WCO Knowledge Academy Brussels 18 June 2015 Advance Rulings WCO Knowledge Academy Brussels 18 June 2015 Mette Werdelin Azzam Technical Officer Origin Sub-Directorate World Customs Organization Mette.azzam@wcoomd.org

Copyright © 2015 World Customs Organization Advance Rulings What is advance ruling? A written decision on the classification, origin, valuation etc. of the good issued by Customs to the applicant prior to an import or export transaction. Copyright © 2015 World Customs Organization

Advance Rulings Key objective Provide decisions on the classification, origin and valuation of commodities prior to their importation or exportation. For Private Sector : Adding certainty and predictabilities to international trade; and Helping traders to make informed business decisions based on legally binding ruling. For Customs administrations : Also benefit from having advance knowledge of future importations which is useful for risk management purposes. 4. The key objective of pre-entry advance ruling programmes is to provide decisions on the classification, origin and valuation of commodities prior to their importation or exportation, thus adding certainty and predictability to international trade and helping traders to make informed business decisions based on legally binding rulings. Customs administrations also benefit from having advance knowledge of future importations which is useful for risk management purposes. Both Traders and Customs Benefit from Advance Ruling Traders & Customs <= Adding certainty and predictabilities to international trade; (Reduce time at the entry) (Uniform interpretation and application) Traders <= (Also benefit from) Helping traders to make informed business decisions based on legally binding ruling. Customs <= Also benefit from having advance knowledge of future importations which is useful for risk management purposes. (Allocate its resource to high risk cargos.) Both Traders and Customs Benefit from Advance Ruling Copyright © 2015 World Customs Organization

Revised Kyoto Convention Reference Revised Kyoto Convention General Annex - Chapter 9 (Information, Decisions and Rulings Supplied by Customs) Binding rulings 9.9. Standard The Customs shall issue binding rulings at the request of the interested person, provided that the Customs have all the information they deem necessary. Guidelines on: Sampling of goods Notification of binding rulings Time-limits for validity of rulings Use of binding rulings Annulment of binding rulings Copyright © 2015 World Customs Organization

Workshop HS 2012 Implementation and Tariff Management Hanoi, 15 – 17 May 2013 Existing WCO Tools Promote Trade Facilitation and Uniform Interpretation and Application Classification Recommendation on the Introduction of Programmes for Binding Pre-entry Classification Information (1996) Recommendation on the improvement of Tariff Classification Work and Related Infrastructure (1998) Origin Technical Guidelines on Binding Origin Information (2011) 1. Recognizing the need to promote trade facilitation and uniform interpretation and application of the Harmonized System, Rules of Origin and the WTO Valuation Agreement, the WCO has provided various tools for Member administrations to assist the work of Customs, including Guidelines and Recommendations on advance rulings.   2. The current tools are, in the case of classification, the Council Recommendation on the Introduction of Programmes for Binding Pre-entry Classification Information (1996) and a comprehensive Recommendation on the Improvement of Tariff Classification Work and Related Infrastructure (1998); in the case of valuation, the Practical Guidelines for Valuation Control (2012); and, in the case of origin, Technical Guidelines on Binding Origin Information (2011). Additionally, the Agreement on Rules of Origin sets ground rules for assessments of origin, which apply to advance rulings and are referred to in these Guidelines. Valuation Practical Guidelines for Valuation Control (2012) Copyright © 2015 World Customs Organization Copyright © 2013 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to copyright@wcoomd.org

Agreement on Trade Facilitation (TFA) WTO Ministerial Meeting, Bali, December 2013 Objectives: Further expediting the movement, release and clearance of goods etc. Article 3 : Advance rulings for Classification, Origin, Valuation etc. Provisions on application, issuance, modification, review, publication etc. on advance rulings Copyright © 2015 World Customs Organization

Agreement on Trade Facilitation (TFA) WCO’s work Technical Guidelines 15. If the issuance of an advance ruling on classification, origin or valuation is declined or postponed, the competent authority shall promptly notify the applicant in writing, setting out the relevant facts and the basis for its decision. Copyright © 2015 World Customs Organization

Technical Guidelines on Advance Rulings WCO tools on advance rulings Existing tools Classification Harmonize and modernize, Article 3 of TFA Technical Guidelines Origin Single document covering the three areas Valuation Copyright © 2015 World Customs Organization

Technical Guidelines on Advance Rulings Provide details for practical implementation on the three areas, such as: Application for Advance Rulings Issuance of Advance Rulings Effect of Advance Rulings Modification and Revocation of Advance Rulings Review and Appeal Publication and Confidentiality Appendix : Application form (Classification and Origin) Copyright © 2015 World Customs Organization

Technical Guidelines on Advance Rulings -Ensure consistency with TFA- Subject TFA text Draft text of Technical Guidelines Time to issue rulings Reasonable, time bound manner In the case of origin, as soon as possible but no later than 150 days Validity period For a reasonable period of time For at least one year In the case of origin, for three years Publication of requirements The requirements for application shall be published Notice of declination to issue Member shall promptly notify the applicant in writing The competent authority shall promptly notify the applicant in writing Notice of revocation, modification or invalidation Member shall provide written notice The person to whom the advance ruling was issued shall be notified in writing Copyright © 2015 World Customs Organization

Technical Guidelines on Advance Rulings Presented to the respective Committees before adoption at June 2015 Policy Commission and Council Origin : TCRO (February 2015) Classification : HSC (March 2015) Valuation : TCCV (May 2015) The new guidelines replace the existing instruments developed in the three areas Copyright © 2015 World Customs Organization