WORLD TRADE  
ORGANIZATION  TN/TF/W/87 
4 April 2006 
 (06-1602) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM EUROPEAN COMMUNITIES,  
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU,  
KINMEN AND MATSU, AND SWITZERLAND 
  
 The following communication, dated 4 April 2006, from the Delegations of the European 
Communities, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, and 
Switzerland, is being circulated in advance of  the Negotiating Group meeting of 5-7 April. 
 
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PROPOSALS ON AUTHORIZED TRADERS 
  
I. INTRODUCTION 
1. The following proposals on authorized trader  mechanisms have been prepared for 
consideration by Members.  The proposals ar e based on discussions in the Trade Facilitation 
Negotiating Group and the previous proposals as compiled in document TN/TF/W/43/Rev. 5.  
A. S
PECIAL AND DIFFERENTIAL TREATMENT , TECHNICAL ASSISTANCE AND CAPACITY 
BUILDING  
2. Considering the challenges that some developing and least-developed Members may meet in 
implementing authorized trader mechanisms, tr ansition periods and other necessary flexibilities 
should be granted where Members lack the capacity to implement the relevant disciplines that may 
result from the negotiations.  Technical assistance and capacity building may be necessary to take 
reforms forward and address the cost concerns of  developing and least-developed countries.  The 
sequencing of reforms is also important, not least  as effective authorized trader mechanisms are 
dependent on the use of risk management techni ques.  Members, especially developing and least-
developed Members, should continue to identify thei r needs and priorities in relation to authorized 
trader schemes.  Developed Members and relevant international organizations should continue to 
work on practical ways to assist these Members in this process and help design and implement, where 
required and requested, risk management projects and authorized trader mechanisms.  
3. Notwithstanding the above, it is worth recalling th at, in the medium term, the introduction of 
authorized trader facilities saves government money and reduces the burden on customs, since it frees 
customs resources to concentrate on higher risk transactions;  it reduces the percentage of physical inspections or consignment – by-consignment in spections, and places more of the burden of 
demonstrating and maintaining complia nce with the traders themselves. 
 
 
. /. TN/TF/W/87 
Page 2  
 
  B. P
ROPOSALS  
• Members shall design and apply simplified impor t and export formalities for traders which 
meet specific criteria (“authorized traders”), providing in particular for more rapid release and clearance of consignments, a lo wer incidence of physical insp ections, and facilitations with 
regard to duty payments, and documentation and data.  
 
• The specific criteria may include traders having (1) an appropriate record of compliance with 
import and export requirements;  (2) a system of managing records to allow for necessary controls;  (3) financial solvency (including , where appropriate, provision of a sufficient 
security/guarantee); and  (4) an appropriate system of security and safety standards (e.g., 
preventing unauthorized access to loading areas).  
 
• The specific criteria shall not be designed or a pplied so as to afford or create arbitrary or 
unjustifiable discrimination or disguised restrictions on international trade.  
 
• Members shall use objective risk management te chniques in the assessment of any application 
for authorized trade status. 
 
• Traders, including small- and medium-sized en terprises, in the territories of all Members, 
including developing and least-developed countries, shall have the right to apply for 
authorized trader status.  
 
• The specific criteria to qualify as an authorized  trader, along with all necessary information 
on how to apply for authorized trader status, sh all be published and made readily available to 
all interested parties.  
 
• Members shall draw upon relevant internationa l standards and instruments as a basis for 
authorized trader schemes, where such standa rds and instruments exist, except when they 
would be an inappropriate or ineffective mean s for the fulfilment of the legitimate objectives 
pursued. 
 
 
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