Group 8 Report Trade Facilitation

FOREIGN TRADE UNIVERSITY
SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

**********
MID-TERM EXAMINATION REPORT

Subject: Trade Facilitation
Code: TMAE410(GD2-HK1-2223).1
Topic: An Analysis of TFA Provisions (Article 7-12)
Group: No. 8
No Student name Student ID
1 Dương Tiến Đạt 2014530002
2 Nguyễn Khánh Linh 2011530024
3 Phạm Tiến Long 2014530007
4 Trần Hoàng Mai 2013530016
5 Nguyễn Tiến Mạnh 2013530017
6 Vũ Nguyễn Thu Trang 2012530047
Lecturer : M.A. Pham Thanh Ha
Hanoi, December 2022

WORK DIVISION
Name Work
Dương Tiến Đạt Chapter 2
Nguyễn Khánh Linh Group leader, outline, report format, chapter 2
Phạm Tiến Long Chapter 3
Trần Hoàng Mai Slide, support chapter 4
Nguyễn Tiến Mạnh Chapter 1, introduction, conclusion
Vũ Nguyễn Thu Trang Chapter 4
LIST OF TABLES
Table 1.1 List of measures (Article 7-10) ..............................................................7
LIST OF FIGURES
Figure 2.1 Global Implementation Commitments (Art. 7-10)..........................................14
Figure 2.2 Top 5 measures with the highest implementation rate....................................15
Figure 2.3 Top 5 measures with the lowest implementation rate.....................................16
Figure 3.1 Global implementation commitments (Art. 11)..............................................25
Figure 3.2 Type of technical assistance requested (Art. 11).............................................25
Figure 4.1 General status of implementation (Art. 12).....................................................30
Figure 4.2 : Global implementation commitments of Article 12......................................31
Figure 4.3 Progress on implementation status (Art. 12)...................................................32
Figure 4.4 Types of technical assistance requested by C category countries under Article
12..................................................................................................................................... 33
Figure 4.5 List of hardest articles under TFA to implement.............................................34
LIST OF CONTENTS
LIST OF TABLES ..........................................................................................................2
LIST OF FIGURES.........................................................................................................3
INTRODUCTION............................................................................................................5
CHAPTER 1:OVERVIEW OF THE ARTICLES........................................................6
1.1. Introduction to Trade Facilitation Agreement....................................................6
1.2. Categories of implementation.............................................................................6
1.3. Content of the articles.........................................................................................7
CHAPTER 2:ARTICLES 7-10.......................................................................................9
2.1. Content analysis.................................................................................................9
2.2. Benefits of the Articles.....................................................................................13
2.3. Implementation status.......................................................................................14
CHAPTER 3:ARTICLE 11...........................................................................................24
3.1. Content analysis...............................................................................................24
3.2. Aims and benefits.............................................................................................24
CHAPTER 4:ARTICLE 12...........................................................................................27
4.1. Content analysis...............................................................................................27
4.2. Aims & Benefits...............................................................................................29
4.4. Solutions & Recommendations........................................................................34
CONCLUSION...............................................................................................................36
APPENDIX .................................................................................................................. 37
REFERENCES...............................................................................................................57
INTRODUCTION
Trade facilitation has been a major concern of many countries for years due to its
undeniable benefits. When mentioning trade facilitation, we cannot overlook the
importance of the Trade Facilitation Agreement approved at the 9th WTO Minister of
WTO (December 7, 2013). Through our following report, our group hopes to focus more
on Section number I of the Agreement of Trade Facilitation which is the Publication of
information which is about Governments have agreed to publish a wide range of
customs-specific information (including on the internet) relating to trade procedures,
including on duty rates and taxes, forms and documents, rules for goods classification
and valuation, rules of origin, transit procedures, and penalties and appeals rules. To be
more specific, our team decide to focus on analyzing Article 7 to Article 12, its
application status, some problems in implementation, and some solutions. Our report has
4 chapters:
Chapter 1: Overview of the articles

Chapter 2: Chapters 7 -10
Chapter 3: Chapter 11
Chapter 4: Chapter 12
The articles are divided into groups based on their link with the GATT agreement,
and they will have a closer look into these articles in this report.
CHAPTER 1: OVERVIEW OF THE ARTICLES
1.1. Introduction to Trade Facilitation Agreement
The Trade Facilitation Agreement started in October 2004, and undergo more than
50 official negotiations along with hundreds of exchanges, group discussions, and
areas, ... with a stopping period due to stagnation. of the capital round, so far the
Agreement has been approved at the 9th WTO Minister of WTO (December 7, 2013) in
Bali (Indonesia) and the Protocol to bring the Agreement into Appendix 1A of the GATT
Agreement 94 was also adopted in Geneva in November 2014.
The agreement consists of 3 main parts: Part I includes technical contents related
to Article V, Article XII, and Article X of the 1994 GATT Agreement including 12
articles; Part II includes provisions related to special and different treatments for
developing members including 10 articles; Part III includes institutional agreements
Section I contains the agreement’s general provisions for expediting the

movement, release, and clearance of goods. This is where we find the obligations laid
down on members regarding measures to be taken in order to facilitate trade. The 12
articles in Section I will be grouped thematically and described briefly. However,
upcoming analyses are about formalities, freedom of transit, and customer cooperation
1.2. Categories of implementation
Developing and LDC Members can request more time and capacity-building
support to implement the Agreement. To benefit from these flexibilities, they must
designate all measures into categories A, B, and/or C which have the following
implementation timings:
CATEGORY A = developing Members will implement the measure by
22/02/2017 and LDCs by 22/02/2018
CATEGORY B = Members will need additional time to implement the measure
CATEGORY C = Members will need additional time and capacity building
support to implement the measure
Besides the notification of categories A, B and C designations, the TFA sets out
different timelines for the notification of indicative and definitive dates for
implementation of categories B and C commitments as well as the technical assistance
required for the implementation of category C commitments.
1.3. Content of the articles
The detailed content of each article can be found in the Appendix of the report. In
table 1.1, we list the measures included in the articles from 7 to 10.
Table 1.1 List of measures (Article 7-10)
Article Measures
7.1 Pre-arrival Processing
7.2 Electronic Payment
7.3 Separation of Release from Final Determination of Customs
Article 7: Duties, Taxes, Fees and Charges
Release and 7.4 Risk Management
Clearance of 7.5 Post-clearance Audit
goods 7.6 Establishment and Publication of Average Release Times
7.7 Trade Facilitation Measures for Authorized Operators
7.8 Expedited Shipments
7.9 Perishable Goods
Article 8: Border Agency Cooperation
Article 9: Movement of goods intended for import under custom control
Article 10: 10.1 Formalities and Documentation Requirements
Formalities 10.2 Acceptance of Copies
connected with 10.3 Use of International Standards
Importation, 10.4 Single Window
Exportation and
10.5 Preshipment Inspection
Transit
10.6 Use of Customs Brokers
10.7 Common Border Procedures and Uniform Documentation
Requirements
10.8 Rejected Goods
10.9 Temporary Admission of Goods and Inward and Outward
Processing
Article 11: Freedom of Transit
12.1 Measures Promoting Compliance and Cooperation
12.2 Exchange of Information
12.3 Verififcation
12.4 Request
12.5 Protection and Confidentiality
Article 12:
12.6 Provision of Information
Customs
12.7 Postponement or Refusal of a Request
Cooperation
12.8 Reciprocity
12.9 Administrative Burden
12.10. Limitations
12.11 Unauthorized Use or Disclosure
12 Bilateral and Regional Agreements
Source: WTO Trade Facilitation Agreement, 2022

CHAPTER 2: ARTICLES 7-10
2.1. Content analysis
Article 6, 7, 8, 9, and 10 of the Trade Facilitation Agreement originate from
Article VIII of the GATT, since they concern fees and formalities connected with
importation and exportation. While Article 6 contains requirements on general disciplines
on fees and charges, Articles from 7 to 10 concern about the procedures and formalities
connected with importation and exportation, whose content will be introduced and
analyzed in the following parts.
Article 7: Release and clearance of goods
Article 7 includes 9 measures covering many areas related to the release and
clearance of goods:
 Measures related to the clearance of goods:
 Pre-arrival processing: Allowing pre-submission of documents or information in

electronic form for pre-processing
 Electronic payment: allowing the option of electronic payment for duties, taxes,
fees, and charges collected by customs incurred upon importation and exportation.
 Risk Management: Member States shall endeavor to adopt and maintain a risk
management system for customs control of exports, imports, and transit, the risk
management system shall be developed according to the following criteria: selected and
must ensure centralized customs control for high-risk shipments and expedite clearance
of low-risk shipments. In addition, the Customs Management System must ensure that it
does not create discrimination in international trade.
 Trade Facilitation Measures for Authorized Operators: regulations on criteria

for priority enterprises as well as trade facilitation measures for these subjects.
 Post-clearance Audit: applying post-clearance audits to ensure legal compliance
and facilitate customs clearance. It also stipulates the obligations of Member States when
conducting post-clearance checks and the value of these results.
 Measures related to the release of goods:
 Separation of Release from Final Determination of Customs Duties, Taxes,

Fees and Charges: specify the Member States to adopt and maintain procedures in this
regard, regulations on such conditions as may be required by the Member for the
application of this procedure, such as guarantee requirements and this provision shall not
affect the right to inspect, seize, seize or dispose of the goods.
 Establishment and Publication of Average Release Times: establishing and

publishing average clearance times as recommended by the World Customs Organization
and encouraging Member States to share their experiences in this area.
 Expedited Shipments: stipulates that Member States must allow the expedited
release of certain consignments, at least by air, if certain conditions are met by the
requester in order to be eligible for the procedure such as good infrastructure, prepayment
of information, self-determining of limited fees in the cost of using services... From those
requirements, Members are also responsible for stipulating relevant content. procedures
such as allowing submission of documents in advance by electronic form, stipulating the
minimum value so that goods do not have to undergo customs inspection, and stipulating
the time for quick release of goods,...
 Perishable Goods: Members will give priority to the clearance of perishable

goods in the shortest possible time, prioritize overtime, prioritize in arranging inspection
schedules and allow such goods to be stored in the importer's warehouse if not yet
approved. clearance. In the event of a delay in release or improper storage conditions, the
Member should also notify the importer. It is a noticeable and important measure as it
helps facilitate the release of perishable goods, which, in turn, addresses the problems of
shipping critical goods/materials having a short expired date but being valuable or
important for production. Thus, the volume of goods traded will increase as well as the
producers will have more choices in procurement plan as well as plant locations.
The above contents are introduced to further ensure the facilitation of trade during
the quick release and clearance of goods.
Article 8: Border agency cooperation
Article 8, having 2 clauses, contains regulations on cooperation mechanisms

between border management agencies in a member country as well as cooperation
mechanisms between border management agencies of two adjacent border countries.
Members shall ensure that their authorities and agencies responsible for border control
cooperates, domestically as well as with the authorities and agencies of other members
with whom they share a common border. Accordingly, agencies must strengthen
coordination; harmonize procedures; general check, set up one stop test... to facilitate
further trade.
Article 9: Movement of goods intended for import under customs control
This article obliges members to, under certain circumstances, allow for goods
intended for import to be moved within their territory. The procedural requirements are
intended to facilitate these shipments by allowing these goods to be allowed to move
between customs locations under customs supervision.
Article 10: Formalities connected with importation, exportation and transit
Shown through 9 parts, the content specified in this article is relatively broad and
relates to almost all customs areas:
 Formalities and Documentation Requirements: Members shall ensure that

trade-related procedures and documentation requirements are no longer an administrative
or trade-restrictive burden in order to achieve their legal policy objectives, but rather
facilitate businesses through reducing customs clearance time and costs for businesses.
 Acceptance of Copies: Members shall accept copies of documents required for
import, export or transit.
 Use of International Standards: Members shall use relevant international

standards as a basis for developing import-export and transit procedures, which will also
be supported by the WTO Trade Facilitation Committee when implementing the
Agreement.
 Single Window: Members, in their capacity, shall gradually adopt and maintain
the Single Window System to facilitate the submission of import and export documents
and data including electronic versions to relevant authorities through a common gate.
 Pre-Shipment Inspection: Members shall not require pre-shipment inspection of

the contents of tariff classification and customs value and encourage no new requirements
for pre-shipment inspection.
 Use of Customs Brokers: Members shall not require to use customs brokerage
agents. The Member shall notify the customs clearance agency measures and any
subsequent amendments. If the practice of customs clearance is to be licensed, the
licensing regulations must be transparent, non-discriminatory, and reasonable.
 Common Border Procedures and Uniform Documentation Requirements:

Common procedures and documentation requirements shall be applied throughout the
territory, however, members may still have different provisions for certain cases to serve
the purposes of risk management, customs application. electronic agency or hygiene and
safety measures.
 Rejected Goods: The member shall authorize the shipment or return of the
consignment to the exporter or the person designated by the exporter in the event that the
consignment fails to meet the safety, hygiene or technical standards. Supposed the
importer is unable to comply with the above request within a reasonable time, the
Member may dispose of the goods.
 Temporary Admission of Goods and Inward and Outward Processing:
requires Members to authorize these activities under the provision of temporary
admission, domestic and foreign outsourcing in accordance with the standards of the
revised Kyoto Convention.
To sum up, Article 10 contains provisions on formalities connected with

importation, exportation and transit. It requires that they are adopted and/or applied with
a view to a rapid release and clearance of goods, in a manner that aims at reducing time
and cost of compliance for traders and operators, that the least trade restrictive measure is
chosen and that formalities and documentation requirements are not maintained if no
longer required. It further contains provisions regarding acceptance of copies and use of
international standards. Members shall endeavor to establish or maintain a single
window. The article also contains provisions on common border procedures and uniform
documentation requirements.
2.2. Benefits of the Articles

There are many benefits reaped from implementing these articles, making customs
procedures more time-saving, cost-saving, and efficient. Rules on release and clearance
of goods (such as pre-arrival processing and electronic payment), border agency
cooperation along with rules on formalities connected with importation, exportation, and
transit (such as acceptance of copies, use of international standards and a single window)
make import and export faster, cheaper and more efficient. They facilitate trade among
nations, increase the trade volume and develop the international market.
Turning to the traders’ perspective, especially of those in developing countries,

some points of the TFA will be discussed to assess the usefulness of the agreement. In
general terms, the TFA must be considered beneficial to all international traders since its
very purpose is to improve the trade environment, making it faster, easier and cheaper to
trade across borders. TF is argued to be extra beneficial for businesses and traders in
developing countries since trade transaction costs are especially high in developing
countries, many LDCs are landlocked or otherwise remotely located with poor
infrastructure, and small companies often lack the capacity to comply with complex rules
and high costs. Developing country traders are usually relatively small in size, they
import and export in smaller quantities. Therefore they face a trade cost that is
disproportionately high, as costs for documentation etc. are often fixed and do not vary
with the size of the quantity imported or exported.
2.3. Implementation status

Figure 1.1 and 1.2 shows us how regulations of TFA (article 7 to article 10 to be
specific) are being implemented among all members of the WTO. Overall, the measures
are observing quite good data of implementation rate, ranging from about 70% to over
80%, especially with Article 9 - Movement of goods, Article 10.5 - Preshipment
inspection, Article 10.9 - Temporary admission of goods and inward and outward
processing and Article 10.9 - Rejected Goods registered the statistics of more than 90%.
Figure 2.1 Global Implementation Commitments (Art. 7-10)

Source: TFAdatabase, 2022
Figure 2.2 Top 5 measures with the highest implementation rate
However, there are also 4 articles (in range of article 7 - article 10) recorded quite
slow process of implementing namely: Article 7.4 - Risk management with 62,4%,
Article 8 - Border Agency Cooperation with 61,5%, Article 7.7 - Authorized operators
with 60,5% and the worst of all Article 10.4 - Single window with a mere implementation
rate of 49.4%.
Figure 2.3 Top 5 measures with the lowest implementation rate
Further investigation into each separate article may be necessary to understand the
situation:
2.3.1. Article 7.4 - Risk Management
The study entitled "The New Frontier of Competitiveness in Developing Countries:
Implementing Trade Facilitation" by UNCTAD analyzed the implementation status of TF
measures in 26 developing countries, including least-developed countries (LDCs),
middle-income developing countries, landlocked countries, transit developing countries,
and small island economies in Africa, Asia, the Caribbean, and Latin America
(UNCTAD, 2014). The study found that the main reason, and also the biggest challenge,
for non-implementation, according to the stakeholders in the participating countries, was
the lack of resources (cited by 61 % of the countries), but also the non application of risk
management by other agencies than Customs or for other purposes such as fiscal evasion
(50%), and the inability to apply it in a homogenous manner at the national level (39 %).
 Solutions
In order to combat these obstacles, a national implementation plan for this measure
with leading implementation agency being customs should be followed in order to assist
the implementation of Article 7.4:
 Put in place a national implementation framework, including legislation,
administrative instructions, regulations and procedures to apply risk management to
import, export and transit goods for Customs control purposes.
 Design an integral, standardized and common risk management system for
customs control: based upon an appropriate selectivity criterion (allowing Customs the
discretion to apply control on a selective basis); applied commonly across the country,
designed and applied to avoid arbitration or unjustifiable discrimination.
 Implement the risk management system, including its: Procedures, Work system,
Selectivity criterion, Method for communicating, exchanging and assessing risk related
information among concerned staff, System monitoring procedures and periodic
reviewing of risk criterion.
 Undertake awareness courses and extensive communication efforts to accompany
the implementation of the risk management system within Customs and other agencies
involved and also for traders.
 Put a procedure in place for cooperation with other trading partners in the domain
of risk management.
 Example:
An outstanding example in the implementation of Article 7.4 - Risk Management

is The Revised Kyoto Convention. The International Convention on the Simplification
and Harmonization of Customs procedures (Kyoto Convention) entered into force in
1974 and was revised and updated to ensure that it meets the current demands of
governments and international trade. The WCO Council adopted the revised Kyoto
Convention in June 1999 as the blueprint for modern and efficient customs procedures in
the 21st century. Once implemented widely, it will provide international commerce with
the predictability and efficiency that modern trade requires. The revised Kyoto
Convention elaborates several key governing principles, with the special focus and
improvement in the risk management activities, coordinated with audit based controls.
The revised Kyoto Convention promotes trade facilitation and effective controls through
its legal provisions that detail the application of simple yet efficient procedures. The
revised Convention also contains new and obligatory rules for its application which all
Contracting Parties must accept without reservation. The revised Kyoto Convention
entered into force on February 3, 2006.
2.3.2. Article 7.7 - Authorized operators
This article also addresses important implementation challenges:
The absence of a suitable national legislative framework that can control the
implementation of a two-tier system of clearance—one tier for approved operators and
the second layer for all other dealers—may provide a barrier. Government personnel may
lack the competence to identify authorized operators based on defined selection criteria.
To properly execute the authorized operator plan, it will be necessary to train workers
appropriately.
The operationalization of approved operator schemes frequently excludes small
and medium-sized enterprises. In reality, obtaining approved operator status is a difficult
procedure for SMEs, and they frequently fail to be accredited. It is vital to establish a
framework that fosters the involvement of small and medium-sized enterprises in
authorized operator schemes.
A mechanism for the periodic assessment of authorized operators is also required
to prevent misuse or abuse of the measure. Once an operator is identified as allowed, they
may exploit their status in order to reduce compliance with security requirements.
 Solutions
UNCTAD recommends a strategy for implementing this item, with customs

typically designated as the primary implementation agency.
Preparatory phase
Identify the organization that will coordinate the execution of the measure.
Identify pertinent agencies, ministries, and representatives from the private sector, and
build a project team with members from each agency. Examine existing procedures and
business processes in order to identify bottlenecks and develop new processes based on
greater collaboration and coordination between agencies. Identify gaps in legal,
regulatory, and institutional frameworks that may impede the measure's implementation.
Determine which alterations to the organizational and ICT structures of various agencies
are necessary for a successful deployment.
Initial phase
Ensure the implementation of identified modifications to institutional, legal, and
regulatory frameworks. Design and execute an authorized operator program that sets the
safety certification standards for operators. Implement necessary adjustments to
organizational and ICT structures and train personnel.
Management and follow-up phase
Periodically monitor and assess the execution of the system that awards trade
operators authorized status, as well as the distribution of benefits. Review and audit
company processes on a regular basis to seek ongoing improvement. Invite input from the
private sector, including traders' ideas and experiences. Raise the private sector's level of
awareness.
 Example
Hong Kong is a prime example of worldwide best practices for authorized

operator systems, which we may investigate in further depth. The Hong Kong Customs
and Excise Department began an AEO initiative in 2012, following a successful trial
project. Implemented without needing legal changes or modifications to existing
company processes, the program is a no-cost accreditation mechanism for local
businesses that meet certain preset security standards. A Hong Kong Customs-accredited
AEO has significant trade facilitation advantages, such as expedited customs clearance:
 Less cargo inspections;
 Prioritized customs clearance if their goods are selected for inspection;
 Reduced stock loss and theft as a result of improved security and safety of their
supply chains; and
 Benefits granted by other customs administrations under mutual recognition
arrangements, such as reduced customs inspections, expedited clearance, deferred
payment or priority treatment.
The most important aspect of success is the customs administration's adaptability
during the certification procedure. Hong Kong Customs provides a free and voluntary
two-tier accreditation scheme whose standards are meant to apply to local businesses,
given that the majority of local industries are SMBs. To date, recognized AEOs
(including SMEs) have satisfied accreditation standards without the need for
modification. A specialized staff executes the program and works closely with applicants
to examine their security profiles throughout the certification process. The officers in
charge of certifying AEO applicants receive training in International Organization for
Standardization security management principles and audit inspection. Hong Kong
Customs organized a series of briefing meetings with various trade groups and outreach
visits with potential applicants to ensure a broad reach.
2.3.3. Article 8 - Border Agency Cooperation
Article 8 strives to promote cooperation between border regulatory authorities (at
both the national and international levels), resulting in cheaper costs, faster processing,
and increased trader customer satisfaction. Implementation of this provision presents a
number of significant obstacles. There may be no current national or international
processes for exchanging information across agencies. It will be necessary to develop and
institutionalize new procedures. In addition, government agencies may lack the required
ICT capabilities to design new protocols for document management, simplification of
operations, co-location, joint exams and inspections, and other coordination management
systems. At the national level, a significant number of agencies (customs, health, food,
animal and plant, and other border control authorities) with sometimes opposing
objectives necessitate interagency collaboration.
 Solutions
To solve these circumstances, the implementation plans below must be

implemented in detail, with customs as the principal implementation agency and animal,
plant, and health authorities anticipated to play a role in quality assurance.
 Focus efforts on improving coordination and communication between border
agencies, including joint inspections; promote synergies between all control
entities.
 The NTFC should have a work plan for ongoing improvement, including the
provisions that were notified in Category A.
 Promote a sense of teamwork aimed at improving efficiency in border controls.
 Ensure standardization of different sets of institutional regulations on the basis of
international standards (e.g. the WCO data model).
 Seek to take account of changes that could affect international trade in the medium
and long term (e.g. the growing importance of e-commerce)
 Example
The Chirundu one-stop border post between Zambia and Zimbabwe was officially
inaugurated in December 2009. It was hailed as the first African one-stop border post.
The goal was to address the challenges of one of the busiest border crossings in the
region where transporters experienced significant delays, due to clearance of consolidated
loads, and procedures by the revenue authorities at the border (Curtis 2009). The
establishment of the one-stop border post has provided some significant improvements:
for example, passengers and commercial traffic stop only once to complete border
formalities for both countries, and waiting times for commercial traffic have been
reduced from about four to five days to a maximum of two days and often to a few hours.
However, the process of transforming the border-crossing and complete integration of all
procedures is a long term project that has shown that trade facilitation is not only about
bricks-and-mortar investment but requires commitment, negotiations, and harmonization
of procedures and policies. The initial results also indicate the importance of starting
discussion on reforms of rules and procedures early in the process.
2.3.4. Article 10.4 - Single window
Governments might not be able to combine documents and processes from
different departments and come up with new rules for setting up and running a software
system. There may be no national protocols in place for exchanging information across
agencies. A lack of ICT capability would impede the effective operation of the SW
system, making it impossible to connect border agencies and simplify data interchange.
These are the most significant barriers to adopting this article.
 Solutions
This issue is addressed through below recommendations, with the close

implementation and examination of the Nation Trade Facilitation Committee (NTFC):
 Establish a technical committee or working group to work directly on developing
and maintaining the single window and help the single window technical
committee or working group to reduce resistance to change.
 Ensure coordination among agencies by periodically reviewing memorandums of
understanding to simplify procedures and strengthen their coordination.
 Develop a monitoring and evaluation plan for the single window's operations in
order to identify bottlenecks and areas for improvement.
 Example
The creation of effective SW facilities in Colombia, Ghana, and Thailand serve as

three instances of best practices.
The formation of a SW in Colombia was prompted by significant paperwork
duplication and a lack of coordination amongst authorities involved in international trade
requirements. High transaction costs raised the cost structures of enterprises, which had a
detrimental impact on the pricing of goods.
In 2004, the government of Colombia approved a decree to run a Single Foreign
Trade Window (VUCE), which allowed trade-related authorities to communicate
pertinent information and users to get prior authorizations, permits, and licenses to
conduct import and export activities. It ensures the technological and legal integrity of
business transactions by including electronic signatures and online payments. VUCE is
made up of three modules:
 Electronic processing of import registration and licenses;
 Electronic processing of prior authorizations for export;
 Electronic processing for prior registration through a Single Foreign Trade Form.
VUCE is arranged in a series of web services connected to the National Tax and
Custom Directorate with the Single Tax Registry (Registro Único Tributario) database
and the Single Business Registry (Registro Único Empresarial), managed by the
Chambers of Commerce, which allows consultation and validation of applicants’ basic
tax and trade information.
Workshops and conferences were held to inform the business sector of the
facility's availability and functions. Government officers were trained to use the system.
Since the establishment of the single window in Colombia, an average of 1,400
transactions have taken place daily.
CHAPTER 3: ARTICLE 11
Goods usually cross multiple border crossings before reaching their destination.
The cost of transporting cargo containers and following various procedures and
requirements of multiple customs administrations is a major share of the value of goods.
In spite of Members’ obligation in terms of Article V of GATT (1994, Freedom of
Transit), transit procedures can still be trade-restrictive. For landlocked countries and
regions, transit across other states’ territories to access international markets and transport
services is an essential condition for their connection to global and regional supply
chains. However, freedom of transit is limited by the sovereign right of countries over
transit across their territories. In fact, the transit state can set specific requirements for
granting access or transit rights which regulate the terms and modalities of transit and are
subject to bilateral or multilateral negotiations. Building on the obligations under Article
V of GATT, Article 11 of the TFA addresses the regulations and formalities imposed by
Members on traffic in transit to ensure that they are not applied in a trade-restrictive
manner.
3.2. Aims and benefits
The implementation of this measure will reduce the time and cost of transit
operations and enhance volumes of transit due to simplification of transit procedures and
formalities.
Use of comprehensive guarantee schemes will accelerate movement of goods,
remove bottlenecks at ports of entry and reduce the risk to businesses. Advance
submission and processing of trade documents will also help reduce delays in the
clearance of goods and will enable smoother document transmission between countries
and agencies.
The publication of information on transit procedures (guarantees, customs
convoys) will ensure transparency and predictability for businesses. Not least, improved
understanding of government procedures will improve traders’ confidence and
compliance.
Inter-agency cooperation among countries will lead to mutual learning and
knowledge exchange to find innovative solutions to common problems faced by traders.
Figure 3.4 Global implementation commitments (Art. 11)

The 77.5% rate of implementation of all WTO members is a quite optimistic
statistic. However there are still some challenges hindering this figure to exceed even
more.
Figure 3.5 Type of technical assistance requested (Art. 11)
Besides these frequently requested type of technical assistance, there are still some
other obstacles to address:
There may be no existing procedures for streamlining traffic in transit and
institutionalizing new processes can be challenging. The financial sector in some
countries may not be able to provide guarantees and other appropriate financial
instruments to reduce risk of transit trade. Moreover, SMEs may not be able to provide
sufficient financial instruments to cover the risks.
A lack of trust and a culture of not sharing information can hamper genuine inter-
agency cooperation as agencies may not want to work together, share data or harmonize
their information requirements.
Suggestions:
 If needed, take legal or administrative measures to reduce restrictions to traffic in
transit and support free transit trade. Nominate a transit coordinator as a focal point.
Conduct business process analysis of existing procedures and documentation to ensure
the implementation of the measure.
 Put in place a protocol of coordination with all relevant agencies so that
documents and data may be shared. Assign sufficient trained staff. Where possible,
implement processes with ICT-enabled solutions. Undertake a robust public awareness
campaign. Specific requirements related to transit are published.
 Set up a monitoring mechanism to ensure compliance of the measure. Perform
reasonable and regular reviews of formalities, business processes and documentation
requirements to ensure compliance with laws and procedures. Encourage users to give
feedback and evaluation on the procedures.
CHAPTER 4: ARTICLE 12
According to the World Trade Organization (2017), the final paragraph of Section
I, Article 12, which is independent of any GATT clause, deals with customs cooperation.
It has several clauses that are intended to improve customs cooperation.
Article 12 includes 12 clauses, covering aspects of regulating customs assistance:
 Measures Promoting Compliance and Cooperation: Encouraging voluntary

compliance to self-correction, information sharing in order to administer compliance
measures and enhance their effectiveness
 Exchange of Information: Members are compiled to provide clarity of contact

point and open for verifying export/import declaration when discrepancies arise.
 Verification: The requesting member must ensure that the necessary internal
verification procedures have been carried out before submitting the verification request
 Request: The requesting Member shall provide the requested Member with a
written request, through paper or electronic means in a mutually agreed official language
of the WTO or other mutually agreed language, including: matter of issue, purpose of
request, date, place, information on documents requested, reference to law/legal system
that govern the information & data - par specific members
 Protection and Confidentiality: Members are subject to protect the

confidentiality of information of the other parties and treat the documents provided of the
same importance under the legal system/law of their own
 Provision of Information: The requested member will provide information (about

goods, about transportation, about packaging, ...) within a certain period of time from
receipt of the request. The information/documents exchanged must serve the purposes
stated in the request, and may not be used as evidence in criminal/judicial proceedings
without permission. The exchange of information must ensure that it does not contravene
the law and must not affect sovereignty, security, significant interests, etc.
 Postponement or Refusal of a Request: Members hold the right to refuse and

withhold the release of information if it is contradictory to their country’s legal system, or
the request for information is received after the expiration of the legal requirement of the
requested Member for the retention of documents
 Reciprocity: Cases of refusal to provide, the obligations and responsibilities of the

Requesting Party and the Requested Party to provide information, and the relationship to
this content in other bilateral or regional Agreements.
 Administrative Burden: Information requesting has to take cost implications &

resources, the requested member could prioritize based on resource constraints.
 Limitations: A requested member shall not be responsible for providing the above
exchange of information and documents shall not cause the requested Member to change
the form of its declarations or procedures, to require documents other than the customs
dossier, to change the storage period of documents or data, provide confidential
information or have such information/documentation translated.
 Unauthorized Use or Disclosure: In case of breach of the conditions exchanged,

the requesting Member that received the information shall promptly communicate the
details of such unauthorized use or disclosure to the requested Member that provided the
information and take measures to remedy, prevent the future breach and notify taken
measures
 Bilateral and Regional Agreements: Contents of the Article would not contradict
a member’s new agreements for the exchange of information, or affect their rights &
obligations under such agreements.
Overall, Article 12 dwells into regulations governing customs cooperation

mechanisms for facilitation and compliance, particularly those relating to the exchange of
data/documents on customs issues under mutually agreeable conditions when there is a
mutual agreement doubts exist regarding the veracity of the import and export
declaration; it is the Member's duty to confirm the data and ensure its privacy.
4.2. Aims & Benefits
 Aims:
Article 12 aims to monitor confidentiality when exchanging information while

ensuring effective customs control (World Trade Organization, 2017).
 Benefits
Customs cooperation is considered an improvement for businesses, which is the

encouragement of member states to develop voluntary compliance systems that allows
importers to self-correct without penalty. It has been argued by traders that a strong
commitment to compliance, supported with a track record, should be recognised by
customs authorities.
It also allows Members flexibility in terms of establishing the legal basis for
information exchange.
Member states of WTO are able to set time frames for the provision and receipt of
information while still maintaining any other agreements they are engaged in.

As of current time, the extent of implementation of Article 12 has stark differences
between countries: a country either implements it to the fullest potential or makes no
progress at all - while the exact data is not identical among all, the general trend is as
mentioned. Based on the nature of Article 12, other trade facilitation measures could be
built on customs cooperation, particularly information exchanges, but the Article's
obligation is minimal. The requested Member shall provide information in response to a
written request made in accordance with Article 12-4, but the phrase "to the extent
information is available" transforms this obligation into a best-endeavor obligation
(Article 12-6 b, c, and e). Additionally, the requested Member may refuse to provide
information for public interest purposes in accordance with applicable domestic laws and
other regulations (Article 12-7.1). It is noteworthy that domestic law may serve as
justification for delaying or rejecting the disclosure of information (Article 12-7.1.b)
Figure 4.6 General status of implementation (Art. 12)

When taking a closer look, it is noted that only approximately 73% of the world's
countries have taken measures to implement the Article, and a huge percentage of it
(particularly 62.8% have fully complied with Article 12), 8% complying with the
agreement but still needs improvement and 2.9% needing assistance in carrying out the
implementation. Compared to the average progress of implementing Trade Facilitation
Agreements of 74.0%, this Article has a good implementation route; however, due to the
fact that this article does not base on any previous trade facilitation measures and the
delicate nature of customs procedures, the study on this section is quite scarce compared
to many others.
Figure 4.7 : Global implementation commitments of Article 12
In the Figure below, it can be seen that the leading implementation of Article 12
group is the developed members - who also take up the entirety of the developed member
sector. The group with least engagement in implementing the TFA Article 12 is the least-
developing countries, but so far no country in this group has fallen into catergory C. On
the other hand, the developing countries as a whole have progressed at 77.9% overall,
exceeding the global progress but hold the most category C countries (those need
assistance to implement the agreement).
Figure 4.8 Progress on implementation status (Art. 12)
For the category C members, common problems can be investigated in the Figure
below. The most frequent problems that hinder the progress of implementation is
legislative & regulatory framework and human resource & training - which is reasonable
due to the fact that for each countries, there is a particular take on a legal structure that
fits the best for their own situation, and it is not always easy to adjust according to
globalization or global implementation of this case. For human resource & training, it is
apparent that those who encounter this problem are mostly those falling under the
developing & least-developing countries - who lack many things including capital to
match the budget required for appropriate personnel training. The second most common
problem is information & communication technologies (ICT) - which is a crucial aspect
for custom coorperation that is heavily driven by capital capability.
Figure 4.9 Types of technical assistance requested by C category countries

under Article 12
And for this fact, it is also proven in a study by WTO Secretariat, showing
Customs Cooperation as one of the hardest trade facilitation disciplines to implement for
its integratedness across the board to reach full-scale implementation worldwide - and
surprisingly, this acknowledgement is shared similarly in all 3 groups of the country
listed in the Figure.
Figure 4.10 List of hardest articles under TFA to implement
Source: World Trade Organization, 2015
4.4. Solutions & Recommendations

To make an attempt to better the implementation of Article 12: customs
cooperation, there has yet to be a clear path for member countries to follow. Some
possible support for implementation are review and enhance the organizational structure,
hierarchy, and legislation based on international best practices in order to facilitate the
signing of free trade and mutual recognition agreements and the possibility of monetary
aid or training programs from developed members to create opportunities for other less
developed countries to follow. However, there is a general framework for better custom
system that could possibly assist the implementation of Article 12, it is as follow:
 Establishing National Trade Facilitation Committees as a priority to foster

inter-agency cooperation and build the kind of constructive public-private dialogue so
necessary for effective implementation of the TFA.
 Establish a process for the regular review of procedures, formalities, fees and
documentation requirements to ensure they are essential and are administered in the
least restrictive manner. This is a critical sequencing step in building a sustainable reform
program.
 Creating enquiry points staffed with qualified personnel dedicated to providing

accurate and up-to-date information to traders.
 Ensuring that all border management agencies employ a risk-based approach

to border clearance. It matters little if customs clear cargo quickly if other agencies
apply time-consuming and costly blanket inspection policies that clog up ports and border
posts.
 Improving cross-border cooperation. Efficiency gains at the border are often

achieved when neighboring countries work together to improve procedures. Exchanging
data in advance of arrival can make a major difference, as can harmonize procedures and
establish common working hours.
CONCLUSION
In conclusion, our team members have researched and resulted in the above report
within articles 7 to 12 of Section number I of the Agreement of Trade Facilitation which
is the Publication of information. Also, an overview of the Agreement of Trade
Facilitation, its history, timeline, and how the Agreement was regulated on December 7,
2013, in Bali, Indonesia. Furthermore, throughout the selected articles, we have analyzed
their contents, aims, and benefits. We also look into how they are applied on a global
scale, what are the challenges in implementation, and suggest some solutions to the
existing problems
Finally, our group deeply appreciated the teacher’s effort in pointing out what we
have not been able to achieve, so we could improve in the future. We sincerely thank you
for your help and support.
APPENDIX
ARTICLE 7: RELEASE AND CLEARANCE OF GOODS
1 Pre-arrival Processing
1.1 Each Member shall adopt or maintain procedures allowing for the submission of
import documentation and other required information, including manifests, in order to
begin processing prior to the arrival of goods with a view to expediting the release of
goods upon arrival.
1.2 Each Member shall, as appropriate, provide for advance lodging of documents
in electronic format for pre-arrival processing of such documents.
2 Electronic Payment
Each Member shall, to the extent practicable, adopt or maintain procedures allowing
the option of electronic payment for duties, taxes, fees, and charges collected by customs
incurred upon importation and exportation.
3 Separation of Release from Final Determination of Customs Duties, Taxes,
Fees and Charges
3.1 Each Member shall adopt or maintain procedures allowing the release of goods
prior to the final determination of customs duties, taxes, fees, and charges, if such a
determination is not done prior to, or upon arrival, or as rapidly as possible after arrival
and provided that all other regulatory requirements have been met.
3.2 As a condition for such release, a Member may require:
(a) payment of customs duties, taxes, fees, and charges determined prior to or upon
arrival of goods and a guarantee for any amount not yet determined in the form of a
surety, a deposit, or another appropriate instrument provided for in its laws and
regulations; or
(b) a guarantee in the form of a surety, a deposit, or another appropriate instrument
provided for in its laws and regulations.
3.3 Such guarantee shall not be greater than the amount the Member requires to
ensure payment of customs duties, taxes, fees, and charges ultimately due for the goods
covered by the guarantee.
3.4 In cases where an offence requiring imposition of monetary penalties or fines
has been detected, a guarantee may be required for the penalties and fines that may be
imposed.
3.5 The guarantee as set out in paragraphs 3.2 and 3.4 shall be discharged when it is
no longer required.
3.6 Nothing in these provisions shall affect the right of a Member to examine,
detain, seize or confiscate or deal with the goods in any manner not otherwise
inconsistent with the Member's WTO rights and obligations.
4 Risk Management
4.1 Each Member shall, to the extent possible, adopt or maintain a risk management
system for customs control.
4.2 Each Member shall design and apply risk management in a manner as to avoid
arbitrary or unjustifiable discrimination, or a disguised restriction on international trade.
4.3 Each Member shall concentrate customs control and, to the extent possible other
relevant border controls, on high-risk consignments and expedite the release of low-risk
consignments. A Member also may select, on a random basis, consignments for such
controls as part of its risk management.
4.4 Each Member shall base risk management on an assessment of risk through
appropriate selectivity criteria. Such selectivity criteria may include, inter alia, the
Harmonized System code, nature and description of the goods, country of origin, country
from which the goods were shipped, value of the goods, compliance record of traders,
and type of means of transport.
5 Post-clearance Audit
5.1 With a view to expediting the release of goods, each Member shall adopt or
maintain post-clearance audit to ensure compliance with customs and other related laws
and regulations.
5.2 Each Member shall select a person or a consignment for post-clearance audit in
a risk-based manner, which may include appropriate selectivity criteria. Each Member
shall conduct post-clearance audits in a transparent manner. Where the person is involved
in the audit process and conclusive results have been achieved the Member shall, without
delay, notify the person whose record is audited of the results, the person's rights and
obligations, and the reasons for the results.
5.3 The information obtained in post-clearance audit may be used in further
administrative or judicial proceedings.
5.4 Members shall, wherever practicable, use the result of post-clearance audit in
applying risk management.
6 Establishment and Publication of Average Release Times
6.1 Members are encouraged to measure and publish their average release time of
goods periodically and in a consistent manner, using tools such as, inter alia, the Time
Release Study of the World Customs Organization (referred to in this Agreement as the
"WCO").(6)
6.2 Members are encouraged to share with the Committee their experiences in
measuring average release times, including methodologies used, bottlenecks identified,
and any resulting effects on efficiency.
7 Trade Facilitation Measures for Authorized Operators
7.1 Each Member shall provide additional trade facilitation measures related to
import, export, or transit formalities and procedures, pursuant to paragraph 7.3, to
operators who meet specified criteria, hereinafter called authorized operators.
Alternatively, a Member may offer such trade facilitation measures through customs
procedures generally available to all operators and is not required to establish a separate
scheme.
7.2 The specified criteria to qualify as an authorized operator shall be related to
compliance, or the risk of non-compliance, with requirements specified in a Member's
laws, regulations or procedures.
(a) Such criteria, which shall be published, may include:
(i) an appropriate record of compliance with customs and other related laws and
regulations;
(ii) a system of managing records to allow for necessary internal controls;
(iii) financial solvency, including, where appropriate, provision of a sufficient
security or guarantee; and
(iv) supply chain security.
(b) Such criteria shall not:
(i) be designed or applied so as to afford or create arbitrary or unjustifiable
discrimination between operators where the same conditions prevail; and
(ii) to the extent possible, restrict the participation of small and medium-sized
enterprises.
7.3 The trade facilitation measures provided pursuant to paragraph 7.1 shall include
at least three of the following measures:(7)
(a) low documentary and data requirements, as appropriate;
(b) low rate of physical inspections and examinations, as appropriate;
(c) rapid release time, as appropriate;
(d) deferred payment of duties, taxes, fees, and charges;
(e) use of comprehensive guarantees or reduced guarantees;
(f) a single customs declaration for all imports or exports in a given period; and
(g) clearance of goods at the premises of the authorized operator or another place
authorized by customs.
7.4 Members are encouraged to develop authorized operator schemes on the basis of
international standards, where such standards exist, except when such standards would be
an inappropriate or ineffective means for the fulfilment of the legitimate objectives
pursued.
7.5 In order to enhance the trade facilitation measures provided to operators,
Members shall afford to other Members the possibility of negotiating mutual recognition
of authorized operator schemes.
7.6 Members shall exchange relevant information within the Committee about
authorized operator schemes in force.
8 Expedited Shipments
8.1 Each Member shall adopt or maintain procedures allowing for the expedited
release of at least those goods entered through air cargo facilities to persons who apply
for such treatment, while maintaining customs control.(8) If a Member employs
criteria(9) limiting who may apply, the Member may, in published criteria, require that the
applicant shall, as conditions for qualifying for the application of the treatment described
in paragraph 8.2 to its expedited shipments:
(a) provide adequate infrastructure and payment of customs expenses related to
processing of expedited shipments in cases where the applicant fulfils the Member's
requirements for such processing to be performed at a dedicated facility;
(b) submit in advance of the arrival of an expedited shipment the information
necessary for the release;
(c) be assessed fees limited in amount to the approximate cost of services rendered
in providing the treatment described in paragraph 8.2;
(d) maintain a high degree of control over expedited shipments through the use of
internal security, logistics, and tracking technology from pick-up to delivery;
(e) provide expedited shipment from pick-up to delivery;
(f) assume liability for payment of all customs duties, taxes, fees, and charges to the
customs authority for the goods;
(g) have a good record of compliance with customs and other related laws and
regulations;
(h) comply with other conditions directly related to the effective enforcement of the
Member's laws, regulations, and procedural requirements, that specifically relate to
providing the treatment described in paragraph 8.2.
8.2 Subject to paragraphs 8.1 and 8.3, Members shall:
(a) minimize the documentation required for the release of expedited shipments in
accordance with paragraph 1 of Article 10 and, to the extent possible, provide for release
based on a single submission of information on certain shipments;
(b) provide for expedited shipments to be released under normal circumstances as
rapidly as possible after arrival, provided the information required for release has been
submitted;
(c) endeavour to apply the treatment in subparagraphs (a) and (b) to shipments of
any weight or value recognizing that a Member is permitted to require additional entry
procedures, including declarations and supporting documentation and payment of duties
and taxes, and to limit such treatment based on the type of good, provided the treatment is
not limited to low value goods such as documents; and
(d) provide, to the extent possible, for a de minimis shipment value or dutiable
amount for which customs duties and taxes will not be collected, aside from certain
prescribed goods. Internal taxes, such as value added taxes and excise taxes, applied to
imports consistently with Article III of the GATT 1994 are not subject to this provision.
8.3 Nothing in paragraphs 8.1 and 8.2 shall affect the right of a Member to examine,
detain, seize, confiscate or refuse entry of goods, or to carry out post-clearance audits,
including in connection with the use of risk management systems. Further, nothing in
paragraphs 8.1 and 8.2 shall prevent a Member from requiring, as a condition for release,
the submission of additional information and the fulfilment of non-automatic licensing
requirements.
9 Perishable Goods
9.1 With a view to preventing avoidable loss or deterioration of perishable goods,
and provided that all regulatory requirements have been met, each Member shall provide
for the release of perishable goods:
(a) under normal circumstances within the shortest possible time; and
(b) in exceptional circumstances where it would be appropriate to do so, outside the
business hours of customs and other relevant authorities.
9.2 Each Member shall give appropriate priority to perishable goods when
scheduling any examinations that may be required.
9.3 Each Member shall either arrange or allow an importer to arrange for the proper
storage of perishable goods pending their release. The Member may require that any
storage facilities arranged by the importer have been approved or designated by its
relevant authorities. The movement of the goods to those storage facilities, including
authorizations for the operator moving the goods, may be subject to the approval, where
required, of the relevant authorities. The Member shall, where practicable and consistent
with domestic legislation, upon the request of the importer, provide for any procedures
necessary for release to take place at those storage facilities.
9.4 In cases of significant delay in the release of perishable goods, and upon written
request, the importing Member shall, to the extent practicable, provide a communication
on the reasons for the delay.
ARTICLE 8: BORDER AGENCY COOPERATION
1. Each Member shall ensure that its authorities and agencies responsible for border
controls and procedures dealing with the importation, exportation, and transit of goods
cooperate with one another and coordinate their activities in order to facilitate trade.
2. Each Member shall, to the extent possible and practicable, cooperate on mutually
agreed terms with other Members with whom it shares a common border with a view to
coordinating procedures at border crossings to facilitate cross-border trade. Such
cooperation and coordination may include:
(a) alignment of working days and hours;
(b) alignment of procedures and formalities;
(c) development and sharing of common facilities;
(d) joint controls;
(e) establishment of one stop border post control.
ARTICLE 9: MOVEMENT OF GOODS INTENDED FOR IMPORT UNDER
CUSTOMS CONTROL
Each Member shall, to the extent practicable, and provided all regulatory
requirements are met, allow goods intended for import to be moved within its territory
under customs control from a customs office of entry to another customs office in its
territory from where the goods would be released or cleared.
ARTICLE 10: FORMALITIES CONNECTED WITH IMPORTATION,
EXPORTATION AND TRANSIT
1 Formalities and Documentation Requirements
1.1 With a view to minimizing the incidence and complexity of import, export, and
transit formalities and to decreasing and simplifying import, export, and transit
documentation requirements and taking into account the legitimate policy objectives and
other factors such as changed circumstances, relevant new information, business
practices, availability of techniques and technology, international best practices, and
inputs from interested parties, each Member shall review such formalities and
documentation requirements and, based on the results of the review, ensure, as
appropriate, that such formalities and documentation requirements are:
(a) adopted and/or applied with a view to a rapid release and clearance of goods,
particularly perishable goods;
(b) adopted and/or applied in a manner that aims at reducing the time and cost of
compliance for traders and operators;
(c) the least trade restrictive measure chosen where two or more alternative
measures are reasonably available for fulfilling the policy objective or objectives in
question; and
(d) not maintained, including parts thereof, if no longer required.
1.2 The Committee shall develop procedures for the sharing by Members of
relevant information and best practices, as appropriate.
2 Acceptance of Copies
2.1 Each Member shall, where appropriate, endeavour to accept paper or electronic
copies of supporting documents required for import, export, or transit formalities.
2.2 Where a government agency of a Member already holds the original of such a
document, any other agency of that Member shall accept a paper or electronic copy,
where applicable, from the agency holding the original in lieu of the original document.
2.3 A Member shall not require an original or copy of export declarations submitted
to the customs authorities of the exporting Member as a requirement for importation.(11)
3 Use of International Standards
3.1 Members are encouraged to use relevant international standards or parts thereof
as a basis for their import, export, or transit formalities and procedures, except as
otherwise provided for in this Agreement.
3.2 Members are encouraged to take part, within the limits of their resources, in the
preparation and periodic review of relevant international standards by appropriate
international organizations.
3.3 The Committee shall develop procedures for the sharing by Members of
relevant information, and best practices, on the implementation of international standards,
as appropriate.
The Committee may also invite relevant international organizations to discuss their
work on international standards. As appropriate, the Committee may identify specific
standards that are of particular value to Members.
4 Single Window
4.1 Members shall endeavour to establish or maintain a single window, enabling
traders to submit documentation and/or data requirements for importation, exportation, or
transit of goods through a single entry point to the participating authorities or agencies.
After the examination by the participating authorities or agencies of the documentation
and/or data, the results shall be notified to the applicants through the single window in a
timely manner.
4.2 In cases where documentation and/or data requirements have already been
received through the single window, the same documentation and/or data requirements
shall not be requested by participating authorities or agencies except in urgent
circumstances and other limited exceptions which are made public.
4.3 Members shall notify the Committee of the details of operation of the single
window.
4.4 Members shall, to the extent possible and practicable, use information
technology to support the single window.
5 Preshipment Inspection
5.1 Members shall not require the use of preshipment inspections in relation to tariff
classification and customs valuation.
5.2 Without prejudice to the rights of Members to use other types of preshipment
inspection not covered by paragraph 5.1, Members are encouraged not to introduce or
apply new requirements regarding their use.(12)
6 Use of Customs Brokers
6.1 Without prejudice to the important policy concerns of some Members that
currently maintain a special role for customs brokers, from the entry into force of this
Agreement Members shall not introduce the mandatory use of customs brokers.
6.2 Each Member shall notify the Committee and publish its measures on the use of
customs brokers. Any subsequent modifications thereof shall be notified and published
promptly.
6.3 With regard to the licensing of customs brokers, Members shall apply rules that
are transparent and objective.
7 Common Border Procedures and Uniform Documentation Requirements
7.1 Each Member shall, subject to paragraph 7.2, apply common customs
procedures and uniform documentation requirements for release and clearance of goods
throughout its territory.
7.2 Nothing in this Article shall prevent a Member from:
(a) differentiating its procedures and documentation requirements based on the
nature and type of goods, or their means of transport;
(b) differentiating its procedures and documentation requirements for goods based
on risk management;
(c) differentiating its procedures and documentation requirements to provide total or
partial exemption from import duties or taxes;
(d) applying electronic filing or processing; or
(e) differentiating its procedures and documentation requirements in a manner
consistent with the Agreement on the Application of Sanitary and Phytosanitary
Measures.
8 Rejected Goods
8.1 Where goods presented for import are rejected by the competent authority of a
Member on account of their failure to meet prescribed sanitary or phytosanitary
regulations or technical regulations, the Member shall, subject to and consistent with its
laws and regulations, allow the importer to re-consign or to return the rejected goods to
the exporter or another person designated by the exporter.
8.2 When such an option under paragraph 8.1 is given and the importer fails to
exercise it within a reasonable period of time, the competent authority may take a
different course of action to deal with such nonâ€‘compliant goods.
9 Temporary Admission of Goods and Inward and Outward Processing
9.1 Temporary Admission of Goods
Each Member shall allow, as provided for in its laws and regulations, goods to be
brought into its customs territory conditionally relieved, totally or partially, from
payment of import duties and taxes if such goods are brought into its customs territory for
a specific purpose, are intended for re-exportation within a specific period, and have not
undergone any change except normal depreciation and wastage due to the use made of
them.
9.2 Inward and Outward Processing
(a) Each Member shall allow, as provided for in its laws and regulations, inward and
outward processing of goods. Goods allowed for outward processing may be re-imported
with total or partial exemption from import duties and taxes in accordance with the
Member's laws and regulations.
(b) For the purposes of this Article, the term "inward processing" means the
customs procedure under which certain goods can be brought into a Member’s customs
territory conditionally relieved, totally or partially, from payment of import duties and
taxes, or eligible for duty drawback, on the basis that such goods are intended for
manufacturing, processing, or repair and subsequent exportation.
(c) For the purposes of this Article, the term "outward processing" means the
customs procedure under which goods which are in free circulation in a Member’s
customs territory may be temporarily exported for manufacturing, processing, or repair
abroad and then re-imported.
ARTICLE 11: FREEDOM OF TRANSIT
1. Any regulations or formalities in connection with traffic in transit imposed by a
Member shall not be:
(a) maintained if the circumstances or objectives giving rise to their adoption no
longer exist or if the changed circumstances or objectives can be addressed in a
reasonably available less trade-restrictive manner;
(b) applied in a manner that would constitute a disguised restriction on traffic in
transit.
2. Traffic in transit shall not be conditioned upon collection of any fees or charges
imposed in respect of transit, except the charges for transportation or those commensurate
with administrative expenses entailed by transit or with the cost of services rendered.
3. Members shall not seek, take, or maintain any voluntary restraints or any other
similar measures on traffic in transit. This is without prejudice to existing and future
national regulations, bilateral or multilateral arrangements related to regulating transport,
consistent with WTO rules.
4. Each Member shall accord to products which will be in transit through the
territory of any other Member treatment no less favourable than that which would be
accorded to such products if they were being transported from their place of origin to
their destination without going through the territory of such other Member.
5. Members are encouraged to make available, where practicable, physically
separate infrastructure (such as lanes, berths and similar) for traffic in transit.
6. Formalities, documentation requirements, and customs controls in connection
with traffic in transit shall not be more burdensome than necessary to:
(a) identify the goods; and
(b) ensure fulfilment of transit requirements.
7. Once goods have been put under a transit procedure and have been authorized to
proceed from the point of origination in a Member's territory, they will not be subject to
any customs charges nor unnecessary delays or restrictions until they conclude their
transit at the point of destination within the Member's territory.
8. Members shall not apply technical regulations and conformity assessment
procedures within the meaning of the Agreement on Technical Barriers to Trade to goods
in transit.
9. Members shall allow and provide for advance filing and processing of transit
documentation and data prior to the arrival of goods.
10. Once traffic in transit has reached the customs office where it exits the territory
of a Member, that office shall promptly terminate the transit operation if transit
requirements have been met.
11. Where a Member requires a guarantee in the form of a surety, deposit or other
appropriate monetary or non-monetary(13) instrument for traffic in transit, such guarantee
shall be limited to ensuring that requirements arising from such traffic in transit are
fulfilled.
12. Once the Member has determined that its transit requirements have been
satisfied, the guarantee shall be discharged without delay.
13. Each Member shall, in a manner consistent with its laws and regulations, allow
comprehensive guarantees which include multiple transactions for same operators or
renewal of guarantees without discharge for subsequent consignments.
14. Each Member shall make publicly available the relevant information it uses to
set the guarantee, including single transaction and, where applicable, multiple transaction
guarantee.
15. Each Member may require the use of customs convoys or customs escorts for
traffic in transit only in circumstances presenting high risks or when compliance with
customs laws and regulations cannot be ensured through the use of guarantees. General
rules applicable to customs convoys or customs escorts shall be published in accordance
with Article 1.
16. Members shall endeavour to cooperate and coordinate with one another with a
view to enhancing freedom of transit. Such cooperation and coordination may include,
but is not limited to, an understanding on:
(a) charges;
(b) formalities and legal requirements; and
(c) the practical operation of transit regimes.
17. Each Member shall endeavour to appoint a national transit coordinator to which
all enquiries and proposals by other Members relating to the good functioning of transit
operations can be addressed.
ARTICLE 12: CUSTOMS COOPERATION
1 Measures Promoting Compliance and Cooperation
1.1 Members agree on the importance of ensuring that traders are aware of their
compliance obligations, encouraging voluntary compliance to allow importers to self-
correct without penalty in appropriate circumstances, and applying compliance measures
to initiate stronger measures for non-compliant traders.(14)
1.2 Members are encouraged to share information on best practices in managing
customs compliance, including through the Committee. Members are encouraged to
cooperate in technical guidance or assistance and support for capacity building for the
purposes of administering compliance measures and enhancing their effectiveness.
2 Exchange of Information
2.1 Upon request and subject to the provisions of this Article, Members shall
exchange the information set out in subparagraphs 6.1(b) and/or (c) for the purpose of
verifying an import or export declaration in identified cases where there are reasonable
grounds to doubt the truth or accuracy of the declaration.
2.2 Each Member shall notify the Committee of the details of its contact point for
the exchange of this information.
3 Verification
A Member shall make a request for information only after it has conducted
appropriate verification procedures of an import or export declaration and after it has
inspected the available relevant documentation.
4 Request
4.1 The requesting Member shall provide the requested Member with a written
request, through paper or electronic means in a mutually agreed official language of the
WTO or other mutually agreed language, including:
(a) the matter at issue including, where appropriate and available, the number
identifying the export declaration corresponding to the import declaration in question;
(b) the purpose for which the requesting Member is seeking the information or
documents, along with the names and contact details of the persons to whom the request
relates, if known;
(c) where required by the requested Member, confirmation (15) of the verification
where appropriate;
(d) the specific information or documents requested;
(e) the identity of the originating office making the request;
(f) reference to provisions of the requesting Member's domestic law and legal
system that govern the collection, protection, use, disclosure, retention, and disposal of
confidential information and personal data.
4.2 If the requesting Member is not in a position to comply with any of the
subparagraphs of paragraph 4.1, it shall specify this in the request.
5 Protection and Confidentiality
5.1 The requesting Member shall, subject to paragraph 5.2:
(a) hold all information or documents provided by the requested Member strictly in
confidence and grant at least the same level of such protection and confidentiality as that
provided under the domestic law and legal system of the requested Member as described
by it under subparagraphs 6.1(b) or (c);
(b) provide information or documents only to the customs authorities dealing with
the matter at issue and use the information or documents solely for the purpose stated in
the request unless the requested Member agrees otherwise in writing;
(c) not disclose the information or documents without the specific written
permission of the requested Member;
(d) not use any unverified information or documents from the requested Member as
the deciding factor towards alleviating the doubt in any given circumstance;
(e) respect any case-specific conditions set out by the requested Member regarding
retention and disposal of confidential information or documents and personal data; and
(f) upon request, inform the requested Member of any decisions and actions taken
on the matter as a result of the information or documents provided.
5.2 A requesting Member may be unable under its domestic law and legal system to
comply with any of the subparagraphs of paragraph 5.1. If so, the requesting Member
shall specify this in the request.
5.3 The requested Member shall treat any request and verification information
received under paragraph 4 with at least the same level of protection and confidentiality
accorded by the requested Member to its own similar information.
6 Provision of Information
6.1 Subject to the provisions of this Article, the requested Member shall promptly:
(a) respond in writing, through paper or electronic means;
(b) provide the specific information as set out in the import or export declaration, or
the declaration, to the extent it is available, along with a description of the level of
protection and confidentiality required of the requesting Member;
(c) if requested, provide the specific information as set out in the following
documents, or the documents, submitted in support of the import or export declaration, to
the extent it is available: commercial invoice, packing list, certificate of origin and bill of
lading, in the form in which these were filed, whether paper or electronic, along with a
description of the level of protection and confidentiality required of the requesting
Member;
(d) confirm that the documents provided are true copies;
(e) provide the information or otherwise respond to the request, to the extent
possible, within 90 days from the date of the request.
6.2 The requested Member may require, under its domestic law and legal system, an
assurance prior to the provision of information that the specific information will not be
used as evidence in criminal investigations, judicial proceedings, or in non-customs
proceedings without the specific written permission of the requested Member. If the
requesting Member is not in a position to comply with this requirement, it should specify
this to the requested Member.
7 Postponement or Refusal of a Request
7.1 A requested Member may postpone or refuse part or all of a request to provide
information, and shall inform the requesting Member of the reasons for doing so, where:
(a) it would be contrary to the public interest as reflected in the domestic law and
legal system of the requested Member;
(b) its domestic law and legal system prevents the release of the information. In
such a case it shall provide the requesting Member with a copy of the relevant, specific
reference;
(c) the provision of the information would impede law enforcement or otherwise
interfere with an on-going administrative or judicial investigation, prosecution or
proceeding;
(d) the consent of the importer or exporter is required by its domestic law and legal
system that govern the collection, protection, use, disclosure, retention, and disposal of
confidential information or personal data and that consent is not given; or
(e) the request for information is received after the expiration of the legal
requirement of the requested Member for the retention of documents.
7.2 In the circumstances of paragraphs 4.2, 5.2, or 6.2, execution of such a request
shall be at the discretion of the requested Member.
8 Reciprocity
If the requesting Member is of the opinion that it would be unable to comply with a
similar request if it was made by the requested Member, or if it has not yet implemented
this Article, it shall state that fact in its request. Execution of such a request shall be at the
discretion of the requested Member.
9 Administrative Burden
9.1 The requesting Member shall take into account the associated resource and cost
implications for the requested Member in responding to requests for information. The
requesting Member shall consider the proportionality between its fiscal interest in
pursuing its request and the efforts to be made by the requested Member in providing the
information.
9.2 If a requested Member receives an unmanageable number of requests for
information or a request for information of unmanageable scope from one or more
requesting Member(s) and is unable to meet such requests within a reasonable time, it
may request one or more of the requesting Member(s) to prioritize with a view to
agreeing on a practical limit within its resource constraints. In the absence of a mutually-
agreed approach, the execution of such requests shall be at the discretion of the requested
Member based on the results of its own prioritization.
10 Limitations
A requested Member shall not be required to:
(a) modify the format of its import or export declarations or procedures;
(b) call for documents other than those submitted with the import or export
declaration as specified in subparagraph 6.1(c);
(c) initiate enquiries to obtain the information;
(d) modify the period of retention of such information;
(e) introduce paper documentation where electronic format has already been
introduced;
(f) translate the information;
(g) verify the accuracy of the information; or
(h) provide information that would prejudice the legitimate commercial interests of
particular enterprises, public or private.
11 Unauthorized Use or Disclosure
11.1 In the event of any breach of the conditions of use or disclosure of information
exchanged under this Article, the requesting Member that received the information shall
promptly communicate the details of such unauthorized use or disclosure to the requested
Member that provided the information and:
(a) take necessary measures to remedy the breach;
(b) take necessary measures to prevent any future breach; and
(c) notify the requested Member of the measures taken under subparagraphs (a) and
(b).
11.2 The requested Member may suspend its obligations to the requesting Member
under this Article until the measures set out in paragraph 11.1 have been taken.
12 Bilateral and Regional Agreements
12.1 Nothing in this Article shall prevent a Member from entering into or
maintaining a bilateral, plurilateral, or regional agreement for sharing or exchange of
customs information and data, including on a secure and rapid basis such as on an
automatic basis or in advance of the arrival of the consignment.
12.2 Nothing in this Article shall be construed as altering or affecting a Member’s
rights or obligations under such bilateral, plurilateral, or regional agreements, or as
governing the exchange of customs information and data under such other agreements.
REFERENCES
1. Article 7.4: Risk Management - UNCTAD (2014). UNCTAD. Available at:
https://unctad.org/system/files/official-document/TN12_RiskManagement.pdf (Accessed:
December 10, 2022).
2. Article 11 - freedom of transit (2022) TFAD. Available at:
https://tfadatabase.org/en/tfa-text/article/11 (Accessed: December 10, 2022).
3. Category C Assistance Analysis (2022) TFAD. Available at:
https://www.tfadatabase.org/en/notifications/category-c (Accessed: December 10, 2022).
4. Chapter 8 Border Agency Cooperation - UNCTAD (no date). UNCTAD.
Available at: https://unctad.org/system/files/non-official-document/wto-technical-
note_ch08a08_en.pdf (Accessed: December 10, 2022).
5. Chapter 11 freedom of transit - unctad.org (no date). UNCTAD. Available at:
https://unctad.org/system/files/non-official-document/wto-technical-
note_ch11a11_en.pdf (Accessed: December 10, 2022).
6. Hong Kong Customs and Excise Department - Hong Kong Authorized Economic
Operator (AEO) programme (no date). Available at:
https://www.customs.gov.hk/en/service-enforcement-information/trade-facilitation/aeo/
index.html (Accessed: December 10, 2022).
7. Implementation progress by measure (2022) TFAD. Available at:
https://www.tfadatabase.org/en/implementation/progress-by-measure (Accessed:
December 10, 2022).
8. Map - progress on implementation commitments (2022) TFAD. Available at:
https://tfadatabase.org/en/implementation/progress/map (Accessed: December 10, 2022).
9. Progress on implementation commitments comparison tool (2022) TFAD.
Available at: https://tfadatabase.org/en/implementation/comparisons (Accessed:
December 10, 2022).
10. Single window: Article 10 - unctad.org (no date). UNCTAD. Available at:
https://unctad.org/system/files/non-official-document/wto-technical-note_ch10a10-
04_en.pdf (Accessed: December 10, 2022).
11. Single window repository - Colombia - V1 - 17-03-2010 - UNECE (2010).
Available at:
https://unece.org/fileadmin/DAM/cefact/single_window/sw_cases/Download/
Colombia.pdf (Accessed: December 10, 2022).
12. The Revised Kyoto Convention (no date). World Customs Organization. Available
at: https://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/conventions/
pf_revised_kyoto_conv.aspx (Accessed: December 10, 2022).
13. TN_ARTICLE_11 - UNECE (no date) Article 11: Freedom of Transit.
International Trade Center. Available at:
https://tfig.unece.org/contents/TN_Article_11.htm (Accessed: December 10, 2022).
14. Trade facilitation measures for authorized operators: Article 7.7 - UNCTAD (no
date). UNCTAD. Available at:
https://unctad.org/system/files/non-official-document/wto-technical-note_ch07a07-
07_en.pdf (Accessed: December 10, 2022).
15. Zambia aid for trade case story on the Chirundu One Stop Border Post - OECD
(no date). Available at: https://www.oecd.org/aidfortrade/47379298.pdf (Accessed:
December 10, 2022).
16. World Trade Organization (2015) https://www.wto.org/. rep. World Trade
Organization. Available at: https://www.wto.org/english/res_e/booksp_e/wtr15-2e_e.pdf
(Accessed: December 10, 2022).
17. World Trade Organization (2017) Agreement on Trade Facilitation, WTO.

Available at: https://www.wto.org/english/docs_e/legal_e/tfa-nov14_e.htm (Accessed:
December 10, 2022).

Group 8 Report Trade Facilitation

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Group 8 Report Trade Facilitation

Uploaded by

Copyright:

Available Formats

FOREIGN TRADE UNIVERSITY

SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

MID-TERM EXAMINATION REPORT

No Student name Student ID

1 Dương Tiến Đạt 2014530002

2 Nguyễn Khánh Linh 2011530024

3 Phạm Tiến Long 2014530007

4 Trần Hoàng Mai 2013530016

5 Nguyễn Tiến Mạnh 2013530017

6 Vũ Nguyễn Thu Trang 2012530047

Lecturer : M.A. Pham Thanh Ha

Hanoi, December 2022

Chapter 1: Overview of the articles

Section I contains the agreement’s general provisions for expediting the

Source: WTO Trade Facilitation Agreement, 2022

Article 7: Release and clearance of goods

 Measures related to the clearance of goods:

 Pre-arrival processing: Allowing pre-submission of documents or information in

 Trade Facilitation Measures for Authorized Operators: regulations on criteria

 Measures related to the release of goods:

 Separation of Release from Final Determination of Customs Duties, Taxes,

 Establishment and Publication of Average Release Times: establishing and

 Perishable Goods: Members will give priority to the clearance of perishable

Article 8: Border agency cooperation

Article 8, having 2 clauses, contains regulations on cooperation mechanisms

Article 9: Movement of goods intended for import under customs control

Article 10: Formalities connected with importation, exportation and transit

 Formalities and Documentation Requirements: Members shall ensure that

 Use of International Standards: Members shall use relevant international

 Pre-Shipment Inspection: Members shall not require pre-shipment inspection of

 Common Border Procedures and Uniform Documentation Requirements:

To sum up, Article 10 contains provisions on formalities connected with

2.2. Benefits of the Articles

Turning to the traders’ perspective, especially of those in developing countries,

2.3. Implementation status

Figure 2.1 Global Implementation Commitments (Art. 7-10)

An outstanding example in the implementation of Article 7.4 - Risk Management

UNCTAD recommends a strategy for implementing this item, with customs

Hong Kong is a prime example of worldwide best practices for authorized

To solve these circumstances, the implementation plans below must be

This issue is addressed through below recommendations, with the close

The creation of effective SW facilities in Colombia, Ghana, and Thailand serve as

Figure 3.4 Global implementation commitments (Art. 11)

Article 12 includes 12 clauses, covering aspects of regulating customs assistance:

 Measures Promoting Compliance and Cooperation: Encouraging voluntary

 Exchange of Information: Members are compiled to provide clarity of contact

 Protection and Confidentiality: Members are subject to protect the

 Provision of Information: The requested member will provide information (about

 Postponement or Refusal of a Request: Members hold the right to refuse and

 Reciprocity: Cases of refusal to provide, the obligations and responsibilities of the

 Administrative Burden: Information requesting has to take cost implications &

 Unauthorized Use or Disclosure: In case of breach of the conditions exchanged,

Overall, Article 12 dwells into regulations governing customs cooperation

4.2. Aims & Benefits

Article 12 aims to monitor confidentiality when exchanging information while

Customs cooperation is considered an improvement for businesses, which is the

4.3. Implementation status

Figure 4.6 General status of implementation (Art. 12)

Figure 4.9 Types of technical assistance requested by C category countries

4.4. Solutions & Recommendations

 Establishing National Trade Facilitation Committees as a priority to foster

 Creating enquiry points staffed with qualified personnel dedicated to providing

 Ensuring that all border management agencies employ a risk-based approach