Trade Facilitation Negotiations in the WTO State-of-Play UNCTAD Expert Meeting on Trade Facilitation Trade Facilitation Negotiations in the WTO State-of-Play Nora Neufeld, WTO 22 September 2005

Overview State-of-play Main proposals Road ahead

Part 1 State-of-play

8 meetings of the NG since its establishment in Sep. 04 1. State-of-play 8 meetings of the NG since its establishment in Sep. 04 Based on agreed Work Plan Member-driven, covering all elements of the mandate in a flexible way with no judgements on priority Participation of relevant international organizations on an ad hoc basis

1. State-of-play Work undertaken Educational and stocktaking process Contributions by Members and international organizations on Clarification/Improvement on GATT Art.V, VIII+X Technical assistance, capacity building Special and differential treatment Identification of TF needs and priorities Cost implications Cooperation Other

1. State-of-play Tools developed in support of the NG’s work (examples) TF negotiations Support Guide (World Bank, TN/TF/W/51) Needs assessment questionnaire and inventory (TN/TF/59) Other Other (previously existing) tools/instruments (examples) Time Release Study, Data Model; Revised Kyoto Convention etc. (WCO) ASYCUDA (UNCTAD) Other

1. State-of-play Other contributions by participating international organizations UNCTAD WCO World Bank OECD Other

1. State-of-play Special focus on TA and CB Dedicated sessions Special attention to Inventory Needs assessment Cooperation and coordination Other

1. State-of-play TA and CB projects WTO website on TA/CB Members International Organizations Other WTO website on TA/CB Coordination fora Global Facilitation Partnership (GFP) Inter-Agency meetings Other Funds World Bank, UNCTAD, Members, other

1. State-of-Play Progress Report to the TNC TN/TF/2 Agreement on meeting schedule for 2nd half of the year

Part 2 Main proposals

2. Main proposals Inputs by Members More than 50 submissions sponsored by more than 100 Members Sponsored by developed and developing countries alike, with even least-developed countries presenting written proposals (teaming up with developed ones) Art. VIII addresses fees and formalities conntected with importation and exportation; calling for - all fees and charges other than import and export duties and other than taxes within the purview of Art. III (internal taxes) must be limitet in amount to approximate cost of service rendered; must not represent an indirect protection to domestic products and not represent a taxation for fiscal purposes Furthermore, not impose substantial penalties for minor breaches of customs regulations or procedural requirements, esp. when result of mistakes easily rectifiable and not fraud or gross negligence; (upon request by another Member or by the relevant WTO Body, it reviews the operation of its laws and regulation in the light of the provisions of Article VIII) also "recognize", but undertake no explicit obligations with respect to: (i) the need to reduce the number and diversity of the fees and charges addressed by Article VIII; and (ii) the need to minimize the incidence and complexity of import and export formalities, and to decrease and simplify import and export documentation requirements.

2. Main proposals A. Possible improvements and clarifications of GATT Art. V, VIII + X Main objectives pursued Simplification + streamlining of procedures Enhanced transparency and predictability Art. VIII addresses fees and formalities conntected with importation and exportation; calling for - all fees and charges other than import and export duties and other than taxes within the purview of Art. III (internal taxes) must be limitet in amount to approximate cost of service rendered; must not represent an indirect protection to domestic products and not represent a taxation for fiscal purposes Furthermore, not impose substantial penalties for minor breaches of customs regulations or procedural requirements, esp. when result of mistakes easily rectifiable and not fraud or gross negligence; (upon request by another Member or by the relevant WTO Body, it reviews the operation of its laws and regulation in the light of the provisions of Article VIII) also "recognize", but undertake no explicit obligations with respect to: (i) the need to reduce the number and diversity of the fees and charges addressed by Article VIII; and (ii) the need to minimize the incidence and complexity of import and export formalities, and to decrease and simplify import and export documentation requirements. Faster clearance More efficient resource allocation Time and cost savings Enhanced trading opportunities

2. Main proposals Ideas on Questions/Answers S&D TA/CB Cost implications Identification of TF needs and priorities Art. VIII addresses fees and formalities conntected with importation and exportation; calling for - all fees and charges other than import and export duties and other than taxes within the purview of Art. III (internal taxes) must be limitet in amount to approximate cost of service rendered; must not represent an indirect protection to domestic products and not represent a taxation for fiscal purposes Furthermore, not impose substantial penalties for minor breaches of customs regulations or procedural requirements, esp. when result of mistakes easily rectifiable and not fraud or gross negligence; (upon request by another Member or by the relevant WTO Body, it reviews the operation of its laws and regulation in the light of the provisions of Article VIII) also "recognize", but undertake no explicit obligations with respect to: (i) the need to reduce the number and diversity of the fees and charges addressed by Article VIII; and (ii) the need to minimize the incidence and complexity of import and export formalities, and to decrease and simplify import and export documentation requirements. Inter-agency cooperation Other Questions/Answers

Areas covered (examples) 2. Main Proposals Areas covered (examples) Enhanced publication + availability of information Consultation and commenting mechanisms Strengthened appeal procedures and due process Enhanced impartiality and non-discrimination Measures related to import/export fees + charges (reduction, simplification, clarification) Measures related to import/export formalities (reduction, simplification, clarification) Border agency cooperation Expedited release and clearance of goods Transit matters Others

2. Main proposals B. Customs Cooperation Exchange and handling of information India – US Art. VIII addresses fees and formalities conntected with importation and exportation; calling for - all fees and charges other than import and export duties and other than taxes within the purview of Art. III (internal taxes) must be limitet in amount to approximate cost of service rendered; must not represent an indirect protection to domestic products and not represent a taxation for fiscal purposes Furthermore, not impose substantial penalties for minor breaches of customs regulations or procedural requirements, esp. when result of mistakes easily rectifiable and not fraud or gross negligence; (upon request by another Member or by the relevant WTO Body, it reviews the operation of its laws and regulation in the light of the provisions of Article VIII) also "recognize", but undertake no explicit obligations with respect to: (i) the need to reduce the number and diversity of the fees and charges addressed by Article VIII; and (ii) the need to minimize the incidence and complexity of import and export formalities, and to decrease and simplify import and export documentation requirements.

2. Main proposals C. Other Specific contributions on other elements (S&D, TA/CB, needs identification, costs, cooperation, linkages etc.) African Group Art. VIII addresses fees and formalities conntected with importation and exportation; calling for - all fees and charges other than import and export duties and other than taxes within the purview of Art. III (internal taxes) must be limitet in amount to approximate cost of service rendered; must not represent an indirect protection to domestic products and not represent a taxation for fiscal purposes Furthermore, not impose substantial penalties for minor breaches of customs regulations or procedural requirements, esp. when result of mistakes easily rectifiable and not fraud or gross negligence; (upon request by another Member or by the relevant WTO Body, it reviews the operation of its laws and regulation in the light of the provisions of Article VIII) also "recognize", but undertake no explicit obligations with respect to: (i) the need to reduce the number and diversity of the fees and charges addressed by Article VIII; and (ii) the need to minimize the incidence and complexity of import and export formalities, and to decrease and simplify import and export documentation requirements. China - Pakistan Latin American Group Pakistan - Switzerland Other

Part 3 Road ahead

3. Road ahead Next meeting of the NG Other meetings before Hong Kong 5-6 October Other meetings before Hong Kong 8-9 November 21 November

3. Road ahead Focus and structure of meetings Mixture of formals and informals Areas to be covered Work to be done

3. Road ahead Compilation (TN/TF/W/43.Rev.2) regularly updated to reflect new input Living (working) document

3. Road ahead Report to the 6th Ministerial Conference Preparatory work

3. Road ahead Consultation process

3. Road ahead Milestone Hong Kong Goal?