. /.  WORLD TRADE  
ORGANIZATION  TN/TF/W/164 
11 November 2009 
 (09-5622) 
Negotiating Group on Trade Facilitation Original:   English 
 
  
COMMUNICATION FROM CHINA, KOREA, THE SEPARATE CUSTOMS TERRITORY 
OF TAIWAN, PENGHU, KINMEN AND MATSU, AND SWITZERLAND 
 
 
 The following communication, dated 10 November 2009, is circulated at the request of the Delegations of China, Korea, the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu, 
and Switzerland.  
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PROPOSAL ON RISK MANAGEMENT 
 
 1. Recognizing that risk management is one of th e most effective approaches to facilitate  
legitimate trade flow without compromising the cu stoms mandate, and taking into account Members' 
comments and suggestions made to the proposals TN/TF/W/140 and 148 which are previously 
submitted on the subject of risk management, th e following textual proposal is presented by the 
Delegations of China, Korea, the Separate Custom s Territory of Taiwan, Penghu, Kinmen and Matsu, 
and Switzerland for the consideration of the Negotiating Group on Trade Facilitation. 
2. Those issues with cross-cutting nature, such  as national treatment, most-favoured-nation 
treatment, general and security exceptions, S&DT and TA/CB are excluded from the following textual 
proposal, as suggested by Members, they should be d ealt with elsewhere in the context of the trade 
facilitation drafting text. 
Textual proposal 
 
 
1. Members shall concentrate customs control, particularly documentary examinations and 
physical inspections, on high risk consignments  while expediting the release of low risk 
consignments. 
 2. Members shall apply risk management to cust oms control in connection with importation, 
exportation and transit. 
 
3. Risk management shall be applied, to the exte nt possible, to the relevant measures including, 
but not limited to, pre-arrival processing, customs audit, authorized traders, customs 
valuation, tariff classification, and rules of origin. 
 TN/TF/W/164 
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  4. Members shall establish appropriate selectivity cr iteria as a basis for identifying risks, which 
may include the specific commodity code, country of origin, country whence consigned [or 
shipped], [status of goods with regards to sp ecial requirements,] value of goods, compliance 
level or status of traders, type of means of transport, and trader's purpose of stay in the 
Customs territory. 
 
5. Risk management shall not be designed or applied to create arbitrary or unjustifiable 
discrimination between Members under the same  conditions or a disguised restriction on 
international trade.  
 
6. [Members shall, where practicable, refer to re levant international standards and practices 
such as the Revised Kyoto Convention and the WCO Risk Management Guideline as a basis 
for its risk management.] 
 (Definition) 
 
• Risk  means the potential for non-compliance with  customs and/or other relevant laws. 
 
• Risk Management  means the systematic application of management procedures and 
practices providing customs with the necessary information to address movements or consignments on the basis of risks they represent. 
 
• Customs Control  means measures applied by the cust oms to ensure compliance with the 
laws and regulations which the cust oms is responsible for enforcing. 
 
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