WORLD TRADE  
ORGANIZATION  TN/TF/W/57 
22 July 2005 
 
 (05-3319) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM INDIA AND THE UNITED STATES 
 
 
 The following communication, dated 22 July 2005, from the Delegations of India and the United States, is being circulated in advance of the Negotiating Group meeting of 25-26 July.   
 
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Proposal by India and the United States
 
 
 
I. PROPOSAL 
• Establish a multilateral mechanism for the ex change and handling of information between 
Members. 
 
II. EFFECTIVE COOPERATION 
1. An important element of the Trade Facilitati on negotiating modalities includes the mandate to 
"aim at provisions for effective cooperation between customs or any other appropriate authorities on 
trade facilitation and customs compliance issues."  The Trade Facilitation negotiations present an 
opportunity to achieve an enhanced systemic found ation for cooperation that will be a significant 
achievement by offering new and enhanced ways for Members to improve border regime efficiency 
while also enhancing capabilities to ensure co mpliance with domestic legal requirements. 
III. EXPERIENCE  
2. Traditionally, cooperative information exchange efforts have been undertaken in a bilateral 
context, particularly with regard to case-specific ma tters that have advanced to the level of an actual 
ongoing investigatory proceeding.  Such approaches w ill continue to be important to address the often 
unique demands of an advanced individual inves tigation. The current negotiations provide an 
opportunity to give a multilateral underpinning to su ch cooperative efforts.  At the same time, the 
unprecedented growth in global trade provides ne w challenges to authorities responsible for 
administering a border regime.  Advancements in information technology and logistics techniques – 
and these negotiations – all present the potential for the establishment of new tools for authorities to 
meet such challenges. 
3. Increasingly, border authorities place a premium on utilizing functions that are "away from 
the border."  Advancements of this nature are being undertaken by Members at all levels of 
development, with growing use of measures such as  an "advance ruling regime," submission of "pre-
arrival information" and pre- and post-importation audits or verificati ons.  Each is an important tool 
both for achieving compliance with relevant domestic laws and regulations and for ensuring a trade-
facilitative border environment that will foster greater trade and investment. TN/TF/W/57 
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 4. At the core of meeting the challenges presented t oday to border authorities is information – its 
rapid transmission, handling, and use.  Many of  the proposals already submitted to the negotiations 
have described proposed commitments for certain measures to be undertaken "away from the border" 
as a "modernization" of what is currently articul ated in GATT Articles V, VIII, and X.  Such 
proposals also implicitly underscore the comple mentarity of trade facilitation measures and 
compliance efforts.  Our work on cooperation an d information exchange will help round out the 
operation of the commitments envisioned by these types of proposals. 
IV. A MECHANISM FOR INFORMATION EXCHANGE 
5. For purposes of this proposal, information can be  broken down into two types: the first is a 
defined universe of trade transaction information cons isting of the "documentation" or data elements 
that relate to the movement of goods across a borde r – i.e., the specific information normally collected 
in association with the importation and exportation of goods (e.g., name of importing or exporting 
party, origin of goods, description of goods, HS classification, declared value, shipper, etc.).  The other type of information is the secondary inform ation that may relate to the trade transaction 
elements.  The secondary information often arises in  a context of a more advanced procedural or 
investigatory stage – generally presenting case-specifi c needs and sensitivities that require individual 
handling.  Both information categories described can be th e subject of various cooperation efforts, and 
as such are potentially matters that can be addr essed as the negotiations proceed. However, this 
proposal deals with the first category of trade tran saction information and sets out a proposed path to 
establishing a mechanism for exchange of information between Members.  A future submission will 
set out a proposed path for addressing the second category of information. 
6. Members should establish a mechanism that is practical and effective, involving a 
commitment pertaining to (1) a defined universe of in formation, (2) a practical basis for exchange that 
is efficient and not burdensome, and (3) a structure for information exchange that is forward-looking–
both with regard to promoting continuous im provement in cooperation and commonality of 
information requirements.  
7. These objectives also point to an information ex change mechanism that is ultimately built 
upon implementation of World Customs Organization’ s Customs Data Model. Developing such an 
information exchange mechanism based on define d universe of trade transaction information, 
ultimately linked to the implementation of the WCO Data Model, would serve a dual purpose: 
enhancing individual Members’ ability to ensure compliance with domestic laws and regulations 
pertaining to goods crossing their borders, and improving Members’ ability to facilitate trade by 
moving compliance functions "away from the border." 
8. A critical element of moving this proposal forward would be to address the matter of 
confidentiality in handling of such information.  This  is often a complex matter, but at the same time 
developing an appropriate and effective commitmen t regarding treatment and handling of information 
subject to exchange will be a linchpin to success. 
9. As part of the ongoing negotiations, this proposal  lends itself well to addressing the issues of 
costs (and cost savings), technical assistance, implementation transitions and other needs of developing-country Members in a very concrete a nd practical manner.  This proposal should be seen 
as a vehicle toward bringing benefit not only to indi vidual Members at all levels of development, but 
also to the trading system as a whole – thro ugh the emergence of a virtual cooperation and 
information "network" involving all Memb ers that can be built upon as needed. 
  TN/TF/W/57 
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 10. As this is an initial proposal regarding an im portant subject area, we would make further 
submissions, either jointly or individually, to fu rther advance the work and provide necessary further 
elaboration of the issues highlighted in this pape r or other issues related to an effective customs 
cooperation mechanism. 
V. PROPOSED NEXT STEPS 
• Develop elements for a mechanism for excha nge of defined universe of trade transaction 
information, establishing an efficient process exploring the potential for use of the WCO 
Customs Data Model, and addr essing confidentiality matters.  
 
• Assess needs and priorities of developing count ries related to implementation of the proposal 
and develop a path by which every Member can  ultimately achieve full implementation of the 
mechanism. 
 
• Work with relevant international organizati ons and resource providers to address technical 
assistance and other issues as appropriate.  
 
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