WTO Trade Facilitation Agreement -

International Customs Perspective

The WCO’s Role

20 October 2015

WTO TFA current status

WCO Mercator Programme

WCO tools for harmonized implementation

WCO TFA Working Group

WCO Time Release Study

Contents

1

Intrudoction to the WCO

Introduction to the WCO

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An organization with global reach180* Members divided into 6 regions, responsible for processing 98% of international trade (* plus the European Union which, since July 2007, has rights akin to those of a WCO Member for matters falling within its competences as an interim measure.)

Strategic Plan

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Introduction to the WCO

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Standard Setting

Capability and responsibility for global standard setting for CustomsCapability and responsibility for global standard setting for Customs

Network of accredited experts from Customs AdministrationsCooperation with other international organizations and other agencies

Network of accredited experts from Customs AdministrationsCooperation with other international organizations and other agencies

Capacity Building / Technical Assistance delivery

Capacity Building / Technical Assistance delivery

What is the WCO?The WCO represents 180 Customs Administrations across the globe that collectively process approximately 98% of world trade.

3 Main Strengths of WCO 3 Main Strengths of WCO

What is the TFA?The WTO Trade Facilitation Agreement(TFA) contains 13 Articles regarding Trade Facilitation in Section I and special and differential (S&D) treatment for developing countries and Least-Developed Countries in Section II. It deals almost entirely with Customs-related topics but foresees cooperation with other agencies (CBM).

Section IArt.1 Publication and availability of informationArt.2 ConsultationArt.3 Advance rulingArt.4 Appeal/Review proceduresArt.5 Other measures for transparency etc.Art.6 Fee and ChargesArt.7 Release and Clearance of goodsArt.8 Border Agency CooperationArt.9 Movement of goods intended for importArt.10 FormalitiesArt.11 TransitArt.12 Customs cooperationArt.13 Institutional Arrangement

(TF Committee)

Section II Special and Differential Treatment

for Developing Countries and Least Developed Countries

oRules about Categories A, B and CoAssistance for Capacity BuildingoInformation to be submitted to the TF Committee

Section IIIEstablish a permanent committee on trade facilitation at the WTO, require members to

have a national committee to facilitate domestic coordination and implementation of

the provisions of the Agreement. 5

Road to WTO and WCO TFA commitments…

The WTO concluded the Trade Facilitation Agreement (TFA) at the Ministerial Conference.

The WCO adopted the Dublin Resolution to emphasize the WCO’s commitment to the efficient implementation of TFA at the Policy Commission.

December 2013

June 2014

The WCO adopted the Mercator Programme to ensure its strategic initiative to support Trade Facilitation.

November2014

The WTO adopted a Protocol of Amendment to insert the new Agreement into the WTO Agreement. (The TFA will enter into force once two-thirds of members have completed their domestic ratification process.)

December 2013

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December 2015

WTO 10th Ministerial Conference be held in Nairobi, Kenya and WCO Policy Commission taking place in Dominican Republic

Each Member must ratify Protocol of Amendment

Deposit Instrument of Acceptance

Agreement enters into force – 2/3 Members

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TFA - WT/L/931TFA with Protocol WT/L/ 940

Entry into Force

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Thus far…• Australia• New Zealand• EU• Nicaragua• Niger• Belize • Botswana• China• Switzerland• Chinese Taipei• Thailand• Trinidad and Tobago• Hong Kong, China • United States• Japan• Korea, Rep of• Lao DPR• Liechtenstein• Mauritius• Togowww.TFAfacility.org

Hoy many acceptances have been received?

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Category A: implemented by time Agreement enters into force

Category B: Entry into force + (X) time(indicative dates of implementation)

Category C: need extra time & TACB

(category notifications due at EIFone year later for LDCs)

SPECIAL AND DIFFERENTIAL TREATMENT

Entry into Force of TFA*

Notify A,B,C categories & indicative implementation dates for categories B &C

CAT B Notify definitive dates for implementation of Cat. B provisions

CAT C Member and Donor inform of TACB arrangements

CAT C 1. Progress in provision of TACB 2. Definitive dates for implementation

1 year 2.5 years 2 years

Figure 1: Developing Countries Notification for all categories of provisions

* Entry into force of TFA when 2/3 of Members ratify. Obligations for an individual country will only commence once this country completed its ratification process as well.

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Entry into Force of TFA*

CAT A-B-C Notify: A, B, C Categories CAT B LDCs may notify indicative implementation dates for category B

CAT C Notify technical assistance required for implementation of Cat. C provisions

CAT C Inform TF Committee of arrangements with donors & indicative dates for implementation for Cat. C provisions

1 year 2.5 years 2 years

Figure 2: LDCs Notification for all categories of provisions

* Entry into force of TFA when 2/3 of Members ratify. Obligations for an individual country will only commence once this country completed its ratification process as well.

1 year 2 years 3 years 4 years 5.5 years

CAT B Notify definitive dates of implementation for Cat. B provisions

CAT C Inform TF Committee on progress in provision of assistance and notify definitive dates

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Category A to date:1. Hong Kong China2. Mexico3. Costa Rica4. Korea5. Colombia6. Singapore7. Chinese Taipei 8. Paraguay9. China10. Nicaragua11. Mauritius12. Turkey13. Honduras14. Saudi Arabia15. Malaysia16. Kuwait17. Chile18. Qatar19. Thailand20. Peru

21. Uruguay22. El Salvador23. Brazil24. Mongolia25. Morocco26. Vietnam27. Tajikistan28. Dominican Republic29. Sri Lanka30. Israel31. Philippines32. Guatemala33. Ecuador34. Kyrgyz Republic35. Panama36. Indonesia37. Republic of Congo38. Cote d'Ivoire39. Ukraine40. Brunei Darussalam

41. Oman42. Albania43. Moldova44. Tunisia45. Jordan46. Montenegro47. Botswana48. Pakistan49. Senegal 50. Nigeria51. Macao, China52. Gabon53. Egypt54. Jamaica55. Rwanda56. Dominica57. St Vincent/Grenadines58. Burundi59. Kenya60. Tanzania61. United Arab Emirates 12

62. St. Kitts and Nevis63. Antigua & Barbuda64. Trinidad and Tobago65. St. Lucia66. Seychelles67. Barbados68. Belize69. Lao PDR70. Macedonia FYROM71. Grenada72. Uganda

Category A to date:

72 Category A notifications received

Regional Breakdown

Most notified articles

Least notified articles

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Cooperation with the WTO

The WCO and the WTO have a long standing history of cooperation, including WCO management of two important WTO agreements, on Customs Valuation and on Rules of Origin.

Supported the development of the WTO TFA Self- Assessment GuideHosted a well-attended training session on the Self-Assessment Guide for Customs administrations Active participation in WTO’s needs-assessments missions

WCO’s recent contribution to the WTO

20 January 2014, Geneva20 January 2014, Geneva

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Lead role at the border

Customs should take a leading role to implement the TFA as a central government agency at the border.

Coordinated Border Management

National Committee On Trade Facilitation

WTO TFAWTO TFA RKC ECP WCOActivities

Range of WCO ActivitiesWCO activities cover a wide range of Customs matters, including economic competitiveness, compliance and enforcement, revenue collection and organizational development.

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RKC -WCO Main Instrument to support TFA

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• The WCO Council adopted the revised Kyoto Convention in June 1999 as the blueprint for modern and efficient Customs procedures in the 21st century.

• Currently 103 Contracting Parties

• Was the basis for the TFA negotiations

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Revised Kyoto Convention

The WCO has developed a number of instruments and tools, which respond to Members’needs as regards TFA implementation. The WCO is continuing to develop and fine-tune an inter-active guidance tool designed to help Customs implement the TFA.

SAFE Framework of

StandardsTime Release Study Guide

Single WindowCompendium

Data Model GloballyNetworked Customs

Risk ManagementCompendium

Post Clearance Audit

Guidelines

Examples of WCO tools

Upcoming

Coordinated Border

ManagementCompendium

TransitHandbook

Customs/ Business

PartnershipGuidelines …

WCO tools to support TFA

CLiKC Project MapDatabase

Capacity BuildingDevelopmentCompendium

Example – Risk Management

The TFA obliges Members, to the extent possible, to adopt or maintain a risk management system for Customs control.

The RKC sets out principles of Customs risk management and the RKC Guidelines cover technical aspects of risk management and Customs control.

The Risk Management Compendium introduces detailed and technical information on risk management, based on practices and experiences of WCO Members.

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Mercator Programme

The WCO Mercator Programme was endorsed at the WCO Council in June 2014. The WCO Mercator Programme was endorsed at the WCO Council in June 2014.

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Mercator Programme – Key Objectives

Tailor-made technical assistance and capacity building

Harmonized implementation based on WCO’s global standards

Effective coordination among all stakeholders

Beneficial for developing and least developed countries, all government agencies, donor institutions and private sector

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WTO Agreement on Trade Facilitation:

Article 7.6

Members are encouraged to measure and publish their average release time of goods periodically and in a consistent manner, using tools such as, inter alia, the WCO Time Release Study.

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WCO Time Release Study

Shipping companyShipping agentPort Authority,

etc.

Customs,Bank,

Customsbroker

Port AuthorityContainer Yard

Warehouse,Forwarder,

etc.

Importer,Customs brokerContainer Yard

OGAs, etc.

Arrival of cargo

Unloading/Storage

Submission ofDeclaration

Customsrelease permission

Removal of cargo

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WCO Time Release Study

TRS Implementation by Members

Australia Bhutan Brunei Cambodia China Fiji India Indonesia Japan Korea

Angola Cote d’Ivoire Ethiopia KenyaMalawiMozambique Nigeria Rwanda Tanzania Swaziland Uganda Zambia Kenya - Uganda Tanzania - Burundi Tanzania - Rwanda

Jamaica Jordan Peru Poland Sweden Uzbekistan

Asia Pacific (20) Africa (12 + 3) Other (6)

Lao PDRMalaysiaMongoliaMyanmar New Zealand PNG Philippines Singapore Thailand Viet Nam

WCO Time Release Study

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Harmonized Implementation – Guidance

The WCO has launched on its website the WCO Implementation Guidance for the TFA to support WCO Members in their efforts to implement the TFA

http://www.wcoomd.org/en/topics/wco-implementing-the-wto-atf/atf.aspx

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The Guidance presents the relevance of WCO instruments and tools such as the Revised Kyoto Convention for TFA implementation.

• Revised Kyoto Convention• SAFE Framework of Standards• AEO Implementation Guidance• AEO Compendium • Model AEO Appeal Procedures• AEO Benefits: Contribution from the WCO

Private Sector Consultative Group• The Authorized Economic Operator and the

Small and Medium sized Enterprise (FAQ) • Mutual Recognition

Arrangement/Agreement Guidelines• AEO Template

WCO tools for Article 7.7 (Authorized Operators)

Harmonized Implementation – Guidance

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The Implementation Guidance introduces Members practices and experiences of implementing the TFA.

Members’ experience regarding Article 10.4 (Single Window)

Harmonized Implementation – Guidance

Effective Coordination - Working Group

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The TFAWG is the platform for Members to share experiences regarding the implementation of the TFA among the WCO’s 180 Members, coordinate with the donor community, engage with other international organizations and bodies, as well as with the private sector.

Message……….

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MORE INFORMATION

Procedures and Facilitation team of the WCOfacilitation@wcoomd.org).

The WCO is ready to support the implementation of the TFA!

Hector Landeros, WCO Capacity Building

Directorate.