RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/TF/W/72 
31 October 2005 
 (05-5030) 
Negotiating Group on Trade Facilitation  
  
 
DRAFT HONG KONG REPORT 
 
1. Since its establishment on 12 October 2004, th e Negotiating Group on Trade Facilitation met 
eleven times to carry out work under the mandate  contained in Annex D of the General Council 
Decision in WT/L/579. The negotiations are benefiti ng from the fact that the mandate allows for the 
central development dimension of the Doha negotiati ons to be addressed directly through the widely  
acknowledged benefits of trade f acilitation reforms for all WTO Members, the enhancement of trade 
facilitation capacity in developing countries and LDCs, and provisions on special and differential 
treatment (S&DT) that provide flexibility. Based  on the Group's Work Plan (TN/TF/1), Members 
contributed to the agreed agenda of the Group, ta bling 60 written submissions sponsored by more than 
100 delegations. Members appreciate the transparent and inclusive manner in which the negotiations 
are being conducted.   
2. Good progress has been made in all areas cove red by the mandate, thr ough both verbal and 
written contributions by Members. A considerable pa rt of the Negotiating Group's meetings has been 
spent on addressing the negotiating objective of improving and clarifying relevant aspects of GATT 
Articles V, VIII and X, on which about 40 writte n submissions have been tabled by Members 
representing the full spectrum of the WTO's Memb ership. Through discussions on these submissions 
and related questions and answer s (JOB(05)/222), Members have a dvanced their understanding of the 
measures in question and are building common ground on many aspects of this part of the negotiating 
mandate. Many of these submissions also covered the negotiating objective of  enhancing technical 
assistance and support for capacity building on trade facilitation, as well as the practical application of the principle of S&DT. Two other valuable submi ssions dedicated to these issues have been discussed 
(TN/TF/W/33 and TN/TF/W/56). Advances have also been made on the objective of arriving at 
provisions for effective cooperation between custom s or any other appropriate authorities on trade 
facilitation and customs compliance issues, wher e two written proposals have been discussed 
(TN/TF/W/57 and TN/TF/W/68). Members have al so made valuable contributions on the 
identification of trade facilitation needs and prior ities, development aspects, cost implications and 
inter-agency cooperation.  
3. Valuable input has been provided by a number of  Members in the form of national experience 
papers describing national trade facilitation reform  processes. In appreciation of the value to 
developing countries and LDCs of this aspect of  the negotiations, the Negotiating Group recommends 
that Members be encouraged to continue this information sharing exercise.  
4. Building on the progress made in the negotiations so far, and with a view to developing a set 
of multilateral commitments on all elements of the mandate, the Negotiating Group recommends that 
it continue to intensify its negotiations on the basis of Members' proposals, as reflected currently in 
document TN/TF/W/43/Rev.4 as well as new proposals that are tabled. Without prejudice to individual Member's positions on individual proposals contained in that document, a list of elements 
drawn from it is provided below to facilitate furthe r negotiations. In carrying out this work and in 
tabling further proposals, Members must be mindful of the overall deadline for finishing the 
negotiations and the resulting need to move into fo cussed drafting mode early enough in 2006 so as to 
allow for a timely conclusion of text-based ne gotiations on all aspects of the mandate.   TN/TF/W/72 
Page 2  
 
 5. Work needs to continue and broaden on the pr ocess of identifying individual Member's trade 
facilitation needs and priorities, and the cost im plications of possible measures. The Negotiating 
Group recommends that relevant international organiza tions be invited to continue to assist Members 
in this process, recognizing the important contri butions being made by them already, and be 
encouraged to continue and intensify their work mo re generally in support of the negotiations.     
6. In light of the vital importance of techni cal assistance and capacity building to allow 
developing countries and LDCs to fully particip ate in and benefit from the negotiations, the 
Negotiating Group recommends that the commitment s in Annex D's mandate in this area be 
reaffirmed, reinforced and made operational. To bring the negotiations to a successful conclusion, 
special attention needs to be paid to support for technical assistance and capacity building that will 
allow developing counties and LDCs to participate effectively in the negotia tions, and to technical 
assistance and capacity building to implement the results  of the negotiations that is precise, effective 
and operational, and reflects the trade facilitation needs and priorities of developing countries and 
LDCs.  Recognizing the significant amount of valuable assistance already being provided in this area, the Negotiating Group recommends that Members, in pa rticular developed ones, continue to intensify 
their support in a comprehensive manner and on a long- term and sustainable basis, backed by secure 
funding.   
7. The Negotiating Group also recommends that it d eepen and intensify its negotiations on the 
issue of S&DT,  with a view to arriving at S&DT provisions that are precise, effective and operational and that allow for necessary flexibility in implemen ting the results of the negotiations.  Reaffirming 
the negotiating mandate in this regard, especially paragraphs 2 and 3 of Annex D, the Negotiating 
Group recommends that further negotiations on S&DT  build on input presented by Members in the 
context of measures related to GATT Articles V, VIII  and X and in their proposals of a cross-cutting 
nature on S&DT.   
I. MEASURES TO IMPROVE AND CLARIFY GATT ARTICLES V, VIII AND X  
A. P
UBLICATION AND AVAILABILITY OF INFORMATION  
• Publication of Trade Regulations 
• Publication of Penalty Provisions 
• Internet Publication 
(a) of elements set out in Article X of GATT 1994 
(b) of specified information setting forth procedural sequence and other requirements for 
importing goods  
• Notification of Trade Regulations 
• Establishment of Enquiry Points/SNFP/Information Centres 
• Other Measures to Enhance the Availability of Information 
 
B. TIME PERIODS BETWEEN PUBLICATION AND IMPLEMENTATION  
• Interval between Publication and Entry into Force 
 C. C
ONSULTATION AND COMMENTS ON NEW AND AMENDED RULES  
• Prior Consultation and Commenting on New and Amended Rules 
• Information on Policy Objectives Sought 
   TN/TF/W/72 
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 D. ADVANCE RULINGS  
• Provision of Advance Rulings 
 
E. APPEAL PROCEDURES  
• Right of Appeal 
• Release of Goods in Event of Appeal 
 
F. OTHER MEASURES TO ENHANCE IMPARTIALITY AND NON-DISCRIMINATION  
• Uniform Administration of Trade Regulations 
• Maintenance and Reinforcement of Inte grity and Ethical Conduct Among Officials 
(a) Establishment of a Code of Conduct 
(b) Computerized System to Reduce/Eliminate Discretion 
(c) System of Penalties 
(d) Technical Assistance to Create/Build up Ca pacities to Prevent and Control Customs 
Offences 
(e) Appointment of Staff for Education and Training 
(f) Coordination and Control Mechanisms 
 
G. FEES AND CHARGES CONNECTED WITH IMPORTATION AND EXPORTATION  
• General Disciplines on Fees and Charges Imposed on or in Connection with Importation 
and Exportation 
(a) Specific Parameters for Fees/Charges 
(b) Publication/Notification of Fees/Charges 
(c) Prohibition of Collection of Unpublished Fees and Charges 
(d) Periodic Review of Fees/Charges 
(e) Automated Payment 
• Reduction/Minimization of the Number and Diversity of Fees/Charges   
 H. F
ORMALITIES CONNECTED WITH IMPORTATION AND EXPORTATION  
• Disciplines on Formalities/P rocedures and Data/Documentation Requirements Connected 
with Importation and Exportation 
(a) Non-discrimination 
(b) Periodic Review of Formalities and Requirements 
(c) Reduction/Limitation of Formalities and Documentation Requirements 
(d) Use of International Standards 
(e) Uniform Customs Code 
(f) Acceptance of Commercially Available Information and of Copies 
(g) Automation 
(h) Single Window/One-time Submission 
(i) Elimination of Pre-Shipment Inspection 
(j) Phasing out Mandatory Use of Customs Brokers  
 TN/TF/W/72 
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 I. C
ONSULARIZATION  
• Prohibition of Consular Transaction Requirement 
 
J. BORDER AGENCY COOPERATION  
• Coordination of Activities and Requirement of all Border Agencies 
 
K. RELEASE AND CLEARANCE OF GOODS  
• Expedited/Simplified Release and Clearance of Goods 
(a) Pre-arrival Clearance 
(b) Expedited Procedures for Express Shipments 
(c) Risk Management /Analysis, Authorized Traders 
(d) Post-Clearance Audit 
(e) Separating Release from Clearance Procedures 
(f) Other Measures to Simplify Customs Release and Clearance 
• Establishment and Publication of Average Release and Clearance Times 
 L. T
ARIFF CLASSIFICATION  
• Objective Criteria for Tariff Classification  
 
M. MATTERS RELATED TO GOODS TRANSIT  
• Strengthened Non-discrimination 
• Disciplines on Fees and Charges 
(a) Publication of Fees and Charges and Prohibition of Unpublished ones 
(b) Periodic Review of Fees and Charges 
(c) More effective Disciplines on Charges for Transit 
(d) Periodic Exchange Between Neighbouring Authorities 
• Disciplines on Transit Formalities and Documentation Requirements 
  (a) Periodic Review 
  (b) Reduction/Simplification   (c) Harmonization/Standardization   (d) Promotion of Regional Transit Arrangements   (e) Simplified and Preferential Clearance for Certain Goods 
  (f) Limitation of Inspections and Controls 
  (g) Sealing   (h) Cooperation and Coordination on Document Requirements   (i) Monitoring   (j) Bonded Transport Regime/Guarantees  
• Improved Coordination and Cooperation 
(a) Amongst Authorities 
  (b) Between Authorities and the Private Sector 
• Operationalization and Clarification of Terms 
  TN/TF/W/72 
 Page 5 
 
 
 II. PROVISIONS FOR EFFECTIVE COOPERATION BETWEEN CUSTOMS AND 
OTHER AUTHORITIES ON TRADE FACILITATION AND CUSTOMS COMPLIANCE 
• Multilateral Mechanism for the Exchan ge and Handling of Information 
 III. CROSS-CUTTING SUBMISSIONS 
1. Needs and Priorities Identification 
• General tool to assess needs and priorities and current levels of trade facilitation  
• Take result of assessment as one basis for est ablishing trade facilitation rules, arranging 
S&D treatment and providing technical assistance and capacity building support   
 
2. Technical Assistance and Capacity Building 
- Technical Assistance and Capacity Buil ding in the Course of the Negotiations 
 
• Identification of Needs and Priorities 
• Compilation of Needs and Priorities of Individual Members 
• Support for Clarification and Educative Process Including Training  
 
- Technical Assistance and Capacity Building Beyond the Negotiations Phase 
 
• Implementation of the Outcome 
• Coordination Mechanisms for Implementing Needs and Priorities as well as Commitments  
  
3. Multiple-Areas 
• Cost Assessment  
• Inter-Agency Cooperation 
• Inventory 
• Timing and Sequencing 
  
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