WTO Trade Facilitation Negotiations – Transparency

WTO Trade Facilitation Negotiations– Transparency Dakar, Senegal November 2008 SITPRO Simplifying International Trade

Issues to be covered • Transparency in border regulation • The Boksburg Group • Guiding principles for the negotiations • Thoughts on state of play SITPRO Simplifying International Trade

WTO Trade Facilitation Negotiations • GATT Article V – Transit • GATT Article VIII – Fees and formalities • GATT Article X - Transparency SITPRO Simplifying International Trade

What GATT Article X already provides for : “Prompt” publication No enforcement of measures before publication Impartial administration Administration review procedures by independent bodies Transparency SITPRO Simplifying International Trade

Members proposals : Publication and availability of information Prior publication and consultation Advance rulings Appeal procedures Other measures to enhance impartiality, non-discrimination and transparency Transparency SITPRO Simplifying International Trade

Basic publication Internet publication / official websites National enquiry points Notification to WTO Aims: Easy availability of information Improved legal stability Improved transparency in trade regulations Enhanced efficiency of obtaining necessary information Publication SITPRO Simplifying International Trade

Interval between publication and entry into force Prior consultation and commenting on new and amended rules Regular [on-going] consultation Aim: Allow traders to obtain accurate and timely information, reducing their costs and time Allow traders time to implement new measures and give notice of unintended consequences Prior publication and consultation SITPRO Simplifying International Trade

Provision of advance rulings Right of appeal Appeal mechanism in a Customs Union Aim: Improve predictability for decisions on movement of goods Facilitate compliance Clarify right of appeal in GATT Advance rulings and appeal procedures SITPRO Simplifying International Trade

Import alerts / rapid alerts Detention Test procedures Aims: Ensure ethical conduct of officers Reduced transaction costs and other negative symptoms in trading system Other measures SITPRO Simplifying International Trade

Other proposals • Special and differential treatment • Technical assistance and capacity building • Capacity assessment • Other implementation matters SITPRO Simplifying International Trade

Boksburg Group • Formed 2003 • Forum for trade and customs officials and business representatives from developing countries • Met in 9 countries including Senegal

Forum for discussing WTO trade facilitation negotiations Informal analysis of issues, proposals and implementation Outputs: Living document Website www.boksburggroup.org Guiding principles for technical assistance and capacity building Boksburg Group

“Living document” www.boksburggroup.org/papers/approach2006.pdf

Recommendations on transparency 1. Border agencies should make publicly available their laws, procedures and other rules affecting import/export, together with related information. 2. All charges should be made public in good time, and should not exceed the cost of the services rendered. 3. Border agencies that intervene in international trade should designate offices or other locations where goods can be produced for clearance or similar formalities. 4. Goods in transit should also be subject to the provisions 1, 2, and 3.

Recommendations on transparency 5. Liability to duties, taxes and similar levies, as well as the factors and conditions relating to assessment of duties and taxes, should be publicly available to determine the rates. 6. National legislation should specify the party/parties primarily responsible for the payment of duties and taxes. 7. Provision should be made to mandate the cooperation and data exchange between customs administrations covering the area of TF, for example details of export including export values. This would require the implementation of an effective cooperation process.

Recommendations on transparency 8. Data on transit consignments should be shared between appropriate customs administrations. 9. Export data should be used as the basis for the import data. 10. Provisions should be strengthened related to customs compliance.

Recommendations on appeals 1. In matters arising from the activities of border agencies, there should be a timely right of appeal to an agency independent of the border agency. On request the agency concerned should explain in a timely manner, the reasons for their action. The appellant should have the right of appeal.

Best practice recommendations 1. Border agencies should establish consultative arrangements with trade representatives. This should ensure that new legislation is practical, and compliance is increased. 2. There should be an integrated approach to border management with the establishment of a lead agency at the border coordinating and controlling all cross border transactions.

Guiding principles Commitments 1. All WTO Members should commit to the same set of measures with implementation tailored to individual countries’ circumstances. 2. WTO Members, at the time of entry into force of the agreement, should be prepared at least to bind existing levels of trade facilitation. Special and Differential Treatment 3. WTO Members should stipulate a time period within which they would be bound to implement specific commitments / measures.

Guiding principles Technical Assistance and Capacity Building 4. Commitments should from the outset be linked to technical assistance (TA) and funds for capacity building (CB) where this is necessary to enable effective implementation. Commitments should not be enforceable if adequate TACB is not provided. 5. Commitments should be contained in individual Member implementation plans, drawn up on the basis of a Member’s needs assessment and working with donors as appropriate. Continued …

Guiding principles Technical Assistance and Capacity Building (continued) 6. A simple overview of donor assistance should be maintained to enable WTO Members to identify any gaps in Members’ scheduled needs for TACB are covered and whether there is any duplication. 7. Capacity acquisition should be determined by the Member requesting TACB in partnership with its donor(s).

Guiding principles Monitoring 8. An early warning system should be established within the WTO to allow advance notice of any implementation delay. 9. A WTO Committee on Trade Facilitation should be established to provide a forum for guidance on implementation and monitoring implementation. Dispute Settlement 10. Dispute settlement should be a last resort.

WTO state of play • July Ministerial meeting • Agriculture • Non-agricultural market access (NAMA) • Services • Trade facilitation SITPRO Simplifying International Trade

www.sitpro.org.uk SITPRO Simplifying International Trade

WTO Trade Facilitation Negotiations – Transparency