TFA Substantive Provisions

Thailand - National and Sub-regional Workshops on the WTO Trade Facilitation AgreementBangkok, 26-27 September 2016

Udonthani, 28-29 September 2016

What is being addressed in the TFA provisions…

Before the border

Accurate information difficult to find

Publication

Information Available

on Internet and

enquiry point(s)

Advance rulings

TFA SolutionsIssues

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At the border

Inefficient border-crossing procedures

Pre-arrival processing

Risk management

Post Clearance Audit

Separation of release from final

determination

Authorized operators

Electronic Processing

Single window

Electronic payment

Border agency cooperation

Customs-to-Customs Information

TFA SolutionsIssues

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• Poor infrastructure• Roads• Customs facilities• Information technology

• Administrative barriers• Lack of cross-border coordination • Fees/charges• Internal roadblocks• Excessive document requirements and controls • High transit guarantee amounts/delayed reimbursement

In Transit

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The TFA solutions Traffic in transit:– Addressed in the less trade-restrictive manner

– Not conditioned to fees or charges (except fortransportation and commensurate with administrativeexpenses)

– Formalities, documentation, customs controls not moreburdensome than necessary; advance filing andprocessing

– Technical regulations and CAPs shall not apply

– Comprehensive guarantees and deposits instruments;limited to ensuring the requirements and dischargedwithout delay

– Customs convoys or escorts limited to cases presentinghigh risks

– Whenever possible separate infrastructure6

Article 1: Publication & Availability of Information

1. Publication

2. Information available through Internet

3. Enquiry Points

4. Notification

Article 2:Comments and consultation

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Article 3: Advance Rulings

What is it?

On what?

When?

Other ?

A written decision provided by a Member to an applicant prior to the importation of a good.

Mandatory for tariff classification and origin (Art.3.9). Encouraged for customs value.

To be delivered in a reasonable, time bound manner

Binding on that Member in respect of the applicant that sought it, unless changes in the laws, facts, circumstances

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Article 4: Procedures for Appeal and review

What is it?

When?

Other ?

Right to an administrative or judicial appeal orreview of the administrative decisions issued bycustoms (encouragement to extend thisprovision to any decision issued by a relevantborder agency other than customs)

Within a specified time in the laws andregulations

The reason for the administrative decision hasto be provided

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Article 5: measures to enhance impartiality, non-discrimination and transparency

What is it?

On what?

Other ?

Members may issue notification/guidance based forthe control /inspection at the border based on riskand only to those points of entry where SPSconditions apply.

On foods, beverages

▫ When a Member decides to terminate anotification/guidance it shall, as appropriate,promptly publish that information.

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Article 5: measures to enhance impartiality, non-discrimination and transparency

Other ?

What else?

Detention: promptly inform the carrier or importer incase of detention of goods for inspection by customsor any other competent authority

▫ Upon request a Member may grant anopportunity for a second test (if the first test ofthe sample shows an adverse finding)

▫ Publish the name of the laboratory for the 2ndtest and consider the results

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Article 6FEES and CHARGES:

• Prompt publication and information offees and charges (other thanimport/export duties and other taxes)

• Allow sufficient time between publicationand entry into force

• Periodic revision

• Commensurate with the service rendered

PENALTIES:

Imposed only to the responsible of thebreach and commensurate to the breach

Provide the reason 12

Article 7: Release & clearance of goods (1)

1. Pre-arrival processing

2. Electronic payment

3. Separation of release from

final determination

4. Risk

Management

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5. Post-

clearenceaudit

6. Average

release time

7. Trade

Facilitation Measures for

Authorized Operators

8. Expedited Shipments

9. Perishable

Goods

Article 7: Release & clearance of goods (2)

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Article 7.1: Pre-arrival Processing

Members shall allow traders to submit the import

documentation (and other information required) in

order to begin processing prior to arrival of goods with

a view to expediting clearance

Members shall, as appropriate, provide for advance

lodging of import documentation in electronic format

for pre-arrival processing.

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Article 7.2: Electronic payment

To the extent practicable,

Members should allow electronic

payment of duties, taxes, fees

and charges collected by

Customs (during import &

export)

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Article 7.3:Separation of release from final determination of customs duties, taxes, fees and charges

Members shall adopt or maintain procedures for the

release of goods, prior to the final determination of all

payments due.

Guarantees or other kind of instruments shall be

accepted and shall be commensurate with the customs

duties, taxes, fees and charges to which the goods may

be liable

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Article 7.4: Risk Management

• Members shall, to the extent possible, apply risk management systems for customs control.

• Such system shall avoid arbitrary discrimination and shall focus on high risk consignments and expedite low risk consignments, while avoiding arbitrary discrimination

• Members shall use appropriate selectivity criteria in applying risk management (HS code, value, nature of goods etc.)

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Article 7.5: Post-clearance audit

• To ensure compliance with customs and with aview to expediting the release of goods,Members shall use post-clearance audit.– Post-clearance audits shall be transparent and the

persons subject to audit shall be notified withinformation about results, which may be used infurther administrative or judicial proceedings, andto inform risk management.

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Article 7.6: Publication of average release times

• Members are encouraged to measure and publish, on a periodic and consistent manner, the average time it takes to release goods

• Members are encouraged to share their experience in carrying out these measurements with the WTO Trade Facilitation Committee

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Article 7.7: TF Measures for Authorized Operators

• Members shall provide additional TF measures, to operatorswho meet specified criteria (record of compliance, financialsolvency, supply chain security, etc.), such as:– Less documentation requirements– Less physical inspection– Deferred payment of duties, taxes, fees and charges etc.– Use of comprehensive guarantee– Single customs declaration for a certain period

• Members shall publish the qualification criteria and areencouraged to base authorized trader schemes on internationalstandards 21

Article 7.8: Expedited Shipments

• Members shall establish special facilitative procedures (lessdocumentation and single submission for the release -ofcertain shipments, rapid release after arrival, etc.) to allowexpedited release of at least those goods entered through aircargo facilities

• Members may permit only those persons or firms who fulfil thecriteria listed in § 8.1 to apply for expedited release treatment

▫ Criteria for application for expedited release treatment shallbe published

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Article 7.9: Perishable goods

• Members shall adopt or maintainprocedures for the importation of perishablegoods that:– allow release within shortest possible time– provide for release, where appropriate, outside

Customs normal business hours– limit controls to the minimum necessary to

ensure compliance23

Articles 8: Border Agency Cooperation

Encourage all border authorities & agencies to cooperate:

• Alignment of: working days and hours, procedures, and formalities

• Development and sharing of common facilities

• Joint controls

• Establishment of one stop border post control

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Article 9: Movement of goods under customs control intended for import

Members shall allow, to the extend practicable, goods intended for import to be moved within its territory under customs control from a customs office of entry to another customs office in its territory from where the goods would be release or cleared.

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Article 10: Formalities, procedures and documentation

1. Formalities and documentation Requirements

2. Acceptance of Copies3. Use of International Standards4. Single Window5. Pre-shipment Inspection6. Use of Customs Brokers7. Common Border Procedures and Uniform

Documentation Requirements8. Rejected Goods9. Temporary Admission of Goods/Inward and

Outward Processing

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Art 10.1 Formalities and Documentation Requirements

• Members shall periodically review formalitiesand documentation requirements with a viewto minimizing or simplifying them.

• Members shall ensure, as appropriate, thatsuch requirements are aimed at reducing timeand cost.

Art 10.2 Acceptance of copies

• Border agencies shall endeavour to acceptcopies of supporting documents that may berequired for import, export or transitformalities.

• If the original document has been provided toone government authority, other governmentauthorities shall accept a copy authenticatedby the agency holding the original.

Art 10.3 Use of International Standards

• Members are encouraged to use relevantinternational standards as a basis for theirimportation, exportation or transit formalitiesand procedures

Art 10.4 Single-Window

• Members shall endeavour to establish aSingle Window to which traders can submit alldocuments and/or data required by customsand all other border or licensing authoritiesfor the import, export or transit of goods.– Results shall be notified to applicants through this

same system.

Art 10.5 Pre-Arrival Inspection

• “Members shall not require the use of pre-shipment inspections in relation to tariffclassification and customs valuation.”

• Members are encouraged not to introducenew requirements for the use of pre-shipmentinspection for other areas

Art 10.6 Use of Customs Brokers

• From the entry into force of this agreementMembers shall not introduce the mandatoryuse of customs brokers.

• Members already using that system shallnotify and publish its measures on the use ofcustoms brokers.

Art 10.6 Use of Customs Brokers

• From the entry into force of this agreementMembers shall not introduce the mandatoryuse of customs brokers.

• Members already using that system shallnotify and publish its measures on the use ofcustoms brokers.

Art 10.7 Common Border Procedures and Uniform Documentation Requirements

• Customs shall apply uniform documentationrequirements and uniform release andclearance procedures - including standards forinspection, testing, and sampling of goods - ateach point of entry or exit where conditionsare the same

Art 10.8 Rejected Goods

• The importer shall, consistent with aMember’s laws and regulations, have the rightto return to the exporter imported goods thathave been rejected by competent authoritiesdue to failure to comply with prescribedSanitary and Phytosanitary or technicalregulations

Art 10.9 Temporary Admission of Goods/ Inward and Outward Processing

• Members shall, as provided for in its laws andregulations, adopt customs procedures for thetemporary admission, inward processing andoutward processing of goods.– Example: total or partial exemption from duties

and taxes

Article 10: Freedom of Transit– Addressed in the less trade-restrictive manner

– Not conditioned to fees or charges (except fortransportation and commensurate with administrativeexpenses)

– Formalities, documentation, customs controls not moreburdensome than necessary; advance filing andprocessing

– Technical regulations and CAPs shall not apply

– Comprehensive guarantees and deposits instruments;limited to ensuring the requirements and dischargedwithout delay

– Customs convoys or escorts limited to cases presentinghigh risks

– Whenever possible separate infrastructure37

Article 12: Customs Cooperation

1. Measures promoting compliance and cooperation

2. Exchange of info.3. Verification4. Request5. Confidentiality6. Requests / refusals /

reciprocity / limitations7. Unauthorized use8. Bilateral / regional

agreements38

Thank you!

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