WORLD TRADE  
ORGANIZATION  TN/TF/W/44 
8 June 2005 
 (05-2338) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM THE SEPARATE CUSTOMS TERRITORY OF  
TAIWAN, PENGHU, KINMEN AND MATSU 
  
 The following communication, dated 7 June 2005, from the Delegation of the Separate 
Customs Territory of Taiwan, Penghu, Kinmen and Ma tsu, is being circulated in advance of the 
Negotiating Group meeting of 13-14 June.  
_______________ 
 
 
EXPERIENCE IN ESTABLISHING A SYSTEM FOR IMMEDIATE RELEASE 
OF EXPRESS CONSIGNMENTS 
  I. INTRODUCTION 
1. In our first communication (TN/TF/W/10), we proposed five possible measures to improve 
Articles VIII and X, with a view to further expe diting the movement, release and clearance of goods.  
One of those five proposals was to establish a mechanism for the speedy clearance of express 
consignments.  We noted that other Members rai sed similar suggestions, e.g., in communications 
from the United States (TN/TF/W/15) and Peru (T N/TF/W/30).  This paper focuses mainly on 
communicating, for the benefit of WTO Members, our own first-hand experiences in establishing this 
system in a way that satisfies the need s of the various trading communities. 
 2. With the steady growth of international trade and global investment, the application of more 
cost-efficient management techniques, such as the "j ust-in-time" and "zero inventory" systems, has 
become a critical element in the business process.  This is especia lly the case for small- and medium-
sized enterprises (SMEs), which often have to surv ive on very tight profit margins.  The longer 
Customs clearance takes, the higher the costs that traders have to bear.  We have recently conducted a 
survey among several hundred stakeholders, including  manufacturers, traders, brokers and forwarders, 
on the issue of trade facilitation and what they w ould like to see coming out of the negotiations.  More 
than half of those interviewed placed "Immediate Clearance of Express Consignments" among their 
top three priorities, with as many as one quarter of the total sample regarding this as the most needed 
measure of all.
1   
 
II. MAIN PRINCIPLES 
3. The most useful international guidelines produced so far on the subject of implementing this 
expedited Customs procedure were originally called the WCO (World Customs Organization) 
Customs Guidelines for Express Consignments Clearance , and have since b een amended and re-
                                                      
1 The survey was conducted  by the Importers & Exporters Association of Taipei earlier this year, 2005. 
Preliminary results show that 55.6% of firms rank "I mmediate clearance of expre ss consignments" among their 
top three priority needs, with 25.2% ranking it their number one most urgent issue.   TN/TF/W/44 
Page 2  
 
 named Guidelines for the Immediate Relea se of Consignments by Customs  in 2000.  We would 
recommend that the Members apply the followi ng main principles of the WCO Guidelines: 
• De minimis  threshold values :  Consignments may be divided into four categories for the 
purpose of granting immediate release:  
 
(i) correspondence and documents without commercial value, 
(ii) low value consignments for which no duties and taxes are collected, 
(iii) low value dutiable consignments, and 
(iv) high value consignments. 
• Simplified declaration of low-value shipments :  A simplified goods declaration containing 
the necessary information required by Customs should be allowed, especially for low value 
consignments. 
• Risk managemen t:  Customs are encouraged to examin e suspicious consignments based on 
risk management techniques. 
• Periodic declaration :  Customs may set up special procedures for authorized persons, such 
as periodic goods declaration, in order to furt her facilitate the release/clearance of high value 
consignments. 
• Financial guarantees :  Customs may institute expeditious release/clearance procedures 
without payment of customs duties, provide d operators conform to relevant Customs 
requirements and provide financial guarantees. 
• Flexible customs hours of operation :  Customs may allow the release/clearance of 
consignments to take place outside Customs offices’ normal business hours if the level of 
business so justifies.  
III. OUR EXPERIENCE 
A. O
VERVIEW  
4. With the pace of modern business accelerating day by day, demand for faster delivery of 
consignments increases exponentiall y.  The needs of traders for e xpeditious clearance can no longer 
be met by regular customs procedures.  In res ponse to these demand trends, we first enacted the 
"Regulations Governing Import and Export Cust oms Clearance Procedures for Express 
Consignments " in 1995.  Out of this an "Express Ha ndling Unit" was established accordingly and 
started operating in December of that year.  The 24-hour service rendered by our Customs has been especially welcomed by our industries. 
5. In 1997, the Sub-Committee on Customs Procedur es (SCCP), under the auspices of the Asia-
Pacific Economic Cooperation (APEC), agreed "t o implement principles contained in the WCO 
Guidelines on Express Consignment Clearance, the inte rnational standard procedures for clearance of 
goods, working in partnership with the express indu stry association" and listed it as one of 12 items 
(now 15 items) in the Collective Action Plan (CAP ) for the 21-member group, so as to further the 
trade facilitation goal of the APEC.  Accordingly, we made our commitment to full implementation of 
the WCO Guidelines by the end of 2000, and requested technical assistance from APEC/SCCP.  
Later, an Assessment Mission, composed of customs experts from various APEC members as well as  TN/TF/W/44 
 Page 3 
 
 
 industries, arrived in Taipei to conduct a t horough review of how we were processing express 
consignments, our progress in implementing the WCO Guidelines, and plans for improvement. 
6. In 1998, our Customs set up an ad hoc  task force to improve the express clearance system, 
taking into account the Mission’s recommendations.  An Express Division was later established 
within the Taipei Customs Office to deal with all express shipment matters.  " Directions Governing 
the Simplified Clearance Proce dures for Express Consignments " came into force in October 2000.  In 
December 2001, APEC/SCCP selected ou r Customs as the first to be reviewed.  An Advisory Mission 
was dispatched to Taipei, which concluded th at our Customs had met all the above-mentioned 
principles.  
B. BENEFITS AND COSTS  
1. Benefits 
7. The benefits experienced after implementation of the express clearance system have been 
widely recognized and appreciated by traders.  The average clearance time was dramatically reduced, 
from 48 hours  in 1996 to a mere 2 hours today.  This mean s huge savings in time and related costs for 
traders engaged in international trade.    
8. In addition, the volume of express entries incr eased sharply in the period of 2001 to 2003. 
While regular import/export entries grew by 11.4% , express entries increased by an impressive 
58.7%.  The ratio of express entries to total entries also rose steadily, from 71% in 2001 to more than 
three quarters in 2003.  In other words, three out  of every four import/export entries required express 
services; clear evidence of strong demand for expr ess clearance services.  One additional point for 
Customs to note is that the express mechanism may al so help to focus their attention on higher value 
consignments.  
2. Costs 
9. The cost of setting up an express clearance sy stem mainly hinges upon the degree of business 
demand and the existing customs facilities.  In our  case, we established 20 new processing lines, each 
equipped with an X-ray scanning machine.  There ar e a total of 117 officers at the Express Division, 
working day and night shifts so as to provide a 24/ 7 service.  These officers were relocated from other 
divisions.  Basically, there was no need for majo r new personnel recruitment overall.  Customs may 
consider cooperating with existing express service providers to share some of the initial infrastructure 
costs.  Some operational costs may also be borne by express shipment providers. 
C. KEY ELEMENTS OF SUCCESS  
10. From an exchange of views among Customs o fficials and express operators, it emerged that, 
while agreeing that strong "political will" has been the most important element of all in ensuring the 
success of the express clearance system, they would list the following factors as all being important 
contributory elements:  
 
• Political commitment and resolve :  recognition at the highest level that expedited 
clearance procedures would be vital for enhancing business competitiveness and long-
term economic development. 
• Good preparation :  prepared and determined to ab ide by the principles of the WCO 
Guidelines as much as possible. TN/TF/W/44 
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 • Teamwork
:  an organized and well-coordinated task force, set up at both the political 
and the technical level. 
• Close partnership with industry :  Customs working very closely with express 
operators to jointly identify areas for improvement. 
• Use of automated systems :  best use of automation and risk management techniques to 
process express consignments. 
IV. TECHNICAL ASSISTANCE AND CAPACITY BUILDING 
11. The Technical Assistance Programme of the APEC Sub-Committee on Customs Procedures 
(SCCP) could provide a useful reference for WT O Members wishing to implement an express 
clearance system in compliance with the WCO Guidelines for the Immediate Release of Consignments 
by Customs .  Based on our experience, we believe that a phased approach , supported by sufficient 
and effective technical assistance, would be the most  feasible way to go.  Technical assistance could 
be arranged via relevant interna tional organizations or the WTO.  Experienced Members could also 
offer their national experiences on a bilateral basis.  Alternatively, they may choose to team up with 
relevant international organizations  and/or interested private operato rs to develop a programme.  In 
outline, the implementation process may be di vided into the following three phases:  
Phase 1  Phase 2  Phase 3 
 All Members commit 
to facilitating 
clearance of express 
consignments. 
 A questionnaire is 
designed and distributed to all 
Members to 
determine needs for technical assistance.   Assessment 
missions are 
dispatched to 
requesting Members 
to identify areas for 
improvement. 
 Requesting 
Members develop a 
plan for improvement.   Follow-up missions 
assess progress 
made and identify 
areas requiring 
further action.  
 
  12. We believe that the needs of traders are well se rved by the express clearance system and, with 
appropriate technical assistance, all WTO Member s can develop the capacity to institute such a 
system.  We would be more than happy to share our experiences in detail with interested Members. 
 
 
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