1. WTO Negotiations on Trade Facilitation - Formalities Birgit Viohl, UNCTAD Trade Facilitation Section Single Window ConferenceDakar, 5-7 November 2008

2. Formalities Trade related formalities are necessary to comply with the requirements of Customs and transport procedures but also to general trade such as phytosanitary certificate, Certificate of Origin, import licences. Filling out of documents, lodging of documents, provision of x copies of commercial documents, payments etc. • Burden: • Cumbersome procedures and cumbersome formalities and paperwork • Problem: • Direct and indirect costs to trade • Create operational inefficiencies and reduce control and security along the logistics chain.

3. Multilateral framework • WTO Law contains disciplines related to certain aspects of the administration of trade related procedures – • in particular Article VIII of GATT 1994 • and also in the agreements in annex to the GATT 1994, e.g. Rules of Origin, Import Licence • But non-mandatory legal language of Article VIII GATT 1994

4. July 2004 WTO members decided to start negotiations on Trade Facilitation • Review with the aim to clarify and strengthen those aspects of the GATT 1994 agreement related to trade facilitation; Art. V, VIII, and X • Art. VIII Fees and formalities related to importation and exportation • Negotiations are on-going aspart of the Doha Round

5. In Geneva they negotiate…so what? • Business is moving ahead and provides solutions • But • Need for political will for successful implementation • one can not change neighbours’ systems and procedures • multilateral rules refer to technical standards which then become regional or int’l norms • financial resources and technical assistance

6. Elements of GATT VIII • “All fees and charges […] shall be limited in amount to the approximate cost of services rendered” • “The contracting parties recognize the need for • Reducing the number and diversity of fees & charges […] • Minimizing the incidence and complexity of import/exportformalities • Decreasing and simplifying import/export documentation requirements “

7. Negotiation Process • WTO Members propose trade facilitation measures which are • Procedures, tools, standards which are in practice or internationally developed • Clearer legal language of the Article’s provision

8. Proposals made at the WTO

9. Article VIIIProposals on fees and charges • Fees and charges: • Specific parameters for fees and charges; • Publication / Notification; • Periodic review; • Automated payment (this has not been further proposed)

10. Proposals on formalities • Reduction of import/export formalities and documentary requirements: • Periodic reviews of formalities • Use of international standards • Acceptance of Commercially Available Information and Copies • Single Window/ One-time submission • Prohibition of Consular Requirements • Disciplines on Mandatory use of Customs Brokers • Release and Clearance of Goods: • Pre-arrival clearance • Express shipments with special treatment • Risk management based on international standards • Simplified procedures for authorized traders • Post-clearance audit • Seperating Release from Clearance • Publication of Average Release and Clearance Times

11. Proposals on formalities • Reduction of import/export formalities and documentary requirements: • Periodic reviews of formalities • Use of international standards • Acceptance of Commercially Available Information and Copies • Single Window/ One-time submission • Prohibition of Consular Requirements • Disciplines on Mandatory use of Customs Brokers • Release and Clearance of Goods: • Pre-arrival clearance • Express shipments with special treatment • Risk management based on international standards • Simplified procedures for authorized traders • Post-clearance audit • Seperating Release from Clearance • Publication of Average Release and Clearance Times

12. Proposal: Single Window • SW early proposal (EC, Peru, Korea, Singapore, Japan & Mongolia etc.) • Problem of different definitions and concept of SW. • What should the WTO attempt to do? Detailed definition versus broad concept. Stipulate operational standards • Single Window as a stand alone measure to speed up the Customs release and clearance, but by moving to a SW…

13. Proposal: Single Window …other proposed disciplines are addressed as well (modular set-up: Analysis and Re-engeneering of processes, Re-definition of data and document requirements, Introduction of international standards) • Reduction/Limitation of Formalities • Use of Int’l Standards • Acceptance of Commercially Available Information and copies • SW offers also platform for information exchange on trade related legislation (Transparency Art. X) • and strengthens Border Agency cooperation and cooperation between Customs and the trading community

14. Implementation issues • Introduction of SW (mixed or electronic) is costly and lengthy. • Electronic SW a best endeavour option (to the extent possible) • Technical Assistance clause in the negotiations • Developing countries and LDC only take up commitments if they receive the required technical assistance • Negotiations are opportunity to get political support and financial resources for pursuing trade facilitation reforms, including for SW

15. Negotiations still on-going. What needs to be done? • Technical knowledge for the drafting of the rule required. • Definition of SW • Standards used for SW • Basis for regional inter-operability • Country-level: Analyse current situation. • Would current SW comply with the rule? • How long does it take for your country to be in compliance • What does it take your country to be in compliance Contact negotiating authority to participate in drafting this rule and to inform them of the existing system

16. Thank you ! Birgit.viohl@unctad.org Jan.Hoffmann@unctad.org