WORLD TRADE  
ORGANIZATION  TN/TF/W/6 
28 January 2005 
 (05-0359) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM THE EUROPEAN COMMUNITY  
AND ITS MEMBER STATES 
  
 The following communication, dated 24 January 2005, from the Delegation of the European Commission, is being circulated in advance of the Negotiating Group meeting of 7 and 9 February. 
 
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CLARIFICATIONS AND IMPROVEMENTS TO GATT ARTICLE X  
(“PUBLICATION AND ADMINISTRATION OF TRADE REGULATIONS”) 
 
 1. This document is a first EC contribution to the Negotiating Group on Trade Facilitation.  The 
document proposes a number of clarifications and improvements to GATT Article X to achieve 
greater transparency and better administration of regulations affecting border crossing trade.  The 
proposals if adopted will help reduce the amounts of time and money that are wasted because of 
unclear and outdated customs and border procedures.   They will result in a more transparent and 
predictable trading environment for companies, especi ally small ones, and result in cost savings for 
governments.  The potential gains for all Members, both developed and developing, are high.  The 
proposals made below take up ideas suggested by Me mbers in the previous work of the Council on 
Trade in Goods, priorities of the business community  (including small- and medium-sized enterprises 
– SME’s), and non-tariff barriers notified by Memb ers in the NAMA negotiations.  The proposals are 
modelled on provisions that exist in other WTO Agre ements, and are thus familiar to Members.  The 
EC plans to follow up this contribution with further submissions on GATT Article VIII, GATT 
Article V and technical assistance and development issues.   
A. P
UBLICATION AND AVAILABILITY OF INFORMATION  
2. The publication and ready availability of info rmation on customs laws and procedures, and 
other rules affecting imports, exports and goods in tr ansit is necessary to assist traders in day-to-day 
management of their transactions.  It also encour ages a co-operative relationship between the trading 
community and customs and other public administrati ons.  In the light of this, the EC proposes the 
following clarification and improvement of GATT Article X:   
1. A provision requiring Members to publish and make easily available, on a non-
discriminatory basis, the following measures and information to any interested 
parties:   
- All relevant laws, regulations, admin istrative guidelines, decisions and 
rulings of or having general application;   TN/TF/W/6 
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 - Information on customs and other border-related agency processes 
(including port, airport and other en try-point procedures and relevant forms 
and documents);   
- Conditions for different forms of customs treatment;   
- Appeal procedures (including standar d times and conditions for appeal); 
- All fees and charges applicable to import, export and transit procedures and 
requirements;   
- Agreements with any other country or count ries relating to the above issues;   
- Customs’ and other government agencies’ management plans relating to 
implementation of WTO commitments.  This could include standard 
processing times or relevant reform and modernisation programmes;   
- All significant amendments to the above.   
 2. To help ensure the ready availability of  the above information, there should be an 
officially  designated medium, and where feasible and possible, access to the 
information on-line.  Information should  be presented in a simple and accessible 
manner. 
  3. The EC supports a requirement to  establish enquiry points or trade desks
, providing 
information on all the above measures and information, for use of governments and 
traders on a non-discriminatory basis.  Such prov isions could be based on provisions 
on enquiry points in certain WTO Agreements such as TBT and SPS. 
 
B. PRIOR CONSULTATION ON NEW AND AMENDED RULES AND TIME PERIODS BEFORE ENTRY 
INTO FORCE  
3. Trust and cooperation between governmental bodies involved in cross-border trade and the 
trading community is a vital element of both trade facilitation and better contro ls.  Prior consultation 
on new or amended rules and procedures is useful both for administrations and traders in order to 
ensure predictability and good regulation, includin g the avoidance of unnecessary barriers to trade, 
and encourages compliance by traders.  Early c onsultation with affected traders also helps 
governments to avoid mistakes, or to introduce ex cessive regulation not tailored to business needs, 
and this will tend to save money for governments a nd business alike.  Prior consultation has proven a 
very useful feature of other WTO Agreemen ts.  The EC therefore proposes the following 
improvements to Article X:   
 4. A provision requiring consultation betw een interested parties, notably governments 
and the private sector, on proposed new rules and procedures applied to import and export administration and goods in transit.   Such a consultation requirement could 
include the establishment of a regular consultative mechanism on rules and 
procedures with representative private sector  bodies including importers, exporters, 
carriers, chambers of commerce, etc.   
  TN/TF/W/6 
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  5. There should be adequate time peri ods for comment on proposed rules and 
procedures.  A minimum period could be agreed subject to an exception where urgent problems arise or threaten to arise.  The consultation should also take place at a 
stage where comments can be discussed and taken into account.  There should also be an adequate time period between the publication of rules and their 
implementation. 
  6. Notice of proposed rules and procedures on which comments are invited should be 
accompanied by a statement of the policy objectives sought, etc. 
 
C. A
PPEAL PROCEDURES AND DUE PROCESS  
4. The clarification of GATT Article X concerning th e right of appeal against customs and other 
agency rulings can facilitate trade and help en sure the effective implementation of rules and 
procedures.  Administrative appeal procedures can de liver solutions for traders more rapidly than if 
they have to use courts, and for administrations are a much cheaper alternative to courts.  A good 
example of how trade facilitation also reduces costs for governments.   
5. Specifically, the EC proposes that all Members would adopt the following procedures (which 
many have in place already):   
 7. For imports, exports  and goods in transit, there should  be an obligation to provide a 
non discriminatory, legal right of appeal against customs and other agency rulings 
and decisions, initially within the same age ncy or other body, and subsequently to a 
separate judicial or administrative body.  A standard time should be set for resolution 
of minor appeals at administrative level. Procedures for appeal should be easily 
accessible, including to SME's, and cost s should be reasonable and commensurate 
with costs in providing for appeals.  Companies should have the right to be 
represented at all stages of appeal procedu res by an agent or legal representative – a 
request of small companies.   
 
 8. Where a disputed decision is the subject of an appeal, goods  should normally be 
released and the possibility be available in  given circumstances for duty payment to 
be left in abeyance.  This should be subject , where required by national legislation, to 
the provision of a guarantee, such as a su rety or deposit.  Such a provision can be 
seen as extending the scope of the requiremen t in Article 13 of the Customs Valuation 
Agreement for all WTO Members to make prov ision for goods release in the event of 
delays in the determination of customs value.  
 
D. COSTS AND BENEFITS OF IMPROVING GATT  ARTICLE X AND DEVELOPMENT CONCERNS  
6. As noted above, greater transparency and pr edictability is a major demand of the business 
community, above all SME’s, who cannot afford to spend a lot of time researching customs and other 
import and export procedures, and who need simple  and standardised procedures.  The measures 
proposed above should therefore save costs for business.  They will also reduce government 
expenditure in a number of ways – for example by cutting down on the human resources previously needed to answer questions from business, by reduc ing court time, and by reducing the risk of poorly 
thought out regulations and procedures that imply a waste of administrative and financial resources.  
7. However, even though all the above proposals are desirable in themselves and will eventually 
save money for traders and governments, there may be some modest start-up costs.  In some cases, 
technical and other trade-related assistance may be needed for developing countries, especially LDCs, 
if they lack the resources to implement the proposal s.  In particular, technical assistance may be TN/TF/W/6 
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 needed for individual LDCs to publish rules and pr ocedures, establish enquiry points, or provide for 
advance rulings and administrative appeals.  The EC would be prepared to consider favourably 
requests for technical assistance in these areas made by developing-country partners, in the framework of the EC’s development assistance.  
8. In addition to providing assistance, the EC be lieves it would be quite  reasonable to provide 
time for developing countries to implement such pr oposals as a means to make special and differential 
treatment precise, effective and operational.  The EC recognises that LDCs, according to paragraph 3 
of the 1 August 2004 mandate, shall only be requ ired to undertake commitments to the extent 
consistent with their individual development, fina ncial and trade needs or their administrative and 
institutional capacities.  The EC hopes nonetheless that LDCs, particularly if provided with assistance, 
will recognise the benefits and savings of the pro posals made above and commit themselves to such 
transparency and good practice – in fact we believe the majority do so already.   
 
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