WORLD TRADE  
ORGANIZATION  TN/TF/W/133/Rev.2 
10 October 2008 
 (08-4831) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA, 
THE REPUBLIC OF MOLDOVA, RWANDA, SWITZERLAND AND SWAZILAND 
 
Revision
 
 
 
 The following communication, dated 9 October 2008, is being circulated at the request of the 
Delegations of the Former Yugos lav Republic of Macedonia, the Republic of Moldova, Rwanda, 
Switzerland, and Swaziland.  
_______________ 
 
 
TRANSIT – REVISION OF TEXTUAL PROPOSAL TN/TF/W/133/REV.1  
  
 The following textual proposal revises the textual proposals made in TN/TF/W/133/Rev.1
1 by 
taking into account the discussion and other submis sions on this issue in the Negotiating Group.  
  Where co-sponsors could not yet reach a clear consensus between themselves or where they sensed, based on previous discussions and submissions  in the Negotiating Group, that alternative, 
viable options exist, they have kept text in square brackets. 
  The co-sponsors propose that S&D treatment and TA&CB be taken forward through the 
development of a horizontal mechanism that would take account of the needs, priorities, and implementation capacities of developing and least-d eveloped Members in relation to commitments. 
Therein, special attention shall be given to asp ects of regional implementation of commitments. 
 
(a) Scope 
 1. Definition of traffic in transit :  Goods – including those moved via fixed infrastructure, inter 
alia pipelines and electricity grids
2 –, and means of transport (inc luding baggage and the personal 
belongings of the person operating the means of transpor t) , shall be deemed to be in transit across the 
territory of a Member when the passage across such territory is only a portion of a complete journey 
beginning and terminating beyond the frontier of the Member whose territory the traffic passes. 
Traffic of this nature is termed "traffic in transit" irrespective of (i) trans-shipment, short-term storage, 
breaking bulk, or change in the mode of transport, and (ii) whether the goods or means of transport, 
after passing across a territory of a Member, return  to the territory of a Member in which they 
                                                      
1 Communication from the Former  Yugoslav Republic of Macedonia, the Republic of Moldova, 
Mongolia, Rwanda, Switzerland and Swaziland of 7 February 2008. 
2 At least some of the proposed commitments in the proposal have been written with only transit of 
goods by moving means of transport in mind. Co-sponsors recognize that the text will need to be further worked 
through to ensure that language is consistent with our intention to cover all means of transport. One option worth exploring could be to have separate paragraphs or separate proposals on freedom of transit by moving 
means of transport on the one hand and by fixed infrastructure on the other hand. TN/TF/W/133/Rev.2 
Page 2  
 
  originate or through which they have previously trans ited. Means of transport shall be deemed to be in 
transit also if they carry exclusively goods in tr ansit, even if the means of transport are not in 
themselves in transit according to the above definition.  2. Each Member undertakes that if it establishes or maintains a State enterprise, wherever 
located, or grants to any enterprise, formally or in effect, exclusive or special privileges, such 
enterprise shall, in its regulations, formalities, fees  and charges – including transportation charges –, 
on or in connection with traffic in transit, act in a manner consistent with the provisions on traffic in 
transit of this Agreement and otherwise solely  in accordance with commercial considerations. 
 
3. Exception :  The provisions on traffic in transit of this Agreement shall not apply to the 
operation of aircraft in transit, but shall appl y to air transit of goods (including baggage). 
 (b) General and security exceptions 
 
4. Members recognize that the general and security exceptions provided for in GATT 
Articles XX and XXI shall be fully applicable.
3 
 (c) Freedom of transit 
 5. There shall be freedom of transit through the territory of each Member via the routes most 
convenient for international transit. No distinction sh all be made in the treatment of traffic in transit 
which is based on flag of the vessel, the place of orig in, departure, entry, exit  or destination, or any 
circumstances relating to the ownership of goods or means of transport.  
 6. Regulation on Traffic in Transit:  All regulation imposed by cont racting parties on traffic in 
transit to or from the territories of other contracti ng parties shall be reasonabl e, having regard to the 
conditions of the traffic.  7. National treatment : With respect to all [laws, regula tions, formalities], fees and charges, 
including transportation charges, imposed on or in connection with transit, each Member shall accord 
to traffic in transit to or from the territory of any Member, treatment no less favourable than that 
accorded to its own exports or imports, and their movement.  
 8. Most-favoured-nation treatment :  Without prejudice to paragraph (h)20, with respect to all 
laws, regulations, form alities, fees and charges – including tran sportation charges – , on or in connection 
with transit, each Member shall acco rd to traffic in transit to or fro m the territory of any other Member 
treatment no less favorab le than the treatment accorded to traffic in transit to or from any third country. 
This principle refers to like products being tr ansported on the same route under like conditions. 
 9. Treatment preceding and following transit :  Each Member shall acc ord to products and means 
of transport which have been or will be in transit through the territory of any other Member treatment no 
less favorable than that which would be accorded to  such products and means of transport if they hadn’t 
traveled or wouldn’t travel from their place of origin to their destination without going through the 
territory of such other Member.  Any Member shall, however, be free to maintain its requirements of direct consignment existing on the date of the GATT  1994 in respect of any goods in regard to which 
such direct consignment is a requisite condition of el igibility for entry of the goods at preferential rates 
of duty or has relation to the Member's pres cribed method of valuation for duty purposes.  
 
                                                     
 
3 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement.  TN/TF/W/133/Rev.2 
 Page 3 
 
 
  (d) Fees and charges 
 10. Members shall exempt traffic in transit from customs duties and from all transit duties and 
other fees and charges imposed in  respect of transit, except 
 
 (i) reasonable charges for transportation (such as tolls, road charges and similar), having 
  regard to the conditions of the traffic, or    (ii) reasonable transit charges commensurate with the administrative expenses entailed by 
  transit or with the cost of the service rendered. Any transit charge shall: 
 
- only be imposed for transit services provi ded directly linked to the specific 
transit movement in question;  
- not exceed the approximate cost of the transit service rendered;  and 
- not be calculated on an ad valorem  basis. 
11. Publication :  Members shall publish promptly informa tion on all transit fees and charges. This 
information shall include the reason for the transit fee or charge (the service provided), the responsible authority, the transit fees and charges th at will be applied, and when and how payment is 
to be made. The information shall be published via an  officially designated medium, and to the extent 
practicable, an official website.
4 
 
12. Prior publication :  Except in urgent circumstances and other limited exceptions, which are 
made public, Members shall accord an adequate ti me period between the publication of information 
on new or amended transit fees and charges and their entry into force.5  
 13. Periodic review :  Each Member shall periodically review its transit fees and charges to ensure 
that they are in line with WTO commitments and w ith a view to reducing their number and diversity, 
where appropriate.
6 
 (e) Transit formalities and documentation requirements 
 14. Any Member may require that traffic in trans it through its territory be entered at the proper 
customs office without prejudice to the other commitm ents on transit, but such traffic in transit 
through their territory shall not be subject to an y unnecessary delays, restrictions, inspections or 
controls[, except in cases of failure to comply with  applicable laws and regulations,] and shall be 
granted expedited and simp lified treatment at border crossing points, including sea, fluvial and air 
ports or inland terminals as applicable. Such  expedited and simplified treatment implies, inter alia : 
 
 (i) Special border crossing facilities for transit:  To the extent practicable, physically 
  separate transit lanes shall be made  available for traffic in transit.  
 
                                                     
 
4 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. 
5 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. 
6 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. TN/TF/W/133/Rev.2 
Page 4  
 
   (ii) Formalities adjusted to the specificities of the goods in transit:  In designing and  
  applying transit forma lities and documentation requirem ents, Members shall take 
  account of the characteris tics of traffic transit. 
  (iii) Limited physical inspections of goods:   Where goods are placed under a transit 
procedure, Members shall use risk manage ment techniques adapted to the specific 
risks of traffic in transit to enable any in spections to be targeted on the basis of the 
degree of risk attached to individual cons ignments. Furthermore, Members shall not 
apply quality controls or controls of compliance with technical standards.  
 
 (iv) Reducing the administrative burden for traffic in transit:   Transit formalities and 
documentation requirements shall be reasona ble having regard to the conditions of 
the traffic, applied uniformly and be not more trade restrictive than necessary to 
permit the control of the operation and to en sure that all requirements relating to the 
application of relevant law have been comp lied with.  For traffic in transit, Members 
shall provide for: 
 
- the processing of transit documents and data prior to the arrival of the 
transiting consignment;  
- the use, to the extent possible, of any commercial or transport document 
setting out clearly the necessary particulars as the descriptive part of transit 
declarations as a complement of the paper based transit declarations;  
- the establishment of a single window;  and 
- the establishment of an authorised tr ader scheme with a view to grant 
simplified treatment to traders with a good track record of compliance with 
transit formalities and documentation requirements.  
(f) Bonded transit regime and guarantees  
 15. Where a Member operates a guarantee system to  avoid inland diversion of goods in transit, 
any person required to provide security shall be allo wed to choose any form of security provided that 
it is acceptable to the customs and other border author ities. This Member shall also ensure that the 
guarantees required from transit operators are: 
 
 (i) reasonable having regard to the conditions  of traffic and the characteristics and the 
nature and value of the consignment in ques tion, and limited to the amount of customs 
debt or other charges which may be incurred in respect of the goods; 
 
 (ii) designed and applied on a regional or in ternational basis to as great an extent as 
possible;  and 
  (iii) released or discharged promptly and in full after the completion of the transit 
operation.  
 
16. Where a Member operates a guarantee system fo r goods in transit, this Member shall allow 
guarantees to be renewed for subse quent consignments once a previous  one is proved to have reached 
its destination. No fees and charges shall be im posed in relation to the use of bonded transport 
regimes and guarantees except for those directly related to the approximate cost of any service rendered.  
  TN/TF/W/133/Rev.2 
 Page 5 
 
 
  17.  In cases where a Member chooses to apply othe r appropriate measures to prevent the inland 
diversion of goods, no guarantee shall be required for the transit of goods. 
 (g) Cooperation and coordination 
 
18. Amongst authorities :  Members shall ensure cooperation and coordination between all 
concerned authorities and agencies in their territory to facilitate traffic in transit.  Members shall 
ensure cooperation with other Members on issues of traffic in transit, including with regard to 
standardizing transit formalities and documentation requirements, coordinating operations of border 
crossings and mutual recognition of authorized  economic operator schemes.  To this end, 
neighbouring Members shall, as far as necessary, m eet periodically to discuss and come to an 
understanding on the fees and charges, formalities,  legal requirements and practical operation of 
transit regimes relating to goods moving in transit between them.
7  
 19. Between authorities and the private sector :  Members shall provide opportunities for 
interested traders or their representatives to comment  on the transit regime and its operation, including 
with regard to the introduction of new or amended transit fees and charges, and transit formalities and 
documentation requirements, with a view to minimizing unnecessary delays and restrictions on traffic in transit.   (h) Promotion of regional transit agreements or arrangements 
 
20. Members shall promote bilateral and regional tran sit agreements or arrangements with a view 
to reducing trade barriers and enhance freedom of  transit. Members shall take full account of 
international standards and instruments when designing and applying those agreements or 
arrangements. In particular, contracting parties to  regional transit agreements or arrangements shall 
strive to: 
  (i) agree on common, simplified documents, or electronic messages, that shall be aligned 
with international standards; 
  (ii) allow the same set of documents or electronic messages to accompany the 
consignment from the country of departure to destination; 
  (iii) mutually recognize authorized economic operator schemes;   (iv) define common measures relating to the monitoring of transit, inter alia  the 
appointment of national transit coordinato rs; performance indicators (e.g., target 
clearance times) or public private part nerships to manage and monitor the 
arrangement; 
  (v) include matters which are relevant beyond customs in the context of transit, such as 
road and transport issues.  
 
21. Regulations and formalities in connection with tr ansit agreed upon in such agreement shall be 
reasonable, having regard to the conditions of the traffic. These agreement or arrangement shall be 
designed and implemented in such a way that they  do not constitute a disguised restriction on 
international trade or an arbitrary or unjustifiable discrimination between Members.  
 
                                                     
 
7 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. TN/TF/W/133/Rev.2 
Page 6  
 
  22. Members participating in bilatera l or regional transit agreements  or arrangements shall afford 
adequate opportunity for other interested Members to negotiate their accession to such an agreement 
or arrangement or to negotiate comparable ones with it.   (i) Periodic review / Monitoring with a view to enhancing efficiency, transparency and 
predictability of the transit agreement or arrangement  
23. Periodic review : Each Member shall periodically review its transit formalities and 
documentation requirements to ensure that they ar e in line with WTO commitments and with a view 
to consolidating them and reducing their impact  on trade. Such reviews shall allow for the 
participation of all interested parties and, as appr opriate, may be held at a regional or international 
level. 
 (j) Transparency 
 24. Publication :  Each Member shall publish all transit formalities and documentation 
requirements, and regional transit agreements or  arrangements[[, except if a non-Member-Party to 
such an agreement or arrangement opposes publicati on]]. The information shall be published via an 
officially designated source, such as the official gazette, the official journal or an official web-site.
8  
 25. Prior publication :  Except in urgent circumstances and other limited exceptions, which are 
made public, Members shall accord an adequate time period between the publication of new or 
amended transit formalities a nd documentation requirements and their entry into force.
9 
 
__________ 
 
                                                      
8 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement. 
9 Note to the reader: this paragraph may be dropped at a later stage if the issue is properly covered in 
another Article of the Agreement.