RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/80/Rev.1
22 September 2000
(00-3786)
Council for Trade in Goods  
TRADE FACILITATION
WORK UNDERTAKEN BY INTERGOVERNMENTAL ORGANIZATIONS
Background Note by the Secretariat
Revision
(i) At its informal meeting of 7 June 2000, the Council for Trade in Goods requested the Secretariat
to update its background notes (documents G/C/W/80 and G/C/W/80/Add.1) on work already done or
being done on the subject of trade facilita tion in other interna tional organizations.   The present revised
note replaces the information contained in those documents.
(ii) This revised background note outlines in gr eater detail initiatives on trade facilita tion undertaken
in some regional and other intergovernmental fora (see Section B).  To the extent available, the note alsoincludes information on trad e facilita tion-related technical assistance activities of the intergovernmental
organizations covered.
(iii) Most of the information in Section A was supplied by the resp ective intergovernmental
organizations, and has been supplemented by other re levant information from official documents and
information available on the world-wide-web.  The information contained in Section B relies in large parton official documents and information from the world-wide-web.G/C/W/80/Rev.1
Page 2
TABLE OF CONTENTS
A. TRADE FACILITATION WORK UNDERTAKEN BY INTERGOVERNMENTAL ORGANIZATIONS ............3
1. UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD)...3
2. UNITED NATIONS ECONOMIC COMMI SSION FOR EUROPE  (UN/ECE).................10
3. WORLD CUSTOMS ORG ANIZATION (WCO)..................................................................13
4. WORLD BANK................................................................................................................... ......21
5. INTERNATIONAL MONET ARY FUND (I MF)...................................................................22
6. INTER-AMERICAN DEVELO PMENT BANK (IABD) ......................................................23
7. INTERNATIONAL TRADE CENTRE   UNCTAD/WT O (ITC)..........................................23
8. INTERNATIONAL MARITIME ORGANIZATION (IMO)...............................................23
9. INTERNATIONAL CIVIL AVIATIO N ORGANIZATION  (ICAO)..................................25
10. ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
(OECD)......................................................................................................................... ..............26
11. UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW
(UNCIT RAL) ..................................................................................................................... ........29
B. REGIONAL AND OTHER INTERGOVERNMENTAL TRADE FACILITATION INITIATIVES ....................29
1. ASIA-PACIFIC ECONOMIC COOPERATION (APEC) ....................................................29
2. ASSOCIATION OF SOUTHEAS T ASIAN NATIONS  (ASEAN) .......................................31
3. THE ASIA-EUROPE MEETING (ASEM).............................................................................34
4. FREE-TRADE AREA OF THE AMERICAS  (FTAA) .........................................................36
5. COMMON MARKET OF TH E SOUTH (ME RCOSUR).....................................................39
6. G7 INITIATIVE ON HARMONIZATION AND STANDARDIZATION OF
CUSTOMS DATA RE QUIREMENTS ...................................................................................40
C. A NNEXES ............................................................................................................................... ......44
ANNEX I: UN/ECE RECO MMENDATI ONS...................................................................................44
ANNEX II: EXPLANATION OF ED I AND UN/ED IFACT...............................................................48
ANNEX III: INTERNATIONAL CONVENTION ON THE SIMPLIFICATION AND
HARMONIZATION OF CUSTOMS PROCEDURES (KYOTO CONVENTION):
REVISED GENE RAL ANNE X........................................................................................50
ANNEX IV: INDEX  OF SPECIFIC ANNEXES OF THE REVISED KYOTO CONVENTION ........65
ANNEX V: THE ANNEXES OF THE WC O ISTANBUL C ONVENTI ON.......................................66
ANNEX VI: THE ANNEXES OF THE WC O NAIROBI C ONVENTION..........................................69
ANNEX VII: OTHER WCO CONVENTI ONS......................................................................................70
ANNEX VIII: WCO RECO MMENDATI ONS ........................................................................................73
ANNEX IX: OVERVIEW OF WCO INTE RNATIONAL CUST OMS NORMS.................................76
ANNEX X: DETAILED OVERVIEW OF THE IMO CONVENTION ON FACILITATION OF
INTERNATIONAL MARITIME TRAFFI C (FAL) AND ITS AMENDMENTS ...........77
ANNEX XI: OVERVIEW OF UNCITRAL WORK RELEVANT TO TRADE FACILITATION......79G/C/W/80/Rev.1
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A. TRADE FACILITATION WORK UNDERTAKEN BY INTERGOVERNMENTAL ORGANIZATIONS
1. UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT (UNCTAD)
1.1 UNCTAD became involved in trade facilitation work in 1970 when it was agreed, within the
ECE context, on the need for facilitation work to be co-ordinated on a global basis and for the existingtechnical functions of the United Nations to be strengthened in this area.  The regional economic
commissions agreed that the United Nations Development Program (UNDP) provided an appropriate
framework for an interregional project to be attached to UNCTAD.  As the work expanded, it became
necessary to separate the UNDP-financed technical assistance activities and the substantive UNCTAD
secretariat work.  In 1973, UNCTAD and the ECE ag reed that UNCTAD would provide secretariat
technical expertise on a global basis.  In 1975, a separate unit in the secretariat was established called the
Special Programme on Trade Facilitation (FALPRO).
1.2 FALPRO (which was subsequently absorbed by the Special Programme on Trade Efficiency -
see below) did not report to any of the bodies wi thin UNCTAD's permanent organization structure and
was not part of UNCTAD's policy or negotiation work.  Its attachment with UNCTAD enabled it to work
globally with the regional economic commissions, particularly the UN/ECE, and with the InternationalTrade Centre (ITC).  The original terms of reference of FALPRO essentially aimed at ensuring the full
participation of developing countries in international trade facilitation work and in dealing with
facilitation matters cross-sectorally with other UNCTAD programmes such as the commodity
agreements;  generalized system of preferences;  transport work;  harmonization of customs procedures,
etc.  The means to achieve this were to create representative national facilitation bodies and to arrangetraining of officials from the countries concerned in order to enable them to carry out trade facilitation
work in their own countries and to participate in international meetings.
1.3 In 1992, at the UNCTAD VIII Cartegena Conference,
1 it was agreed that an Expert Working
Group on Trade Efficiency be established within UNCTAD.  While taking due account of work done inother international organizations, the Group "would seek to support, accelerate and enhance these
initiatives...The Group would produce guidelines needed to take concrete steps towards trade efficiency
at the national and international levels, especially in  developing countries...The culmination of the work
of the group would be an international symposium on trade efficiency, which was to be held in 1994."
2
The symposium was to reinforce international discussion on the promotion of harmonized national and
regional infrastructures for trade and trade efficiency .  At the secretariat level, UNCTAD's work in the
context of the inter-secretarial FALPRO was incorporated into the Special Programme for Trade
Efficiency (SPTE).  In the 1996 re-organization of UNCTAD, SPTE was transformed into the Division of
Services Infrastructure for Development and Trade Efficiency (SITE) and trade facilitation activities fall
under its Trade Facilitation Section.  The objective of SITE is to simplify and harmonize trade procedures
world-wide and give governments and traders access to advanced technologies and information networks.
1.4 At the conclusion of UNCTAD X in Bangkok, the Plan of Action3 of the Bangkok Declaration4
provides a new mandate for the UNCTAD secretariat, in particular regarding transport, trade facilitation
and e-commerce:
“150. UNCTAD’S work should focus on its comparative advantage in the fields of the
applied economics of transport, trade facilitation and multimodal transport. UNCTAD
                                                     
1  UNCTAD VIII, held at Cartegena de Indias, Colombia, February 1992.
2  "The Cartagena Commitment", UNCTAD VIII, February 1992.
3  Plan of Action (TD/386), Bangkok, February 2000.
4  Bangkok Declaration: Global Dialogue & Dynamic Engagement (TD/387), Bangkok, February 2000.G/C/W/80/Rev.1
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must treat problems relating to the provision of, and access to, international transport
services as an integral part of international support measures designed to enable the trade
and industry of developing countries and particularly the least developed, land-locked and
transit developing countries to participate more effectively in the globalization processes.
152. In close co-operation with other relevant international organizations, UNCTAD
should continue to undertake studies on the implementation of multimodal transport rules.
156. UNCTAD should contribute to informing international debates on the
developmental impact of global information networks addressing, in particular,
developing countries’ specific problems, such as access to information technology,
infrastructure constraints and build-up of human resource capacity”.
SITE carries out a wide variety of activities which are described below.5
United Nations Symposium on Trade Efficiency
1.5  The United Nations International Symposium on Trade Efficiency was held, at Ministerial level,
in Columbus, Ohio, in October 1994.  The Columbus Ministerial Declaration on Trade Efficiency6
contains the substantive outcome of the Symposium.  The Symposium noted the signing of the Final Actof the Uruguay Round in Marrakesh as "the successful conclusion of years of negotiations on the macro-
economic framework required for the emergence of an open, predictable, secure and non-discriminatory
trading system.  However, efforts made to secure an open trade environment will not bear their fullbenefits unless the enterprises of all nations can import and export efficiently...[delegates] have gathered
to find solutions to these micro-economic issues of international trade".
1.6 The Symposium concluded that "adoption of trade efficiency measures can significantly lower
the costs of trade transactions.  Estimates place the costs of trade transactions at 7 to 10 per cent of thetotal value of world trade". The Columbus Ministerial Declaration put forth a set of practical actions,
recommendations and guidelines for governments, international and national organizations and
enterprises.  They addressed six areas which were considered ripe for tangible results for international
trade:  customs, transport, banking and insurance, information for trade, business practices, and
telecommunications.  UNCTAD's role, as agreed at the symposium, was to act as the focal point in the
implementation of the Declaration, which would require co-ordinated efforts by many national and
international bodies, particularly the United Nations.  In particular, the symposium called for
"coordination with the GATT/WTO and all United Nations regional economic commissions...[as] of
particular importance in facilitation of trade".
1.7 The Declaration called for, in the area of customs, "governments, through their customs
authorities, to simplify procedures for determining customs value, which can cause significant delays in
the clearance of import consignments, through the use of the customs valuation method prescribed in the
GATT Agreement, as administered by the Customs Co-operation Council, which is administratively less
complex than other methods currently in use in some countries...". In addition, the Declaration called for
governments to "avoid as far as possible the use of pre-shipment inspection agencies to carry out
customs-related activities.  While recourse to such services might be a necessity in certain circumstances,it should be regarded as an interim measure and conducted in conformity with the provisions of the
Agreement on Preshipment Inspection anne xed to the Marrakesh Agreement...".
                                                     
5  For more information, visit the UNCTAD web site: www.unctad.org
6 "Columbus Ministerial Declaration on Trade Efficiency", Report of the United Nations International
Symposium on Trade Efficiency, TD/SYMP.TE/6, November 1994.G/C/W/80/Rev.1
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Trade Point Programme
1.8 UNCTAD's Trade Point Programme was launched in 1992 as part of a larger campaign towards
improving trade efficiency. Its main objective is to facilitate the access for small and medium-sized
enterprises (SMEs) to international markets, in particular using newly emerging electronic commerce
technologies.  Through the electronically interconnected network of Trade Points, known as Global TradePoint Network (GTPNet
7), in many countries of the world, SMEs gain access to the latest information
and telecommunication technologies and services, and this enables them to get their products known to
potential customers and find business partners in other countries. These services are provided at a
reasonable cost, with an overall objective of reducing the risk of exclusion and increasing the
participation of SMEs, particularly from developing countries and countries in transition, in international
trade.
1.9 Trade points may be government-subsidized; entirely private-sector operations; or mixed public-
private ventures.  They may be based in such instit utions as ministries, trade promotion organizations or
universities.
1.10 The Global Trade Point Network, launched at  the Columbus Symposium, is an electronic
network inter-linking the central web site of the Trade Point Programme and web sites of individual
Trade Points. It has recently undergone a substantial renovation in order to keep pace with the most
recent market and technological trends. Evidence indicates that the proliferation of new sites and
information services on the Internet often does not make it easier for users to find the right information.
Nor does it automatically guarantee information providers that they will find customers. UNCTAD TradePoint administrators believe that demand seems to emerge for: (a) quality instead of quantity of
information; (b) complete, not rudimentary inform ation; (c) trustworthy information, and (d) user-
friendly access to information.  The new GTPNet is conceived so as to embrace these trends. The
approach chosen is based on a decentralized structure and active involvement of Trade Points with a view
to empowering them to eventually b ecome true owners of the system.
1.11 The redesigned Global Trade Point Network, or GTPNet, is a database-driven Internet (with
password-protected areas) for providing international traders with up-to-the-minute listings of potential
buyers and sellers of products and services and other trade-related information not usually available
online.  The clients - most of which are small and medium-sized enterprises - access the network throughUNCTAD's "trade points", which compile, standardize, centralize and update information on a national
or local basis.
1.12 Interactivity and decentralization are the keywords of the new network architecture, which uses
state-of-the-art tools for uploading, downloading, automatically updating and searching for information.
On the GTPNet, information is shared through central databases, making data retrieval easier and faster.
A full text search capability, and customized search tools including user-defined fields for sorting andmatching, are available.  Electronic trading opportunities are posted for registered clients for an 8-day
period before being listed on the publicly accessible part of the site.  All the information on each trade
point has been formatted into standardized categories and codes, and the trade points in turn periodically
verify the data on their member enterprises.
1.13 Three types of information can be found on the GTPNet website:
-- General information maintained by UNCTAD, including a list of trade points world-
wide, their home pages and status, relevant guidelines and frequently asked questions;
                                                     
7  For more information, visit the GTPNet web site: www.gtpnet-e.comG/C/W/80/Rev.1
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-- Specific information on individual trade points, providing details on their services and
fees, direct business contacts, and national trade regulations, posted by the trade points
via online secured forms or automated replication processes; and
-- Open areas for the exchange of information, such as electronic trading opportunities or
technology developments, and for user feedback, a discussions database, newsletters andspecial announcements. A knowledge management framework will be set up shortly to
make this type of pooling of knowledge, information and experience among trade points
even easier.
1.14 There are currently more than 200 trade points in 130 countries, of which 54 are operational
8. As
this number continues to grow, along with the shee r volume of available business information and
quantum leaps in information technology, the GTPNet is expected to expand even further.
1.15 The long term objective is for the Trade Points to become self-sustainable and to take the
ownership of the GTPNet. The forthcoming VI World Wi de Trade Point Meeting that will be held from 6
to 10 November 2000 in Geneva, will be a great opportunity to strengthen and institutionalize the
growing community of Trade Points.
ASYCUDA 9
1.16 As concerns technical assistance under the SITE, the ASYCUDA customs software program is
the largest technical assistance project in UNCTAD.  The core of the program is a computer softwareprogram which, since 1985, has been installed in over 80 developing and transition economies throughout
the world.  It is designed to streamline and reduce customs forms and procedures and is based on and
incorporates UN/ECE and WCO Recommendations and Standards, (including those related to the
Document Layout Key), codes and other standards.  The basic idea is to rid the customs system of
outdated procedures, practices and incorporate international practices and standards in order to increasethe country's customs revenue through reduced costs and faster clearance.  The first program was
developed by UNCTAD in 1983 on micr o computers.  Since then, the program has been updated and
revised numerous times to improve capacity and performance.  The software can be adjusted to each
country's customs valuation methodology and translated into its official language.
1.17 A new improved version of ASYCUDA (ASYCUDA++) offers the traditional core features, i.e.
system administration, national configuration, tariff and masterfile maintenance, cargo manifest handling,
declaration processing and accounting. In additi on, ASYCUDA++ offers to users a number of important
new features:  one of the most important enhancements is the full implementation of the European Single
Administrative Document (SAD).  The system also has the technical ability to introduce new declaration
formats based on other regional declaration standards.  The concept of direct trader input (DTI) offers
important advantages to customs and brokers who can now enter a number of declarations locally beforeestablishing the connection to customs to submit them for processing; the concept of direct shipper input
(DSI) offers similar advantages to customs and ship pers who can now enter the manifest information in
their offices and transmit it to customs for processing; external system communication can be done
through UN/EDIFACT messages; and a modern and user  friendly tariff language has been developed
enabling customs to maintain their tariff rules and calculation algorithms without the need to do anyprogramming or recompilation of any part of the system; this language can access all declaration data
elements and link them with formulas using standa rd logical and mathematical functions.  A flexible
selectivity module provides customs with a powerful tool to significantly accelerate the goods clearance
process while at the same time improving its control capacity; it efficiently selects consignments for
inspection through selection criteria (including a random rate) which can be maintained at national,
                                                     
8  Information as of 15 July 2000
9 For more information on ASYCUDA, visit the web-site: www.asycuda.orgG/C/W/80/Rev.1
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regional and local levels.  Full auditability of the transaction files provide an additional tool to tighten the
functional security of the system.
ASYCUDA and transit issues
1.18 In May 1997, UNCTAD called an expert meeting on the use of information technologies to make
transit arrangements more effective.  The main objective of this meeting was to provide opportunities to
experts to assess information technologies for faci litating transit transport operations, strengthening
customs transit control and simplifying customs transit procedures.
1.19 The meeting’s recommendations highlight that “UNCTAD should in co-operation with all other
interested parties, work towards developing a transit module, in the context of ASYCUDA and ACIS.”10
Furthermore, “the transit module could cover all functions of customs control and transport monitoring of
transit goods from the beginning to the completion of the transit operation, including the release of
securities where appropriate.”
1.20 As a result of the expert meeting, ASYCUDA ++ has been enhanced to include a new module for
the management of transit procedures (the MODTRS module).  A release of this module was issued forlive testing in selected user countries in April 1999 and the fully operational module was included in an
upgraded version of the software (version 1.15) and delivered to all the user countries.
1.21 This module handles three transit documents, namely the T1, the TIR carnet and the  First
Identification Procedure (FIP). It is usable for all th e types of transit as defined in the Kyoto Convention
covering the movements from the:
-- border office of entry to an inland office (Import transit);
-- border office of entry to a border office of exit  (Through transit);
-- inland office to a border office of exit  (Export transit);-  inland office to another inland office  (Internal transit).
1.22 The three documents are different and present specific features but all apply the following
principle:  the system allows for data capture by the traders using the DTI module and/or by the customs
officers.  Upon validation of the document a message is automatically transmitted to the office ofdestination using the appropriate ASYCUDA so ftware,  A++ GATE, (ASYCUDA Global Access to
Trade Efficiency), through the national telecommunication network.  This message informs the office of
destination that a cargo should arrive within a given time period. When the cargo arrives at destination
the transit message is retrieved, the transaction is closed and a release message automatically broadcast to
the office of departure.  This functionality gives customs complete and timely information on all
operations.
1.23 The module works satisfactorily on a national scale and it has been recently enhanced by the
development of new functions such as the re-routing (change the office of destination).  As customs
receive in advance complete and timely information on all the operations and there is no need for re-
keying at the office of destination, processing delays are tremendously reduced at borders, thus
facilitating trade.
1.24 The system is technically designed for permitt ing future extension to cover the international
transit operations (data exchange of messages between countries).
                                                     
10  ACIS stands for “Advance Cargo Information System.  An overview of this programme can be found on
page 9 of this document.G/C/W/80/Rev.1
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Bilateral and regional transit agreements
1.25 Since the mid-1970s UNCTAD has offered technical assistance to help land-locked developing
countries and their transit neighbours to intensify their co-operative arrangements for the development of
transit infrastructure, institutions and services in order to facilitate faster movement of goods in transit.
This assistance is based on the recognition that high transit transport costs are a major disadvantage tolandlocked developing countries and economies in transition; moreover, long, unpredictable transit times
undermine the competitiveness of many developing countries.
1.26 The Meeting of Governmental Experts from Land-locked and Transit Developing Countries and
Representatives of Donor Countries and Financial and Development Institutions, which meets once every
two years, has provided a forum for interactive de bates and its conclusions and recommendations for
action at the national, regional and international levels have been transmitted for review and endorsementby the General Assembly of the United Nations.
1.27 Priority areas of work where achievements have been made include: assistance in negotiating
and/or implementing bilateral and regional transit agreements and arrangements; streamlining and
harmonizing administrative and customs procedures and documentation; assistance in implementingpolicies and procedures to reduce transit costs; and assistance in institution building and human resource
development in the transit sector.
1.28 Much of UNCTAD’s earlier technical assistance support work was concentrated in Africa, but
more recently, assistance has been extended to other countries and regions, notably, the newlyindependent and developing states in Central Asia where, in co-operation with the Economic Co-
operation Organization (ECO) a Transit Transport Fr amework Agreement was adopted (1998). A similar
agreement between the People’s Republic of China, Mongolia and Russia is currently being negotiated
with assistance from UNCTAD. UNCTAD continues to work closely with regional integration groupings
(ECOWAS, COMESA, SADC, ECO etc.), which play a major role in promoting regional standards,
procedures, documentation and practices designed to facilitate faster movements of goods in transit.
11
Transport
1.29 The transport sector has received the most attention of all sectors of economic activity inUNCTAD's trade facilitation work.  In particul ar, UNCTAD promotes the implementation, through
advisory services as well as technical assistance and training activities, of the concept of National Trade
and Transport Facilitation Committees (NTTFC) along the lines suggested in the UN-ECE/CEFACT
Recommendation No.4.
12  These committees bring together representatives of public and private parties
concerned with international trade and transport faci litation in a country, i.e. governmental entities,
services providers, and transport users.  Established as a consultative body, an NTTFC serves as a
national forum to establish formalities, procedures and documentation used in international transport and
trade;  its mandate is to prepare recommendations and advise on domestic and foreign policy matters
related to the development of trade and transport through proposals to the institutions concerned and to
the executive branch of the government.  UNCTAD an d the Latin American Association for Integration
(ALADI) have signed a Memorandum of Understanding  to promote jointly the creation of NTTFCs in
                                                     
11 For more information, see the recent UNCTAD studie s on transit transport issues in Africa: “Review of
progress in the development of transit transport systems in West and Central Africa” (UNCTAD/LDC/102) of 15June 1999 and “Review of progress in the development of transit transport systems in Eastern Africa”(UNCTAD/LDC/103) of 15 June 1999.
12 UN-ECE/CEFACT Recommendation No. 4  “National Trade Facilitation Bodies”
(TRADE/CEFACT/1999/11), March 1999, and its supporting document: “Creating an efficient environment for
Trade and Transport” (TRADE/CEFACT/2000/8), March 2000.G/C/W/80/Rev.1
Page 9
Latin America.  In a particular sub-region these committees can serve as focal points to monitor and co-
ordinate regional activities on trade facilitation.
1.30 Other activities in the transport area have concentrated on the increasingly multimodal transport
operations of transport services, on the use of different terms of shipment (e.g. cif, fob) with special
emphasis on shipping and ports.  The latter work is often coordinated with the International MaritimeOrganization (IMO), which concentrates on technical and safety problems in shipping and ports.  The
technical assistance focuses on advice, management a ssistance and training with regard to economics and
management of shipping, and shipping companies, in cluding corporate planning and fleet operation.  It
provides advice on the implementation of conventions negotiated under UNCTAD and on maritime
administration and maritime law.  With regard to ports, UNCTAD's assistance has concentrated on both
the economic and commercial aspects.  This includes port operations, administration and organization
(including legislation and regulations), financial management, cost control and information systems.
ACIS
1.31 UNCTAD has developed and is installing a transport management tool called the Advance Cargo
Information System, or ACIS.  The objective is to counter the high cost of transportation resulting fromextended door-to-door transit times.  ACIS is a set of computer applications designed to produce
management information to address multimodal cargo transit and transport problems.  ACIS has four
main modules, each tracking cargo on a mode or interface: rail (RailTracker), port (PortTracker),
lake/rivers (Lake/RiverTracker) and road (RoadTracker ).  These modules are linked together through the
Backbone Information System which can interface with ASYCUDA.  These, in turn, have sub-modulesperforming different, but inter-related functions, espe cially with regard to statistics and performance
indicators.  ACIS provides improved information to help control the operations of individual transport
operators and facilitate rational corporate planning.  It is also a database facility available to parties
registered as having an interest in a consignment and its transportation, providing them with the latest
reported location and status of goods and transport equipment.  As a long term record of transportmovement data, it permits governments and institutions to analyze national, sub-regional and regional
problems and investigate alternative investment opportunities in the transport sector.
1.32 ACIS PortTracker and RailTracker modules have been installed in 15 countries and the system is
currently being implemented in another five countrie s.  Project documents are presently under negotiation
with a number of Far East Asian Countries (Sri  Lanka, Mongolia, Vietnam, Thailand), and
implementation in Nigeria, Brazil and Lebanon should start in September 2000.  Installation in the Port of
Bandar-Abbas in the Islamic Republic of Iran, after an international meeting in Tehran, could constitute
the first step to an extension to ECO and Arabic countries.
TRAINFORTRADE
13
1.33 The TRAINFORTRADE programme aims at strengthening training capacities in developing
countries, particularly in the least developed countries  (LDCs), in the fields of international trade and
trade-related services.
1.34 To intensify the training activities in the field of legal aspects of electronic commerce, especially
for developing countries and their SMEs, a new TRAINFORTRADE course on “Legal and regulatory
aspects of electronic commerce” is currently under preparation.
                                                     
13 For more information on TRAINFORTRADE, visit the web site: www.unctad.org/trainfortradeG/C/W/80/Rev.1
Page 10
2. UNITED NATIONS ECONOMIC COMMISSION FOR EUROPE (UN/ECE)
2.1 Work on trade facilitation activities began in the ECE in 1960, following a 1959 initiative from
the Nordic countries, when it was decided to set up a Group of Experts to explore ways in which export
documents could be simplified and standardized.  In 1971, the trade facilitation work was reorganized
into the newly established Working Party on the Facilitation of International Trade Procedures, also
referred to as Working Party 4 or WP.4. Its activities we re concentrated in two areas, each carried out in a
group of experts (GE.1 and GE.2):
"the analysis of trade 'formalities' and procedures as embodied in information requirements
(whether legal, administrative, commercial or operational) of participants in international trade;
and
the development of improved transmission  methods (computerized processing and
tele-transmission) for trade information which could replace traditional paper documents."
2.2 Participants included representatives from the ECE member governments, representatives from
national trade facilitation bodies, major international organizations as well as countries not members of
the ECE.14
2.3 The work of the two expert groups has been or iented towards the following trade facilitation
objectives:
- seeking improvements in trade procedures in order to assist governments and trade participants to
be more efficient and effective while also minimizing delays and costs...thus reducing 'artificial'
barriers to increased participation in world trade;
- reducing the cost of the paperwork used in trade by seeking, in cooperation with the interests and
authorities involved, the reduction, simplification and international harmonization of theinformation and documents required for foreign trade;
- standardizing the formats (whether electronic or paper) used in transaction information flows for
administration, commerce and transport at an international level;
- ensuring that the information flow s related to the distribution of goods and services facilitate and
do not impede national industrial development or growth in external trade.
2.4 In February 1997, WP.4 was reorganized into the Centre for Facilitation of Procedures and
Practices for Administration, Commerce and Transport (CEFACT) by decision of the Committee on the
Development of Trade. In March 2000 considering that trade facilitation and electronic business were
central to the remit of the UN/ECE and to achieve improved world-wide coordination of tradefacilitation, UN/ECE modified the Centre’s name into the Centre for Trade Facilitation and Electronic
Business (UN/CEFACT) which reflected its new focus
15.  UN/CEFACT reorganized the work of the
WP.4 in order to streamline decision-making, leverage collaborative efforts and delegate technical
decision to field experts.  It works through informal technical groups; allows the full participation of non-
ECE countries, interested international organizations and recognized NGOs within its meetings andmanagement structure;  and makes use of focal points in interested UN Regional Commissions and an
inter-secretariat task force of the ECE, UNCTAD and the ITC.  UN/CEFACT also co-operates with
private business and other intergovernmental organizations which participate directly in its work.
                                                     
14 Member countries of the United Nations not members of the UN/ECE were entitled to participate in the
work of WP.4 under Article 11 of the ECE Terms of Reference.
15 See website: http://www.uncefact.orgG/C/W/80/Rev.1
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2.5 UN/CEFACT has produced 28 UN/ECE Trade Facilitation Recommendations,16 developed over
the past 37 years.  Several of these recommendations have been adopted by the International Standards
Organization (ISO) as ISO international standards.   The first Recommendation was the United Nations
Layout Key which essentially establishes a set of rules on how national trade documents should be
formulated.  Before its implementation, the information on the numerous documents needed for trade wasscattered in different places on different forms without any uniform system.  Implementation, which
intensified in the 1970's, saw the forms printed on the same size of paper with common items of
information occupying the same relative position on each form.  In the area of trade procedures, the
Recommendation 18 "Facilitation measures related to international trade procedures" is to be noted.  It
covers, inter alia , some aspects of customs procedures and pre-shipment inspection.  UN/CEFACT is
currently reviewing and updating this recommenda tion. UN/CEFACT has also developed a Compendium
of Trade Facilitation Recommendations which is currently under revision and is intended to be used as areference by those engaged in the process of simplifying, harmonizing and rationalizing trade procedures
and practices.
2.6 As a result of the work on the UN Layout Key, the importance of structured trade and business
data was recognized.  This resulted in the development of standardized codes and data elements for use inboth paper and electronic based information exchange.  These standards are compiled in a publication
called the UN Trade Data Element Directory (UNTDED), as well as in some Recommendations.  Volume
I contains definitions of data elements includ ing UN/EDIFACT and is an ISO standard (ISO 7372),
which is jointly maintained by the ECE and the ISO central Secretariat. Volume III contains the ECE
Recommendations
17.
Electronic Data Interchange (EDI)
2.7 The use of computers to carry out buying and selling between individuals, individuals and
companies, and companies and companies, known as electronic commerce, has contributed significantlyto facilitating international commerce because it is  reducing the amount of paperwork that is related to
doing business.  This can be done through the In ternet, the World Wide Web, E-mail and Electronic Data
Interchange (EDI).  EDI can be defined as the "structured exchange of data between applications in
different companies."  A structured message is fo rmatted according to a predefined arrangement of
putting the information into a file.  On paper, this wo uld be a "form."  In EDI, the format used in general
is called UN/EDIFACT or the United Nations Electronic Data Interchange for Administration,
Commerce and Transport.
2.8 UN/EDIFACT is an international standard for the formatting and sequencing of data for EDI.  It
was developed through the work of WP.4 to develop an international standard to replace the two regional
standards, which had emerged in the United States and in Europe and whose incompatibility with each
other was creating difficulties for international trade.  The UN/EDIFACT is "a set of standards,directories and guidelines for the electronic interchange of structured data, in particular related to trade in
goods or services, between independent computerized systems in different organisations, irrespective of
the type of computer or software used". In other wo rds, EDI is used for the automation of data exchange.
2.9 Within the work programme of UN/CEFACT there are activities for the review, monitoring and
evaluation of on-going developments in the information technology area in order to incorporate
appropriate new technologies, such as those related to Electronic Commerce, into its work.
Recommendation 25 (adopted by the UN Economic and Social Council as a UN Recommendation in July
1997) encourages the use of UN/EDIFACT by governme nts in their administrations and in their EDI
                                                     
16 A complete list of these Recommendations is contained in Annex I to this document.  The full texts of
the Recommendations can be accessed through the www at http://www.uncefact.org/
17  Volume II contains a User Code ListG/C/W/80/Rev.1
Page 12
communications with the private sector.  A descript ion of the technical aspects of EDI and UN/EDIFACT
is included as Annex II of this note.  Recently, in order to take advantage of information technology,
UN/CEFACT decided to asses the use of internet  technology and new techniques and methodologies to
transfer data in line with the work done over th e years  (UN/CEFACT’s Strategy for Electronic Business,
document TRADE/CEFACT/2000/21, February 2000).
Other work of UN/ECE
2.10 Another area relates to legal issues arising from trade facilitation initiatives and is based on the
recognition that the removal of legal impediments is a key requirement to enable global trade to develop
and be facilitated.  In carrying out its legal work programme, UN/CEFACT liases with other
organizations, particularly the UN Commission on  International Trade Law (UNCITRAL) and the
International Chamber of Commerce (ICC). In March 2000 the UN/CEFACT Plenary approved a
recommendation on the Electronic Commerce Agreement that proposes a model for a contractual
approach of electronic commerce operations. This approach takes into consideration the need for a
framework of basic provisions to be agreed by business entities combined with the flexibility required to
conduct day-to-day commercial transactions.
2.11 The UN/CEFACT International Trade Procedures Working Group (ITPWG) is dedicated to
identify, simplify, harmonize and align public and private sector practices, procedures and information
flows relating to international trade transactions both  in goods and related services. Its key deliverables
are:
-- development of relevant instruments and recommendations for trade facilitation, and
proposals for revision, amendment or abolition of these recommendations, in co-
operation with the other working groups;
-- evaluation of the state and progress in the implementation of trade facilitation measures;
systematic review and monitoring of the implementation of trade facilitation
Recommendations; notification to other working groups of constraints identified in the
field of international trade procedures;
-- contributions in support of and to influence related work in other relevant
intergovernmental and non-governmental organizations; and
-- provision of relevant know-how, e ducational and promotional material.
2.12 The UN/CEFACT Business Process Analysis Working Group (BPAWG) is dedicated to the
analysis of current business processes, identification of constraints and the development of proposals for
appropriate changes to business processes. Its key deliverables are:
-- analyses of business processes relevant to the mission and objectives of UN/CEFACT
using the common descriptive techniques and methodology agreed within the Centre;
-- identification of constraints to more effective business processes;-- proposals, including draft Recommendations, for more effective business processes;-- assistance to other working groups in understanding approved proposals in order to
enable them to develop solutions, based on these proposals, for the migration fromexisting to new business processes.G/C/W/80/Rev.1
Page 13
3. WORLD CUSTOMS ORGANIZATION (WCO)
3.1 The World Customs Organization was founded in 1953 as the Customs Co-operation Council
(CCC).  Established originally by 13 European countries, its membership has expanded to 151 members.
All aspects of the WCO’s work relate closely to que stions of trade facilitation.  The WCO’s mission is to
enhance the efficiency of customs administrations in the areas of compliance with trade regulations,
protection of society and revenue collection.  The WCO's main activities include:
-- examination of the technical aspects of customs systems, as well as the related economic
factors, and promotion of communication and co-operation among Members and with
other international organizations;
-- fostering of human resource development and of improvements in the management and
working methods of customs administrations and the sharing of best practices;
-- preparation of draft conventions and other legal instruments for the harmonization and
uniform application of simplified and effective customs systems and procedures
governing the cross-border movement of commodities;
-- making recommendations to ensure the uniform interpretation and application of
conventions;
-- making recommendations for the settlement of disputes concerning the interpretation or
application of the conventions;
-- furnishing interested governments with information or advice on customs matters;-- promoting co-operation between custom s administrations and between customs
administrations and the trading community to improve communication and facilitation.
3.2 While not all the aspects of the WCO's work programme can be depicted here, the various legal
instruments established and maintained under its auspices are introduced below. Due to the vast amount
of material, not all conventions can receive detailed treatment.  However, the Kyoto Convention, as the
key convention covering customs procedures, and the Istanbul Convention on temporary admission, are
described in more detail.
International Convention on the Simplification and Harmonization of Customs Procedures
(Kyoto Convention) 1973
3.3 The Kyoto Convention, agreed in May 1973, consists of two parts.  The first is comprised of 19
Articles setting out the general provisions essential for the implementation of the instrument.  The secondconsists of 31 Annexes (26 of which have entered into force), each devoted to a specific customs
procedure.
18 An Annex enters into force when five Contracting Parties have accepted it.  Each Annex
consists of a set of definitions clarifying the main customs terms used and the rules governing the
implementation of the procedure concerned.  These provisions take the form either of Standards, whose
general application and incorporation in national legislation are considered essential for harmonizationand simplification, or the form of Recommended Practices, which are provisions recognized as
constituting progress towards the harmonization and simplification of customs procedures, and whose
application is considered to be desirable.  Both categories of provisions may be accompanied by Notes,
intended to indicate ways in which the relevant Standard or Recommended Practice might be applied.
                                                     
18 The term "customs procedure" in the context of th e Kyoto Convention is not used in the narrow sense of
the treatment assigned to imported goods; it covers all provisions relating to customs activity.G/C/W/80/Rev.1
Page 14
3.4 The Kyoto Convention is open for accession by any State, and by Customs or Economic Unions.
Presently, the Kyoto Convention has 59 Contracting Pa rties.  The 31 Annexes are the real instruments of
harmonization of customs procedures, since they contain the principles intended to be incorporated in
national legislation.  At the time of accession to the Convention, a State has to accept at least one Annex.
Subsequently, each of the remaining Annexes can be accepted individually.  For the purposes of therights and obligations of a Contracting Party each of the Annexes it has accepted together with the body
of the Convention constitutes a single legal instrume nt.  Countries may select Annexes if they want to
limit their obligations to those particular sections of their legislation which they wish to modernize or to
align with international practice.
3.5 Contracting Parties which are not yet in a position to implement a particular provision of an
Annex can enter a reservation in respect of that  provision, indicating the differences between the
provisions of their national legislation and those of the Standard or Recommended Practice concerned.
Disputes regarding the interpretation or application shall be settled through negotiations. Any party may
refer a dispute to the Permanent Technical Committee of the WCO which will make recommendations on
the settlement of the dispute.
3.6 The Annexes to the Kyoto Convention, A through J, are listed below.  More detail is contained in
Annex III of this report.
Annex A: Formalities Prior to the Lodgement of the Goods Declaration
Annex B: Clearance of Goods for Home UseAnnex C: Clearance of Goods at Exportation
Annex D: Origin of Goods
Annex E: Conditional Release Proc edures and Processing Traffic
Annex F: Special Customs Procedures
Annex G: Relations between Persons Engaged in International Trade and the Customs
administrations
Annex H: Disputes and Offences
Annex J: Customs Applications of Computers
Revised Kyoto Convention (1999)
3.7 In 1999, the WCO completed a full revision of the 1973 Convention.  The goal of the revision
work was to provide customs administrations with a modern set of uniform principles for simple,
effective and predictable customs procedures that also achieve effective customs control.  The revised
Convention is intended to be the blueprint for standa rd and facilitative customs procedures in the 21st
century.
3.8 This revision was necessary as a result of the radical changes in trade, transport and
administrative techniques since the Convention had originally been adopted.  An additional reason was
that the Convention had not significantly resulted in the harmonization and simplification of customs
procedures world-wide.  In the modern international trade environment, the original structure of the
Convention and the limited obligations it imposed on administrations to apply the legal provisions rancounter to the goal of simplification and harmonization of customs procedures.  Furthermore, the original
version of the Convention had only a small number of Contracting Parties to the individual annexes, and
additionally, many Contracting Parties had entered rese rvations to the legal provisions in the annexes that
they had accepted.
3.9 The revision was completed in June 1999 when the Council of the World Customs Organization
adopted the revised texts along with a Protocol of Amendment which would give effect to the
amendments once it entered into force.G/C/W/80/Rev.1
Page 15
3.10 The existing Articles of the Convention and the provisions of its Annexes have been reviewed
and updated to ensure that they reflect modern procedures and address the requirements of both the trade
and customs administrations.  New provisions have been added and the texts now incorporate modern
methodologies to provide a balance between the customs functions of control and revenue collection with
that of trade facilitation.  The use of information technology and risk management techniques have been
integrated into the core of the revised Convention.  These will ensure that customs are able to carry out
their responsibilities more efficiently and effectively, and are able to facilitate the international movement
of goods while ensuring full compliance with national laws.
3.11 The key feature of the revised Convention is a new structure consisting of a General Annex and
ten Specific Annexes.  The General Annex contains the core procedures and practices for clearance of
goods that are common to all customs procedures.  The General Annex is obligatory for accession and
implementation by Contracting Parties.  This key A nnex contains 10 Chapters and covers areas relating
to the clearance of goods, payment of duties and taxes, customs trade co-operation, information to be
supplied by customs, and appeals in all customs matters – areas that are of concern both to customs
administrations and to the trading community.  It also  covers customs control including risk management,
audit-based controls and mutual administrative assistance between customs administrations and with
external organizations, as well as the use of information technology which provides the key to simpleprocedures while ensuring adequate customs Control.
3.12 No reservations can be entered against the Standards and Transitional Standards of the General
Annex.  However, in recognizing that many countries may not be able to commit to a number of
Standards immediately, the revised Convention provides a transition period for the present and newContracting Parties to make any necessary changes in  their national legislation in order to apply the
provisions.  Contracting Parties will have a period of up to three years to implement Standards and five
years to implement Transitional Standards.
3.13 The revised Convention has 10 Specific Annexes containing a total of 25 Chapters, each dealing
with a different customs procedure.  Contracting Parties are required to accede to only those Specific
Annexes and/or Chapters applied by their administra tion.  As in the General Annex, the Standards are
obligatory and binding on Contracting Parties accepting an Annex(es) and/or Chapters, and there is the
same transitional period for the application of the Standards.  Reservations, however, can be entered
against the Recommended Practices in the Specific Annexes.
3.14 A Management Committee which is required to meet at least once every year will administer the
revised Convention.  This will ensure that the provisions in the Convention are kept up-to-date and, if
necessary, revised at appropriate times to meet the needs of customs and trade.  The Management
Committee is also empowered to extend the time periods for implementation of the provisions of the
General Annex and Specific Annexes on request from Contracting Parties.
3.15 The revised Convention contains comprehensive Guidelines for each of the Annexes.  It was
recognized during the revision process that implemen tation guidelines for simplified customs procedures
were essential if the principles contained in the Convention were to be applied successfully by customs
administrations.  Guidelines on simplification through the  use of effective control techniques and
automation, which include examples of best practices, have been developed for each procedure.  TheManagement Committee will regularly update these in order to provide information on new and modern
practices, which in the future will become the basis of legal texts in the Annexes to the Convention.
3.16 The revised Convention will be brought into force by a Protocol of Amendment.  Forty of the
current Contracting Parties will have to accede to the Pr otocol for it to come into force.  As of July 2000,
five Contracting Parties have acceded to the Protocol and nine have signed the Protocol subject to
ratification.  Many other Contracting Parties are carrying out the necessary internal consultations and
legislative processes for their accession to the Protocol.  The WCO Secretariat is conducting a number ofG/C/W/80/Rev.1
Page 16
technical assistance missions and regional seminars to promote the revised Convention and to assist
Contracting Parties in their accession.
3.17 The text of the General Annex of the Convention, as well as an index of its Specific Annexes can
be found in Annexes III and IV to this document.
Customs Convention on Temporary Admission (Istanbul Convention)
3.18 The Istanbul Convention, which entered into force on 27 November 1993, combines in one legal
instrument all existing agreements covering temporary admission of goods into one state or customs
union from another, and creates a framework for accommodating future requirements.  The Convention
also provides for the continuing use of the ATA carnet ( carnet de passage en douane  pour l’admission
temporaire ) for temporary admission and broadens its application.  It currently has 35 Contracting
Parties, and another 8 signatories subject to ratification.  It is open for accession by any state and customs
or economic unions.  Since it is expected that for some time not all those implementing the ATA and
CPD ( carnet de passage en douane ) carnet scheme will be a Contracting Party to the Istanbul
Convention, the WCO Council adopte d a Recommendation inviting Contracting Parties to accept ATA
and CPD carnet regardless of whether they are issued under the Istanbul Convention or other legalinstruments.
3.19 The body of the Convention consists of 34 Articles representing the main principles and
provisions essential for the uniform implementation of the instrument, such as scope, administration,
accession and amendment procedures.  The main provisions foresee that each Contracting Party mayrequire presentation of a document and security for temporary admission; security shall not exceed the
amount of import duties and taxes from which the goods are conditionally relieved.  General minimum
periods for re-exportation of six or twelve months were agreed in specific annexes.
3.20 The Convention has 13 Annexes, of which Annex A (concerning temporary admission papers,
ATA and CPD carnets) as well as at least one other Annex have to be accepted by each Contracting
Party:
Annex A: concerning temporary admission papers (ATA carnets and CPD carnets)
Annex B.1: concerning goods for display or use at exhibitions, fairs, meetings or similar
events
Annex B.2: concerning professional equipment
Annex B.3: concerning containers, pallets, packings, samples and other goods imported in
connection with a commercial operation
Annex B.4: concerning goods imported in connection with a manufacturing operation
Annex B.5: concerning goods imported for educational, scientific or cultural purposes
Annex B.6: concerning travellers' personal effects and goods imported for sports purposesAnnex B.7: concerning tourist publicity material
Annex B.8: concerning goods imported as frontier traffic
Annex B.9: concerning goods imported for humanitarian purposes
Annex C: concerning means of transport
Annex D: concerning animalsAnnex E: concerning goods imported with partial relief from import duties and taxes.
3.21 To date, only Annexes A, B.1., B.2, B.5 and B.6. have entered into force.  The other Annexes
have not yet reached the minimum number of five sign atories.  Both the provisions of the body and the
Annexes are accompanied by explanatory commentaries, which are designed to facilitate implementationof the provisions.  More detailed information on the annexes of the Istanbul Convention can be found in
Annex V of this document.G/C/W/80/Rev.1
Page 17
3.22 Other instruments dealing exclusively or main ly with temporary admission which are contained
in the relevant annexes to the Istanbul Convention wi ll be terminated and replaced for those Contracting
Parties who have accepted these annexes.
International Convention on the Harmonized Commodity Description and Coding System
3.23 The Harmonized Commodity Description and Coding System (Harmonized System) is an
international product nomenclature in force since 1 January 1988.  Its main application is for customs
purposes such as classification and valuation, but also for the collection of trade statistics, rules of origin
and for all kinds of transactions in international trade (transport, insurance etc.)  The WTO schedules of
almost all Members are based on the Harmonized Syst em, which means that more than 95 per cent of
world trade is covered by the Harmonized System.  The Harmonized System groups product items in 96
chapters, 1,241 headings and more than 5,000 sub-headings.  It provides a legal and logical structure fortariff classification.  In order to keep the Harmonized System up to date and to take into account changes
in technology and the development of new products, the Convention provides for periodic amendments.
Two revisions have taken place (1992 and 1996) and a third set of amendments is to be introduced in
2002.
3.24 The Harmonized System (HS) contributes to the facilitation of international trade by providing a
common basis for classification of goods.  The HS Convention has 102 Contracting Parties to date, and
about 170 countries apply HS-based customs tariffs and trade statistical nomenclatures (October 1998).
In order to secure uniform interpretation and applica tion of the legal texts of the HS, the WCO has put in
place a number of programmes.  These include settling of classification questions and disputes,publishing of classification related information on  the internet (www.wcoomd.org), development of a
classification infrastructure and best practices in developing countries, pre-entry classification
information programmes and development of a commod ity database (CD-ROM) giving HS classification
of more than 200,000 commodities in trade.
International Convention on Mutual Administrativ e Assistance for the Prevention, Investigation
and Repression of Customs Offences (Nairobi Convention)
3.25 In the face of increasingly widespread customs offences concerning all countries, the WCO
Council in 1974 felt the necessity to go beyond the development and promotion of bilateral andmultilateral agreements, which were until then the standard instruments for customs co-operation.  The
Nairobi Convention was drawn up between 1974 and 1977 to combat customs fraud.  It consists of a
body and 11 Annexes, one of which has to be accepted at minimum by each Contracting Party.
Acceptance with reservations is not permitted (Article 18).  As a basic principle, “customs
administrations shall afford each other mutual assist ance with a view to preventing, investigating, and
repressing customs offence”.  The Convention is based on the concept of reciprocity: a Contracting Party
has an obligation to render assistance to another Contracting Party only in so far as both have acceptedthe same Annex.  The Nairobi Convention currently has 34 Contracting Parties.  All 11 Annexes are in
force (each Annex enters into force after acceptance by at least two Contracting Parties) and are listed in
Annex VI of this document.  The WCO Council ad ministers the Convention with assistance from the
Enforcement Committee.
3.26 In 1996, the WCO updated its 1967 “Model Bilateral Agreement on Mutual Assistance for the
Proper Application of Customs Law and for the Pr evention, Investigation and Combating of Customs
Offences”.  The model agreement sets out and explains a number of provisions that should be considered
when drawing up a bilateral agreement.
Other Customs Conventions administered by the WCO
3.27 The following Customs Conventions, details of which can be consulted in Annex VII, were
designed to solve certain specific customs problems:G/C/W/80/Rev.1
Page 18
- on the temporary importation of packing;
- on the temporary importation of professional equipment;
- concerning customs facilities for the importation of goods for display or use at exhibitions, fairs,
meetings or similar events;
- concerning welfare material for seafarers;- on the temporary importation of scientific equipment;
- on temporary importation of pedagogic material;
- on the ATA carnet or the temporary admission of goods (ATA Convention);
- on the international transit of goods (ITI Convention);
- on Containers, 1972.
19
Other instruments and programmes
3.28 The WCO has drawn up Recommendations which do not have a binding character. They areintended as tools for improvement of customs techni ques by national customs administrations and “they
are designed to be accepted by as many States as possible and cover facilities on which a large measure
of agreement already exists and lay down precisely the scope of any facilities granted.”  WCO Membersindicate their acceptance of a recommendation, and have, in certain instances, accepted them with
reservations.  Recommendations have been issued in five areas, as set out in Annex VIII.
3.29 International Customs Norms, developed by the WCO,  are designed to guide customs
administrations in addressing certain specific customs issues.  Each norm deals with a specific point ofcustoms technique and sets out the fundamental principles to be incorporated in customs legislation or
regulation. These norms will be reviewed and incorporated as appropriate in the guidelines of the revised
Kyoto Convention.  For a list of the existing norms, refer to Annex IX.
3.30 The WCO has developed “Guidelines for consignments for which immediate release is
requested” to provide a tool for customs administrations to grant fast clearance while maintaining
customs control with regard to consignments that re quire immediate release.  Guidelines are given on the
scope of documentation necessary for clearance, on valuation, on conditional and unconditional
clearance, and on the differentiation between high- and low-value consignments. The Guidelines have no
legal character or binding force.  The principles in the new General Annex of the revised KyotoConvention reflect the same principles contained in these Guidelines.  It was recently noted by the WCO
that the term “Express Guidelines” was used in norma l parlance when referring to these Guidelines, even
though they were to be applied for all consignments for which immediate release was requested.  It has
been agreed to refer to these Guidelines as “Immedia te Release Guidelines”.  It has also been agreed to
review the documentation requirements for the differ ent categories of goods covered by these Guidelines
and to take into account the changes in the custom s and trade requirements in the years since the
Guidelines were adopted.  It is expected that these Guidelines will be revised and available forapplication by the end of 2001.
3.31 The WCO has issued three Resolutions. They concern the abolition of the passenger manifest in
respect of passengers arriving or departing by air; customs facilities for tourists;  and abolition of control
of motor vehicle insurance at frontiers.
                                                     
19  The Customs Convention on Containers, 1972 is a UN/ECE Convention administered with technical
input from the WCO.G/C/W/80/Rev.1
Page 19
Integrity of Customs administrations
3.32 The international customs community realized th e need to deal effectively with the problem of
integrity at the trade/customs interface and the WCO adopted the Arusha Declaration  in 1993.  The
Declaration calls for:
-- clear and precise customs legislation, moderated import tariffs, limited number of tariff
rates, minimum administrative regulation of trade, and standard rules with minimum
number of exemptions;
-- simple, consistent, non-discretionary and easily accessible customs procedures with
possibilities of legal remedies;
-- utilization of automated processes;
-- appropriate measures in human resource management including rotation of assignments
and relocation of staff, proper recruitment, adequate training, and sufficient
remuneration;
-- more responsibility and accountability of line managers in identifying weakness;-- more effective internal and external audit;
-- more loyalty and pride among customs officers;
-- clear direction to customs officers on expected behaviour;-- open and transparent relationship with the business community.
3.33 The WCO Secretariat hosted an open discussion on this issue in Brussels in April 1998.  The
Customs Integrity Forum was attended by heads of customs administrations, relevant international
organizations (OECD, ICC, Interpol, Transparency International) and representatives of the business
community.
3.34 The recommendations from the Forum were discussed at the annual meeting of the Council of
WCO in Morocco in June 1998 and it was decided to establish an Integrity Working Group to develop an
Integrity Action Plan to assist Members' to implement the provisions of the Arusha Declaration and
improve the level of integrity within their administrations. The Working Group has since met three times
and has developed a comprehensive Action Plan which was approved by the Council in June 1999.
3.35 As a part of the WCO Integrity Action Plan, the WCO Secretariat, with the assistance of a
number of Member administrations, has:
-- developed an Integrity Self-Assessment Guide which assists administrations to examine their own
systems and procedures and identify areas for improvement;
-- developed and piloted an Integrity Workshop to assist Member administrations to design and
implement integrity action plans based on their own needs and unique operating environments.  To
date, workshops have been conducted on a national basis in the Czech Republic, Sri Lanka,
Zambia, India and Vietnam and on a regional basis in Japan, Lesotho and Australia;
-- drafted a Model Code of Ethics and Conduct which can be used by Members to develop an
appropriate code of conduct or alternatively to review and upgrade an existing code;G/C/W/80/Rev.1
Page 20
-- established an Integrity Resource Centre that is designed to provide Members with access to a wide
range of integrity-related information and resource material.
Customs Reform and Modernization Programme
3.36 The Customs Reform and Modernization (CRM) Programme is a comprehensive approach to
help improve the overall performance of customs ad ministrations and meet the growing expectations of
society, business and governments.  The CRM Programme is a collection of management tools available
to customs administrations to assist them to better understand the requirements of their changing external
and internal environment, and to develop self-assessment abilities and skills to implement a
comprehensive and sustainable organizational improvement and change programme.
3.37 The current programme consists of several stages.  Firstly an initial mission is undertaken to
determine the needs of the administration and its read iness to implement the program.  This mission also
involves the delivery of the Customs Orientation Package for Policy Makers which explains the role of
modern customs administrations and their importance to society, business and government.  During the
initial mission attention is given to securing the necessary political commitment and financial resources
from both the participating government and the private sector.  The second stage involves conducting anintensive diagnostic and planning mission which involves assisting key managers of customs to undertake
a comprehensive assessment of the current situation and to develop a range of practical and sustainable
solutions.  The key outcome of this stage is the development of an agreed Implementation Plan.
Depending on the nature of the solutions identified during the diagnostic phase further follow-up
assistance and evaluation missions may be undertaken.  Likewise, depending on the nature of thecorrective strategies identified, the WCO can assist Member administrations through the provision of
technical assistance in areas of WCO competence or by assisting participating administrations to identify
alternative sources of donor support.
3.38 WCO CRM Programmes have been completed in Latvia, Senegal, Uganda, and are currently
under implementation in Cuba, Lithuania, Mauritius,  Namibia, Sri Lanka and Vietnam and on regional
basis in the Southern African Development Community (SADC).  The Programme is currently under
preparation in Bangladesh and Mongolia.
3.39 The WCO has developed the necessary tools for implementation, trained 150 experienced
customs officers to use these tools and maintains a pool of accredited facilitators who support the process
of self-assessment in beneficiary countries.  The WCO Secretariat is currently reviewing the content of
the CRM program to further improve its effectiveness and to ensure it remains relevant to the needs of
Member administrations.
Other WCO technical assistance activities
3.40 The main objectives of the WCO training and technical assistance programme are:- to ensure the implementation and uniform application of Customs Conventions, Instruments and
Recommendations (e.g. the Single Goods Declarat ion) developed and administered by the WCO;
- to improve the effectiveness and efficiency of customs administrations in the enforcement of
regulations and in the delivery of quality service to the society, to the business community and to
government;
- to help Members' customs administrations to reform and modernize their organizations, to employ
modern technologies to introduce better management practices and human resource management
including training system development, greater transparency in procedures, and improve the
integrity of their staff.G/C/W/80/Rev.1
Page 21
3.41 The WCO offers 38 standard training programmes  in the fields of Harmonized System, customs
valuation, origin of goods, customs procedures, com puterization of customs, enforcement, organization
and human resources development in customs admi nistrations.  The WCO has developed 66 training
modules to assist technical training for customs officers.  The WCO carries out approximately 250
seminars, training courses and expert missions annually.
4. WORLD BANK
4.1 Trade Facilitation projects feature in several of the Bank's activities, such as project lending
(transport), adjustment lending (customs, quality standards and simplification of procedures), technical
assistance loans (customs modernization) and economic and sector work (export promotion and
competition).  Historically, there have been three phases of World Bank involvement: During the 1980's,
most Bank activities concerning trade facilitation had  transport facilitation as their goal.  The very first
transport sector work facilitation took place in Latin America in 1976. In the mid-1980's isolated tradefacilitation components. particularly focusing, on governance reform, have been included more and more
in structural  adjustment loans (Metrology, Standards, Deregulation of Prices).  Since 1990, Bank
initiatives have explored ways of addressing the wide range of policy and administrative issues involved
in trade enhancement, leading, to useful conditiona lities in adjustment loans, new types of technical
assistance and new types of projects.
4.2 In 1987, the Bank's Transportation Department prepared a general review of projects in transport
facilitation and logistics, finding that World Bank lending for non-infrastructure transport operations only
accounted for 2 per cent of overall transport lending.
4.3 Major projects since 1977 include:  Analysis of Road Transport Industry in Central America
(1977); India Containerization Study (1979); Interm odal Transport in Latin America (1982); Logistics
Cost Study, Zaire (1990); Philippines Competit iveness Assessment (1992); UDEAC, Regional Policy
Reform Program (1993); Lebanon-Revenue Enhancement and Fiscal Management Project (1995);
Pakistan Logistics Cost Study (1996); Jordan Ec onomic Reform and Development Loan (1996); Rwanda
Commodity Export Diversification Study (1998) ,Côte d’ Ivoire - Agricultural Sector Adjustment Credit
(1995), Economic Recovery Credit (1996), Privat e Sector Development Adjustment Credit (1996),
Transport Sector Adjustment/Investment Credit (1998); Nepal - Multimodal Transit and Track
Facilitation Project (1986, 1992, 1997); Pakistan -Trade and Transport Facilitation Project (1993, 1996,
1999).
20
4.4 In collaboration with other partners the World Bank is preparing a project to help six countries inthe South East Europe region improve customs procedures (Albania, Bosnia and Herzegovina, Bulgaria,
Croatia, Macedonia and Romania).
 The program aims to integrate the efforts of the governments, EU,
SECI21 and the World Bank Group for: (a) physical improvements to border crossings, (b) technical
assistance to strengthen the customs administrations, (c) computerization of procedures at the border
crossings and electronic filing of customs declarat ions, and (d) improved exchange of information
between the border control agencies and the busine ss community, through seminars and the development
of Internet web sites ("trade facilitation"). At the regional (i.e. international) level a steering committee
has been created to provide a forum for the exchange  of experience among the countries, the collective
aligning of procedures on EU standards, and the coordination of operating practices at "paired" crossing
                                                     
20  For a detailed description of the Lebanon 1995 and Jordan 1996 programs, see the World Bank
presentation at the WTO Trade Facilitation Symposium in March 1998; WTO document G/C/W/115.
21The Southeast European Co-operative Initiative (SECI), is a forum in which representatives of the
participating states meeting to discuss common regi onal economic and environmental problems calling for
concerted action and developing region-wide plans for dealing with these problems.  For additional information, see
http://www.unece.org/seci/seci.htm.G/C/W/80/Rev.1
Page 22
points. Thereby the Program aims to: (i) reduce costs to trade and transport; (ii) reduce smuggling and
corruption at border crossings; and (iii) strengthen  regional partnerships and expand regional trade22.
4.5 In 1999, the World Bank launched the Global Facilitation Partnership for Transportation and
Trade (GFP) to provide a focus and forum for the pub lic and private sectors, who want to bring about
lasting, significant improvements in the invisible in frastructure of transport and trade in all interested
Bank member countries. It is foreseen that partners will design and undertake specific programs towards
meeting this objective, making use of their respec tive comparative advantage in the subject matter in a
co-ordinated fashion.  In support of this purpose, the areas of collaboration are expected to include the
following: (i) sharing agendas of common intere st; (ii) pooling resources and expertise where
appropriate; and (iii) sharing knowledge and ideas.  The GFP has now 49 members, from both the public
and private sectors, and including most of the main international institutions involved in facilitation23.
4.6 The World Bank and all GFP Partners agree on pursuing:
-- the establishment of a comprehensive Facilitation Audit Framework, combining qualitative
assessment with a simplified set of data on effici ency of trade and transport transactions; the
corresponding Facilitation Audit Methodology is now being published by the World Bank as thefirst GFP product, and should become available by end-March 2000;
-- The definition of systematic approaches to measurement, based on a set of facilitation indicators
on transportation and cross-border processes, to be systematically collected;
-- The monitoring and publishing on a regular basis of data on these facilitation indicators;
-- Any commonly agreed initiative aiming at promoting trade and transport facilitation programs
through education, training, and targeted technical assistance activities.
5. INTERNATIONAL MONETARY FUND (IMF)
5.1 Work of the IMF relating to trade facilitation can take place in a number of contexts: (1) as part
of its regular consultations with member countries on their economic policies and developments; (2) as a
component of member countries’ stabilization programs that are supported by IMF resources; and, most
notably, (3) in the form of technical assistance when requested by member countries.
5.2 Technical assistance on trade facilitation can involve both tariff policy and customs
administration. On tariff policy, the assistance typically includes assessing the revenue impact of
lowering and restructuring tariff rates, the tariffication of quotas, and the removal of other non-tariff
barriers; as well as the identification of compensatory revenue measures.  On customs administration, the
assistance often comprises aligning customs legislation and procedures with international standards and
practices such as the WTO Customs Valuation Agreement or the WCO Kyoto Convention; modernizingthe customs organization and clearance procedures (including the use of preshipment inspection
services); and formulating strategies to create an environment that facilitates the flow of cargo, reduces
costs of operations, promotes the transparency of procedures, and increases compliance.
                                                     
22For additional information on this program, see http://www.seerecon.org/RegionalInitiatives/ttfse.htm
and http://www.seerecon.org/RegionalInitiatives/TTFSE/tffsepid.htm.
23For additional information on the Global Facilitation Partnership for Transportation and Trade, see
http://wbln0018.worldbank.org/twu/gfp.nsf.G/C/W/80/Rev.1
Page 23
6. INTER-AMERICAN DEVELOPMENT BANK (IABD)
6.1 The Inter-American Development Bank finances technical assistance projects supporting customs
modernization and reform in the countries of Latin America and the Caribbean.  Over the past decade, the
IADB has financed twenty-six projects that deal exclusively with customs modernization.  Currently,
fourteen projects with IADB financing are underway in  12 countries, plus two regional projects.  All of
these projects include trade facilitation as one of the main objectives, precisely following the WorldCustoms Organization guidelines.  A region-wide techni cal assistance project was also approved in mid-
2000 to support the implementation of trade and business facilitation measures in member countries of
the Free Trade Area of the Americas (FTAA).  The IADB is also financing the implementation of a
quality assurance system, applying the Internationa l Organization for Standardization (ISO) standards
9000, in one Latin American country’s customs service.
7. 
INTERNATIONAL TRADE CENTRE  UNCTAD/WTO (ITC)
7.1 ITC is a technical cooperation organization that deals with the operational aspects of trade
promotion and export development.  It complements the research, policy, deliberative and normative
work of its parent bodies, WTO and UNCTAD.  As such, it does not, therefore, have a proactive role in
trade facilitation, but it is concerned with the improvement of the performance of businesses, particularly
SMEs, in entering into international trade transa ctions, within the existing regulatory environment.
7.2 For instance, ITC provides technical assistance for capacity building in developing countries and
economies in transition to enable them to implement the WTO Agreements on TBT and SPS.  This is
done through consultancy missions, training, seminars and the provision of information technology
equipment.  The focus is on the establishment/strengthening of National Enquiry Points required by these
agreements.  These NEPs contribute to trade facilitation by providing information on technical
regulations/sanitary and phytosanitary measures in their domestic markets to exporters to their countries.They also provide similar information about requirements in export markets to exporters in their
countries.  ITC publishes handbooks and bulletins on Export Quality Management, some of which
provide information about technical requirements in specific countries for specific products.
8. INTERNATIONAL MARITIME ORGANIZATION (IMO)
8.1 The International Maritime Organization, established by a Convention adopted under the
auspices of the United Nations in Geneva on 17 March 1948, met for the first time in January 1959.  It
has currently 158 Member States.  The IMO is a specialized agency of the United Nations responsible for
improving the safety of international shipping, facilitation of international maritime traffic, prevention of
marine pollution from ships, and legal matters, including liability and compensation issues.  The adoptionof maritime legislation is still IMO’s most importa nt concern.  Some 40 conventions and protocols and
well over 800 codes, recommendations and guidelines have been adopted by the Organization and most
of them have been amended on several occasions to ensure that they are kept up to date with changes
taking place in world shipping.  Since 1960, the IMO has been involved in the facilitation of international
maritime traffic.
Convention on Facilitation of International Maritime Traffic (FAL)
8.2 The Convention on Facilitation of International Maritime Traffic was adopted by IMO in 1965.
It has currently 84 Contracting Parties.  Its main objectives are to prevent unnecessary delays to ships,
passengers and cargoes in maritime traffic; to aid co-operation between governments; and to secure the
highest practicable degree of uniformity in formalities, documentary requirements and other procedures.The Convention has been amended several times.  More details on the Convention and its amendments
are presented in Annex X to this document.G/C/W/80/Rev.1
Page 24
Other IMO work
8.3 Other relevant IMO Conventions related to trade facilitation are the following:
-- Convention for the Suppression of Unlawful Acts against the Safety of Maritime
Navigation;
-- Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms
Located on the Continental Shelf;
-- International Convention on the Safety of Life at Sea (SOLAS), 1974;
-- International Convention on the Prevention of Pollution from Ships as modified by the
Protocol of 19 78 (MARPOL 73/78);
-- International Convention on Load Lines (LL), 1966;
-- Special Trade Passenger Ships Agreement (STP), 1971;-- International Regulations for Preventing Collisions at Sea (COLREG), 1972;
-- International Convention for Safe Containers (CSC), 1972
-- Athens Convention relating to the Carriage of Passengers and their Luggage by Sea
(PAL), 1974;
-- Convention on Limitation of Liability for Maritime Claims (LLMC), 1976;-- International Convention on Tonnage Measurement of Sh ips (TONNAGE), 1969.
8.4 At its fifty-seventh session in November 1986, the Council of IMO considered a proposal, jointly
submitted by the governments of Austria, Egypt and Italy, for the preparation, under the auspices of IMO,
of a convention on the suppression of unlawful acts against the safety of maritime navigation.  Theproposal was accompanied by a draft Convention and an Explanatory Note.  The Council unanimously
agreed that the matter was appropriate for consideration by IMO and deserved urgent action; and it
accordingly appointed an Ad Hoc Preparatory Committee with the mandate to prepare, on a priority
basis, a draft convention for the suppression of unlawful acts against the safety of navigation, using as the
basis of its work the draft convention submitted by the three sponsoring governments.
8.5 In accordance with the decision of the Council, the diplomatic conference was held in Rome
from 1 to 10 March 1998.  The conference adopted two treaty instruments namely;
-- the Convention for the Suppression of Unlawful Acts against the Safety of Maritime
Navigation;
-- the Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms
Located on the Continental Shelf.
8.6 The SOLAS, MARPOL 73/78 and CSC contain rule s on several Certificates, without which ships
cannot trade and containers cannot be transported.
8.7 With regard to the facilitation of international maritime traffic, a number of technical co-
operation activities are currently undertaken.  A new set of amendments is considered by the Facilitation
Committee and emphasis of that Committee’s work is given to the development of provisions for the
resolution of stowaway cases, pursuant to reso lution A.871(20), Guidelines on the allocation of
responsibilities to seek the successful resolution of stowaway cases, and the use of EDI in Ship’sclearance, including the approval of relevant EDIFACT messages and their appropriate Implementation
Guides.
8.8 Pursuant to resolutions A.786(19), A.867(20)  and A.872(20) as outlined in the ensuing
paragraphs, the committee focuses its attention and priority on those matters specified therein.
8.9 The Assembly, at its nineteenth session, adopted Resolution A.786(19), Strategy of ship/port
interface, and agreed that the Organization should act as a forum to promote co-ordination between
relevant intergovernmental and non-governmental international organizations in consultative status onG/C/W/80/Rev.1
Page 25
matters of concern arising from ship/port interface acti vities relating to the objectives of the Organization
and, in consultation with these bodies, to:
-- identify subject areas concerning both ships and ports;-- establish and periodically update the objectives to be achieved with respect to the subject
areas so identified;
-- make an inventory of the work done and being undertaken by IMO and other
intergovernmental and non-governmental international organizations in the subject areas
identified;
-- evaluate whether the work referred to under (c) meets the objectives set for the subject
areas;
-- identify subject areas requiring further consideration;-- identify, prioritize and periodically update the needs of the countries with respect to the
subject areas; and
-- take any action deemed necessary to promote the above areas of activity.
8.10 The Assembly, at its twentieth session, a dopted Resolution A.867 (20), combating unsafe
practices associated with the trafficking or transport of migrants by sea, and invited governments to co-
operate in the interests of safety of life at sea by increasing their efforts to suppress and prevent unsafe
practices associated with the trafficking or transport of migrants by sea and by ensuring that effective and
prompt action is taken against such unsafe practices.  The Assembly further invited governments to
develop, as appropriate, agreements and procedures to facilitate co-operation in applying efficient andeffective measures to prevent and suppress unsafe practices associated with the trafficking or transport of
migrants by sea.  The Assembly also invited governme nts to co-operate in ensuring that, to the maximum
extent possible, information on ships believed to be engaged in unsafe practices associated with the
trafficking or transport of migrants by sea is collected and disseminated to the Organization and to all
governments which may be affected by such unsafe practices.
8.11 The Assembly, at its twentieth  session, also adopted resolution A.872(20), Guidelines for the
prevention and suppression of the smuggling of drugs, psychotropic substances and precursor chemicals
on ships engaged in international maritime traffic and urged member governments to implement the
Guidelines without delay, in accordance with the intern ational law of the sea, and to bring them to the
attention of harbour masters, shipping companies, shipowners, ship operations, shipmasters and all other
parties concerned.
8.12 These Guidelines contain general advice which may provide guidance to shipowners, seafarers
and others closely involved with the operation of ships.  They are standards whose aim is to assist
shipping companies, ships’ masters and officers in combating illicit drug trafficking and to recognise
some of the symptoms of drug dependence among members of the crew.  Based on these standards,shipowners may wish to examine the possibility of a dopting or improving procedures aimed at preventing
breaches of customs regulations in their ships, especially smuggling of illicit narcotic drugs, psychotropic
substances and chemicals essential for drug production.  Such procedures will necessarily vary from one
ship to another, depending on the routes they serve.
9. INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO)
9.1 The basic objective of ICAO in the field of f acilitation is to promote productivity, security,
compliance and customer service in the context of  international border clearance formalities, inG/C/W/80/Rev.1
Page 26
accordance with Article 44 (d) of the Convention on International Civil Aviation  (Chicago Convention).
In order to pursue this objective the facilitation programme of ICAO retains the original strategies of
reducing paperwork, standardizing documentation and simplifying procedures, in order to minimize
delays for the customers.  However, the operating environment has changed, requiring new strategies to
meet new goals.  In recent years, as traffic volumes outgrew the traditional facilities and clearance
methods, the focus of Annex 9 to the Chicago Conv ention, which contains Standards and Recommended
Practices on facilitation of air transport, shifted to inspection techniques based on risk management and
assisted by modern technology, with the objectives to increase productivity and reduce congestion in
airports.  Most recently, responding to the current needs of Contracting States, the programme pursues
new priorities.  These are to enhance compliance and security, control abuses such as narcotics trafficking
and travel document fraud, and to support the growth of international trade and tourism.
9.2 Superior customer service in a secure environment is a key condition for perpetuating the
economic health of an air transport system, and is  the ultimate objective of the ICAO facilitation
programme. In order to achieve this objective the Organization has committed itself to introduce
guidelines to Contracting States calculated to reducing congestion in passenger terminals and cargo
facilities at international airports by improving the processes by which traffic is cleared through the
necessary formalities of inspection authorities such as customs, immigration and quarantine.
9.3 The objective of the Organization for the facilitation of cargo is to meet goals for cargo release
time. Some strategies recommended with regard to this objective are: the use of risk analysis in selecting
shipments for examination; processing of  manifest and entry information in advance; employing
information technology to replace manual procedures; and using converge controls and/or co-ordinatedinspections.
9.4 Since 1998, ICAO has undertaken substantial revision of Chapters 1 to 4 of Annex 9 which
address the clearance of passengers, cargo and aircraft.  In order to assist Contracting States with the
implementation of provisions of the Annex, the Organization is in the process of preparing a facilitationmanual that would offer the user improved comprehension of the Annex.  Additionally, technical
specifications on machine readable passports have been revised and technical specifications on official
travel documents will be released later in 2000. At present, ICAO is revising all of Annex 9, including
international Standards and Recommended Practices of Chapter 4 (Cargo).
9.5 ICAO liases with facilitation contacts of 120 States in order to assist the States on a day-to-day
basis with technical advice and guidance.
10. ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD)
10.1 While the OECD is not engaged in trade facilitation, per se , the OECD, as an intergovernmental
organisation with a multidisciplinary dimension, undertakes a number of activities dealing with specific
sectoral issues some of which enhance trade efficiency.
Consumer cross-border transactions, in cluding parcel delivery and customs
10.2 The Committee on Consumer Policy has been examining a number of issues related to consumer
cross-border transactions, including parcel delivery and customs.  Roundtables were held in June andOctober 1996 to examine issues that might impact the cost of shipping parcels internationally.  At a
subsequent roundtable on the simplification of customs clearance procedures (September 1997),
organized in cooperation with the World Customs Organization, participants discussed policy approaches
for simplified procedures that could benefit consumers as well as customs authorities and businesses.  It
is important to note that, as electronic commerce expands, the increase in consumer purchases of tangiblegoods will make it more urgent to resolve existing delivery problems and to streamline customs
procedures in order to maintain flexible and efficient distribution channels.  Current work on these issuesG/C/W/80/Rev.1
Page 27
is, for the moment, focused on fiscal aspects of customs and is being done by OECD’s Committee for
Fiscal Affairs in consultation with the WCO.
Information, Computer and Communications Policy
10.3 The Committee for Information, Computer and Communications Policy (ICCP Committee)
works on policy issues related to information and communications technologies and their impacts on the
economy and society, including such matters as electronic commerce and the Internet.  In May 1997 the
Committee's report on Global Information Infrastructure - Global Information Society (GII-GIS) set forth
recommendations addressed to governments and intern ational organisations suggesting policy directions
to enable the private sector to take the lead in the development and implementation of the GII-GIS. Since
then the Committee has taken the lead in the analysis of policy frameworks for electronic commerce,
showcased in a series of international meetings in Turkey, Finland (1997), Ottawa (1998) and Paris
(1999) which have stressed inter alia  the policy issues which need to be addressed if electronic
commerce is to fulfil its potential to facilitate international trade.
10.4 With respect to telecommunications policy a nd international commerce, the ICCP Committee's
Working Party on Telecommunications and Information Services Policy activities include assessment ofthe economic effects of changes in communications policies on international trade-related issues. Studies
have focused on interconnection and equal access to networks by competing operators; pricing strategies
and competition in mobile telephony; policy frameworks and pricing for information infrastructures; and
employment changes in the telecommunications industry. Studies were also conducted of the
international accounting rates system.  More recently the Working Party has examined the Internet access
prices, infrastructure indicators, traffic exchange, domain name allocation policies and has studied its
potential impact as an alternative to conventional telephone networks.  Currently, electronic commerce
has been a priority area for the Working Party. In 1999 a Review of Market Openness and Trade in
Telecommunications was conducted and a report on leased line developments and pricing Building
Infrastructure Capacity for Electronic Commerce was produced.  Work on market liberalisation isaddressing the issue of encouraging competition in the local loop.  The biennial Communications Outlook
(next issue early 2001) provides key indicators and policy analysis related to trade aspects.
10.5 The ICCP Committee's Working Party on the Information Economy is studying the software
industry, including aspects of trade development and the recent evolution of Intellectual Property Rights
related to software.  Furthermore the bi-annual Information Technology Outlook (last issue early 2000)
provides an overview of trade developments in the IT sector and compiles IT policy profiles, including
trade-related policies.
10.6 At the Ministerial Conference in Ottawa in October 1998 referred to above, Ministerial
Declarations that establish baseline principles and goals, and provide guidance regarding the OECD's
further work, were adopted in three critical areas, i.e. Protection of Privacy on Global Networks,Consumer Protection in the Context of Electron ic Commerce, and Authentication for Electronic
Commerce.  Since the Conference the main landmark achievement has been the preparation by the
Committee on Consumer Policy of the OECD Guidelines for Consumer Protection in the Context of
Electronic Commerce by the OECD Council in Dece mber 1999.  Work on Privacy and authentication is
conducted by the ICCP Committee's Working Party on Information Security and Privacy.  The mainachievements with relevance to trade facilitation include the OECD Privacy Policy Statement Generator
and the Report on Transborder data Flow contracts.
10.7 The work of the ICCP Committee's Working Party on Indicators for the Information Society is
also relevant to trade facilitation.  It has recently agreed upon definitions and key indicators for theInformation and Communication Technologies sector and is working on the electronic content sector and
electronic commerce.G/C/W/80/Rev.1
Page 28
Regulatory reform
10.8 In general, data requirements, formalities and practices at the border arise from domestic
regulations.  OECD has been engaged in concerted work on regulatory reform since its 1995 Ministerial
Meeting, work which has involved a broad range of analysis and discussion in a number of differentOECD committees.  In 1998, a series of reviews was in itiated Organization-wide of regulatory systems
and reform efforts in different OECD countries.  In this context, the Trade Committee has been studying
the market access effects of domestic regulations (including those for administering trade).  The analysis
has examined in particular the extent to which countries achieve efficient regulation through the
application of six principles:  i.e. transparency and openness of decision-making;  non-discrimination;
avoidance of unnecessary trade restrictiveness;  use of international harmonized measures;  recognition of
other countries’ regulatory measures;  and application of competition principles from an internationalperspective.  In the review, particular attention is  paid to selected sectors such as telecommunication
equipment, automobile, electricity and telecommunication services.  With respect to the use of
international harmonized measures, the Chemicals Committee and the Environment Policy Committee
are working for harmonization of national chemical  safety policies and instruments and harmonized
global control system for trans-boundary movements of wastes.
International air cargo transportation
10.9 The OECD has been exploring the possibility of liberalising the provision of air cargo services
since 1997. Work on this subject covers not only service-market access issues but also several practicalhindrances that air-cargo service providers are faci ng, such as those found in customs procedures and
documentation and ground-handling services. In this context, trade facilitation measures, such as
simplification of control on cargo in transit, acceleration of customs clearance and documentation
simplification, are referred to and advocated in the work. The OECD organised a workshop on
Regulatory Reform in International Air Cargo Transportation in July 1999, where almost 100 industryand government representatives exchanged views on market access matters and practical hindrances. The
next workshop is to be held in October 2000, and trade facilitation measures might continue to be
referred to.
Integrity and corruption
10.10 Due to increasing concerns that corruption may counteract any trade facilitation efforts, OECD
has studied, since 1996, the issue of integrity and corruption from the point of view of both public sector
and private sector, emphasizing its adverse effect on national development.  Corruption may counteract
any trade facilitation efforts.  The most significant deve lopment in this field is the entry into force of the
“Convention on Combating Bribery of Foreign Public Of ficials in International Business Transactions” in
February 1999.  Thirty-four countries have signed for the accession. Among them, twenty-one countries
have been subject to close monitoring to determine the adequacy of their implementing legislation, and
these country review reports have been available to the public on the OECD Internet site.
10.11 Following the “1998 Ministerial Council Recomm endation on Improving Ethical Conduct in the
Public Service”, the report on the implementation of the recommendation, “Trust in Government: Ethics
Measures in OECD Countries”, was submitted to th e OECD Ministerial Council in June 2000. The report
presents the first ever comprehensive database of integrity measures in OECD countries and includes an
analysis of common trends and good practices. Its aim is to assist in the evaluation of government
systems to promote integrity and fight corruption. The report will be published in September 2000.
10.12 The Trade Committee has undertaken in 2000 an analysis of the “Potential Anti-Corruption
Effects of WTO Disciplines”. In this context, the Committee discussed how trade facilitation provisionsG/C/W/80/Rev.1
Page 29
in existing WTO agreements contribute to improvin g transparency, limiting arbitrariness and thereby
reducing the opportunities and motivations for corruption in trade procedures.
11. UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW (UNCITRAL)
10.13 The United Nations Commission on International Trade Law (UNCITRAL) was established by
the UN General Assembly in 1966.  UNCITRAL’s objective is to help reduce or remove obstacles to theflow of trade caused by disparities in national laws  governing interna tional trade through furthering the
progressive harmonization and unification of the law of international trade. The Commission has sincebecome an important body of the United Nations system in the field of international trade law. It worksmainly through the drafting of UN conventions and other legal instruments.
10.14 The Secretariat of UNCITRAL is the International Trade Law Branch of the United Nations
Office of Legal Affairs, located in Vienna.  In the areas of work relating to trade facilitation theCommission is dealing with the international sale of goods and related transactions;  internationaltransport of goods;  international commercial arbitration a nd concilia tion;  international payments; and
electronic commerce.
10.15 For detailed information on the work carri ed out by UNCITRAL, see Annex XI to this
document.
B. 
REGIONAL AND OTHER INTERGOVERNMENTAL TRADE FACILITATION INITIATIVES
1. ASIA-PACIFIC ECONOMIC COOPERATION (APEC)
1.1 APEC’s twenty-one member economies have iden tified trade facilitation as one of its three
priorities, together with trade and investment liberalization, and economic and technical co-operation.  A
major programme to simplify and harmonize customs pr ocedures in the Asia-Pacific region was launched in
1996 through the Osaka Action Agenda.  Customs work is co-ordinated by the Sub-Committee on Customs
Procedures (SCCP) reporting to the Committee and Trade and Investment (CTI) and individual APEC
Members.  A Collective Actions Plan with 12 priority areas was established.
-- Harmonization of Tariff Structure with the HS Convention
To ensure consistency of application, certainty and a level playing field for business through the
HS Convention, the standard international harmonized system for the classification of goods.
-- Transparency of Customs Procedures, including Information on Customs Laws,
Regulations, Administrative Guidelines, Procedures and Rulings
To ensure traders have all the pertinent inform ation for business decisions through the provision
of accurate, consistent and user-friendly information.
-- Simplification and Harmonization on the Basis of the Kyoto Convention
To improve efficiency in customs clearance and the delivery of goods in order to benefit
importers, exporters and manufacturers through simplified customs procedures and best
practices.
-- Adoption and Support for UN/EDIFACT
To use the standard UN electronic messaging format for automated systems, the United
Nations/Electronic Data Interchange for Administration, Commerce and Transport, to promote an
electronic highway for business.
-- Adoption of the Principles of the WTO Valuation AgreementG/C/W/80/Rev.1
Page 30
To facilitate administration of the World Trade Organization’s Valuation Agreement on standard
procedures for valuing goods.
-- Adoption of the Principles of the WT O Intellectual Property (TRIPS) Agreement
To implement border enforcement procedures for protecting intellectual property rights.
-- Introduction of Clear Appeals Provision
To provide business with an opportunity to challenge potentially erroneous or inequitable
customs decisions through mechanisms for transparent, independent and timely appeals.
-- Introduction of an Advance Classification Ruling System
To establish simplified procedures for providing classification information prior to importation,
thus bringing certainty and predictability to international trading and helping traders to makesound business decisions based on legally binding advice.
-- Provisions for Temporary Importation, e.g. acceding to the A.T.A. Carnet Convention or
the Istanbul Convention
To help business move goods such as commercial samples, professional equipment, tools of trade
and exhibition material across borders with a high degree of certainty as to how these goods will
be treated by customs by having standard procedures for admitting goods on a temporary basis.
-- Harmonized APEC Data Elements
To develop a comprehensive directory supporte d in UN/EDIFACT which includes a simplified
"core set" of data elements, largely derived from commercially available data, that would satisfy
the standard data requirements of the majority of APEC trade transactions and so facilitate the
exchange of information and provide a foundation for common forms and electronic commerce.
-- Risk Management Techniques
To focus customs enforcement efforts on high-risk goods and travellers and facilitate the
movement of low-risk shipments, through a flexible approach tailored to each APEC economy.
-- Guidelines on Express Consignments Clearance
To implement principles contained in the WCO Guidelines on Express Consignment Clearance,
the international standard procedures for clearance of express goods, working in partnership with
express industry associations.
1.2 A number of the 12 collective actions agreed upon by SCCP  have been or would be completely
implemented by end-1999 (e.g., tariff nomenclature harmonization and computerization through
UN/EDIFACT). All other actions’ implementation is scheduled for completion by 2002, except for thethree new APEC members. SCCP has elevated ‘customs integrity’ as a new Collective Action Plan
(CAP) item.  The SCCP believes that the Simplification and Harmonization of Customs Procedures
initiative has already resulted in significant cost savings for exporters and importers.  Among other
outcomes, the SCCP is promoting risk manageme nt techniques, which ar e being shared by APEC
customs administrations, to better target enforcement efforts and facilitate the movement of low-riskshipments and ‘paperless trading’ in the region.  Other achievements include:
-- The development of better tools for forging strategic partnerships with the business/private sector
and exploring possible partnerships with the private sector to progress the work on its CAPs.
-- Advanced work to implement the SCCP’s multi-year technical assistance programs of its CAPs
in 1999, including:G/C/W/80/Rev.1
Page 31
- A program to implement the WTO Valuation Agreement: Training in the
People’s Republic of China; Indonesia; Malaysia; Papua New Guinea; the
Philippines; Chinese Taipei and Thailand.
- A program to implement UN/EDIFACT electronic message standards: conducted
training for customs officers in Brunei, Indonesia, Mexico and Vietnam.
- Adoption of TRIPS: Missions were completed in Papua New Guinea and
Indonesia.
- A program for the implementation of Facilities for Temporary Importation:
Workshops in the People’s Republic of China and Chinese Taipei.
- Risk Management: two expert missions have been conducted in Indonesia and
the Philippines.
-- A Virtual Customs Group has been established to share experiences and explore and develop
common approaches with the objective of de veloping a compendium of APEC customs
initiatives on Electronic Commerce.
-- The issue of "Customs Integrity" has been elevated to a new Collective Action Plan of the Sub-
Committee.
-- "Paperless Trading" has been elevated to SCCP CAP item, replacing the UN/EDIFACT CAP
item.
Next Steps
1.3 At the Auckland Summit in 1999, APEC Member economies reiterated their commitment to
trade facilitation, and pledged to strengthen the trade facilitation agenda.  The SCCP will continue to
implement and improve the Collective Action Plans in the areas of customs procedures. Future SCCP
work programs include:
-- improving direct involvement of the business/private sector in SCCP activities.
-- publishing the 2000 Blueprint for APEC Customs Modernization.
-- to keep promoting and facilitating paperless trading.-- develop a proposed work program on "Integrity" wh ich was elevated to CAP status at the end of
last year.
-- proposed "Best Practices" handbook on Express Consignment Clearance.-- development of an Assessment/Evaluation Approach  to measure the implementation of SCCP
CAPs and cargo release time.
2. ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)
2.2 In recognition of the importance of co-operation in customs, ASEAN had put in place a Customs
Code of Conduct as far back as 1983. Trade Facilitation efforts within ASEAN intensified in the contextof the AFTA initiative.  A first significant step was undertaken at the first Directors-General of Customs
Meeting in early 1995 where it was agreed to initiate measures to facilitate trade in goods and services
within the region, in order to support the implementation of AFTA.G/C/W/80/Rev.1
Page 32
2.3 The ASEAN Customs Code of Conduct  was then revised in 1995 with the following objectives:
-- to facilitate intra-ASEAN trade by simplifying and harmonising trade procedures so as to support
the implementation and acceleration of CEPT for AFTA;
-- to enhance ASEAN co-operation in customs so as to complement economic co-operation
activities in ASEAN;
-- to promote the salient principles in the conduct of customs matters in ASEAN;
-- to endeavour to harmonise tariff nomenclatures, customs valuation and procedures in ASEAN.
2.4 Cooperation in customs was deepened and broadened further, with the decision made at the
Seventh AFTA Council in September 1995, to formul ate a legal framework for ASEAN co-operation in
customs. The ASEAN Agreement on Customs  was signed at the First ASEAN Finance Ministers Meeting
on 1 March 199724. The Agreement espouses the principles of consistency, availability of access to
appeals, simplicity, transparency, efficiency and mutual assistance.  Under this Agreement, ASEAN
member countries agreed to the following main points:
-- Tariff Nomenclature
To use a common tariff nomenclature to make it easier for traders operating in the region. An
ASEAN Harmonised Tariff Nomenclature at 8 digit level shall be created based on the
Harmonised Commodity Description and Codi ng Systems (HS) of the World Customs
Organisation.
-- Customs Valuation
Customs Valuation shall not be used for protective purposes or as barrier to trade. The
GATT/WTO Valuation Agreement shall be implemented on an accelerated schedule, and that a
common interpretation of the GATT/WTO Valuat ion Agreement shall be adopted to ensure
uniformity and standardised implementation of the Agreement.
-- Customs Procedures
To continuously simplify and harmonise customs procedures, so as to ensure the expeditious
clearance of products traded in ASEAN. Simplification of procedures is aimed at cutting the time
taken and cost of transactions at each customs point. Customs procedures shall be aligned to
standards and recommended practices of the Kyoto Convention under the auspices of the WorldCustoms Organisation (WCO).
-- Information Exchange
Member States are encouraged to exchange vital information on the prevention and repression of
smuggling, trafficking of narcotics and psychotropic substances, and other customs frauds.
-- Appeals
Any affected person shall have the right to appeal decisions taken by the customs authorities of
Member States, subject to national laws and regulations in each country.
-- Private Sector Participation
The private sector is encouraged to co-operate and consult with the ASEAN Directors-General of
Customs on ways and means to further enhance intra-ASEAN trade facilitation.
2.5 Whilst the Agreement on Customs provided a legal framework for current work being undertaken
within the ASEAN customs fora, an ASEAN Customs Vision 2020 was developed to provide the
                                                     
24 New Member Countries Lao PDR and Myanmar acceded to the Agreement on 23 July 1997, when they
were admitted into ASEAN. Cambodia acceded to the Agreement on 30 April 1999.G/C/W/80/Rev.1
Page 33
necessary directions into the 21st Century. In 1997, ASEAN Customs Director-Generals agreed on the
following vision for Customs 2020:
“an ASEAN Customs Partnership for World Class Standards and Excellence in
efficiency, professionalism and service, and uniformity through harmonised procedures,
to promote trade and investment and to prot ect the health and well-being of the ASEAN
community.”
2.6 Further to the Customs Vision 2020, a Policy Implementation and Work Programme (PIWP) for
realising the vision was formulated. The PIWP specifies the objectives, activities and outputs planned for
the first cycle implementation of the Vision, i.e. the period 1999 to 2004.  It consists of the following
objectives:
-- Post Clearance Audit
- development of a set of ASEAN guidelines on customs audit;
- implementation of customs post clearance audit in each member country.
-- Cargo Processing
- to simplify existing cargo clearance procedures and reduce documentary requirements to
the minimum necessary for effective customs enforcement;
- to integrate international best practices into the overall standard operating procedures in
the cargo clearance systems.
-- Customs Valuation
- to harmonise customs valuation methods in ASEAN Member Countries through adoption
and operation of the WTO Valuation Agreement.
-- Tariff Classification
- to promote transparency, consistency and uniformity in the classification of goods within
ASEAN Member Countries through the im plementation of an ASEAN Harmonised
Tariff Nomenclature (AHTN);
- to facilitate trade though consistent, predictable and assured classification rulings and
decisions.
-- Goods in Transit
- to facilitate the movement of goods in transit within and through ASEAN Member
Countries by the introduction of simplified and harmonised customs procedures and
requirements.
-- Automation
- to encourage the use of automation for customs cargo processing within ASEAN
countries with the objective of improving clearance times and increasing the level of
efficiency and effectiveness;
- to co-ordinate the development of national automated systems so as to ensure
compatibility in data requirements for possible future linkage within the region.
-- Enforcement
- to improve customs enforcement throughout the region by using risk management
techniques together with the latest technical developments and equipment
-- Temporarily Admitted Goods
- To simplify and harmonise the customs control of goods under temporary admission in
ASEAN Member Countries through simplified  and harmonised customs procedures and
requirements.G/C/W/80/Rev.1
Page 34
-- Strategic Planning and Management
- to encourage the development of strategic plans so as to provide the basis of a unified
regional approach to the management and direction of customs activity.
-- Mutual Assistance
- to establish a co-operative framework at the regional level for ensuring the effective and
prompt exchange of information, in particular, for the prevention, investigation and
repression of smuggling, trafficking of narcotics and psychotropic substances, and other
customs offences.
-- Transparency Enhancement
- to ensure that current methods of information dissemination are enhanced and broadened
on a regional basis.
-- Training and Human Resource Development
- to develop the human resource of ASEAN member administrations through training
programmes, study visits, attachments, courses and seminars so as to successfullyimplement the first five year cycle of Vision 2020.
-- Technical Assistance to New Members of ASEAN
- to provide technical assistance to the customs administrations of Cambodia, Laos,
Myanmar and Vietnam where particular needs have been identified.
-- International Customs Fora
- to promote awareness, understanding and adoption of international conventions,
standards, recommendations, guidelines and best practices relating to customs matters
among ASEAN member countries.
- to create a coherent unified approach by ASEAN Member Countries in relevant
international fora.
-- Partnership with the Business Community
- to strengthen and improve existing relationships and institutions of customs with the
business community.
- to lay initial foundation for the realisation of the overall objectives of the Plan of Action
on the Business Community to be achieved by the year 2020.
3. THE ASIA-EUROPE MEETING (ASEM)
3.1 The Asia-Europe Meeting (ASEM) is a gathering of heads-of-government from 10 Asian and the
15 European Union Member states
25 as well as the President of the European Commission. Its objective
is to strengthen the political, economic and cultur al ties between the two continents.  The inaugural
ASEM was held in Bangkok in March 1996, and it started a series of initiatives involving both the public
and private sectors of all ASEM Countries. At the Second ASEM, held in London in April 1998, a Trade
Facilitation Action Plan (TFAP) was adopted.  It aims, inter alia,  at reducing non-tariff barriers (NTBs),
increasing transparency and promoting trade opportuni ties between the two regions while complementing
and considering work being carried out in bilateral and multilateral fora.  The TFAP identifies seven
priority areas for the period of 1998-2000, i.e. customs procedures; standards, testing, certification and
accreditation; public procurement; quarantine and SPS procedures; intellectual property rights; mobility
of business people; and other trade activities.
                                                     
25 The ten Asian participants are: Brunei Darussalam, China, Indonesia, Japan, Republic of Korea,
Malaysia, The Philippines, Singapore, Thailand and Vietnam.G/C/W/80/Rev.1
Page 35
3.2 Although the TFAP is not itself a forum for negotiations, it contributes to the goal of promoting
greater trade between Asia and Europe and facilita ting and liberalising trade between the two regions.
Implementation of TFAP is supervised  by the Senior Officials’ Meeting on Trade and Investment
(SOMTI)26.
3.3 At the second Economic Ministers’ Meeting (E MM II) in Berlin on 9-10 October 1999, Ministers
specifically emphasised the importance of achieving substantive progress and of the need for the TFAP
agenda to be more forward-looking, focusing on co ncrete steps towards implementing its objectives.  In
urging a more practical approach, Ministers adopted a paper on the Future of TFAP. SOMTI VI (May
2000) recognized  that the seminars which took place in the different areas of work of TFAP have
enabled the officials to better understand each partner's policies and practices, to agree on a number of
best practices.  It also adopted a Consolidated and Prioritised List of the Major Generic Trade Barriersamong ASEM Partners with a view to reducing and removing them.
3.4 The following priority areas were identified in the TFAP for the period of 1998-2000.-- Customs procedures:  In supporting the on-going cooperation between customs authorities, the
TFAP will aim at promoting simplification, harmonisation and transparency in customs
procedures. This should include inter alia:
- an accelerated alignment and harmonisation of tariff nomenclatures with WTO and WCO
standards;
- an accelerated implementation of obligations with respect to customs valuation
procedures;
- the promotion of standardised and simplified documentation, including if possible
paperless systems;
- the promotion of transparency of customs regulations and procedures;- the collection and dissemination of information on ASEM partners' respective rules of
origin;
- where appropriate, the exploration of possible common positions of ASEM partners in
WTO and WCO.
-- Standards, testing, certification and accreditation : In supporting and enhancing the ongoing
cooperation between standards, testing, certific ation and accreditation bodies, the TFAP will in
particular aim at:
- enhancing the exchange of information among standards bodies and establishing national
contact points as appropriate;
- promoting and facilitating the alignment of domestic standards of ASEM partners with
international standards;
- promoting simplification and transparency in standards and certification information and
procedures, drawing on electronic media where appropriate;
- where appropriate, exploring possible co mmon positions amongst ASEM partners in
relation to the work of international standards bodies (such as ISO and IEC);
- where appropriate, preparing for eventual progress towards mutual recognition
agreements;
- encouraging co-operation in the promotion of technical and institutional capacity-
building relating to standards, testing and certification.
                                                     
26  For further information and documentation on ASEM and the TFAP, consult the following web-sites:
http://europa.eu.int/comm/external_relations/asem_ipap_vie/intro/index.htm,  and
http://europa.eu.int/comm/external_relations/asem/intro/index.htmG/C/W/80/Rev.1
Page 36
-- Public procurement : Considering ongoing work in other fora, the TFAP would aim at
promoting transparency in public procurement, in  particular through exchanging information on
public procurement procedures, statistics and opportunities.
-- Quarantine and SPS procedures : Considering ongoing work in other fora, the TFAP would
inter alia help promote:
- a simplification and rationalisation in procedures and documentation considering
international best practice; and
- the enhancement of transparency through the timely and accessible availability of
information, drawing where appropriate on electronic media.
-- Intellectual property rights : Considering ongoing work in other fora, the TFAP would promote
a broad-ranging dialogue among ASEM partners on IPR-related issues, thus encouraging an
enhanced understanding of the application of intellectual property rules in both the public and the
business sector.
-- Mobility of business people : With a view to facilitating direct business-to-business contact
between the two regions, the Business Forum shall be requested to examine and report on
concerns identified by the business community with  respect to formalities for business travel and
for temporary stay.
-- Other trade activities : Taking account of work in other areas, TFAP would inter alia aim at:
- promoting an exchange of views among partners, in both the public and business sector,
on the manner in which market access in the distribution sector can best be enhanced,
and
- creating an ASEM data-base or virtual market-place, providing the business sector with
easy access to comprehensive and up-to-date information on legal and administrative
trade regimes of ASEM partners, on business opportunities, and on market trends.
4. FREE-TRADE AREA OF THE AMERICAS  (FTAA)
4.1 The FTAA's origins date back to the first Summit of the Americas in Miami in December 1994
where the Heads of State of the 34 democracies in the region agreed to construct a "Free Trade Area of
the Americas" (FTAA).  The formal negotiations were launched by Leaders at the second Summit of the
Americas in Santiago in April 1998 with a commitment to conclude an agreement by 2005.   The Summit
process engages the member countries in an integrative and co-operative forum to promote economic,
social and political development27.
4.2 Under the oversight of the Trade Negotiations Committee, 9 Negotiating Groups address the
following issues: (i) Market Access; (ii) Investment, (iii) Services, (iv) Government Procurement, (v)
Dispute Settlement, (vi) Agriculture, (vii) Intellectual Property Rights, (viii) Subsidies, Antidumping and
Countervailing Duties, and (ix) Competition Policy.  Moreover, a Consultative Group on Smaller
Economies, a Committee on Civil Society, and a Joint Government-Private Sector Committee of Expertson Electronic Commerce were established.
4.3 The Trade Negotiations Committee is regularly convening special meetings of experts on
Customs-Related Business Facilitation Measures.  Work at these meetings has led to the adoption of 8
                                                     
27 For further information on the FTAA, see http://www.ftaa-alca.org/G/C/W/80/Rev.1
Page 37
customs-related Business Facilitation Measures by Trade Ministers in their Declaration at the fifth
Ministerial Meeting in Toronto on 4 November 1999.  Ministers stated that
“[I]in the area of customs, we agree to implement, beginning on January 1, 2000, the eight
specific measures set out in Annex II to this Declaration. These measures will contribute
significantly to the conduct of business in the hemisphere by reducing transaction costsand creating a more consistent and predictable business environment.”
4.4 The following Customs-Related Measures, annexed to the Declaration, were agreed:
-- Temporary Importation / Temporary Admission of Certain Goods Related to Business
Travellers:
Establish new or streamline existing customs procedures for the entry of, and suspension of
duties on, promotional documents and other goods related to business travel, whether or not these goods
accompany the business traveller.
Primary Elements:
i. Provide for suspension of customs duties
ii. Identify promotional documents and other goods that do not require guarantees upon entry
iii. Establish streamlined procedures for promotional documents and other goods that remain in the
country
iv. Establish an allowable time period for temporary importation/temporary admission
v. Where possible, minimize the cost and administrative complexity of obtaining guarantees for
temporary importation/temporary admission. Where possible, the amount of guarantees required
should not exceed the amount of duties otherwise payable
vi. Under normal circumstances, documentation and a pproval should be provided upon entry of the
business traveller
-- Express Shipments:
Develop and implement procedures to expedite express shipments, taking into account the WCO
Customs Guidelines for Express Consignments Clearance and the Cancun Memorandum, while
maintaining the appropriate control and customs selection.
Primary Elements:
i. Provide for separate expedited customs processing for express shipments
ii. Provide for pre-arrival processing of information and data related to express shipments
iii. Permit submission of a single manifest covering all of the goods in the shipment by the express
service company, through electronic or other means
iv. Where possible, and with the appropriate guarantees, provide for the release of certain goods
through submission of minimal documentation and/or deferred payment
v. In normal circumstances, express shipments should be released by customs authorities within 6
hours of the submission of necessary customs documentation provided the goods have arrived
vi. In response to requests from express shipment companies, consideration could be given to
providing extended hours of service and/or customs processing at premises under the control of
the customs authority, at the discretion of customs authorities
-- Simplified Procedures for Low Value Shipments:
Establish simplified, streamlined and expedited procedures for low value shipment transactions
while maintaining the appropriate customs control and selection.G/C/W/80/Rev.1
Page 38
Primary Elements:
i. Establish minimal documentation, data and procedural requirements based on value of goods
while maintaining the appropriate customs control and selection
ii. Develop procedures to permit the electronic submission of information
-- Compatible Electronic Data Interchange (EDI) Systems and Common Data Elements:
Establish compatible electronic data interchange systems between traders and customs
administrations that foster expedited clearance procedures. Develop a core set of data elements required
for the administration of national customs regulations and requirements associated with the customs
clearance of goods.
Encourage the establishment of compatible electronic data interchange systems between customs
administrations that foster increased cooperation and information exchange. Develop parameters for the
bilateral or plurilateral exchange of information related to compliance with customs regulations and
requirements.
Primary Elements:
i. Develop electronic systems accessible to the trading community
ii. Develop capacity for electronic submission and processing of information and data prior to
arrival of the shipment
iii. Develop capacity for customs electronic/automated systems to work in conjunction with risk
analysis and targeting
iv. Work towards developing compatible electronic systems among customs administrations
v. As an initial phase, identify current data elements used in electronic systems established per
elements (i) to (iv) required by each customs administration, including, if feasible, those data
elements required to determine admissibility of entries or those required by other agencies
vi. Work towards developing a set of common data elements for customs clearance of goods
-- Harmonized Commodity Description and Coding System:
Apply the 1996 Harmonized Commodity Description and Coding System, at the six digit level.
-- Customs Information Dissemination/Hemispheric Guide on Customs Procedures:
Disseminate widely in the most user-friendly manner, basic up-to-date information on customs
procedures, laws, regulations, guidelines, and administrative rulings, taking into account the HemisphericGuide on Customs Procedures prepared by the Working Group on Customs Procedures and Rules of
Origin.
Primary Elements:
i. Update the Hemispheric Guide on Customs Procedures
ii. Disseminate the updated Hemispheric Guide on Customs Procedures through the FTAA Home
Page
iii. Establish hyperlinks from the FTAA Home Page to national customs administrations’ homepages
for future updates to the country-specific information contained in the Hemispheric Guide onCustoms ProceduresG/C/W/80/Rev.1
Page 39
-- Codes of Conduct for Customs Officials:
Elaborate and implement national codes of conduct applicable to customs officials, taking into
account the Arusha Declaration.
Primary Elements:
i. Introduction of, or amendment to, national codes of conduct, legislation, policies or regulatory
instruments applicable to customs officials with provisions on standards of conduct, conflict of
interest, and possible sanctions and disciplinary action
ii. Review of the 12 elements contained in the WCO Arusha Declaration for assessment of current
practices and development of national implementation programs
-- Risk Analysis/Targeting Methodology:
Encourage risk management systems used as criteria for required verification activities, while
respecting the confidentiality of information. The obj ective would be to allow for focusing of customs
enforcement activities on high-risk goods and travellers while facilitating clearance and movement oflow-risk goods.
Primary Elements:
i. Develop processing and release customs procedures and systems that include risk analysis and
targeting to identify high-risk goods, shipments and travellers
ii. Risk analysis through pre-arrival processing of information and data to identify or target high
risk-goods, shipments and travellers that will be subject to inspection and/or other customs
procedures
4.5 In addition to these customs related measures, Ministers agreed to take a number of transparency
measures in order to “make our procedures and regulations better known and more accessible to the
public28.
4.6 Ministers further agreed that business facilitation is an ongoing process.  They directed the TNC.-- to supervise the full implementation of these measures by the target date of our next Ministerial
meeting;
-- to facilitate the provision of technical assistance for implementing the measures, in particular for
the smaller economies;
-- to review progress and report to us at our next meeting; and
-- to identify, consider and recommend additional business facilitation measures, calling on experts
as appropriate, and report to us at our next meeting.
4.7 Technical assistance to facilitate implementation of these measures, particularly in smaller
economies will be carried out by FTAA countries, as well as the Inter-American Development Bank.
5. COMMON MARKET OF THE SOUTH (MERCOSUR)
5.1 Until 1999 neither a special forum, nor a comprehensive approach on trade facilitation existed
among Mercosur member economies.  Based on the Treaty of Asuncion (1991) and the Protocol of Ouro
                                                     
28 These transparency measures do not relate directly to transparency as concer ns trade procedures.  They
address mainly publication and dissemination of FTAA documents.  The annex can be accessed at http://www.ftaa-
alca.org/ministerials/minisA3e.aspG/C/W/80/Rev.1
Page 40
Preto (1994), which sketch the principles and the aims of the integration process, a number of Working
Groups and Technical Committees were set up in order to foster harmonisation of the rules and
procedures that prevailed in each Member State, as well as to draw common regulations.  The main
Working Groups and Technical Committees involved in trade and customs facilitation are: WG-3
(Technical Barriers), WG-5 (Transport), WG-8 (Agriculture), WG-11 (Health) and TC-2 (Customs-
related matters).  These bodies are co-ordinated by the Common Market Group (GMC) and the MercosurTrade Commission (CCM).
5.2 However, based on the 1992 Recife Agreement, common border control points were
implemented in 1994.  Since then, seven common border points destined to goods control were
implemented, five of which are located in Brazilian borders.  There are also some common border points
destined to tourism control (people and low-value goods) in operation. The implementation of these
control points is generally discussed bilaterally, and priority is given to those specific borders thataccount for significant trade flows.  Use of pre-existent customs infrastructure is generally stimulated so
as make efficient use of existing resources.   In 1997, an “Agreement on Co-operation and Mutual
Assistance among Customs Administrations concerning prevention and repression of illicit practices”
was concluded and implemented between the four Mercosur member economies. This Agreement
supplements the bilateral co-operation that exists between common customs points at borders.
5.3 With the significant increase of trade flows among Member States, rising from US$ 4 billion in
1991 to US$ 20 billion in 1998, trade and customs restraints within Mercosur became increasingly
visible.  To overcome these obstacles, the four Mercosur member States decided to adopt a "package" of
measures designed to facilitate commercial transactions.  This Decision by the Common Market Councildeveloped into a more consistent and detailed program known as "Plan of Asuncion."  This Plan, the
implementation of which is still under negotiation, emphasizes
-- common regulation of administrative procedures, such as imports licenses, certificates and
authorisations issued by member states’ public organisms, as well as transparency mechanismsfor the adoption of these procedures.
-- interconnection of customs administrations database systems concerning import/export
operations.
-- harmonisation of operational procedures, in order to foster simultaneous intervention by Member
States public organisms responsible for goods trade control.
-- implementation of a Single Customs Form.-- better performance of the Integrated Borders Control Areas set up by Decision CMC 5/93.
5.4 In addition to the points set out in the Action Plan, directives have been enacted to implement a
single freight form, a single request form for temporary export and import of goods, a single value
declaration form, a single phytosanitary certificate, common rules for phytosanitary inspections, and a
working timetable for integrated borders control areas.  In addition, a Mercosur Harmonised Product
Description and Coding System Nomenclature (NCM), a directive on mutual recognition and equivalenceof control systems have been implemented.  Moreover, a new version of a Mercosur Customs Code has
been under negotiation since 1996.
6. G7 INITIATIVE ON HARMONIZATION AND STANDARDIZATION OF CUSTOMS
DATA REQUIREMENTS
6.1 At the Lyon summit in June 1996, the G7 heads of state and government launched an initiative
for the standardization and simplification of customs procedures.  The G7 finance ministers and the
representative of the European Commission took up this initiative in connection with the preparations forG/C/W/80/Rev.1
Page 41
the 1998 G7 summit in Birmingham, formulated the mandate to the experts and set the year 2000 as a
target date. At the Kyushu-Okinawa Summit Meeting of the G7 finance ministers in Japan in July 2000,
the results achieved so far were approved and the mandate from the year 1996 was brought up to date. It
now reads as follows:
"Regarding customs procedures we endorse our customs experts' report on their efforts to
standardise and simply electronic customs declarations. We urge them to set a timetable
for implementation, in which other countries and organisations are invited to participate;
take steps to develop "single window" systems to allow traders to report data required by
customs and other agencies once to release goods; and to adopt the principles of the use
of IT set out in the revised Kyoto Customs Convention."
6.2 Work undertaken addresses the following issues:
-- Paperless data interchange
The work undertaken so far under the G7 Initiative, in particular the development of the data sets
for the various customs procedures and processes, have been geared exclusively to the requirements ofelectronic data interchange.  No consideration has been given to paper-based procedures.   G7 member
countries are aiming at common electronic messages (customs declarations for imports and exports) on
the basis of the international EDI standard UN/EDIFACT.
-- Harmonised and standardized data
Uniform data requirements is a key element of the G 7 Initiative and is crucial to create benefits
for the trade. For this reason the G 7 discussions include harmonization of data requirements of the
participating countries for import and export, creation of common definitions and standardization of the
data content and its format.
-- Reducing the amount of data
G 7 countries are also committed to reduce the amount of data required for the clearance of
goods. Currently, the data elements contained in the import data set have been reduced from more than800 to approx. 120.  The participating countries have agreed to regard the data sets as maximum data sets
in connection with import and export declarations for "ordinary" goods. No country should ask for more
information on a routine basis.  However, every country has the option of further reducing its data
requirements to as few data as they deem necessary for the clearance of these "ordinary" goods.  No final
definition has yet been achieved on what exactly constitutes "ordinary" goods.  However, there seems to
be general agreement that goods are not considered to be "ordinary" if, for instance, they fall under
prohibitions and restrictions or are subject to special trade policy measures.
-- Data Interchange and the concept of a "Seamless data flow"
The G 7 Initiative also follows the concept of a seamless data flow. The idea behind this concept
is that the export data requirements and the respective electronic export declaration of all participatingcountries have the same structure as the import data requirements and the electronic import declaration.
This will allow traders to exchange export information more effectively and efficiently, because it can be
used as the basis for the import declaration without reformatting.  Another aspect of the seamless data
flow is also that the trader should be allowed to  send the full G7 data set to a participating customs
administration regardless of their actual amount of data requirements. The customs administration at thereceiving end will take only those data elements that they need for the processing of the Goods
declaration and disregard the remaining data elements . This will enable the trader to implement a single
interface to customs services using the G7 data sets.G/C/W/80/Rev.1
Page 42
-- Standardisation of the data requirements of other governmental agencies
Under the initiative dating from the year 1996, work on standardising the import data required for
agriculture and public health has begun in co-operation with other relevant governmental agencies
(ministries of health, transport and agriculture). The standardisation of these data could pave the way for
"single window" systems so that traders would have to report only once the information needed by thecustoms and other authorities for clearance. This would not involve any change in the competencies of
the various authorities or in authorisation procedures before or after import.
-- Production of customs prototypes
Although under the "conclusions of the finance ministers meeting of the Birmingham Summit"
all the G 7 countries were obligated to take all possible steps to produce customs prototypes or otherprocedures by the time of the summit in the year 2000, it emerged that this deadline was too ambitious.
Nevertheless, work was begun on the prototypes for testing the standardised data and several countries
are already introducing their prototypes.  A UK-US pr ototype was foreseen to be launched in 2000, and a
Japanese prototype by 2002.
Present status of the developed data sets
6.3 The data sets needed for the various customs procedures in the G 7 countries have been drawn
up.  In order that the various procedures may be co mpared and appraised, the individual data sets have
been combined in a comprehensive file.  This  comprehensive file, the "G7 DATA BASE", is
continuously being brought up to date according to the standards of the G 7 working group. The
individual data sets have the following names and functions:
"Cargo report" data set: Within the area of formalities prior to the lodgement of the
Goods declaration, the "cargo report" data set provides the basis for an electronic cargo report using theCUSCAR message. This data set contains currently 55 data elements.
"Import" data set: The "import data set" provides the basis for an electronic Goods
declaration for imports corresponding to today's single administrative document..  It encompasses both
the data elements required for the Goods declaration in the one-step procedure and also those required fora complementary Goods declaration under a two-step procedure.  This data set contains currently 125
data elements.
"Cargo release" data set: The "cargo release" data set provides the basis for an electronic
simplified Goods declaration under a two-step proc edure. Under a two-step procedure, customs will
release the goods on the grounds of this simplified first step Goods declaration. This data set is a subset
of the import data set and contains currently 70 data elements.
"Export" data set: The "export" data set provides the basis for the Goods declaration for
exports. It is still under discussion whether there will be different data sets for one- and two-step export
procedures. The export data set contains currently 97 data elements.
Involvement of the World Customs Organizati on (WCO), the European Union (EU) and the
Asia-Pacific Economic Cooperation (APEC)
6.4 Due to its extensive experience in the development of customs standards and in the
harmonization of customs procedures, the WCO has been involved from the outset in this G7 Initiative.In addition, the WCO had initiated and co-ordinat ed the development of the UN/EDIFACT customs
messages.  The G7 customs experts are in agreement that the WCO should take over the management of
the G7 results (data records and UN/EDIFACT messages)  in order to take them beyond the framework ofG/C/W/80/Rev.1
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the G7 into an internationally valid and implemente d standard.  For this purpose the WCO had previously
started its own WCO Common Customs Data Model project, in which the G7 results could be integrated.
6.5 The simplifications sought at G7 level cannot be implemented without changes in the legislation
of the G7 countries. For the four G7 countries being member of the EU this will mean changing the EU
customs law, which is applicable to all 15 EU members.  This requires agreement over the G7 resultsfrom all EU customs administrations, but it mean s at the same time that the G7 results will be
implemented in many more countries from the outset.  Therefore, the European Commission has been
involved in the G7 discussions from the very beginning.
6.6 Moreover, the customs experts have agreed in March 1999 to invite a representative of a similar
APEC project to the G7 discussions, in order to ensure that the development of the APEC project can be
harmonized and synchronized with that of the G7 initiative, and facilitate dissemination of the G7 resultsthroughout the 20 countries of the Asian-Pacific economic area.  It is understood that if all EU and APEC
countries implement the G7 proposals, they will be very close to becoming a de facto international
standard.
Outlook
6.7 Work in the area of data harmonisation and EDIFACT mapping has almost been completed for
import and export procedures.  In view of the fact that EDI standard messages are most efficient in
reducing costs for traders and authorities when they are applied as widely as possible, G 7 customs
experts have called upon other countries and organisations to participate in the prototypes as well.Mexico, Australia, New Zealand and Singapore have already shown interest in such a participation.G/C/W/80/Rev.1
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C. ANNEXES
ANNEX I: UN/ECE RECOMMENDATIONS
1.  United Nations Layout Key for Trade Documents
Provides an international basis for the standardiza tion of documents used in international trade and
transport, including the visual representation of such documents.  The UN Layout Key is intended
particularly to serve as a basis for designing aligned series of forms employing a master document in a
reprographic one-run method of document preparation; it can also be applied for the layout of visual
display presentations in electronic data processing applications.
2.  Location of Codes in Trade Documents
The text was incorporated into Recommendation No. 1 "United Nations Layout Key for Trade
Documents".
3.  ISO Country Code for Representation of Names of Countries
Known as the "ISO ALPHA-2 Count ry Code", for use in representing the names of countries,
dependencies, and other areas of special geographical interest for purposes of international tradewhenever there is a need for a coded alphabetical designation.
4.  National Trade Facilitation Bodies
Encourages  the establishment of national trade facilitation bodies, or other suitable means with balanced
private and public sector participation for the implementation of recommendations on the facilitation ofinternational trade procedures.
5.  Abbreviations of INCOTERMS
Proposes abbreviations of trade terms for acceptance and use by GOVERNMENTS  and international
organizations whenever these terms are referred to in abbreviated form and mutually promote their use insupport of a common approach to trade facilitation.
6.  Aligned Invoice Layout Key
Provides a layout key aligned with the UN Layout Key, for commercial invoices, for international trade.
Invoices based on this Recommendation are intended - to the extent possible - to present the required datain such a way that existing documents could be complemented or in certain cases replaced (e.g. customs
invoices, consular invoices, declarations of origin, etc.).
7.  Numerical Representation of Dates, Time and Periods of Time
Establishes a method for a standardized and unambiguous all-numerical designation of a given date, time
of day and a given period of time.  It applies to all cases where these data are presented as separate entries
in numerical form but not when they are part of a plain language text.
8.  Unique Identification Code Methodology (UNIC)
Establishes a unique consignment reference number with the objective of reducing the number of
different references used by parties in international and national trade transactions.  It is not intended as a
method of product identification.G/C/W/80/Rev.1
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9.  Alphabetic Code for the Representation of Currencies
Encourages the use of the three-letter alphabetic codes of International Standard ISO 4217, "Codes for
the representation of currencies and funds", for application in international trade and their use in
commercial transactions when currencies are expressed in coded or abbreviated form.  The code is
designed to be equally suitable for automated or manual applications.
10.  Codes for the identification of ships
Encourages the use of the International Maritime Or ganisation's Ship Identification Number Scheme for
the unique identification of ships and the use of only the final seven characters of the IMO number in EDI
applications.
11.  Documentary Aspects of the International Transport of Dangerous Goods
Sets forth actions to harmonize information requirements and to simplify documentary procedures for the
transport of dangerous goods in order to decrease complexity and increase accuracy and efficiency.
12.  Measures to Facilitate Maritime Transport Documents Procedures
Aims to simplify and harmonize procedures and docu ments used by ship-owners, consignees, banks and
other parties involved in the maritime transport of goods to evidence the contract of carriage.  This
Recommendation applies to consignment-based documents evidencing contract or undertaking to carrygoods by vessel, and to related procedures.  It also applies to multimodal transport, as appropriate.
13.  Facilitation of Legal Problems in Import Clearance Procedures
Recommends to GOVERNMENTS  a series of modifications, which could be introduced into national
laws and regulations to permit customs and regulatory bodies to clear imports more efficiently and tobenefit from advances in modern information technology.
14.  Authentication of Trade Documents by means other than signature
Seeks to encourage the use of electronic data transfer in international trade by recommending that
governments review national and international requirements for signatures on international tradedocuments, in order to eliminate the requirement for paper documents and meeting the requirement of
signatures by the authentication guaranteed by the means of transmission.  It also recommends examining
current commercial documents to identify those where signature could be safely eliminated and
promoting the necessary changes in commercial practice.
15.  Simpler Shipping Marks
Aims at establishing a standard consignment identifier in the form of a simplified and standardized
shipping mark, for marking on packages and for reproduction in documents. It should be used for
marking on packages moved internationally by all modes of transport.
16.  UN/LOCODE - Code for Ports and other Locations
Aims at providing a list of such locations which are of interest in international trade and
transport and whose names need to be quoted in an  unambiguous way in data interchange. At the
same time establishes coded representations of the names of these locations and gives guidance
for their use.
17.  PAYTERMS - Abbreviations for Terms of Payment
Provides abbreviations for certain terms of payment, referred to as "PAYTERMS", for use in
international commercial trade transactions relating to the provision of goods and/or services.G/C/W/80/Rev.1
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18.  Facilitation Measures Related to International Trade Procedures
Outlines a series of measures related to the movement of goods, presented in groups covering different
phases of a common international trade transaction, which on their own would not justify an independent
formal recommendation but which governments should consider implementing.  Each section describes
the application area, outlines the procedures and documents covered, and describes the particular
problems for which facilitation measures are needed.
19.  Codes for Modes of Transport
Establishes a one-digit numerical code for representing transport modes and provides for a second digit
for sub-divisions which might be required.  This Recommendation applies to all cases where mode of
transport is represented in coded form in international trade documents and where a simple code structure
suffices.
20.  Codes for Units of Measurement used in International Trade
Provides three character alphabetic and alphanumeric codes for representing units of measurement for
length, area, volume/capacity, mass (weight), time and other quantities used in international trade.  The
codes are intended for use in manual and/or automate d systems for the exchange of information between
participants in international trade.
21.  Codes for Types of Cargo, Packages and Packaging Materials
Establishes a numeric code system to describe the appearance of goods as presented for transport to
facilitate identification, recording, handling, and establishing handling tariffs.  The recommendation also
establishes complementary alphabetic codes to represent the names of packages and provides pictorialsymbols to provide a visual association between the codes and the types of packages that they represent.
22.  Layout Key for Standard Consignment Instructions
Presents a layout key, based on the UN Layout Key for Trade Documents, for the design of Standard
Consignment Instructions intended to convey instructions from either a seller/consignor or abuyer/consignee to a freight forwarded, carrier or his agent, or other provider of services, enabling the
movement of goods and associated activities.  This Recommendation is relevant to the movement and
handling of goods, customs, distribution of documents, allocation of charges and special instructions.
23.  Freight Cost Code - FCC
Provides a naming system to be used for the establishment of harmonized descriptions of freight costs
and other charges related to the international movement of goods.  Further, it specifies a code for the
assignment of unambiguous coded representations of those descriptions.  This Recommendation applies
in all cases where descriptions of freight costs and other charges have to be stated in plain language or in
coded form in trade data interchange, be it in paper documents or by electronic means.
24. Trade and Transport Status Codes
Establishes a common code list for the identification of status information on goods, consignments and/or
equipment.
25.  Use of the United Nations Electronic Data Interchange for Administration, Commerce and
Transport (UN/EDIFACT)
Aims at coordinated actions by governments for the introduction of UN/EDIFACT as a single
international standard for electronic interchange of data (EDI) between public administrations and private
companies of all economic sectors world-wide.
26. Commercial use of Interchange Agreements for Electronic Data Interchange
Promotes the use of interchange agreements between commercial parties using Electronic Data
Interchange in connection with international commercial transactions. The Recommendation includes a
Model Interchange Agreement for international use th at even though designed for bilateral agreementsG/C/W/80/Rev.1
Page 47
between two trading partners, the model with adjustments can be implemented in multilateral
relationships, such as in a trade community or association.
27. Preshipment Inspection
Discourages the practice of preshipment inspection (PSI) in general while supporting the WTO
instrument regarding preshipment inspection where such inspections are considered necessary as aninterim measure.
28. Codes for Types of means of transport (under development)
29. Codes for Types of Cargo  (under development)
30. Harmonized Commodity Description and Coding sy stem for the Coding of Goods and Commodities
(under development)
31. Electronic Commerce Agreement
Proposes a model for a contractual approach of electronic commerce operations. This approach takes into
consideration the need for a framework of basic provisions to be agreed by business entities combinedwith the flexibility required to conduct day-to-day commercial transactions.G/C/W/80/Rev.1
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ANNEX II: EXPLANATION OF EDI AND UN/EDIFACT
Electronic Data Interchange (EDI) developed out of the need of public and private organizations
to communicate efficiently with each other, and takes advantage of modern information technology.
Traditional business communication occurs in two forms:  unstructured (e.g. memo and letters) and
structured (e.g. business transactions such as purchase orders, despatch advice, invoices, payments).  EDI
covers the exchange of structured messages, while electronic mail deals with unstructured types ofcommunications.  With a structured message, such as a purchase order, the data is formatted according to
an agreed standard, thus facilitating the electronic transfer from one computer system to another.  Often
referred to as application to application communicatio ns between computer systems, the intent is to have
a "hands off" operation that allows for the exchange of business or administrative data between trading
partners.
Recent productivity strategies among the business community, such as Just in Time (JIT) and
Quick Response (QR), are efforts to become more efficient.  This requires organizations to streamline
their operations by eliminating all procedures that do not add value to the business process.  A majority of
multinational and large regional organizations are implementing EDI and are increasingly requiring all
trading partners to be "EDI capable". For intern ational trade, complex document requirements and
business relationship would benefit from EDI streamlining. International trade generally involvestransportation carriers, freight forwarders, brokers, banks insurers, customs administrations and other
government agencies.  The data entered by the initiating party is generally required by all other parties
involved.  EDI allows all parties to exchange this initial data without manual copying or data-entry, thus
reducing time and errors.
In an EDI environment, it would not be efficient,  or indeed realistic, for everyone to exchange
their own versions of a single document (e.g. purchase order). The availability of a library or directory of
common messages and message components was recognized as a means to promote a universal technique
for exchanging of business data.  Until ten years ago, this was achieved by various initiatives at a group,
industry and country level.  There was an obvious need for an international standard.  UN/EDIFACT wasdeveloped in this context and now covers a wide range of industry sectors, including purchasing,
transport, banking, insurance, product and quality data, materials management, statistics, travel, tourism
and leisure, customs, architecture, engineering and construction, health care, social administration and
employment.
UN/EDIFACT consists of a comprehensive set of rules and procedures based on the idea of
standardizing or coding at all levels of information;  every piece of information should be represented by
a mnemonic, or a symbol which represents that piece unambiguously. In addition, the order in which the
mnemonics are placed must also be standardized. UN/EDIFACT provides these codes and their format.
The format is called the EDIFACT syntax, which can be  thought of as the electronic equivalent of the
United Nations Layout Key.  The syntax contai ns the rules for how UN/EDIFACT messages should be
structured and is an ISO standard (ISO 9735).  Wi thin this syntax standard, an EDIFACT message is
defined as a series of building blocks.  Each of these building blocks is standardized and for each type of
building block there is a separate, UN/EDIFACT directory which forms part of the UN/EDIFACT
standard.
The syntax rules govern the structure of United Nations Standard Messages (UNSM) which is a
structured set of data values relating to a business function, organized as a collection of sequenced
segments.  The segments consist of data elements that, together, define a precise concept.  The UNSM is
designed to be applicable across business sectors.  UN/EDIFACT concerns the message only; the
communication method is not part of the standard, thus messages can be sent across both commercial and
public networks as well as the Internet.  UN/EDIFACT is also independent of hardware and software, just
as the recommendations do not define how to write on the paper, using pencil, typewriter, etc.  Many
such messages have been developed and are contained in the UN/EDIFACT United Nations StandardG/C/W/80/Rev.1
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Message Directory (UNSM).  More than 200 UNSMs are specified in the latest Directory with further
messages under development.
The UN/EDIFACT Directory is maintained and developed by the UN/CEFACT EDIFACT
Working Group (EWG). The UN/EDIFACT Directories are approved and published following each
EWG meeting, in accordance with an approved version/release process.  As part of this process, there is aformal audit to ensure the quality of the UN/EDIFA CT product.  These directories are available for the
UN/ECE Trade Facilitation Internet site (http://www.uncefact.org) as well as from national, regional and
international organizations that support the process, and the ECE Secretariat.
EDIFACT has attempted to solve the problem of trimming the UNSMs to suit the requirements
of a particular industry sector.  EDI organizations  in each region create what are called Message
Implementation Guidelines (MIGs) which are put into an EDIFACT message through an ImplementationDefinition (IMPDEF).  These MIGs take a UNSM which is a data model of a certain business transaction
in any industry, in any country and between any number of partners and trim it into a model for a specific
industry, country and groups of partners
EDI is now used by more than half a million enterprises, administrations and organizations
throughout the world and this number is likely to exceed 3 million by 2003 .G/C/W/80/Rev.1
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ANNEX III: INTERNATIONAL CONVENTION ON THE SIMPLIFICATION AND
HARMONIZATION OF CUSTOMS PROCEDURES (KYOTOCONVENTION): REVISED GENERAL ANNEX
CHAPTER 1
GENERAL PRINCIPLES
1.1. Standard
The Definitions, Standards and Transitional
Standards in this Annex shall apply to Customs
procedures and practices specified in this Annex and,insofar as applicable, to procedures and practices in theSpecific Annexes.
1.2. Standard
The conditions to be fulfilled and Customs
formalities to be accomplished for procedures andpractices in this Annex and in the Specific Annexes shallbe specified in national legislation and shall be as simple
as possible.
1.3. Standard
The Customs shall institu te and maintain formal
consultative relationships with the trade to increase co-
operation and facilitate participation in establishing the
most effective methods of working commensurate withnational provisions and international agreements.
CHAPTER 2
DEFINITIONS
For the purposes of the Annexes to this Convention :
E1./F23.
“appeal”  means the act by which a person who
is directly affected by a decision or omission of the
Customs and who considers himself to be aggrieved
thereby seeks redress before a competent authority;E2./F19.
“assessment of duties and taxes”  means the
determination of the amount of duties and taxes payable;
E3./F4.
“audit-based control”  means measures by which
the Customs satisfy themselves as to the accuracy andauthenticity of declarations through the examination of therelevant books, records, business systems and commercial
data held by persons concerned;
E4./F15.
“checking the Goods declaration”  means the
action taken by the Customs to satisfy themselves that the
Goods declaration is correctly made out and that the
supporting documents required fulfil the prescribed
conditions;
E5./F9.
“clearance”  means the accomplishment of the
Customs formalities necessary to allow goods to enterhome use, to be exported or to be placed under another
Customs procedure;
E6./F10.
“Customs”  means the Government Service
which is responsible for the administration of Customslaw and the collection of duties and taxes and which also
has the responsibility for the application of other laws and
regulations relating to the importation, exportation,movement or storage of goods;
E7./F3.
“Customs control”  means measures applied by
the Customs to ensure compliance with Customs law;
E8./F11.
“Customs duties”  means the duties laid down in
the Customs tariff to which goods are liable on entering orleaving the Customs territory;G/C/W/80/Rev.1
Page 51
E9./F16.
“Customs formalities”  means all the
operations which must be carried out by the persons
concerned and by the Customs in order to comply withthe Customs law;
E10./ F18.
“Customs law”  means the statutory and
regulatory provisions relating to the importation,
exportation, movement or storage of goods, theadministration and enforcement of which are specificallycharged to the Customs, and any regulations made by the
Customs under their statutory powers;
E11./ F2.
“Customs office”  means the Customs
administrative unit competent for the performance ofCustoms formalities, and the premises or other areasapproved for that purpose by the competent authorities;
E12./ F25.
“Customs territory”  means the territory in
which the Customs law of a Contracting Party applies;
E13./ F6.
“decision”  means the individual act by which the
Customs decide upon a matter relating to Customs law;
E14./ F7.
“declarant”  means any person who makes a
Goods declaration or in whose name such a declaration ismade;
E15./ F5.
“due date”  means the date when payment of
duties and taxes is due;
E16./ F12.
“duties and taxes” means import duties and taxes
and/or export duties and taxes;
E17./ F27.
“examination of goods”  means the physical
inspection of goods by the Customs to satisfy themselvesthat the nature, origin, condition, quantity and value of thegoods are in accordance with the particulars furnished in the
Goods declaration;
E18./ F13.
“export duties and taxes”  means Customs duties
and all other duties, taxes or charges which are collected on
or in connection with the exportation of goods, but notincluding any charges which are limited in amount to theapproximate cost of services rendered or collected by the
Customs on behalf of another national authority;
E19./ F8.
“Goods declaration”  means a statement made in
the manner prescribed by the Customs, by which the personsconcerned indicate the Customs procedure to be applied tothe goods and furnish the particulars which the Customs
require for its application;
E20./ F14.
“import duties and taxes”  means Customs
duties and all other duties, taxes or charges which arecollected on or in connection with the importation of goods,
but not including any charges which are limited in amount to
the approximate cost of services rendered or collected by theCustoms on behalf of another national authority;
E21./ F1.
“mutual administrative assistance” means
actions of a Customs administration on behalf of or in
collaboration with another Customs administration for theproper application of Customs law and for the prevention,investigation and repression of Customs offences;
E22./ F21.
“omission”  means the failure to act or give a
decision required of the Customs by Customs law within areasonable time on a matter duly submitted to them;
E23./ F22.
“person” means both natural and legal persons,
unless the context otherwise requires;
E24./ F20.
“release of goods”  means the action by the
Customs to permit goods undergoing clearance to be placedat the disposal of the persons concerned;
E25./ F24.
“repayment” means the refund, in whole or in
part, of duties and taxes paid on goods and the remission, inG/C/W/80/Rev.1
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whole or in part, of duties and taxes where payment has not
been made;
E26./ F17.
“security” means that which ensures to the
satisfaction of the Customs that an obligation to the Customs
will be fulfilled.  Security is described as “general” when itensures that the obligations arising from several operationswill be fulfilled;
E27./ F26.
“third party”  means any person who deals
directly with the Customs, for and on behalf of anotherperson, relating to the importation, exportation, movementor storage of goods.
CHAPTER 3
CLEARANCE AND OTHER CUSTOMS
FORMALITIES
Competent Customs offices
3.1. Standard
The Customs shall designate the Customs
offices at which goods may be produced orcleared.  In determining the competence andlocation of these offices and their hours of
business, the factors to be taken into account
shall include in particular the requirements ofthe trade.
3.2. Standard
At the request of the person concerned and for
reasons deemed valid by th e Customs, the latter shall,
subject to the availability of resources, perform thefunctions laid down for the purposes of a Customsprocedure and practice outside the designated hours ofbusiness or away from Customs offices.  Any expenses
chargeable by the Customs shall be limited to the
approximate cost of the services rendered.
3.3. Standard
Where Customs offices are located at a common
border crossing, the Customs administrations concerned
shall correlate the business hours and the competence of
those offices.3.4. Transitional Standard
At common border crossings, the Customs
administrations concerned shall, whenever possible,
operate joint controls.
3.5. Transitional Standard
Where the Customs intend to establish a new
Customs office or to convert an existing one at a
common border crossing, they shall, wherever possible,co-operate with the neighbouring Customs to establish ajuxtaposed Customs office to facilitate joint controls.
The Declarant
(a) Persons entitled to act as declarant
3.6. Standard
National legislation shall specify the conditions
under which a person is entitled to act as declarant.
3.7. Standard
Any person having the right to dispose of the
goods shall be entitled to act as declarant.
(b) Responsibilities of the declarant
3.8. Standard
The declarant shall be held responsible to the
Customs for the accuracy of the particulars given in the
Goods declaration and the payment of the duties andtaxes.
(c) Rights of the declarant
3.9. Standard
Before lodging the Goods declaration the
declarant shall be allowed, under such conditions as maybe laid down by the Customs :
(a) to inspect the goods; and
(b) to draw samples.G/C/W/80/Rev.1
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3.10. Standard
The Customs shall not require a separate Goods
declaration in respect of samples allowed to be drawnunder Customs supervision, provided that such samplesare included in the Goods declaration concerning the
relevant consignment.
The Goods declaration
(a) Goods declaration format and contents
3.11. Standard
The contents of the Goods declaration shall be
prescribed by the Customs.  The paper format of the
Goods declaration shall conform to the UN-layout key.
For automated Customs clearance processes, the
format of the electronically lodged Goods declaration
shall be based on international standards for electronicinformation exchange as prescribed in the Customs Co-operation Council Recommendations on information
technology.
3.12. Standard
The Customs shall limit the  data required in the
Goods declaration to only such particulars as are deemednecessary for the assessment and collection of duties and
taxes, the compilation of statistics and the application of
Customs law.
3.13. Standard
Where, for reasons deemed valid by the Customs,
the declarant does not have all the information required
to make the Goods declaration, a provisional or
incomplete Goods declaration shall be allowed to belodged, provided that it contains the particulars deemednecessary by the Customs and that the declarant
undertakes to complete it within a specified period.
3.14. Standard
If the Customs register a provisional or
incomplete Goods declaration, the tariff treatment to beaccorded to the goods shall not be different from thatwhich would have been accorded had a complete and
correct Goods declaration been lodged in the first
instance.
The release of the goods shall not be delayed
provided that any security required has been furnished to
ensure collection of any applicable duties and taxes.3.15. Standard
The Customs shall require the lodgement of the
original Goods declaration and only the minimumnumber of copies necessary.
 (b) Documents supporting the Goods declaration
3.16. Standard
In support of the Goods declaration the Customs
shall require only those documents necessary to permit
control of the operation and to ensure that allrequirements relating to the application of Customs lawhave been complied with.
3.17. Standard
Where certain supporting documents cannot be
lodged with the Goods declaration for reasons deemed
valid by the Customs, they shall allow production ofthose documents within a specified period.
3.18. Transitional Standard
The Customs shall permit the lodgement of
supporting documents by electronic means.
3.19. Standard
The Customs shall not require a translation of the
particulars of supporting documents except whennecessary to permit processing of the Goods declaration.
Lodgement, registration and checking of the Goods
declaration
3.20. Standard
The Customs shall permit the lodging of the
Goods declaration at any designated Customs office.
3.21. Transitional Standard
The Customs shall permit the lodging of the
Goods declaration by electronic means.
3.22. Standard
The Goods declaration shall be lodged during the
hours designated by the Customs.G/C/W/80/Rev.1
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3.23. Standard
Where national legislation lays down a time
limit for lodging the Goods declaration, the time allowed
shall be sufficient to enable the declarant to complete the
Goods declaration and to obtain the supportingdocuments required.
3.24. Standard
At the request of the declarant and for reasons
deemed valid by the Customs,  the latter shall extend the
time limit prescribed for lodging the Goods declaration.
3.25. Standard
National legislation shall make provision for the
lodging and registering or checking of the Goods
declaration and supporting documents prior to the arrival
of the goods.
3.26. Standard
When the Customs cannot register the Goods
declaration, they shall state the reasons to the declarant.
3.27. Standard
The Customs shall permit the declarant to
amend the Goods declaration that has alreadybeen lodged, provided that when the request isreceived they have not begun to check the
Goods declaration or to examine the goods.
3.28. Transitional Standard
The Customs shall permit the declarant to amend
the Goods declaration if a request is r eceived after
checking of the Goods declaration has commenced, if the
reasons given by the declarant are deemed valid by the
Customs.
3.29. Transitional Standard
The declarant shall be allowed to withdraw the
Goods declaration and apply for another Customsprocedure, provided that the request to do so is made to
the Customs before the goods have been released and
that the reasons are deemed valid by the Customs.
3.30. Standard
Checking the Goods declaration shall be effected
at the same time or as soon as possible after the Goods
declaration is registered.
3.31. StandardFor the purpose of checking the Goods
declaration, the Customs shall take only such action as
they deem essential to ensu re compliance with Customs
law.
Special procedures fo r authorized persons
3.32. Transitional Standard
For authorized persons who meet criteria
specified by the Customs, including having anappropriate record of compliance with Customsrequirements and a satisfactory system for managing
their commercial records, the Customs shall provide for :
- release of the goods on the provision of the
minimum information necessary to identify
the goods and permit the subsequent
completion of the final Goods declaration;
- clearance of the goods at the declarant's
premises or another place authorized by the
Customs;
- and, in addition, to the extent possible, other
special procedures such as :
- allowing a single Goods declaration for all
imports or exports in a given period wheregoods are imported or exported frequently by
the same person;
- use of the authorized persons’ commercial
records to self-assess their duty and tax
liability and, where appropriate, to ensure
compliance with other Customsrequirements;
- allowing the lodgement of the Goods
declaration by means of an entry in therecords of the authorized person to besupported subsequently by a supplementary
Goods declaration.
Examination of the goods
(a) Time required for examination of goods
3.33. Standard
When the Customs decide that goods declared
shall be examined, this examination shall take place assoon as possible after the Goods declaration has beenregistered.G/C/W/80/Rev.1
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3.34. Standard
When scheduling examinations, priority shall be
given to the examination of live animals and perishablegoods and to other goods which the Customs accept areurgently required.
3.35. Transitional Standard
If the goods must be inspected by other
competent authorities and the Customs also schedules anexamination, the Customs shall ensure that theinspections are co-ordinated and, if possible, carried out
at the same time.
(b) Presence of the declarant at examination of goods
3.36. Standard
The Customs shall consider requests by the
declarant to be present or to be represented at the
examination of the goods.  Such requests shall be grantedunless exceptional circumstances exist.
3.37. Standard
If the Customs deem it useful, they shall
require the declarant to be present or to be represented at
the examination of the goods to give them any assistancenecessary to facilitate the examination.
(c) Sampling by the Customs
3.38. Standard
Samples shall be taken only where deemed
necessary by the Customs to establish the tariff
description and/or value of goods declared or to ensurethe application of other provisions of national legislation.Samples drawn shall be as small as possible.
Errors
3.39. Standard
The Customs shall not impose substantial
penalties for errors where they are satisfied that sucherrors are inadvertent and that there has been nofraudulent intent or gross negligence.  Where they
consider it necessary to discourage a repetition of such
errors, a penalty may be imposed but shall be no greaterthan is necessary for this purpose.Release of goods
3.40. Standard
Goods declared shall be released as soon as the
Customs have examined them or decided not to examinethem, provided that :
- no offence has been found;
- the import or export licence or any other
documents required have been acquired;
- all permits relating to the procedure concerned
have been acquired; and
- any duties and taxes have been paid or that
appropriate action has been taken to ensure
their collection.
3.41. Standard
If the Customs are satisfied that the declarant will
subsequently accomplish all th e formalities in respect of
clearance they shall release the goods, provided that thedeclarant produces a commercial or official documentgiving the main particulars of the consignment concerned
and acceptable to the Customs, and that security, where
required, has been furnished to ensure collection of anyapplicable duties and taxes.
3.42. Standard
When the Customs decide that they require
laboratory analysis of samples, detailed technical
documents or expert advice, they shall release the goodsbefore the results of such examination are known,provided that any security required has been furnished
and provided they are satisfied that the goods are not
subject to prohibitions or restrictions.
3.43. Standard
When an offence has been detected, the Customs
shall not wait for the completion of administrative orlegal action before they release the goods, provided that
the goods are not liable to confiscation or forfeiture or to
be needed as evidence at some later stage and that thedeclarant pays the duties and taxes and furnishes securityto ensure collection of any additional duties and taxes
and of any penalties which may be imposed.
Abandonment or destruction of goods
3.44. Standard
When goods have not yet been released for home
use or when they have been placed under anotherG/C/W/80/Rev.1
Page 56
Customs procedure, and provided that no offence has
been detected, the person concerned shall not be requiredto pay the duties and taxes or shall be entitled to
repayment thereof :
- when, at his request, such goods are
abandoned to the Revenue or destroyed or
rendered commercially valueless under
Customs control, as the Customs may decide.Any costs involved shall be borne by theperson concerned;
- when such goods are destroyed or
irrecoverably lost by accident or forcemajeure, provided that such destruction or
loss is duly established to the satisfaction of
the Customs;
- on shortages due to the nature of the goods
when such shortages are duly established to
the satisfaction of the Customs.
Any waste or scrap remaining after destruction
shall be liable, if taken into home use or exported, to the
duties and taxes that would be applicable to such waste
or scrap imported or exported in that state.
3.45. Transitional Standard
When the Customs sell goods which have not
been declared within the time allowed or could not be
released although no offence has been discovered, the
proceeds of the sale, after deduction of any duties andtaxes and all other charges and expenses incurred, shallbe made over to those persons entitled to receive them
or, when this is not possible, held at their disposal for a
specified period.G/C/W/80/Rev.1
Page 57
CHAPTER 4
DUTIES AND TAXES
A. ASSESSMENT, COLLECTION AND PAYMENT
OF DUTIES AND TAXES
4.1. Standard
National legislation shall define the
circumstances when liability to duties and taxes is
incurred.
4.2. Standard
The time period within which the applicable
duties and taxes are assessed shall be stipulated innational legislation.  The assessment shall follow as soonas possible after the Goods declaration is lodged or the
liability is otherwise incurred.
4.3. Standard
The factors on which the assessment of duties
and taxes is based and the conditions under which theyare determined shall be specified in national legislation.
4.4. Standard
The rates of duties and taxes shall be set out in
official publications.
4.5. Standard
National legislation shall specify the point in
time to be taken into consideration for the purpose of
determining the rates of duties and taxes.
4.6. Standard
National legislation shall specify the methods
that may be used to pay the duties and taxes.
4.7. Standard
National legislation shall specify the person(s)
responsible for the payment of duties and taxes.
4.8. Standard
National legislation shall determine the due
date and the place where payment is to bemade.4.9. Standard
When national legislation specifies that the due
date may be after the release of the goods, thatdate shall be at least ten days after the release.No interest shall be charged for the period
between the date of release and the due date.
4.10. Standard
National legislation shall specify the period
within which the Customs may take legal action tocollect duties and taxes not paid by the due date.
4.11. Standard
National legislation shall determine the rate of
interest chargeable on amounts of duties and taxes thathave not been paid by the due date and the conditions of
application of such interest.
4.12. Standard
When the duties and taxes have been paid, a
receipt constituting proof of payment shall be issued tothe payer, unless there is other evidence constituting
proof of payment.
4.13. Transitional Standard
National legislation shall specify a minimum
value and/or a minimum amount of duties and taxesbelow which no duties and taxes will be collected.
4.14. Standard
If the Customs find that errors in the Goods
declaration or in the assessment of the duties and taxeswill cause or have caused the collection or recovery of anamount of duties and taxes less than that legally
chargeable, they shall correct the errors and collect the
amount underpaid.  However, if the amount involved isless than the minimum amount specified in nationallegislation, the Customs shall not collect or recover that
amount.
B. DEFERRED PAYMENT OF DUTIES AND
TAXES
4.15. Standard
Where national legislation provides for the
deferred payment of duties and taxes, it shall specify the
conditions under which such facility is allowed.G/C/W/80/Rev.1
Page 58
4.16. Standard
Deferred payment shall be allowed without
interest charges to the extent possible.
4.17. Standard
The period for deferred payment of duties and
taxes shall be at least fourteen days.
C. REPAYMENT  OF DUTIES AND TAXES
4.18. Standard
Repayment shall be granted where it is
established that duties and taxes have been overcharged
as a result of an error in their assessment.
4.19. Standard
Repayment shall be granted in respect of
imported or exported goods which are found to havebeen defective or otherwise not in accordance with the
agreed specifications at the time of importation or
exportation and are returned either to the supplier or toanother person designated by the supplier, subject to thefollowing conditions :
- the goods have not been worked, repaired or
used in the country of importation, and are re-exported within a reasonable time;
- the goods have not been worked, repaired or
used in the country to which they wereexported, and are re-imported within a
reasonable time.
(a) Use of the goods shall,
however, not hinder the repayment if
such use was indispensable to
discover the defects or othercircumstances which caused the re-exportation or re-importation of the
goods.
As an alternative to re-exportation or re-
importation, the goods may be abandoned to the Revenue
or destroyed or rendered commercially valueless under
Customs control, as the Customs may decide.  Suchabandonment or destruction shall not entail any cost tothe Revenue.
4.20. Transitional Standard(b) Where permission is given
by the Customs for goods originallydeclared for a Customs procedure
with payment of duties and taxes to
be placed under another Customsprocedure, repayment shall be madeof any duties and taxes charged in
excess of the amount due under the
new procedure.
4.21. Standard
(c) Decisions on claims for
repayment shall be reached, and
notified in writing to the persons
concerned, without undue delay, andrepayment of amounts overchargedshall be made as soon as possibleafter the verification of claims.
4.22. Standard
(d) Where it is established by
the Customs that the overcharge is aresult of an error on the part of theCustoms in assessing the duties and
taxes, repayment shall be made as a
matter of priority.
4.23. Standard
(e) Where time limits are fixed
beyond which claims for repayment
will not be accepted, such limits shallbe of sufficient duration to take
account of the differing
circumstances pertaining to each typeof case in which repayment may begranted.
4.24. Standard
(f) Repayment shall not be
granted if the amount involved is lessthan the minimum amount specifiedin national legislation.G/C/W/80/Rev.1
Page 59
CHAPTER 5
SECURITY
5.1. Standard
National legislation shall enumerate the cases
in which security is required and shall specify the formsin which security is to be provided.
5.2. Standard
The Customs shall determine the amount of
security.
5.3. Standard
Any person required to provide security shall
be allowed to choose any form of security provided thatit is acceptable to the Customs.
5.4. Standard
Where national legislation provides, the
Customs shall not require security  when they are
satisfied that an obligation to the Customs will befulfilled.
5.5. Standard
When security is required to ensure that the
obligations arising from a Customs procedure will be
fulfilled, the Customs shall accept a general security, inparticular from declarants who regularly declare goods atdifferent offices in the Customs territory .
5.6. Standard
Where security is required, the
amount of security to be provided shall beas low as possible and, in respect of thepayment of duties and taxes, shall not
exceed the amount potentially chargeable.
5.7. Standard
Where security has been
furnished, it shall be discharged as soon aspossible after the Customs are satisfied thatthe obligations under which the security
was required have been duly fulfilled.G/C/W/80/Rev.1
Page 60
CHAPTER 6
CUSTOMS CONTROL
6.1. Standard
All goods, including means of transport, which
enter or leave the Customs territory, regardless ofwhether they are liable to duties and taxes, shall besubject to Customs control.
6.2. Standard
Customs control shall be limited to that necessary
to ensure compliance with the Customs law.
6.3. Standard
In the application of Customs control, the
Customs shall use risk management.
6.4. Standard
The Customs shall use risk analysis to determine
which persons and which goods, including means oftransport, should be examined and the extent of the
examination.
6.5. Standard
The Customs shall adopt a compliance
measurement strategy to support risk management.
6.6. Standard
Customs control systems shall include audit-
based controls.
6.7. Standard
The Customs shall seek to co-operate with
other Customs administrations and seek to concludemutual administrative assistance agreements to enhanceCustoms control.
6.8. Standard
The Customs shall seek to co-operate with the
trade and seek to conclude Memoranda of Understandingto enhance Customs control.
6.9. Transitional StandardThe Customs shall use information technology
and electronic commerce to the greatest possible extentto enhance Customs control.
6.10. Standard
The Customs shall evaluate traders’ commercial
systems where those systems have an impact on Customsoperations to ensure compliance with Customsrequirements.
CHAPTER 7
APPLICATION OF INFORMATION
TECHNOLOGY
7.1. Standard
The Customs shall apply
information technology to support Customsoperations, where it is cost-effective and
efficient for the Customs and for the trade.
The Customs shall specify the conditions forits application.
7.2. Standard
When introducing computer
applications, the Customs shall use relevant
internationally accepted standards.
7.3. Standard
The introduction of information
technology shall be carried out in
consultation with all relevant parties directly
affected, to the greatest extent possible.
7.4. Standard
New or revised national legislation shall provide
for :
- electronic commerce methods as an alternative to
paper-based documentary requirements;
- electronic as well as paper-based authentication
methods;
- the right of the Customs to retain information for
their own use and, as appropriate, to exchange
such information with other CustomsG/C/W/80/Rev.1
Page 61
administrations and all other legally approved
parties by means of electronic commercetechniques.
CHAPTER 8
RELATIONSHIP BETWEEN THE CUSTOMS
AND THIRD PARTIES
8.1. Standard
Persons concerned shall have the choice of
transacting business with the Customs either directly or
by designating a third party to act on their behalf.
8.2. Standard
1. National legislation shall set out the
conditions under which a person may act for and on
behalf of another person in dealing with the Customs andshall lay down the liability of third parties to the Customsfor duties and taxes and for any irregularities.
8.3. Standard
The Customs transactions where the person
concerned elects to do business on his own account shallnot be treated less favourably or be subject to morestringent requirements than those Customs transactions
which are handled for the person concerned by a third
party.
8.4. Standard
A person designated as a third party shall have
the same rights as the person who designated him in
those matters related to transacting business with the
Customs.
8.5. Standard
The Customs shall provide for third parties to
participate in their formal consultations with the trade.
8.6. Standard
The Customs shall specify the circumstances
under which they are not prepared to transact business
with a third party.
2. 8.7. Standard
The Customs shall give written notification to the
third party of a decision not to transact business.
CHAPTER 9
INFORMATION, DECISIONS AND RULINGS
SUPPLIED BY THE CUSTOMS
A. INFORMATION OF GENERAL APPLICATION
9.1. Standard
The Customs shall ensure that all relevant
information of general application pertaining to Customslaw is readily available to any interested person.
9.2. Standard
When information that has been made available
must be amended due to changes in Customs law,administrative arrangements or requirements, theCustoms shall make the revised information readily
available sufficiently in advance of the entry into force of
the changes to enable interested persons to take accountof them, unless advance notice is precluded.
9.3. Transitional Standard
The Customs shall use information
technology to enhance the provision of information.
B. INFORMATION OF A SPECIFIC NATURE
9.4. Standard
At the request of the interested person, the
Customs  shall provide, as quickly and as  accurately  as
possible, information relating to the specific mattersraised by the interested person and pertaining to Customs
law.
9.5. Standard
The Customs  shall supply not only the
information specifically requested but also any otherpertinent information which they consider the interested
person should be made aware of.G/C/W/80/Rev.1
Page 62
9.6. Standard
When the  Customs  supply information, they shall
ensure that they do not divulge details of a private orconfidential nature affecting the Customs or third partiesunless such disclosure is required or authorized by
national legislation.
9.7. Standard
When the  Customs cannot supply information
free of charge, any charge shall  be limited to the
approximate cost of the services rendered.G/C/W/80/Rev.1
Page 63
C. DECISIONS AND RULINGS
9.8. Standard
At the written request of the person concerned,
the Customs shall notify thei r decision in writing within
a period specified in national legislation.  Where thedecision is adverse to the person concerned, the reasonsshall be given and the right of appeal advised.
9.9. Standard
The Customs shall issue binding rulings at
the request of the interested person, provided that theCustoms have all the information they deemnecessary.
CHAPTER 10
APPEALS IN CUSTOMS MATTERS
A. RIGHT OF APPEAL
10.1. Standard
National legislation shall provide for a
right of appeal in Customs matters.
10.2. Standard
Any person who is directly affected by a
decision or omission of the Customs shall have aright of appeal.
10.3. Standard
The person directly affected by a decision
or omission of the Customs shall be given, after
having made a request to the Customs, the reasonsfor such decision or omission within a periodspecified in national legislation.  This may or maynot result in an appeal.
10.4. Standard
National legislation shall provide for the
right of an initial appeal to the Customs.10.5. Standard
Where an appeal to the  Customs is dismissed, the
appellant shall have the right of a further appeal to an
authority independent of the Customs administration.
10.6. Standard
(a) In the final instance, the
appellant shall have the right of
appeal to a judicial authority.
B. FORM AND GROUNDS OF APPEAL
10.7. Standard
An appeal shall be lodged in writing and
shall state the grounds on which it is being made.
10.8. Standard
A time limit shall be fixed for the
lodgement of an appeal against a decision of the
Customs and it shall be such as to allow the appellant
sufficient time to study the contested decision and toprepare an appeal.
10.9. Standard
Where an appeal is to the Customs they
shall not, as a matter of course, require that any
supporting evidence be lodged together with the
appeal but shall, in appropriate circumstances, allowa reasonable time for the lodgement of suchevidence.
C. CONSIDERATION OF APPEAL
10.10. Standard
The Customs shall give its ruling upon an appeal
and written notice thereof to the appellant as soon aspossible.
10.11. Standard
Where an appeal to the Customs is
dismissed, the Customs shall set out the reasons
therefor in writing and shall advise the appellant ofhis right to lodge any further appeal with anG/C/W/80/Rev.1
Page 64
administrative or independent authority and of any
time limit for the lodgement of such appeal.
10.12. Standard
Where an appeal is allowed, the Customs shall
put their decision or the ruling of the independent or
judicial authority into effect as soon as possible, exceptin cases where the Customs appeal against the ruling.G/C/W/80/Rev.1
Page 65
ANNEX IV: INDEX OF SPECIFIC ANNEXES OF THE REVISED KYOTO
CONVENTION
Annex A Arrival of goods in a Customs territory
Chapter 1 Formalities prior to the lodgement of the Goods declaration
Chapter 2 Temporary storage of goods
Annex B Importation
Chapter 1 Clearance for home use
Chapter 2 Re-importation in the same state
Chapter 3 Relief from import duties and taxes
Annex C Exportation
Chapter 1 Outright exportation
Annex D Customs warehouses and free zones
Chapter 1 Customs warehouses
Chapter 2 Free zones
Annex E Transit
Chapter 1 Customs transit
Chapter 2 TranshipmentChapter 3 Carriage of goods coastwise
Annex F Processing
Chapter 1 Inward processing
Chapter 2 Outward processingChapter 3 Drawback
Chapter 4 Processing of goods for home use
Annex G Temporary admission
Chapter 1 Temporary admission
Annex H Offences
Chapter 1 Customs offences
Annex J Special procedures
Chapter 1 Travellers
Chapter 2 Postal trafficChapter 3 Means of transport for commercial use
Chapter 4 Stores
Chapter 5 Relief consignments
Annex K Origin
Chapter 1 Rules of origin
Chapter 2 Documentary evidence of origin
Chapter 3 Control of documentary evidence of originG/C/W/80/Rev.1
Page 66
ANNEX V: THE ANNEXES OF THE WCO ISTANBUL CONVENTION
Annex A.  concerning temporary admis sion papers (ATA carnets and CPD carnets)
This Annex deals with the international customs documents, Carnet de Passage en Douane  (CPD) for
the temporary importation of motor vehicles and traile rs and the ATA carnet for the temporary importation of
other goods.  The two temporary admission carnets have to be accepted by Contracting Parties to the Istanbul
Convention
- in lieu of national customs documents to describe  the goods declared for temporary admission; and
- as due security for the payment of import dutie s and taxes and, to the extent laid down in the
Convention, any other sums payable in case of failure to re-export the goods in due course.
Annex B.1.  concerning goods for display or use at  exhibitions, fairs, meetings or similar events
Annex B.1. deals with the tempor ary admission of an extremely wi de range of goods.  What is
common to them is that they are for display or use at  events of an economic or other nature.  The Annex
covers two different customs procedures, tempor ary admission subject to re-exportation and outright
importation free of import duties and taxes for certai n, clearly defined, goods. since the latter are either
distributed free of charge to the visiting public or consum ed, destroyed or used up at the event, the requirement
of re-exportation must be waived.
The Annex provides for temporary admission to g oods intended for display or demonstration at an
event; goods intended for use in connection with the display of foreign products at an event; equipment
including interpretation equipment, sound and image recording apparatus and films of an educational,
scientific or cultural character.  The Annex provides for outright importation free of import duties and taxes to
small samples; goods imported solely for demonstration or for the purpose of demonstrating the operation of aforeign machine or apparatus; products of low value us ed up in constructing, furnishing, or decorating the
temporary stand of foreign exhibitors at an event; pr inted matter, catalogues, trade notices, etc. which are
demonstrably publicity material for the foreign goods di splayed at an event; files, records, forms and other
documents which are imported for use as such at, or in  connection with, international meetings, conferences or
congresses.
Annex B.2.   concerning professional equipment
This Annex deals with the temporary admission of any equipment necessary for the exercise of the
calling, trade or profession of a person visiting the terr itory of another country to perform a specified task.
The range of such equipment is comprehensibly wi de.  The Annex provides for temporary admission to
professional equipment and component parts im ported for repair of professional equipment.
Annex B.3. concerning containers, pal lets, packings, samples and other goods imported in connection with a
commercial operation
This Annex covers goods which are imported tempor arily in connection with a commercial operation
but whose importation does not in itself constitute a comm ercial operation.  This means that the goods are not
themselves the object of a sale or a purchase.  It provides for temporary admission to packings, containers,
component parts intended for the repair of contai ners granted temporary admission, pallets, samples,
advertising films, and any other goods imported for any of the purposes listed in the exhaustive list appended
to Annex B.3.
Annex B.4.  concerning goods imported in connection with a manufacturing operationG/C/W/80/Rev.1
Page 67
This Annex covers goods which are used in the manufacturing process but not goods which are to be
processed, such as raw materials.  It provides for temporary admission to articles on the basis of which goods
are produced such as matrices, moulds, models and si milar articles; articles by means of which goods are
produced such as measuring, controlling and checking inst ruments as well as special tools and instruments for
use during a manufacturing process.
Annex B.5.  concerning goods imported for educ ational, scientific or cultural purposes
This Annex is devoted to promoting scientific re search and educational or vocational training.  It
provides for temporary admission to an extremely wide range of goods:
(a) goods imported exclusively for educationa l, scientific or cultural purposes;
(b) spare parts for scientific equipment and pedagogic material which has been granted temporary
admission under (a) above, and tools specially designed for the maintenance checking,
gauging or repair of such equipment.
Annex B.6.  concerning travellers' personal effects and goods imported for sports purposes
This Annex deals with temporary admission facilitie s for two categories of goods which are closely
related but which so far have been treated differently at international level:
(a) all articles, new or used, which a traveller may reasonably require for his or her personal use
during the journey, taking into account all the circumstances of the journey, but excluding any
goods imported for commercial purposes;
(b) sports requisites and other articles for use by tr avellers in sports contests or demonstrations or
for training in the territory of temporary admission.
Travellers as defined in this Annex include tourists, athletes, business travellers, delegates to meeting
of international organizations, students, etc.
Annex B.7.  concerning tourist publicity material
This Annex contributes to promoting international tourism by facilitating the circulation of tourist
publicity documents and other material aimed at encourag ing the public to visit a foreign country.  The Annex
covers two different customs procedures.  Temporar y admission subject to re-exportation for tourist publicity
material and outright importation free of import duties a nd taxes for certain, clearly defined publicity material.
This latter material will not be re-exported, either because  it is for free distribution or because to require its re-
exportation would serve no useful purpose.
Annex B.8. concerning goods imported as frontier traffic
This Annex facilitates the conditions of life of the people who live in a frontier zone of a country and
who, for various reasons, have to visit the frontier zone in the neighbouring country.  It provides for temporary
admission to goods carried by frontier zone inhabita nts in the performance of their profession or trade;
personal or household effects of frontier zone inhabi tants imported by them for repair,  manufacture or
processing; equipment intended for working on land locat ed within the frontier zone of the territory of
temporary admission; equipment owned by an official  body, imported in connection with a relief operation
(fire, etc).G/C/W/80/Rev.1
Page 68
Annex B.9. concerning goods impor ted for humanitarian purposes
This Annex contributes to the efforts made in th e interest of humanity by facilitating the importation
of urgently needed medical, surgical and laboratory e quipment and of relief consignments forwarded as aid to
those affected by national disasters and similar catastrophes.  Relief consignments include all goods, such as
vehicles and other means of transport, blankets, tents,  prefabricated houses or other goods of prime necessity.
However, the temporary importation of  vehicles and other means of transport transporting relief consignments
into the country affected, are covered in Annex C.
Annex C concerning means of transport
This Annex contributes to the international movement of goods and persons by providing for
temporary admission facilities for the means of transport used  for their carriage.  It covers any water, air, road
or rail means of transport which are used fo r commercial, industrial or private purposes.
Annex D concerning animals
This Annex was prepared in recognition of the ma ny and diversified functions animals are called upon
to perform in the modern society.  It provides for temporary admission to live animals of any species.  The
exhaustive list appended to the Annex lists the purposes for which animals may be temporarily imported.
Annex E concerning goods imported with par tial relief from import duties and taxes
This Annex constitutes an exception to the main  rule under the Istanbul Convention according to
which temporary ad-mission shall be granted with a tota l relief from import duties and taxes.  It covers all
goods which are imported only temporarily but which do not fulfil the conditions necessary for granting a total
relief from import duties and taxes.  Since temporary admission under this Annex always entails the payment
of at least a part of the import duties and taxes applicable, the customs document and security should besimilar to those normally required in connection with cl earance for home use.  Thus there is no obligation to
accept temporary admission papers (ATA and CPD carnets).G/C/W/80/Rev.1
Page 69
ANNEX VI: THE ANNEXES OF THE WCO NAIROBI CONVENTION
Annex I: Assistance by a customs ad ministration on its own initiative
Annex II: Assistance, on request, in the assessment of import taxes or export duties and taxesAnnex III: Assistance, on request, relating to controls
Annex IV: Assistance, on request, relating to surveillance
Annex V: Enquiries and notifications, on request , on behalf of another Contracting Party
Annex VI: Appearance by customs officials before a court or tribunal abroad
Annex VII: Presence of customs officials of one Contra cting party in the territory of another Contracting
Party
Annex VIII: Participation in investigations abroadAnnex IX: Pooling of information
Annex X: Assistance in action against the smuggling of narcotic drugs and psychotropic substances
Annex XI: Assistance in action against the smuggling of works of art, antiques and other cultural
propertyG/C/W/80/Rev.1
Page 70
ANNEX VII: OTHER WCO CONVENTIONS
The Conventions and Recommendations presented he re were designed to solve certain specific
customs problems.  A number of these earlier instruments are referred to by certain provisions of the Annexes
to the Kyoto Convention.  These provisions also urge  Contracting Parties to the Kyoto Convention to accede
to the other earlier Conventions.
1. Customs Convention on the tem porary importation of packings
This Convention meets a wish frequently expressed by representatives of international trade for
the extension of temporary duty free, important pr ocedures to packings.  The Contracting Parties
undertake to grant temporary admission to packings,  subject to the conditions specified in theConvention, and to accept an undertaking to re-export th e packings in lieu of security wherever the
customs authorities deem this possible.  This Conven tion will be terminated and replaced by Annex B.3.
of the Istanbul Convention
2. Customs Convention on the temporary importation of prof essional equipment :
This Convention is designed to facilitate the international exchange of specialized skills and
techniques by the introduction of general rules on the temporary duty-free im portation of professional
equipment.  It has three Annexes, one relating to equipment for the pressor for sound and television
broadcasting, one to cinematographic equipment and the third to other professional equipment.  The
Convention will be terminated and replaced by Annex B.2. of the Istanbul Convention
3. Customs Convention concerning customs facilities fo r the importation of goods for display or
use at exhibitions, fairs, meetings or similar events
The purpose of this Convention is to facilitate the display of goods at exhibitions, fairs,
meetings or similar events of a commercial, technical, religious, educational, scientific, cultural or
charitable nature.  It deals, in particular, with  the temporary admission of goods and equipment for
display or use at an event, the waiving of impor t duties in respect of certain goods (small samples,
printed matter, catalogues, etc.), and the simplif ication of formalities on importation and re-exportation.
This Convention will be terminated and replaced by Annex B.1. of the Istanbul Convention
4. Customs Convention concerning we lfare material for seafarers
This Convention was drawn up by the Council on th e initiative of and in consultation with the
International Labour Organization.  Its aim is to pr omote the welfare of seafarers on ships engaged in
international maritime traffic.  Contracting Parties undertake to grant facilities in respect of welfare
material for use on board foreign ships and, unless a re servation is entered in this respect, to welfare
material for use in welfare establishments ashore.  This Convention will be terminated and replaced by
Annex B.5. of the Istanbul Convention
5. Customs Convention on the temporary importation of scientific equipment
This Convention helps to materialize the principl e of the "free flow of ideas" which has been
advocated and promoted by UNESCO for more than twenty years.  It removes certain difficulties
encountered in the implementation of the 1950 Flor ence Agreement and supplements, with regard to
scientific equipment the professional equipment C onvention and the fairs and exhibitions Convention
which were also drawn up by the Council in co- operation with UNESCO.  The Contracting Parties
undertake to grant temporary admission, free of duties a nd taxes, to instruments, apparatus, machines orG/C/W/80/Rev.1
Page 71
accessories therefor which are to be used for purposes  of scientific research or education by "approved
institutions" and to reduce the attendant customs fo rmalities.  This Convention will be terminated and
replaced by Annex B.5. of the Istanbul Convention
6. Customs Convention on temporar y importation of pedagogic material
This Convention is designed primarily to supplem ent, in the field of educational material, the
Scientific Equipment Convention.  It rounds off the work done by the WCO, in co-operation with
UNESCO, in connection with the temporary importation of educational, scientific and cultural material.
Under the Convention the C ontracting Parties undertake to grant and facilitate the temporary admission,
free of import duties and taxes, of pedagogic mate rial which complies with the prescribed conditions
(and with certain optional conditions which may be imposed by each Contracting Party).  A non-
limitative list of pedagogic material is annexed to a nd forms an integral part of the Convention.  This
Convention will be terminated and replaced by Annex B.5. of the Istanbul Convention
7. Customs Convention on the ATA carnet or th e temporary admission of goods (ATA Convention)
On 1 March 1956 the Council adopted the Cust oms Convention regarding ECS carnets for
commercial samples, which was designed to facilita te the temporary importation of commercial samples
duty-free.  In view of the success of the ECS carnet, in 1961 the Permanent Technical Committee
established the Customs Convention on the ATA car net for the temporary admission of goods.  This
carnet can be used not only for commercial samp les but also for goods temporarily imported under
-- other international Conventions concerning te mporary admission to which the State concerned
is a Contracting Party (e.g. Conventions on professional equipment, on exhibitions and
fairs, etc.);
-- national regulations on temporary admission.
The ATA Convention seeks to eliminate the two main difficulties encountered whenever goods
are temporarily imported, namely the need to make out a customs declaration on a national form and the
necessity of furnishing security for the payment of the customs duties and other taxes chargeable in case
of failure to re-export.  This double aim is achieved by the ATA carnet which is an international customs
document issued and guaranteed by associations  approved by the customs and affiliated to an
international chain (e.g. Chambers of Commerce).  Some years ago, it was decided that the ATA carnet
should replace the ECS carnet, in view of the latter's limited scope.  This replacement has continued
progressively and now only one international docum ent is in use for temporary duty-free admission
operations.  The ATA Convention will be terminated and replaced by Annex A of the Istanbul
Convention
8. Customs Convention on the internati onal transit of goods (ITI Convention)  (not in force)
This Convention was prepared to deal with emerging patterns in international traffic,
particularly the wide spread use of intermodal freig ht containers. The basic aim of the Convention is to
provide the customs with the possibility of carrying out  their essential controls without creating transport
delays,  thus permitting transport operators to enjo y fully the advantages of the through-transport
concept.
9. Customs Convention on containers
The Convention has two main objectives.  Firs t, it provides for temporary importation of
containers, free of import duties and taxes, and free of  import prohibitions and restrictions if re-exported
within three months from the date of importation;  such temporary admission of containers shall be
granted without the production of customs documen ts being required on their importation and re-
exportation and without the furnishing of  a form of security (Articles 3-11).G/C/W/80/Rev.1
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Secondly, the convention provides for approval of Containers for transport under customs seal.
Containers approved by a Contracting Party as comply ing with the relevant provisions laid down in the
Convention shall be accepted by other Contracting Pa rties for any system of international carriage
involving such sealing.  The Convention also lays  down standards for the construction of containers.G/C/W/80/Rev.1
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ANNEX VIII: WCO RECOMMENDATIONS
1. Recommendations concerning co- operation between administrations
a. Recommendation concerning the treatment at an international level of customs
technical questions, (30 November 1956)
b. Recommendation on the communication of info rmation concerning the customs status
of goods, (22 May 1963)
c. Recommendation to facilitate the temporar y exportation of goods sent from one country
of manufacture, processing or re pair in another, (3 December 1963)
d. Recommendation concerning the techni cal co-operation in customs matters,
(18 June 1981)
2. Recommendations concerning duty re liefs, repayments and remission
a. Recommendation concerning the repayment or remission of duties on goods refused by
the importer as not conforming to contract, (28 November 1957)
b. Recommendation concerning tax-free shops, (16 June 1960)
c. Recommendation concerning the repayment or remission of import duties and taxes on
goods destroyed or lost, (5 December 1962)
d. Recommendation concerning the free admi ssion of removable articles imported on
transfer of residence, (5 December 1962)
e. Recommendation concerning the refund of import duties and taxes on shortages,
(5 December 1962)
f. Recommendation concerning reimported goods, (6 June 1967)g. Recommendation concerning the free admissi on of gift consignments (11 June 1968)
h. Recommendation to expedite the forwarding  of relief consignments in the event of
disasters (8 June 1970)
i. Recommendation on the customs treatment of products imported for testing,
(5 June 1972) 
3. Recommendations concerning tr ansport, travel and tourism
a. Recommendation concerning the use of te mporary importation papers in respect of
radio and television vans, (1 December 1955)
b. Recommendation on the temporary admission of radio and television vans, (9 June
1977)
c. Recommendation on the temporary admission of radio and television production and
broadcasting equipment, (13 June 1985)G/C/W/80/Rev.1
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d. Recommendation concerning the customs treatme nt of provisions carried in restaurant
cars, Pullman cars, sleeping cars and similar cars on international express trains,
(16 June 1960)
e. Recommendation concerning the customs treat ment of registered baggage carried by
rail, (5 June 1962, amended on 21 June 1988)
f. Recommendation concerning customs sea ling systems in connection with the
international transport of goods, (11 June 1968)
g. Recommendation concerning the application of a flat rate assessment system to goods
sent in small consignments to private individuals or carried in travellers’ baggage (flatrate assessment), (11 June 1968)
h. Recommendation for a simplified customs control, based on the dual channel system,
of passengers arriving by air, (8 June 1971)
i. Recommendation for a simplified customs control, based on the dual channel system,
of passengers arriving by sea, (5 June 1972)
j. Recommendation concerning lighters carried by lash or similar-type vessels (5
June 1992)
k. Recommendation concerning measures to facilitate the application of the ITI
Convention, (18 May 1973)
l. Recommendation concerning the temporary admission of special equipment carried in
vehicles used for in connection with the transport of radio-active materials,
(9 June 1977)
m. Recommendation concerning the establishm ent of links between customs transit
systems, (16 June 1982)
n. Recommendation concerning the acceptance of ATA carnets in connection with
temporary admission, (25 June 1992)
o. Recommendation concerning the acceptance of CPD carnets in connection with
temporary admission, (25 June 1992)
4. Recommendations concerni ng information technology
a. The use of world wide web sites by Customs administrations (26 June 1999)
b. The use of the WCO data mapping guide for customs UN/EDIFACT me995c. Adherence to standards in relation to data requirements for advance passenger 
information (API) (6 July 1993)
d) The use of codes for the representation of data elements (22 May 1984)e) the transmission and authentication of customs information which is processed by
computer   (16 June 1981)G/C/W/80/Rev.1
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f) The use of the UN/EDIFACT rules for electronic data interchange
g) The use of the united nations trade data elements directory (UNTDED)h) The use of the CCC/IATA data interchange standards
5. Other recommendations
a. Recommendation on samples to be regarded as being of negligible value within the
meaning of the international convention to facilitate the importation of commercial
samples and advertising materials, (30 November 1956)
b. Recommendation concerning the adoption of a layout key for the goods declaration
(outwards), (1 June 1965)
c. Recommendation concerning the right of appeal in customs matters, (6 June 1967)
d. Recommendation concerning the adoption of a standard form of certificate of origin,
(16 January 1973)
e. Recommendation concerning customs requirements regarding commercial invoices,
(16 May 1979)
f. Recommendation concerning the sing le goods declaration, (26 June 1990)
g. Recommendation concerning the use of the glo ssary of international customs terms, (6.
July 1993)G/C/W/80/Rev.1
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ANNEX IX: OVERVIEW OF WCO INTERNATIONAL CUSTOMS NORMS
1. Right of Appeal in customs matters
2. Clearance of goods for home use. The declarant and the declaration of goods
3. Information concerning the tariff classifica tion of goods, supplied by and binding on the
customs administration (tariff information)
4. Payment or remission of import duties and taxes on goods destroyed or lost5. Repayment or remission of import duties and taxes on goods believed to be contained in a
consignment which, after clearance, is found not to have contained those goods at the time of
importation (Repayment of import duties and taxes on shortages)
6. Free admission of removable articles imported by a natural person on transfer of residence from
one country to another (Free admission of removable articles)
7. Temporary admission procedure
8. Customs warehousing procedure9. Customs transit of imported goods10. Drawback11. Facilities granted in respect of re-imported goods, other than goods under the temporary
exportation procedure (Re-imported goods)G/C/W/80/Rev.1
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ANNEX X: DETAILED OVERVIEW OF THE IMO CONVENTION ON
FACILITATION OF INTERNATIONAL MARITIME TRAFFIC (FAL)AND ITS AMENDMENTS
The FAL Convention contains measures to facilitate the arrival, stay and departure of ships of
coastal and non-coastal Contracting States by simplifying and reducing to a minimum the formalities,
documentary requirements and procedures.  These include all documents pertaining to the ship and its
passengers, baggage, crew, cargo and mail, which are required by Customs, Immigration, Health, and
other public authorities.
The Annex to the Convention contains provisions relating to the arrival, stay and departure of
ships and persons, health and quarantine, and sanitary measures for plants and animals.  These
provisions are divided into Standards and Recommended Practices, and the documents, which should
be required by governments, are listed.  Countrie s that cannot comply with standards should inform
the IMO of the differences between its own practices and the standards in question.  One of the mostimportant standards of the Convention is Standard 2.1, which lists 8 documents which public
authorities can demand of a ship and recommends the maximum information and number of copies
which should be required.  IMO has developed six of these documents.  These are IMO general
declaration, cargo declaration, ship’s stores declaration, crew’s effects declaration, crew list,
passenger list.  Two more forms have been developed recently.  These are the Multimodal Dangerous
Goods Form, which may be used as a combined transport document and container packing certificate
for the multinational transport of dangerous goods; and Dangerous Goods Manifest.
The Convention has been amended several times.  Since 1973, the ‘tacit acceptance’
procedure is in force, allowing for an easier update of the Convention.  The 1986 amendments were
designed primarily to reduce ‘red tape’ and in particular to enable automatic data processing
techniques to be used in shipping documentation.  The 1987 amendments simplify the documentationrequired by ships including crew lists, and also fa cilitate the movement of ships engaged in disaster
relief work and similar activities.  The 1990 amendments revise several recommended practices and
add others dealing with drug trafficking and the problems of the disabled and elderly.  They
encourage the establishment of national facilitation Committees and also cover stowaways and traffic
flow arrangements.  The 1992 amendments concern the Annex to the Convention and deal with the
following subjects: electronic data processing/electronic date interchange (EDP/EDI), private gift
packages and trade samples, consular formalities and fees, submission of pre-import information,
clearance of specialized equipment, AND falsified documents.  The 1993 amendments (to the Annex
to the Convention) deal with unmanifeste d parcels and the handling of stowaways.
The 1996 amendments have entered into force on 1 May 1997.  The amendments affect
standards and recommended practices contained in the Annex and deal with the following subjects:
the Passenger List; the establishment of national maritime transport facilitation committees; the
developments of procedures, including electronic da te interchange (EDI), to allow for the submission
of advance information to enable the use of selectivity techniques to facilitate customs clearance andthe declaration of the personal effect of cruise passenger.  New standards have been added concerning
inadmissible persons; the obligations of shipowne rs to transport persons; and co-operation between
governments and shipowners to establish the validity of passports and visas.  A new recommended
practice has been added on immigration pre-arrival clearance.
The 1999 amendments, adopted on 9 September 1999, deal with the combating of illicit drug
trafficking; arrival, stay and departure of ships, passengers, crews and cargo; and the use of electronicdata interchange (EDI) for ship clearance purposes.  The amendments are due to enter into force on 1
January 2001 under tacit acceptance.G/C/W/80/Rev.1
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Other tasks of IMO and international co-operation
In order to assure widespread implementation of its Conventions and other legal instruments,
IMO has developed a technical co-operation programme, which is designed to assist
GOVERNMENTS , which lack the technical knowledge, and resources that are needed to operate a
shipping industry successfully.  The IMO entertains consultative relationships with other UN
agencies, such as the UN/ECE/IAEA and ICAO, as well as with intergovernmental organizations such
as the WCO and the OECD.  Among non-governmental organizations, which work on
facilitation-related issues, the IMO co-operates with the IAPH, ISO, ICC, BIMCO, and IRU.G/C/W/80/Rev.1
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ANNEX XI: OVERVIEW OF UNCITRAL  WORK RELEVANT TO TRADE
FACILITATION
A. Conventions
1. International sale of goods and related transactions
Convention on the Limitation Period in the In ternational Sale of Goods (New York, 1974) .
This Convention establishes uniform rules gove rning the period of time within which legal
proceedings arising from an international sales contr act must be commenced. It has been amended by a
Protocol adopted in 1980 when the United Nations Sales Convention  (see below) was adopted. Both the
original Convention and the Convention as amende d entered into force on 1 August 1988. There are
currently 24 States parties to the Convention, of which 17 are parties to the Convention as amended.
United Nations Convention on Contracts for the International Sale of Goods (Vienna, 1980)
This Convention establishes a comprehensive c ode of legal rules governing the formation of
contracts for the international sale of goods, the ob ligations of the buyer and seller, remedies for breach
of contract and other aspects of the contract. The Convention entered into force on 1 January 1988.
There are currently 56 States parties to the Convention.
2. International transport of goods
United Nations Convention on the Carriage of Goods by Sea, ( 1978)  (the "Hamburg Rules")
This Convention establishes a uniform legal regime governing the rights and obligations of
shippers, carriers and consignees under a contract of carriage of goods by sea. It was prepared at the
request of developing countries a nd its adoption by States has been endorsed by such intergovernmental
organizations as UNCTAD, Asia n-African Legal Consultative Committee and the Organization of
American States. The Convention entered into fo rce on 1 November 1992. There are currently 26 States
party to the Convention.
United Nations Convention on the Liability of Operat ors of Transport Terminals in International Trade
This Convention sets forth uniform legal rules go verning the liability of a terminal operator for
loss of and damage to goods involved in internationa l transport while they are in a transport terminal,
and for delay by the terminal operator in deliverin g the goods. The draft Convention was adopted by a
diplomatic conference and opened for signatur e, ratification and accession on 19 April 1991. The
Convention will enter into force upon the deposit of 5 instruments of ratification, acceptance, approval
or accession. Up to now only 2 instrume nts of accession have been deposited.
3. International commercial arbitration and conciliation
Convention on the Recognition and Enforcement of  Foreign Arbitral Awards (New York, 1958)
Although the Convention was prepared by th e United Nations prior to the existence of
UNCITRAL, promotion of the Convention is an integr al part of the Commission's programme of work.
As its name indicates, it provides for the recogniti on and enforcement of arbitral awards rendered in
foreign countries. At present 121 States are party to it.G/C/W/80/Rev.1
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4.   International Payments
United Nations Convention on International Bills of Exchange and International Promissory Notes
(New York, 1988)
This Convention provides a comprehensive code of legal rules governing new international
instruments for optional use by parties to internat ional commercial transactions. It is designed to
overcome the major disparities and uncertainties that currently exist in relation to instruments used for
international payments. The Convention applies if th e parties use a particular form of a negotiable
instrument indicating that the instrument is su bject to the UNCITRAL Convention. The Convention was
adopted and opened for signature by the General Assembly at its 43rd session in December 1988. 10
ratifications or accessions are necessary for the C onvention to come into force. The Convention has
been acceded to by 2 States to date.
United Nations Convention on Independent Guarant ees and Stand-by Letters of Credit (New York,
1995)
The Convention was adopted by the General A ssembly on 11 December 1995 and is now open
for signature and ratification/accession. It is designed to facilitate the use of independent guarantees and
stand-by letters of credit, in particular where only one or the other of those instruments may be
traditionally in use. The Convention also solid ifies recognition of common basic principles and
characteristics shared by the independent guarant ee and the stand-by letter of credit. The Convention
entered into force on 1 January 2000, when 5 parties had deposited instruments of ratification,
acceptance, approval or accession.
Other instruments developed by UNCITRAL:
1. International sale of goods and related transactionsUNCITRAL Legal Guide on Inter national Countertrade Transactions
The purpose of the Legal Guide, adopted in 1992, is to assist parties negotiating international
countertrade transactions. It identifies legal issues in volved in such transactions and discusses possible
contractual solutions.
2.  International commercial arbitration and conciliationUNCITRAL Arbitration Rules (1976)
The UNCITRAL Arbitration Rules provide a comp rehensive set of procedural rules upon which
parties may agree for the conduct of arbitral proceed ings arising out of their commercial relationship.
The Rules are widely used in many contexts.  Reco mmendations to assist arbitral tribunals and other
interested bodies with regard to arbitrati ons under the UNCITRAL Arbitration Rules (1982).
UNCITRAL Conciliation Rules (1980)
When parties to a commercial dispute wish to settle their disputes amicably through
conciliation, they may agree upon this set of procedural rules to govern the conciliation proceedings.
UNCITRAL Model Law on International Commercial  Arbitration (1985). Th e UNCITRAL Model Law
is designed to assist States in reforming and modern izing their laws on arbitral procedure so as to take
into account the particular features and needs of in ternational commercial arbitration. It was adopted by
UNCITRAL in 1985 and has already been enacted into  law by a considerable number of jurisdictions
from both developed and developing countries.G/C/W/80/Rev.1
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UNCITRAL Notes on Organizing Arbitral Proceedings (1996)
The Notes are designed to assist arbitration practitioners by providing an annotated list of
matters on which the arbitral tribunal may wish to formulate decisions during the course of arbitral
proceedings. The text, which is in no way binding, may be used whether or not the arbitration is
administered by an arbitral institution.
3. International PaymentsUNCITRAL Legal Guide on Electronic Funds Transfers
The Legal Guide, which was published in 1987, id entifies the legal issues arising from the
transfer of funds by electronic m eans and discusses possible approaches  for dealing with those issues.
UNCITRAL Model Law on Inter national Credit Transfers (1992)
The Model Law, adopted in 1992, deals with opera tions beginning with an instruction by an
originator to a bank to place at the disposal of a be neficiary a specified amount of money. It covers such
matters as the obligations of a sender of the instruction and of a receiving bank, time of payment of a
receiving bank and liability of a bank to its sender or to the originator when the transfer is delayed or
other error occurs.
4. Electronic commerce
Recommendation on the Legal Valu e of Computer Records (1985)
UNCITRAL Model Law on Electronic Commerce
The Model Law, adopted in 1996, is intended to facilitate the use of modern means of
communications and storage of information, such as electronic data interchange (EDI), electronic mail
and telecopy, with or without the use of such support  as the Internet. It is based on the establishment of
functional equivalent for paper-based concepts such as "writing", "signature" and "original". Byproviding standards by which the legal value of electronic messages can be assessed, the Model Law
should play a significant role in enhancing the us e of paperless communication. In addition to general
norms, the Model Law also contains rules for electr onic commerce in specific areas, such as carriage of
goods. With a view to assisting executive branches of governments, legislative bodies and courts in
enacting and interpreting the Model Law, the Commission has produced a  Guide to Enactment of the
UNCITRAL Model Law on Electronic Commerce .  Legislation based on the UNITRAL Model Law on
Electronic Commerce has been adopted in Australi a, Bermuda, Colombia, France, Hong Kong China,
Ireland, Republic of Korea, Singapor e, Slovenia, and the Philippines.
Other products of the work  of UNCITRAL include:
Provisions on a universal unit of account a nd on adjustment of the limit of liability in
international transport conventions (1982);
Uniform Rules on Contract Clauses for an Agreed Sum Due upon Failure of Performance
(1983);
Assistance to countries c onsidering adoption of textsG/C/W/80/Rev.1
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On request, the UNCITRAL Secretariat is prepar ed to give technical assistance and advice to
States that may be considering adoption of one of  the legal texts prepared by the Commission. Such
assistance often involves review of proposed legislation.
Training in international trade law
National and regional seminars on international trade law. The Commission has undertaken to
organize national and regional seminars and briefing missions on international trade law for the purpose
of promoting knowledge about the work of the Co mmission, primarily in developing countries, with a
view to the adoption and use of its texts by those countries.
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