WORLD TRADE
ORGANIZATIONG/C/W/448
10 March 2003
(03-1362)
Council for Trade in Goods Original:  English
POSSIBLE LINKAGES BETWEEN TRADE FACILITATION PRINCIPLES,
MEASURES, POTENTIAL BENEFITS AND TRADE-RELATED TECHNICAL
ASSISTANCE AND CAPACITY-BUILDING
A Contribution from Canada
The following communication, dated 10 March 2003, has been received from the Permanent
Mission of Canada.
_______________
Canada is pleased with the discussions to da te in the Council for Trade in Goods on how to
review and, as appropriate, clarify and improve GATT Articles V, VIII and X.  We believe that these
discussions have contributed to further our common understanding of possible ways to further
expedite the movement, release and clearance of goods, including goods in transit, as recognized byMinisters at Doha
1.
Building on proposals made by Members to date and compiled in the very useful document
prepared by the Secretariat2, as well as on the subsequent contribution submitted by Australia3, the
present paper is aimed at providing an overview of how broad trade facilitation principles could be
advanced through the development of appropriate WTO commitments.
- The first column groups main trade facilitation principles  in broad categories (which are
often mentioned in either international mee tings/discussions or in literature on trade
facilitation);
- The second column elaborates on measures that address those principles and which could
be promoted by an appropriate set of WTO commitments on trade facilitation,  but in no
way is the elaboration of such measures intended to prejudge the outcome of any eventual
negotiations which may be undertaken;
- The third column lists some of the potential benefits yielded by the implementation of
corresponding trade facilitation principles and measures (as mentioned in various
international meetings/discussions);
- The fourth column provides illustrative examples of TRTA/CB possibilities, in line with the
recognition by Ministers in the Doha Declaration of “the need for enhanced technical
assistance and capacity building in the area of trade facilitation”.
                                                     
1 Paragraph 27 of the Doha Ministerial Declaration.
2 G/C/W/434, dated 15 November 2002
3 G/C/W/443, dated 5 December 2002G/C/W/448
Page 2 TRADE FACILITATION BENEFITS
Trade Facilitation
PrinciplesMeasures To Be Promoted Through Trade
Facilitation CommitmentsBenefits TRTA/CB Possibilities
Transparency
• Ready availability
of information on
laws, regulations
and administrative
policies and
procedures.
• Accessibility of
such information.• Publication of all border-related laws,
regulations, procedures and practices.
• Mechanisms/procedures to make such
information readily available (e.g.,gazette/official journal, web sites).
• Mechanisms allowing stakeholders to
comment on effective and prospective
rules and procedures.
• Easily accessible processes for
administrative and judicial review.• Increases degree of confidence in the
trading system.
• Heightens likelihood of trader
compliance.
• Improves transparency, predictability
for traders.
• Assists non-discriminatory
competition.
• Promotes closer cooperation between
authorities and trading community on
issues such as prevention of
illegitimate trade.• TA in establishing
information dissemination
systems.
• Capacity building in
establishing consultation
and administrative/judicial
review mechanisms.
Simplification
• Simplification of
border-related rules
and procedures to
achieve their
legitimate objectivesin a practicable and
efficient way.• Use of risk assessment.
• Advance rulings.
• Border agency coordination/single
window.
• Streamlined process for
authorized/trusted traders.
• Use of collateral or monetary security to
separate the payment process from the
movement/importation of goods.
• Simplified procedures for expediting
clearance of express consignments.
• Separation of admissibility reporting
requirements from revenue and statisticalreporting for quicker release of goods.• Simplifies the administration of
border-related procedures (both forthe authorities and for the trading
community).
• Reduces costs oBeneff operations.
• Improves compliance with
regulations, notably by lowering the
degree of frustration of traders.• Training programme (e.g.,
WCO) on institutionalcapacity in customs
simplification.
• Training in simpler
procedures and new customs
techniques.G/C/W/448
Page 3Trade Facilitation
PrinciplesMeasures To Be Promoted Through Trade
Facilitation CommitmentsBenefits TRTA/CB Possibilities
Non-discrimination
• Rules and
procedures relating
to trade should not
discriminate
between or among
goods and/or modesof transport.• Specify measures for transit procedures
to ensure Members retain appropriate
flexibility in choice of modes of
transport.
• Specify measures to ensure consistency
of treatment for freedom of transit of
certain goods (e.g., “sensitive” orcontrolled), so that when goods are
allowed to transit, they are only subjected
to exceptional guarantee requirements
which are proportionate and applied
uniformly.
• Negotiate and implement bilateral,
regional, or multilateral agreements on
transit transport.
• Streamline/harmonize or standardize
transit related documentation and
customs procedures.• Minimization or reduction and/or
eventual elimination of discriminatory
practices.• In conjunction with relevant
bodies, develop an
appropriate, tailor-made,
coordinated package of
TA/CB measures, designed
to help affected countries to
implement proposed
measures.
Due Process
• Access to an
unbiased
administrative
appeal process andthe ability to seek
redress in
accordance with the
legislation of
individual Members.• Establish and provide for accessibility to
independent judicial, arbitral or
administrative tribunals
• Make readily available the necessary
procedures to review and correct
administrative actions related to, e.g.,
customs matters.
• Establish disciplines to ensure that
related procedures are administered in a
neutral and non-discriminatory manner.• Increases confidence of the public and
the trading community in regulatory
bodies.
• Contributes to the further
effectiveness/efficiency of
government measures.
• Ensures protection against arbitrary
decisions of border authorities that
may not be in accord with the laws
and regulations they are responsible to
enforce or administer.
• Offers protection against omissions
by authorities that may result in
additional liability to traders forpayment of additional duties, fees or
charges.• A programme of capacity
building to strengthen and
enhance the ability of key
government institutions
involved in trade to design
and implement a regulatoryand policy framework that
provides for accessibility to
independent judicial, arbitral
or administrative tribunals
or avenues to appeal andcorrect administrative
actions.G/C/W/448
Page 4Trade Facilitation
PrinciplesMeasures To Be Promoted Through Trade
Facilitation CommitmentsBenefits TRTA/CB Possibilities
Co-operation
• Enhanced co-
operation amongst
and between
government
authorities, business
and the tradingcommunity.• Consultative/Feedback mechanisms
between government and private sector,
especially in the development of
regulations/procedures.• Benefit to governments by enabling
them to implement policies more
effectively and efficiently.
• Public and private sectors better
informed as to governmental
objectives and goals thereby creating
a climate more conducive to openchannels of communication.• TA programmes designed to
help establish appropriate
systems for consultative
feedback mechanisms
between government and
private sector.
Consistency and
Predictability
• Rules and
procedures should
be applied in a
consistent and
predictable manner.
• These should
provide clear and
precise procedural
guidance based
upon standard
policies andoperating
procedures and be
applied in a non-
discretionary and
uniform manner.• Using existing international standards
where appropriate, develop common data
sets to be requested in the process of
clearance.
• Increased compatibility and
standardization of data entry to facilitate
increased use of information andcommunication technologies.
• Advance ruling system of binding rulings
to ease accessibility to trade-related
information for the private sector.
• Ensure stakeholders seeking redress with
respect to the implementation of rules
and procedures have access to
appropriate appeal mechanisms.• Allows traders and government to
design and implement internal
business systems, administrative
mechanisms and procedures that
allow them to meet their legal
obligations.• TA programmes to inform
and train trade and customs
officials on appeal
mechanisms, use of
information technology and
electronic commerce, IT
security, computer systems
audits, and to focus attentionof government officials on
the impact of information
and communication
technology on their program
and service delivery.G/C/W/448
Page 5Trade Facilitation
PrinciplesMeasures To Be Promoted Through Trade
Facilitation CommitmentsBenefits TRTA/CB Possibilities
Communication &
Consultation
• Allowing for
stakeholder input
when developing,
implementing and
reviewing rules andprocedures related
to trade.• Early notice of proposed regulatory
changes in annual regulatory plan.
• Public consultation processes to give
interested parties an opportunity to make
views known in a timely way.
• Prior publication in official gazette to
enable public assessment whether
proposals consistent with previousconsultations.
• Requirement for a regular consultative
mechanism with representative private
sector bodies including importers,
exporters, carriers, chambers of
commerce, etc.• Open, informed, and cooperative
relationship between government and
private sector.
• Better informed public that is more
supportive of governmental objectives
and goals.
• Regulators better informed/better
prepared to draft appropriate, lessproblematic, workable laws.
• Early dialogue between interested
parties, governments and the private
sector, on proposed new legislation,
regulations and other border-related
procedures.• TA on the development and
effective use of regular
consultative mechanisms
with private sector bodies.
• Training on how to develop
an annual regulatory plan
and make effective use ofsuch a plan.
Protection &
Compliance
• Rules and
procedures should
provide for an
appropriate balance
among facilitation,
enforcement and
health, safety andprotection against
unlawful activities.• Facilitate the efficient clearance of low-
risk goods with minimal or no physical
examination through risk assessment andpost entry audits.• Post-entry audits least costly way to
assess duty and tax compliance.
• When less focussed on immaterial or
minor errors that do not affectrevenue payments enables an
appropriate focus on areas of greater
risk (i.e., focuses border activities on
security, safety and contraband).
• Moves the enforcement back from the
border with the following impact:
- less examination costs for
business and government;
- reduced border delays; and,
- Customs can focus on top
border-related priorities.• TA and training which will:
- help identify
procedural barriersto trade;
- assist the
development of
principles of good
regulatory practice
for application in
the efficientmovement of trade;
and
- strike an appropriate
balance among
facilitation,enforcement, health,
safety and
protection against
unlawful activities.G/C/W/448
Page 6Trade Facilitation
PrinciplesMeasures To Be Promoted Through Trade
Facilitation CommitmentsBenefits TRTA/CB Possibilities
Standardization
• The implementation
to the greatest extent
possible of
procedures and
obligations based
upon internationaltrade instruments
and rules.• Using existing international standards
where appropriate, develop common data
sets to be requested in the process of
clearance.
• Increased compatibility and
standardization of data entry to facilitatethe increased use of information and
communication technologies.• Improves transparency and
predictability for traders and ensures
common basis for measures applied
by different WTO Members.
• Lowers costs for traders in preparing
trade documents and data.
• Internationally standardized electronic
reporting, where possible, relievestraders from need to adapt to each
country’s individual reporting regime
and need to invest in different
software formats for each country.
• Enhances enforcement capabilities by
providing a platform for customs
administrations to share enforcement
related information on shipments.• Training in the application
of and benefits of
appropriate information
technology, development of
common data sets, interfaces
between automated systems,
electronic commerce, etc.
__________