RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/TF/M/9 
19 October 2005 
 (05-4786) 
Negotiating Group on Trade Facilitation  
  
 
 
SUMMARY MINUTES OF THE MEETING 
 
Held in the Centre William Rappard
 
on 5-6 October 2005  
 
Chairman:  Mr. Muhamad Noor Yacob (Malaysia) 
  
1. The Chairman
 set out the main purpose of the meeting, explaining that it aimed at 
(i) discussing new submissions and input previously  received and (ii) re-visiting the overall body of 
contributions with a view to identifying key elem ents on the basis of the Secretariat's compilation 
(TN/TF/W/43/Rev.3).  Furthermore, Members would be invited to admit re levant international 
organizations, including the IMF, OECD, UNCTAD,  WCO and the World Bank, to attend the next 
meeting of the Group on an ad hoc basis.  As at th e last meeting, the inte ntion was to commence the 
meeting in formal mode to register new submis sions and make other comments Members may wish 
for the record and have the remaining part of the session take place in informal mode.  
2. In addressing the issues at stake, Members should pay particular attenti on to the question of 
technical assistance and capacity building (TA&CB).  More progress was required in that area.    
3. The agenda was adopted .  
4. The representative of Japan  wondered whether the World Bank could brief the Group on the 
outcome of the Development Committee Meeting held  by the World Bank and the IMF at the end of 
September in Washington D.C.   
5. The representative of the World Bank  suggested to postpone the brief until after the next 
meeting when there would be more substantive comments to make.   
6. The representative of Japan  wished to inform the NG about the outcome of the Senior 
Officials Meeting hosted by Japan on 29-30 September.   The focus of the meeting had been on how to 
best proceed with the negotiations on Agricultu re, NAMA, Services and Trade Facilitation, with 
positive discussions taking place in each area.  
7. With respect to Trade Facilitation, participants had been of the view that the discussions had 
been going relatively well compar ed to those on other areas, which had been welcomed by most 
representatives.  Some countries had pointed out that  the NG should now be prepared for text-based 
negotiations and should seek guidance from Minister s on how to move forward.  As far as TA&CB 
was concerned, the feeling had been that more conc rete discussions were re quired.  Donor countries 
should make clear what kind of assistance could be given.  At the same time, the needs and priorities of recipient countries should also be made more cl ear in order to advance with the discussions on 
those matters.  More concrete discussions we re needed to make the Hong Kong Ministerial 
Conference more successful in that area, and mo re guidance was needed from Ministers on how to 
best advance the negotiations.   TN/TF/M/9 
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 8. The representative of Norway
 introduced a follow-up paper (TN/TF/W/67) on a previous 
proposal by New Zealand, Norway and Switzer land (TN/TF/W/36) on the simplification and 
standardization of trade documents.  
9. The aim of the original proposal had been to id entify the need for a standardized format for 
documents accompanying shipments and for a reducti on in the number of documents required.  The 
intention was to clarify and improve GATT Article VIII in order to make it more operational.  The 
starting point had been that application of inte rnational standards in trade documentation would 
greatly benefit all countries, pa rticularly developing countries and SMEs.  The question had been 
what could help those standards proliferate.   
10. The proposal suggested agreeing on the use of standardized document formats for export, 
import and transit of goods, available in several langua ges, to ease the work of  traders and customs.  
To maximize the benefits of standardization of do cuments, the use of standard data elements in 
documents should be discussed.  The proposal put fo rward the idea of a "bank standard document" 
that could be accessed by anyone in the language needed.   
11. Many proposals had been submitted on the st andardization of documents both under 
Article VIII and Article V, which all shared the co mmon feature of Members having to commit to the 
use of standardized elements.  The new New Zeal and-Norway-Switzerland submission showed that a 
large number of developing countries already had adopted standardized documentation requirements 
through recent customs reforms.  For example,  over 115 countries had doc umentation requirements 
aligned with the UN Layout Key.  The paper indicated  four alternative options for how the issue could 
be regulated in a future text.  It was not prop osed that the WTO devel op standard documents or 
standard data elements.  That shoul d be left to organizations best suited to carry out such a job.   
12. The representative of New Zealand  said that the paper identified the common thread running 
through a number of proposals on the clarification a nd improvement to Article VIII of there being 
benefit in committing to the use of standardized documentation requirements for import, export and 
transit formalities.   
13. The paper sought to address an issue at the h eart of the trade facilitation (TF) negotiations, 
relating to the improvement of Article VIII, 1(c) of the GATT.  The use of documents was a necessary 
step in the trading system.  It was in every Member 's interest to ensure that such documentation data 
was not duplicated and that data requirements were kept to the minimum, while at the same time 
ensuring that the transparency and predictability of standards of the global trading system were 
preserved.  
14. The proposal was of particular relevance to sm all economies with a large number of small- 
and medium-sized enterprises (SMEs).  In New Zealand, SMEs had ranked complex customs formalities as the second biggest barrier to trade.  The aim of the paper was to present alternative 
ways to achieve the objective of simplifying border  formalities for traders and ensuring that all 
Members used standardized documents or data el ements.  The options presented all focused on using 
existing documentation standards and models that  had been developed by relevant expert 
organizations such as the WCO and the UN, including the UN Layout Key.  The key part of the paper was paragraph 6 which set out options and ideas fo r how to tackle the issue.  They were not 
necessarily intended to be rigid alternativ es but could be combined or merged.   
15. The representative of Switzerland
 said that the simplification and harmonization of trade 
documents were most frequently quoted by Swi ss business as issues they wished to see improved 
through the negotiations.    TN/TF/M/9 
 Page 3 
 
 
 16. The UN Layout Key was the leading standard doc ument and served as the basis for the most 
widespread standardized trade documents.  It was a rationalized means for preparing documents 
where information was provided only once for a full set of export documents.  Originally designed as 
a paper document when adopted in 1963, it was now also used by information systems for converting 
data records to printed output or for data entry.  It  was a logical set of data and suitable for both data 
processing and for traditional methods and theref ore was recommended as a common basis for the 
presentation of documents for international trade.   
17. The twin to the UN Layout Key was the UN EDIFACT (UN Electronic Data Interchange for 
Administration, Commerce and Transport) as the inte rnational standard for EDI and the backbone of 
electronic commerce.  It provided the essential rules fo r data exchange, particul arly when data had to 
be processed by more than one organization.  It was a neutral tool to harmonize data across national 
sectoral and organizational frontiers  and was independent of any hard ware and software choices.   
18. UN CEFACT (UN Centre for Facilitation of Pr ocedures and Practices for Administration, 
Commerce and Transport), was promoting and deve loping those instruments.  It was open to 
participation from UN Member States, intergover nmental organizations a nd sectoral and industry 
associations recognized by the UN ECOSOC.  The ad equacy and legitimacy of the recommendations 
by UN CEFACT for business was due to the fact that  much of the work was carried out by private 
sector technical experts.  It was an excellent example of cooperation between private business and 
public organizations.   
19. The representative of Hong Kong, China  (HKC) welcomed the follow-up paper from 
New Zealand, Norway and Switzerland on simplifi cation, reduction and st andardization of trade 
documents.  The paper set out alternative options to facilitate Members' deliberations on how to 
approach the issue, covering (i) reference to releva nt international organiza tions that had developed 
standardized documents, such as the WCO and UNC TAD;  (ii) an obligation to use documents 
aligned with the UN Layout Key;  (iii) referenc e to a bank of standard documents developed by 
relevant  international organizations which Member s must draw upon;  and (iv) a list of standard 
documents that must be used.   
20. HKC generally welcomed the standardization of data and documentary requirements across 
all WTO Members as a trade facilitation measure.  Inte rnational standards for data elements and data 
requirements should be adopted by individual Members as far as possible.  While, in principle, supportive of the idea, HKC would like to know more about how it could be implemented.  Clarification was sought on questions such as how to  come up with a list or a bank of standard 
documents agreeable to all Members.   
21. The representative of the European Communities
 considered the New Zealand-Norway-
Switzerland paper to be very useful.  The EC st rongly supported the idea of standardized documents 
and data elements which was clear ly of use to traders and governments because it could facilitate 
cooperation between governments.    
22. The paper contained good ideas on how to get th ere, with paragraph 6 being particularly 
interesting.  It set out a number of alternative op tions which were not mutually exclusive but could be 
combined.  In addition to the international standa rds mentioned, such as the UN Layout Key and the 
UN EDIFACT, the EC also wished to  look at some more specific international standards, such as the 
WCO Data Model, which was very relevant in that context.   
23. Any commitments on the use of internationa l standards should contain an element of 
flexibility.  In some cases, a transition period would be needed if the use of  a specific international 
standard was agreed.  There could also be cases of  an international standard not being suitable for a 
particular country due to it being ineffective or inappropriate.   TN/TF/M/9 
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 24. The document was also very useful regarding ma ny other elements of the negotiating mandate 
with regard to trade formalities and procedures and th e use of international standards.  Many lessons 
could be drawn from the paper in taking forward the discussion.   
25. The representative of Australia
 generally supported the initiative which was an essential part 
of the streamlined trade facilitation regime.  The standardization of information requirements was a 
very desirable ambition.  It was useful to note  the significant work done  by the WCO such as the 
WCO Data Model or the Revised Kyoto Convention as important instruments for the simplification of 
procedures and standardization of the reporting of cargo at the border, thereby providing a boost for 
international commerce.   
26. Australia had legislation in place regardi ng the reporting of cargo which mandated the 
electronic reporting of export, import and transhippe d goods to customs.  Australia used international 
standard data elements and intern ational standard message formats for that purpose.  It was important 
to note that initiatives in this area should recognize that electronic systems were required, creating the need for standardized data requirements rather than  the actual layout of physical documentation.  In 
that regard, Australian Customs was working towards a standardized data set, linking requirements of 
all border agencies, putting in place a kind of Single Window to the Australian Government for 
reporting of international trade consignments.   
27. It was worth noting that the lack of electroni c documents within the industry represented an 
impediment to the development of such initiatives.  In that regard, interesting work was being carried 
out by the International Air Transport Association (IATA) on producing an electronic airway bill.  A 
conference would be held Geneva in early November between airlines and other interested parties on 
working towards an electronic airway bill.  In a r ecent document, IATA had noted that every year, air 
cargo required 40 jumbo jets full of paper for customs clearance purposes.  To streamline the process, it was necessary to note the work required by both industry and governments.   
28. It was useful to note the work being done by  UN CEFACT and UN EDIFACT.  Work on new 
technologies, specifically web technologies, was of pa rticular interest and re levance to developing and 
least-developed economies.  It was not necessary to  invest in existing technologies such as UN 
EDIFACT.  Rather, they could leapfrog that step a nd use those standardized data elements, using web 
technologies.  The paper noted the work of or ganizations such as the WCO, UN and UNCTAD.  
ASYCUDA, for instance, was currently  used in 80 customs administrations.  It was useful to note the 
prevalence of that system and to look at the li nkages between ASYCUDA and the work proposed in 
the document.   
29. The representative of the Philippines
 said that the contribution from New Zealand, Norway 
and Switzerland gave Members ideas on how one could proceed with improving Article VIII, 
paragraph 1(c).  It was interesting to hear that over 115 countries had already documentation 
requirements aligned with the UN Layout Key and th at there were many which also had National 
Associations affiliated to the Inte rnational Federation of Freight Fo rwarders Association (FIATA).  
The paper also recognized that other developing countries would need technical assistance and that 
they could provide technical assistance for those countries not yet in the system.   
30. Paragraph 6 was a good option that Members should carefully look into.  There should be an 
element of flexibility.  The point mentioned in pa ragraph 9 about not reinventing the wheel but using 
what had already been developed by other orga nizations was important to keep in mind when 
proceeding with detailed discussion of the proposal.   
  TN/TF/M/9 
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 31. The representative of Brazil  considered the New Zealand-Norway-Switzerland proposal to be 
a major step forward in trade facilitation measures.  The use of standardized documentation and data 
would have benefits not only in allowing for a mo re streamlined transit of goods but also on helping 
to prevent fraud.   
32. Brazil agreed that there would be need for flex ibility with respect to the measure proposed in 
paragraph 6.  Many countries, including developing  ones, already used standardized documentation.  
With respect to the implementation of the proposal , there might be need for appropriate time frames 
and technical assistance as some developing countr ies were quite advanced in that regard, while 
others were not.  One should not re-invent the wheel  nor duplicate work.  It was quite appropriate to 
use what was developed and being developed by other international organizations.    
33. The representative of India  recognized that standardizing and simplifying documents was one 
of the key elements to improve the movements of goods across borders and that the best way of doing 
that was to adopt international standards.  To that  extent, India was very much in agreement with the 
general trust of the proposal.  However, India also  recognized that the paper was a preliminary one 
which required further work.   
34. Paragraph 6 was perhaps the most important aspect  to focus on.  India had already mentioned 
its preference for clarity regarding the internationa l standards on which obligations would need to be 
taken. With respect to the listed relevant interna tional organizations involved in standard making, 
additional names could be added, such as IM O and FAL.  The landscape of international 
organizations developing standa rdized documents was huge and had to be recognized.  While 
recognizing that the adoption of international standa rds was the right path to trade facilitation, much 
more work had to be done to have clarity on wh ich international organiza tions and which standards 
would be subject to commitments.  It was important  that Members understood the actual details as to 
what standardized documents one was talking about to  be able to see which of them could usefully be 
brought into the discussion.  Indi a supported the EC's observation that, when discussing the adoption 
of international standards, flexibility would be re quired to account for individual peculiarities and 
concerns of Members.   
35. Clarification was sought on whether there was a link between the first and the fourth bullet.  
On the second bullet, suggesting an  obligation to use documents aligned to the UN Layout Key, it was 
necessary to elaborate and precisely set out those docu ments.  The reference to a bank of standard 
documents was a good idea, but required further consideration as to how and who would set up such a bank, who would operate it and what docu ments would be part of the bank.   
36. The representative of Chile
 said that the number of impor t/export documents and data and 
documentation requirements might be excessive in so me cases, with identical information being 
required via different means.  That delayed tradi ng activities and did not facilitate the exchange of 
information between customs administrations and bor der control authorities.  Chile was in favour of 
standardizing and reducing documents and of establis hing a list of data required for  classification and 
uniform  denomination which would facilitate trade.   
37. The New Zealand-Norway-Switzerland proposal  went along those lines and was positive.  
However, the four options were not exclusive.  Rather, the paper spoke of "a list of standard 
documents" to be used.  It also introduced an elem ent of flexibility, making reference to the standard 
documents developed by internati onal organizations.  Chile wished to pursue this idea and see how it 
could be implemented.  The proposal should be discussed further.    
38. The representative of Kenya  said that the United Nations was the mandated organization to 
set definitions, standards and procedures on data collection.  Simplification and harmonization of 
standards and procedures was crucial for effective policy-decision making on ma tters of international TN/TF/M/9 
Page 6  
 
 trade.  Ministers and policy makers were every day engaged in a constant policy-decision making 
process.  They did not require data that did not co mmunicate any information.  Rather, they needed 
organized sets of information, and data presented in simple formats to allow them to make informed 
decisions.  Kenya was aware that sophisticated pr ocedures increased transact ion costs in terms of 
delayed decisions or making wrong decisions.   
39. It was therefore important that the process of simplification, harmonization was given serious 
thought.  Sophisticated processes led to knocking out enterprises, especially small- and medium-sized 
ones, which constituted the largest portion of trading groups in developing countries.  In that regard, 
Kenya endorsed the proposal by New Zealand, Norw ay and Switzerland and supported the principles 
of simplification and standardization.  That was cons istent with the call made by the United Nations in 
the area of simplification.  Kenya urged, howev er, that the process be deepened in terms of 
understanding how the proposal interfaced with the already existing systems.  Members must also 
recognize that there would be need for delivering investments in that area, especially for those 
countries that did not have the systems to implement the proposal.   
40. The representative of Malaysia
 agreed with the general thru st of the New Zealand-Norway-
Switzerland paper which coul d provide further important improvement  to Article VIII.  Malaysia had 
also undertaken measures to improve and expedite cu stoms clearance, such as the standardization of 
customs forms aligned to the UN Layout Key, in the belief that electronic submission of import and 
export documentation was important to improve a nd expedite customs clearance.  Therefore, 
electronic submission of import and expo rt documentation was conducted.   
41. Malaysia agreed with the point by the EC that flexibilities were needed for developing 
countries in terms of the use of international st andards.  Malaysia looked forward to further 
discussions on paragraph 6 of the paper to see how one could have be tter coherence on the 
instruments already existing.  
42. The representative of Turkey  supported the New Zealand-Norway-Switzerland proposal and 
the idea of establishing international standards in trade documents and data requirements.  
Paragraph 6 of the proposal was very interesting, esp ecially its reference to the UN Layout Key.  His 
delegation wished, however, to make a po int regarding data requirements.   
43. About 10 years ago, designers of customs automation systems had been very interested in the 
UN EDIFACT data sets.  It was at that time that the WCO had developed its Data Model.  To date, 
many designers took that model into account, even  if the WCO Model had not yet found pervasive 
use in customs automation systems.  While having some  concerns about a reference to data sets or 
proposed models regarding data requirements, whic h could be a challenging task, Turkey invite the 
NG to further reflect on the matter.    
44. The representative of Guatemala  said that Guatemala had implemented measures in line with 
international standards and had en sured compliance of the standards used in Guatemala with those 
used by its trading partners.  Guatemala, theref ore, generally supported the proposal which was the 
right path to take.  There was room for impr ovement, however, especially with respect to the 
investment to be made in computerized systems to  enable them to use electronic documents.  That 
was an area in which the Guatemalan author ities required assistance as had been reported when 
completing document TN/TF/W/59.  And that was why donors and international organizations such as 
the World Bank and others should train the officials for the use of those international documents in 
customs matters.  The suggested measures would be of great benefit for SMEs, representing the 
majority of traders in Guatemala.     TN/TF/M/9 
 Page 7 
 
 
 45. The representative of Costa Rica  agreed that the use of intern ational standards was a desirable 
objective of the negotiations.  It was a necessar y element of the future agreements on trade 
facilitation, especially due to the benefits it would bring to SMEs.     
46. The alternatives listed for achieving the objective were not exclusive.  Members would  
benefit from a discussion about those alternatives as well as from finding out more from the 
international organizations on the use of those stan dards.  Costa Rica agreed with the conclusion of 
the paper that the only way to derive maximum benefits was for all Members to commit on using 
those standards.  That was the principle one should be working on.   
47. The representative of Canada  said that the New Zealand-Norway-Switzerland paper was very 
useful.  It defined not only what could be done in  the area of promoting the use of international 
standards but also how Members could deal with it in the context of the negotiations.  It was 
important to look at things through that prism.  The more Members were using the same standards or 
documents, the easier was the flow of goods.     
48. Regarding the interface with existing standard s, the communication made clear that the 
suggestion was not to have the WTO develop standardized data elements.  That was fully shared by 
Canada.  It was clear that the WTO was not a standard setting body;  there were other bodies to do 
that.  The issue was therefore not to develop standards such as the WCO Data Model or the UN 
Layout Key.  The real value added by the work in  the WTO was the promotion of those standards.  
Commitments to promote the use of  international standards as part of the commitments developed on 
Trade Facilitation would make a major contribution to the objective of the negotiations, leading to 
greater predictability and enhanced facilitation of trade.   
49. There was a variety of possibilities to do that as also mentioned in paragraph 6 of the 
document.  A number of proposals had already been made  in that regard, going in the same direction.  
A commitment to use international standards deve loped by standard setting bodies as the basis for 
data and documentation requirements would be an important result of the negotiations.  It could be 
left for each Member to choose which in ternational standard to use.    
50. Canada recognized that in some cases, a country  might not be in a position to fully apply an 
international standard, but that should be the excepti on rather than the norm.  A party having recourse 
to such deviation from international standards should have to justify why it was doing so.  There were 
trade rules in the WTO system that could serve as a source of inspiration for developing that.   
51. The representative of Chinese Taipei  said that Chinese Taipei generally supported the idea 
expressed in the New Zealand-Norway-Switzerland paper.   
52. Chinese Taipei was aware of there being concer ns on paragraph 6, relating to, for instance, 
the question of how to implement flexibility and ho w to ensure coherence of TA&CB work.  A paper 
had been submitted by Chinese Taipei (TN/TF/W/62)  proposing the establishment of a long-term 
mechanism such as a Committee to authorize the use of international standards.   
53. The representative of the United States  said that the New Zealand-Norway-Switzerland paper 
laid out matters the NG had to think about, as it a dvanced towards taking commitments in this area, 
and suggested potential approaches for doing so.  It touched on an area considered key by the private 
sector for advancing facilitation and particularly im portant to SMEs.  Assuming commitments in that 
area would also improve the cooperation and info rmation exchange environment.  There were 
linkages to proposals made by the United States, and need for conc rete follow-up proposals in this 
area.    TN/TF/M/9 
Page 8  
 
 54. The representative of Korea
 fully supported the New Zealand-Norway-Switzerland proposal.  
Korea had also made a proposal on this matter.  One point his delegation wished to draw attention to 
was the leapfrogging issue.  From Korea's experien ce, when trying to set future rules for the next 
10 years, it was necessary to consider what kind of systems would be good in the next 10 years, and 
what would be most suitable in the future.  In that contex t, it was sometimes possible to jump directly 
to more advanced systems, even if it implied certain investments.  
55. The representative of Sri Lanka  supported the New Zealand-Norway-Switzerland proposal.  
Sri Lanka also believed that using simplified docum ents based on international standards made life 
easier for traders, particularly SMEs.  Paragraph 6 of the document setting out various options was the 
paper's most important part.  In Sri Lanka, the c ontent of good declarations was in conformity with 
the UN Layout Key.  For the automated customs clearance process, the format for the electronic 
launch of declarations was based on international standards for electronic information, EDI.  Sri 
Lanka, being a small developing country, realized that  the application of standardized and simplified 
documents had speeded up clearance times and increased compliance.    
56. The representative of Ecuado r shared the views expressed in document TN/TF/W/67 on the 
very important issue of standardization.  Standa rdization would promote transparency and facilitate 
trade.  Ecuador shared the general aim of the propos al and considered the alternatives referred to in 
paragraph 6 to be very interesting.   
57. It was important to enhance the investment in  information systems.  There was need for 
technical assistance for some countries in that regard.  The technological progress in that area also had 
to be born in mind, as well as future cooperati on required to re-modernize those systems.   
58. The representative of Australia  introduced his delegation's e xperience paper on Australia's 
advance ruling regime for tariff classification and valuation (TN/TF/W/66).  The paper built on a 
proposal submitted jointly by Canada and Australia (TN/TF/W/9) on possible commitments on advance rulings.    
59. The availability of advance rulings in areas such  as tariff classification, valuation and origin 
facilitated trade by providing certainty for trader s and their agents as to how their goods would be 
treated by border agencies.  Advance rulings pr omoted confidence between customs agencies and 
traders, thereby encouraging compliance and mi nimizing delays, complaints and appeals.   
60. Australia believed that it would be appropria te for an advance ruling commitment to be 
included as part of the outcome of the TF negotia tions.  Multilateral commitments on advance rulings 
would be consistent with the aims of Article X of GATT, whose principal purpose was to encourage 
transparency of cross-border trade requirements and processes.  Commitments on advance rulings, 
such as in areas of tariff classification and customs valuation, would represent a logical and sensible outcome, an outcome that was modest and achievable a nd one that delivered real commercial benefits.   
61. The objective of the paper was not to suggest that Members should model their advance 
ruling system on Australia's regime.  Rather, the inte ntion was to share Australia's experience and to 
identify guiding principles that underpinned Aust ralia's advance ruling arrangements, principles 
which could form the basis of future WTO commitmen ts in that area.  Those principles included that 
rulings should be issued in writing, be binding and remain valid for a defined period of time, with the 
system nonetheless incorporating flexibility for author ities to modify or revoke rulings.  A review 
mechanism had to be part of the system, maki ng available information on rulings with precedent 
values while balancing the interest in informati on with legitimate confid entiality considerations. 
Internal records of rulings should be kept to en sure consistency, and information on the process for 
obtaining advance rulings should be easily accessible.    TN/TF/M/9 
 Page 9 
 
 
 62. Commitments on advance rulings would not be new.  Members were already required to 
provide advance rulings on origin under the terms of  the Agreement on Rules of Origin, Article 2(h) 
and Article 3(f) in respect of non-preferential Rules of Origin, and Annex II in respect of preferential 
Rules of Origin.   
63. To a large extent, adopting commitments on advance rulings in the WTO context would 
formalize widespread practice in de veloped and developing countries a like.  In addition to Members' 
obligations under the WTO Agreement on Rules of Or igin, advance rulings for matters such as tariff 
classification and customs valuation increasingly were becoming an integral part of modern bilateral 
and regional preferential trade agreements.   
64. As advance rulings were an established customs practice, and since Members already had an 
obligation to provide such rulings for origin determ ination, extending that requirement to other issues 
such as tariff classification and valuation in the WTO, should not be overly burdensome.  Australia 
certainly recognized that the cost of implemen ting such a system would depend on the type of 
advance ruling regime adopted by Members.  The costs outlined in Australia's paper reflected the 
automated nature of the Australian system.  Nevert heless, Australia considered it to be a relatively 
undemanding initiative.  Some Members might require t echnical assistance to adjust or extend their 
current advance ruling systems.   
65. The representative of Japan  welcomed the Australian paper. Clarification was sought on three 
points, starting with the binding nature of ruli ngs.  According to paragraph 18, customs treated 
Valuation Advice Service (VAs) as internally binding , although not codified in legislation.  How was 
the binding nature of VAs ensured without any codi fication in law?  Information was also sought on 
how the procedures referred to in pa ragraphs 25 to 34 were stipulated in the administration.  Was it by 
laws, by administrative guidelines, or something else?   
66. Reference was also made in the paper to a ppeal and review procedures against customs 
decisions on advance rulings, explaining that the bi nding nature of advance rulings was not codified 
in the legislation with import declarations b ased on the importer's own assessment.  Japan wondered 
whether that kind of procedure was legally required at such an early stage without any actual damage 
being suffered.    
67. Clarification was also sought on the publicati on of advance rulings.  In order to enhance 
predictability of treatment by customs authorities, it was important to provide information to the public while paying sufficient attention to confid entiality issues to protect the interest of the 
businesses.  According to the Australian docum ent, this information could be accessed  via the internal 
information network systems of Australian Customs and it seemed that some authorized traders could 
access that data.   But it was unclear whether other in terested parties could obtain past rulings or the 
thrust of past rulings which could be utilized for enhancing transparency or predictability.  Some kind 
of central function was desirable to ensure uniformity of treatment among local customs.  The measures listed in paragra ph 40 could be in line with Japan's proposal to address the requirement of 
uniform administration while aiming at enhancing efficiency.   
68. The representative of India
 said that the Australian paper added to Members' overall 
understanding of the important but complex matter of advance rulings.  India supported Australia's 
observation that Members had to implement advan ce rulings in a way best suited to their own 
domestic customs infrastructure and according to availa ble means.  Most of the principles proposed in 
the Australian paper were good ones and broadly accepta ble.  Certain observations nevertheless had to 
be made.   
 TN/TF/M/9 
Page 10  
 
 69. On the third bullet, India wished to point out that a ruling would be valid for a defined period 
of time if the facts and the laws remain unchanged.  It might be useful to state that up front.  On the 
sixth bullet, regarding the balance between the desirability of making information available and 
legitimate confidentiality considerations, India sought  clarification as to how that kind of a balance 
was envisaged to be achieved.   
70. Clarification was also sought on the opportunity for traders to seek review of rulings.  Was a 
regular appeal procedure envisaged, a modified appeal  procedure, or were there advance rulings in the 
nature of an arbitral proceeding?  How did it interface with the appeal system?   
71. Paragraph 3 of the Australian paper indicated  that in 2004-2005, Australian Customs had 
issued 3,254 advance rulings on tariff classification.   India's experience showed that once duty rates 
had been reduced substantially and harmonized across tariff lines, the dispute on tariff classification 
had substantially come down.  India therefore w ondered about the motivation for seeking that many 
advance rulings in Australia.  With respect to a dvance rulings on valuation,  India wondered whether 
the final content of the rulings was limited to the pr inciple of valuation or did it also extend to the 
actual declared value.   
72. The representative of Hong Kong, China
 (HKC) said that the Australian paper enhanced 
Members' understanding on the possible procedures  and commitments for establishing an advance 
ruling system.  Such a system would no doubt help to facilitate trade.  Article II(h) of the Agreement 
on Rules of Origin was a good reference.   
73. While welcoming further deliberations on the de tails of the system, HKC noted that some 
Members might have concerns over th e potential course relating to the adoption of the system.  In that 
regard, Australia had provided very useful info rmation relating to the implementation.  HKC 
encouraged other Members to also share thei r experience with advance ruling systems.   
74. The representative of the United States  said that his delegation was a strong proponent of a 
commitment on systems to provide advance rulings.  The United States saw particular value in the 
Australian paper.  It showed that the experien ce had been a positive one, as had also emerged from 
other discussions.  The US also supported the principles and conclusions drawn in the Australian 
paper.    
75. The representative of Singapore  agreed with Australia that enhancing transparency, certainty 
and predictability in the application of border regulation procedures were the core objectives of 
GATT Article X.  Singapore's experience in the area of advance rulings had shown that advance 
rulings were one way to expedite border clearan ce.  Knowing customs rules and regulations in 
advance minimized unnecessary delays and costs for traders. Benefits also existed for customs 
authorities through encouraged compliance and minimi zed complaints and subsequent appeals.  The 
paper provided useful information on Australia's advance rulings and the principles underlying the 
system and represented a useful resource for Members' work on the subject.    
76. Singapore recognized that least-developed countries (LDCs) and some developing countries 
might have difficulties implementing advance ruling programmes.  TA&CB would be needed to assist 
those Members.  To that end, it was necessary to ascertain how one coul d apply leverage on the 
TA&CB programmes already being provided by intern ational, regional and other organizations.  
APEC, for instance, had put a collection action plan  into place for the establis hment of advance ruling 
systems in the Member economies.  Seventy Member s had already adopted procedures to provide for 
advance rulings on classification.   
  TN/TF/M/9 
 Page 11 
 
 
 77. Apart from TA&CB, special and di fferential treatment (S&D) should also be an integral part 
of any commitments in that area.  Members might al so wish to discuss the pr ocedural elements that 
could be included in Members' a dvance ruling programmes.  For example, developing countries and 
LDCs might initially only have to commit to advan ce rulings on tariff classification.  Members could 
also discuss the possibility of longer implementati on timeframes for developing countries and LDCs 
as well as other phased-in approaches.  Developi ng countries and LDCs could also look at the 
possibility of implementing the more onerous commitm ents in that area on a best-endeavour basis, 
perhaps in the context of t hose phased-in approaches.   
78. In conclusion, Singapore wished to stress that  it was possible to strike a balance between 
providing predictability and certainty to trader s, on the one hand, and ensuring that customs 
authorities would not be overburdened, on the other.    
79. The representative of the Philippines  wondered how long it had take n Australia to set up its 
current advance ruling system.  The information pr ovided on related costs was very valuable.  The 
Philippines welcomed Singapore's suggestion on phasing in some of the approaches on rulings that might be finally agreed on at some point to oper ationalize S&D and less than full reciprocity.  Some 
countries might be able to agree to binding rulings on tariff classification in the first instance, and then 
later on extend it to other areas such as valuation or origin.  
80. With respect to valuation, the Philippines want ed to know if the valuation advice issued in 
Australia covered the actual duty, and what were the procedures followed to issue a valuation advice 
so that importers were in a position to have an idea about the actual valuation themselves.  
81. The representative of Bolivia
 said that the Australian paper was important for countries such 
as Bolivia where an advance ruling system did not fo rm part of the legislation.  Clarification was 
sought on whether the inclusion of that type of sy stem in any country could be incremental.  Some 
Members applied advance rulings only in regard to ta riff classification and not on valuation or origin.  
Bolivia wondered whether that type of legal system  would be a gradual one.  Information was also 
sought on the specifics of APEC's Collective Action Plan.  Did it contain any transition mechanisms?  
What type of measures were those Members going to adopt?   
82. The representative of Switzerland  said that Switzerland was a strong proponent of advance 
rulings and agreed with the benefits highlighted by other delegations.  Sw itzerland practiced advance 
rulings and believed that the ideas put forward in paragraph 45 of the Australian submission provided 
a good basis to discuss the way forward and could be  taken up in the compilation even though they 
had been presented in the context of an experience paper.   
83. The representative of Kenya  said that Australia's communication on binding advance rulings 
would contribute to Members' understanding on the s ubject.  Kenya shared the view that advance 
rulings enhanced transparency, cer tainty and predictability in the application of border measures.  
Kenya was pleased to note that Australia was not  calling for adoption of common standards and 
practices in that area.  The approach of focusing on principles rather than prescribing detailed rules 
merited further consideration.  Kenya also shared the view that a wider scope would be particularly 
burdensome for developing countries, such as Kenya , which faced a number of challenges, such as 
with respect to laboratory analysis of samples to de termine tariff classification.  That made it difficult 
to implement advance rulings.   
84. The need for TA&CB for developing countri es was an important issue that required 
consideration.  In that context, it would also be useful to hear from Austra lia about the costs involved 
in putting up the advance ruling regime in Australia .  Kenya was also interested in understanding  
how Australia dealt with confidential information in view of the fact that advance rulings were rather 
specific.   TN/TF/M/9 
Page 12  
 
 85. The representative of Malaysia
 said that advance rulings provi ded an important element of 
certainty and predictability regarding the treatment  of imported goods.  Malaysia already issued pre-
import classification which provided tariff classifica tion and endeavoured to also provide advance 
rulings on applicable duties, customs valuation and duty  referral in the future.  But that was still being 
studied and Malaysia was also looking at related cost implications.  Any binding commitment should 
not be more burdensome than necessary to developing countries, particularly in terms of costs.  S&D 
to LDCs should be an element to be considered in any future decision.  Malaysia could agree to 
Singapore's proposal in terms of a phasing-in ap proach as part of such S&D element.   
86. The representative of South Africa  said that the Australian paper added to the NG's 
discussions on advance rulings that highlighted certain principles that were important in such a system 
such as the trader having the right to a review, the right of the administration to actually reverse its 
determination if, for example, the given informatio n was inaccurate or incomplete, or the system 
encouraging consistency within customs itself and tr ansparency with traders in general.  To that 
effect, South Africa welcomed the contributions made so far.   
87. The second aspect South Africa welcomed in the Australian paper was the fact that it 
mentioned the question of cost, even if that would not  be applicable to each and every country.  The 
paper at least gave an indication of the costs i nvolved.  Obviously, there had been initial costs of 
starting up the system.   
88. South Africa agreed with India that Members should implement advance rulings according to 
their unique circumstances.  Information was sought  from Australia on whether they had started with 
a manual format for advance rulings before moving in to an electronic format. If that was the case, it 
would be interesting to learn about the benefits of each system.  What had been the benefits of one 
over the other?  Related to that was the question of co st benefit that one had to look into.  It would be 
interesting to get more details as to how much more it would cost to graduate to an electronic system.  
Based on the cost-benefit ratio, the question then was whether it was worthwhile to look at an 
electronic system.  Obviously, the question of capacity building would have to come into place.  It 
was important to get a general idea of the process Au stralia went through to get where they were now, 
including the time taken.  When reading those papers, people sometimes got the wrong impression 
that one could get those systems running overnight.    
89. As for experience papers in general, it might be  useful to start looking at a compendium of 
some sort, although that might entail a lot of work .  But organizations such as the WCO, the World 
Bank, the OECD, and others, had done quite a lot of  work in finding out those experiences, involving 
case studies of reforms in customs and the like, and the Secretariat might want to link up with them.  
A compendium could be useful when it came to  capacity building when Members would be talking 
about figures and would have a rough idea of the co sts and processes involved to put certain things 
into place.   
90. The representative of Turkey  said that his delegation was one of the proponents of advance 
ruling systems to be established as the outcome of  the negotiations and very much welcomed the 
proposal by Australia.  Turkey's customs legislatio n provided for advance ruling systems for origin 
and tariff classification issues, but not yet on valuatio n requests.  It would be interesting to learn from 
Australia about the content of the d ecisions and the principles applicable  to the situation in question.  
Did it provide the clear customs value to be declared ?  That would be a conc rete indicator about how 
to deal with that issue.  In addition, more exam ples, or mock examples of a real ruling not providing 
confidential information could help in getting a be tter idea of the system in place in Australia.  
91. The representative of Guatemala  said that the issue was obviously relevant for trade 
facilitation. At the same time, there were still lacun ae, especially with regard to implementation for 
LDCs and developing countries, such as Guatemala, particularly when thinking about having binding  TN/TF/M/9 
 Page 13 
 
 
 multilateral commitments in the area of advance ruli ngs.  Obviously, it was important to understand 
national experiences.  Australia's paper was welcom e and would encourage ot her developing countries 
in the implementation of measures such as the ones presented by Australia. There were areas to be improved. Guatemala was already implementing the sy stem, but needed to improve other areas.  That 
was why TA&CB were very relevant.  The inform ation on costs was useful as it touched upon an 
aspect everybody had to take into acco unt when looking into this area. 
92. The representative of Argentina
 said that Australia's importa nt document demonstrated the 
details of an advance ruling system.  Clarification was sought on paragraphs 21 to 24.  According to 
that section, Australia had a large number of adva nce rulings, amounting to over 3,000.  It would be 
interesting to know the percentage of advance ruli ngs which were contested.  How many requests had 
there been for review?  And when a review was re quested and it was brought before an administrative 
appeals' tribunal or a court of competent jurisd iction, how much time did it usually take?    
93. Further information was also sought on the issu e of precedent value.  Paragraph 34 mentioned 
that some of the decisions were subject to furthe r, in-depth examination by  customs with a selection 
of those "audited" decisions being kept in a sep arate PRECEDENT database available to Customs 
officers and owners/agents for precedent purposes.  Ar gentina wished to know what the audit process 
consisted of. Was there any implication that there might be a conclusion different from the original 
decision, bearing in mind that the decision ru ling was already communicated?  And was there 
sometimes a different conclusion reached?  What w as the percentage of rulings that had a precedent 
character?  Finally, Argentina also wondered about th e qualification of precedents with regard to the 
request for information to be kept confidential? 
94. The representative of Cuba  raised several concerns with resp ect to the Australian paper.  One 
related to costs and staff required to implement th e mechanism.  Paragraph 42 of the document said 
that two officers were required to issue VAs and 35 officers to issue Tariff Advices (TAs), among other tasks.  Bearing in mind Cuba's limited ca pacities with regard to human resources, a real 
possibility to implement such a mechanism was not within reach. Cuba endorsed the statements by 
Kenya, South Africa and the Philippines on the cost s of implementing the system.  Information was 
sought from Australia about the transition from manual to electronic application.  Cuba shared India's 
concerns and supported Argentina's remarks on the n eed for a balance between protecting confidential 
information and providing information required for advance rulings. 
95. The representative of China
 said that Australia's paper he lped better understand the advance 
ruling system. China shared the view of advance rulings being a good practice that provided 
predictability, certainty and transpar ency in trade.  To further explor e the idea, China wished to share 
some of its preliminary thinking on implementing the concept.   
96. In practice, the provision of advance rulings w as comparatively easy in some areas such as 
the origin of goods, but in others, such as on valuatio n, it was much more complex.  Like India, China 
was interested in hearing whether advance rulings  on valuation were rulings on the principles of 
valuation or the actual declared value. 
97. While the concept of advance rulings was very  good and worthwhile, furt her discussions were 
required in terms of coverage and specific commitments  in different areas.  In that regard, China fully 
supported the paper's observations th at Members had to implement advance rulings in the way best 
suited to their own national customs infrastructur e and according to the means available to them. 
98. The representative of Indonesia  considered Australia's submission to be a valuable 
contribution to Members' work on improving GATT Ar ticle X.  While recognizing the importance of 
advance rulings to provide greater certainty, tran sparency and predictability for traders, Indonesia TN/TF/M/9 
Page 14  
 
 wished to further underline the importance of S&D el ements and TA&CB.  Furthermore, the costs of 
implementing advance rulings should not represent an  additional burden for developing countries. 
99. The representative of Tanzania
 said that Australia's important document highlighted all the 
elements involved in an advance ruling system, partic ularly with regard to costs.  For that reason, 
Tanzania wished to associate itsel f with the statements made by Kenya, the Philippines, Malaysia, 
South Africa, Cuba, and Indonesia on the matter.  
100. Having participating in a Works hop organized in Chinese Taipei , for which Tanzania wished 
to express its thanks, Tanzania had learnt something a bout cost implications.  It had become clear that, 
in the year 2000, it had cost Chinese Taipei  US$5 million to upgrade their air-cargo clearance 
automation system.  A similar system had been set up in 2004 for ocean-going cargoes with a total 
budget of about US$6.5 million.  Chinese Taipei had also developed an internet environment and 
virtual trading centre concept with a budget of US$100  million.  Tanzania had also been told that 
Chinese Taipei had implemented the Container Secu rity Initiative (CSI) by installing three x-ray 
machines at a cost of about US$100 million each, with other APEC Members also required to set up such machines at 20 ports.   
101. It should be realized that WTO Member countries differed from each other in many aspects, 
such as with regard to their economic developmen t, geographical, geopolitical conditions, and even in 
terms of reforms in trade facilitation measures c onducted under various intern ational regimes.  For 
example, last year customs authorities in Tanzania  had introduced a destination inspection scheme to 
replace the pre-shipment inspection scheme.  The sy stem was associated with a computerized risk 
management system.  Tanzania had migrated to ASYCUDA++ to replace the ASYCUDA 2.7 version.  
The Tanzania Logistics Community had recently been formed to exchange information electronically.  
However, it had been difficult to implement and main tain the system due to financial implications.  
102. In light of the different situati ons in different countries, and in  the absence of an agreement on 
which proposals should constitute TF measures a nd what level of reforms would represent the 
threshold, Tanzania doubted that document TN/TF/ W/59 would provide an accurate picture regarding 
TA&CB.  
103. The representative of Canada
 welcomed the Australian paper.   As a co-sponsor of another 
paper on advance rulings, Canada attached great im portance to that area.  The Australian document 
provided value added in two respects.  First, its c oncluding section set out the key elements that would 
have to be considered in further developing commitments in the area. 
104. Second, it showed one  possible way of doing adva nce rulings and the costs associated with it.  
Costs were an important matter that Members had to address.  But it was also important to keep in 
mind that there were different ways of implemen ting advance rulings.  That was an area where the 
often heard reference to there not being a "one -size-fits-all" was especially appropriate.   
105. Australia had opted for a system that was very  elaborate and very advanced, which had lead 
to certain costs.  The costs for setting up an advan ce system in Canada had been different, despite the 
two countries' similar levels of de velopment.  Canada did not provi de advance rulings on valuation, 
leading to a difference in costs.  Furthermore,  the number of binding advance rulings issued by 
Australian customs on tariff classification was at l east three times the volume of Canada's, despite 
Canada having a higher volume of trade.  The costs varied from one country to another.  
106. It was very useful to have a national experi ence paper from an advanced developed country 
like Australia.  It would also be extremely informa tive for the NG to have experiences shared by other 
countries, especially developing countries, either in written or verbal form.  Relevant systems were for 
instance in place in Zambia and Barbados and seeme d to be functioning relatively well.  Kenya was  TN/TF/M/9 
 Page 15 
 
 
 also considering establishing such a system as part  of their ongoing customs modernization plan. It 
would be interesting to hear from those countries about their experiences in terms of implementing those procedures.  That was not to minimize the im portance of costs, which was a key factor, but to 
note that it would be a function of what was the co mmitment to be negotiated in that area, and what 
was the level of detail and flexibility required for in dividual countries to implement a system that fit 
their needs and priorities.  
107. The representative of Korea
 appreciated Australia's paper and supported the advance ruling 
proposal.  Korea's experience had shown advance ruli ngs to be clearly beneficial for both trade and 
customs authorities.  The system allowed custom s authorities to have sufficient review periods, 
enabling them to make better informed decisions a nd thereby reducing complaints.  It was therefore 
also beneficial from an administrative point of view.  
108. Clarification was sought on one pa rticular point.  Para graphs 13 and 19 mentioned the right of 
customs to revoke or amend their decision within fi ve years.  Could not some honest importers face 
unexpected damage by such action?  Was there any limit for a decision not to be amended or revoked?  It was also indicated that a VA could be amended or revoked with in the same period if 
customs had issues conflicting with VAs.  Would not th at raise an issue of credibility or certainty of 
the system?  
109. The representative of Sri Lanka
 shared the view that advance rulings contributed to certainty 
and predictability.  Such rulings were not new to  Sri Lanka's customs administration, although they 
had only been applied in a limited way such as, fo r example, on tariff classification.  Expanding the 
scope of advance rulings comprehensively, as sugg ested by Australia, would pose genuine  capacity-
related problems.  Sri Lanka was,  however, open to discussing the matter further.  That was why Sri 
Lanka supported India's idea that expanding the scope should be commensurate with Members' 
individual capacities of Member countries.  In the interest of its traders who had welcomed the 
country's recent initiatives, Sri Lanka stood ready to further discuss how to improve this important 
area.   
110. The representative of Panama  welcomed the new proposal while  also sharing the concerns 
expressed with respect to the capacity  of some Members to take on th is responsibility.  One way for 
countries to have an advance ruling system would be through implementation in phases.  The proposal 
seemed very interesting.  Panama had already unde rtaken certain preliminary steps towards such a 
system in relation to other agreements and was in terested in responses from other delegations having 
already implemented the measure.   
111. The representative of Norway  wished to reply in an initial manner to questions and comments 
received on the New Zealand-Norway-Switzerland pape r, welcoming the feedback made. The subject 
under discussion was an important one.  
112. The paper was intended to further organize Members' thoughts on the various aspects of 
standardization.  The preliminary comments received in that regard were most helpful in creating a 
good basis for further deliberations in the Negotiating Group. 
113. Norway would actively engage in a necessary follow-up in more detail to the various 
questions raised at a later stage, especially with respect to paragraph 6 of the proposal.  The idea 
behind paragraph 6 was to create a good starting point rather than a firm conviction that Norway had 
found the answer to Members' deliberations on the topic.  Norway therefore very much welcomed 
Members' comments and also took due note of the ca lls for flexibility.  When working on the paper, 
Norway had been very conscious not to re-invent  the wheel.  That was why paragraph 9 had been 
introduced. TN/TF/M/9 
Page 16  
 
 114. Norway agreed with the remarks by the Un ited States that the present paper was a first 
follow-up paper and hoped that it could inspire others to follow.  With respect to the questions raised 
in regard to the paper, Norway wished to suggest for them to be presented in writing as that would 
help develop the deliberations further.   
115. The representative of New Zealand
 expressed her delegation's satisfaction with the 
overwhelmingly positive reaction to the New Zeal and-Norway-Switzerland paper.  The comments 
indicated the need for further wo rk on the matter.  New Zealand wished to respond, on a preliminary 
basis, to three of the issues that  had come up in the discussions.   
116. The first related to the use of existing standard data models.  As indicated in the paper, there 
was no intention to re-invent the wheel or duplicat e work.  Rather, the idea was to build on existing 
standards.  Further work and more details were ce rtainly required in this area and useful input had 
been provided by several delegations.  Australia 's idea on air-cargo clearance and on the need to 
closely work with industry, were particularly valuable.  
117. The suggestion by Hong Kong, China and India to come up with a common list of usable 
standards was certainly one means of achieving th e objective Members were aiming at.  New Zealand 
was prepared to explore that.  Further details woul d be required about what standards existed and how 
they were currently being used. 
118. The issue of flexibility had to be carefully reflect ed on in developing the paper.  New Zealand 
agreed that some degree of flex ibility was necessary.  But in looking at the various available options, 
it was New Zealand's impression that they already pr ovided for quite some degree of flexibility.  New 
Zealand therefore endorsed the comments by Costa Rica that the maximum benefit of the proposal 
was to ensure that all Members committed to use st andardized data elements and that any flexibility 
should be the exception rather than the rule.  
119. With respect to electronic systems and Australia 's suggestion that the proposal relied on them, 
New Zealand wished to clarify that the proposal di d not assume that electronic automated systems had 
to be in place.  But it did recognize  that as being the ultimate goal for Members to achieve.  That was 
why a specific reference to technical assistance could be added.  Further discussion was required on 
the matter.  
120. The representative of Switzerland  commented on the evolution from paper-based to EDI 
systems and from there to web-based solutions in sta ndardized documents, noting that that was also a 
development ASYCUDA had experienced.  But what ever solution Members were talking about, be 
they paper-based, EDI-based or web-based, the data  model behind was the same.  It was not necessary 
for Members to decide on one of the three solutions  as they would all continue to co-exist for some 
time.  
121. The representative of Australia  wished to offer a general response to some of the questions 
raised.  More detailed answers would be provided in writing at a later stage.   
122. Australia was conscious of the presented system being one that met Australian requirements 
both from a customs and a trader perspective.  Australia did not necessarily see it as a system that had 
to be implemented in other administrations as it was.   But the conclusions were generic and could be 
subject to reflection in commitments when Memb ers reached that stage of the negotiations.   
123. The binding nature of the advance rulings was set by customs administrative direction in the 
Australia's customs manual.  It was endorsed by the Chief Executive Officer of Australian Customs 
who had the statutory responsibility for putting those procedures into place.  On the issue of balancing 
confidentiality interests with interests in providi ng information to a broader audience, it should be  TN/TF/M/9 
 Page 17 
 
 
 noted that the information was only provided to the traders that had requested the ruling.  There was 
no general publication of either advance rulings for ta riffs, rules of origin, or valuation.  In TAPIN, 
traders had access to their own data and their data alone.  There was precedent information of a generic nature available on a broader basis to the public but that related to tariffs only. 
124. With respect to the issue of centralization, one of the reasons Australia looked at that was the 
question of uniformity and consistency while al so paying attention to cost effectiveness.   
125. Costs were an important consideration.  The sy stem described was speci fic to Australia.  The 
question of whether Australia had had a manual tariff advice system could not be answered 
immediately since TAPIN had been in existence for a while but further clarification would be sought 
on that point.  Australia certainly was conscious  of cost implications.  The system had been 
approached from the overall perspective of the benef its of, and cost savings from, automation.  The 
process of tariff advice and advance rulings provided be nefits for both government and traders.  There 
were several savings for administrations from pu tting into place automated procedures.  The cost-
benefit analysis had to be done on a case-by-case basis.   
126. The representative of India
 wished to comment on papers TN/TF/W/51 to TN/TF/W/59 and 
TN/TF/W/62 to TN/TF/W/64.   
127. India wished to thank the World Bank for their valuable and constructive contribution to the 
ongoing negotiations through their Trade Facilitati on Negotiations Support Guide circulated as 
TN/TF/W/51.  The Guide contained useful ideas to assist Members in the ongoing negotiations.  
Similarly, India wished to thank the WTO Secretariat for preparing a very useful compilation of written questions and answers on various Members' proposals (JOB(05)/222).  Thanks were further 
due to Japan for their papers TN/TF/W/52 and TN /TF/W/53 in which they had shared information 
concerning their technical assistance activities a nd their system of pre-arrival examination, 
respectively.  India also wished to thank Korea for their paper on post-clearance audit (TN/TF/W/55).  
India was also in the process of developing a post-cl earance audit regime and had found the paper to 
provide useful information.   
128. India welcomed the questionnaire prepared by the Secretariat which was a good tool to carry 
out an internal assessment of the existing procedures vis-à-vis  the proposals made so far.  In India's 
assessment, the questionnaire could elicit more in formation if another column was added seeking 
brief details regarding the implem ented measures where the answer was "yes" or "partly yes".  India 
recognized that that might be burdensome for some  Members and therefore, suggested that that 
column be indicated as optional.   
129. India welcomed the suggestion to create on the WTO website a section dedicated to TA&CB 
in the context of the trade facilitation negotiations.  On the subject of a coordination mechanism, India 
supported the view that such a mechanism should ha ve some kind of an oversight by the WTO, both 
during the negotiations and during the implementati on of commitments.  At the same time, India 
shared the view that such an ove rsight mechanism did not need to be overly bureaucratic and did not 
require substantial additional resources.   
130. India supported the African Group proposal in TN/TF/W/46 and agreed on it being important 
to provide technical assistance both during the clar ification process as well as beyond the negotiations 
phase.  On the issue of TA&CB, India was prepar ed to extend such assistance in terms of making 
available its faculty and training infrastructure.  However, India would requi re financial support from 
either multilateral agencies or bilateral donors to meet the operational expenses linked to extending 
such technical assistance.   TN/TF/M/9 
Page 18  
 
 131. With respect to Singapore's paper TN/TF/W/58, India wished to know how the system of 
TradeNet® handled some specific technical follow-up queries arising out of information filed through 
that system.  For instance, if India's technical lite rature or a catalogue was required to determine the 
correct classification of a good, India wished to kn ow whether such follow-up enquiries were to be 
answered only through TradeNet® or would they be dealt with by the relevant agency.   
132. The paper by Chinese Taipei (TN/TF/W/62) regarding the establishment of a long-term 
mechanism on trade facilitation matters was useful and recognized the importance of the long-term 
need for TA&CB.  It also contained some useful id eas regarding use of international standards.  The 
focus should be on specifically identified internationa l standards instead of a generic discussion on all 
international standards.  India supported the s uggestion to create a body to oversee the kind of 
functions mentioned in the proposal.  India partic ularly welcomed the suggestion that such a body 
should also promote cooperation between customs or any other appropriate authority on trade 
facilitation and customs complaints issues.  Clarifi cation was sought as to whether the proposed body 
was envisaged to be different from any other WTO bo dy that might be created to oversee the outcome 
of the negotiations on Trade Facilitation and, if so, what kind of inter-relationship was envisaged 
between the two.   
133. India welcomed the important and useful  proposal by Pakistan and Switzerland 
(TN/TF/W/63) which attempted to address the vita l issue of a mechanism to link commitments to 
implementation capacities.  India supported several ideas mentioned in the paper, such as carrying out 
an in-depth gap analysis of domestic laws with th eir rules and the assessment of technical, financial 
and human resources required to fill the gap, and multiple channels for providing TA&CB and 
funding.  The idea of a pledging mechanism was inte resting and would add to Members' comfort level 
in taking commitments.  However, th e challenge would be to make the mechanism effective and at the 
same time not too rigid.  It was also necessary to reflect whether all, or only some commitments, had 
to be subject to a pledging mechanism.  For a la rge country such as India, commitments on a specific 
rule might be possible for certain entry points but not for others.  Hence, flexibility for TA&CB and 
financing might be required for some rules which a Member might otherwise agree to implement at a 
broad level.   
134. India welcomed the paper from Cuba (TN/TF/W/ 64) to strengthen the non-discrimination 
provisions in GATT Article V.  India supported the idea that Members must preserve their rights to apply the exceptions provided for under GATT Artic les XX and XXI.  It was India's understanding 
that any improvement of the principle of non-di scrimination should apply with reference to both 
commercial and non-commerc ial considerations.   
135. The representative of Colombia
 commented on the paper by Chinese Taipei, considering it 
timely to begin to develop a long-term mechanis m in order to guarantee the supply of TA&CB, 
particularly beyond the negotiations phase.  Para graph 15 of TN/TF/W/41 proposed to examine the 
appropriateness of establishing a mechanism to organize and coordinate technical assistance in the 
area of Trade Facilitation.  Even given the d onors and beneficiaries in other international 
organizations, that mechanism would ensure that t echnical assistance be adju sted to the needs of 
beneficiaries in such a way as to guarantee tran sparency, consistency and effectiveness and to 
facilitate Members' compliance with rules in that area.   
136. Colombia recalled Chinese Taipei's suggestion to take the experience of the Committees on 
Technical Barriers to Trade (TBT) and Sanitary and Phytosanitary Measures (SPS) into account, 
which was interesting. But it woul d be appropriate to first carry out an assessment of the functioning 
of technical assistance in those Committees for th e implementation of related disciplines before 
deciding whether to establish a committee, worki ng party or similar body in the TF context.  
Colombia agreed that the chosen form should keep in close cont act with competent intergovernmental 
organizations to avoid duplication of activities.  It should be decided how the link should be created.    TN/TF/M/9 
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 137. Colombia considered it premature to determine that the long-term mechanism would be able 
to authorize specific waivers for developing countr ies, especially LDCs, from requirements to comply 
with obligations.  That was something which shoul d be developed during the negotiations through the 
link of the three pillars of Annex D.   
138. The representative of Chinese Taipei  responded in a preliminary manner to questions raised 
on its proposal in TN/TF/W/62.  With respect to  the reminders of Chile, Brazil, Argentina and 
Columbia of the idea suggested in TN/TF/W/41 of a mechanism to organize and coordinate TA&CB, 
pooling the efforts of donors and recipients and other international orga nizations, Chinese Taipei 
wished to note that it supported the idea, which sh ared the same overall spir it and goal of the Chinese 
Taipei proposal.  Chinese Taipei would therefore be  happy to add it to its revised communication on 
both proposals.   
139. With regard to the concerns rai sed with respect to the suggested  use of international standards 
and instruments and the requested clarifications, Chinese Taipei was aware that the use of such 
standards was an essential issue.  Many of the ideas expressed by Members in response to 
communication TN/TF/W/62 gave a rough guide as to wh at international standards would be able to 
accelerate customs procedures.  The discussions on New Zealand-Norway-Switzerland proposal had 
also been useful in that regard.  The issue ha d to be addressed very carefully.  Chinese Taipei 
suggested the establishment of a long-term mechanism,  for example, in the form of a committee, to 
discuss the possible solutions.  With respect to the reference in Chinese Taipei's communication to the 
SPS and TBT Committees, it had now been decided to r esort to commissioning a research institute for 
a comprehensive study on trade facilitation and in ternational standards.  Chinese Taipei looked 
forward to sharing further details in that respect in the future.   
140. The representative of Honduras  commented on the proposal by the Dominican Republic 
(TN/TF/W/60), saying that taking up the theme of st rengthening the ethical conduct and integrity of 
customs officials contributed to the benefit of public  policies with respect to the income due to the 
state as well as to other matters.   
141. The proposal to establish a code of conduct settin g out the rights and obligations of public 
officials was a positive one.  To be effective, a code of conduct had to be  clearly defined with 
standards of conduct for customs officials and provide  a guide on ethical questions that occurred in 
the daily activities of customs offi cials.  Honduras had such a code of conduct for official employees 
and auxiliaries of customs.  It was prepared in c onformity with the WCO Ethical Standards Code and 
the Inter-American Center of Administrative Tributaries (CIAT).   
142. Honduras also already had the computerized system proposed by the Dominican Republic to 
eliminate or reduce interference of officials in those matters.  ASYCUDA ++ provided for a clearance 
of merchandise based on "red", "yellow" and "gre en" channels indicating whether goods should be 
reviewed by customs officials and at which level.   Theoretically, that procedure eliminated the 
discretionary capacity of the official involved.    
143. The representative of Sri Lanka  shared Sri Lanka's experience in respect of Korea's proposal 
TN/TF/W/55, which was very relevant to Sri La nka as a developing country keen to introduce 
improved trade facilitation measures.  Facilitating legitimate trade was one of Sri Lanka's main 
objectives.  It was necessary to ap ply proper control measures while at the same time securing proper 
governmental revenue.   
144. Post clearance audit measures adopted in Sri Lanka focused on valuation of imported goods.  
The legislation had been amended to implemen t the valuation rules b ased on the WTO Customs 
Valuation Agreement.  It was now mandatory for th e importers to keep import and transaction records TN/TF/M/9 
Page 20  
 
 for three years.  Customs officers were empower ed to audit and examine records on any matter 
pertaining to Customs.   
145. With respect to administrative policy and pr ocedures, customs import declarations were 
verified to ascertain whether the va lues declared were acceptable in te rms of valuation rules.  If the 
declared values were acceptable, goods were released to the importer.  In case of a doubt regarding 
the declared value, a post clearance audit would be  carried out subsequently.  Sri Lanka had set up a 
post clearance audit branch for that  purpose.  If there was a delay to determine the value, importers 
could remove the goods on a provisional basis by paying the due governmental revenue, calculated on 
the basis of the value declared in addition to pl acing a security.  Suspected valuation frauds were 
investigated separately.   
146. As for governmental coordination, amendments to the law required for the implementation of 
those valuation rules had been enacted in 2003.  The implementation of the WTO Customs Valuation 
Agreement with the introduction of a post clearance audit system had had the benefit of expediting the 
import cargo clearance process and facilitating legitimate  trade.  With respect to administrative policy 
and procedures, Sri Lankan Customs currently practi ced case-by-case audits. Audit systems such as 
planned audits and comprehensive audits were not carried out yet.  The application of case-by-case 
audit systems alone had not delivered the expected re sults with many shortcom ings experienced in its 
application which had resulted in a consid erable loss of governmental revenue.    
147. Sri Lanka supported Korea's proposal in TN/TF/W/ 55 and wished to note that a planned audit 
system could be used as an effective tool to address revenue evasion by under valuation of goods.  
Planned and comprehensive audit systems could al so address the existing weaknesses of the case-by-
case audit system.   
148. As for training and TA&CB needs, the provision of proper training programmes for customs 
officers to conduct audits in a systematic manner was an essential need.  Another immediate need was 
TA&CB for the identification of items under high ri sk categories.  With respect to resource 
requirements, Sri Lanka also wished to emphasize th e need for TA and training support.  Sri Lanka 
was thankful for Korea's expressed willingness to ass ist developing countries to build up a proper post 
clearance audit system.  Such a system would not only accelerate customs clearance and encourage compliance but also ensure the collection of due government revenue.   
149. The representative of Singapore
 asked India to circulate its st atement containing questions on 
the TradeNet® system to enable Singapore to  provide responses by the next meeting.   
150. The representative of Venezuela  commented on Cuba's proposal (TN/TF/W/64), appreciating 
its focus on the important principle of non-discrim ination.  Venezuela agreed that the GATT had the 
necessary provisions for exceptions provided in Articles XX and XXI without having to adopt 
measures of extra-territorial scope which affected the principle of non-discrimination as stipulated by Cuba.  Venezuela considered Cuba's proposal  to be of particular interest.    
151. The representative of Brazil
 welcomed the proposal by Chinese Taipei in TN/TF/W/62 on the 
establishment of a broad mechanism of technical as sistance and on the use of international norms.  
Brazil supported the idea of establishing such a mech anism but believed that any new institutional 
arrangement should not repeat the activities already being carried out by other organizations.  Brazil 
was concerned about such a new mechanism creati ng more confusion.  Any new instrument would 
have to fill clearly identifiable gaps in the field of technical assistance.    
152. Brazil also welcomed the proposal by Switzerland and Pakistan on the same issue which had 
some points in common with the proposal by Chin ese Taipei.  Any TA&CB mechanism should not be 
unnecessarily complicated.  Therefore, Brazil wa s somewhat concerned about the proposal's  TN/TF/M/9 
 Page 21 
 
 
 suggestion to submit national action plans for appr oval to a future body in charge with overseeing 
future obligations on Trade Facilitation.   
153. Concerning document TN/TF/W/60 by the Domi nican Republic, Brazil believed that the 
conduct of customs officials had a major role in st reamlining the transit of goods.  Brazil had a code  
of ethical conduct for public officials which provide d for the criminalization of certain inappropriate 
conduct.  At the same time, Brazil had doubts ab out that being an area in which the WTO was 
competent to act.  It would be more appropriate to leave that for individual governments' internal 
regulations.  Brazil preferred that the matter was not dealt with at the WTO level.   
154. The representative of Korea  said that while Korea had very limited resources for TA, one 
could discuss bilaterally how to carry out more training on that issue.   
155. The representative of Hong Kong, China  (HKC) commented on Cuba's proposal 
TN/TF/W/64, appreciating its suggestion to strengthe n GATT Article V:2 by adding a new paragraph.  
While having no doubt that the fundamental GATT principle of non-discrimination should apply to 
the perspective arrangements on Trade Facilitation ev en without express mention, HKC believed that 
more discussion was required to work out some of the terminology mentioned, such as on non-
commercial reasons.   
156. The representative of Turkey  appreciated the Pakistan-Swiss paper TN/TF/W/63.  Turkey 
attached great importance to development-related is sues.  Clarification was sought on paragraph 14.  
Which were the referenced "experien ced international organizations" that  were considered to be of  
valuable support in that regard?  Furthermore, did the paper foresee TA&C B in the course of the 
negotiations? Some Members would need technical  assistance while conducting self-assessment. The 
paper seemed to concentrate mainly on the mechanis m explained in part III.  Clarification was also 
required on the paper's reference to "independent and internationa lly-recognized experts (some kind 
of technical committee)".   
157. Turkey shared the concerns expressed by Pakistan and Switzerland in paragraph 33.  There 
seemed to be a risk for countries currently playing only a marginal role in world trade since those 
countries might not receive adequate funding for TF measures.   
158. Chinese Taipei's proposal (TN/TF/W/62) of setting up a long-term mechanism to monitor 
technical assistance was a significant one.  It seem ed to be a good idea to set up such a mechanism 
and Turkey looked forward to discussing the matter further.    
159. The representative of the Dominican Republic  wished to offer further explanation of his 
delegation's proposal.  The proposal had received very positive feedback.  Logically, every new 
proposal gave rise to doubts, especially when to uching upon a very sensitive matter.  But there 
seemed to be more doubts than usual.   
160. With respect to the question on the need to involve the WTO in the matter, Members had to 
ask themselves if they wanted the WTO to make ru les without an idea of the environment in which 
they were to be implemented.  WTO rules were sometimes indicative, allowing countries to gradually 
adopt their content.  It was not a question that could easily be answered.  The Dominican Republic 
considered it necessary to present the idea of integr ity of customs officials to guarantee effective 
compliance with the results attained in the TF nego tiations.  It could therefore be necessary for the 
WTO to address the issue in the negotiations.   
161. The proposal by the Dominican Republic was base d on five concrete points, four of which 
appeared in many other documents.  There was al so a WCO Code of Ethics forming part of the 
proposal.  One aspect of the proposal related to th e introduction of computerized systems to reduce TN/TF/M/9 
Page 22  
 
 the level of autonomy in decision making by author ities.  References to the level of discretion 
exercised by officials had been made in virtually all statements.  Computerized systems were at the 
heart of the matter, as agreed by many delegations.  
162. As for TA, the Dominican Republic agreed with vi rtually everything that had been said in that 
regard.  The establishment of coordination had give n rise to concerns and questions.  Coordination 
was required in order to have an indication of what was desired.   
163. The aspect causing most problems related to offen ces against the law or the code of conduct. 
The WTO should intervene in that area, not by requiring something binding, or by imposing something for all countries, but by giving an example.  Each country was different.  In many countries, the measures proposed by the Dominican Republic had already been applied for years.  
Other aspects had to be implemen ted gradually.  When an indication was given of a system of 
penalties or sanctions, that was something that might be availed of by customs authorities.  That was 
what had been proposed in TN/TF/W/60.  It should be kept on the table and the issue should continue 
to be discussed at the WTO.   
164. The representative of China
 requested the use of correct terminology when referring to WTO 
Members.  There was no Member called "Taiwan" .  China wished to see that comment placed on 
record.    
165. The representative of Chinese Taipei  objected to China's remark being placed on record.   
166. The Chairman  informed that the formal mode of the discussions left no choice but to reflect 
comments in the minutes of the meeting.   
167. The representative of Brazil  wished to clarify a statement made in connection with the 
proposal by the Dominican Republic.  Brazil was not entirely convinced that the penalization of 
violations against a code of conduct was someth ing that should be handled in the WTO.  The 
remaining aspects of the proposal had merit and Brazil wished to continue examining them.   
168. The Negotiating Group took note  of the statements made.   
B. TECHNICAL ASSISTANCE AND CAPACITY BUILDING  
169. This part of the meeting w as conducted in informal mode . 
C. AD HOC ATTENDANCE OF RELEVANT INTERNATIONAL ORGANIZATIONS , INCLUDING THE 
IMF,  OECD,  UNCTAD,  WCO  AND THE WORLD BANK, AT THE NEXT MEETING OF THE 
NEGOTIATING GROUP  
170. The Chairman  suggested inviting relevant internati onal organizations, including the IMF, 
OECD, UNCTAD, WCO and the World Bank to a ttend the next meeting of the NG on an ad hoc  
basis, as provided for in the Work Plan.   
171. It was so agreed . 
D. OTHER BUSINESS  
172. The Chairman  informed that the requirements of s ubmitting input for the NG's report for the 
Hong Kong Ministerial Conference by early November necessitated another meeting in October.  He 
therefore proposed to hold an additional session on 24 and 25 October dedicated to preparing the 
Group's input to the Ministerial report. In respect of  the agreed Member-driven nature of the process  TN/TF/M/9 
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 and by means of a bottom-up approach, the idea woul d be to have most of the session take place in 
informal and non-plenary mode, allowing Members to engage amongst themselves in bilateral, 
plurilateral and confessional-style discussions in search for common ground on the NG's Hong Kong report, with the Chairman also making himself available for anybody wishing to meet with him. In procedural terms, this would imply opening the meeting to adopt the agenda in the morning of 
24 October and then adjourning the session for bilateral and plurilateral discussions until the 
afternoon of the 25
th, when the NG would reconvene to share the results from those deliberations.   
173. It was so agreed .  
174. The meeting was adjourned .  
 
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