SMEs AND THE WTO TRADE FACILITATION AGREEMENT

148 Pages·2015·3.64 MB·English

SME AND THE WTO TRADE
s
FACILITATION AGREEMENT
A TRAINING MANUAL
In collaboration with
© International Trade Centre 2015
The International Trade Centre (ITC) is the joint agency of
the World Trade Organization and the United Nations.
Street address: ITC
54-56, rue de Montbrillant
1202 Geneva, Switzerland
Postal address: ITC
Palais des Nations
1211 Geneva 10, Switzerland
Telephone: [phone]
Fax: [phone]
E-mail: [email protected]
Internet: http://www.intracen.org
SMEs AND THE WTO TRADE
FACILITATION AGREEMENT
A TRAINING MANUAL
SMEs AND THE WTO TRADE FACILITATION AGREEMENT

Abstract for trade information services
ID=43167 2015 F-09.07 SME
International Trade Centre (ITC)
SMEs and the WTO Trade Facilitation Agreement: A Training Manual.
Geneva: ITC, 2015. xii, 132 pages (Technical paper)
Doc. No. TFPB-15-343.E
The training manual on the World Trade Organization Agreement on Trade Facilitation explains each of the
measures of the Agreement, including the key elements of the measure, the intended benefits from a
business perspective, an outline of the practical steps that businesses might take in order to take
advantage of the measure and practical exercises and proposed questions for group discussion. It aims to
assist the business community better understand the technical measures of this multilateral Agreement
and the opportunities it offers to importers, and exporters in reducing delays and costs in moving goods
and services across borders.
Descriptors: Trade Facilitation, WTO, SMEs, Developing Countries, Manuals
For further information on this technical paper, contact Mohammad Saeed ([email protected])

English
The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United
Nations.
ITC, Palais des Nations, 1211 Geneva 10, Switzerland (www.intracen.org)
Digital image(s) on the cover: © iStockphoto
© International Trade Centre 2015
ITC encourages the reprinting and translation of its publications to achieve wider dissemination. Short
extracts of this technical paper may be freely reproduced, with due acknowledgement of the source.
Permission should be requested for more extensive reproduction or translation. A copy of the reprinted or

translated material should be sent to ITC.

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Foreword
The World Trade Organization (WTO) Agreement on Trade Facilitation is an important tool for economies
to improve their business environment. Easing the cost, time and process of doing business and trading is
no longer just a policy choice. It is fundamental to increasing the competitiveness of an economy and
attracting investment.
For businesses, especially for small and medium sized enterprises (SMEs), operationalizing the
Agreement on Trade Facilitation is a path to internationalization, which will allow them to access
international value chains at lower cost and at greater speeds.
Concluded by WTO members in December 2013, the Agreement promises greater efficiency by targeting
administrative barriers to trade – unnecessary border inspections, excessive document and data
requirements, manual processes, lack of coordination among border authorities and complex and
inefficient rules and procedures. All of these issues delay the movement of goods and services and
increase trade costs, which are often passed to consumers.
Trade transaction costs are highest in the world’s poorest countries, which are the least able to carry this
additional burden. For instance, the average cost to move a container across the border is 43% higher in
Least developed countries (LDCs) than in other developing countries.
These costs affect SMEs the most as theyoften lack the means and capacity to comply with complex rules.
The high compliance costs with customs and border procedures and other non-tariff measures (NTMs)
represent significant charges relative to their smaller volumes of trade. This makes them uncompetitive as
suppliers and hampers their integration into regional and international value chains.
SMEs can benefit from the Agreement by having a sound understanding of how the new procedures and
requirements will complement their business prioirties. Like other WTO agreements, the degree to which
the intended benefits of the Trade Facilitation Agreement can be actually realized will depend upon how it
is implemented in national law and practice. While implementation is the primary responsibility of the WTO
members, businesses play a critical role in the consultative process to advise authorities as to how the
Agreement is best applied in the national environment.
The International Trade Centre (ITC) developed this manual to assist businesses to understand the terms,
potential benefits and practical use of each of the technical measures of the new Agreement, as well as to
suggest potential implementation choices. ITC will continue working with SMEs in developing countries
and LDCs to increase their knowledge of the new rules and the benefits available to them.
In line with the importance of cooperation among institutions, this publication was produced by ITC, in
collaboration with the United Nations Conference on Trade and Development (UNCTAD), the United
Nations Economic Commission for Europe (UNECE) and International Chamber of Commerce (ICC). This
is an example of the United Nations’ system delivering as one in collaboration with the private sector.

Arancha González
Executive Director
International Trade Centre

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Acknowledgements
The idea of publishing a training manual for SMEs on the WTO Trade Facilitation Agreement was demand
driven and conceived during interactions with private sector representatives in over 30 countries where ITC
provided technical assistance in the area of trade facilitation.
Brian J. O’Shea, an independent consultant with over 15 years of experience in trade facilitation reforms in
developing and least-developed countries, contributed to the publication of this manual. He acknowledges
the support he received through consultations with other experts in the field of trade facilitation, particularly
Sheri Rosenow at the WTO Secretariat, who gave valuable advice and help through discussions on the
negotiation and text of the Trade Facilitation Agreement.
Rajesh Aggarwal, Chief, Trade Facilitation and Policy for Business Section and Mohammad Saeed, Senior
Trade Facilitation Adviser, provided the guidelines and structure for the manual and supervised the writing
with Qasim Chaudry, Consultant, Trade Facilitation and Policy for Business, acting as coordinator at ITC.
Special thanks to Marilyn Hubble, ITC consultant, for editing support, and to the ITC publications team,
particularly Natalie Domeisen, Evelyn Seltier and Mixtli de la Peña Gimenez, for quality control and
production management. We also thank Serge Adeagbo and Franco Iacovino for providing graphic and
printing support.

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Contents
Foreword iii
Acknowledgements v
Abbreviations xi
Introduction 1
Chapter 1 Scope and purposes of the Agreement 3
1. What is trade facilitation? 3
2. Structure of the Trade Facilitation Agreement 4
3. National Trade Facilitation Committee 6
4. Role of the private sector 7
Chapter 2 Better access to trade information 9
1. Publication 9
2. Information available through the Internet 12
3. Enquiry points 15
4. Consultation 19
5. Business participation in development of laws, regulations, formalities and
documentation requirements 23
6. Information before entry into force 30
7. Advance rulings 33
Chapter 3 Faster, simpler and cheaper border clearance 41
1. Pre-arrival processing 41
2. Separation of release from final determination of customs duties, taxes, fees and
charges 45
3. Additional facilitation for authorized operators 49
4. Single window 56
5. Disciplines on fees and charges 61
6. Use of copies of supporting documents for faster processing 64
7. Offering the option of electronic payment 68
8. Limits on mandatory use of customs brokers 70
9. Rapid release of express consignments 72

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Chapter 4 Fairness in resolving customs disputes 77
1. Right to appeal or review 77
2. Customs penalty disciplines 84
Chapter 5 Duty free import procedures 91
1. Freedom of transit 91
2. Movement of goods under customs control intended for import 96
3. Customs ‘suspense’ procedures 99
Chapter 6 Measures available in defense of your goods 105
1. Requesting opportunity for a second test 105
2. Prompt notice of detention of goods for inspection 110
3. Handling and release of perishable goods 112
4. Option to return rejected goods 117
5. Food and animal feed ‘import alert’ systems 120
Chapter 7 Customs and border agency control and administration 125
1. Risk management 125
2. Use of customs post clearance audit 126
3. Establishment and publication of average release times 126
4. Border agency cooperation 126
5. Common border procedures and uniform documentation requirements 128
6. Mechanism for customs cooperation (exchange of information) 128
7. Use of international standards 129
8. Limitation on use of pre-shipment inspection 129
WTO Trade Facilitation Agreement (TFA) article reference sheet 131

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