Core obligation. This measure aims at facilitating access to and dissemination of trade-related information in a cost- effective and easily accessible manner. Pursuant to Article 1.2 of the TFA, WTO Members have the obligation to make available through the Internet information and forms related to import, export and transit procedures, among other (see Scope of Information section below). Consequently, governments shall ensure that the covered information is uploaded and readily available to any traders, government or other interested party. As procedures and requirements may change over time, Article 1.2 also requests WTO Members to update their website(s) in order to provide the most accurate information to relevant stakeholders. Nonetheless, the obligation to update was to some extent neutralized by adding the terms “to the extent possible” and “as appropriate”. In other words, both terms bring some degree of flexibility in the compliance of the obligation to update. The term “to the extent possible” requires that WTO Members undertake serious efforts to update the information available on the Internet (Panel reports, EEC - Restrictions on Imports of Apples from Chile). In case of incompliance, the concerned WTO Member will need to prove that, in spite of its efforts, it was impossible to comply with it, taken into account the relevant circumstances on a case-by-case basis. While the use of the term “as appropriate” might induce a certain level of flexibility in meeting the update requirement, WTO Members remain obliged to comply with this requirement. According to WTO Panels “[t]he word appropriate, in its general dictionary sense, means especially suitable, proper. This suggests that “appropriate measures” are those that are suitable for achieving their purpose” (Panel reports in, Mexico-Telecom, EC-Tube or Pipe Fittings, US-Clove Cigarettes). Therefore, the term “as appropriate” leaves to WTO Members the choice regarding the suitable method to update the information on the Internet. Pursuant to Article 1.2 of the TFA, WTO Members are obliged to upload into the Internet at least the following information:
Core obligation. This measure requires Members to allow imported goods under customs control to be transported from the entry point to another customs office located within its territory, where the goods will be ultimately cleared. Transporting goods under customs control means that the goods are in the safe custody of customs staff, with appropriate controls including the customs seal and security, and they are not handed over to business before they reach the dry port. The use of the verb ‘shall’ suggests that the implementation of this provision is mandatory for Members. However, the addition of the qualifying words ‘to the extent practicable’ and ‘provided all regulatory requirements are met’ gives Members some room for flexibility. The TFA remains silent on whether additional fees and charges could be imposed on movement of goods under customs control. Moreover, the measure does not include any provision regarding facilities to trans- ship cargoes.
Core obligation. This measure requires Members to adopt or maintain procedures to allow the expedited release of at least goods entered through air cargo for those persons who apply for such treatment, while maintaining customs control. The obligation is limited to goods entered through air cargo facilities. However, Members may extend the measure to cargo imported through land or sea. With the use of the word ‘may’ the measure opens up the possibility for Members to require applicants to meet certain conditions (published criteria). Paragraph 8.2 lists the procedures that Members must set up for the processing of expedited shipments. In particular, Members are required to: • Minimize the documentation required for the release of expedited shipments and – to the extent possible – enable the release of goods based on a single submission of information on certain shipments; • Release the expedited shipments as quickly as possible after arrival, conditional upon the prior submission of information required for release; • Make efforts to minimize documentation and quickly release shipments of any weight or value; • Provide – to the extent possible – for a de minimis shipment value or dutiable amount for which customs duties and taxes will not be collected.
Core obligation. The measure requests WTO Members to quickly notify the importer or carrier when customs or other border agencies, such as the sanitary and veterinary authority, are detaining imported goods for inspection or further investigation.
Core obligation. Each WTO Member is compelled to establish or maintain at least one enquiry point at national level. Unlike the SPS and TBT Agreements in which each member shall ensure the establishment of an enquiry point; the WTO TFA tempered the enforcement of this obligation by adding the phrase "within its available resources". In other words, the extent of the implementation would depend on the available financial, human, technical or technological resources of the concerned WTO Member. The measure aims at enhancing transparency and predictability through the fluent flows of information among WTO Members and relevant stakeholders. The objective is to provide easily accessible, precise and complete information in a timely and cost effective way. This measure also enhances compliance by preventing misunderstanding and solving doubts prior to the transactions (UNCTAD, 2011).
Core obligation. This measure aims to ensure movement of traffic in transit through the application of rules, regulations and processes in a non trade-restrictive manner, eliminating all unnecessary regulations and formalities, prohibiting any voluntary restraints to traffic in transit and securing a non-discriminatory treatment of goods in transit. Paragraph 1 requires Members to examine their traffic in transit formalities and regulations to determine if they have out-lived their purpose or if less trade-restrictive alternatives are available, and if so, the Member shall not maintain the formalities. Nor should the regulations be applied in a manner that would constitute a disguised restriction on traffic in transit. Paragraph 2 mandates governments not to condition traffic in transit upon collection of fees or charges, except for transportation charges or those charges imposed for administrative expenses, commensurate to the cost of the service rendered. Members must not apply any voluntary restraints or barriers to traffic in transit. Members must also accord the same treatment to the goods in transit as if these were not passing through a third country while moving from the country of origin to the country of destination. It is also provided that the goods in transit in one Member’s territory will not be subjected to any customs charges or unnecessary processes that may delay the movement of the goods. Moreover, this Article specifies that the goods in transit will not be subjected to the requirements of the Agreement on Technical Barriers to Trade. As soon as the goods in transit reach the point of exit of a Member’s territory, customs must not delay their exit if transit requirements have been complied with, by promptly completing necessary procedures to conclude the transit operation. Members are required not to apply cumbersome requirements for submission of documents other than those which are sufficient to identify the goods in transit and to ensure fulfilment of transit process requirements. Members must also allow and provide for advance submission and processing of documents for goods in transit, ahead of the arrival of goods. The TFA does not prohibit Members to seek guarantees for transit. However, when a guarantee is sought, Article 11 states that this instrument must be limited to ensure that the requirements arising from the traffic in transit are fulfilled. Moreover, once the transit requirements have been fulfilled, the guarantee must be immediately di...
Core obligation. The measure aims at achieving effective Customs controls at borders through a reasonable and equitable balance between ensuring compliance and reducing costs and time to businesses. The measure also allows for a better allocation of human resources, increases Customs revenues, and improves compliance with laws and regulations (UNCTAD, 2011). Pursuant to Article 7.4, WTO Members are bound to set up or maintain a risk management system. Nonetheless, this obligation is neutralized by adding the term "to the extent possible". In light of this wording, WTO Members are compelled to set the broadest scope and the greatest content for risk management systems as far as their national resources allow. Once established, risk management systems shall operate on a non-discriminatory basis. In practice, WTO Members may differentiate goods, including means of transport, through risk analysis and selectivity criteria but, in any case, this process shall lead to an arbitrary or unjustifiable discrimination, or disguise restrictions to international trade. The rule seeks to ensure the application of risk management in good faith, avoiding abuse or misuse of this provision. Consequently, any requirement in Members' legislation for Customs to examine 100%, a fixed number or a minimum percentage of consignments, would generally not be compatible with risk management principles.
Core obligation requires Members to ensure cooperation between border regulatory agencies at both the national and international level.
Core obligation. The Article aims to regulate the system of imports and exports for specific purposes, including temporary import, goods imported for inward processing and outward processing. This provision is mandatory, subject to and consistent with the laws and regulations of the importing Member country. In specific cases, this will mean that domestic laws and procedures will be considered compliant. The release of goods, without payment of duties and taxes fully or partially, for importation for a predefined period of time and a predefined purpose, and export within a specific period, is allowed. Examples include samples or goods imported for exhibition that have to be returned home or large machinery imported for building a factory and returned after completion of works. It is imperative that these goods do not undergo any change while in the country of import. This measure enables the conditional release of goods, without payment of duties and taxes, fully or partially eligible for drawback, imported for manufacturing, processing or repair and then for subsequent exportation. Examples of import inward processing include importation of accessories, zips and buttons to be attached to garments, which are meant for export. The temporary export of goods for the purpose of manufacture or repair that are subsequently re-imported without payment of customs duties, in full or in part, is enabled. This applies to domestically produced or earlier imported goods. The measure does not require Members to allow such releases without any conditions or security and does not specify the type of conditions/guarantees upon which temporary admission, inward processing or outward processing may be allowed. The time lag for goods under inward processing or outward processing schemes or between the temporary import and the subsequent export of imported goods is not specified.
Core obligation. The measure introduces the obligation for all WTO Members to promptly publish trade-related information in a non-discriminatory and easily accessible manner in order to ensure that relevant stakeholders become acquainted with this information. The aim is that other WTO Members and traders affected, or others likely to be affected, by governmental measures imposing restraints, procedures, requirements and other burdens, should be given a reasonable opportunity to acquire reliable information about such measures and accordingly to protect and adjust their activities (Appellate Body Report, US-Underwear case). Timely, accurate and easily accessible information on trade legislation, applicable fees and tariffs, and related adjudicatory mechanisms is a critical element in establishing a transparent and predictable environment for improving international trade efficiency, Customs compliance, government revenues and foreign investments.
