. /.   WORLD TRADE  
ORGANIZATION  TN/TF/W/124 
4 July 2006 
 (06-3213) 
Negotiating Group on Trade Facilitation Original:   English 
 
 
COMMUNICATION FROM HONG KONG, CHINA AND SWITZERLAND 
 
 
 The following communication, dated 30 June 2006,  is being circulated at the request of the 
Delegations of Hong Kong, China and Switzerland. 
_______________ 
  
REDUCTION/LIMITATION AND PERIODIC REVIEW  
OF FORMALITIES AND DOCUMENTATION REQUIREMENTS 
 
1. Hong Kong, China submitted a proposal for im proving relevant aspects of Article VIII of 
GATT 1994 in document TN/TF/W/31.  Having rega rd to feedback received from Members, Hong 
Kong, China and Switzerland in this submission set out a textual proposal aiming to achieve 
reduction/limitation and periodic review of fo rmalities and documentation requirements. 
Textual Proposal
 
• Members shall minimize the inci dence and complexity of im port and export formalities and 
decrease and simplify import and export documen tation requirements to ensure that such 
formalities and requirements are no more admini stratively burdensome or trade restrictive 
than necessary1 to achieve their legitimate objectives and are applied in an efficient manner so 
as not to constitute unnecessary obstacle to trade. 
                                                      
1 Determining whether formalities and requirements are more trade restrictive than necessary to fulfil 
their legitimate objectives involves a process of consider ing and weighing a number of  factors.  These factors 
include: 
(i) the importance of the legitimate objectives to the Member concerned; 
(ii) the extent to which the formalities and requirements contribute to the achievement of 
the legitimate objectives; 
(iii) the restrictive effect the re quirements have on trade; 
(iv) the reasonable availability of alternative formalities and requirements that may 
achieve the legitimate objectives.  In determining  whether alternative formalities and 
requirements are reasonably available, th e economic, technical and administrative 
feasibility of such alternative formalities and requirements would have to be taken 
into consideration by the Member concerned; and 
(v) the cost including administrative, implem entation and compliance costs associated 
with the formalities and requirements and the benefits derived from them. 
After considering the above factors, the formalitie s and requirements in question would deem to be 
more trade restrictive than necessary if it is determined that: 
 (a) alternative formalities and requirements are reasonably available and significantly 
  less trade restrictive and they can achieve the legitimate objectives to the same or 
  greater extent;  or 
 (b) the trade restrictiveness of the formal ities and requirements being examined is  
  disproportionate to the legitimate objectives;  or 
 (c) the costs of the formalities and requi rements under examination are significantly 
  excessive to their benefits. TN/TF/W/124 
Page 2 
 
 
  • Any such formalities or requirements shall not  be maintained if the circumstances or 
objectives giving rise to their adoption no longer exist. 
• Each Member shall review its formalities and re quirements at reasonable and regular intervals, 
taking into account relevant new information and business practices, availability and adoption 
of techniques and technology, international best practices and input from interested parties 
including the private sector. 2 
• Special and Differential Treatment, Tec hnical Assistance and Capacity Building  
 The co-sponsors propose that these issues be taken forward through the development of a 
horizontal mechanism that would, among others, take  account of the needs, priorities, cost concerns 
and implementation capacities of developing a nd least-developed Members in relation to 
commitments.  A number of relevant submissions on these issues have been made to the Negotiating 
Group on Trade Facilitation. 
 
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2 This self-initiated review shall not affect Memb ers' rights and obligations under paragraph 2 of 
Article VIII of GATT 1994.