Trade Facilitation

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Trade Facilitation
Nisha Taneja
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Plan of the Presentation

• Key recommendations based on proposals made by
  Members following the Doha mandate
• Key features of the July Package
• Implications for India

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Summary of Proposals and Recommendations Article
X
Proposal Recommendation
1. Advance Rulings Scope of existing regime limited/Accept
2. Use of Electronic media In existence/Accept
3. Enquiry points Accept
4. Consultative mechanism Already recommended/Accept
5. Appeal Existing in Customs/Accept for DGFT
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Summary of Proposals and Recommendations Article
VIII
Proposal Recommendation
1. Levy of fees and charges Proposal envisages codification of existing interpretation/Accept
2. Injecting GATT Principles -
Non-discrimination, transparency and predictability Accept
Least trade restrictiveness Accept
3. Provisions to reduce documentation procedures -
Single administrative data set Accept on best endeavour basis
One time presentation to single agency Accept on best endeavour basis
Adoption of a uniform domestic customs code Existing
Risk assessment methods Accept on best endeavour basis
Automation Accept on best endeavour basis
4. Standard processing times Accept on best endeavour basis
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Summary of Proposals Article V
Proposal Comment
Simplification of procedures Accept on best endeavour basis
Additional inspection for sensitive items Accept
Additional inspection for goods requiring trans-shipment Accept
Publication of list of sensitive items Accept
Regional transit arrangements In existence with Nepal/ Accept for other countries
International standards Accept on best endeavour basis
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The Singapore Issues

• In the July package it was decided to drop the
  other three Singapore issues and start
  negotiation for an Agreement in Trade
  Facilitation. The modalities were given in Annex
  D of the July package

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Annex D

• Para 1
• Negotiations shall aim to clarify and improve
  relevant aspects of Articles V, VIII and X.
• Negotiations shall also aim at enhancing
  technical assistance and support for capacity
  building.
• The negotiations should take into account
  effective cooperation between customs and any
  other appropriate authorities.

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Para 2

• The negotiations shall take fully into account
  the principle of special and differential
  treatment.
• Members recognize that this principle should
  extend beyond the granting of traditional
  transition periods.
• In particular, the extent and the timing of
  entering into commitments shall be related to the
  implementation capacities of developing and
  least-developed Members and these Members would
  not be obliged to undertake investments in
  infrastructure projects beyond their means.

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Para 3

• Least-developed country Members will only be
  required to undertake commitments to the extent
  consistent with their individual development and
  capabilities

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Para 4

• Members shall seek to identify their trade
  facilitation needs and priorities, particularly
  those of developing and least-developed
  countries, and shall also address the concerns of
  developing and least-developed countries related
  to cost implications of proposed measures.

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Paras 5 and 6

• The modalities recognize that the provision of
  technical assistance and support for capacity
  building is vital for developing and
  least-developed countries to enable them benefit
  from the negotiations. Members, in particular
  developed countries, therefore commit themselves
  to adequately ensure support and assistance for
  capacity building and implementation of
  commitments resulting from the negotiations

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Key Concern

• The Agreement on modalities makes no reference to
  the applicability or otherwise of WTOs Dispute
  Settlement Procedure

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Other Concerns

• What if the Negotiating Group on TF takes as long
  as the Negotiating Group on ROO which has not
  reached a consensus in 10 long years?
• India will still have to continue with its TF
  efforts because even though it is important to
  reduce transaction costs what will determine a
  countrys competitiveness is the speed at which
  transaction costs are reduced compared to other
  countries (assuming that other things are equal)

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Thank You!