1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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