WORLD TRADE  
ORGANIZATION  TN/TF/W/38 
2 May 2005 
 (05-1777) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM SINGAPORE 
  
 The following communication, dated 29 April 2005, from the Delegation of Singapore, is 
being circulated in advance of the Negotiating Group meeting of 2-4 May. 
 
 
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PROCEDURAL ELEMENTS FOR ADVANCE RULINGS 
 
 
I. INTRODUCTION 
1. Enhancing transparency, certainty and predictab ility in the application of border regulations 
and procedures are core objectives of GATT Article X.  
2. For traders, knowing in advance how customs rules and regulations will be applied, 
minimizes unnecessary delays and costs.  For cust oms authorities, informing traders of relevant 
import requirements encourages compliance and minimizes complaints and subsequent appeals.   
3. One way in which border clearance can be exped ited is through the usage of advance rulings. 
In this respect, several proposals (e.g., TN/ TF/W/9 from Canada; TN/TF/W/10 from the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu; TN/TF/W/12 from the United States of 
America) have been tabled.  
4. The proposals tabled, to-date, have spelt out possible elements for advance ruling 
programmes. They include suggestions to have advance rulings for issues such as tariff classification, 
customs valuation and duty deferral. 
5. Advance rulings are not new to the WTO.  As noted in the proposals already tabled, Article 2 
of the Agreement on Rules of Origin provides for ad vance rulings that are to be made on assessment 
of origin.  It sets out the time period in which th e assessment is to be made, the conditions and the 
duration of the validity of the assessment.  
6. In general, an advance ruling programm e would include the following elements: 
(a) Advance rulings may be issued upon request  on matters such as tariff classification, 
applicable duties and valuations. 
(b) Upon receiving the request, the advance ruling woul d be issued within a certain time period 
(e.g., x days). 
(c) The advance ruling would be binding on customs authorities for a period of time, provided 
that the facts and circumstances on which the ruling is based remain unchanged.   TN/TF/W/38 
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7. While the benefits to traders are clear, tho se Members who do not have an advance ruling 
programme, may have concerns that such a progra mme may be difficult or burdensome to implement. 
II. SINGAPORE’S EXPERIENCE 
8. Since 2002, Singapore has put in place advance ruling programmes for goods imported under 
two bilateral free trade agreements, the Japan-S ingapore New-Age Economic Partnership Agreement 
and the US-Singapore Free Trade Agreement. Alt hough Singapore Customs ("Customs") did not have 
the practice of issuing advance rulings prior to 2002, it was not uncommon for them to respond to informal enquiries from traders, as is the case in most countries.  
9. The main object is to lay down clear and si mple standard operating procedures upon which 
formal binding advance rulings could be processed and administered. In this regard, we have tried to 
develop procedural elements that  strike a balance between providi ng predictability and certainty to 
traders on the one hand, and ensuring that Customs would not be overburdened on the other.   
10. By sharing the main procedural elements that  we have developed, we hope to provide an 
example of how a relatively simple advance rulings programme can be established.   
III. PROCEDURAL ELEMENTS 
1. Who may apply 
• To avoid frivolous requests, only importers and exporters or their agents may request an 
advance ruling. All requests for an advance ru ling would be made in writing, signed by the 
person authorized by the requesting party a nd submitted using a company letterhead form. 
 
• Each application should be restricted to an individual product.  
 
2. Information required from applicant 
• Advance rulings can only be made where th e applicant has provided full and accurate 
disclosure of all relevant information (inc luding supporting documentation). To avoid 
unnecessary delays in processing the application, th e applicant has to ensure that Customs is 
given all the relevant information. However,  some applicants may not know how much 
information and detail is required.  As such, Customs would as far as possible, set out the kind of information they require from the applicant, e.g., composition of the good, a 
description of the process by which the good is manufactured or the transaction value of the 
good. In this respect, one possible approach is to require all applications to be made on a 
standard form. 
 
• If insufficient information is provided, Customs could request that the applicant provide the 
additional information within a certain period of time. Customs may decline or postpone the 
issuance of an advance ruling where the applican t fails to provide the additional information 
within the time stipulated.  
 
3. Processing requests for advance rulings 
• Assuming that all relevant information has b een provided, Customs would proceed to make 
the necessary evaluation and determination for the advance ruling. As a guide for the 
processing officer, Customs would, where possibl e, prescribe how each type of application 
would be considered.  
  TN/TF/W/38 
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4. Issuing of advance rulings 
• The advance ruling should be i ssued within a certain time period upon receipt of all the 
necessary information and documents from the applicant.  
 
• For the applicant to be able to rely on the advan ce ruling, it would have to be in the form of a 
written  statement issued by Customs. 
 
• The advance ruling would be effective on the date of issuance or such date as may be 
specified in the ruling, which is not later than the date of importation of goods. 
 
• The advance ruling would be app lied to importations without regard to the identity of the 
importer, exporter or producer, provided that the facts and circumstances are identical in all material aspects. 
 
• The advance ruling would remain in effect for a specific period of time from the date of the 
issuance if:  
 
- there is no change in the material fact s or circumstances on which it is based; 
- all of its terms and conditions are complied with; and  
- it has not been revoked. 
• There are provisions for Customs to provide the applicant, on request, with the reasons for the 
ruling. 
 
5. Non-application, modification or revocation of advance ruling 
• An advance ruling may not be app lied if it is determined that imported goods differ materially 
from the goods which were the subject of the ru ling or if the person requesting the ruling has 
failed to act in accordance with the terms and conditions of the ruling. 
 
• The advance ruling may be modified or revoked if: 
 
- the advance ruling is based on an error of fact or law; 
- there is a change in law;  or 
- there is a change in the material f acts or circumstances on which the ruling 
was based.  
6. Notice of modification or revocation 
• Customs is required to give notice in writing of  any modification or revocation of an advance 
ruling and of the effective date of the modifi cation or revocation to the person to whom the 
advance ruling was given. 
 
• Customs may postpone the effective date of su ch modification or revocation for a period of 
time, where the person to whom the ruling was issued has relied in good faith on that ruling.  
 TN/TF/W/38 
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• A modification or revocation of an advance ruling would apply to goods that are the subject 
of the advance ruling and are imported on or afte r the effective date of the modification or 
revocation. It would not apply to importations of  a good that have occurred prior to the date.  
 
IV. CONCLUSION 
11. The procedural elements set out above allows for traders to  be nefit from greater certainty and 
predictability while also maintaining some flexib ility for Customs, such as allowing rulings to be 
modified or revoked under certain circumstances.  This is an example that Members could consider 
when examining the issue of advance rulings. 
V. SPECIAL AND DIFFERENTIAL TREATMENT 
12. However, we recognise that least develope d countries and some developing countries may 
have difficulties implementing advance ruling prog rammes.  Special and Differential Treatment 
should therefore be an integral part of any commit ment in this area.  In this regard, Members may 
wish to discuss the following: 
(a) The procedural elements and subjects that s hould be included in Members' advance rulings 
programmes.  For example,  developing count ries and least developed countries may initially 
need to commit only to advance ru lings for tariff classifications. 
(b) Longer implementation time frames for developi ng and least developed countries, and other 
phased-in approaches. 
(c) Allowing developing and least developed countries to implement more onerous obligations on 
a best endeavour basis. 
 
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