WORLD TRADE  
ORGANIZATION  TN/TF/W/113 
6 June 2006 
 (06-2693) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM ARMENIA, THE EUROPEAN COMMUNITIES,  
THE KYRGYZ REPUBLIC, MONGOLIA, TH E FORMER YUGOSLAV REPUBLIC OF 
MACEDONIA, AND THE REPUBLIC OF MOLDOVA 
  
 The following communication, dated 1 June 2006, is being circulated at the request of the 
Delegations of Armenia, the European Commun ities, the Kyrgyz Republic, Mongolia, the Former 
Yugoslav Republic of Macedonia, and the Republic of Moldova. 
. 
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TRANSIT 
 
 
1. The following textual proposal is submitted by Armenia, the European Communities, the 
Kyrgyz Republic, Mongolia, the Former Yugosla v Republic of Macedonia, and the Republic of 
Moldova for consideration by the Negotiating Group.  It is closely based on the proposals on transit 
inspections made in the joint communication TN/TF/ W/79 of 15 February 2006 and takes account of 
the discussion and other submissions on this issue in the Negotiating Group. 
Textual proposal  
 
"Transit 
 (a) Scope 
1. Definition of traffic in transit :  Goods (including those move d via fixed infrastructure, 
 inter alia  pipelines, baggage and the personal belongings of the person operating the 
 means of transport), and means of transport, 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 fr ontier of the Member whose 
territory the traffic passes.  Traffic of th is 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 transpor t, after passing across 
a territory of a Member, return  to the territory of a Member  in which they originate or 
through which they have pr eviously transited.  
 
2. Exception:  The provisions of this [Article] shall not apply to the operation of aircraft in 
transit, but shall apply to air transit of goods (including baggage). 
 
(b) Freedom of transit 
3. Freedom of transit and routes most convenient for international transit :  There shall 
be freedom of transit through the territory of each Member via the routes most TN/TF/W/113 
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  convenient for international transit.  Traders have the freedom to choose the route 
subject to any reasonable restrictions imposed by Members consistent with paragraph 4.  No distinction shall be made  which is based on the choice of means of 
transport, the flag of vessels, the place of or igin, departure, entry, exit or destination, 
or any circumstances relating to the ownership of goods or means of transport. 
 
(c) Legitimate public policy objectives and traffic in transit 
4. Members recognize that the legitimate  public policy objectives set out in GATT 
Articles XX and XXI, including in relation to national security, health, safety and the environment, shall not be compromised in any way.  To that end, Members recognize 
that the general and security exceptions provided for in GATT Articles XX and XXI 
shall be fully applicable. 
 
5. Any Member may require that traffic in tr ansit through its territory be entered at the 
proper customs house without prejudice to the other commitments on transit.  
 
(d) Non-discrimination 
6. National treatment :  With respect to all laws, regul ations, requirements and procedures 
affecting the internal passage of traffic in transit across the territory of a Member, and all fees and charges imposed on or in conne ction with transit, including transportation 
charges ("transit fees and charges"), and without prejudice to the legitimate customs 
control and supervision of goods in 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 domestic goods, exports and imports, and their movement.  
 
7. Most-favoured-nation treatment :  With respect to all laws, regulations, requirements, 
procedures and fees and charges, including transportation charges, on or in connection 
with transit, each Member shall accord to traf fic in transit to or from the territory of any 
other Member treatment no le ss favourable than the treatm ent accorded to traffic in 
transit to or from any third country. 
 
8. Treatment following transit :  Each Member shall accord to products which have been in 
transit through the territory of any other Me mber treatment no less favourable than that 
which would have been accorded to such pr oducts had they been transported from their 
place of departure to their destination wit hout going through the territory of such other 
Member.  Any Member shall, however, be fre e 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 requisit e condition of eligibility for entry of the 
goods at preferen tial rates of duty or ha s relation to the Member's  prescribed method of 
valuation for duty purposes. 
 (e) Fees and charges 
9. Members shall exempt traffic in transit fro m customs duties, transit duties and other 
fees and charges, except transit fees and char ges that are commensurate with the cost 
of the service rendered.  Any transit fee and charge shall: 
 
- Be reasonable, having regard to the conditions of transit; 
- Not be charged with respect to consular services or the equivalent;   TN/TF/W/113 
 Page 3 
 
 
  - Only be imposed for transit services pr ovided in direct connection with the 
specific transit movement in questio n or for any formality required for 
undertaking such importation or exportation;  
- Not exceed the approximate cost of the transit service provided;  
- Not be calculated on an ad valorem  basis.  
10. Publication :  Members shall publish information on all transit fees and charges.  This 
Information shall include the reason for th e transit fee or charge (the service 
provided), the responsible authority, the tran sit fees and charges that will be applied, 
and when and how payment is made.  Memb ers shall make this information readily 
available to all interested parties and info rm other Members where this information is 
available.  The information shall be published via an officially designated medium, 
and where feasible and possible, official website. 
 
11. Prior publication :  Members shall accord an adequate time period between the 
publication of information on new or amende d transit fees and charges and their entry 
into force except when justified by legitimate public policy objectives.  
 
12. Periodic review :  Each Member shall periodically review its transit fees and charges 
to ensure that they are in line with  WTO commitments and with a view to 
consolidating them and reduci ng their number and diversity. 
 
(f) Transit formalities and documentation requirements 
13. Transit formalities and documentation requi rements are all laws, regulations,  
  requirements and procedures on or in connection with transit. 
14. Members shall ensure that traffic in transit through their territory is not subject to any 
unnecessary delays, restrictions, inspections or controls. Transit formalities and 
documentation requirements shall be reasona ble having regard to the conditions of 
transit, applied uniformly and be not more trade restrictive than necessary to achieve 
the legitimate public policy objective pursued.  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 by traders of commercially av ailable information, documents and 
data wherever possible, including as part of transit declarations;  
- The progressive establishment of a single window for traffic in transit;  
- As far as possible, separate physical lines at the border for traffic in transit.  
15. Use of international standards :  Members shall draw upon international standards and 
instruments1 as a basis for transit formalities and documentation requirements, where 
                                                      
1 International standards and instruments on transit include the Specific Annex E of the International 
Convention on the Simplification and Harmonisation of Customs Procedures (the Revised Kyoto Convention), the UN TIR Convention, the ATA Convention, the Istanbul Convention, the International Convention on the 
harmonization of frontier controls of goods, the UN Layout Key for documentation and the WCO Data Model.  TN/TF/W/113 
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  such standards and instruments exist, except when they would be an inappropriate or 
ineffective means for the fulfilment of the legitimate objectives pursued. 
 
16. Publication :  Members shall publish all transit formalities and documentation 
requirements, and regional transit agreements  or arrangements.  Members shall make 
this information readily available to all in terested parties and inform other Members 
of where this information is available.  The information shall be published via an 
officially designated medium, and where f easible and possible, official website.  
 
17. Prior publication :  Members shall accord an adequate time period between the 
publication of new or amended transit formalities and documentation requirements 
and their entry into force except wher e justified by legitimate public policy 
objectives.  
 
18. Transparency of transit release time :  Each Member shall periodically publish the 
average time for release of traffic in transit at main points of entry and exit using tools 
such as the WCO Time Release Study.   
 
19. Periodic review :  Each Member shall periodically review its transit formalities and 
documentation requirements to ensure that they are in line with WTO commitments 
and with a view to consolidating them a nd reducing their impact on trade.  Such 
reviews shall allow for the participation of all interested parties and, as appropriate, 
may be held at a regional or international level.  
 
20. Promotion of regional trans it agreements or arrangements :  Members shall promote 
bilateral and regional transit agreements or arrangements wh ich are consistent with all 
other commitments on Trade Facilitation and with a view to reducing trade barriers. 
Members agree to cooperate and coordinate  in designing and applying bilateral and 
regional transit agreements or arrangement s.  Members shall take full account of 
international standards and instrument s when designing and applying those 
agreements or arrangements.  Members shall not enforce unilateral rules affecting traffic in transit which are not in accordan ce with the bilateral or regional transit 
agreements or arrangements in which they participate.  Members participating in 
regional transit agreements or arrangeme nts shall give positive consideration to 
reasoned requests to participate by other Members who meet the requisite participation criteria.  
 
21. Simplified treatment / risk management :  Members shall use risk management 
techniques to enable any inspections to be targeted on the basis of the degree of risk 
attached to individual consignments.  This shall include the establishment of 
authorized trader schemes which grant si mplified treatment to traders with a good 
track record of compliance with transit formalities and documentation requirements. 
In designing and applying transit formalities and documentation requirements, 
Members shall take account of the inherent characteristics of the goods concerned.  
 
22. Bonded transport regime and guarantees :  Members shall operate bonded transport 
regimes that allow the transit of goods through the territory of Members without 
payment of customs duties or other charges subject to the provision of an appropriate 
guarantee.  Members shall ensure that guarantees required from transit operators are:  
 
- Reasonable having regard to the conditions  of transit and the nature and value 
of the consignment in question, and lim ited to the amount of customs debt or 
other charges which may be incurred in respect of the goods;  TN/TF/W/113 
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  - Designed and applied on a regional or inte rnational basis to as great an extent 
as possible; 
- Released promptly and in full after the completion of the transit operation.  
No fees and charges shall be imposed in  relation to the use of bonded transport 
regimes and guarantees except for those directly related to the approximate cost of 
any service provided.   
 
(g) Cooperation and coordination 
23. Amongst authorities :  Members shall ensure coopera tion and coordination between all 
concerned authorities and agencies in their te rritory to facilitate traffic in transit. 
Members shall ensure cooperation with othe r Members on issues of traffic in transit, 
including with regard to standardizi ng transit formalities and documentation 
requirements and coordinating operations of border crossings.  To this end, 
neighbouring Members shall, as far as neces sary, meet periodically to discuss and 
come to an understanding on the fees and ch arges, formalities, legal requirements and 
practical operation of transit regimes rela ting to goods moving in transit between 
them. 
 
24. Between authorities and the private sector :  Members shall provide opportunities for 
interested traders to comment on the trans it 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."  
 Special and differential treatment, technical assistance and capacity building
 
 
2. With regard to special and differential treatme nt, technical assistance and capacity building in 
relation to transit, TN/TF/W/79 set out some proposals in terms of what may be required by developing countries, least-developed countries a nd other countries in need, notably small low-
income economies in transition.  The issues could be taken forward through the development of a 
horizontal mechanism that would, among others, ta ke full account of the needs, priorities, cost 
concerns and implementation capacities of devel oping and least-developed Members in relation to 
commitments.  A number of relevant submissions on this issue have been made to the Negotiating 
Group, one of which contained a textual proposal. Such textual proposals should continue to be 
developed in parallel to the te xtual proposal set out above.  
 
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