WORLD TRADE  
ORGANIZATION  TN/TF/W/165/Rev.8 
21 April 2011 
 (11-1997) 
Negotiating Group on Trade Facilitation   
  
DRAFT CONSOLIDATED NEGOTIATING TEXT 
 
Revision
 
 
 
SECTION I...................................................................................................................... .......................3  
ARTICLE 1:  PUBLICATION AND AVAILABILITY OF INFORMATION ...............................3  
1. Publication.................................................................................................................... .............3  
2. Information Available Through Internet ...............................................................................3  
3. Enquiry Points................................................................................................................. ..........4  
4. Notification ................................................................................................................... .............5  
ARTICLE 2:  PRIOR PUBLICAT ION AND CONSULTATION ....................................................5  
1. Interval between Publication and Entry into Force ..............................................................5  
2. Opportunity to Comment on New and Amended Rules........................................................5  
3. Consultations.................................................................................................................. ...........5  
ARTICLE 3:  ADVANCE RULINGS..................................................................................................5  
1. Provision of Advance Rulings..................................................................................................5  
ARTICLE 4:  APPEAL [REVIEW] PROCEDURES ........................................................................7  
1. Right of Appeal ................................................................................................................ .........7  
2. Appeal Mechanism [in a Customs Union] [that is a WTO Member]...................................8  
ARTICLE 5: OTHER MEASURES TO ENHANCE IMPARTIALITY, 
NON-DISCRIMINATION A ND TRANSPARENCY ...........................................................8  
[1. Import Alerts/Rapid Alerts..................................................................................................... .8 
2. Detention...................................................................................................................... ..............9  
[3. Test Proc edures................................................................................................................ .........9  
ARTICLE 6:  DISCIPLINES ON FEES AND CHARGES IMPOSED ON OR IN 
CONNECTION WITH IMPORTAT ION AND EXPORTATION....................................10  
1. Disciplines on Fees and Charges Imposed on  or in Connection with Importation 
and Exportation ................................................................................................................ ......10  
2.  Penalty Disciplines ............................................................................................................ ......10  
ARTICLE 7:  RELEASE AND C LEARANCE OF GOODS...........................................................11  
1. Pre-arrival Processing ......................................................................................................... ...11  
2. Separation of Release from Final Determination and Payment of Customs 
Duties, Taxes, Fees and Charges ...........................................................................................12  
3. Risk Management ................................................................................................................ ...13  
4. [Post-clearance Audit] [Customs Audit]...............................................................................13  
5. Establishment and Publication of Average Release Times .................................................14  
6. [Authorized Operators]......................................................................................................... .14 
7. Expedited Shipments ............................................................................................................ ..15 TN/TF/W/165/Rev.8 
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ARTICLE 8:  CONSULARIZATION ...............................................................................................17  
[1. Prohibition of Consular Transaction Requirement.............................................................17  
ARTICLE 9:  BORDER AGENCY COOPERATION.....................................................................17  
[ARTICLE 9 BIS:  DECLARATION OF TRANSHIPPED OR IN TRANSIT GOODS] 
[DOMESTIC TRANSIT] .......................................................................................................18  
ARTICLE 10:  FORMALITIES CONNECTED WITH IMPORTATION AND 
EXPORTATION.................................................................................................................... .18 
1. Review of Formalities and Documentation Requirements..................................................18  
2. Reduction/Limitation of Formaliti es and Documentation Requirements .........................19  
3. Use of International Standards..............................................................................................19  
4. Single Window.................................................................................................................. .......20  
5. [Elimination of] [Mandatory] Pre-shipment [and Post-shipment Inspections].................20  
[6. Use of Cust oms Brokers ......................................................................................................... 21 
[7. Common Border Procedures [and Requirements] ..............................................................21  
[8. Uniform Forms and Documentation Requi rements Relating to Clearance].....................21  
9. Option to Return Rejected Goods to the Exporter ..............................................................21  
10. Temporary Admission of Goods/In ward and Outward Processing...................................21  
ARTICLE 11:  FREEDOM OF TRANSIT .......................................................................................22  
ARTICLE 12:  [CUSTOMS COOPERATION MECHANISM FOR TRADE 
FACILITATION AND COMPLIANCE][CUSTOMS COOPERATION]........................24  
ARTICLE 13:  INSTITUTIO NAL ARRANGEMENTS..................................................................28  
ARTICLE 14:  NATIONAL COMMITTEE ON TRADE FACILITATION ................................29  
ARTICLE 15:  PREAMBLE/CR OSS-CUTTING MATTERS .......................................................29  
SECTION II ..................................................................................................................... ....................30  
SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS FOR DEVELOPING 
COUNTRY MEMBERS AND LEAST DEVELOPED COUNTRY MEMBERS ............30  
1. [General provisions and basic principles].............................................................................30  
[2. Definitions of Categor ies of Commitments...........................................................................30  
3.  [Notification of Provisions under Category A].....................................................................31  
4. 
 [Notification of Provisions under Category B] [Establishing Implementation 
Periods] ....................................................................................................................... .............31  
5.  [Notification of Provisions under Category C].....................................................................32  
[5bis  Notification of Implementation Plans for Provisions Notified under Category C]...........32  
6.  [Use of the Early Warning Mechanis m][Extension for the Implementation 
Period of Provisions under Categories B and C] .................................................................33  
[6bis.  Shifting from Category B to C, or from C to B....................................................................34  
7. Grace Period for the Application of th e Understanding on Rules and Procedures 
Governing the Settlem ent of Disputes...................................................................................34  
[8. [Information on] Implementation of Provisions listed under Categories B and C ...........35  
9. Provision of Technical Assistance [, financ ial assistance] and Capacity Building............35  
10. Information on Assistance to be submitted to the Committee............................................37  TN/TF/W/165/Rev.8 
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  SECTION I 
ARTICLE 1:  PUBLICATION AND AVAILABILITY OF INFORMATION 1. Publication  
1.1 Each Member shall promptly publish the following information in a non-discriminatory and 
easily accessible manner in order to enable governme nts, traders and other interested parties to 
become acquainted with them[:]  
(a) Importation, exportation and transit proce dures (including port, airport, and other 
entry-point procedures) and required forms and documents; 
(b) Applied rates of duties [of customs] and taxes of [other] any kind imposed on or in 
connection with importation or exportation; 
(c) Fees and charges imposed by customs and other [border][governmental] agencies on 
or in connection with importation, exportation or transit; 
(d) Rules for the classification or valuation of products for customs purposes [as well as, 
if readily available, examples or illustrations  of such classifications and valuations]; 
(e) Laws, regulations and administrative rulings of  general application relating to rules of 
origin [for non-preferential trade],[as we ll as, if readily available, examples or 
illustrations of such determinations of origin]; 
(f) Import, export or transit restrictions or prohibitions; 
(g) Penalty provisions against breaches of import, export or transit formalities; 
(h) Appeal procedures; 
(i) Agreements or parts thereof with any c ountry or countries relating to importation, 
exportation or transit; 
(j) Administrative procedures relating to the imposition of tariff quotas [including quota 
size, in and out of quota rates, opening dates, allocation methods, licensing procedures and requirements, levels of  utilization, and additional terms and 
conditions, including any requirements imposed by state-importing authorities or 
other government bodies]. 
1.2 Nothing in these provisions shall be construe d as requiring the publication or provision of 
information other than in the language of the Member except as stated in paragraph 2.2.   
2. Information Available Through Internet 
2.1 Each Member shall [to the extent possible]  make available and update as appropriate the 
following through the internet: 
 a.) A description of its importation, exportation and transit procedures [, including appeal 
procedures][, that informs [governments and traders and other interested parties] of 
the practical steps needed to import and export, and for transit.] 
b) The forms and documents [and other duties and charges] required for importation 
into, exportation from, or transit th rough the territory of that Member. 
 [(c) Relevant trade-related legislation] 
 [(d) Contact information on enquiry points] 
 TN/TF/W/165/Rev.8 
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2.2 Whenever practicable, the description referred to  in subparagraph 2.1(a) shall also be made 
available in one of the official languages of the WTO. 
2.3. Members are encouraged to make availabl e further trade-related information through the 
internet, including items referred to in paragraph1.1. 
3. Enquiry Points 
3.1  Each Member [shall] [within its available resources] establish or maintain one or more 
enquiry points to answer reasonable enquiries of gove rnments, traders and other interested parties on 
matters covered by paragraph 1.1 as well as to provide the required forms and documents referred to 
in subparagraph 1.1(a). 
Alt
1:  [3.1 Each Member [shall] [within its ava ilable resources] establish or maintain enquiry 
points for matters covered by paragraph 1.1 as well as to provide the required forms and documents 
referred to in subparagraph 1.1(a)]  [3.2  [Developing] countries which are members of a customs union or involved in regional integration [Shall] [may instead] have the option of establishing and operation one or more enquiry 
points at the regional level.
2  The establishment and operation of a notified regional enquiry point 
would satisfy the requirements for the establishm ent and operation of a national enquiry point under 
paragraph 3.1.] 
Alt3: [3.2. Members of a customs union or invo lved in a regional integration may establish 
enquiry points at the regional level to  satisfy the requirement of 3.1.] 
 
3.3  Alt.1 [Members will not require the paym ent of a fee for answering enquiries.] [and/or 
providing forms and documents] Fees and charges, if any, for answering enquiries and providing required forms and documents, shall be limited in  amount to the approximate cost of services 
rendered. Any such fees and charges shall be the sa me for nationals of the Member concerned and for 
any other Member, except for the cost of delivery. 
Alt.2 [Members will not require the payment of a fee for answering enquiries.] [and/or providing 
forms and documents] Fees and charges, if any, for answering enquiries and providing required forms 
and documents shall be limited in amount to the approximate cost of services rendered.  Each Member shall ensure that where copies of forms and documents are requested by other Members or by traders and other interested parties in other Members, they ar e supplied at the same price, if any, which shall, 
apart from the cost of delivery, be the same for the nationals of the Member concerned or of any other 
Member. 
Alt.3
4 [Members shall not require the payment of a fee for answering enquiries.] [and/or, to the 
extent possible, for providing forms and documents]. Fees and charges, if any, for answering enquiries and providing required forms and documents, shall be limited in amount to the approximate 
cost of services rendered.] 
                                                     
 
1 Proposed by Switzerland. 
2 It is understood that individual Members benefitin g from these recommendations will continue to be 
legally responsible and accountable for their individual notifications and other obligations under these Agreements. 
3 Proposed by Switzerland. 
4 Proposed by Singapore  TN/TF/W/165/Rev.8 
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3.4  The enquiry points shall answer enquiries and provide the forms and documents within a 
reasonable time period set by each Member, which ma y vary depending on the nature or complexity 
of the request. 
4. Notification 
4.1 Each Member shall notify the Committee of: 
(a) The official place(s) where the items in  subparagraphs 1.1(a) to (j) have been 
 published, and  
(b) The URLs of website(s) referred to in paragraph 2.1, as well as the contact 
 information of the enquiry point s referred to in paragraph 3.1. 
ARTICLE 2:  PRIOR PUBLICATION AND CONSULTATION 
1. Interval between Publication and Entry into Force 1.1 Each Member [shall], [to the extent practicable ], ensure that a reasonable interval is provided 
between the publication [or, where appropriate, pre- publication] of new or am ended trade-related laws 
or regulations and their entry into force.
5 
1.2 [Changes to duty rates or tariff rates are excluded from this provision.] 2. Opportunity to Comment on New and Amended Rules  
2.1 Each Member shall [, to the extent practicable ,] [, as appropriate,] provide opportunities and a 
reasonable time period to traders and other interested  parties [within its territory] to comment on the 
proposed introduction or amendment of [trade-relat ed] [and] [customs] laws and regulations.   
3. Consultations 
3.1 Each Member shall, as appropriate, provide fo r regular consultations between border agencies 
and traders or other stakeholders within its territory. 
ARTICLE 3:  ADVANCE RULINGS 
1. Provision of Advance Rulings 
1.1 Each Member shall issue an advance rulin g [in a reasonable, time bound manner] [in a 
reasonable time not exceeding a maximum period of 150 days] to [an applicant][applicants with legal 
representation in the Member concerned] submitti ng a written request which contains all necessary 
information.  A [Member] [the competent authorit y of a Member] which declines to issue an advance 
ruling shall promptly notify the applicant in writing, setting out the relevant facts and the basis for its 
decision.  [Provided that no application shall be rejected under this paragraph unless an opportunity has been 
given to the applicant of being heard.] 
 1.2 The competent authority may decline to issu e an advance ruling to an applicant where the 
question raised in the application: 
                                                     
 
5 This is without prejudice to specific timeframes established under other WTO Agreements and 
practices of WTO Committees. TN/TF/W/165/Rev.8 
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(a) is already pending in the applicant's ca se before any governmental agency, the 
appellate tribunal or any court; 
(b) has already been decided by the appellate tribunal or any court.   
1.3 The advance ruling shall be valid for a reasona ble period of time after its issuance unless the 
law, facts or circumstances supporting the original advance ruling have change d.  In cases where the 
advance ruling was based on [false,] incorrect or mi sleading information, the competent authority may 
revoke, modify, invalidate [or nullify] th e ruling [with retroactive effect]. 
 1.3bis Where the competent authority revokes, modifi es, invalidates or nullifies the advance ruling, 
it shall provide written notice to the applicant setting out the relevant facts and the basis for its 
decision.  
 1.3ter  [On a request received from the applicant, the competent authority shall, before pronouncing 
the advance ruling, provide an op portunity to the applicant of [p resenting their illustrations] [being 
heard], either in person or through a duly authorized representative.]  
 
[The advance ruling pronounced by the competent authority shall be binding only   (a)  on the applicant who had sought it   
(b)  and the [commissioner of customs][head  of the customs administration] and the 
customs authorities subordinate to him in respect of the  applicant]  
 1.4 A Member shall publish, at a minimum:  
(a)  The requirements for the application for an advance ruling, including the information 
to be provided and the format. 
  (b)  The [standard] time period by which it will issue an advance ruling; and  
(c)  The length of time for which the advance ruling is valid. 
 
1.5 A Member [shall][may] provide, upon the written request of an applicant, an administrative 
review by the issuing authority [or a higher authority], of the advance ruling or the decision to revoke, modify, invalidate or nullify the advance ruling
6. 
 1.6 A Member shall endeavour to make informa tion publicly available on advance rulings which 
it considers to be of significant interest to other interested parties, taking into account the need to 
protect commercially confidential information.  1.7 Definitions:  [An advance ruling is a written d ecision provided by a Member, [according to its 
domestic legislation], to an applicant prior to the importation of a good covered by the application that 
sets forth the treatment the Member, [where possible or applicable] shall provide to the good at the 
time of importation [or exportation] with regard to : [the following, where they are implemented by 
Members:] ] 
(a) The good's tariff classification [[including] the applied duty rate for the product [or, 
where appropriate, the way the applied du ty rate for a product is calculated]]; 
                                                     
 
6 [A Member is not required to provide a [judicial] [right of] appeal of an advanced ruling or a decision 
to revoke or modify an advance ruling.] 
  TN/TF/W/165/Rev.8 
 Page 7 
 
 
[(b) The appropriate method, and the application of the method, to be used for 
determining the customs value under a particular set of facts;] 
[(c) The application of the Member's require ments for duty drawback, deferral, [or other 
relief from customs duties];] 
[(d) The application of the Member's requirements for quotas, including tariff quotas;]  
[(e) The origin of the good;] 
[(f) Additional matters for which a Member c onsiders it appropriate to issue an advance 
ruling;] 
[(g) The fees and charges that will be applie d [[or] [and], where a ppropriate, information 
on the way such fees and charges are calculated.]] 
 An applicant is an impor ter, exporter [or producer],  or a representative thereof [who meets the 
criteria specified in the national legi slation] [of the importing Member]. 
 
ARTICLE 4:  APPEAL [REVIEW]7 PROCEDURES 
1. Right of Appeal  
1.1 Each Member shall provide that any person to whom customs [or another relevant border 
agency] issues an administrative decision has the right, within its territory, [without penalty,] to: 
(a) administrative appeal [before an authority hi gher than and] [before an authority of 
different level] [independent of] the official or office that issued the decision; 
and[/or] 
(b) judicial appeal8 of the decision 
1.2 The legislation of each Member may require administrative appeal to be initiated prior to 
judicial appeal. 
1.3 Members shall ensure that their appeal pr ocedures are carried out in a non-discriminatory 
manner. 
[1.4  Members [shall [endeavour to]][may] ensure that customs [and other relevant border 
agencies] adopt and maintain [set][indicative] periods of time [as specified in national legislation] for 
review and, where necessary, correction of their decisions under the appeal procedures.] 
[In a case [of undue delay under procedures ment ioned under subparagraph 1.1(a)] [where the 
decision is not given within set periods as specified in national legislation], the appellant shall have 
the right to bring the case to [the next higher admini strative level or judicial appeal] [an authority of 
different administrative level or judicial appeal] [subject to the national legislation of a Member]] 
1.5 [Members shall ensure that, [upon request], the persons directly affected by an administrative 
decision [issued by customs and other border agen cies] are provided with the reasoning of the 
decision, including applied laws and regulations, and any applicable appeal procedures available.] 
                                                      
7 Addition requested by Singapore. Singapore is still considering the merits of the term "appeal" versus 
"review" to be used in this article. 
8 For avoidance of doubt the word "appeal" includes judicial review.  (Addition requested by 
Malaysia). TN/TF/W/165/Rev.8 
Page 8  
 
[Alt.2  Upon request, Members shall provide to the person[s] directly affected by [a] decision or 
order of the customs [or another relevant border agencies] the reasons for such decision or order 
within a period specified in national legislation.] 
[1.6 The decisions of administrative and judici al tribunals under paragraph 1.1 shall govern the 
practice of customs and other relevant agencies thr oughout [their jurisdiction] [the territory of the 
Member].[on single case basis and not for Jurisprudence proceedings.] ] 
2. Appeal Mechanism [in a Customs Union] [that is a WTO Member] 
[2.1 There shall be a mechanism [for redress of][to address] adverse findings of inspection 
authorities [at the import points of a customs union] [that is a WTO Member].  [In order to ensure quick and uniform appellate decisions, appeals agains t findings [of inspection authorities] at the level 
of a member state of a customs union [that is a WTO Member] shall be heard and decided at the 
customs union level.]  [Such appellate decisions sh all be binding on the inspection authorities of all 
member states of a customs union.] [that is a WTO Member]] 
2.2  [The decisions of administrative and judicial tribunals under paragraph 1.1 shall govern the 
practice of customs and other relevant agencies throughout the territory of [the] [each] Member. 
[including any Member that is a customs union] ] 
Alt 2
9 ( for both 2.1 and 2.2) [The highest appeal level available to a trader shall have the authority to 
issue decisions across the territory of the whole member with a view to achieving uniformity in 
administrative/customs procedures to the extent possible.] 
[Customs unions should progressively adopt the provisions contained in paragraph 2.1] 
ARTICLE 5: OTHER MEASURES TO ENHANCE IMPARTIALITY, 
NON-DISCRIMINATION AND TRANSPARENCY 
[1. Import Alerts/Rapid Alerts 
Alt 1 [1.1 A Member [may] [will] introduce [or maintain] [in its domestic regulatory regime] a 
system of import alert/rapid alert to [address risk related to] [animal health, plant health and food 
safety] [monitor and ensure the quality of ] imported [goods, especially] food products.] 
Alt. 2 1.1 Where a Member introduces or maintains a system of import alert/rapid alert [in cases 
of risk] [related to animal health, plant health a nd food safety] [related to food safety] the following 
disciplines shall apply:  
[1.2] [1.1.a] A Member shall apply an import alert/rapid alert system [for agricultural imports] 
only on the basis of established positive evidence of, [or reasonable doubt of] violation of the 
prescribed objective standards by imports from the country/exporter concerned [This system will be 
applied only if it is based on intern ational reference standards.].  
[1.3] [1.1.b] Alt. 1 Once a Member issues an aler t notification, the Member shall ensure that 
special inspections are based on uniform objective sta ndards. The Member shall also ensure that such 
inspections are conducted in a uniform manner [at a ll import points throughout the territory of the 
Member.] 
Alt. 2  [Where the competent authority of the importing country ascertains, through the rapid alert 
system and on the basis of scientific evidence, that a consignment does not meet the objective 
standards prescribed by the importing country, it sh all notify the competent authority of the exporting 
country]. 
                                                      
9 The purpose of keeping the A lternate is to provide ideas.  TN/TF/W/165/Rev.8 
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[1.4] [1.1.c] A Member shall promptly terminate [a n] [the] alert [notification] and its consequent 
actions if circumstances giving rise to the al ert notification no longer exist, or if changed 
circumstances can be addressed in a less trade rest rictive manner.  [Circumstances giving rise to an 
alert notification would be deemed to no longer exis t if [six] successive consignments imported from 
the country/exporter [Member] concerned have fu lfilled the prescribed objective standards, after 
issuance of the [alert notification].] 
[1.5] [1.1.d] A Member shall publish the announcement of termination of an [alert notification] in a 
non-discriminatory and easily accessible manner [within 15 days from the date of decision to terminate the [alert notification].] 
Definitions 
Import alert/rapid alert system is a border contro l mechanism to monitor and ensure the quality of 
imported [agricultural] goods [in cases of risk related to food safety].  The system is operated through 
issuance of an alert notification by a Member to concerned authorities for special inspection of goods 
covered under the alert notification.  2. Detention 
2.1 Alt.1 A Member [shall][may] [notify] [inform]  the importer or his authorized agent promptly 
in case of detention of imported goods for inspec tion by Customs or other competent authority. 
[Alt. 2 In case of detention of imported goods for inspection by the competent authority of the 
importing country, it shall directly and immediately inform the competent authority of the exporting country by any means of communication, and shall promptly provide the importer or his authorized 
agent with information regarding the detention.]  
[3. Test Procedures 
3.1 A Member shall grant an opportunity for a confir matory test in case the test result of a sample 
shows an adverse finding. 
3.2 A Member shall prescribe a procedure for conducting a confirmatory test [as well as any other 
elements for its application]. 
3.3 A Member shall publish names and a ddresses of accredited laboratories in a non-
discriminatory and easily accessible manner, where confirmatory tests can be carried out. 
[If it does not have duly accredited laboratories,  the importer or exporter concerned may have 
recourse to any accredited regional or international laboratory.] 
3.4 Findings of a confirmatory test shall be va lid and accepted uniformly throughout the territory 
of the Member.] 
[In the event of any discrepancy between the results  of the tests conducted by the competent authority 
of the importing country and the accredited independent  laboratory, the compet ent authorities of both 
parties shall establish contact as quickly as possible in order to institute the necessary administrative 
measures to resolve the situation.] TN/TF/W/165/Rev.8 
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ARTICLE 6:  DISCIPLINES ON FEES AND CHARGES IMPOSED ON OR IN 
CONNECTION WITH IMPORTATION AND EXPORTATION
10 
1. Disciplines on Fees and Charges Imposed on  or in Connection with Importation and 
Exportation 
1.1 The provisions of this article shall apply to all fees and charges (other than import and export 
duties and other than taxes within the purview of Article III of GATT 1994) imposed by [customs and 
other governmental agencies] [Members] [or bodies that act on behalf of governmental agencies on matters of customs intervention]
11 on or in connection with importati on or exportation of goods.  Such 
fees and charges shall be imposed only for servi ces rendered [or requested] in connection with 
importation or exportation of goods or for any formal ity required for undertaking such importation or 
exportation. 
 [1.2  Fees and charges shall be limited in amount to the approximate cost of the services rendered.] 
[The cost of services rendered shall be understood to  refer broadly to all costs related to the provision 
of services including reasonable infrastructure-related,  capital cost recovery, and continuing personnel 
training, equipment and software upgrades a nd maintenance related costs and expenses.] 
 [1.3  No fees or charges [shall][should] be levied on an ad valorem  basis[, unless the amount is 
limited to the approximate cost of the services rendered]].  1.4  Information on fees and charges shall be published in accordance with Article 1 of this 
Agreement.  This information shall include the fees and charges that will be applied, reason for such 
fees and charges, the responsible authority and when and how payment is to be made.  1.5  An adequate time period shall be accorded between the publication of new or amended fees 
and charges and their entry into force except in urge nt circumstances [or when justified by legitimate 
public policy objectives]. Such fees and charges sh all not be applied until information on these has 
been published.  1.6  Each Member shall periodically review its fees and charges with a view to reducing their number and diversity, where practicable.  2.  Penalty Disciplines 
2.1 [Each Member shall ensure that penalties for a breach of a customs law, regulation, or 
procedural requirement are imposed only on the [party ] [persons] [legally] responsible for the breach.] 
 2.1bis  The [severity of the] penalty imposed shall depend on the facts and circumstances of the case, 
[including the record of the party in its dealings w ith customs, and shall be [based on] [commensurate 
with] the degree and severity of the party’s breach]. 
 [2.2 Each Member shall provide that any penalty  for minor breaches of customs laws, regulations 
and procedural requirements shall be no greater than necessary to serve merely as a warning to avoid future breaches.] 
[2.3 Each Member shall ensure that it  maintains procedures to avoid conflicts of interest in the 
assessment and collection of penalties and duties. No portion of the remuneration of a government 
                                                     
 
10 Members reserve the right to make proposals to tr eat fees and charges in co nnection with transit in 
this article depending on their final treatment in Article 11 on transit.  
11 This bracket can be removed once the issue is addressed in a cross-cutting manner.   TN/TF/W/165/Rev.8 
 Page 11 
 
 
official shall be calculated as a fixed portion or percentage of any penalties or duties assessed or 
collected [other than the rewards approved under the national legislation]. ] 
 
2.4 Each Member shall ensure that when a pe nalty is imposed for a breach of customs laws, 
regulations, or procedural requirements, an expl anation in writing is provided to the [legally 
responsible party] upon whom the penalty is imposed [ specifying the nature of the breach, the 
products and/or means of transport involved [, a nd how the penalty amount was determined][why the 
penalty was imposed]. 
[2.5 Each Member shall [provide [for the waiver or reduction] [its customs administration with the 
authority to reduce] penalties [, where possible, ] which would have othe rwise been imposed on a 
legally responsible party, when that] [allow a] party [who] voluntarily discloses the circumstances of a 
breach of customs laws, regulations, or procedural requirements prior to the discovery by the customs 
administration of the breach [to raise such disclos ure for mitigation purposes].  Where the disclosing 
party can correct the breach, a Member may require th at the party correct it within a reasonable period 
of time, including paying any duties, taxes, and fees owed.] 
 
[2.6 Each Member shall establish or maintain j udicial, arbitral, or administrative tribunals and 
procedures for prompt review and, where warrante d, correction of final administrative actions 
regarding matters covered by this Article.  Such tr ibunals shall be impartia l and independent of the 
office or authority entrusted with administrative enforcement and shall no t have any substantial 
interest in the outcome of the matter.12] 
[Alt.: Each Member shall establish or maintain ju dicial, arbitral, or administrative instances and 
procedures for prompt review and, where warrante d, correction of final administrative actions 
regarding matters covered by this Article. Such in stances shall be impartial and independent of the 
office or authority entrusted with administrative enforcement and shall no t have any substantial 
interest in the outcome of the matter. 
[2.7 Each Member [shall] [is encouraged to] sp ecify a fixed, finite period within which it may 
initiate penalty proceedings in connection with a bre ach of a customs law, regulation, and procedural 
requirements.] 
[2.8 "Party legally responsible for the breach" or "legally responsible party" is the natural or 
juridical person(s) that has the obligation to comp ly with a customs law, regulation or procedural 
requirement.] 
[2.9 "Minor breaches" shall mean omissions or mistakes, including mistakes in complying with a 
customs law, regulation or procedural requirement, including a mistake in copying, inputting or transmitting information, obviously made wit hout fraudulent intent or gross negligence.] 
[2.10 For the purpose of Article 6.2, the term "penalties" shall mean civil or administrative 
penalties.  That term shall not include criminal penalties, except where a Member’s law provides 
[only] for criminal penalties for breaches of custom s laws, regulations and procedural requirements.] 
ARTICLE 7:  RELEASE AND CLEARANCE OF GOODS 
1. Pre-arrival Processing 
1.1 [Each Member shall adopt or maintain proce dures for traders [with good compliance records] 
to submit import documentation, a nd other required information or, where the Member so provides, 
their electronic equivalent, to customs [and ot her relevant border agencies] for [processing] 
                                                     
 
12 This language may be dropped from the proposal should it be adequately addressed in the context of 
the Article X proposals on appeal procedures. TN/TF/W/165/Rev.8 
Page 12  
 
[examination] prior to the arrival of goods with a view to expediting the [clearance and] release of 
goods upon arrival.] 
1.2  Members shall, as appropriate, provide for a dvance lodging of documents in electronic format 
for pre-arrival processing of such documents. 
 [1.3  With respect to vessels subject to procedures for the declaration (by manifest or similar 
document) of the vessel and its cargo, such procedures shall be applied prior to the vessels' arrival, so 
as not to unduly delay the vessel and the unloading of its cargo.] 
[1.4  For pre-arrival processing purposes, Memb ers may require (additional) documentation and 
data [(such as tracking notes) only] to the extent  that such documents and data (including tracking 
notes) are [necessary][useful, inter a lia] for risk management purposes, [and to facilitate] [and for] the 
expedited release of goods upon arrival.] 
2. Separation of Release from Final Determination and Payment of Customs Duties, Taxes, 
Fees and Charges 
2.1  [Each Member [shall] [is encouraged to] a dopt or maintain procedures [providing][allowing] 
an importer [or its agent] [the opportunity] to obtai n the release of goods prior to final determination 
and payment of customs duties, taxes, fees and charges, upon provision of sufficient guarantee [as determined by the Member itself] [where these are not determined at or prior to arrival] [where there 
is delay in the final determination of cu stoms duties, taxes, fees and charges].] 
2.2.  
Alt. 1:  Where [all regulatory requ irements have been me t and where], upon arrival of the goods, there 
is a delay in the final determination of customs du ties, taxes, fees and charges, each Member shall 
allow an importer or its agent to obtain the release of goods [as soon as possible after their arrival and] 
prior to such determination, upon provision of sufficient guarantee in the form of a surety, a deposit or some other appropriate instrument which shall not exceed a [reasonable][ maximum] estimate by 
Customs of the customs duties, taxes, fees and ch arges for which the goods may be liable.  [This 
guarantee shall not represent an indirect protection to domestic products or a taxation of imports for 
fiscal purposes.].[In cases where an offence has been detected, a guarantee may be required for the 
fine and penalty that may be imposed.] 
Alt.2 [In cases where, upon arrival of goods, there is a delay  in the final determination of customs 
duties, taxes, fees and charges on imported goods a nd where all other import requirements have been 
met, Members shall allow the importer of goods to withdraw them from Customs [without undue 
delay,][promptly upon arrival] if[, where so requi red,] the importer provides sufficient guarantee in 
the form of a surety, a deposit or some other appr opriate instrument [as determined by the Member,] 
covering the ultimate payment of Customs duties, ta xes, fees and charges for which the goods may be 
liable.  In cases where an offence h as been detected [and when the good s concerned are not considered as 
essential productions of an inquiry into the offence], a guarantee may be required for the [value,] fine 
and penalty which may be imposed.] 
2.3 Alt.1 The guarantee shall be discharged wit hout delay when it is no longer required for its 
intended purpose. 
[Alt.2  Once the Member has determined that its requirements for customs duties, taxes, fees and 
charges have been satisfied [and all regulatory re quirements have been met], the guarantee for the 
goods shall be discharged without undue delay, un less the guarantee covers multiple transactions.]    TN/TF/W/165/Rev.8 
 Page 13 
 
 
2.4 Nothing in these provisions shall affect the right of a Member to examine, detain, seize or 
confiscate or deal with the goods in any manner not otherwise inconsistent with the Members WTO 
rights and obligations. [This article is not inte nded to cover cases which involve violations of 
Members' laws or fraud: in such situations, the release of the goods should be governed by Members' 
laws.] 
3. Risk Management 
3.1 Members shall apply [, to the extent possi ble,] risk management to customs control in 
connection with importation, exportation and transit.   
 [Bis: A Member shall apply [, to the extent possibl e,] a common risk management system across its 
entire territory.]  
3.2 Members shall concentrate customs control [a nd other relevant border controls] on high risk 
consignments and expedite the re lease of low risk consignments. 
 [3.3 [Members shall base risk management] [In applying risk management, Members shall use] 
[on] appropriate selectivity criteria, such as, inter alia , HS code, nature of the goods, country of 
origin, country from which the goods were shipped, va lue of the goods, complian ce record of traders, 
type of means of transport and purpose of the stay of the goods in the Customs territory.]  3.4 Members shall design and apply risk manage ment in a manner as to avoid arbitrary or 
unjustifiable discrimination [under the same conditions ], or disguised restrictions to international 
trade. 
 
[3.5 To the extent possible, double controls sh all be avoided in the release of goods between 
members of a customs union when this is undert aken in entry or exit of the countries.] 
 [3.6 Definitions: 
 
(a) Risk means the potential for non-compliance with customs and/or other relevant laws, 
regulations or procedural requirements connect ed with the importation, exportation or 
transit of goods.  
(b) Risk Management means the systematic application of management procedures and 
practices providing customs [and other relevant border agencies] with the necessary 
information in order to address movements or consignments which present a risk.  
(c) Customs Control means measures applied by th e customs to ensure compliance with the 
laws and regulations [or procedural requireme nts] which the Customs is responsible for 
enforcing.] 
 
4. [Post-clearance Audit] [Customs Audit] 
Definition 
Alt.1 [Post-clearance audit] [Customs audit] me ans the [audit] conducted by the customs [for 
customs purposes] [following customs release [and during a determined period of time] ] [on the 
basis] of the account books and vouchers, customs declaration documentations or data, commercial 
documents [and goods] of the [traders] [importers , consignees or their representatives] including 
electronically stored information [for the purpo se of customs compliance][for compliance with TN/TF/W/165/Rev.8 
Page 14  
 
customs legislation]
13 [with the purpose to identify [the authenticity and validity of the trade][and 
guarantee the compliance with customs legislation.]  Alt.2 [Customs audit is the process whereby th e examination and verification of the goods is 
conducted by Customs before, during and after rel ease of the goods, within a specified period of 
time.] 
4.1 With a view to expediting the release of goods  [at borders,] Members shall [, where possible,] 
adopt [customs audit] [post-clearance audit
14]. 
4.2 The [post-clearance audit] [customs audit] sh all be implemented in a transparent manner. [In 
accordance with national legislation], Members sha ll notify the persons [concerned] [audited] of the 
result of the [case][audit], the rights and obligations  it has, [the remedies available under the law to 
the person audited] and the evidences and reasons for the result. 
4.3 Members acknowledge that the information obtain ed in [post-clearance audit] [customs audit] 
may be used in further administrative or judicial proceedings.  
 
4.4 Members shall, wherever practicable, use the re sult of [post-clearance a udit] [customs audit] 
in applying risk management and identifying authorized traders.   4.5
15 Members may conduct [post-clearance audit] [c ustoms audit] throug h methods of regular 
audit and targeted audit to identify the risk and assess the compliance of traders. 
5. Establishment and Publication of Average Release Times16 
5.1 Members [shall] [are encouraged to] measure  and publish their average release time of goods 
periodically and in a consistent manner [, using tools such as, inter alia , the WCO Time Release 
Study].17 
[5.2 Members are encouraged to  share with the Committee their experiences in measuring average 
release times, including methodologies used, bottl enecks identified, and any resulting effects on 
efficiency.] 
 [5.3 In case of undue delays in the release of goods  with respect to the average time published, and 
upon written request by traders, Members are encour aged to inform, in writing, the reasons for the 
delay.] 
 
6. [Authorized Operators] 
6.1 Each Member [shall][may] provide additi onal [facilitations] [trade facilitation measures]  
related to import, export and transit formalities and procedures under paragraph 6.3 to operators, 
hereinafter called [authorized operators],  who meet specified criteria.   [The specific criteria shall be related to compliance, or the risk of non-complian ce, with requirements specified in a Member’s laws, 
regulations or procedures [, which may arise as a result of providing a facilitation measure under 
paragraph 6.3].] The criteria, whic h shall be published, may include: 
                                                     
 
13 "(...) respect de la législation douanière" in the original French. 
14 Indonesia proposed to change the word order of the sentence so that it would start with "Members 
shall adopt.... with a view to expediting the release of goods." 
15 Vietnam wants this § to became § 4.2 and to use "post-clearance audit" instead of "customs audit". 
Current § 4.2 is proposed to become 4.3, with § 4.3 then being listed as § 4.5. 
16 This section does not apply to a member where imported goods are generally released instantly on 
arrival.    
17 Each Member may determine the scope and method ology of such average release time measurement 
in accordance with its  needs and capacity.  TN/TF/W/165/Rev.8 
 Page 15 
 
 
(a) An appropriate record of compliance w ith customs and other related laws and 
regulations, 
(b) A system of managing records to allow for necessary internal controls, and 
(c) Financial solvency, including, where a ppropriate, provision of a sufficient 
security/guarantee. 
 
6.2 The specific criteria to qualify as an  [authorized operator] shall not:  
(a) be designed or applied so as to affo rd or create arbitrary or unjustifiable 
discrimination between operators where the same conditions prevail;  
[(b)  include a requirement that the owner of the operator be a national of the Member; ]or,  
[(c)  include a requirement based on [the size of the operator or] [the value or volume of 
the operator’s imports or exports].] 
 
6.3 Trade facilitation measures for [authorized ope rators] [shall][may] include  [at least X] 
measures, inter alia: 
(a) Reduced documentary and da ta requirements as appropriate; 
 [(b)  A single goods declaration for a ll imports or exports in a given period;] 
(c) Fewer physical inspections and examinations; 
(d) Rapid release time. [(e) Deferred payment of duties, taxes, fees and charges; (f) [Use of corporate guarantees] [Reduced guarantees]; (g) Clearance of goods at the premises of the [authorized operator] or another place 
authorized by the customs.] 
6.4 [Members shall develop [authorized opera tors] schemes on the basis of international 
standards, where such standards  exist, except when they would be an inappropriate or ineffective 
means for the fulfilment of the legitimate objectives pursued.]  6.5 In order to enhance the facilitation measures provided to operators Members shall afford to 
other Members the possibility to negotiate mutual  recognition of [authorized operator] schemes [on 
the basis of international standards.] 
6.6.  Nothing in this section precludes a Member from offering any of the above facilitation 
measures to all operators.  
7. Expedited Shipments 
7.1 Each Member [shall][may] adopt or maintain  procedures allowing for expedited release of at 
least those goods entered through air cargo facilities to persons that apply for such treatment, while 
maintaining customs control.
18  If a Member employs criteria li miting who may apply, the Member 
may, [in published criteria,] require that the appli cant shall, as conditions for the application of the 
procedures described in paragraph 7.2 to its expedited shipments: 
 
                                                      
18 In cases where a Member has an existing procedure that provides the treatment in paragraph 2, this 
provision would not require that Member to introduce separate expedited release procedures. TN/TF/W/165/Rev.8 
Page 16  
 
(a) Provide adequate infrastructure[, including  devices for matching between the screening 
results of goods and their declaration informa tion,] [and reimbursement  of customs-related 
expenses
19 to allow customs to process its expedited shipments], in cases where the applicant 
fulfils the Member's requirements for such pro cessing to be performed at a dedicated facility; 
(b) Submit in advance of the arrival of an expe dited shipment the information necessary for 
release; 
(c) Be assessed fees limited in amount to the approximate cost of services rendered in providing 
the customs procedures in paragraph 7.2; 
(d) Maintain a high degree of control over expe dited shipments through the use of internal 
security, logistics, and tracking technology from pick-up to delivery; 
(e) Assume liability for payment of all customs duties, taxes, and fees and charges to the 
customs authority for the  goods; 
(f) Have a good record of compliance with custom s and other related la ws and regulations; 
[(g) comply with other conditions directly relate d to the effective enforcement of the Member’s 
laws, regulations and procedural requirement s, if necessary for reasons attributable to 
differences between the Member’s expedited release procedures and its non-expedited 
release procedures.] 
[h. registration with relevant administrations with in the customs territory subject to the domestic 
legislation;   
i. fulfil the obligations of  visual examinati on of goods in receipt thereof for the purpose of 
trade security; 
j. actively report suspicious information to the customs to ensure the compliance with relevant 
laws and regulations; and 
k. assume liability to customs for the goods in the same manner as if it is the sole carrier.] 
7.2 Subject to subparagraphs 7.1 and 7.320, the expedited release procedures shall: 
 
(a) Allow, prior to the arrival of an expe dited shipment, for the submission and 
processing, including through electronic means, of information necessary for the release of the shipment
21; 
(b) Minimize the documentation required for the release of expedited shipments, [as 
appropriate], [including, to the extent possible, providing for release based on a single submission of information on all goods of de minimis  value in the expedited 
shipments;] 
(c) Provide for expedited shipments to be released under normal circumstances [within 
[[3][6][24][48] hours][a reasonable period of time] [consistent with national rules and 
procedures] after arrival ] [and in consistence with na tional rules and regulations, 
within 24 hours after arrival,] provided the information required for release has been 
submitted; 
                                                     
 
19 Consider reimbursement of customs-related expenses at non-dedicated facilities.  
20 This addition is intended to make clear that the treatment in paragraph 7.2 need not be provided if the 
conditions in paragraph 7.1 have not been met or, as provided in paragraph 7.3, if authorities consider it 
necessary to obtain additional information or conduct screening or examine goods.  Also, paragraph 7.3 has 
been modified to confirm that expedited treatment need not be provided to restricted goods.  
21 This language may be dropped from the proposed article should it be adequately addressed in the 
context of the proposal on release and clearance.   TN/TF/W/165/Rev.8 
 Page 17 
 
 
[(d) Apply [without regard to weight or valu e][with respect to the nature of the goods], 
[without prejudice to the right of the Member  to differentiate doc umentation requirements 
based on value or consider value as part of its risk management decisions] [unless provided 
under national legislation];] 
[(e) Allow [under conditions deemed fit by the customs] for the release of expedited 
shipments before and without prejudice to th e final determination and payment of the 
applicable customs duties, taxes, fees and ch arges owed, if, where so required, sufficient 
guarantee is provided in the form of a surety, a deposit, or some other appropriate instrument, 
covering the ultimate payment of the customs du ties, taxes and fees in connection with the 
importation of the expedited shipments22;] and 
[(f) Provide for a de minimis shipment value[, to the extent  possible,] for which customs 
duties and taxes will not be collected [aside from certain prescribed goods]23.] 
[7.3 Nothing in these provisions shall affect the right of a Member to detain, seize, examine, 
confiscate or refuse entry to goods, or to carry out post-clearance audits, in a manner not [otherwise] 
inconsistent with the Member's WTO rights and oblig ations, including in connection with the use of 
risk management systems.  Further, for goods subj ect to licensing or similar regulatory requirements, 
nothing in these provisions shall prevent a Member  from collecting customs duties or taxes or, from 
requiring as a condition for release, both the submissi on of additional information and the fulfilment 
of non-automatic licensing requirements.]  
ARTICLE 8:  CONSULARIZATION 
[1. Prohibition of Consular Transaction Requirement 1.1 A Member shall not require a consular transaction
24, including any related fee or charge, in 
connection with the importation of any good. [T o ensure the authenticity of all commercial 
documentation, the Member should strengthen customs cooperation.] ] 
ARTICLE 9:  BORDER AGENCY COOPERATION 
1 A Member shall ensure that its authorities and agencies responsible for border controls and 
procedures dealing with the importation, exportation and transit of goods cooperate with one another 
and coordinate their activities in order to facilitate trade.  [2. A Member shall endeavour [may] to ensure that its authorities and agencies responsible for 
border controls and procedures dealing with th e importation, exportation and transit of goods 
harmonize their procedures.] 
3. Members shall [, to the extent possible and practical,] cooperate with other Members with 
whom they share a common border and coordinate pr ocedures at border crossings to facilitate cross-
border trade.  Such cooperation and coordination may include: 
                                                     
 
22 This language may be dropped or modified in light of the language used in Article 7.2, release and 
clearance. 
23 By virtue of the fact that the goods described in the last sentence of paragraph 7.3 need not be 
provided expedited treatment, the de minimis  provision would not interfere with collection of taxes of such 
goods (e.g., liquor).  Furthermore, this provision would not require Members to introduce separate de minimis  
shipment value for goods subject to expedited release procedures. 
24 Defined as "the procedure of obtaining from a consul of the importing Member in the territory of the 
exporting Member, or in the territory of a third party, a consular invoice or a consular visa for a commercial 
invoice, certificate of origin, manifest, shippers' export declaration, or any other customs documentation in 
connection with the importation of the good."   TN/TF/W/165/Rev.8 
Page 18  
 
(i) Alignment of working days and hours; 
[(ii)      Alignment of procedures and formalities;  
(iii)  Development and sharing of common facilities; (iv)  Joint controls; (v) Establishment of one stop border post control 
(vi) [Establishment of expedited processes for goods in transit and physically separate 
infrastructure, such as transit lanes or berths
25] 
(vii) Exchange of information [in accordance w ith national legislation] [for conducting joint 
controls and recognition of inspection results] ] 
 
[ARTICLE 9 BIS:  DECLARATION OF TRANSHIPPED OR IN TRANSIT GOODS] 
[DOMESTIC TRANSIT] 
Alt. 1 [When goods being imported ha ve a final destination in the te rritory of that Member other 
than the port of entry,][Members shall permit [the declarant to declare the goods for the relevant 
import customs procedure at the customs office most  convenient for that purpose,] [that transit or 
transhipped goods are declared for the relevant im port customs procedure at the customs office of 
destination or the customs office] [where these customs formalities can be fulfilled in the territory of 
destination.] 
Alt. 2  [Where any goods imported at a customs st ation of any Member are mentioned in the import 
manifest/report as [for transhipment to][destined for] any other customs station of the Member, the 
Customs [may][shall] allow the goods to be [moved under a domestic transit pr ocedure] [transhipped] 
to that customs station, without payment of duty, subject to such conditions as may be prescribed in 
this behalf.] 
[Consignments which are being transhipped26 shall be subject to less one rous customs procedures than 
those applied to traffic in transit.]  ARTICLE 10:  FORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION  
1. Review of Formalities and Documentation Requirements 
[1.1 With a view to minimizing the incidence and complexity of import, export, and transit 
formalities and of decreasing and simplifying import,  export and transit documentation requirements:] 
(a) Each Member [shall] [, as appropriate,]  review its formalities and documentation 
requirements relating to import, export and trans it [at reasonable and regular intervals]  taking 
into account changed circumstances, releva nt new information and business practices, 
availability of techniques and technology, in ternational best practices and inputs from 
interested parties. 
(b) The Committee shall develop procedures for shari ng relevant information and best practices 
as appropriate. 
                                                     
 
25 Subject to how transit is covered in the Agreement, one might have to revisit transit in this article and 
decide whether to change the language or delete it if covered elsewhere. 
26 Defined as " transferred under customs control from the incoming means of transport to the out-
going means of transport within the area of one Customs office ."  TN/TF/W/165/Rev.8 
 Page 19 
 
 
2. Reduction/Limitation of Formalit ies and Documentation Requirements 
[2.1 Members shall ensure that formalities a nd documentation requiremen ts are applied in a 
manner as not to constitute an unnecessary obstacle to trade.   Members shall consider whether alternative fo rmalities and requirements that can achieve the 
legitimate objectives are reasonably available, and adopt those formalities and requirements which are 
significantly less trade restrictive.] 
 [2.2 Members shall, as appropriate, minimize th e incidence and complexity of formalities and 
requirements relating to import, export or tr ansit, and decrease and simplify documentation 
requirements.] 
 
[2.3 Any such formalities or requirements shall not be maintained if the circumstances or 
objectives giving rise to their adoption no longer exist or if changed circumstances or objectives can 
be addressed in a less trade restrictive manner.]  
[2.4 Members [shall] [are encouraged to] use the following international sta ndards and their future 
updates:  
(a)  UN layout key, (b)  UN Trade Data Elements Directory and (c)  the WCO Data Model] 
 
1. [When import, export or transit formaliti es of Members require presentation of supporting 
data or documents, Members shall endea vor to accept copies of such documents.] 
 2. [Where a government agency of a Member alr eady holds the original of a required document, 
any other agency of that Member shall accept a copy  authenticated by the ag ency holding the original 
in lieu of the original document.]  3. [Nothing in these provisions shall prevent a Member from requiring original documents or data in the course of exercising post entry audit.]  3. Use of International Standards 
3.1 Members [are encouraged to] [shall] use releva nt international standards or parts thereof [as a 
reference] [as a basis] for their importation, expor tation or transit formalities and procedures, except 
as otherwise provided for in this Agreement.  
[3.2 Members are not required to use international standards when: 
 
(a) the Member is not a signatory to such standards; 
(b) these standards are not appropriate to their development, financial or trade needs; 
(c) these standards would pose fundamental technological or infrastructural problems; or 
(d) these standards would be an ineffective or inappropriate means for the fulfilment of 
the legitimate objective pursued.] 
[3.3 Members are encouraged to take part, within the limits of their resources, in the preparation 
and periodic review of relevant in ternational standards by appropriate  international intergovernmental 
organizations.]  3.4 The Committee shall develop procedures for the sharing by Members of relevant information, 
and best practices, on the implementation of inte rnational standards, as appropriate. The Committee TN/TF/W/165/Rev.8 
Page 20  
 
may also invite relevant interna tional organizations to discuss their work on international standards.  
As appropriate, the Committee may identify specific standards that are of particular value to 
Members.  [3.5 For the purpose of this Agreement, the term  "international standards" shall be understood to 
refer to standards for facilitating trade promulgate d by the relevant international intergovernmental 
organizations whose membership is open to all WTO Members.]  
4. Single Window 
4.1 Members shall, [where practicable] [endea vour to], establish or maintain a single window, 
enabling traders to submit documentation and/or da ta requirement for importation, exportation or 
transit of goods to a single entry point. [The single window shall undertake onward distribution of the aforementioned documentation and/or data requirements to the participating authorities or agencies.]  
After the examination by the participating authoriti es or agencies of the documentation and/or data, 
the results shall be notified to the applicants through the single window in a timely manner. 
 
4.2 In cases where documentation and/or data requi rements have already been received by the 
single window, the same documentation and/or data re quirements shall [normally] not be requested by 
participating authorities or agencies except in ur gent circumstances and other limited exceptions 
which are made public. 
4.3 Members shall notify the Committee the details of operation of the single window. 
4.4 Members shall, to the extent possible and pr actical, use information technology to support the 
single window. 
[4.5 Members shall, where practicable, use relevant  international standards as a basis for the single 
window schemes
27.] 
4.6 [With regard to the scope of the partic ipating authorities or agencies, and of the 
documentation and/or data requirements,] Members may implement the single window in a 
progressive manner. 
5. [Elimination of] [Mandatory] Pre-shipment [and Post-shipment Inspections]  
5.1  Members [where applicable] shall not re quire the [mandatory] use of pre-shipment 
inspections [as defined in Article 1 of the Agreemen t on Pre-shipment Inspection] [in relation to tariff 
classification and customs valuation][other than in  instances specified by the national legislation]. 
 
[Likewise, Members shall not require the use of post- shipment or destination inspection in relation to 
tariff classification and customs valuation. This is without prejudice to checks and controls performed 
by customs or other government agencies in the framework of risk management.] 
 
[5.2  From the entry into force of this agreemen t, Members shall [endeavour] not [to] introduce or 
apply any new requirements to use pre-shipment [or post-shipment inspections] [referred to in Article 
6.1] [in relation to tariff classification and customs valuation].] 28 
 [5.3 Developing Country Members, including Least Developing Country Members, shall [to the extent possible] [progressively] implement the provisions of paragraph 6.1 subject to their requesting 
                                                     
 
27 The bracketed wording can be deleted subject to the issue being addressed in a cross-cutting manner.  
28 Depending on definition of Category A provisions.    TN/TF/W/165/Rev.8 
 Page 21 
 
 
for and receiving from other Member(s), the nece ssary technical assistance and capacity building 
within the time period specifically  agreed with such Member(s).] 
 
[6. Use of Customs Brokers 
6.1  [Members [shall not] [are encouraged to not] [may] require the mandatory use of customs 
brokers.] 
 [Members, if and when licensing customs brokers, sh all apply licensing rules that are transparent, 
[non-discriminatory] and reasonable.  
Legal persons may operate with their own in-h ouse customs broker, licensed by the competent 
authority.] 
Alt. [6.1  Without prejudice to paragraph 7.2, Members shall not require the mandatory use of 
customs brokers. 
6.2  Developing country Members shall eliminate any requirements for mandatory use of customs 
brokers not later than [X] years from the entry in to force of this commitment.  Least developed 
country Members shall eliminate any requirements for mandatory use of customs brokers not later 
than [Y] years from the entry in to force of this agreement.] 
[7. Common Border Procedures [and Requirements]  
7.1 Each Member shall apply common [customs] [a nd other] [border] procedures for [release] 
and clearance of goods [at different points of en try and exit of the same nature] throughout its 
territory. [[This shall include adoption of same sta ndards] including [fees and charges,] specifications, 
terminologies and definitions, inspectio n, sampling and test methods.]]  
[8. Uniform Forms and Documentation Re quirements Relating to Clearance] 
[8.1] [7.2] All documentation requirements relati ng to [customs] [border] [import, export and 
transit] procedures shall be [uniform and] [applied]  [administered] uniformly [at different points of 
entry and exit of the same nature] throughout the territory of a Member. 
9. Option to Return Rejected Goods to the Exporter 
[9.1 In case of rejection of a consignment by th e competent authority of a Member on account of 
failure to meet certain standards [other than goods violating intellectual property rights], [rather than 
those of health and environmental protection] an optio n [shall] [may] first be given to the importer to 
[re-export] [return] the rejected goods to the expo rter [subject to the conditions stipulated in the 
national legislation of the member]; only upon failure  by the importer to exercise this option within a 
reasonable period of time, a different course of action, including destruction of the goods can be considered by the competent authority.  
[9.2 In the case of return of prohibited and r estricted goods, the exporting Member shall accept the 
returned goods.] 
10. Temporary Admission of Goods/Inward and Outward Processing (a) Temporary Admission of Goods 
 
[Members shall allow goods, as defined in its laws and regulations, to be brought into a 
customs territory conditionally relieved, totall y or partially, from payment of import duties 
and taxes if such goods are brought into a customs territory for a specific purpose, are TN/TF/W/165/Rev.8 
Page 22  
 
intended for re-exportation within a specified period and have not undergone any change 
except normal depreciation and wastage due to the use made of them.] 
 
 (b) Inward and Outward Processing 
 
(i) Each Member shall allow inward and outward processing of goods [in accordance with 
international standards [and practices]] [s ubject to terms and conditions as may be 
specified in the national legislation].  
(ii) For the purposes of this Article, the term "inward processing" means the Customs 
procedure under which certain goods can be brought into a Customs territory 
conditionally relieved [totally or partially ] from payment of import duties and taxes 
[and trade policy measures], on the basis that  such goods are [destined to be exported 
once having been subjected to manufacturing, processing or repair]
29 [intended for 
manufacturing, processing or repair and [sub sequent exportation] [receiving a different 
customs regime]30]. 
(iii) For the purposes of this Article, the te rm "outward processing" means the Customs 
procedure [under which goods which are in free circulation in a Customs territory may be temporarily exported for manufacturing, processing or repair abroad and then re-
imported with total or partial exemption from import duties and taxes] [according to 
which goods which are in free circulation in a customs territory]. 
ARTICLE 11:  FREEDOM OF TRANSIT 
1. [Goods subject to the provisions on Freedom of  Transit of GATT 1994 and of this Agreement 
include those moved [via fixed infrastructure] [, inter alia  pipelines and electricity grids]. 
1bis For greater certainty, nothing in Article V of the GATT 1994 or this Agreement shall be 
construed to require a Member: 
 
(a) to build infrastructure of any kind in its  territory, or to permit the building of 
infrastructure by others, in order to facilitate the transit of goods; 
(b) [to provide access to any infrastructure for tran sit unless such infrastructure is open to 
general use by third parties. For the purpose of this Agreement, the term "general use 
by third parties" does not include access to  infrastructure granted on a contractual 
basis.]] 
2. [Each Member undertakes that if it establish es or maintains a State enterprise or if an 
enterprise has, formally or in effect, exclusive or  special privileges, such enterprise shall, in its 
regulations, formalities [fees] and charges – includi ng transportation charges –, on or in connection 
with traffic in transit, comply with the provisions on  traffic in transit of this Agreement [and otherwise 
act solely in accordance with commercial considerations.]]
 31 
3. [[Any charges, regulations or formalities take n in accordance with GATT Article V imposed 
on or affecting traffic in transit] [All charges, regul ations and formalities in co nnection with traffic in 
Transit]; 
                                                      
29 In the original Spanish the proposal is to add "destinadas a ser exportadas luego haber sido sometida 
a una...." after "ciertas mercancias" followed by "transfo rmación, elaboración o repara ción" (as currently in the 
text) but without the "y posterior exportación" at the end. 
30 "....recevoir ultérieurement en autre ré gime douanier" in the original French.  TN/TF/W/165/Rev.8 
 Page 23 
 
 
(a) shall not be more restrictive [on traffic in transit] than necessary [to fulfil a legitimate 
objective].  
(b) shall not be maintained if the circumstances or [policy] objectives giving rise to their 
adoption no longer exist or if the changed circumstances or objectives can be addressed 
in a less restrictive manner.  
(c) shall not be applied in a manner that would constitute a disguised restriction on transit 
traffic.  
(d) [Each Member shall notify the Committee on the objective and duration of such charge, 
regulation or formality on a regular basis.]] 
 
4.  [Members shall not apply discriminatory measur es to goods in transit, or to vessels or other 
means of transport of other Members, for reasons of any kind. This does not exclude the right to resort 
to the exceptions already laid down in WTO Agreem ents, for valid reasons and provided that the 
measure concerned does not constitute a dis guised restriction on international trade.] 
5. [With respect to all regulations and formaliti es imposed on or in connection with traffic in 
transit, including charges for transportation, traffi c regulations, safety regulations and environmental 
regulations, Members shall accord to traffic in tran sit treatment no less favourable than that accorded 
to [export or import traffic/domestic tr affic/traffic which is not in transit]. This principle refers to like 
products being transported on the same route under like conditions.] 
6. [Each Member shall accord to products which will be in trans it through the territory of any 
other Member treatment no less favourable than that  which would be accorded to such products if 
they were being transported from their place of orig in to their destination without going through the 
territory of such other Member.] 
7. [Members shall exempt traffic in transit from customs duties and from all transit duties and 
other charges imposed in respect of transit, except: 
(a) Reasonable charges for transportation (suc h as tolls, road charges and similar), having 
regard to the conditions of the traffic, or 
 (b)  [Transit charges commensurate with the ad ministrative expenses entailed by transit or 
with the cost of the service rendered.]  (c) Any transit charge shall: 
 
• Only be imposed for the administrative procedures entailed or transit services 
provided in connection with the transit movement in question; 
• Not exceed the approximate administrative expenses entailed or cost of the transit 
service rendered;  and 
• Not be calculated on ad valorem  basis.] 
 8. Members [are encouraged to][may] make ava ilable [physically separate infrastructure] (such 
as lanes, berths and similar) for traffic in tran sit at border crossings with heavy traffic. 
 9. [[Customs] Transit formalities, documentation requirements [except where transit crimes are detected] [and customs controls, including] [and cu stoms physical inspections], shall not be more 
burdensome than necessary to: 
 TN/TF/W/165/Rev.8 
Page 24  
 
 (a) identify the goods and (b)  ensure that transit requirements have been met] 
 
10. [Members shall not apply qualit y controls or controls of compliance with technical standards 
on goods in transit.] 
11. Members shall allow and provide for advan ce filing and processing of transit documentation 
and data prior to the arrival of goods. 
12. Once goods have been put under a transit pro cedure and have been authorized to proceed 
from the point of origination in a Member's territory, they will not be subject to further customs charges, formalities [or customs inspections] until they conclude their transit at the point of 
destination within the Member's territory. 
13. Once traffic in transit has reached the customs office where it exits the territory of the 
Member, that office shall promptly terminate the tr ansit operation if transit requirements have been 
met. 
14. [Members may require a guarantee which sha ll not exceed the full amount of the duties or 
charges which may be incurred.] [In exceptional circumstances such as penalties for non-compliance 
with laws and regulations once goods have left the point of or igination, a guarantee may be 
furnished.] 
15. [Once the Member has determined that its transit requirements have been satisfied, the 
guarantee shall be discharged without delay [,unl ess the guarantee covers multiple transactions.]] 
16. [Where a Member requires a guarantee for 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 [or made exit]].  
17. [Members shall not require the use of customs convoys for traffic in transit, except for goods 
presenting high risks. The goods subject to customs convoy requirements shall be included in Members laws or regulations  and shall be published.] 
18. Members shall endeavour to cooperate and coordina te with one another with a view to 
enhance freedom of transit. [Suc h cooperation and coordination may in clude, but is not limited to an 
understanding on: 
i) charges; 
ii) formalities and legal requirements; and 
iii) the practical operation of transit regimes.] 
19. Each Member shall [endeavour] to appoint a na tional transit coordinator to which all enquiries 
and proposals by other Members relating to th e good functioning of transit operations can be 
addressed. 
ARTICLE 12:  [CUSTOMS COOPERATION MECHANISM FOR TRADE FACILITATION 
AND COMPLIANCE][CUSTOMS COOPERATION] 
 1. 
Alt 1. [Members [shall] [endeavour] [in accordance with its domestic law] [may] [within the available 
resources] upon request, exchange information [and/or  documents] [on Customs matters] in identified 
cases of import, export [or transit], where there is reason to doubt the truth or accuracy of a  TN/TF/W/165/Rev.8 
 Page 25 
 
 
declaration submitted by the impor ter or exporter [or its agent]. 
 Alt 2.   [Where a Member  has reason to doubt the truth or accuracy of information provided by traders in 
support of the declared value of imported goods , and recognizing the importance of protecting 
commercially confidential information in safeguardi ng the commercial interests of traders, a Member 
may request assistance from the exporting Member on mutually agreed terms consistent with the 
requirements of this Article . 
The requested Member [should][shall][may] offer cooperation and assistance, consistent with its 
domestic law and procedures [within its available resources]: 
i) if the requested Member is satisfied with the verification referred to in paragraph 3; 
ii) If the requested Member is satisfied that th e required confidentiality of the information 
will be maintained; 
iii) If the requested Member has obtained the pr ior consent of the person furnishing the 
information, where there is such a require ment under its domestic laws and regulations; 
and 
iv) If the disclosure of the information is not ot herwise prohibited by the domestic laws and 
regulations of the requested Member.] 
2. The requesting Member shall ensure that a ll appropriate internal verification has been 
undertaken including, inter alia , verification of the importer/exporte r and inspection of the relevant 
documents before it requests assistance from another Member.   
3. The requesting Member shall provide the re quested Member with a written summary of the 
request, including:  
(a) The matter at issue and reasons for the request; 
(b) The specific information [a nd/or documents] requested; 
(c) The purposes for which the Member requires the information [and/or the documents]; 
(d) A confirmation that the Member had conducted the verification required by 
paragraph 3;  
(e) The identity [and the legal mandate] of the official making the request; 
(f) The names and addresses of the persons to w hom the request relates, if known; and 
[(g) The applicable legal provisions in the domestic law, including provisions relating to 
confidentiality, [of the requesting Member.] 
[(h) Members requesting information and data from other Members shall share the result of 
verification to the requested Members.] 
4. The requested Member [shall] [where prac ticable] [may] [in accordance with its domestic 
law]
31: 
(a) Provide information only to the extent  it is available in the import or export 
declaration(s) [within the available resources of its respective authorities] [and, if required, at 
least the details, viz. Exporter; Consignor; Ca rrier; Importer; Consignee; [Notify party]; 
Delivery destination;  Country(ies) of routing, to the extent known; Agent, if applicable; Tariff code number; Description of Goods; [ UNDG Number (Dangerous Goods Code), if 
applicable]; Type of packages identification; Quantity of goods/Number of packages; Total 
                                                     
 
31 May need fine tune.  TN/TF/W/165/Rev.8 
Page 26  
 
gross weight; [Equipment identification number, if containerized and available]; [Equipment size and type identification]; [Seal number, if  applicable and available]; [Total invoice 
amount]; and [Unique consignment reference number.]] 
[(b) [Subject to the provisions in Paragr aph 15] [If requested,] provide documents 
submitted in support of a goods declaration, such as commercial invoice, packing list, 
certificate of origin and bill of lading, in the form in which these are filed, whether paper or 
electronic;]   
[(c) Confirm that the documents provided ar e true copies of the documents submitted by 
the importer/exporter [and accepted by the requested Member];  and] 
(d) [Provide the information] [and/or docum ents] [respond to the request] [to the extent 
possible,] [within a period of 90 days] [within reasonable time] from the date of receipt of the 
request.] 
5. Such exchange of information [and/or docu ments] shall not require requested Members to: 
 
(a) Modify the format of their import or export declarations or their procedures; 
 
(b)  Call for documents other than tho se submitted with the goods declaration[s]; 
(c)  Initiate inquiries to obtain the information; (d) Modify the period of retention of such information [and/or documents];    (e) Introduce paper documentation where electr onic format has already been introduced; 
[(f) Provide any information for which disclos ure is not permissible under their domestic 
laws and regulations; or 
(g) Provide any information furnished by an y person pursuant to their domestic laws and 
regulations where such person has not given c onsent to the disclosure of the information, 
where there is such a requirement unde r its domestic laws and regulations.] 
[h) Translate the information [and/ or documents].] 
 
6. [The request for information [and/or documents ] shall be made available [in one of the three 
official languages of the WTO or] in a language  mutually acceptable to the requesting and the 
requested Member]. 
7. The requesting Member shall use the informa tion [and/or documents] solely for the purposes 
stated in the request, unless the requested Member agrees otherwi se in writing. [The requesting 
Member shall be subject to any restrictions im posed by the Member providing the information.] 
8. 
Alt 1.   
[Any information [and/or documents] exchanged shall be treated as strictly confidential and shall [not 
be disclosed to any third party except to the ex tent required in [administrative or] judicial 
proceedings] [be granted at least the same level of  protection provided under the laws and regulations 
of the requested Member]. Such information [and/or documents] shall not be [used in a 
criminal][disclosed to any third party except to the relevant law enforcement agencies of the 
requesting Member and shall not be used as ev idence in a judicial] proceeding unless specifically 
authorized by the requested Member.]  
Alt.2 
[Any information [and/or documents] exchanged on matters mentioned in para graph 1: Alt. 1 which 
are by nature confidential or which are provided on a confidential basis shall be treated as strictly 
confidential by the authorities concerned who sha ll not disclose it to any third party without the  TN/TF/W/165/Rev.8 
 Page 27 
 
 
specific permission of the government providing such information or documents, [except to the extent 
that it may be required to be disclosed in th e context of judicial proceedings.]] [Exchanged 
information shall not be used as evidence in judici al proceedings unless specifically authorized by the 
requested Member.  In case the government of a re questing Member is ordered to provide such  
information as evidence for a judicial proceeding by the court or intends to disclose it to any 3rd party 
the requesting Member must ask the requested Memb er for specific authorization through diplomatic 
channels.] [The requested Member shall consider  whether the confidentiality of the information 
required will be taken care of befo re providing such information.  The requested Member shall deny 
providing such information if its laws and regulati ons will be offended by providing the information.] ]  
 
Alt 3 .  
[(a) Where a Member requests information from the exporting Member respecting [the declared 
value of goods being imported], the requesting Me mber shall protect [commercially] confidential 
information.  For greater certainty, the protection of [commercially] confidential information means 
the treatment required by Article 10 of the Agre ement on Implementation of Article VII of the 
General Agreement on Tariffs and Trade, 1994. 
 (b) The requesting Member shall provide the info rmation only to its customs administration. In 
the case that the requesting Member is required by its domestic law to share the information with a 
governmental agency other than its customs admi nistration or in a judicial or quasi-judicial 
proceeding, the requesting Member shall [inform th e][get approval from][seek prior consent from] the 
requested Member.] 
 9. Each Member shall notify the Committee a cont act point for exchange of information [and/or 
documents].  
10. [The request for information [and/or documents] shall not be made later than [one year] [two 
years] [the time required by the national legislation of the requested Member]  after the importation or 
exportation of the goods.]  
11. Alt.1 [A Member shall not [make] [request] more than [X] [consignments for information] 
[requests for information [and/or documents] from another Member in a calendar year] [except for 
requests that are made in cases of highest relevance
32] [to both the requesting Member and the 
requested Member].  
Alt 2.  [A requested Member may postpone or  refuse providing more than [X] requests for 
information [and/or documents] from [another][the same] Member in a calendar year.  [Reasons for 
such a postponement or refusal shall immediatel y be communicated to the requesting Member.]] 
12. A requested Member shall respond in writing, whether paper or electronic means, to a request 
made pursuant to this [Article] [Agreement]. 
13. The requesting Member should inform the requ ested Member about the result of the exchange 
of information if there was a request from the latter to so provide. 
14. Notwithstanding what is contained in the preceding paragraphs, a requested Member may 
postpone or refuse providing information [and/or doc uments] if the provision of such information 
[and/or documents] would interfere with an ongoi ng administrative or judicial investigation, 
prosecution or proceeding.  [Reasons for such a postponement or refusal shall immediately be 
communicated to the Member making the request.] 
                                                      
32 "A excepción de que las solicitudes sean de casos de suma relevancia" in the original Spanish. TN/TF/W/165/Rev.8 
Page 28  
 
15. [In cases where the requested Member is of  the opinion that exchange of information under 
these provisions is prohibited by its laws and regul ations or would infringe  upon its sovereignty, 
security, public policy, or other s ubstantial interest, [or would violate a commercial, industrial or 
professional secret] the request may be refused or h as to be withheld, or may be subject to the 
satisfaction of certain cond itions or requirements.] 
16. [If a requesting Member does not treat information received from another Member in 
accordance with the requirements of this Agreemen t, the requested Member may refuse any further 
requests for assistance [from the requesting Memb er] pursuant to this [Agreement] [Article].] 
 17. [In the event of any breach of the conditions of use or disclosure of information exchanged 
under this Article, the requesting Member that r eceived the information shall promptly communicate 
the details of such unauthorized use or disclos ure to the requested Member that provided the 
information, and; 
(a) take the necessary measures to remedy, to the extent possible, the breach, 
(b) take all necessary measures, to the extent possible, to prevent any future unauthorised 
use  or disclosure of information exchanged under this Article, and; 
(c) [notify] the requested Member of  the above [mentioned] measures.] 
 
18. [If the requesting Member woul d be unable to comply with a similar request in case such a 
request was made by the requested Member, it shall st ate that fact in its request.  Execution of such a 
request shall be at the discretion of the requested Member.]  19. [A Member has a right to not cooperate with a non-cooperative Member.] 
 
20. Nothing in this proposal shall be construe d to prevent a Member from entering into or 
maintaining a bilateral or regiona l arrangement regarding sharing of customs information. [In the case 
of an inconsistency between a provision of such an agreement and this [Article], that agreement shall 
prevail to the extent of the inconsistency]. 
 
ARTICLE 13:  INSTITUTIONAL ARRANGEMENTS 
 
1.1 A Committee on Trade Facilitation is hereby established. 
1.2 The Committee shall be open for participation by all Members.  The Committee shall elect its 
own Chairman.   
1.3 The Committee shall meet as needed and envisaged by the relevant provisions of the 
Agreement, but no less than once a year, for the purpose of affording Members the opportunity to 
consult on any matters related to the operation of this  Agreement or the furtherance of its objectives.   
1.4 The Committee shall carry out such respons ibilities as assigned to it under this Agreement or 
by the Members.  
1.5 The Committee may set up such subsidiary bo dies as may be required.  All such bodies shall 
report to the Committee. 
1.6 The Committee shall maintain close contact with  other international organizations in the field 
of trade facilitation with the objective of securing th e best available advice for the administration of 
this agreement and in order to ensure that unnecessary duplication of effort is avoided.  
Representatives of such organizations may be in vited to meetings of the Committee and the 
Committee may, through appropriate channels, invite the relevant international organizations or their 
subsidiary bodies to examine specific matters rela ted to the administration of this agreement.  TN/TF/W/165/Rev.8 
 Page 29 
 
 
1.7 The Committee shall review the operation and implementation of this Agreement [X] years 
[from the entry into force of this agreement]. [D uring this period of review of the operation and 
implementation of [X] years, Members shall not resort to the provisions of the Dispute Settlement Understanding and only raise before the Committee  all questions and queries relating to issues 
relating to compliance with the obligations under th e agreement, including issues relating to technical 
assistance and capacity building, and all efforts should be undertaken to ensure  the use of good offices 
under the Committee's auspices during this period.] 
[1.8 The Committee shall have its own rules of procedures.] 
ARTICLE 14:  NATIONAL COMMITTEE ON TRADE FACILITATION 
 1.1 In order to facilitate the process of domestic coordination of trade facilitation needs, priorities 
and implementation [of the Agreement on Trade Fac ilitation], Members shall [establish] [and] [or] 
[maintain] a national committee [on trade facilitatio n] [or a similar] mechanism on trade facilitation 
[or designate an existing mechanism/body/Commit tee] [with the objective of assisting in the 
implementation of the Agreement on Trade Facilitation]. 
ARTICLE 15:  PREAMBLE/CROSS-CUTTING MATTERS 
[1.1 [Small [and vulnerable] [economies]] devel oping [and least developed] countries which are 
Members of a customs union or a regional economic  arrangement may adopt regional approaches to 
assist in the implementation of their obligations under the Trade Facilitation Agreement including 
through the establishment and use of regional bodies.] 
[1.2 Recognizing that a Member may have to a ddress cases where it has reason to doubt the truth 
or accuracy of information provided by traders in support of the declared value of imported goods; 
1.3 Recognizing the importance of protecting commercially confidential information in 
safeguarding the commercial interests of traders
33;] 
Cross-Cutting Issues 
(a) Relationship to other WTO Agreements 
(b) Institutional Provisions and Dispute Settlement 
(c) Final Provisions 
(d) Implementation Schedules 
[Exceptions 
 
The provisions of Articles XX and XXI of GATT 1994 apply to the provisions of this Agreement. ] 
 [Dispute Settlement  
The provisions of Articles XXII and XXIII of GATT  1994 as elaborated and applied by the Dispute 
Settlement Understanding shall a pply to consultations and the se ttlement of disputes under this 
Agreement, except as otherwise specifica lly provided for in this Agreement. ] 
 
                                                     
 
33 This language stems from a proposal on customs cooperation that was originally tabled by Canada. TN/TF/W/165/Rev.8 
Page 30  
 
SECTION II 
SPECIAL AND DIFFERENTIAL TREATMENT PROVISIONS FOR DEVELOPING 
COUNTRY MEMBERS AND LEAST DEVELOPED COUNTRY MEMBERS 
1. [General provisions and basic principles] 
1.1 The provisions
34 contained in [Section I][Articles X-Y] of this Agreement shall be 
implemented by developing and least developed country Members in accordance with this section 
[which fully takes into account the principle of sp ecial and differential treatment] [in accordance with 
the modalities agreed in Annex D of the July  2004 Framework Agreement and the Hong Kong 
Ministerial Declaration.]  
1.2  [Members recognize that the principle of sp ecial and differential treatment for developing and 
least developed country Members should extend be yond the granting of traditional transition periods 
for implementing commitments.  In particular, the extent and the timing of entering into commitments 
shall be related to the implementation capacities of developing and least deve loped country Members, 
who would not be obliged to undertake investme nts in infrastructure projects beyond their means. 
 
1.3  Least developed country Members will only be required to undertake  commitments to the 
extent consistent with their indi vidual development, financial and trade needs or their administrative 
and institutional capabilities.]  1.4 [Developed country Members shall ensure to  provide support and assistance to developing 
and least developed country Members in a comprehe nsive manner [and on a long term and sustainable 
basis, backed by secure funding], in order to allow implementation. Members agree that in cases 
where the required support and assistance is not forthcoming from developed country Members and 
other donors, and where a developing or least-d eveloped country Member continues to lack the 
necessary capacity, implementation will not be required.] 
 
1.5   [While every effort shall be made to ensure the necessary support and assistance, it is 
understood that the commitments by developed co untry Members to provide such support are not 
open ended.]  
[2. Definitions of Categories of Commitments 
2.1  Category A commitments are provisions that a developing country Member and a least 
developed country Member shall implement [and notified] upon entry into force of this Agreement 
[including all provisions that a developing country  and a least developed country Member already 
implements [autonomously]].  
2.2  Category B commitments are provisions th at a developing country Member and a least 
developed country Member shall implement after a tr ansitional period of time following the entry into 
force of this Agreement.  2.3 Category C commitments are provisions that  a developing country Member and a least 
developed country Member shall implement after a tr ansitional period of time following the entry into 
force of this Agreement and [upon the acquisition of implementation capacity][through the provision 
of technical [and/or financial] assistance and support for capacity building.]  
                                                     
 
34 The term “provision” means provision or a sub-part of a provision.  TN/TF/W/165/Rev.8 
 Page 31 
 
 
2.4  Developing country and least  developed country Members sha ll determine, on an individual 
basis, the provisions to be included under Categories A, B and C.35] 
 
3.  [Notification of Provisions under Category A] 
3.1  Alt.1 [Developing country Members shall notify the Secretariat the provisions under Category A 
at the time of the signature of the Agreement or, at the latest, by the time of entry into force of this 
Agreement.] 
Alt. 2  [Upon entry into force of this Agreemen t, each developing country Member [and each least 
developed country Member] shall implement the provi sions it has designated in Schedule A. Each 
Member's Schedule A is hereby made an  integral part of this Agreement.] 
[3.2 Notwithstanding paragraph 2.1 a least developed country Member shall notify the Committee 
the provisions under Category A at entry into force of  this Agreement or, at the latest, by [X] time 
after the entry into force of this Agreement.] 
 
4.  [Notification of Provisions under Category B] [Establishing Implementation Periods]  
4.1 [With respect to those provisions that it has not designated in Schedule A, a developing 
country Member [or least developed country Memb er] may delay implementation of such provisions 
in accordance with the process set forth in this paragraph.]  
No later than [90][180][365] days after entry into force of this Agreement, each developing country 
Member [or least developed country Member] shall notify to the Committee [alt 2: in Schedule B/C] the provisional dates for implementation of all pr ovisions [alt.1: it is designating under Category B] 
[alt.2: that the Member did not designate in its Schedule A]. 
No later than [x][300] days after [alt.1: notificati on referred to in the paragraph above] [alt.2: entry 
into force of the Agreement], each developing c ountry Member [or least developed country Member] 
shall notify to the Committee [alt 2: in final Schedul e B/C] the definitive period for implementation of 
all provisions [alt.1: it is designating under Category B] [alt.2: that the Member did not designate in 
its Schedule A]. 
[4.2 (a)  If a Member does not notify a time period for a provision in final Schedule B/C, the Member 
shall implement that provision within [one year ] after entry into force of this Agreement. 
(b) Notifications submitted in draft and final Schedule B/C may also include such further 
information as the notifying Member deems appr opriate. Members are encouraged to provide 
information on the domestic agency/entity responsib le for implementation and, for those provisions 
for which a Member considers that technical assist ance and capacity building is required, the donor 
agency with which the Member has an  agreement to provide assistance.  
 (c) Members experiencing difficulties in submitting indicative and definitive time periods [under subparagraphs 4.1(a) and (b)] within the deadlines set forth therein because of the lack of a donor 
should notify the Committee of those difficulties as ea rly as possible prior to the expiration of those 
deadlines.  Members agree to coope rate to assist in addressing such difficulties, taking into account 
the particular circumstances and special problem s facing the Member concerned.  The Committee 
may take appropriate action to address the diffi culties, including, where necessary, extending the 
deadlines [under subparagraphs 4.1(a) or  (b)] for the Member concerned.   
 
                                                     
 
35 It is yet to be determined where this paragraph will appear in Section II  TN/TF/W/165/Rev.8 
Page 32  
 
(d)  [One year] after entry into force of this Agreement, and then 60 days after an extended 
deadline established [above], the Committee shall meet  to ratify each Member's final Schedule B/C. 
Upon ratification, each Member's Schedule B/C will become an integral part of this Agreement.] 
 [4.3  A least developed country Member shall notify the Committee the provisions under Category 
B 365 days after the entry into force of this Ag reement, taking into account maximum flexibilities for 
least developed country Members, and, particular ly, the possibility to shift commitments from one 
category to another. 
A least developed country shall notify the Comm ittee the implementation plans, for provisions 
notified under Category B, taki ng into account maximum flexibilities for least developed country 
Members, and, particularly, the possibility to sh ift commitments from one category to another. ] 
 
5.  [Notification of Provisions under Category C]  
5.1 Alt 1. 
[Developing country Members shall notify the Co mmittee the provisions under Category C no later 
than [90][180][365] days after the entry into fo rce of this Agreement including a listing of the 
provisions under Category C in terms of priorities fo r technical [and financial] assistance and capacity 
building.]  Alt.2:   {Already addressed in 4.1.  Alt.2 version of 4.1 reproduced here for ease of reference.} 
[No later than [90][365] days after entry into force of this Agreement, each developing country 
Member [or least developed country Member] sh all notify to the Committee in Schedule B/C the 
provisional dates for implementation of all provisions that the Member  did not designate in its 
Schedule A]. 
[No later than [x][300] days after  entry into force of the Agreement, each developing country 
Member [or least developed country Member] shall notify to the Committee in final Schedule B/C the 
definitive period for implementation of all provisions that the Member did not designate in its Schedule A]. 
{See also 4.2} 5.2 [Least Developed Country Members sh all notify the Committee the provisions under 
Category C no later than 365 days after th e entry into force of this Agreement.] 
 
5.3  [Any implementation of provisions notif ied under Category C by developing and least 
developed country Members is c onditional on the provision of adequa te and effective technical [and 
financial] assistance and capacity building measu res by developed-country Members and other donors 
[with a view to] [as well as] the acquisition of implementation capacity by developing and least 
developed country Members.] 
 
[5bis  Notification of Implementation Pl ans for Provisions Notified under Category C] 
[5.1  [No later than [90][120][180] days after th e notification of Category C provisions referred to 
in paragraph 5.2, Developing Country Members shall notify to the Committee the implementation 
plan for provisions under Category C [after an agr eement with a donor has been reached to assist in 
the implementation of the provision concerned.]   
 5.2  The implementation shall include, inter alia ,  
 [(a)  the technical [and financial] assistance and support for capacity building required for the 
implementation [the acquisition of implementation capacity] in respect of each provision;]  TN/TF/W/165/Rev.8 
 Page 33 
 
 
(b) [the [provisional] period of implementation for each provision] [in cases where the assistance by a donor has not yet been agreed for some provi sions the implementation plan shall include, as a 
minimum, the provisional period for implementation;] 
(c) The national authority responsible for implementation; (d) Donor, if any. 
5.3  [For the provisions that at the time of the s ubmission of the implementation plan as referred to 
in the paragraph above did not include the donor, Me mbers shall update the implementation plan with 
information regarding the donor committed to assist in the implementation of a provision and the definitive period for implementation.]  
5.4 Least developed country Members shall no tify the Committee the implementation plan for 
provisions notified under Category C after they ha ve received adequate and effective technical 
assistance [and financial support][and/or in respect of which they have acquired the capacity to 
implement.]  6. [Use of the Early Warning Mechanism][Ext ension for the Implementation Period of 
Provisions under Categories B and C] 
6.1 a)  A developing country Member or least deve loped country Member that considers itself to be 
experiencing difficulty in implementing a provision by  the date set forth in [its Schedule B/C]  
[Category B and C] may, no later than [X] days befo re the date [notified under B and C] [scheduled], 
[request an extension and] notify the Committee that  it considers that it will be unable to implement 
the provision by the applicable date. 
 b)  The notification to the Committee shall i ndicate the new date by which the developing 
country or least developed country Member expects to  be able to implement the provision concerned.  
The notification shall also indicate the reasons fo r the expected delay in implementation.  Such 
reasons may include the need for assistance where not earlier anticipated.  
 [6.2 Alt.1 Where the additional time required for implementation does not exceed [365] days, the developing country or least devel oped country Member is entitled to such additional time without any 
further action by the Committee. If the additiona l time required for implementation exceeds [365] 
days, the developing country or least developed c ountry Member shall request the Committee to grant 
an extension.]  
 Alt.2   [The additional time should not exceed the time initia lly notified for the relevant provision set forth 
[under paragraph X] [in the List.]] 
 
6.3 Where a developing country or least develope d country Member considers that it requires an 
extension [of the implementation period][of the time  required to implement a provision notified under 
Category B and [or] Category C] for a second,  [or any subsequent time,] the developing  country or 
least developed country Member shall submit a request for an extension and a corresponding 
notification containing the information described in 6.1 [prior to][no later than [x] days before] the 
expiration of the implementation period, as pr eviously extended pursuant to [paragraph 
2][paragraph 4].  6.4 The Committee shall give sympathetic consideration to requests for extension [and may decide to grant an extension] taking into account the specific circumstances of the Member submitting 
the request. These circumstances may include diffi culties and delays in obtaining assistance. 
 TN/TF/W/165/Rev.8 
Page 34  
 
[6bis.  Shifting from Category B to C, or from C to B 
[6.1  Developing Country Members and least de veloped country Members who have notified 
provisions under Category B and C may shift commitments from one Category to another. 
 6.2 A developing country member or least devel oped country member may invoke the application 
of the [Early Warning Mechanism] [provisions of Article 6] to shift a provision from Category B to C 
or vice versa through the submission of a notification to the Committee. ] 
[Alt. to both 6.1 and 6.2: Under exceptional circ umstances, Developing Country Members and Least 
Developed Country Members who ha ve notified or re-notified to the Committee the provisions under 
Category B and C may shift commitments from one cat egory to another through the submission of a 
notification to the Committee.] 
6.3 [Where a Member proposes to move a provision from Category B to Category C [and requires additional time], a request shall be made to the Committee. The request shall contain information on 
the technical assistance capacity building and fina ncial needs required as well as the implementation 
plan.  
[Where a Member proposes to move a provision fro m one Category to another and does not require 
additional time, the Member shall subm it a notification to the Committee.]] 
 
7. Grace Period for the Application of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes 
7.1  For a period of [2] years after entry into fo rce of this Agreement, the provisions of Articles 
XXII and XXIII of GATT 1994 as elaborated and applied by the Understanding on Rules and 
Procedures Governing the Settlement of Disputes sha ll not [be applied] [apply to the settlement of 
disputes] against a Developing Country [or l east developed country] Member concerning any 
provision under Category A of that Member.  
[7.2  For a period of [2] years after implementa tion of a provision under Category B and C by the 
developing country [or least developed country] Member, the provisions of Articles XXII and XXIII 
of GATT 1994 as elaborated and applied by the U nderstanding on Rules and Procedures Governing 
the Settlement of Disputes shall not [be applied] [apply to the settlement of disputes] against that 
Developing Country [or least developed country] Member concerning those provisions.] 
 
[7.3  Each Member shall nevertheless provide ade quate opportunity for consultation with respect to 
any issue relating to the implementation of this Agreement.]
36 
 [7.4  The Committee shall encourage and facilitate  ad hoc consultations or negotiations among 
Members on specific issues relating to trade facilitation, with a view to reaching a mutually 
satisfactory solution promptly.]
37 
 [ 7.5  Nothing in this Agreement shall affect the right of Members to take action under Articles 
XXIII of GATT 1994 and the Understanding on Rules and Procedures Governing the Settlement of 
Disputes against another Member for provisions co ntained in other WTO-Agreements, including for 
GATT Articles V, VIII and X. ]
38 
 
[7.6 For a period of [Y] years after entry into force of this Agreement, the provisions of Articles XXII 
and XXIII of GATT 1994 as elaborated and applied by the Understanding on Rules and Procedures 
Governing the Settlement of Disputes shall not [be applied] [apply to the settlement of disputes] 
                                                      
36 This paragraph could be moved to another location in the Agreement. 
37 This paragraph could be moved to another location in the Agreement. 
38 This paragraph could be moved to another location in the Agreement.  TN/TF/W/165/Rev.8 
 Page 35 
 
 
against a Least Developed Country Member conc erning any provision unde r Category A of that 
Member. ] 
 [7.7 For a period of [Y] years after implementation of a provision under Category B and C by a Least 
Developed Country Member, the provisions of Articles XXII and XXIII of GATT 1994 as elaborated 
and applied by the Understanding on Rules and Pr ocedures Governing the Settlement of Disputes 
shall not [be applied] [apply to the settlement of  disputes] against that Least Developed Country 
Member concerning those provisions. ] 
 [7.8  [Notwithstanding the grace period for the Application of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes] Be fore making a request for consultations pursuant 
to Articles XXII or XXIII, and at all stages of dis pute settlement procedures with regard to a measure 
of a least developed country Member, a Member sha ll give particular consideration to the special 
situation of least developed country Members.  In th is regard,  Members shall exercise due restraint in 
raising matters under the Understanding on Rul es and Procedures Governing the Settlement of 
Disputes involving least-developed country Members. ] 
[8. [Information on] Implementation of Provisions listed under Categories B and C 
Alt.1 
[A Member's commitment under category B and C sha ll be binding from the expiry of the time period 
notified for implementation, including any extended time period under the early warning mechanism.] 
 
Alt.2 
[Upon the end of the implementation period of a provision under Categories B and C, a developing 
country Member or a least developed country Memb er shall notify the Committee that the provisions 
have been implemented.] ] 
 9. Provision of Technical Assistance [, fi nancial assistance] and Capacity Building 
[9.1  The provision of technical assistance [,  financial assistance] and capacity building by 
developed country Members and relevant international organi zations and other agencies of 
cooperation, including the IMF, OECD, UNCTAD, WCO and the World Bank, is a precondition for 
the acquisition of implementation capacity by de veloping country and least-developed country 
Members in respect of provisions requiring assistance.] 
 
[9.2 In cases where technical assistance and capacity  building is not provided or lacks the requisite 
effectiveness, developing country and least-dev eloped country Members are not bound to implement 
the provisions notified under Category C.]
39 
 
9.3 [Developed country Members and developing country Members in a position to do so] 
[Members] agree to facilitate the provision of techni cal assistance [, financial assistance] and capacity 
building to developing country and least-developed country Members, on mutually agreed terms and 
either bilaterally or through the appropriate in ternational organizations. The objective of such 
assistance is to assist developing country and least -developed country Members to comply with the 
Agreement's commitments. 
 
9.4 In line with the Paris Declaration on Aid E ffectiveness and the Accra Agenda for Action, 
Members shall endeavour to apply the following principles for providing technical assistance and 
capacity building with regard to the implementation of this Agreement:  
                                                     
 
39 Paragraphs 9.2 and 5.3 might address the same issue.  TN/TF/W/165/Rev.8 
Page 36  
 
(a) Take account of the overall developmenta l framework of recipient countries and 
regions and, where relevant and appropri ate, ongoing reform and technical assistance 
programs; 
(b) Include, where relevant and appropriate , activities to address regional and sub-
regional challenges and promote regi onal and sub-regional integration; 
(c) Ensure that ongoing trade facilitation reform activities of the private sector are 
factored into assistance activities; 
(d) Promote coordination between and among Me mbers and other relevant institutions, 
including regional economic communities, to  ensure maximum effectiveness of and 
results from this assistance.  To this end: 
(i) Coordination, primarily in the country or region where the assistance is to be 
provided, between partner Members and don ors, and among bilate ral and multilateral 
donors, should aim to avoid overlap and duplication in assistance programs, and 
inconsistencies in reform activities through cl ose coordination of technical assistance 
and capacity building interventions; 
(ii) For least-developed country Members, the Enhanced Integrated Framework 
should be a part of this coordination process; and 
(iii) Members should also promote internal coordination between their trade and 
development officials, both in capitals and Geneva, in the implementation of the 
Agreement and technical assistance. 
(e) Encourage use of existing in-country and regional coordination structures such as 
round tables and consultative groups to c oordinate and monitor implementation 
activities; and 
(f) Encourage developing countries to provide capacity building to other developing and 
least-developed countries and consider supporting such activities, where possible. 
9.5  [The Committee shall provide for a specific agenda item to discuss technical assistance and 
capacity building including inter alia :] [A Technical Assistance Unit linked to the Committee shall, 
inter alia,  provide a framework for:] 
[(a) receiving requests from developing and least-developed country Members;] 
(b) Discussion on any problems regarding implemen tation of provisions or subsidies-parts of 
provisions; 
(c) Review of progress in the provision of tec hnical assistance and capacity building including 
any developing or least deve loped country members not receiving adequate technical 
assistance and capacity building; 
(d) Sharing experiences and information on ongoing assistance and implementation programs, 
including challenges and successes.  
  TN/TF/W/165/Rev.8 
 Page 37 
 
 
10. Information on Assistance to be submitted to the Committee 
10.1  [Developed-country Members] [A Memb er] [assisting developing country and least 
developed country Members with implementation of this Agreemen t] shall submit to the Committee 
an annual report on the technical and financial assistance and capacity building measures provided to 
these developing country and least developed country Members. The report shall include a brief 
description of the assistance, status and amount committed/disbursed.40 
[Developing country Members [in a position to do so ] should submit to the Committee information on  
the technical and financial assistance and capacity building measures provided to other developing 
country and least developed country Members to help support implementation of this Agreement.] 
10.2  [Developed country] Members assisting deve loping country and least developed country 
Members shall submit to the Committee: 
(a)  Contact points of their agencies responsible for providing technical and financial 
assistance and support for capacity building relate d to the implementation of this Agreement, 
including where practicable, information on such  contact points within the country or region 
where the assistance is to be provided; 
(b) Information on the process and mechanisms for requesting assistance. 
[Developing country Members in a position to prov ide assistance shall submit the information above.] 
10.3  Developing country and least developed c ountry Members intending to avail themselves of 
trade facilitation-related assistance shall submit to the Committee information on contact point(s) of 
the office(s) responsible for coordina ting and prioritizing such assistance. 
10.4  Members may provide the information in paragraphs 10. 2 and 10.3 through internet 
references and shall update the submitted informatio n as necessary.  The Secretariat shall make all 
such information publicly available. 
10.5  The Committee shall invite relevant intern ational and regional orga nizations (such as the 
IMF, OECD, UNCTAD, WCO, UN Regional Commiss ions, the World Bank or their subsidiary 
bodies, and regional development ba nks) and other agencies of coope ration to provide information 
referred to in paragra phs 10.1, 10.2 and 10.4. 
 
Annex [1]: Format for Schedule B/C 
 
 
Provision/Sub-part of Provision  
Time Period  
Assistance Required and Other 
Information 
   
 
__________ 
 
                                                      
40 In the case of OECD Members the report can be  based on relevant information from the OECD 
Creditor Reporting System.