Title: Technical Aspects of GATT Articles V, VIII and X and the UNECE Trade Facilitation Instruments UNECEU
1Technical Aspects of GATT Articles V, VIII and X
and the UNECE Trade Facilitation Instruments
UNECE-UNESCAP Capacity Building Workshop on
Trade Facilitation Implementation for Asia and
the Pacific Region17 18 March 2005, Kuala
LumpurMs Maria Misovicova, UNECE, Trade
Division
2Content
- Technical and Legal Aspects of Articles V, VIII
and X of the GATT 1994 - UNECE/ UN/CEFACT Instruments available for
implementation - Capacity Building and Technical Assistance
3Current Environment
- Business needs (global supply chains) demanding
speedy, secure and simplified procedures - Trade Facilitation as a Policy issue, currently
determined by - Increased role in Trade/Economic Development
- TF in WTO (GATT Articles V, VIII X)
- Regional Initiatives (APEC Strategy, ASEAN Single
Window Initiative) - TF and Security
4WTO Trade Facilitation Negotiations
- OBJECTIVES
- shall aim to clarify and improve relevant
aspects of Articles V, VIII and X of the GATT
1994 with a view to further expediting the
movement, release and clearance of goods,
including goods in transit (July Package, Annex
D) - Recognizing Special and Differential Treatment
(SDT) for developing countries and LDCs - Entering into commitments related to their
implementation capacities (CB and TA, investment
in infrastructures...) - Beyond traditional SDT (pure exemptions,
transition periods, differentiated
non-reciprocity)
5WTO Core Principles
- Most-favoured Nation (MFN) Treatment
(non-discrimination, Art. I of the GATT1994) - National Treatment (Art. III)
- Transparency (Art. X)
6WTO vs. UNECE different but complementary
approaches
WTO doing the WHAT of the international
trade Legally binding rules to be observed by
the countries, while respecting SDT
UNECE/ UN/CEFACT doing the" HOW of trade
facilitation delivering the solutions for
supply chain to facilitate international trade
and business processes (Trade and transport
facilitation conventions, standards,
recommendations, best practices and other
tools...)
7Article V obligations
- Article V of the GATT imposes obligations
regarding traffic in transit - The basic objective is to allow for freedom
of transit through a country (paragraphs 2, 3, 4) - Article V also imposes a non-discrimination
requirement (MFN) (paragraphs 2,5,6)
8Freedom of Transit
- There is freedom of transit (through the most
convenient route) for goods from one WTO member
to another WTO member (para.2) - There is a broad duty to prevent unnecessary
delays or restrictions(para.3) - Charges and regulations imposed must be
reasonable (para.4) - Traffic in transit is exempt from customs duties,
a member can only impose charges commensurate
with the expenses incurred (para. 3)
9Non-discriminatory Treatment (MFN)
- In respect of all charges, regulations and
formalities in connection with transit there is
an MFN requirement (para.3) - No distinction can be made based on between
traffic in transit on grounds of the ownership of
the means of transport/goods, the
origin/destination of the traffic etc. (para.2) - Directly transported goods and goods which are
transported via a third country should be treated
equally by the receiving country (para. 6)
10Some issues raised on Article V (2002)
- Reduction, simplification and harmonization of
documentary and data requirements, and procedures
for transit, including risk assessment and
limitation of physical inspection (CAN, EC KOR) - Use of existing multilateral, regional and
bilateral transit instruments or arrangements
(CAN, EC) - Note
- Great Importance for land-locked countries
11Article V UNECE Instruments available
- TIR Convention (Transport Internationaux
Routiers) - Multimodal
- Goods carried under the TIR procedure in approved
and sealed road vehicles, combination of vehicles
or containers is not subject to Customs
examination, unless irregularities are suspected - Reduces regular requirements of national transit
procedures and physical inspections in transit
countries - Using a single standardized document Carnet
12Article VIII obligations
- Imposes an obligation on a WTO Member to limit
the fees and charges being charged in connection
with importation/exportation to the level of the
approximate cost of the services rendered by it
(paras. 1(a),4) AND recognizes the need to reduce
them as to the number and diversity - Requires WTO members not to impose substantial
penalties for minor breaches of customs
regulations or procedural requirements (para. 3) - Recognizes the need to reduce the incidence and
complexity of import and export related
formalities and documentary requirements (paras.
1(b), 1(c))
13Fees and Charges
- Requirement to limit the fees and charges to the
approximate cost of the service rendered - Applies to fees and charges connected with
importation and exportation, with the exception
of - (i) import and export duties
- (ii) internal taxes applied at the border
- Therefore Article VIII applies to a residual
category of fees and charges connected with
importation or exportation, such as inspection
fees (SPS), licensing fees etc. - The charge does not represent indirect protection
to domestic products or taxation for fiscal
purposes
14Complexity of import and export formalities
- The best-endeavour statements (paras. 1(b) and
1(c)) - These provisions recognise the need to
- minimise the incidence and complexity of import
and export formalities - decrease and simplify documentation requirements
- reduce the number and diversity of fees and
charges imposed in connection with importation - However, there is no legally binding commitment
under these provisions, accordingly WTO Members
retain their policy autonomy in this regard, but
at the end of negotiations there might be some
obligations
15Some issues raised on Article VIII (2002)
- Simplifying border-related documentation and
increasing compatibility/ standardizing data
required for release of merchandise by using
existing international standards where
appropriate and developing common data sets to be
requested in the process of clearance (CAN, HKG,
EC) - Reducing excessive documentation and data
requirements (COL, EC) - Establishing a Single Agency for trade documents
and data (COL, EC, JAP) - Automation and use of ICT (COL, JAP, EC)
- Advance information (CAN, EC, JAP, KOR)
16Article VIII UNECE Instruments available
- United Nations Layout Key for Trade Documents
(UNLK/ ISO 6422), Codes UN/LOCODE, Currency,
Modes of Transport, ISO Country Code... - Recommendation and Guidelines on establishing a
Single Window (UN/CEFACT Recommendation 33) - UN/CEFACT Recommendations 4 (TF Pro Committees)
and 18 (Facilitation Measures related to Intl
Trade Procedures) - UN/EDIFACT, UN Trade Data Element Directory
(UNTDED), UNeDocs - New Benchmarking Guide, Single Window
Repository, to be available in 2005
17Article X obligations
- Imposes obligations regarding
- Transparency/ publication requirement (para 1, 2)
- Impartiality in administration of laws,
regulations and administrative rulings of general
application (para 3)
18Transparency obligations
- There is a duty to promptly publish
- laws, regulations, judicial decisions and
administrative rulings of general application - Regarding
- the classification or the valuation of products
for customs purposes - rates of duty, taxes or other charges
- requirements, restrictions or prohibitions on
imports or exports or on the transfer of payments
therefor, or affecting their sale, distribution,
transportation, insurance, warehousing
19Some issues raised on Article X (2005)
- WHEN to publish
- Currently to publish before starting applying
certain measures and regulations - Proposal a prior publication of the proposed
measures and regulations to allow other WTO
Members to comment on proposed the measures - HOW to publish
- Currently no obligation to publish by particular
means - Proposal to make information available through
Internet and to establish Single Entry Points for
information - Appeal Procedure
- Currently having guaranteed an appeal for any
customs determination - Proposal asking for interim measures during the
appeal so that you do not collect any duties
during that time - Note Implications of the proposed measures
(developing countries)
20Article X UNECE Instruments available
- UN/CEFACT Recommendations 4 (TF Pro Committees)
- Recommendation and Guidelines on establishing a
Single Window (UN/CEFACT Recommendation 33)
21SUMMARY OF UNECE and UN/CEFACT TRADE
FACILITATION TOOLS
- Article V
- Transport and Transit Facilitation Instruments
(TIR Convention, Harmonization Convention...) - Article VIII
- Standards and tools for trade documents (UNLK,
UNTDED, UNeDocs) - Simplification and harmonization of trade
procedures (Recommendation 33 - Single Window,
Recommendation 4 - TF Pro Organizations,
Recommendation 18 -Trade Facilitation Processes) - Codes for International Trade (UN/LOCODE, Country
Codes, Currency Code...) - Automation and e-business instruments
(UN/EDIFACT, UNeDocs, UNTDED...) - Article X
- Single Entry Information Point Single Window
Recommendation
22Implementation
- Capacity Building and Cooperation
- African Group (March 2005)
- Asia and the Pacific Region (March 2005)
- Other 13 regional workshops organized jointly
with other 4 UN Regional Commissions under the TF
Inter-regional Project (2005-2006) - Global Facilitation Partnership (GFP) World
Bank, UNCTAD, WCO... - WTO
23Total intl organizations focus
WTO
WCO
ICC
UN/CEFACT
UNCTAD
ITC
AFACT
ISO
24Follow-up
- All UNECE Recommendations, codes, standards and
publications are available for free on our
website at - www.unece.org/trade
- www.unece.org/cefact/
- www.unece.org/etrades/unedocs/
25THANK YOU !!! maria.misovicova_at_unece.org