version of the 
HS.  With regard to standardization, the problem  was whether existing international standards were 
actually applied.  For example, the UN Layout Key for trade documents was not even used by 
developed countries. 
115. Another problem was to agree on a time frame (such as the 30 days proposed by China) for 
implementing all customs changes.  In several c ountries, changes in tariff rates were implemented 
through annual budgets.  Such changes were applicable  with immediate effect.  Pakistan would like to 
learn how others were implementing changes in dut y rates as allowing a long time for implementation 
sometimes defeated the purpose of changing a duty rate.   
116. With respect to the claims for the use of guara ntees or collaterals to amount to an additional 
NTB for small businesses, it had to be clarified th at such instruments were actually meant to facilitate 
small business and remove  an existing NTB.  Normally, all impor ters were expected to pay up before 
clearing their goods, with the goods often still rema ining stuck at the ports. The proposed measure 
would at least allow for the immediate release of goods.  The alternative was for goods to remain 
stuck, with the required payments still having to be ma de.  That would lead to additional costs.  Most 
governments already allowed that facility, with its actual application however depending upon the 
good will of customs.  It was better to ha ve more predictability in that area.  
117. Overall, Pakistan was of the view that the tabled proposals were excellent and could move 
work forward.   
118. The representative of Venezuela
 said that the proposals were interlinked and required a great 
deal of time to analyse properly.  If the Secretaria t could try to summarize them, that could be a major 
contribution in that process.  
119. The proposal by Chinese Taipei in document TN /TF/W/10 on pre-arrival clearance was very 
difficult for Venezuela to agree to.  Venezuela's basic customs law prescr ibed in its Article 86 that all 
goods coming into the country would be subject to th e customs law in force at the time of arrival for 
all purposes of customs formalities.  An automated system for pre-arrival declaration therefore would 
be a problem.  But documents could come in five  days after the actual arrival of the goods.   
120. Venezuela was currently investing in automa ting its customs system, with the help of 
technical cooperation.  Many customs offices move d towards the ASYCUDA system.  In line with 
Decision 564 of the Andean Pact, with Article 153 of Venezuela's Constitution, and the ASYCUDA 
system, Venezuela was doing everything possible to  organize its customs clearance on the basis of 
risk assessment criteria.  With respect to the proposal made by Chinese Taipei on express 
consignments, Venezuela's customs legislation foresaw that possibility and made it operational TN/TF/M/4 
Page 18  
 
directly at customs offices.  One had to see what ty pe of Trade Facilitation c ould be achieved in that 
regard.   
121. With respect to advance rulings on tariff cl assification, Venezuela could offer facilities for 
greater transparency and legal certainty due to its te chnical infrastructure to offer tariff classifications 
before the goods actually arrived.  Additionally,  access would soon be available on the internet to a 
database with binding criteria on tariff classification for internal and external users, and all that would 
be necessary was to print from the web page the automated customs declaration, followed by a 
decision on whether the goods qualified for the orange  or the red channel.  Customs services were 
carrying out efforts at the national level to ensu re there was suitable infrastructure for facilities 
connected to customs and trade services.  Venezu ela was now working on a project for a customs 
centre in the port of LaGuaria for the Americas.  For customs and customs-related services, Venezuela 
would be able to offer an integrated service for all users.   
122. With respect to Japan's proposal on fees and charges contained in document TN/TF/W/17, 
Venezuela had heard from the questionnaires used by the WTO some years ago on tariff customs 
services, that the fees applied by Venezuelan customs were not proportionate to the quality of the 
services.  This situation had changed drastically after the progressive implementation throughout the 
country of the ASYCUDA project.  With respect to the simplification of customs procedures and 
formalities, efforts were made on that matter to see whether there was room for negotiations or not.   
123. With respect to the centralization of the receipt of import-export documents, all trade policy 
measures had to be dealt with through customs  in Venezuela.  The custom s authority was responsible 
for 90 per cent of the controls and reception of the declarations and forms needed for import and 
export, and for drug controls.  Japan's proposal  on minor breaches was a very sensitive topic for 
Venezuela, since it had a legal reservation in that area.  More details were required from Japan with 
respect to the penalties aspects which were not in proportion to the breach.  Venezuela would like to 
maintain the possibility of levying fines or pena lties with respect to breaches in line with their 
seriousness.  The area of timely reimbursement of taxes was one where Venezuela had made major 
efforts, so that there should be no problem to deal w ith that.  It would merely  be a matter of perfecting 
the system.   
124. Overall, the proposals posed several problems to  Venezuela due to its laws, constitution and 
legal framework, making it very difficult for Venezu ela to accept some of them.  On the area of 
technical assistance, Venezuela made major efforts to  have customs system in sync with the times.  
Nonetheless, major amounts of money were required to  implement all of those decisions to ensure 
they covered the entire territory.  That had to be borne in mind as well.   
125. The representative of Singapore
 said that progress in the NG would largely be fashioned by 
the proposals Members tabled on the three Articles.   In that context, Singapore welcomed the new 
proposals on Articles VIII and X.  Proposals were also required on technical assistance and Article V.  All of the proposals tabled so far were a useful resource for the Group’s work.  The proponents had 
made efforts to build in elements relating to S& D, TA&CB into their various proposals, which was 
welcomed.  They had also made efforts to be clear and concise, which had facilitated a better 
understanding of the proposals.  Despite some overl aps, the various proposals also served to highlight 
the different aspects and annoyances of the relevant  Articles.  As Members moved towards July and 
Hong Kong, Singapore encouraged more proposals on the three Articles to ensure that a comprehensive package of proposals for the Ministerial Conference.    
126. With respect to Japan’s proposal for a peri odic review of fees and charges, Singapore 
wondered whether it envisaged any time frame fo r such reviews.  Regarding the proposal on 
documentary examination and physical inspection, Ja pan had indicated that Members could also take 
other relevant measures, providing the example of returning necessary documents to traders without delay.  Singapore wondered what other measures Japan had in mind for that provision.  Further  TN/TF/M/4 
 Page 19 
 
 
examples would be useful.  Singapore also wondere d what was meant by "hig h-level of compliance" 
in Japan's suggestion to introduce simplified import and export formalities for authorized traders with 
a high level of compliance with trad e-related laws and regulations.  Did Japan envisage some sort of 
benchmark to determine that high-le vel of compliance?  If so, how w as that to be operationalized in 
practice?  
127. Korea's proposal contained a number of inter esting ideas which Singapore shared.  Simple 
and effective ways to reduce administrative bur dens had to be found, but without sacrificing 
legitimate policy goals.  Note had been taken of Korea's point that standardizing the format of 
customs documents reduced costs related to docum entation and paperwork.  In that connection, 
Singapore concurred with Korea's implementation c oncerns, particularly for developing countries and 
LDCs, that the standardization of document formats mi ght involve substantial, albeit one-time, costs.  
Singapore noted the point that once the new format w as in place, the additional costs of utilizing those 
formats could be minimal.  Singapore also agreed with Korea that developing countries and LDCs 
would need assistance, particularly from internati onal organizations, with regard to carrying out time-
release studies for goods.  In point 4.4, Korea ha d suggested that, in cases  where the release took 
longer than the average time, traders would have th e right to ask customs authorities for the reasons 
why the processing time for their goods had been longe r.  Singapore would like Korea to elaborate on 
what they had in mind when introducing the noti on of average time.  In practice, Members would 
probably have different average times.  Was Korea envisaging that each Member had its own average time or did the proposal aim at a single, or a range of average times for all Members?  How was it intended to take into account the situation of developing countries and LDCs who might possibly 
require longer average times? 
128. As for New Zealand's proposal, Singapore welcomed the fact that New Zealand had 
deliberately and specifically built in S&D and TA&CB elements.  Singapore also broadly agreed with 
the suggestion of the universal use of the HS cl assification system when making tariff classification 
decisions.  However, as proposed by New Zealand, it would be necessary for developing countries 
and LDCs to be provided with the necessary techni cal assistance when moving towards using the HS 
classification.   
129. New Zealand had made important observations on the issue of prior comments. Singapore 
agreed with the general principle that the NG s hould ascertain ways to give better protection to 
exporting Members.  On New Zealand's suggestion to consider a menu of various steps to reduce 
excessive documentation requirements, it would be usef ul if New Zealand could clarify what menu of 
what steps it had in mind and provide some examples to better clarify the concept.   
130. The representative of Mauritius
 said that the submitted proposals contained some interesting 
ideas which were currently being examined.  One ge neral observation was that further elaboration on 
the S&D and technical assistance elements would be u seful, not only in general, but with respect to 
each element of the proposals, including their sub- elements.  That would help to fully assess those 
suggestions and determine their implications on the respective countries.   
131. Mauritius agreed with what Kenya had said about costs.  There was also another perspective 
to that.  If all proposals had low cost implications, it w ould be fine to look at them in isolation, but if 
one tried to put them all together in a package, one would end up with quite significant costs.  One 
had to be mindful of that and of the impact for small countries and those with a very low share of 
trade.   
132. The US-Uganda proposal on consular fees had gi ven a clear picture on how that particular 
measure could  hamper trade in the country and affect its competitive opportunities.  It was an area the 
Group should seriously look into in its future work.   TN/TF/M/4 
Page 20  
 
133. The representative of the Philippines
 said that the Core Group considered the new proposals 
and the presented country experiences to help Members' work as the process continued.   
134. The Philippines sought clarification on the Japan-Mongolia proposal to periodically review 
fees and charges.  Was the intention to have na tional authorities conduct such reviews on their own 
initiative or was the idea that relevant WTO bodies provided the forum for that?  The paper also 
proposed to prohibit the collection of unpublished fees and charges and the imposition of unpublished 
penalties, which appeared to be a disproportionate  remedy for a Member's omission.  The example 
given on page 2 under import and export formalities see med to suggest that goods need not always be 
subject to physical inspection if the company mainta ined a high-level of compliance.  That notion of a 
"high-level of compliance" did not appear to be th e standard accepted or agreed in other relevant 
WTO Agreements, such as the ones on SPS and TBT.   The Philippines wondered about the definition 
of such high-level of compliance from a conceptual  point of view and about the basis for adopting 
such a concept.   
135. With respect to the suggested application of a necessity test based on the criterion of a least-
trade-restrictive formality or documentary require ment, the Philippines found the basis for such a 
necessity test to be too narrow and inflexible.  If,  indeed, a necessity test was to be adopted, the 
Philippines would consider more favourably the idea of having it based on the standard of reasonableness.  Alternatively, Members might also  consider the standard of not more burdensome 
than necessary or not more trade restrictive than  necessary.  The Philippines would also like the 
proponents to clarify what "other relevant intern ational organizations" they had had in mind when 
suggesting the use of international standards ta king due account of the relevant work of such 
organizations.  Those standard setting bodies might not be those in whose work developing countries 
were able to actively participate, which might prejudice the situation.   
136. The representative of India
 welcomed the new proposals on how to clarify GATT 
Article VIII.  India’s endeavour was to understand and clarify the issues proposed for negotiation.  In 
light of the number of submissions that had r ecently been presented, India would limit its comments 
to the paper by Japan and Mongolia (TN/TF/W/17),  as well as to the papers submitted at the last 
meeting, which the Group had not been able to discu ss in detail.  The intervention by the Philippines 
on behalf of the Core Group was supported.   
137. Japan's and Mongolia's proposal for a periodic review of the appropriateness of the amount 
and the number of fees and charges imposed on or  in connection with importation and exportation 
contained some words which were not amenable to a uniform understanding.  Clarification was 
sought from Japan and Mongolia as to what parameters  would be used to judge the "appropriateness" 
of the amount and the number of fees and charges.  Judging "appropriateness" in terms of cost could 
be difficult.  India would like to know whether it would be on the basis of nationwide cost or related 
to a particular customs station.  Similarly, gr eater clarity was needed on what "periodic review" 
meant.  Would it be a uniform period for all countri es or would the commitment only be in terms of a 
provision for a periodic review with its frequency bein g left for the individual Members to determine? 
138. The proposal to publish fees and charges impo sed on or in connection with importation or 
exportation had already been addressed when discussing similar proposals by other Members.  India had systemic concerns regarding the suggestion to  prohibit the "collection of unpublicized fees and 
charges".  The discussion should be more focused on how  to ensure transparency in the publication of 
fees and charges rather than on setting a low thres hold of mere non-publication of a charge making it 
null and void even though it was otherwise legally valid .  India did not favour the principle of linking 
the legality assessment to a plain transparency threshold.   
139. There was also a general matter that needed to be discussed regarding the issues mentioned 
before.  In the present environment of privatization of ports and air ports, and the setting up of private 
handling terminals and warehouses, there could be a possibility that related fees and charges could be  TN/TF/M/4 
 Page 21 
 
 
in a private domain for some Members and unde r the government domain for others, with some 
Members perhaps having a combination of both.  It was necessary to reflect as to what would be the scope of commitment for publication and periodic revi ew of fees and charges in such cases.  India did 
not have any proposal at the present stage but wanted  to bring the issue to Members’ attention.  
140. As for Japan's and Mongolia's proposal to lim it import and export formalities to the least-
trade-restrictive level, with a view to minimizing the incidence and complexity of import and export 
formalities, the standard of "least-trade-restrictive leve l2 was difficult to implement in concrete terms.  
It was necessary to understand whether the proponent s had any idea as to how in practice that would 
be achieved.  Similar comments would apply for "m inimizing the incidence and complexity of import 
and export formalities".  In the context of GATT Ar ticle X, there were already certain proposals for 
prior consultation before bringing new import and export formalities into force.  The proposal for a 
"periodic review" of import and export formalities based on comments from the private sector and other parties would need to be examined from that pe rspective.  If prior cons ultation was to be a basis 
for bringing into force new import and export form alities, was there a necessity for also having a 
mechanism for a periodic review?  Also, would the periodicity of reviews be left for individual 
Members to decide? 
141. To understand the proposal to use international standards to the extent possible, where other 
relevant international organizati ons had already set up international standards, with a view to 
minimizing the incidence and complexity of import a nd export formalities, it would be very useful to 
have a listing of existing international standard s of other relevant international organizations 
concerning the export and import formalities the propone nts had in mind.  Without that, the proposal 
was unclear regarding the scope and extent of th e proposed commitments.  India however welcomed 
the flexibility built into the proposal through the expression "to the extent possible".   
142. The proposal to conduct documentary examinati on and physical inspection after receiving the 
application without delay was not clear.  It could not be the case that any customs administration would delay examination and inspection of consignmen ts in a routine manner.  On the contrary, all 
customs administrations were expected to c onduct examination and inspection of goods without 
delay.  However, there could be delay in excep tional cases on account of incomplete documentation 
or on account of certain queries raised in connec tion with the classification, valuation or other 
relevant particulars concerning im port and export.  Seen from that perspective, the proposal did not 
seem to suggest any additional co mmitment than what Members already practiced.  India would 
request the proponents to clarify whether that understanding was correct or whether they had in mind 
certain specific elements of commitments to en force that proposal.  It was also necessary to 
understand what was meant by returning documents to traders where no further action was required. 
Such a situation mostly arose where documents had b een withdrawn for investigation and enquiry.  In 
the normal course of import and export, some documents  might need to be submitted as part of a legal 
requirement and might need to be preserved by the authorities for a fixed period of time.  It was not 
clear whether the proposal sought to address both typ es of situations and India therefore requested an 
elaboration on that subject.   
143. With respect to the proposal to introduce pr ocedures for accepting and examining documents 
prior to the arrival of goods to further exped ite import and export formalities, India requested 
clarification of whether that would relate only to customs or to other relevant agencies as well.   
144. As for the proposal on risk management and auth orized traders, the principle to adopt such 
measures was a desirable goal.  However, it would be important that the specific criteria for risk 
management and for authorized traders be left to  individual Members to adopt.  The proposal might 
also require substantial TA&CB for several Members.  It was therefore suggested that a dedicated discussion could be conducted on that subject where those Members which had already adopted a well 
functioning system of risk management and author ized traders could share their country's experience TN/TF/M/4 
Page 22  
 
in designing and implementing those systems, incl uding problems faced and methods adopted to 
continually upgrade them.   
145. The proposal for a one-time submission of im port or export documentation to one agency 
pursued a desirable end but would be very difficu lt to implement for many countries, including for 
India.  It should therefore not be subject to a bi nding commitment, at least for developing countries.  
Implementing that proposal would also require considerable technical assistance.  However, the 
proposal to coordinate the timing and place of phy sical inspection among the relevant authorities to 
the extent possible was useful, and India welcomed the flexibility built into it.   
146. With respect to the proposal to limit impor t and export documentation requirements to the 
least-trade-restrictive level and to periodically re view import and export doc umentation requirements, 
based on comments from the private sector and other parties, India requested a clarification from 
Japan as to whether they had any criteria in mind fo r documentation to be "least trade restrictive" and 
any fixed time frame for the review.  Furthermore,  India wanted to know whether documents were 
based on international standards, and what would be  the value added to having a system of periodic 
review. 
147. Regarding the suggestion to use international st andards to the extent possible, where they 
were set up by other relevant in ternational organizations, to decr ease and simplify import and export 
documentation requirements, it would be useful to  discuss the existing international standards for 
documentation requirements to understand the type of commitment being envisaged. India, however, 
welcomed the flexibility indicated in the proposal by  use of the expression "to the extent possible".   
148. As for the proposal to accept required documents in copies to the extent possible, to reduce 
the time and costs to meet the requirement fo r originals for import and export documentation, 
especially in cases where multiple authorities were involved or where documents were required to 
conduct other procedures, India understood the sugg estion not to uniformly adopt a system of 
accepting copies instead of originals.  It was India' s understanding that it was proposed for those cases 
where multiple agencies required original documents.  For such cases, one would need to evolve a 
system for accepting copies or to have the original do cument issued in more than one copy.  It would 
be difficult to accept a general principle of accepting copies in all cases as original documents were often a requirement in legal proceedings.   
149. India had serious concerns about the proposal to accept a single documentary submission of 
import or export documentation requirements in cases of repeated transactions of the same products, 
and that the exemption of documentary submissi ons for each importation or exportation should be 
permitted.  In the present system of clearance, a goods declaration had to be co-related to the Import 
General Manifest of a particular vessel.  That was necessary for control purposes, both for revenue 
and for port accounting.  The present proposal would weaken that control system.  It would also have serious implications on safeguarding revenue since the rate of duty was presently determined on the 
basis of the date of filing of the goods declarati on.  If the same goods declaration was to be valid for 
several consignments to be imported in the future , it would be burdensome in law and for enforcement 
to collect any differential duty in case there was a change in the duty rate during that period (or a 
refund of additional duties in case of duty reduction).   
150. With respect to the suggestion to clearly state and publish penalty provisions against breaches 
of import and export formalities in relevant laws and regulations, a nd to prohibit the imposition of 
unpublished penalties, it was India' s understanding that penal provisi ons would be a part of the 
customs laws and to that extent it would be clearly stated in the relevant laws.  As those laws as a 
whole were to be given publicity, the penal provisions would also be duly publicized.  Therefore, that 
proposal did not seem to add to the existing transp arency proposals.  Furthermore, India did not 
support prohibiting the imposition of unpublicized pe nalties for the same reasons as stated earlier 
before with respect to unpublicized fees.    TN/TF/M/4 
 Page 23 
 
 
151. Finally, as regards Japan's and Mongolia's propo sal to explain why the authority rejects the 
submitted documents at the application desk, India sought a clearer understanding of the meaning of 
the term "application desk".  Was it the same as th e field level officer assigned with the task of 
assessing duty and would the commitment be limited only to important issues such as the rejection of 
a submitted invoice or technical literature?  Or w ould it also relate to more routine temporary 
rejection of a document on account of rectifiable mistakes such as information being incomplete, 
where such documents were accepted subsequent ly upon rectification of the mistake?   
152. The representative of Bolivia  said that GATT Articles VIII and X had been improved by 
valuable contributions, strengthening principles of non-discrimination, transparency, predictability, 
simplification and reasonableness, although that was a difficult notion to define.  A principle relating 
to expeditiousness should be included as well, whic h should apply to customs clearance, transit and 
the transportation of goods.  
153. Most proposals called for publication of trade nor ms and regulations, and Bolivia shared that 
view.  At the same time, the legal framework of eac h country had to be taken into account.  Some of 
the proposals covered risk management, which should contribute to Trade Facilitation.  However, in 
some cases, especially when it came to landlocke d countries, goods often had to pass through three 
different customs regimes and transit systems, possibly requiring therefore a more rigid risk 
management system.  That should be subject to future analysis.   
154. With respect to the proposal to accept copies of documents rather than originals, clarification 
was required as to what documents were supposed to  be covered by that suggestion and why copies 
were considered to be as valid as the originals.  Bolivia agreed with the vi ew that customs clearance 
was a matter of shared responsibility between custom s and other government authorities.  Bolivia also 
agreed on the need to clarify that only those servi ces actually rendered should be taken into account.  
With respect to S&D treatment, so far proposals focused on longer implementation periods.  Bolivia 
understood that, as the identification of elements for clarification and improvement advanced, the 
S&D principle would have to be de veloped with more specificity.   
155. Bolivia supported Peru's proposal for the Secret ariat to compile proposals to facilitate future 
work.   
156. The representative of Fiji,  speaking also on behalf of Papua New Guinea and the Solomon 
Islands  observed that S&D components and TA&CB ra n through most of the proposals.  Further 
elaboration of those elements was required in the fu ture in line with what was contained in Annex D, 
paragraphs 2 and 5. 
157. With respect to the paper by New Zealand (TN/TF/W/24), Fiji was delighted with its 
introductory paragraph attaching great importance to S&D and TA&CB.  The paper's reference to 
small economy exporters, such as Fiji's, was also appreciated.   
158. As regards the proposal concerning prior  consent,  Fiji would like to hear from New Zealand 
as to how they would see the proposal being implem ented.  Further elaboration of that would be 
extremely useful, although, at the present stage,  Fiji remained rather concerned about it.   
159. The representative of China  said that Members’ contributi ons had led the Group's discussion 
into a more constructive and so lution-seeking mode.  More time, however, was required to study 
them.  
160. With respect to Japan's and Mo ngolia's suggestion of a periodic review of the appropriateness 
of the amount and the number of fees and charges im posed or in connection with the importation and 
exportation, China sought further explanations on th e terms used.  In particular, China wanted to 
know whether the referenced periodic review was supposed to be a self-review as provided for in TN/TF/M/4 
Page 24  
 
paragraph 2 of Article VIII, or whether the intentio n was to resort to the ex isting mechanism such as 
the Trade Policy Review Mechanism (TPRM).  It was necessary to know what agency would be 
entrusted with carrying out the review and through what mechanism.  China would appreciate if the 
proponents could elaborate more on the specific process and parameters for that review.   
161. As for Japan's and Mongolia's proposal to in troduce simplified import and export formalities 
for authorized traders with a high level of complia nce with trade-related la ws and regulations, China 
agreed with the proponents' view that introducing risk management was very important to facilitate 
legitimate trade while maintaining necessary control at the border.  However, China was concerned 
about how to determine which enterprises were qualifie d for high levels of compliance.  If the concept 
was not appropriately defined, it might be used  as an excuse for discriminative treatment.   
162. Regarding the proposal for a one-time submissi on of import or export documentation to one 
agency and Korea's proposal to use a Single Wind ow where traders could submit all the necessary 
documents and data to a single agency, China's expe rience showed that that kind of practice required 
powerful IT support, very close coordination as well as strong consistenc y among relevant border 
agencies.  China was interested to learn about  the proponents’ experience in practising those 
procedures, any specific problems encountered and ways to address them.    
163. With respect to the suggestion to periodical ly review import and export documentation 
requirements based on comments from the private sector and other parties, China would like to receive further explanations on the envisaged process and the criteria for such reviews.  As for the 
acceptance of copies suggested by Japan, Mongolia a nd Korea, China considered documentation to be 
submitted at the border to fall under two categor ies: one for controlling admissions, including 
certificates of guarantee, compulsory identificati on of products, and anot her one for determining 
traders’ rights and obligations, covering contracts, i nvoices, bills of lading and alike.  In China's view, 
it was not appropriate to handle all those documen tations on the basis of one single criterion.  
Secondly, due to the diversity of Members' le gal systems, commercial environment, degree of 
integration and the compliance situation, one would ha ve to be very careful to adopt such a kind of 
measure.   
164. Regarding the establishment and publication of average release and clearance times of goods 
proposed by Korea, China considered it an important  measure for rising the level of transparency and 
predictability of the trade environment and to facilitate  legitimate trade.  Howe ver, the key to carrying 
out that proposed commitment was to establish a commonly acceptable definition of "average time".  
According to China's experience, in most cases, the time needed for clearing and releasing goods 
depended not only on the process of the customs auth orities but also on the process of the other border 
agencies.  Sometimes, it even depended on the proce ss of the private sector.  In assessing the time for 
clearance and release of goods, the whole chain of processing should be taken in to consideration.   
165. As for substantial penalties for minor breaches, the key to further clarifying and improving 
the relevant provisions of Article VIII was to provide appropriate definition for minor breaches, 
hopefully including illustrative lists.  At the same time,  the definition of parame ters for the substantial 
penalties should be given to avoid incidence of imposing substantial penalties for minor breaches.    
166. The representative of Brazil
 said that Brazil would favour an  advance rulings procedure and 
saw merit in examining an institutionalization of th at practice.  In particular, Brazil favoured the 
Canadian suggestion for the authorities to maintain  the possibility to revoke a decision if conditions 
changed, which was essential.    
167. With regard to a review of fees and charges, Brazil also saw merit in some of the proposals 
and stood ready to explore the EC's idea of work on an illustrative list of permissible fees.  One 
should focus on such an illustrative list rather than work on the fees that were not allowed.  With 
regard to the simplification of documents and standardization, Br azil had some doubts.  There was  TN/TF/M/4 
 Page 25 
 
 
merit in first looking at the WCO Data Model or the UN Layout Key, but as a reference, without 
agreeing on any binding models to be used worldwide.   
168. Clarification was needed on the proposal to establish a Single Window.  It was one thing to 
have a Single Window to present information, but  quite another to agree on one Single Window 
agency, which would require a complete restructuri ng of a country's internal system of customs and 
other agencies involved.  Brazil wondered how that  was supposed to be implemented.  Was the 
intention to create a new agency or was it envi saged to create it out of the existing agencies, 
concentrating the assessments by those different bodies?  Brazil did not see that as adding value and 
as facilitating trade. Rather, it would add another layer of bureaucracy in the process.  Brazil currently had one single channel for the information to be registered, but the answer was forwarded by each 
separate agency responsible for assessing and treating the information, which seemed more efficient.  
A recent OECD study had pointed out that only two countries in the world currently had a Single Window agency, and it had been recognized even by a proponent that a  number of Members would not be in a position to do so.  Brazil was ready to discuss the issue further, but would favour an agreement on a Single Window to present  the information rather than treat it.   
169. Brazil supported the request by Venezuela, Pe ru and Bolivia for the Secretariat to start 
working on a compilation of the different proposals, but suggested that the compilation took into account the current provisions of all WTO Agreemen ts, such as the ones on Import Licensing, Rules 
of Origin, Pre-shipment Inspection and Customs Valua tion, to make sure that there was coherence and 
no duplication of activities.   
170. The representative of Nepal
 said that, while it was good to note that a number of proposals 
had come up on a variety of issues, it was not easy to analyse their implications for a country such as 
Nepal.  No one disputed the significance of Trade F acilitation.  Nepal's main concerns related to the 
cost implications for LDCs and their limited cap acity to sustain measures to facilitate trade.    
171. Substantial financial a nd technical assistance for capacity building as envisaged in the July 
Package was therefore a prerequisite for LDCs in th at process.  Furthermore, the conceptual approach 
to Trade Facilitation should be confined to the agreed parameters, taking into account the real 
development value, the existing implementation capacities and the support from the international 
community in that context.  It was fundamental to limit work to the scope id entified by the modalities, 
keeping in mind the development di mension of the negotiations.   
172. The representative of Trinidad and Tobago  viewed the large number of proposals as 
indicative of the high-level of engagement Me mbers had shown in the Negotiating Group and the 
importance given to the negotiating process.   
173. Trinidad and Tobago associated itself with the st atement made by the Philippines on behalf of 
the Core Group.  There were common threads runn ing through the various proposals.  One such 
element was the absence of any elaboration on tech nical assistance or concrete S&D offers, although 
they were integral elements of the Group's work.   
174. With respect to the proposal made by Japan and Mongolia in paragr aph five of document 
TN/TF/W/17, Trinidad had concerns similar to th ose expressed by India.  They related to the 
parameters to determine the appropriateness of fees and charges imposed.  Clarification was also sought on the procedure envisaged for carrying out th e proposed periodic review.  It was necessary to 
know whether such a review would be limited to the national authority or whether it involved a body 
in the WTO.   
175. Trinidad and Tobago was thankful to Uganda for having brought up the issue of 
consularization and  related fees.   In that context, Trinidad and Tobago wished to underscore the TN/TF/M/4 
Page 26  
 
importance of Members highlighting their individual experiences with respect to the challenges they 
faced, as well as regarding their successes in im plementing measures to facilitate trade.   
176. The representative of Antigua and Barbuda
 said that the proposals generally seemed to head 
towards the right direction.  Be ing a small island heavily dependen t on smooth and streamlined trade, 
Antigua and Barbuda placed great importance on Trade Facilitation.  Some of the proposals were of 
great importance to Antigua.  More elaboration on technical assistance and S&D issues was however 
required.  The current references to those elements  had to be fleshed out more in terms of how to 
actually apply them.  Countries' different levels of  development had to be taken into account.  Many 
of the proposed procedures were already in place in  some of the proponents' countries, while they 
would have to be set up in other countries,  as they were at lower levels of development.  Those 
differences had to be taken into consideration.  It was also necessary to consult more with developing 
countries on their needs to meet so me of those requirements.  Full participation by all Members was 
required to allow for the necessary full discussion of those measures first.   
177. With respect to the proposal by New Zealand on the right to comment on proposed customs 
rules and procedures (TN/TF/W/24), it would be interesting to see how that all worked.  It was 
difficult to envisage how that could be applied in some countries.  
178. Antigua and Barbuda had concer ns regarding the measures proposed on fees and charges in 
document TN/TF/W/23.  It was necessary to take a closer look at that.  Some of those fees were revenue issues, while others were not.  It was also necessary to look at the proposal on the release of 
goods contained in document TN/TF/W/21.  Some of the suggested measures required additional 
costs due to countries' different levels of deve lopment, which had to be  taken into account.   
179. The representative of Colombia
 considered it useful to think about a way of analyzing the 
proposals which would facilitate their understanding and help in identifying common elements.  It 
would further facilitate feedback from capitals, which would improve the participation in the 
negotiations and allow to check the proposals agai nst national realities and assess the possibility to 
accept the suggested measures.   
180. With respect to technical assistance and capac ity building, two inte rpretations had been 
offered. Some delegations had stressed the need to  better develop and specify those elements in the 
proposals.  Others had stressed the contributions th e proposals made in that regard.  Both comments 
deserve to be taken into account.  In that context,  Colombia wished to recall a previous comment on 
the need to begin working on a coordination mechan ism with other intergovernmental organizations 
involved in providing technical and financial assistan ce.  Information on the conditions of  the offer in 
the area would facilitate the identification of Members'  needs to meet requirement s more effectively.   
181. With respect to the proposals on advance ruli ngs, Colombia provided such rulings on customs 
classification since 2000.  The experience with such  rulings had been very positive in improving 
predictability and reducing the amount  of discretion of customs officials in the clearance process of 
goods.  Columbia was also making progress in developing its information and publication 
methodologies.  In that context, Colombia sought  further details on Korea's proposal to create a 
national coordination center implying the establishmen t of a Single Window to reply to questions.  
Colombia wondered whether the proposal was one fo r a virtual office, a physical center or a call 
center.  If Korea's proposal was one for a virtual office, the computer systems would need to be adapted in the various agencies in order to gu arantee coordination between them and with the 
commercial users, which would require financial resources to be allocated.  
182. Colombia was also making those ideas compa tible with the implementation of a Single 
Window for foreign trade, supported by electroni c means, which the Colo mbian authorities were 
hoping to implement before the end of June.    TN/TF/M/4 
 Page 27 
 
 
183. Colombia shared some of the ideas suggested by Japan, Mongoli a, Chinese Taipei and Peru, 
particularly on the possibility of submitting im port and export documents , to have a one-time 
submission and a single office, and to have the p hysical inspection of goods take place at the same 
time by all the competent authorities.  It was a very useful idea to have periodic reviews of the fees 
and charges and the procedures and import and export requirements, taking into account the 
observations made by the private sector and other pa rties involved in foreign trade.  Colombia's 
legislation contained simplified import and export re quirements for regular customs users.  Colombia 
also supported the proposal on risk management for authorized traders.   
184. The proposal by Canada and the United States would be considered in more detail once 
Colombia had checked them against its current legi slation.  The advantage of allowing clearance of 
goods pending the conclusion of a proceeding should be weighed against the financial costs which 
would be incurred in setting up securities, particularly for SMEs.   
185. New Zealand's proposal to establish objective criteria  for advance rulings in the area of tariff 
classification was very good.  It would indeed be useful for all countries to use the HS system.  
Nevertheless, it was important for the WCO to illust rate the costs that would be incurred and the 
advantages that would be gained for adhering to that Convention.  As for reducing charges and 
administrative burdens, Colombia shared the view on its importance, but wished to know in more 
detail how it was envisaged to implement that.  Colombia shared the concern on the proposal to 
handle comments and observations on customs rules and procedures.   
186. The EC's and Australia's proposal to review and, if necessary, consolidate or reduce the 
number of fees and charges connected with imports in order to make them more efficient, was useful.  
However, Colombia was of the view that that pro cess would require time and resources, especially in 
order to fully justify those fees and charges.   It was not entirely clear on what basis the envisaged list 
of  permitted fees and charges would be drawn up.  The joint proposal fro m Uganda and the United 
States on consular fees could be considered in that  context, taking into account the contribution of 
those fees to government revenue in some countries.  
187. The representative of Mexico  said that the submitted docum ents were valuable and had 
helped Members think about their needs in trying to develop the TF negotiations.  Some of the comments would help the Secretariat come up with common elements that could assist Members with their tasks.   
188. Japan's paper contained interesting proposals to help Members resolve problems faced by 
international traders at customs.  Some of the pr oposals on excessive fees connected with importation 
and exportation  were already applied in Mexico because under Mexican legislation, it was necessary 
to publish all information connected with any fees or customs charges on import and export 
requirements in Mexico's Official Journal and in a common newspaper.  As regards import and export 
requirements, Mexico's policy was to simplify as mu ch as possible the use of necessary documents for 
importing goods.     
189. As for pre-arrival clearance of goods, Mexico currently studied such a measure but did not 
have a date yet for implementing such a requireme nt.  Nevertheless, Mexico could give favourable 
consideration to the Japanese proposal even if not all measures suggested in the document had been 
implemented yet.  Mexico was improving technologies for it to be possible in the near future to adapt all procedures to international standards.   
190. The representative of Costa Rica
 said that the structure of the submitted documents allowed 
Members to deal with the various issues conne cted with the modalities.  One could see some 
convergence in the issues dealt with in the proposals.  There might be  some differences in terms of 
their scope or content, but they were all pointing in the same direction and were based on the same 
principles.  Costa Rica supported improved disci plines under GATT Article VIII in an attempt to TN/TF/M/4 
Page 28  
 
resolve shortcomings and simplify import-export documents with the vi ew to reduce costs and comply 
with requirements in international trade.  Memb ers should take into account in their procedures 
existing  international standards such as t hose referred to by Korea and Japan.    
191. With respect to the publication of import-expor t documents, Costa Rica agreed with measures 
to simplify and make requirements more predictabl e.  That should not be restricted to customs 
procedures but should take into account all border procedures and controls as mentioned in Japan's 
and Mongolia's document.  Those proposals were pa rticularly aimed at SMEs, which had problems 
with import and export formalities being extremely complex and costly, which restricted their 
opportunities in gaining access to new markets.  It also limited the already restricted human and 
financial resources of such small economic enterpri ses.  The number of administrative burdens should 
therefore be restricted to facilitate trade, and the complexity of administrative burdens reduced to the 
extent possible.  Members should also limit th e number of requirements for import and export 
documents to reduce and simplify burdens.  The prin ciple of Trade Facilitation should be applied to 
those documents, as with respect to the application of fees and charges, which should not exceed the 
cost of services rendered, as prescribed by paragraph 1 of Article VIII.   
192. Risk management mechanisms were very valu able for facilitating and simplifying procedures 
for the clearance of low-risk goods, and for im proving procedures for high-risk goods.  Members 
could consider basing inspection and clearance procedures and a posteriori  control on risk 
management principles to avoid having to inspect ev ery consignment in great detail.  The possibility 
for customs authorities to make more extensive ch ecks should also be possible, where necessary.  
Costa Rica supported any way of facilitating trade in the multilateral framework.  Modern customs 
should be capable of establishing risk management controls and automatic procedures, physical and 
document requirements should be methodical and carried out in a scientific manner.  Costa Rica had not introduced control systems based on risk manage ment yet but used procedures and standards in 
customs based on selection criteria, with a computer ized system determining which goods should be 
subject to immediate controls.  Costa Rica's legisl ation required for verification procedures not to be 
based on subjective criteria.  They should not be up to the discretion of the official.  In the near future, 
Costa Rica intended to introduce those standards base d on risk management.  Implementing that kind 
of measure did not necessarily require major reforms in  the laws of each country.  Laws were flexible 
enough to implement those kinds of proce dures where costs were not enormous.   
193. Costa Rica also supported the one-time submis sion of documents to a Single Window, as 
proposed by Canada, Australia, Korea and Japan,  and the ideas to simplify import and export 
requirements.  Such a mechanism could make qua litative and quantitative improvements in terms of 
simplifying export and import formalities and offere d users a standardized process in dealing with 
import and export procedures, which would reduce the time and cost involved for commercial 
operators.  Costa Rica had implemented such a me asure, and the system had helped to make 
quantitative and qualitative improvements.  It had si mplified operations, partic ularly for exports and 
imports.  There were offices and branches in every cu stoms office in the country with a direct counsel 
of private and public sector advisers helping to im prove the system even more.  The system was not 
controlled by a single agency independent of the va rious institutions dealing with border controls, but 
they had been coordinating it themselves.  In cen tralizing procedures in one Single Window with 
representatives from the Ministries of Health, Agri culture and Foreign Affairs, Costa Rica had 
managed to cut waiting times to a maximum of thirty minutes.  
194. A few months ago, Costa Rica had introduced a ne w feature to the system in an attempt to 
make it more flexible and help develop import- export procedures, and simplify them.  The main 
purpose was to allow sectors to carry out procedures automatically.  They could do it 24 hours a day, 
365 days a year.  In recent years, Costa Rica had tried to apply that kind of measures, first without automatic systems, and then recently using automa tic procedures, which facilitated the process even 
more.  Canada's proposal raised some elements wh ich could be steps forward in establishing that kind 
of measure: contact between agencies, coordina tion between requirements, coordination between  TN/TF/M/4 
 Page 29 
 
 
operational aspects.  As Korea indi cated, it was essential to take in to account that not all Members 
were in a position to establish such a mechanism.   Costa Rica had initiated the process with great 
determination, but recognized that there were difficulties for other Members.  There should be 
progressive implementation.   
195. As for prior processing of clearance of goods, one of the concerns frequently expressed by the 
private sector was that customs required the physical presence of goods as a conditio sine qua non  to 
authorizing clearance.  As Japan and Mongolia me ntioned, introducing mechanisms for accepting 
examining documents before arrival of goods, should be one of the main objectives of the 
negotiations to make import and export proce dures more flexible.  Costa Rica already allowed 
customs declarations on importation and exportation to be made before th e arrival of goods at 
customs.  That made export procedures easier, provided that the other requirements were met.   
196. The use of electronic means for dealing with data on consignments from transport companies 
when available was another instrument which he lped to make export and import procedures more 
predictable and helped that to be done before the arrival of the goods.  In te rms of import procedures, 
those measures had helped to improve the flow of goods and had allowed user s to have the goods as 
soon as they arrived in the country.  As for the ac ceptance of copies, that was less important when 
introducing electronic means of dealing with goods.  The use of a Single Window would also mean that the use of copies would no longer be relevant.   
197. Costa Rica supported the EC's proposal on fees and charges and agreed with the publication 
of fees and charges.  At the same time, it was r ecognized that adequate criteria would have to be 
established for deciding upon that.    
198. The representative of Hong Kong, China
 was encouraged by the number of proposals and the 
fact the their sponsors included several developing Me mbers.  It reflected Member's recognition of the 
importance and benefits of Trade Facilitation, th e promotion of which was best achieved by the 
reduction – if not elimination – of fees and formalities restricting trade.  That particular area was also 
the core issue GATT Article VIII aimed at.  The proposals should inject real business sense and 
commercially meaningful benefits into Article VIII.  In that regard, the top priority should be to 
reinforce the principle of necessity and least-trade -restrictiveness in Article VIII.  Hong Kong, China 
was glad to note the reference to that key elemen t in submissions by Japan, Mongolia, Peru, Chinese 
Taipei and New Zealand.   
199. Many delegations had put forward comments a nd questions, highlighting issues of common 
concern to all Members.  With respect to the proposals on consularization, Hong Kong, China had 
supported work on that problem since the early days  of the WTO.  The only notification under the 
decision on reverse notification on non-tariff measures in the Co mmittee on Market Access was from 
Hong Kong China and it concerned th e matter of consularization.   
200. Other mentioned ideas worth exploring further were the release of goods against guarantee, 
harmonization and standardization of data and documentary require ments, use of international 
standards, pre-arrival processing of customs inform ation, risk management, authorized traders and 
others.  They were all valuable and pragmatic id eas to facilitate trade and would reduce not only 
business costs but also administrative costs on the part of the governments.  Hong Kong, China 
therefore encouraged Members to carefully consid er those proposals and see how improvements to 
Article VIII could be made.  It was the business co mmunity whose interests were at stake with the 
business sector of developing Members also having a great interest in those matters.  Hong Kong, 
China therefore encouraged developing Members to  come forward with proposals and to provide 
comments to the proposals already tabled.    
201. The representative of Norway  said that all proposals reflected  the need for transparency.  
Transparency in rules and regulations as well as regarding fees and charges was of great importance TN/TF/M/4 
Page 30  
 
to both traders and the authorities.  Making rules and procedures simple and predictable and easily 
available to authorities and traders was a cornerstone in Trade Facilitation.     
202. The documents from Korea, the EC, Australia, Ja pan, Mongolia, Uganda and the US all dealt 
with different aspects of the issue of fees and ch arges which was very important as well.  Norway 
particularly wished to highlight the need for transp arency in applying those fees and charges.  In 
addition, clearer regulations on the utilization of consular fees were important for many traders, 
particularly the smaller ones.  The contributions on fees and charges helped to assess the problem in a 
constructive way, leading to a better unde rstanding of the improvements needed.   
203. Concerning the need for standardization of do cuments and the information to be given, 
Norway also saw the advantages of applying certain  global standards.  In the EU and in the EFTA 
countries, a "Single Administrative Document" (SAD) had been in use since 1988.  The document had 
multiple uses.  It was used as a transit document as well as for import and export declarations.  There 
was also a standard proof of origin in the EUR.1 certificate and the GSP Form A.  That "standardization" had been very useful both for traders and the authorities.   
204. The Canadian proposal on "Border Agency C ooperation" was an area where Norway also had 
some experience as far as customs was concerned.  The Nordic countries did the work for each other.  
For instance, when goods were exported from Norw ay, usually a Swedish, Finnish or Norwegian 
customs office did all the work related to both ex port from Norway and import into the EU, or from 
the EU (Sweden or Finland) into Norway.  That cooperation had continued after Sweden and Finland 
had joined the EU.  Also in the EEA agreement between EFTA countries and the EU, the cooperation 
between border agencies and "the one-stop principle" was foreseen in a separate protocol on 
simplification of border formalities.  The protocol  covered all aspects and possible controls to be 
carried out with regard to the cross-border movement of goods.  Norway's experience with that kind 
of cooperation was quite good as it saved time, m oney and man-power for both the border authorities 
and the economic operators.   
205. Norway had not yet developed a full fledged "Single Window", but would encourage further 
discussions on the issue in the negotiations, as it could be a very useful tool in facilitating trade and 
cross-border traffic.   
206. So far, the proposals were mainly related to Articles VIII and X.  More proposals on Article V 
were due to follow.  While some of the proposals were  of a more general nature  and others were more 
specific, they all clearly demonstr ated that the Group was moving into a more in-depth dialogue with 
regard to clarifications and improvements of the GATT Articles under discussion.  Taken together, 
they pointed in the direction Norway wished to move.  
207. The representative of Thailand
 welcomed the new proposals, which were good contributions 
to the process.  Although very little  time had been given to study th e many proposals for the meeting, 
Thailand had a few preliminary comments and requ ested clarification on a number of points.  
Regarding the acceptance of copies of documents  suggested by Korea in document TN/TF/W/18, 
Thailand would like Korea to draw up a list of docum ents of which copies should be accepted.  Many 
Members had already indicated their concerns regarding that matter.  
208. With respect to Canada's document TN/TF/W/ 20, Thailand would like Canada to further 
clarify paragraph 4 (b), especially its section (ii).  Thailand wished to know the meaning of "a single, 
shared physical infrastructure in which the neighb ouring countries' customs services operated side by 
side" and wondered about the terms "physical infrastructure" and  "single shared".  In Thailand, the 
borders with neighbouring countries were divided by a river so that, physically, the custom officers 
had to be situated on both sides of the river. Therefore, Thailand wished to know whether the suggestion for a single shared physical infrastructure was one for one single building to be shared by 
the customs offices from both sides as was the case at the border between France and Switzerland.   TN/TF/M/4 
 Page 31 
 
 
That would be difficult to implement for Thailand du e to its geographical situation. More time was 
needed to study all the proposals.  
209. The representative of Indonesia  stressed that the work of Negotiating Group and its outcome 
had to be relevant to the development needs as set out  in Annex D of the July Package.  Indonesia also 
wished to reiterate its concern about S&D treatm ent, financial and technical assistance and capacity 
building being integral components of any review a nd clarification of GATT Articles V, VIII and X.   
So far, it seemed that the tabled proposals neither c ontained any definitive or concrete S&D offers nor 
financial and technical assistance components.  It was important that such components were 
integrated into each and every proposal. 
210. With regard to the EC suggestion for "a provision requiring Members to publish and make 
easily available, on a non discriminatory basis” a number of measures and information (TN/TF/W/6), 
Indonesia wished to have clarification on the meani ng of “make easily available” and on what kind of 
standard should be fulfilled.  Furthermore, in para graph 3, the EC proposed a requirement to consult 
interested parties as an improvement to Article X. Indonesia already had an internal consultation 
mechanism with all stakeholders before intr oducing legislation or regulations. But Indonesia 
supported the statement by the Philippines on behalf of the Core Group expressing serious 
reservations about having to c onsult and offer prior comment rights to other WTO Members as a 
matter of multilateral obligation before introducing new legislati on or regulations domestically. 
211. With respect to the recent proposal by Japan and Mongolia on the periodic review of fees and 
charges (TN/TF/W/17, paragraph 5) Indonesia was of the view that such a measure would represent a 
burden in terms of increasing cost or administration.   Indonesia also sought clarification on the precise 
scope of the fees and charges targeted in that context.  While such a mechanism would benefit 
Indonesia's policy, it would also lead to an administrative burden for the port authority.  Regarding the suggestions made in paragraph 1 (d) on substantial penalties for minor breaches, Indonesia wondered 
whether that was indeed necessary, provided that traders were given the opportunity to correct minor 
breaches before submitting customs declarations. They  had a chance to consult with the customs desk 
with regard to customs formalities  for clearance and  release of the goods or services.  Therefore, 
Indonesia did not differentiate between unint entional and intentional minor breaches.  
212. Korea's proposal on the establishment of a Single Window (TN/TF/W/18) was a good 
concept which would increase Trade Facilitation effo rts tremendously. However, it was very costly, 
and also involved the use of high technology, creating a burden for developing countries. Indonesia further shared India's concerns regarding fees and charges which were not merely under 
government/public domain but also involved the private sector. 
213. The representative of Switzerland
 said that the tabled proposals all contributed to clarifying 
and strengthening Articles VIII and X.  
214. The submissions by Australia, Canada and the US  on the provision for collateral or monetary 
security touched upon a matter that one should pay pa rticular attention to as being one of the most 
efficient ways to accelerate customs clearance. Sw itzerland fully supported a ll elements contained in 
those submissions.  In countries without a separa tion between executing customs obligations (and the 
payment of duties) from the effective clearance of goods, the customs clearance of imported goods was subject to regular delays.   
215. Separating those processes implied the use of real or monetary guarantees.  Such a measure 
was well-advised in the cases mentioned by Canada in  paragraphs 2 a) and b) of its submission, 
namely, when a problem of taxing arose (e.g., a laboratory test was necessary to determine the 
specific classification), but also when goods were  imported for inward processing or were permitted 
temporarily.  It was also a suitable means in the procedures for express shipments.  In Switzerland,  
securities were also applied with authorized traders when they pr eferred to make their payments TN/TF/M/4 
Page 32  
 
monthly upon invoice.  In those cases, the security ensured due payment.  It allowed enterprises to 
save administrative costs.  In Switzerland, in the case of temporary taxation, goods could be cleared if 
the customs duties were guaranteed at the highest ra te applicable, according to their type.  Thus, the 
system was without prejudice for the collection of due payments. 
216. Switzerland agreed with Pakistan that many countries knew already a system which allowed 
for the use of guarantees, but without it being an chored in laws and regulations governing customs 
procedures.  Thus, traders had no assurances that the procedure would be applied.  Swiss legislation 
knew those procedures with every person presenting the required documents being able to benefit 
from them without, however, being required to do so . However, in case of problems, goods remained 
blocked and could not be removed before customs released them. 
217. As for Chile's concern about that system discouraging traders to use other procedures to 
facilitate customs clearance, such as preliminary no tice, Swiss experience had shown that that was  
not really the case. A mix of mechanisms could be observed. With regard to SME exporters, it had to 
be noted that the guarantee was made in the country of importation.   
218. The deposit of guarantees played a crucial role in  transit, notably with regard to the TIR 
Convention, but also regarding othe r similar agreements.  The Conven tion contained useful measures  
allowing to gain an idea of the required framework to be put in place to have the system work.  In the 
case of transit, guarantees were generally made in the country of departure. 
219. With respect to the submission from Austra lia and the EC, the submission from Chinese 
Taipei and the paper from Uganda and the US on diffe rent aspects in relation with fees, there was no 
doubt that the use of fees and charges was of great  importance.  The main point was that fees and 
charges should be related to the approximate cost  of service rendered and therefore cold not be 
calculated on an ad  valorem  basis. In Switzerland, for the bulk of payments, a definite fee was 
foreseen, based on the approximate costs of the serv ice rendered. For the rest, a time-based fee was 
indicated.  Different services were listed, specifying th at they shall not be subject to any tax.  That 
concerned most of the daily current operations.  Sw itzerland’s  legislation also made it possible to 
have a flat rate for similar or repetitive operations, which also streamlined administrative procedures.   
220. Switzerland appreciated the submission by Uga nda and the Unites States and found it strange 
that the recommendations to eliminate consular f ees had never been implem ented.  Switzerland did 
not have any consular fees.   
221. Canada’s submission on border agency coordina tion could contribute to Trade Facilitation, 
especially regarding the coordination of procedures  and formalities.  Coordination should include 
simple measures such as  shared infrastructure and opening hours.  Switzerland also supported 
Norway’s intervention.  
222. Korea’s submission covered five extremely im portant points which could clarify and make 
Article VIII more efficient.  Switzerland agreed w ith the ideas laid out in that proposal.  Switzerland 
found it useful to specifically state how to  achieve objectives such as harmonization and 
standardization of documents.   
223. The paper by Japan, Mongolia, Chinese Taipei an d Peru contained important points which 
could clarify Articles VIII and X.  Like the EC submission TN/TF/W/6, that submission set up strong 
provisions which would enable to avoid an abuse by th e authorities in applying fess and charges.  In 
Switzerland, any fees levied by the authorities in goods transit were already set out in laws.  Switzerland appreciated that the contribution high lighted the usefulness of using international 
standards.  A useful instrument in that rega rd was the United Nation's Compendium of Trade 
Facilitation Recommendations which c overed not only their recommendations but also those of other 
competent bodies such as the WCO or the ITC.   TN/TF/M/4 
 Page 33 
 
 
224. Regarding the use of international standards,  one would have to c oordinate between all 
interested parties to ensure optimum harmonization.   Ideally, there should be one single international 
standard.  As for the suggestion to accept copies of documents, especially when several agencies were 
involved, it would be interesting to hear more.  It seemed that the le gal base for that type of change 
did not exist.  It was necessary to know for whic h types of formalities copies would be sufficient and 
where originals would be indispensable.  As for the paper’s proposals regarding penalties for minor 
breaches of regulations, Swiss sanctions could be found at the end of the applicable laws and 
regulations.  The scale of applicable fines could also be found with their minimum and maximum 
amounts, depending on the gravity of the situation.  The obligation to explain the reasons for rejecting 
documents seemed to constitute an obv ious necessity in all countries.   
225. New Zealand’s submission raised the extremel y important point of the use of an objective 
system for the classification of goods.  The HS allo wed for a logical classification of goods according 
to outlined criteria.  The Harmonized System  Committee had drawn up explanatory notes, 
classification opinions and other opinions for the interpre tation of the HS. Work in that area had to be   
consistent with the activities by the WCO.  Th e proposal on how to make the simplification of 
currently applied formalities operational would enable Members to come closer to the realities in the 
field.   Successive reductions of the number and di versity of documentation a nd taxes and fees in line 
with international recommendations in that ar ea was an idea meriting further discussion.   
226. Switzerland also largely shared the view s expressed in the Chinese submission.  
227. The representative of Sri Lanka  said that while a second wave of proposals had been received 
with even more proposals to come, the cost and im plementation implications of the earlier suggestions 
presented at the last meeting were yet to be analy sed.  As already mentioned by Nepal, it was not an 
easy task for small delegations to analyse those proposals.  The new proposals seemed useful but 
needed closer examination and assessment. Sri Lanka generally supported the papers' basic thrust of 
attempting to introduce improved disciplines to facilitate trade, simplify export and import 
formalities, reduce costs and avoid unnecessary proce dures, as access to information and delays were 
costly for SMEs.   
228.  Measures to discipline fees and charges to ensu re their limitation to the cost of services 
rendered were a useful idea.  Japan's and Austra lia's ideas on that matter were worth looking at 
positively.  Consularization and legalisation en tailed costs and procedures which were really 
cumbersome for SMEs, and therefore had to be a ddressed in the negotiations, particularly from the 
perspective of those enterprises.  Border agency coordination could make life easier for many of Sri 
Lanka's business communities as well.  The Single Wi ndow idea, if it could be achieved, was useful, 
but not many developing countries had the capacity to  do so.  While Sri Lanka welcomed any support 
for such system, the problem was whether releva nt TA&CB would be forthcoming. There were 
technological issues and other infrastructure issues which had to be addressed.   
229. The representative of India  commented on the proposals presented at the last meeting, stating 
that, as regards Korea’s submission TN/TF/W/7, India had serious concerns on the proposal to 
increase the scope of ‘prior comment’ to include ev en other WTO Members. Prior consultation should 
be limited to domestic consultations only.    
230. As for Canada's and the Unites States' proposals on advance rulings (TN/TF/W/9 and 
TN/TF/W/12), India recognized that a system of ad vance rulings could lend greater predictability to 
the trade regime and would thus advance the caus e of Trade Facilitation. However, it had to be  
carefully considered whether it could be covered under the scope of GATT Article X, which dealt 
with the publication of rules and regulations of general application rather than for specific cases, as 
was the case for advance rulings.  Members also had to carefully consider the coverage of  
commitments under advance rulings.  A coverage of tariff classification and applicable rate of duty 
could be a relatively easier objective.  There, the only note of caution India wished to sound was that TN/TF/M/4 
Page 34  
 
rulings for the rate of duty would be valid only on th e date of giving the ruling and could be subject to 
change if subsequently there was a statutory cha nge in the duty rate.  More importantly, India had 
concerns regarding the suggestion to include elem ents like customs valuation and duty drawback in 
the scope for advance rulings.   Regarding the pro posal to make advance rulings publicly available, 
India would seek clarification from Canada whether th at was expected to be in terms of putting it on a 
website or something more.  Regarding non-publi cation of confidential information, India would 
request Canada to give some illustrative examples  of the kind of information that could be kept 
confidential.  India also sought clarification on Canada’s proposal to identify situations where 
customs administration could decline to issue advance ruling.  India would like to know whether the proposal was to identify such situations during the ne gotiations, or whether that would be only at the 
level of broad principles, with it being left at th e discretion of the individual administrations to 
identify such situations. 
231. As for the proposal by the US and Chinese Taipei on express shipments (TN/TF/W/15, 
TN/TF/W/10), India requested clarification on the scope of the term "express shipment".  India also sought clarification from the US as to why they propo sed to have no weight or value restriction for an 
express shipment.  Such restrictions could be a result of the domestic risk assessment or even 
infrastructure constraints.  It would therefore be India’s understanding that individual Members would 
need to be given flexibility regarding the goods e ligible for clearance as express shipment and also 
regarding restrictions that could be imposed for extending the facility of express shipment.  India also did not favour setting time limits for clearance of express shipments.    
232. Regarding the US proposal on fees (TN/TF/W/14) , India would need greater clarity on the 
types of fees and charges Members were discussing in  the course of the negotiations.  For instance, 
there were several types of charges imposed by one agency, namely ports, such as  (i) charges levied 
by the ports (wharfage charges on im port and on export, demurrage charges) or (ii) charges levied by 
port trusts to shipping lines (vessel charges, bert h hire charges, crane handling charges, tugging 
charges, container handling equipment charges, traile r charges, port trust labour charges or destuffing 
and stuffing charges). Some of those charges were  levied by port authorities, which were under 
government control.  However, there were increasing  numbers of private ports and private terminals 
whose charges might not be under government control.  India needed to have greater clarity on how to 
address such diverse situations.   
233. On Chinese Taipei’s proposal for the introduction of risk management (TN/TF/W/10), India 
had already made certain observations with refe rence to Japan’s proposal (TN/TF/W/17) and that 
would hold good there too. Regarding a post clearance audit system, there had to be flexibility in 
taking on any commitment.  Often, an importer mi ght not have a permanent office for a long enough 
period to be subject to periodic audit at their office.  SMEs might find audit at their premises burdensome.  In view of those considerations, th ere was a need for flexibility in any commitment 
concerning post clearance audit. India also n eeded clarification on Chinese Taipei's proposal 
regarding setting up a ‘one-stop service centre’ at  every clearance station. The proposal did not 
specify the range of services that would have to be  required to be provided at such centers. India 
sought greater elaboration of that proposal. India w ould particularly like to understand whether it was 
expected to take place in the nature of a Single Window for filing documents and obtaining 
clearances.  
234. With respect to the paper by Japan, Mongolia and Chinese Taipei (TN/TF/W/8), India 
reiterated its observations on that pa per made during the last meeting.  Elaboration was needed of the 
scope of the proposal to publicize decisions and ex amples of customs classification. Did the ‘decision’ 
mean only judicial decisions or something more ? India would like to understand what the term 
‘examples of customs classification’ meant. India also had concerns regard ing the suggestion to ban 
the collection of unpublicized fees. India had alr eady stated its concerns on that issue in the  
comments on Japan’s Paper (W/17).  One shoul d only discuss positive commitments regarding 
publication and ways to ensure their implementation.   TN/TF/M/4 
 Page 35 
 
 
235. India also sought greater elaboration of the proposal to publish standard processing periods 
for major trade procedures. India requested clarific ation of the term “major trade procedures”. How 
were Members expected to calculate the standard  time period? The time for the clearance of goods 
was a sum of the time taken by various actors af ter the goods arrived in the docks, including time 
taken for unloading the goods, time taken in filing  the relevant documents by the shipper and the 
importer; time taken by customs and by any other relevant agencies  in processing the documents and 
examining the goods wherever required, time taken for duty payment by the importer. Which of those 
elements were expected to be pub licized? India also sought clarification regarding the use of the term 
‘imposing trade related restrictions’. Some discu ssions had taken place rega rding giving objectives for 
introducing a new trade ‘procedure’. Did that propo sal have the same intention or did it aim at 
something different?  India had reservations regard ing the proposal to publish a summary of trade 
regulations.  Such a summary might not give a comp lete picture and might at times be prone to an 
interpretation different from that of the main re gulation. Regarding the suggestion to publish the 
legislative purpose of prospective trade-related la ws and regulations, India proposed that to be in 
terms of a best endeavour clause through the use of the expression, ‘to the extent possible.’   
236. At the last meeting, India had suggested more  deliberation regarding the structure, location 
and number of enquiry points. On the proposal to set up enquiry points in line with the existing 
enquiry points in the SPS and TBT Agreements, it w ould be India’s preference not to duplicate the 
work of the existing enquiry points. Further, it was India’s assessment that the creation of a single 
enquiry point would be very burde nsome and perhaps not effective. India’s suggestion was to provide 
for the creation of separate enquiry points to deal with relevant issues such  as customs procedures, 
licensing procedures, health procedures, phytosanitary  procedures, etc. India also requested greater 
clarity on the proposal to ‘explicitly state the requi red trade procedures in the relevant laws and 
regulations’. Laws were normally part of the main legislation and procedures were often incorporated 
as part of subordinate legislation, like a regula tion.  It was India's understanding that putting both 
aspects in a single legislation might not always be practical. The ends of transparency would be met if 
the procedures were also published in the same manner as the laws.  
237. India also sought greater clarification on the pr oposal to establish a central function within the 
government which had the primary r esponsibility to interpret trade re gulations such as those relating 
to customs classification and valuation. Interpretation of trade regulations was normally carried out by 
the relevant officials dealing with a particular case  in a custom station. That was a quasi judicial 
function and subject to appeal procedures. India did not support changing that system and entrusting 
all those functions at a central level. That would be very unwieldy and a very inefficient system of 
dealing with day-to-day issues. India could only  have a central body to act in such cases where 
different interpretations on classification for the same good or on a certain principle of valuation 
existed. India also needed greater clarity regard ing the proposal to compile and distribute casebooks 
of examples of customs classification and customs valu ation. Was that meant to be a separate exercise 
or would it be related to the publication of judicial  decisions on those issues?  Furthermore, that was 
beyond the current scope of transparency provided u nder GATT Article X in its current form, seeking 
to provide transparency for officials, and could be burdensome.  
238. India also sought clarity regarding the proposed establishment of complaint desks. Were they  
expected to work as an alterna tive to the appeal mechanism or as part of it?  It was India's 
understanding that it would need to be distinct from the appeal mechanism.  Second, India needed 
clarity as to whether it was expected to be a centrali zed body or be set up in every custom station.  It 
was India's experience that such complaint desks were more effective if set up at the level of 
individual customs stations which could address day-to -day difficulties faced by traders. A centralized 
complaint desk would require additional resource s and might not be as quick in addressing local 
problems.  
239. India had concerns regarding the proposal to publish major judicial and administrative 
decisions. First, it was difficult to categorize judicial decisions as minor or major. Second, India had a TN/TF/M/4 
Page 36  
 
number of benches  of appellate tribunals, High Courts a nd a Supreme Court. It would be very 
burdensome for the government to take on a commitm ent on publishing all those judgments.  On the 
other hand, India had a large number of private publications which published all major judicial 
decisions and whose citations were accepted by the courts. India needed to keep the standard of 
transparency for judicial decisions flexible enoug h to take into account the judicial publications 
available in the private domain as well. Putti ng that burden only on the government would entail 
prohibitive costs and would also be an uncalled fo r expenditure in situations where such judicial 
decisions were already available to all interested  parties through private publications. Finally, India 
wished to reiterate its reservation regarding extendi ng the scope of Article X to integrity issues.  
240. The representative of Kenya
 sought to comment and request clarification on certain aspects of 
the proposals submitted at the last meeting, particularly those relating to Article X.  
241.  Kenya noted with concern that the EC submission TN/TF/W/6 sought to expand the 
information that had to be published to also cove r the internal decision making process, substantive 
content of each measure affecting foreign trade a nd operational details of customs authorities.  The 
proposal to expand the coverage of information re quired for notification fell outside the scope of 
GATT Article X and therefore outside the Group's ma ndate.  Kenya wished the EC to clarify why 
such a proposal should be considered as falling with in the scope of Article X.  Furthermore, the 
proposal would be very demanding and impose unn ecessary burdens on developing countries such as 
Kenya in fulfilling notification obligations in th e area, as well as constrain those countries' ability  to 
achieve the appropriate balance between expediting the movement of goods across borders and the 
needs for customs controls, to address issues su ch as security concerns. Regarding the specific 
measures and the information to be notified, Keny a wanted the EC to clarify the relevance of 
publishing information such as internal custom s management plans as well as modernization 
programmes.  Regarding the proposal to publish info rmation on-line and to establish enquiry points, it 
was Kenya's understanding, in line with paragraph 6 of the modalities on Trade Facilitation, that, in 
the absence of adequate long-term and effective tech nical and financial assistance, the implementation 
of new commitments by developing countries in the area, would be voluntary.  
242. With respect to the proposal for prior cons ultations on the new and amended rules and  
procedures, Kenya wanted clarification as to why th e EC was seeking binding obligations in the area, 
when in fact, prior consultations were already ta king place, as part of Members' commitment to good 
governance at the national level.  Kenya had ser ious reservations re garding multilateral of 
commitments on prior consultations, as that would constrain the ability of many countries to respond 
to many challenges faced in the area of Trad e Facilitation.  Such a proposal would be 
counterproductive as it would constitute unnecessary barriers to Trade Facilitation efforts.  Article X related to the right of Members to be informed.  Therefore, Kenya had difficulties with the suggestion 
to expand the Article to  include  a right of Members to be consulted for comments.   
243. Regarding appeal procedures and due process, Kenya sought clarification from the EC on 
what was meant by terms such as "minor a ppeals", "easily accessible" "reasonable" and 
"commensurate with costs in providing for appeals"  as proposed under paragraph 5, since the 
interpretation of those terms could significantly va ry among Members.  The proposal to have separate 
judicial and administrative points outside the custom s administration to deal with appeal cases would 
impose an additional cost burden on many deve loping countries.  Such obligations should be 
voluntary for developing countries since their implementation capacity was normally dictated by the 
availability of resources, which were usually limited.  Kenya wanted to hear from the EC about their 
commitment in assisting those countries to meet such obligations.   
244. Regarding TA&CB, Kenya was c oncerned about the EC's proposal  in paragraph 7, which was 
of a best endeavour nature, proposing to provide technical assistance within the framework of the 
EC's development assistance.  That meant that the EC would retain its full discretion in determining 
the eligibility on conditions for accessing funds in that  area.  It implied that the EC was not willing to  TN/TF/M/4 
 Page 37 
 
 
commit additional funds that would easily be accessible by developing countries to implement commitments on Trade Facilitation.  Kenya sought clarification on whether it was to be understood 
that the EC was already backtracking on its commitment in that area.  
245. With respect to Korea's submission TN/TF/W/ 7, Kenya was concerned about the suggestion 
to introduce advance rulings within the scope and a pplication of Article X.  Advance rulings mainly 
related to specific transactions. Therefore, it woul d be important for Korea to clarify how that would 
be applicable under Article X relating to the publ ication and administration of laws, regulations, 
judicial and administrative rulings of general  application.  Korea's attempt to introduce advance 
rulings in Article X through the back door was not appropriate.   
246. The proposal contained in paragraph 6 to pub lish information on the internet as the only 
widely accessible means, might not be possible for count ries where the usage of IT was still very low.  
It should be left to the discretion of each Member to determine widely accessible means, which in the 
case of Kenya could be an official government gazette.  Regarding Korea's proposal for WTO to 
disseminate notified information to other Members and to other interested parties, Kenya sought 
clarification on who those other interested parties were. 
247. Clarification was also sought on Korea's explana tion of what was meant by core measures and 
how they could be distinguished from non-core on es. On the implementation of commitments, Kenya 
requested clarification from Korea on why that should  only be defined in terms of longer transitional 
periods.  The implementation of Trade Facilitation measures was directly linked to availability of 
adequate resources.  Therefore, lack of resour ces could not be substituted by longer implementation 
periods.  Kenya wished to reiterate that implem entation of trade facilitation measures was usually 
dictated by the availability of resources.  Co mmitments for providing more resources to assist 
developing countries faced with implementation di fficulties was the only appropriate way forward in 
that area. 
248. With respect to the submission by Japan, Mongol ia and Chinese Taipei (TN/TF/W/8),  Kenya 
would like to know why the sponsors were seeking to  establish an appeal system when it was already 
provided for in Article X:3.b of the GATT.  In Ke nya's view, the issues raised in W/8 on appeal 
systems did not relate to the current process of clarification but concerned the lack of implementation of existing commitments on the part of some Memb ers due to resource constraints. Availability of 
adequate resources was key for countries to establis h effective appeal systems. Developing countries 
faced with resource constraints should be assisted in that regard.   
249. On the submission by Canada (TN/TF/W/9) and the US (TN/TF/W/12) on advance rulings, 
Kenya needed clarification of the specific Article of the GATT they sought to clarify.  Any aspect 
proposed for clarification that did not fall within the scope of Articles V, VIII and X of the GATT should be considered as being outside the negotia ting mandate.  The was the case with the issue of 
advance rulings.   
250. Regarding the US' submission (TN/TF/W/13), Ke nya was concerned that many developing 
countries, especially those in Africa, faced with underdevelopment of IT infrastructure were likely to 
have great difficulties in complying with commitmen ts under Article X that would require internet 
publication of information.  Kenya would like to seek clarification from the US on the kind of S&D 
provisions for those countries envisaged under the proposal. 
251. Kenya hoped that there would be further opportunity  in the future to examine those proposals.  
Many proposals had been received within a very s hort period and the Group had to really move very 
carefully so that the interest of some Members we re not prejudiced by accelerating the process. It was 
important that adequate opportunity was given for Members to comment on the proposals that had so 
far been submitted.  TN/TF/M/4 
Page 38  
 
252. The Chairman
 assured that he indeed intended to a llow for further discussion of the proposals 
in the future. 
253. The representative of Turkey  said that Article X comprised transparency provisions regarding 
the publication and uniform implementation of tr ade related laws, regulations, administrative 
decisions and trade-related procedures.  In that resp ect, Turkey was in favour of improvements to that 
Article, which would imply simplicity and accessib ility of related information for the trading 
community on a non-discriminatory basis. To achieve that goal, trade related information referred to 
in Article X, including possible amendments, should be published through a widely accessible 
medium. Turkey understood the term "publication" to  include electronic transmission methods such as 
internet-based availability.   
254. The establishment of enquiry points should also be envisaged to improve the accessibility of 
trade-related information to any interested party.  Furthermore, enquiry points could alleviate the 
workload of national authorities and respond effectiv ely to the information needs of both importers 
and exporters.  However, Turkey was not convin ced of the practicality and necessity of border 
authorities providing third parties with a "legitima te purpose or objective in imposing trade-related 
restrictions" as proposed by Japan in TN/TF/W/8.   
255. Similarly, Turkey was of the view that th e notification of all trade-related rules and 
procedures to the Secretariat as proposed by Kor ea and Japan would be bur densome for both national 
authorities and the Secretariat.  The establishment of enquiry points guaranteeing wide availability of 
trade-related information would make such a require ment redundant.  On the other hand, many of the 
proposals tabled so far on Article X extended the tran sparency requirements contained in that Article 
to the policy formulation stage.  In that respect , the papers submitted by the EC, Korea and Japan 
called for a prior consultation mechanism before the trade-related regulations' entry into force.   
256. Prior consultation on new and amended rules before  their entry into force would contribute to 
further transparency and predictability.  A reasonable time span could be left for consideration of the 
drafts in principle.  However, duty and tax regul ations and enforcement concerns, which might pose 
urgency in respect of national priorities, should be acknowledged as excepti onal conditions in which 
governments should be free to regulate irrespective of time requirements.  Bearing that limitation in  mind, only the drafts of primary legislation should be required to be publicized prior to their adoption.   
257. With regard to due process, Turkey believed that appeal procedures on the administrative 
level would be beneficial for the a pplication of trade-related rules in  a uniform and impartial manner.  
In respect of the release of goods, the extension of  the scope of Article 13 of the CVA needed some 
further reflection on whether it covered the release of  goods subject to a disputed decision with regard 
to health standards or consumer protection.  Li kewise, the release of goods in cases of disputes on 
tariff classification could also create problems.  Tariff classification was a process lying at the heart of customs procedures which determined the applicab le trade policy measures.  Certain licensing or 
certification requirements might differ  according to the results of classification tests.  Turkey would 
appreciate if the proponents of that proposal could clarify it more.   
258. As for the proposals on advance rulings, Turkey  considered that their provision upon request 
by traders on certain specific areas such as tariff  classification, origin determination or tariff 
preferences would be helpful to improve predictability .  However, Turkey believed that the scope of 
the application of advance rulings should be de fined clearly.  Furthermore, they should be case-
specific and binding only to the extent that the declar ed data was correct and th at the relevant national 
legislation on which the ruling had b een provided remained unchanged.   
259. Lastly, Turkey fully supported the proposal by New Zealand of making the WCO's HS 
system a GATT discipline and a commitment for Members to use.    TN/TF/M/4 
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260. The representative of Chinese Taipei  commented on the US documents TN/TF/W/12-14, 
agreeing with most of its suggestions.   
261. On the proposed binding advance rulings, some developing Members, particularly LDCs, had 
been concerned about the coverage of such rulings . It might be appropriate for the Group to explore 
practical ways of refining the subjects covered. In particular, Chinese Taipei was of the view that the 
question of whether customs valuation should be incl uded might require further discussion, in view of 
its inherent complexity. 
262. Regarding the US idea of a “mutual recognition” of advance rulings between Members as a 
possible means to implement the proposed measure, it would be appreciated if the US could further clarify whether it was envisaged for the mutual recognition to be a bilateral or a multilateral 
mechanism. Also, Chinese Taipei wondered whether an international organization such as the WCO 
could develop an instrument for implementing that kind of measure in the future. 
263. Regarding transparency and publication, Chin ese Taipei strongly supported the suggestion in 
the US, EC, Japan and Korea proposals to clarify a nd improve relevant current transparency-related 
provisions under Article X by using the internet  as the medium of publication. Regarding the 
implementation of the proposal, Chinese Taipei s upported the idea of Members working together to 
seek the assistance of international organizations  and to undertake country-specific technical 
assistance. 
264. On the proposal to establish specific parameters for express shipments, Chinese Taipei shared 
the views of the US.  To establish a sound logistical  and supply chain-oriented infrastructure to meet 
the needs of a modern, “just-in-time” business e nvironment, Members’ commitments to providing 
specific expedited procedures for express shipments were needed. That would contribute to their 
economic development.  
265. Chinese Taipei agreed with th e proposal to establish a “cen tral function” within the 
government with the primary responsibility to interp ret trade regulations, such as those relating to 
customs classification or customs valuation.  Th at was a possible measure for further improving 
Article X:3 (a), which currently required that “each  Member shall administer in a uniform, impartial 
and reasonable manner all its laws, regulations, d ecisions and rulings of the kind described in 
paragraph 1 of the Article.”   
266. The representative of the Philippines
 informed that the Core Group was currently preparing a 
list of questions for clarification on the first wave of proposals. The Core Group would also like to thank UNCTAD for their assistance and continued e ngagement with the Group in the form of  
workshops on Articles V and VIII issues.  
267. The Philippines wished to seize the opportunity  to offer some comments and raise certain 
queries in respect of the ‘first wave’ of proposals to  review and clarify, in particular, Articles X and 
VIII of the GATT as contained in documents TN/TF/ W/6 to W/16.  The questions had been discussed 
with Members of the Core Group.  
268. With respect to the proposals on Article X, th e Philippines had serious concerns regarding the 
EC proposal (TN/TF/W/6) to require consultation w ith interested parties. While some countries, 
including the Philippines, notified and sought commen ts from affected private stakeholders prior to 
introducing legislation or important  regulations as a matter of policy, the Philippines had serious 
reservations about having to cons ult and afford prior comment ri ghts to other WTO Members as a 
matter of multilateral obligations before being able to introduce new legislation or regulations. 
269. Clarification was sought with regard to the EC's  proposal to require the provision of an appeal 
procedure, in which the EC seemed to suggest not only an appeal procedure within the same agency TN/TF/M/4 
Page 40  
 
or other body, but also ‘ subsequently to a separate judicial or administrative body’ . Was the intention 
for Members to establish a separate or additional ju dicial or administrative infrastructure to handle 
those administrative appeals? Given the resource constraints in most developing countries, the 
question had to be answered about who was supposed to cover the costs of such an establishment, as 
well as of the training of legal officers to hear such appeals. 
270. With respect to Korea’s suggestion that ‘Mem bers publish the laws, regulations, judicial 
decisions, administrative rulings as defi ned in Article:X.1 of the GATT, and advance rulings of 
general application and a binding nature ’ (TN/TF/W/7), the Philippines wondered whether the 
referenced rulings applied only to those relating to Art. X.1. Otherwise, the phrase ‘general 
application’ might  be interpreted as being too broad and all-encompassing. 
271. As for Korea’s suggestion that ‘Members were  required to make any exceptions, derogations, 
or changes to the items listed above readily available, non-discriminately  at no cost or cost.’, there 
might be certain exceptions or derogations which would necessarily be de facto  discriminatory insofar 
as they would apply only to certain qualified tr ansactions from certain Members.  The Philippines 
therefore wondered how Korea inte nded to address those situations. 
272. Korea further stated that their proposal for no tifying the WTO Secretariat of ‘media through 
which aforementioned measures and amendments were published’ was a ‘somewhat weaker provision 
than the provisions in the TBT Agreement.’ And yet,  reading through paragraphs 7 and 8 of document 
TN/TF/W/7, it would seem that the Korean proposal was just as strong, if not stronger, than the 
existing requirements in the TBT Agreement. As for Korea’s proposed notification and prior 
comments obligations, the comments on the similar EC proposal likewise applied.  Paragraph 9, tiret 
3 of the Korean document seemed to suggest a narrower set of exceptions regarding the ‘interval 
between publication and implementation’ than Ge neral Exceptions under Article XIV of the GATT  
provided. The Philippines wondered whether it had been  Korea’s intention to afford a more limited 
scope of exceptions to the proposed obligation regarding the time period between publication and 
implementation of regulations. 
273. Document TN/TF/W/8 by Japan, Mongolia and Chinese Taipei referred to the requirements 
under Art. III of the GATS to address concerns regardi ng transparency.  In that context, it should be 
noted that, notwithstanding the legal mandate therei n, compliance by most, if not all, Members with 
that Article remained quite low, if not problematic . The lack of compliance was apparent not just for 
developing, but also for developed countries. Th e Philippines therefore wondered whether similar 
GATS-like or even ‘GATS-plus’ transparency obliga tions would not result in similarly inadequate 
levels of compliance, especially if the intended sco pe and coverage of regul ations was overly broad. 
The ‘Disciplines on Domestic Regulation in the Acc ountancy Sector’ (S/L/64) cited therein also had 
detailed elements of how increased transparency co uld work. However, those obligations were quite 
deep-cutting and were perceived to be too nervous by some who were familiar with services trade. 
There was a reason why those disciplines had not been  extended to other specific services sectors. It 
would be prudent for Members in the NGTF to be ev en more prudent in adopting such elements, as 
they would then apply to  all trade in goods, and not just a specific sector. 
274. Paragraph 15 relating to ensuring predictability of regulations suggested to include ‘providing 
opportunities for interested parties including the private sector to comment on prospective trade-
related laws and regulations’ as a “possible elemen t of a solution”. The Philippines wondered whether 
that meant that other WTO Members were interested  parties, in a way that a government had to seek 
‘prior comment’ from other WTO Members before bei ng able to implement a regulation.  Under the 
same paragraph 15, it was suggested that Memb ers develop an ‘advance ruling system’. The 
Philippines wished to request cl arification on that point.  
275. In paragraph 19, in regard to impartiality a nd uniform administration of trade regulations 
throughout the Members’ territories, it was sugge sted that Members develop a ‘compilation and  TN/TF/M/4 
 Page 41 
 
 
distribution of casebooks of cases and examples of customs classifications and customs valuation. The 
Philippines sought clarification as to who was going to finance the cost of such preparation. 
276. Canada’s and the US' proposals on advance rulings, and all the other proposals containing 
elements on ‘advance rulings’, would appear to fall outside the scope of the NG’s mandate insofar as 
it fell outside the parameters of Article X. Wher eas Article X appeared to refer to publication 
requirements, those proposals suggested an obligati on to establish a distinct substantive system for 
issuing advance rulings.  The Philippi nes wondered about the legal impli cations of such a proposal in 
the context of a possible (albeit still contested ) applicability of the WTO’s dispute settlement 
mechanism. Furthermore, for most developing count ries which had not yet established such a system, 
there would be costs incurred. It therefore had to be known who was proposed to shoulder such costs.  
While there was a similar requirement under the Ru les of Origin Agreement for the purpose of 
assessing origin, the additional elements proposed to be subject of advance rulings relating to tariff 
classification, applicable rate of duty or tax a pplicable upon importation were quite distinct and 
different, and might require more specialised competencies. Therefore they did not represent limited incremental costs as Canada had claimed.   
277. With respect to the proposals regarding Article  VIII,  Chinese Taipei had proposed the prior 
release of consignments and the conduct of a thorough review of the documents of selected 
consignments after release (TN/TF/W/10). The Phili ppines’ experience and also the experience of 
other Core Group Members had shown that such a system failed to address problems relating to importations made by fly-by-night entities or one-time import operations, the juridical entity for 
which then disappeared after the importation was made. Once the entity disappeared or the entity’s 
corporate address turned up empty and irrelevant once the post-clearance audit was sought to be 
conducted, the risks associated with such a pr oposed system became apparent. The Philippines 
therefore wished to know how Chinese Taipei in tended to address those problems. Chinese Taipei 
also proposed the use of the WCO Customs Guidelin es for Express Consignments as a ‘reference.’ In 
that context, the Philippines wished to know whet her the intention was to make that document a 
legally binding ‘reference paper’. 
278. In document TN/TF/W/14, the US suggested as a proposed next step in the negotiations that 
‘Members develop specific parameters for the appli cation of fees.’ From the Philippines’ perspective, 
it would appear that a sufficient parameter was alre ady laid down, i.e., that it was ‘limited in amount 
to the approximate cost of services rendered.’  Furt her, harmonisation of parameters – to be applied 
multilaterally – bore the risk of failing to take  into account existing differences in Members' 
infrastructure in the implementation of customs operations. That would appear to be particularly 
disadvantageous to developing countries.  In the l ast tiret under the same section, the US seemed to 
suggest taking account of the work of ‘Internati onal Organisations’. The Philippines wondered what 
organisations the US was referring to and who dete rmined which work of those organisations should 
be taken account of.  
279. Another US document (TN/TF/W/15) proposed ‘s eparate expedited procedures’ for express 
shipments, including individual elements such as ‘a n absence of weight or value restrictions on what 
was considered express.’ While the Philippines appreci ated the thrust of the US approach, several 
WTO Members might have carved out postal services monopolies on the basis of, e.g., weight restrictions, which might therefore be excluded unde r their legislation from the possible coverage of 
‘express delivery’. The Philippines wondered how the US  intended to address that issue. With regard 
to the proposed next steps in the negotiations, it migh t be useful to cross-refer to the useful work in 
the services negotiations in relation to possible commitments in express delivery and express shipments. 
280. The representative of Cuba
 said that as Members advanced in the process of clarifying the 
proposals in Geneva, their authorities at home woul d be in a position to assess the compatibility of 
those measures with the procedur es and standards available in th e respective countries and their TN/TF/M/4 
Page 42  
 
compliance with other international instruments.  On e could look at the feasibility of implementation, 
considering the fact that many of those measures would involve short- and medium-term investment 
infrastructure and staffing and would lead to reduc tion in fiscal income.  There were major aspects 
with respect to North-South relations and as to whether all Members would depend on the skills of 
negotiators in achieving a result which would ma nage to combine expectations and realities. 
281. Cuba shared many of the concerns raised by Members with respect to the scope and 
feasibility of the measures proposed as possible multilateral commitments, and would incorporate 
them in the joint Core Group's document presented in due time.  Regarding proposals TN/TF/W/6, 
W/7 and W/8, developing countries ge nerally had serious technological and infrastructural limitations 
as well as limitations in terms of qualified staff.  Therefore, all of the proposed measures would 
involve major implementation costs in the short- a nd medium-term.  Cuba needed a cost estimate and 
a menu of options with respect to S&D, TA&CB for implementation.  S& D, understood as  longer 
periods, was only one component of the assistance package required for implementing the results. 
282. More information was required from the EC with respect to the type of assistance they were 
prepared to offer to developing countries, incl uding LDCs, for the implementation of the proposals 
related to publication and the av ailability of information based on on-line access to information and 
the establishment of trade inquiry services to provide  information on all the measures and regulations 
and trade agreements of Members.  That would imply high costs in terms of new technologies and 
training.  Cuba also wished to ask the EC what th ey meant by the clarification statement in paragraph 
7 of the proposal TN/TF/W/6, saying that assistance  would be given within the framework of their 
development assistance programme.  Cuba wanted to know whether that was part of the EC 's normal 
development assistance programme or whether it was an addition. 
283. Some of the proposals contained in TN/TF/W/ 6 and TN/TF/W/7 called for the establishment 
of consultation mechanisms and time-periods to provi de comments with respect to proposed laws and 
regulations that would be open to the privat e sector and in some cases to comments by WTO 
Members.  In both cases, there would be a possibility of having an influence on the content of new 
regulations.  However, it would appear that the inte rpretation given to the scope of Article X referred 
to publication and implementation of laws and regula tions and not to the substantive content.  Cuba 
wanted to ask the EC and Korea if  their proposals were in line with that interpretation or whether it 
really was a matter of extending the scope of Article X of the GATT. With respect to the 
establishment of a national coordination centre or si ngle window to reply to enquiries made by other 
Members and interested parties on customs forma lities and border-crossing issues, Cuba did not have 
such a centre and its establishment would require in stitutional reforms.  Cuba shared the concerns 
expressed by other delegations in that regard a nd felt that more thought should be given to the 
desirability of adopting a system that only a few coun tries currently had in place.  With respect to new 
notification obligations and the establishment of ne w information services, it would be a good idea to 
have a cross-cut review of all proposals in order to simplify the examination of similar measures.  
Cuba was not in favour of new notification comm itments which would mean increased obligations.  
284. Finally, Cuba wanted to thank UNCTAD for the assistance provided.  
285. The representative of Egypt
 said that when talking about periodic review, it was necessary to 
know who was supposed to carry out such reviews.  The proposal to grant WTO Members and traders 
the right to comment on the rules and regulations, w ith those comments then having to be taken into 
account, could not be accepted. As for advance rulings , that was a useful tool for the facilitation of 
trade,  but there should be some kind of measures to assure its proper use.  
286. The proposal on the parameters for fees (TN/TF/W 14) was very general and had to be made 
more specific. Regarding Korea's call for the harm onization and standardisa tion of document formats 
in document TN/TF/W/18, Egypt was of the view that the WCO was doing a good job in finalising the WCO Data Models, which would be of gr eat help in that context.         TN/TF/M/4 
 Page 43 
 
 
287. The representative of Jamaica  said that the many new proposals showed the depth and the 
breadth of interest in the subject. Jamaica had in terpreted the mandate of clarifying and improving 
relevant aspects of Articles V, VIII and X quite r estrictively, assuming that it implied looking at what 
was actually contained in the Articles and what of the existing parts could be clarified and improved. 
288. Some of the proposals went beyond that, seeki ng to incorporate new elements. They seemed 
to be intended more broadly on remaking the bord er procedures and, in some cases, even the 
procedures and regulations behind the border, which mi ght not have any bearing on trade at all.  For 
some Members, especially smaller ones, where 70 – 80 % (or even more) of GDP was connected with trade, imports and exports, those were sweeping and potentially far-reaching proposals in terms of 
their possible impact.  Members should proceed cau tiously and with full regard for the economic 
structure and levels of development of other Members.  The WTO negotiating history contained 
recent examples of agreements that had turned out to have much more far-reaching implications than 
anticipated for developing countries.   
289. Jamaica remained fully persuaded of the releva nce of footnote 1 in Annex D, which said that 
work was without prejudice to the possible format of the final results of the negotiations and would 
allow consideration of various forms of outcomes. 
290. Jamaica was keenly  interested in pursuing the work of the NG within the parameters set out in 
Annex D, and was actively engage d in its own initiatives in reform ing and modernizing customs and 
implementing other trade and business facilitation me asures.  In 2004, the World Bank had listed 
Jamaica as one of the 10 least regulated economies globally.  Jamaica reiterated its view on the need 
for an inventory of what measures were in place in which Member states, especially with regard to the 
proposed measures.  Jamaica would be very inter ested in seeing offices in which those measures were 
actually being implemented, as that would help in the evaluation of what was  doable, and in what 
circumstances.  
291. Jamaica fully supported the statement by the Philip pines on behalf of the Core Group.  With 
respect to the proposals, there were common themes .  One of them was fees and charges imposed on 
or in connection with importation and exportation.  The concerns expressed in those papers appeared 
to relate to what should be charged, the amount of  charges and the transparency and notification of 
charges.  The EC and Australia, for example, called for a ban of ad valorem  charges to  ensure that 
"administrative and operational co sts not constituting a service associated with the treatment of 
imports and exports might not be imposed on such im ports or exports".  As indicated earlier, imports 
and exports constituted the overw helming portion of the economic activity of some Members. 
Extensive administrative and operational costs were ther efore associated with servicing trade.  It was 
not clear, a priori, what administrative and operational cost s did not constitute a service associated 
with the treatment of exports and imports and how the proposed prohibition would add clarity to Article VIII.  It went without saying that fees should be transparent.  Jamaica was also willing to 
discuss what the least costly method could be of ach ieving the fullest transparency. On the question of 
reducing the number and diversity of fess and charg es, however, more information was needed to be 
able to proceed sensibly.  Article VIII set out guidelines regarding the kind and amount of charges 
that were permissible. It was not known wh ether it was realistic or possible to list a priori  in a specific 
way the entire universe of charges that fell within those parameters.  That was something other bodies 
of the WTO had been established to deal with in th e context of specific charges levied in concrete 
circumstances with which some Members had difficulties. 
292. Japan's and Mongolia's proposal for a periodic review of the appropriateness of the amount 
and number of fees imposed on or in connection with importation and exportation was not clear in 
terms of whether such a review w ould be country specific or genera l, and who should carry it out.   
Chinese Taipei's effort to break down how cost s of services rendered might be measured was 
straightforward.   All of that was helpful, but there was little one could do a priori .  It might be 
possible to reach agreement on broad categories of services that might not, or should not, fall within TN/TF/M/4 
Page 44  
 
the ambit, such as consular fees, but it would be very difficult to fix in law in a specific way the 
detailed fees and their amounts that we re permissible, and qualify as being  in connection with 
exportation and importation.   One should not fo rget that it was the domestic economy and the 
importer who bore the burden of high transaction costs,  including excessive fees.  An important part 
of Members' work should be to promote awareness and activism amongst those constituencies, so that 
they worked to ensure that fees were reasonable and were connected to the services rendered on their 
behalf, with the fall back of judicial proceedings to be invoked in connection with the implementation 
of Article VIII, if necessary.  
293. On import and export documentation require ments, Jamaica supported the use of  
international standards whenever possible.  Bu t there should be no obligation to harmonize.  
Regarding the use of photocopies, it was very important to prove the legitimacy of documentation.  It 
was also important to achieve a balance between f acilitation and control.  Jamaica would have great 
difficulties in accepting photocopied documents. Ho wever, Jamaica's customs modernization 
programme provided for pre-arrival processing, a llowing importers to submit documents well ahead 
of time and before the arrival of the consignment, so  that a just-in-time effect could be achieved for a 
cargo which needed to be cleared particularly promptly.   
294. The proposals on a Single Window approach had great merit in terms of the objectives 
pursued.  However, Jamaica did not envisage them as candidates for binding obligations, due to their 
financial, technological and time implications.  It did, however, support increased and enhanced 
coordination between the relevant stakeholde rs in that area in a non-binding form.   
295. As for the proposal on commitments to release goods upon provision of collateral security or 
other sufficient guarantees,  Jamaica was of the view that that might be onerous for small traders. It 
should in no way be a substitute for efficient, expe ditious customs clearance, but should be considered 
an optional facility for traders upon requ est (as was the case in Jamaica).   
296.  Many proposals also sought to allow for pr ior comments from external parties on proposed 
customs rules and regulations, and to have th eir comments taken into account. That was normal 
procedure with domestic constituencies in Jamaica.  Jamaica did not, however, consider it to be a  
matter for binding obligations with regard to othe r Members and external traders.  Rather, Jamaica 
saw it as an important aspect of both improving tr ansparency and developing rules and obligations 
which were broadly responsive to the needs of the trading community, domestically and generally.  
297. A schematic compilation of the proposals in a thematic way would facilitate Members' 
consideration of them. Jamaica hoped that the Secr etariat would  give some attention to that. 
298. The representative of Japan
 replied to the request for clarification on the proposed "publishing 
the decisions and examples of customs classification" in paragraph 9, page 2 of Japan’s proposal TN/TF/W/8 that Japan proposed the measure because publicizing representative  examples and past 
cases of tariff clarification, not limited to judi cial decisions, would co ntribute to enhancing 
transparency and predictability on tariff classificati on.  Japan did not expect all decisions to be 
publicized, but only representative ones.  That  was how it was done in Japan customs.  
299. As for concerns expressed about the idea to "b an the collection of unpublicized fees and 
charges" (paragraph 9, page 3), the reason behind that proposal was that Japan received a number of 
comments from the private sector that the imposition of unpublished fees and charges often placed a heavy burden on traders.  Japan believed that  both publicizing fees and charges and prohibiting 
unpublicized fees and charges would contribute to enha ncing transparency and predictability, and also 
to reducing the number and diversity.   
300. As for the question as to how Members could calculate "the standard processing period for 
major trade procedures" (para. 9, page 3), the WCO had a guideline to measure the standard time  TN/TF/M/4 
 Page 45 
 
 
required for the release of goods, and Japan conducted "the Time Release Study" on the basis of that guideline and published the result every two to three y ears.  In particular, Japan published:  (i) the 
average time taken from the arrival of the goods to  carrying them into the customs warehouse;  (ii) 
time from carrying the goods into the customs wareh ouse to lodging the goods declaration;  and (iii) 
time from lodging the goods declaration to the perm ission of the importation.  The average time from 
the arrival of goods to the permission of importation had been reduced from seven days in 1991 to 2.8 
days in 2004, and those goods included the good s requiring examination and inspection.  That 
substantial reduction was the result of various TF me asures Japan had taken.  Japan recognized that 
the standard processing period differed from country to country, and also regarded the standard 
processing time as a reference for traders, not as an obligation for the government.   
301. As for the request for clarification on the "legitimate purpose of imposing trade related 
restriction", particularly the meaning of "restricti on" (para. 10, page 3) Japan believed that it was 
important to clearly state the legitimate purpose when introducing new obligations, for example when 
requesting the submission of additional informati on from traders for the sake of enhanced security 
against terrorism or for the sake of enhanced public h ealth.  Therefore, the restrictions in that proposal 
could mean both documentary requirements and procedural formalities.   
302. Regarding concerns about the idea of publishi ng a summary of trade regulation to cause an 
additional burden and the proposal to make that ha ppen as a best endeavour clause instead (para. 11, 
page 3), Japan would like Members to understand that  that proposal was made with regard to the 
publication of laws and regulations on the WTO website in at least one of the official WTO 
languages.  Japan believed that that was a useful m eans to further enhance transparency of Members' 
trade laws and regulations, but Japan was aware that  that idea could lead to an additional burden.  
Therefore, in order to reduce such burden, Jap an was suggesting publicizing not the laws and 
regulations but the summary of the main ones, so  that traders could understand a Member's typical 
trade procedures.  That was what Japan did on it s official website in English in various border 
agencies in Japan.   
303. As for the request for clarification in enquiry points, and the remarks about such enquiry 
points not having to duplicate existing enquiry poin ts required by the TBT or SPS Agreements, Japan 
had no intention to duplicate the roles of various enquiry points, nor was it suggesting to create a single enquiry point to be able to answer all kinds  of questions.  As long as traders could obtain the 
necessary information or the right contact point to get the information they needed, the form or the 
number of enquiry points could be left up to each Member's discretion depending on the 
circumstances.   
304. With regard to the request for clarification on  the proposal on "explicitly stating the required 
trade procedures in the relevant laws and regulations " (para. 15, page 5), the reason for Japan making 
that proposal was that the trade procedures in releva nt laws and regulations were vague, leaving much 
room for discretion and interpretation by officials.  Private businesses complained that to be one of the 
reasons why applications of laws and regulations became inconsiste nt.  Detailed procedures did not 
have to be defined in laws, as long as they were cl early defined in regulations or administrative rules 
and were published for the private sector, which was sufficient.   
305. As for the request for clarification of the proposal to have "the central function to interpret 
trade regulations" (para. 19, page 5), Japan propo sed the establishment of such a central function in 
order to ensure the impartial and uniform admini stration of trade laws and regulations within a 
Member's territory.  Naturally, the central functio n did not have to produce interpretation of all 
aspects of trade laws and regulations, but they  should work so as to prevent the different 
interpretations when there was such a risk, dependi ng on, for example, the customs house or region.   
306. 
With respect to concerns about the compila tion of casebooks on customs classification and 
valuation going beyond the scope of Article X, Japan would like to clarify that the purpose of TN/TF/M/4 
Page 46  
 
compiling the past examples and cases in a case book and of distributing such a casebook to border 
agency officials was to ensure the impartial and uni form application of trade laws and regulations by 
relevant officials.  Therefore, Japan believed that the measure was within the scope of Article X.   
307. On the question on the establishment of a compla int desk and whether that was part of an 
appeal procedure or an addition to the appeal proc edure, Japan wished to clarify that the reason for 
making the proposal had been the conviction of the u sefulness to establish within  the border agency a 
desk where traders could lodge complaints in an easy manner before moving to the formal appeal 
procedures.  The enquiry point could function also as a complaint desk.   
308. Concerning the concerns and the question as to the idea of publishing major judicial and 
administrative decisions against lodged appeals and wh ether that could be done by the private sector 
(para. 20, page 6) the publication of major judicial and administrative decisions was one of the 
measures to enhance predictability and transparen cy.  Japan did not expect all administrative 
decisions to be published due to confidentiality reas ons.  If the judicial and administrative decisions 
were publicized by private sector , the government must be already publishing such information.  
Private companies should be free to publish such information in the form of journals.   
309. Regarding the concerns about the issue on integr ity (para. 21, page 6), Japan believed that 
provision of sufficient training to relevant offici als in border agencies, including the issue of 
maintaining integrity, was very important to ensure  the uniform and impartial administration of trade 
laws and regulations as stipulated in Article X para . 3(a), and thus believed that the issue fell within 
the scope of the TF negotiations.   
310. Some Members had mentioned that Article X al ready obliged the establishment of an appeal 
system and wondered why Japan was proposing the sa me on page 6 of its proposal, saying that  the 
lack of proper implementation of an appeal system  was a matter of lack of resources. The purpose of 
Japan’s proposal was to improve the existing Artic le by adding some new elements such as the 
establishment of a complaint desk or the publi cation of major decisions.  Japan recognized the 
concerns of developing Members to implement tho se measures, and would like to continue to discuss 
how to implement them, including the provision of necessary TA&CB together with relevant 
international organizations. 
311. Some Members had also mentioned that the notif ication of laws and regulations to the WTO 
in one of the official WTO languages was burdensom e to Members.  The most important measure to 
secure transparency was for each Memb er to publicize its own laws a nd regulations promptly in their 
official website or gazette.  However, in addition to that, it would be very useful, particularly from the 
view points of SMEs, if they could learn about the major part of trade regulations of various WTO 
Members through their access to the WTO website in  one of the WTO languages.  Japan recognized 
that that could be an additional burden for devel oping Members and therefore suggested that the WTO 
Secretariat or other international organizations could provide transla tion services.  Another practical 
solution could be for the WTO Secretariat to establis h a link on its website to Members' websites, as 
long as they published major trade laws and regul ations in one of the WTO languages at home.  
312. With respect to the comment from the Philippi nes regarding the issue of compliance with 
requirements, Japan was of the view that compliance was a very important subject.  Japan did not want to see rules which could not be complied with a nd wished to have further information to increase 
the compliance with possible rules in the negotiations. 
313. Regarding the question about advance rulings, Japan  was of the view that at least rules of 
origin, classification and valuation questions should be included in that procedure.   
314.
 As regards the issue of comments on poten tial laws and regulati ons prior to their 
implementation, Japan's position had already been clearly stated and did not require repetition.  For  TN/TF/M/4 
 Page 47 
 
 
the private sector, such a possibility was very impor tant to increase transparency and improve the 
quality of the laws and regulations. 
315. The representative of Canada  endorsed the comments made by Pakistan and Switzerland with 
regard to the issue of collateral  securities. The objective of the Canada-Australia proposal was to 
enhance clearance procedures, not to impede them  further. What Canada was suggesting was for 
customs to be required to establish procedures that  would allow for quicker release of goods than 
would otherwise be the case, in the event that tr aders were able to provide customs with some 
financial guarantees.  The proposal was not meant to require or to allow customs to impose monetary 
securities on all customs transactions. 
316. Delays in release of goods at border points were often due to the fact that customs authorities 
needed time to determine the classification and th e value of goods imported for the purpose of 
determining the duty to be paid.  What Canada was proposing was to separate the payment process 
from the actual movement/importation of the goods, in order to accelerate the release of the goods. 
317. Such procedures would provide traders with the possibility to have their goods released 
before customs completed the final clearance pro cedures should they wish to do so.  Under such a 
system, customs authorities would feel comfortable releasing the goods before completion of final 
clearance procedures, as they would have the po ssibility of recovering duty owed in the case of 
default payment from the monetary security. 
318. Regarding a point made by Chile on the specific circumstances Canada listed in its proposal 
where collateral securities might be used, Canada woul d like to clarify that they had been mentioned 
primarily for illustrative purposes.  Canada agreed  with Chile that circumstances might differ from 
country to country.  Canada believed, however, th at in cases with significant delays in final clearing 
procedures, it was important to provide traders w ith the possibility of having their goods released as 
quickly as possible. 
319. In relation to the question from Kenya, Chile and Colombia regarding SMEs, Canada fully 
shared Pakistan's assessment in that regard. 
320. On Kenya's query regarding the proposal's refe rence to Article 13 of the Customs Valuation 
Agreement, Canada would like to reassure Kenya that Canada had no impl ementation concerns in 
relation to that Article.  The reason for mentioning th e Article had simply been to illustrate that the 
concept of providing for the use of collateral secu rities already existed in the context of customs 
valuation, and that Members might wish to apply it in other circumstances as well. 
321. With respect to the example provided by Mongo lia in the case of goods in transit, Canada's 
proposal would not impede their movement.  In Cana da's view, goods in transit should not be subject 
to the payment of any duties, as long as they were  not destined to the intermediate country.  The 
Canadian proposal was relevant only to the extent that customs was in a position to impose duties on a 
given good. 
322. Regarding the question of Paraguay as to how, in practice, such a system could work, Canada 
believed that there were different ways to implem ent such a system in individual countries, depending 
on the legal framework and the financial services system in place.  
323. Finally, regarding Turkey's concern that rele ase of goods on the basis of collateral security 
could possibly undermine controls, such as those related to specific licensing requirements related to tariff classification, Canada believed that countries should have reasonable flexibility in determining 
when release on collateral security might not be av ailable, for reasonable a nd legitimate reasons. In 
Canada's experience, for example, goods subject to health-related or public safety requirements might 
provide grounds for the unavailability of collateral s ecurity.  The release of such goods might require TN/TF/M/4 
Page 48  
 
the submission of more extensive information, their physical examination, and a possible re-assessment at the time of entry. 
324. The representative of the European Communities
 replied to the questions raised by 
delegations with respect to the EC’s submission TN/TF/W/23.  
325. With respect to the concerns about the impli cations of the proposed measures on government 
revenue, the EC fully recognised that customs (a nd potentially other concerned agencies) fees and 
charges could be an important source of govern ment revenue. The modalities stated that Members 
shall address the concerns of developing and least-dev eloped countries related to cost implications of 
proposed measures.  In taking the proposals forward, country experiences were potentially useful. In a 
number of interventions, Members had already ou tlined their experiences with Trade Facilitation 
reforms. More generally, a lot of work had alr eady been done on country experiences by the World 
Bank and others, on which Members c ould draw in their work.  There was a consistent finding that 
Trade Facilitation reforms boosted go vernment revenue.  Experience had also shown that, where there 
were costs, they were far outwei ghed by benefits.  It was necessary to work together in the NG to 
address concerns.  
326. As for the criteria for determining the legitim acy of fees and charges, the EC had proposed 
two elements.  Other Members had come forward with additional ideas. A first element was disciplines or parameters on fees and charges in spired by GATT Articles VIII and V and dispute 
settlement rulings. A key element was that fees and charges should be related to the cost of services 
provided and not the value of the product. A sec ond element was the establishment of a list of 
permissible fees and charges. That would be a useful way to decrease the number and diversity of fees 
and charges.  There was need to reflect on the pr ecise criteria. The EC did not yet have any specific 
proposal in that regard, but some useful id eas had come up in the discussions, such as the 
discontinuation of consular fees,  which added no value and were unnecessarily burdensome on trade.  
327. With respect to the questions raised on EC document TN/TF/W/6 and the expressed concerns 
on their scope of the proposed measures in relati on to the modalities, the modalities defined the scope 
of the negotiations in terms of the clarification and the improvement of GATT Articles V, VIII and 
X.  The text of GATT Article X had been uncha nged for a long time. There were omissions and 
loopholes that needed filling in terms of clarifying and improving the Article. There was a clear need 
to ensure that information of use to traders was available to them, such as guidelines and guidance in 
terms of interpretative or explanatory notes issued by customs or specific border points.  It would be 
useful to capture that to ensure  that day-to-day business needs were addressed and clarified and 
improved rules had a real impact. 
328. On the question about the meaning of "managemen t plans", the EC was ready to reflect on the 
terminology but would like to capture the spirit of its proposal for the publication of information on 
management plans. Management plans could be seen as significant plans by customs and other 
relevant agencies, which had an impact on import, ex port and transit. Those plans could be related to 
the implementation of clarified and improved Trade Facilitation commitments and to potential WTO 
commitments. Examples included plans to switch to the electronic submission of documents and plans 
to change the functions of certain customs offices.  
329. As regards the expressed concerns about capacitie s for internet publication, the EC believed 
that, where feasible and possible, there should be access to information on-line. Paragraph 2 of the 
modalities was clear on the link be tween implementation capacities and commitments. As proposals 
came forward, the Group could look at capacity i ssues and identify Members' current situations, their 
needs and priorities, gaps, cost implications and po ssible technical assistance needs.  In the case of 
internet publication, the EC believed that th e capacity implications would be limited.  TN/TF/M/4 
 Page 49 
 
 
330. As for the question of whether there was a need  for multilateral rules on prior consultation, 
the EC considered that to be an important issu e.  The EC had focused on consultative mechanisms 
concerning traders. Other Members had come forward with other useful ideas (such as notifications, 
etc.). There was a need for prior consultation to ensure Members made informed choices and to help 
avoid unnecessary barriers to trade. There had been  a positive experience with prior consultation 
under other WTO Agreements and the EC had a positive experience with its own consultation 
procedures (e.g., internet consultation on the refo rm of the Community Customs Code). Multilateral 
rules on prior consultation could he lp domestic reform, locking in good practice. It could help reform 
in trading partners.  
331. With respect to the understanding of “minor a ppeals”, the EC considered appeals in cases of 
low value assignments, of imports by individual s and appeals in cases where duties payable were 
below a certain threshold to constitute relevant examples. A standard time should be set for their 
resolution.  One should not lose sight of other appeals, which were also important and where improved disciplines had to be developed as well. 
332. With respect to technical assistance, there wa s no equivocation on technical assistance needs 
in relation to commitments advanced in context of  the Trade Facilitation negotiations. That was clear 
from the negotiating  modalities. Certain proposals, for example on GATT Article X, might not be 
resource intensive. As proposals came forward, one  had to look at Members’  situations, their needs 
and priorities, capacity constraints and possible technical assistance. The rapid submission of 
proposals was important to facilitate that. The EC and its Member States were main donors of 
technical assistance. Trade-related assistance was a priority for EC development co-operation and 
Trade Facilitation was a key element of that. The EC worked closely with recipients to identify 
projects, both ongoing and planned, and also work ed in close collaboration with international 
organisations.  
333. As for the requested clarification of the EC’s appeals proposal, the EC was of the view that 
appeals to a body issuing a decision were potentially  the easiest and quickest way to resolve disputes. 
If a dispute could not be resolved by that, there should be the possibility to appeal to a separate 
independent body or agency.  One had to look at r esource constraints and a possible role for technical 
assistance.  
334. The representative of New Zealand
 agreed with Switzerland on applying an objective 
standard in tariff classification and on requiring all Members to use the HS system. For most Members, it was already the practice.  New Zeal and saw a role for the WTO in ensuring that 
Members  applied an objective standard to all tariff classification procedures.   
335. As for the concerns raised by Kenya, Fiji, and Antigua and Barbuda about the proposal for 
Members and traders being given the right to co mment on proposed rules/procedures/policies with 
commercial effects to go too far with respect to  inputs and ideas from outside their domestic stake-
holders, New Zealand wished to recall that its sugge stion was very similar to the kind of obligation 
already existing in other WTO Agreements such as the ones on Technical Barriers to Trade.  It would 
be anomalous not to include a similar provision in re lation to Trade Facilitation measures.  Also, what  
New Zealand proposed would not diminish or rem ove the sovereign right of Members to introduce 
measures, but would simply seek to ensure that su ch measures were well-founded.  The idea was to 
provide a mechanism to better involve the players di rectly affected by new rules, regulations and 
procedures relating to Trade Facilitation.  That w ould not only mean that decision-makers were better 
equipped to make fully-informed decisions but also he lp ensure that those dir ectly affected by their 
decisions had at least the opportunity to register their viewpoint.   
336. Chile's and Singapore's questions about New Z ealand's suggestion to agree on more precise 
and operationally-effective provisions to minimize documentation and develop a menu of standards to 
that end raised useful points about how that might wo rk in practice. That should be considered further TN/TF/M/4 
Page 50  
 
as Members developed the proposal.  The backgro und to that proposal was that New Zealand had 
been hearing from its traders about excessive docum entation requirements in many Members. At the 
same time, New Zealand had found it hard to get a se nse of the scale of the problem.  The impression 
had been that there was little understanding about Me mbers' current administrative and documentation 
frameworks and that it therefore would be useful to begin with a one-off notification of 
documentation and entry systems which Members cu rrently had in place or in preparation.   
337. New Zealand recognized that it might seem ironi c to ask Members to create more paperwork 
in order to then be able to reduce it, but saw it as a necessary first step.  Based on that information, 
Members could then look at practical ways to minimi ze documentation requirements at the border.     
338. Korea's proposal to accept copies of documents and harmonize and standardize documents 
might also be a useful part of the menu for re ducing excessive documentation foreshadowed in New 
Zealand's proposal.   
339. The representative of the United States  replied to questions raised with respect to the US 
proposals.  
340. With respect to internet publication, one of  the questions received from India expressed  
concern about judicial decisions having to be pub lished by the government against the background of 
private reporting companies doing publications of some of those decisions in India.  The US wondered whether India could defi ne its question since it believed that Article X already required 
judicial decisions to be published promptly in su ch a manner as to enable governments and traders to 
become acquainted with them.  The US assumed that India was not suggesting to eliminate that publication requirement as an improvement or clarifica tion of Article X.  The US proposal on internet 
publication was based on the US conclusion that inte rnet publication was an even more cost-efficient 
way for a Member to meet a commitment on publishing decisions, regulations and the like.  The United States knew that, sometimes, that could ev en be accomplished as easily as through a simple 
hyperlink to another website where such decisions would be available.  In that regard, the United 
States welcomed India's question as it raised the need  for working together on  further refinement as 
Members clarified what publication commitments should exist for a 21
st century trading environment. 
341. The US’ comments on internet publication were also relevant to Kenya's question about the 
sufficiency of federal gazette publication.  First,  the United States would like to note as a practical 
matter that Kenya's revenue authority had taken an excellent approach to maintain a comprehensive 
internet access to its customs legislation, tariff sch edules and other information, even providing the 
ability to quickly download the forms needed for customs transactions. The United States would like 
to see that undertaken by other countries, representi ng potential markets, where they could not afford 
to hire someone to check the official gazette. While there were important gains from the positive 
effects of enhanced transparency, internet publi cation was also far less costly than physical 
publication.   
342. Concerning advance rulings as an initial matte r, the United States agreed with Egypt and 
others that such rulings would not be applicable in  the case where customs determined that the party 
who obtained the ruling misrepresented the fact of the transaction.  Several Members had asked about 
the scope of Article X and how adva nce rulings fitted within that.  The United States was of the view 
that it was clear that a proposed commitment for an  advance ruling regime represented a significant 
improvement to the current provisions governing "the publication and administration of trade regulations" as stated in the title of Article X.  Notably, the first provision in Article X reflected the 
relationship between transparency and certainty.  It  articulated a commitment to publish a wide range 
of items on specific matters such as tariff classification or  valuation "in such a manner as to enable traders to become acquainted with them".  The ability to become aware of the treatment to be 
accorded to one's own goods upon importation, in a dvance of the importation, was the very core of 
Article X's 1
st paragraph.  Already in 1947, the value of providing certainty to the smooth flow of  TN/TF/M/4 
 Page 51 
 
 
trade was acknowledged.  A rulings regime improved wh at was already set out in Article X, providing 
even greater certainty in advance of the trade being conducted.  And that was a benefit to traders and 
customs authorities alike.   
343. Concerning the scope and subject matters for rulings, the United States appreciated all the 
comments.  That was exactly the kind of exchange Members needed to conduct.  The United States 
looked forward to addressing those topics in greater detail as work proceeded.  The United States also 
fully agreed with Jamaica that country experi ences in undertaking those measures were highly 
relevant to the consideration of such a propo sal. More information would be provided.   
344. Regarding Chinese Taipei's question on what the United States had in mind for mutual 
recognition regarding rulings, the United Stated did not yet have a specific proposal.  What the US  
had in mind was for all Members to explore toge ther the possibility of that commitment being 
implemented through means other than for each Member to establish a ruling regime.  The United States believed that there were perhaps other options  such as maintaining a regional authority or other 
mechanisms such as bilateral or plurilateral mutu al recognition.  Or, using experience outside the 
capacity of some Members.  It was necessary to work closely with those Members and to further 
refine and explore those ideas.  The US would not preclude a role for  the WCO.    
345. As for express shipments, express delivery as an industry was moving away from simply 
shipping high priority documents. That was still be ing done, but it was moving in the direction  of  
shipping components for  manufacturing.  The global economy had really changed over the last 20 
years.  Manufacturing operations had become inter- continentally integrated with the production of 
parts occurring in one country and final assembly o ccurring in another, half-way round the world.  
Size and weight limitations on express delivery services made investment decisions in many 
developing countries more problematic and c ould prevent investments altogether. Many 
manufacturers had high-value electronic components, for instance, such as r obotic controls from 
manufacturing assembly operations and needed express delivery to send replacement parts to customers all around the world, because it was too cos tly to maintain an inventory of replacement 
controls at the assembly site or to shut down the assembly operation to wait for the replacement parts.  
Restrictions on value which India enquired about could prevent express delivery companies from meeting that need in the market.  Mining operatio ns in developing countries had also been made 
feasible by the capability of highly sophisticated mining equipment to diagnose its own mechanical 
operations into transmitting a signal by satellites if a pending failure was detect ed.  Replacement parts 
for mining equipment were often huge and restricti ons on the size of express shipments could make it 
much more costly, if not impracticable, to use the most modern mining equipment in developing 
countries.  Those were just a couple of examples of  why there should not be either value or weight 
limitations on express shipments.  The global economy continued to change in ways that could not 
always be foreseen.  But the need for rapid and relia ble logistics was certain to be part of the economy 
in the future. Placing arbitrary limits on the ability of express delivery companies to serve customers 
and countries did not serve any evident purpose and could have significant adverse consequences.   
346. The representative of Korea
 replied to the questions on the Korean proposal to accept copies 
of documents that the relevance of information on originals was already at the hands of customs 
authorities or other relevant agencies or customs brokers.  If there were originals and there was 
information, copies could be accepted.  Also, when traders were not able to provide originals in a 
speedy manner copies could be accepted first if the originals could be provided later.  As for the type 
of copies, examples included bills of lading, in voices and relevant certificates of imported goods.  
With respect to concerns about falsification a nd fraudulent intent, Members could always request 
originals at a later stage, and if false intention was found, penalties could be imposed.  The temptation 
to deceive documents was usually stronger with resp ect to originals, so that there was reason to 
mistrust originals, while there was no need and no temptation to deceive copies as the originals were 
already in the hands of customs authorities. TN/TF/M/4 
Page 52  
 
347. As for the question on the suggested establishm ent and publication of average release and 
clearance times, defining the average time should be left to individual Members, as every country's 
situation was different. Korea did not envisage one universal set of average time.  There were some international guidelines, such as the WCO's Time Release Study, that could be used.   
348. On the proposal for a Single Window for data and documentation submission, Korea felt that 
establishing such a Single Window was not a simple t ask.  However, it was one of the pertinent means 
of facilitating trade.  Therefore, Members should recognize such a system.  With respect to the 
harmonization and standardization of document formats, Korea proposed to use the WCO Customs 
Data Model and UN Layout Key because it had been d esigned and created by experts in the field.  
349. With respect to the questions on Korea's fi rst proposal (TN/TF/W/7), the suggested Single 
National Focal Point could be created by internet websites for virtual offices, or Members could set up 
an enquiry desk, depending on their capacity. The actua l choice on the type of agency would be left to 
the Member country.  The main suggestion was for th e Focal Point to deal with all the information 
and facilitate information distribution and sharing.   As for the envisaged interested parties as 
addressees of the information, Korea basically in tended to include both dom estic- and international 
parties.  Korea was, of course, also sharing information with all domestic interested parties, but 
wanted to expand that mechanism to the WTO level.  As for the media  used by Members for 
publication, Korea had mentioned that both intern et websites and widely accessible means such as 
official gazettes could be a reasonable tool.    
350. As for the Philippines' comments on the coverage  of publication and whether advance rulings 
of general application w as related to Article X.1,  Korea would revert to that  at a later stage. With 
regard to the Philippines' concern about the pr ior comments system, Korea proposed only a very 
limited fashion aimed at reviewing core measures, which did not go beyond commenting. Korea did not demand any revision or accommodation of the comment. It would be up to each Member to decide on whether to accept the comment.  In that  sense, Korea's proposal was no stronger than what 
was provided for in the TBT Agreement. 
351. The representative of Australia
 agreed with Egypt that advance rulings were a good tool to 
facilitate trade.  Australia's propo sal accommodated the concern raised by Egypt that there should be 
no commitment for the customs author ity to issue an advance ruling if  there was a misdescription of 
goods.  In particular, Australia envisaged that the customs administration could decline to issue an 
advance ruling if the request was incomplete or inaccurate.  Moreover, as noted in paragraph 4, 
customs authorities would have the option to modify or evoke an advance ruling immediately, should 
circumstances change or where inaccurate or false information had been provided. 
352. The representative of Chinese Taipei  replied to Chile's question on whether Chinese Taipei 
used the proposed calculation tables for its fees th at that was indeed the case. All fees imposed by 
Chinese Taipei's customs had been adopted on that  basis. However, as those kinds of calculating 
tables had only been introduced two years ago, more  time might be required to adjust some fees on 
that basis.   
353. With regard to the proposed periodic review , it was Chinese Taipei's experience that such 
reviews could be conducted by competent governme nt agencies to evalua te the necessity and 
appropriateness of the levels of the applied fees and charges so as to reflect the approximate costs of 
service rendered.  The review  should take into account the changes for administrative costs and 
expenditures as well as other relevant factors.  
354. As for the proposed one-stop services, the goal w as to set up such a facility at every clearance 
station to provide a full range of services to busines s sectors and to resolve promptly the problems, 
especially regarding clearance.  Currently, around- the-clock services were provided for all express 
consignments and cargos to be released alongside the aircraft or ships.  For some import and export  TN/TF/M/4 
 Page 53 
 
 
shipments, customs assigned an officer to pro cess urgent importation and exportation, if advance 
applications were duly made.  However, at the moment, Chinese Taipei only wished to  recommend 
that information centres or enquiry points we re established, which was more feasible. 
355. Regarding the Philippines' comments on the pr oposal to use the WCO Customs Guidelines 
for Express Consignments as a reference, Chinese Taipei  had just been informed  by the WCO that the 
title of the Guidelines had changed to Guidelines for the Immediate Release of Consignments by 
Customs.  The Guidelines had no legal character or binding force.  As for the question of whether 
Chinese Taipei wanted to make those comments a legal binding reference, Chinese Taipei was open 
to discussing that further.  
356. The representative of Uganda  responded to the questions raised  by delegations with regard to 
document TN/TF/W/22, noting that it would add more clarity to the three Articles.  
357.  As for Romania’s request for information on how many countries still used consular fees, 
that information was not available to Uganda.  While it might not be possible to list the specific countries which continued to apply the practice, ther e were certainly many which still did. There were 
some initial findings pointing to that and efforts woul d be made to revert with more figures at a later 
stage.  What was clear was that the problem ex isted and that Ugandan traders had repeatedly 
complained about that.  In the case of Uganda, some  countries charged consular fees at the destination 
of exports of major interest to Uganda.  The level of those fees posed a major constraint to expanding 
and sustaining Ugandan exports to those destinations.   
358. As for the question raised by Kenya on why the issue had taken so long to be resolved, it was 
apparent from the negotiating history of Article VIII that the issue had always been recognized as an 
impediment to trade. It was an issue that ought to be discussed and resolved.  One must recall, 
however, that the emphasis on revenue implications  probably were at the heart of the matter.  
However, when one recalled that Article VIII prohi bited the collection of fees and charges for fiscal 
purposes, the argument did not hold water.  Therefor e, Uganda believed that instead of dwelling on 
why it had taken so long to resolve the issue, the focus should be on what could be done, and one 
should  seize the opportunity to eliminate such fees.  The reduction that that would have on 
transaction costs which would allow Ug andan exporters to participate in international trade.  It was a 
great opportunity for Uganda within the contex t of the Doha Development Agenda to score 
development results. The Doha Development Agenda  should be seen as a development Round and for 
Uganda, facilitating trade lay at the heart of develo pment and therefore, any efforts to ensure that 
trade was facilitated and that the smaller countri es, particularly the LDCs and the landlocked 
countries, gained much from the trade, would facilita te their development.  Therefore, Uganda saw 
that issue as an issue of development. 
359. The representative of Kenya
 said that Members had to remind themselves that clarifying and 
improving the three Articles did not necessarily mean creating additional obligati ons.  Work had to be 
restricted to the three Articles. Looking at what happened on the ground might lead to broadening the 
mandate, which was not the purpose of the Group's exercise.  Good work was being carried out, but 
Kenya was questioning the need to have rules on tho se areas if things were working well.  One should 
try not to kill the currently existing motivation in going beyond the three Articles.  The advance ruling 
proposals, for instance, did not qualify since Article X talked of laws, regulations, judicial decisions and administrative rulings of gene ral application, while advance rulings were quite specific.  
Furthermore, Kenya wondered whether binding rules were needed for that purpose.  
360. The comment about establishing an internet facility  not being costly was not helpful.  What 
was required from the proponents was a picture of what  exactly a proposed measure would cost to be 
implemented. That would help developing countries that had not even been able to identify their 
priorities to know what kind of assistance they need ed.  So far, this was not coming out clearly. TN/TF/M/4 
Page 54  
 
Developing countries needed to know what woul d be required to undertake the proposed measures 
without committing themselves to anything.  
361. New Zealand's principle on which they based their proposal on prior consultation went 
against some other WTO principles. Agreeing on comme nts before a measure's entry into force, while 
at the same time also having agreed on certain parameters for domestic laws, went beyond the 
improvements Members needed to make in the course of the negotiations.  It was gratifying to hear 
from Korea that those comments would not have to be taken into consideration.  But that also posed 
the question about the purpose of the whole exercise.  
362. The US comments on express delivery reminded Keny a of the need to have trade facilitation 
in services.  Kenya was not sure whether that fell w ithin the mandate but if it was to be considered 
within the NGTF, one could consider the possibility of  looking at mode 4, as that would also facilitate 
trade in services.   
363. The paper prepared by the World Bank was welcomed.  The points mentioned on pages 4 and 
6 could help Members rethink whether the propo sals actually fell within the Group's mandate.  
364. The representative of India
 clarified in response to Japan's observations that, the comments 
about judicial decisions being available in public domains were references to them being available 
with the government as a first step. That was not th e case in India. In India, those judgements were 
pronounced by the courts and from the courts they were made directly available to the public. The 
government did not have a role in that.  India di d not want to take away the commitment which was 
already provided for in Article X regarding the publica tion of judicial decisions.  India was very much 
aware of the value of transparency of judicial d ecisions.  India's suggestion was merely to have the 
realities of the 21st century taken into account and to see wh ether transparency requirements always 
had to be complied with by the government or whether it was not also possible to meet the 
transparency requirements through other domains.  Would that not be enough to fulfil that 
commitment?  In India,  there was a lot of private publication which would make India fully compliant with transparency obliga tions regarding judicial decisions. 
365. The representative of the World Bank
 said that a successful and ambitious outcome from the 
negotiations was good news for all.  LDCs and developing countries probably had the most to gain 
from the process. The Bank was very interested in  supporting the process to the extent possible.  
366.  Based on Annex D and its specific mention of the World Bank, the Bank looked very hard to 
see how to best contribute to the process and really add value based on the comparative advantage that 
the Bank had.  Soundings had been undertaken w ith negotiators involved in the process.  Two 
possible ways had emerged from that on how to go about it.  The most obvious was in terms of long-
term development finance for implementing anything that came out of the negotiations.  But the Bank 
also felt it could play an active role in bette r equipping Geneva-based negotiators to actively 
participate in the negotiations process as such. A Trade Facilitation Negotiations Support Project had 
therefore been developed, which was fairly simple.  
367. The project itself was based on four key assumptions. The first one was that the subject matter 
was rather technical and sometimes complex.  While  the proposals looked simple, there was actually a 
lot of data that needed to be wo rked out.  For non-customs or border processing experts, that could be 
quite difficult.  The second assumption was that many developing and least-developed countries only 
maintained relatively small offices in Geneva, with the officials stationed in those offices having to 
cover a broad range of issues.  They had no time to develop the kind of technical expertise required to 
participate in the process as full y as they possibly should.  The th ird assumption was that negotiators 
did not have timely and real time advice from their capitals, which was something that had repeatedly 
been reported to the Bank.  Therefore, when proposal s were put on the table and sent back to capitals,  TN/TF/M/4 
 Page 55 
 
 
the responses were often not as timely or as comprehensive as they should be.  It had also been assumed that, in many cases, the necessary coordination mechanisms had not been established yet.   
368. The Trade Facilitation Negotiations Support Proj ect was designed to assist those Members 
which felt that they needed such assistance to establish appropriate coordination mechanisms in their 
capitals.  It brought together specialists from customs and other border management agencies to 
identify needs and priorities and implementation issu es, specifically as they related to the WTO Trade 
Facilitation negotiating agenda.  The second goal was to  create a real time analysis and reporting link 
between Geneva-based negotiators an d the capital-based experts.  And,  thirdly, the project aimed at 
supporting countries by providing an assessment framewo rk to assist Members to examine the costs 
and benefits of any proposal made.  The TA &CB needs of individual Members would vary, 
depending on how much had already been done on what the domestic capacity was and on what kind 
of arrangements existed in each country.  The TA&CB needs donors and developed country Members 
would have to respond to would therefore vary from country to country.  It was, therefore, also 
necessary for the Bank to activel y work on that needs and pr iorities assessment process.  
369.  The Trade Facilitation Negotiations Support proj ect had three core components.  The first 
was the preparation and distribution of a Trade Fa cilitation Negotiations Support Guide, a copy of 
which had been made available for the meeting. Th at document was currently in draft form and the 
Bank was very keen to receive feedback from Memb ers about it in any form.  The guide was a self-
standing tool.  It was available and ready-to-use. Any Member could take it, read it and use it to 
establish the kind of coordination mechanisms men tioned previously.  It was very practical, as 
opposed to theoretical, and it was non-prescriptive.  Each country could adopt its own approach to 
that.  
370. The second component dealt with conducting a series of pilot programmes at the national 
level to assist countries establishing those mechanis ms and to test the relevance of the Guide. The 
Bank intended to conduct 6 or 7 of those that year, 3 or 4 before the summer.  At present, and as a 
start to those programmes, the Bank was going into final details with 3 countries (Jamaica, Uganda, 
and Sri Lanka).  The Bank was also looked at a Fr ench-Speaking African country as candidate for a 
pilot programme before the summer.  As part of that approach, the Bank would also be looking at conducting some regional training-of-trainers seminars .  The first would be in Latin America and the 
second one in Southern Africa.   
371. The third part of the Project dealt with information and knowledge sharing.   The Bank would 
be conducting seminars and prepari ng discussion papers about the core  issues of concern to Members 
and would be doing whatever possible to share the lessons learnt from the pilot projects.  
372. The Guide had 4 chapters.  The first chapter provided some background and an overview of 
the negotiations.  The second chapter offered so me guidelines and advice on establishing effective 
coordination and consultation mechanisms.  They were non-prescriptive and would vary from country 
to country.  The third offered a very simple frame work for analyzing the key issues involved in the 
negotiations.  The Bank would assist countries to look at the costs, benefits and implementation issues 
associated with any proposals tabled in Geneva.  The 4
th chapter provided advice and guidelines on 
how to establish real time feedback mechanisms to  allow capital-based experts to provide advice in a 
timely fashion. 
373. The framework for covering those issues consiste d of a number of elements.  It looked at any 
legal implications of proposals that had been cons idered, as well as at administrative or procedural 
changes that were required to comply with potential commitments, which would depend on a 
country's particular circumstances.  Looking at what had been proposed so far one could see that many of those measures had already been ag reed on as a commitment under regional trading 
arrangements or bilateral agreemen ts. From a customs' point of view, it was sometimes more difficult 
to have two systems in place than one.  The frame work would also look at coordination issues TN/TF/M/4 
Page 56  
 
between Ministries and agencies as not all of the things  that had been proposed so far related only to 
customs.  It would also look at financial and ot her resource requirements. As mentioned by Kenya, 
some of the things that had been suggested rea lly did not cost much.  But when put together, 
collectively, the costs could be quite significant for some countries. That was something that the 
process would assist in identifying.  It would lo ok at what the training, technical assistance and 
capacity building needs were,  specifically as they re lated to the negotiating agenda.  It would also 
look at the time requirements and difficulty involved  to achieve implementation, which would have 
implications for the S&D issues.  And most importa ntly, and perhaps somewhat understated so far, it 
would look at what the benefits to both governments and trade were.   
374. Following the presentation of the draft Guide,  the Bank would look at how to improve it 
further based on the feedback received.  Then, the Ba nk would engage in a pilot project in April, with 
2 or 3 more envisaged for May and June. The results of  those pilots would be shared.  The first one at 
the May meeting, and the next one at the June  meeting of the NG. The Bank would also conduct 
additional national and regional activities after the su mmer.  In all cases, the pilot programmes would 
be conducted with the full support and participation of the WCO. The Bank did, however, still need 
financial support to roll that programme out in th e longer term.  The Bank had obtained some funding 
for the initial 3 or 4 programmes but was l ooking for additional funding support from donor 
organizations.   
375. The material the Bank was providing, not only the Guide but the programme for the national 
and regional workshops, lesson plan and any other supporting material, was always going to be public 
domain information.  Therefore, if national donors or international donors would like to use that 
material to conduct their own workshops and seminars  and pilots to assist Members to implement that 
tool, the Bank very much welcomed that. The mate rials would all be available for Members to take 
with them. 
376. The representative of the OECD
 presented two documents prepar ed by the OECD.  The first 
was a compilation of analysis documents the OECD Trade Committee had prepared during 2002 and 
2003, addressing different aspects of GATT Articles V,  VIII and X and related country experiences.  
The documents contained in the compilation were a ll based on proposals that had been presented by 
WTO Members in the period between end-2002 and Ca ncun on ways to clarify and improve relevant 
aspects of GATT Articles V, VIII and X. As the OE CD had been involved in work on good regulatory 
practices in OECD countries and outside the OECD, it had been considered useful to share those 
country experiences with best practices and benc hmarking with the WTO Membership, in order to 
support their efforts in clarifying and improving the 3 Articles under discussion.  The trade 
community had decided to draw on their regulatory issues database in current good practices on how to bring transparency and simplification in borde r procedures.  The compilation also contained two 
documents on experiences from developing count ries that had introduced customs and border 
procedure reforms.     
377. As for the content of the analysis in that sp ecial issue on Trade Facilitation, a review of the 
information collected by the OECD Trade Committe e through its regulatory fund programme showed 
that many of the proposals WTO Members had put on the table in the area of Trade Facilitation had already been enforced in varying degrees in sev eral OECD and non-OECD countries.  Bilateral 
cooperation in regional or global integration appeared to be im portant driving forces behind the 
introduction of facilitation measures at the domestic level, with endeavours to enhance government 
efficiency and productivity through customs moderni zation and automation also playing an important 
role.  But it also showed that there was much more to be gained if further coordination and 
simplification could be achieved, includi ng through multilateral WTO initiatives.   
378. Many of the proposals currently discussed had been analyzed in those papers, covering a 
variety of tools, including risk assessment tec hniques, the downscaling of physical inspection, 
cooperation between import and export authorities,  pre-arrival processing of data, development of  TN/TF/M/4 
 Page 57 
 
 
Single Window mechanisms, post-clearance audits or special programmes for authorized traders.  It 
showed that there had been different ways for implementing those tools.  One size did not fit all in that area. Country practices demonstr ated that very clearly.  The document could give inspiration as to  
how possible commitments could be introduced  and implemented at the national level. 
379. As far as reforms in developing countries were concerned, it had been seen that countries had 
proceeded in customs and border agencies moderni zation because of a series of pressing symptoms of 
malfunction, unsatisfactory revenue collection a nd the fact that transaction costs imposed on 
businesses by inefficient customs operations were found to offset some countries' competitive advantage of low labour costs.  Successful reform  endeavours in developi ng countries had produced 
impressive results in terms of enhanced revenue co llection and reduced operating costs, and often paid 
back quickly the investments made for customs modernization.  What was important was to properly 
identify the problem areas and to coherently design reform programmes.   
380. The second document was an analysis of cust oms fees and charges on imports by the OECD 
Trade Committee.  The objective of the study was to  provide as clear a picture as possible of the use 
of different types of customs fees and charges and th e problems they might cause to traders.  Data had 
been collected for that purpose from WTO Trade Policy Reviews, NAMA notifications and a number 
of other reports.  The study showed that various t ypes of customs fees continue to affect world trade, 
particularly in low and middle-income countries.  Fees related to customs inspections and similar 
services were found to be applied by half of th e WTO's Member states and customs surcharges were 
applied in a third of the reviewed Members.  The st udy also revealed that the use of customs fees and 
charges had evolved over time.  If one compared r ecent information with data collected in the early 
1980's, the use of both customs surcharges and consul ar invoice fees had markedly declined and taxes 
on foreign exchange transactions now seemed to be abolished.  On the other hand, more countries 
now charged quota fees for the use of various customs -related services.  A great majority of all fees 
were applied ad valorem  rather than with regard to the underlyi ng costs of the service rendered.  Half 
of the fees and charges applied by high-income economies were ad valorem,  while the corresponding 
figures were around 3/4 in middle-income economies and 5/6 in low-income economies.  The 
frequent use of high ad valorem  fees indicated that several countri es applied customs fees for reasons 
other than to cover the costs of rendering cust oms services.  The paper concluded that, although 
GATT Article VIII required customs fees and charg es to be limited in amount of the approximate 
costs of services rendered, frequent applications of high ad valorem  fees and charges signalled that 
clearer guidelines on how customs fees and charges s hould be calculated would be useful and would 
remove some of the uncertainties regarding the lega lity of their application. In addition, a more 
precise definition in Article VIII:1 a of what constitu ted the services whose costs were intended to be 
reflected in the fees would also remove some of th e uncertainties in the interpretation of the Article 
and potentially lead to a reduction in trading costs.  
381. The representative of Sri Lanka
 considered the Trade Facilitation Negotiations Support Guide 
to be very useful for small delega tions.  Sri Lanka would have liked to have responded to some of the 
more than twenty-five submissions that had been su bmitted within the span of merely two meetings of 
the NG and have given a more detailed response li ke India, the US, Australia or other developed 
countries.  Unfortunately, Sri Lanka lacked the capacity to do so.  Support in identifying and recognizing real needs and in providing response in real time, as offered by the World Bank was 
therefore important to be able to engage in the nego tiations effectively.  The inclusion of Sri Lanka in 
that project would therefore be welcomed.  It migh t enable Sri Lanka to th en respond in substance, 
and in a more coordinated manner,  involving all relevant agencies.  The OECD documents, too, were 
useful.   
382. The representative of Nicaragua
 considered the contributions by the OECD to be very 
valuable.  A correction was however required re garding Mr. Engman's "Analysis on Non-Tariff 
Measures: Customs Fees and Charges on Imports", which made reference to consular fees being TN/TF/M/4 
Page 58  
 
applied in Nicaragua on page 34.  Those consular fees had however been eliminated by Nicaragua in 
2003.    
383. The representative of Egypt
 wondered whether the OECD coul d help other countries in their 
regulatory reforms and what would be th e mechanism for seeking such help.  
384. The representative of the OECD  thanked Nicaragua for the information. Unfortunately, it had 
not been possible for the OECD to check whether there had been any changes since the last Trade 
Policy Review. The data would be corrected.  
385. As for Egypt's question, the OECD did indeed  work increasingly with Non-Member countries 
on supporting regulatory reforms.  In the contex t of the various cooperation programmes the OECD 
had with regional grouping s, an initiative called "Mena" had recen tly been set up which could be of 
particular interest to Egypt.  While its focus was more on traditional trade subjects, it was an easy path 
for enhancing cooperation on regulatory issues.  There were other programmes dealing with 
regulatory issues in non-Member countries, one of them  being carried out in cooperation with APEC.  
A series of self-assessments had been elaborated.  The OECD  was working on ways for assisting 
leading non-Member countries interested in  tackling domestic governance improvements. 
386. The representative of the WCO  introduced the latest produc t of the collaborative effort 
between the WCO and the World Bank in support of the Trade Facilitation negotiations called Time 
Release Study Software.  The Time Release Study (TRS) had already been briefly explained last 
November as one of the WCO instruments referred to in the Customs Diagnostic Framework.  Given 
that one of the negotiating objectives was to exped ite the cross-border movement of goods, the TRS 
might be of interest to WTO members.  Designed to assist governments to measure the average time 
taken between the arrival of the goods (on the mean s of transport) and their release from customs 
custody, and at each intervening step, the TRS mi ght identify problems and bottlenecks in the cross-
border movement and clearance of goods. Its findings  might be a base for identifying a country’s 
trade facilitation needs and priorities.  The TRS was also used to stimulate efforts to improve the 
efficiency and effectiveness of customs cleara nce procedures and, possibly, other government 
agencies’ trade procedures. Egypt, Japan, Kenya,  Korea, Malaysia, Poland, Sweden, Tanzania, 
Tunisia and the US had already used the TRS. 
387. Assessing the findings might need some care , however. With respect to individual 
transactions, the variation from the aggregate averag e could be large, the time required for the release 
of goods widely varied depending on the mode of tr ansport, character of goods,  intervention of non-
Customs agencies, compliance records of the traders, etc. In add ition, different countries had different 
situations (e.g., number of cross border points, ma in mode of transport, trade patterns etc).  
388. The IT software for use with the TRS had b een produced in co-operation with the World 
Bank and Japan. It was currently being placed under  final customer test conducted in the WCO. A 
field test had concluded last week in Tanzania. Upon the final fine-tuning of the software, it would 
become available to all the WCO members and me mbers of the World Bank. Distribution of the 
software would be made on request. WTO Members in terested in the software were requested to 
register their interest with the WCO Secretariat or  through their customs administrations.  That was 
also the case for other products such as the Immediat e Release Guide, Customs Data Model and HS.   
389. The representative of UNCTAD  updated Members on UNCTAD activities related to the 
Group's work.  
390. With regard to technical assistance in the negotiating process, a first workshop had been 
carried out with the Core Group on Articles V and V III.  UNCTAD also partic ipated in activities for 
the African Group, jointly organized in the WTO by the ECA, ECE and UNCTAD.  Cooperation was 
becoming really good.   TN/TF/M/4 
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391. UNCTAD had also started developing technical notes on issues related to the proposals 
submitted to the NG.  A first one had been comple ted on customs automation and would be available 
soon through the GFP as the common platform of the organizations mentioned in  Annex D. As for the 
Trust Fund, a series of activities were planned both in Geneva and in capita ls.  In Geneva, UNCTAD 
planned follow-up measures with the Core Group in Ap ril and May.  There would also be seminars or 
workshops in Asia, Southern Africa and Latin Amer ica.  Spain had announced a contribution to that 
Trust Fund for activities related to Latin Ameri ca countries.  Other donors were welcome to 
contribute.    
392. An ad hoc Expert Group meeting had further been set up. The Expert Group meeting would 
take place in September, with the intention of placing the Trade Facilitation process into a 
development context.   It would be organized togeth er with the next meeting of the GFP in Geneva.  
Progress had also been made with regard to cu stoms automation in the framework of ASYCUDA, 
which related to some of the proposals made in the negotiations such as those on risk assessment or 
authorized traders. 88 countries were using it now.  
393. UNCTAD had also looked at the question of Si ngle Windows in the context of a developing 
country, the results of which had been publishe d in a document called "T he Establishment and 
Operation of an Electronic Single Window, the C ase Study of Guatemala", available on UNCTAD's  
website.  That case study would also form part of the basis of a Trade Facilitation  Handbook  
UNCTAD was  finalizing. A first volume on institu tional arrangements of Trade Facilitation dealt 
with Single Window arrangements as well as with na tional trade and transport facilitation committees 
UNCTAD had a lot of experience with.  
394. The representative of the Philippines  said that a recurring theme in the discussions within the 
Core Group had been country experiences.  Case st udies and concrete technical assistance such as the 
one on Guatemala was what developing countries need ed to understand exactly what was required for 
the suggestions tabled in the various proposals.  For instance, to evaluate  the usefulness of the 
proposal to provide advance rulings, it would be most useful if those countries that had already  
experience with advance rulings could share their expe riences in terms of what it entailed, how long it 
took them to implement it and at what cost. Only  when having such information would developing 
countries feel comfortable and be able to seriously assess whether they would be able to move in the 
proposed direction. There might be some financial im plications to that request, but, what was really 
needed were those country experiences. They shou ld include a kind of history of what happened 
before those countries were able to implement something successfully.  The Philippines therefore 
appealed to all international organizations a nd to those Members having presented proposals to 
provide assistance in that regard and document count ry experiences. It would be a valuable source of 
information for everyone.  
395. The representative of Kenya  informed that Kenya was one of the countries which had 
undertaken the Time Release Study, assisted by the World Bank and the WCO.  It had allowed Kenya 
to find out why they were not able to meet th e deadlines they had set for themselves to clear goods, 
which was 48 hours.  One element of information th at had emerged from that was that the blame was 
not on customs but on other cooperating agencies.  For instance, customs authorities could not get their advance manifest in time.   The study had helped Kenya see the necessity of acting as a team.  
The joint cooperation employed ever since really  worked, allowing Kenya to conduct verification 
jointly with other organizations if required. It had also helped identify shortfalls and ways to 
overcome them.   
396. It also made Kenya wonder whether there wa s actually need for bindi ng rules. Everybody 
knew what was good for oneself, for one's traders and even good for those exporting to one's country. 
The way things were working in Kenya, with cu stoms authorities and cooperating agencies trying to 
improve things, it would be sufficient to have some standard – non-binding -  rules to guide Members 
on how to go about Trade Facilitation at the multilateral level.  TN/TF/M/4 
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397. With respect to the OECD, a clarification was required regarding Michael Engman's 
"Analysis of Non Tariff Measures Customs Fees and Charges on Imports".  On page 31, Kenya was listed with a fee of 1% on the c.i.f value of agricu ltural vale and suspended duties of up to 70% etc.  
Those figures had been relevant in 2000 but were no longer up-to date as the duties had been abolished.  Kenya would be in touch with the OECD about that. Also with respect to charges, page 16 
indicated that Kenya levied an import declaration f ee of 2.75% of customs value.  That was correct, 
but the rest of the information was not, as the 1% indicated as charged by the Kenya Bureau of 
Standards was actually included in the 2.75%.  The information in the report seemed to have been 
based on the Trade Policy Review of 2000 which did not reflect the latest state-of-play.  
398. The representative of Australia
 expressed interest in having mo re information on the technical 
notes UNCTAD had mentioned as one if its projects on some of the issues under negotiation in the 
Negotiating Group. It would be interesting to hear what they consisted of, how they were prepared, 
what sources were used to prepare them, what would be the topics, and whether there was an intention 
to make them publicly available. 
399. The representative of Rwanda  endorsed the statement made by the Philippines.  Case studies 
would assist countries in participating better in the negotiations, in evaluating needs and costs and in 
having more confidence in the events taking place in  the course of the negotiations. The presence of 
UNCTAD was welcomed. The case study on Guatemala needed to be highlighted as other countries 
might benefit from it. The presentation by the WCO had been interesting as well, and the software 
presented seemed very useful. Rwanda also appreci ated the document presented by the World Bank, 
which was very useful for small delegations.    
400. Given the pace of the negotiations, Rwanda wondered, however, to what extent the 
organizations mentioned in Annex D would be able to effectively help developing countries and the 
least-developed ones to better participate in the ne gotiations, to know their needs, assess the costs 
implications etc.  What effective machinery coul d be set up in order for those countries to benefit 
from the know-how of those organizations?  Needs asse ssments at national level or, as a minimum, at 
regional level were important for making progress in the negotiations.  While UNCTAD's Trust Fund 
was appreciated, additional contributions might be necessary to cover additional regions such as East 
or West Africa.  If each organization could inform as to what they had set up to assist those countries,  
at least in making a needs assessment before July, that would be useful . A joint meeting between 
those international organizations, the African Group or  the LDCs could assist in that regard to see to 
what extent those organizations could assist those countries.    
401. The representative of Egypt  emphasized that the data included in the OECD report needed to 
be corrected because its data depended on the Trade Policy Review published in 1999. A new 
Presidential Decree in Egypt Number 300 enacted in  August 2004 had changed many of tariffs. Since 
that time, Egypt did not levy a 2% or 3% surcharg e on goods and services.  The data therefore had to 
be revised.  
402. The representative of China  corrected a section of the OECD report on non-tariff measures, 
on customs fees and charges on imports. Annex E of that report mistakenly claimed that China had notified an overhead of 0.15% of declared value levied by customs on all commodities.  That 
information dated from 2003 and was no longer up to date, as that kind of fee had actually been 
abolished last year.   
403. The representative of the United States
 said that the requested corrections of the OECD 
document underlined the compelling need for enha nced transparency of fees and charges on the 
internet by all WTO Members.  If such a system were in place, there would not be that much confusion.  The OECD made their best efforts to co llect that data based on the information available, 
but trying to get the information all in one place was obviously quite difficult.  That underlined the 
case for the transparency proposal made by the United States.   TN/TF/M/4 
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404. Korea's proposal articulated several key elemen ts of modern techniques.  Its focus on the 
importance of timely clearance and release of goods was closely linked to the fundamental element of systematically providing the means of rapid relea se of goods through a guarantee such as a surety or 
bond.  New Zealand's submission also made the case for focusing on how to ensure rapid clearance.  
The United States looked forward to working with Members to explore and refine an approach and 
how best to proceed in that area.   
405. The Japan-Mongolia submission (TN/TF/W/17) touched on a number of important elements 
that should be addressed in the negotiations thr ough concrete improvements to current commitments 
under Article VIII.  The US agreed with the discussi on about the need to clearly state and publicize 
penalty provisions and problems caused by inap propriate penalties for minor breeches.  That 
disproportionality particularly harmed SMEs.  Article VIII needed further clarification and 
improvement on that point, to give more certainty to traders and authorities on those questions.  The 
US intended to submit concrete proposals along those lines very soon.  
406. There was a need for improving and clarifying pro cedural fairness.  The US agreed with the 
EC's submission on those matters and also intende d to submit some proposals along those lines very 
soon, consistent with what had already been submitted by Japan and the EC.  
407. The US was not sure whether a dedicated session was needed on the proposals on authorized 
traders.  The recent discussion suggested that Members had different interpretations.     
408. The EC’s and Australia’s proposal on fees was welcomed and seemed to built on the US 
proposal tabled at the last meeting, developing a nd refining the elements.  The paper contributed to 
the needed refinement and development and represented a model for progressing on a particular issue.  
Its intention to capture some of the clarification br ought in the context of past dispute settlement cases 
was familiar to the one pursued by the United Stat es.  It was a good basis for filling in whatever 
blanks might exist, which would result in greater cer tainty.  That was also the case for the paper by 
Chinese Taipei.  Its cost analysis suggestion might  prove valuable as Members refined their work on 
fees.   
409. The US also agreed on the suggestion to disconti nue consular fees and to establish a list of 
permissible fees and charges.  The paper appeared to build on the previous US proposal for greater 
transparency and added elements requiring a presentation of a justification for fees.  That idea was interesting as well although it would require Members to closely work together.  Many Members had  
an interest as exporters facing such fees, while at the same time, also implementing those fees, which 
enhanced the opportunity for a workmanlike approach, to bring in clarity and improvement. 
410. The United States welcomed the paper from China,  especially its reference to the importance 
of internet publication as the first option of pu blication and the proposals on enquiry points and 
commenting periods before the implementation of regulations. 
411. The US looked forward to further refining the proposed commitments.  
412. The representative of Malaysia
 said that Malaysia found the proposals very useful for 
Members to continue to facilitate the negotiations on Trade Facilitation.   
413. With regard to paper TN/TF/W/17 from Ja pan and Mongolia, Malaysia had a concern 
regarding the suggested periodic review on fees  and charges and also  on import and export 
formalities.  Malaysia sought clarification on the mech anisms for such periodic reviews.  Clarification 
was also solicited with respect to the proposal to conduct risk management, and provide authorized 
traders with a high level of compliance with trad e-related laws and regul ations. Malaysia sought 
clarification of the definition of "high-level of co mpliance".  Malaysia equally sought clarification TN/TF/M/4 
Page 62  
 
from Japan as to what had been  the intention when suggesting the introduction of benchmarks on 
high-level of compliance.   
414. Clarification was further sought regarding th e proposal to establish and publish average 
release and clearance times by Korea in document TN/TF/W/18.  It was important to know Members' different capacities.  Malaysia provided different le vels of time for the release of goods.  Malaysia 
wondered whether Korea would also be looking at certa in standards of time for the release of goods.   
415. The proposal on the use of a Single Window w as useful.  However, some Members’ limited 
resources should be taken into account.  Coordi nation among agencies also had to be addressed. 
416. Malaysia agreed there was a need to address cons ularization, as stated in the paper by Uganda 
and the United States.  It would provide efficient movement of goods across borders and benefit 
traders.  Malaysia would like to suggest for the sp onsors of the paper to list the consular formalities, 
fees and charges imposed on traders.    
417. Malaysia had also concerns regarding the proposal by China (TN/TF/W/26)  on commenting 
periods on measures, laws or regulations prior to th eir implementation.  Malaysia would like to seek 
clarification on the interest that proposal would ser ve, given that rules and procedures needed to be 
implemented immediately based on national interest.  Therefore, the determination of the reasonable 
time to be provided before the proposed measure was introduced should be left to the discretion of the 
authorities.    
418. The representative of Turkey
 commented on the proposals regarding Article VIII.  
419. The proposals on pre-arrival clearance by Chinese Taipei (TN/TF/W/10) and Japan 
(TN/TF/W/17) were appreciated as useful for the facilitation and acceleration of the supply chain.  
Turkey wondered whether it would cover all traders who would like to benefit from it, or, whether it 
was restricted to authorized tr aders with an acknowledged establishment and the ability to guarantee a 
proper use of their privilege.   
420. Turkey also supported the suggestions in t hose proposals on the use of risk management 
techniques in customs clearance and post-clearance audit option in customs formalities as well as 
simplified procedures for authorized traders.  Further elaboration would be welcome.  
421. Japan’s proposal to arrange import and export formalities in compliance with international 
standards elaborated by several organizations w as supported as well.  Turkey would appreciate if 
Japan would provide an illustrative list of interna tional standards on import and export formalities to 
be disciplined under the prospective agreement so  that each Member could elaborate its own 
conditions.  
422. Turkey also considered the acceptance of c opies of certain documents used in import and 
export formalities.  Turkey accepted copies of invoices that must be appended to customs declarations 
on the condition that the originals be submitted in 15  days.  Failing to do so resulted in annulment of 
the operation from the outset.  Turkey was open to  further consideration of Japan’s and Korea’s 
proposal.    
423. Turkey further supported Korea’s idea of the ha rmonization and standard ization of documents 
used in import and export as well as the minimization of document requirements within the limits of 
the administrative capacity of competent authorities.  In that context, the use of generally-accepted 
international standards or recommendations on docum entations developed by organizations such as 
the relevant UN bodies, WCO etc., would be helpful to reduce the formal errors and processing time 
in trade operations.  Also, regional initiatives to a pproximate legislation concerning border operations 
and data exchange agreements s hould be encouraged and acknowledged  in standardization efforts.  TN/TF/M/4 
 Page 63 
 
 
424. Turkey positively approached the proposals to  discipline the fees and charges collected in 
relation to import and export.  The number and di versity of fees and charges should be reduced and 
the amount of these should be proportionate along with the cost of services rendered.     
425. The representative of Egypt  said that, assured about the benefit of using the pre-arrival 
process, Egypt had started to apply a system fo r pre-arrival clearance more than a year ago.  A national 
center had been set up, with it being possible to use such a system at 170 borders posts, where it was 
possible to submit copies of the documents and make declarations, pay the customs duties, identify the proper classification of the goods  as described in the documents, with the duties being calculated 
accordingly. Later, when the goods arrived, officers at different ports, who were linked via computer 
with the centre,  would carry out an inspection, if needed,   with the computer identifying whether a 
good should be considered for green or red channe l treatment.  The outcome from that project had 
been more than positive, both for traders and the government.  As a result, the projected had been 
expanded.    
426. The representative of Japan
 replied to the questions and co mments made with regard to the 
suggested periodic review of fees and charges, form alities and documentary requirements, noting  that 
it was essentially the responsibility of Members th emselves to review their fees and charges, 
formalities and documentary requirements.  As time we nt by, the factors to justify the level of fees 
and charges, formalities and documentary requirements  might change, and they needed to be properly 
reflected in a country's laws and regulations.  At the same time, when carryi ng out such reviews, it 
was very important to listen to the comments and opinions of the private sector and other Members. 
427.   It was necessary to further clarify the periods for review and the criteria against which to 
check the appropriateness, but Japan recognized th at those parameters would be different from 
country to country.  With regard to the method of  publishing fees and charges, Japan proposed that 
Members publicized them through their official gaze tte or official website.  A question had been 
raised in that context as to why Japan addressed that issue in Article VIII rather than in Article X.  
Japan believed that the publication of fees and charg es was related not only to Article X, but also to 
Article VIII, because publicizing the fees and char ges would contribute to reducing their number and 
diversity, which was an issue for Article VIII.  It  was necessary to further elaborate how such a 
review process would be carried out.  Naturally , it would focus on trade facilitation aspects, and 
complement other procedures such as the TPRM. 
428. As for international standards, there were al ready international standards existing for some 
parts of trade procedures or formats, and it would be reasonable to try to base one's procedures and 
format on them (such as, for example, the WCO' s Revised Kyoto Convention, the IMO's Convention 
on Facilitation of International Maritime Traffic,  the UN Layout Key, UN/EDIFACT or the WCO 
Data Model).  Japan recognized that developing Members might have difficulty in adopting those standards within a short timeframe, and that there was a slight difference between the membership of the WTO and those of other international organizations.  Therefore, it would be difficult to expect all 
WTO Members to formally accede to such international standards. Fo r that reason, Japan used the 
wording "use of international standards to the extent  possible".  Further elaboration on the wording of 
that concept was necessary. 
429. With respect to developing Members' implementation capacities,  Japan fully understood that 
developing members might have difficulties in impl ementing some of its proposals, such as, for 
example, the establishment of risk management and a Single Window.  De veloping Members should 
be able to adopt those measures gradually.  One should further discuss the aspects of S&D and 
TA&CB for developing Members to adopt those me asures together with experts from international 
organizations.   
430. With respect to Japan's proposal for documen tary examination and physical inspection 
without delay, examples included th e return of documents to traders when they needed them for other TN/TF/M/4 
Page 64  
 
purposes including other transactions, or custom s duty refund procedures in the case of a re-
exportation needed to be facilitated and to be carried out without delay. Japan proposed such measure 
because private business claimed that they often faced re lated problems in their daily trade operations.  
431. Judging the necessity of examining and inspecti ng cargo based on its risks in the context of a 
risk assessment mechan ism was an important element to balan ce the need for Trade Facilitation with 
that for border control.  In principle, the risks of the cargo should be determined on a country-by-
country basis.  In the case of Japan, factors such as  the trader's history of compliance with regulations, 
origin and travel routes of goods and their nature were taken into account. With regard to simplified 
procedures for authorized traders, one exampl e was the reduced chance for examination and 
inspection of goods for authorized traders, as long as the authority was satisfied with their 
compliance.   
432. As for pre-arrival documentary examination, that should not only cover customs procedures 
but also procedures of other border agencies.   
433. With respect to the acceptance of copies, Japan  had started to accept copies of some business 
documents such as invoices some time ago, which had contributed to the facilitation of private 
business.  However, when there wa s a legitimate need for the author ities to accept original documents, 
they should be able to do so.   
434. Regarding the acceptance of a single documenta ry submission, Japan's experience showed 
that for repeatedly imported goods, a waiver for th e requirement to submit cer tain documents could be 
given.  Examples of such cases included waivers of the requirement to submit documents on valuation 
for repeatedly imported goods by the same importer. 
435. As for the concept of "least-trade-restrictiven ess", the idea was the fo llowing: every country 
and border agency naturally controlled the flow  of goods for legitimate objectives such as the 
prohibition of illegal trade of drugs and firearms, co mmercial fraud or the protection of public health.  
However, if the border agency tried to examine all the cargo in spite of there apparently being no risk, 
or simply a low one, that was not "least-trade-restri ctive".  The appropriate wording of that concept 
should be explored further. In that regard, Japan we lcomed the Philippines' suggestion to use the term  
"reasonable" as a possible alternative.   
436. On the comment that an authority had to reject  an application even if there was a only minor 
breach, as there might be a fraudulent intent behind it, Japan would like to point out that it was obvious even from the current Article VIII, paragraph 3, that each Member had the right to reject the 
application if there was an apparent fraudulent intent .  On the other hand, authorities should not reject 
applications on those grounds, as that would add sign ificant burdens on private business.  On the other 
hand, the amount of a penalty s hould depend on the seriousness of the breach.  Therefore, Japan 
accepted the general principle that serious breach es could be subject to major penalties.   
437. As for implementation costs, several national experiences as well as research, including a 
OECD document, showed that most of the propo sed measures such as pre-arrival examination, and 
acceptance of copies could be implemented with minimum incremental costs.  With regard to 
automation, it was Japan's position that, while automa tion was very useful and important to facilitate 
trade, it was not a prerequisite for Trade Facilitati on in the context of the WTO negotiations as many 
measures could be implemented without the use of IT, such as the avoidance of unnecessary documentation etc.  Japan recognized the impor tance of implementation costs for developing 
Members, which was something that should be ela borated further as the issues of S&D, TA&CB were 
taken up further. On the question on which measu res proposed by Japan would become binding and 
which not, Japan was of the view that that should be addressed at a later stage of the negotiations, 
when Members had a clearer idea of the elem ents of the trade facilitation rules.    TN/TF/M/4 
 Page 65 
 
 
438. The representative of the United States  added to the reply given by Uganda on the questions 
regarding consularization that it might be difficult for anyone to come up with a list of all the countries applying consular fees or of the kind of different types of uses that Malaysia and Romania had requested precisely because there were no tran sparency or notification requirements on that 
information at the moment.  
439. With respect to the United States proposal on the release of goods, the proposal had been 
drafted with SMEs in mind.  No-one was more ha rmed by goods being held for an unduly long time, 
both from import and from export stand points, than those enterprises.  The release system proposed 
was a critical element for SMEs, and central to th e negotiations.  The US had noted the reports on 
current practices limiting the use of such a regime , and the questions about costs and potential other 
burdens.  Those questions provided a good basis to proceed in considering that issue.   
440. The United States wondered why there would be a practice that limited  the availability of 
such a release system to certain situations rather than having it available for all general trade, as a 
matter of efficiency and facilitation.  As for costs to traders, experience had shown that to be as low as 
a matter of pennies on the dollar, which was a valu e when considering the importance of obtaining 
more rapid release of goods.  The US attached gr eat importance to achieving robust results with 
regard to issues relating to the release of goods.  More information would be provided.  
441. With respect to the question of how the United States was going to address costs, S&D 
treatment and any other element of Annex D, the US  wished to clarify that when making a proposal 
and articulating its summery understanding of costs involved, or when describing the United States' 
experience in providing technical assistance or in no ting that S&D treatment needed to be addressed 
as the Group moved forward, the US agreed that those kinds of statements were not a complete 
response for meeting the negotiating mandate.   What  the United Sates said in its proposal was not the 
last word.  Kenya was right when saying that it w as not enough to say the costs were minimal when 
that might be different for Africa.  Trinidad and Tobago and Antigua were correct to say that one had 
to  ensure that all elements of the mandate were  being addressed, and Nepal was correct to point out 
that LDCs, in particular, would need technical assistance.    
442. The success of the negotiations was keeping thin gs simple and practical.  The US believed in 
an informal bottom-up approach to assessing resource n eeds, costs, availability of technical assistance 
and the other ramifications as the negotiations pro ceeded.  For instance, it had to be examined 
whether a Member already had its imports procedur es published on the internet.  One had to find out 
the individual costs and other ramifications which might differ.   The US did not see a need for a 
formal elaborate or complex process.  The Secretar iat, the World Bank and WCO had diagnostic tools 
ready to customize the proposals submitted in the Group. WTO Members such as the United States 
could also contribute to that bottom-up assessment in  the next several months, specific to the United 
States' own proposals.  Such an informal bottom- up approach to assessment would help develop an 
understanding of current and future needs for techni cal assistance and address the other issues in a 
practical concrete way that fitted into the negotiations.   
443. The Chairman
 said that the Group had had a very ri ch and interesting debate, which had 
provided much food for thought for further exchanges.  He was pleased with the level of engagement  
and constructive participation.   
444. The Negotiating Group took note of the statements made. TN/TF/M/4 
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B. A
D HOC ATTENDANCE OF RELEVANT INTERNATIONAL ORGANIZATIONS , INCLUDING THE 
IMF,  OECD,  UNCTAD,  WCO  AND THE WORLD BANK, AT THE NEXT MEETING OF THE 
NEGOTIATING GROUP  
445. The Chairman  suggested inviting relevant internati onal organizations, including the IMF, 
OECD, UNCTAD, WCO and the World Bank to atte nd the next meeting of the Negotiating Group on 
an ad hoc  basis, as provided for in the Work Plan.  
446. It was so agreed . 
C. OTHER BUSINESS  
447. The representative of Australia , presented a report on a recent APEC Workshop on the Trade 
Facilitation Negotiations in Kuala Lumpur on beha lf of Australia and Malaysia (TN/TF/W/27), 
informing that over 70 customs, trade and bu siness representatives from 13 economies, including 
economies from Non-WTO Members, had attended th e workshop.  There had been a sense among 
workshop participants of the value in building on current GATT rules. Four points had emerged as 
key lessons for the negotiations: First, there was an ongoing need for confidence building in the Negotiating Group as work progressed.  The bite-size approach was helpful in framing digestible 
proposals.  Second, there was a need to focus on technical assistance and to seek inputs from most 
developing countries in need of assistance to specify where they needed help, no t just with respect to 
implementation but also in the course of the negot iations themselves.  There was no shortage of 
resources for TA&CB but greater coordination and focu s was needed in the delivery.  Third, it would 
be essential to develop tailored implementation plan s, as needed, with  respect to the various 
commitments based on an analysis of individual Members' situations during the course of the 
negotiations.  Fourth, there was a need for better internal coordination between trade and customs 
authorities, between Geneva-based negotiators and capitals and between governments and the private 
sector. 
 
448. The representative of Malaysia  appreciated that Australia had co-sponsored the APEC 
Workshop on the WTO Trade Facilitati on Negotiations with the help of Mr. Andrew Stoler.  The co-
sponsors were delighted that the workshop had managed to cover important issues and latest 
developments in the TF negotiations.  
449. The representative of Rwanda  supported what had been said about improved coordination in 
respect of technical assistance during the negotia tions.  Rwanda wondered how such coordination 
could be achieved and what was the role of the Secretariat.  Annex D was explicit regarding the 
importance of technical assistance during the negotiations and during the implementation phase.  
Rwanda proposed that, during the negotiations, an in itiative was taken to coordinate the assistance, or 
that there be some kind of coordination mechanism to th at end.  It would also be useful  to report on 
the various initiatives taken within the framework of  technical assistance for developing countries and 
LDCs, mentioning those developed countries whic h had contributed to the assistance machinery. 
450. The Negotiating Group took note  of the statements made. 
451. The Chairman  recalled the list of meeting dates communicated to Members at the Group's 
first session, according to which the next mee ting was due to take place from 2 - 4 May 2005. 
452. The Philippines  said that many Members wished not to hold the NGTF meetings back-to-back 
with the meetings of the NG on Non-Agricultura l Market Access (NAMA), as the burden of that 
many meetings over such a short period of time was too great for most developing countries.  TN/TF/M/4 
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453. The Chairman  said that, while the burden of holding the TF meetings back-to-back with the 
meetings on NAMA was recognized, the 2-4 May slot was the only slot available, and consequently 
suggested to proceed with the origin ally proposed dates of 2-4 May 2005. 
454. It was so agreed . 
455. The meeting was closed.  
_________