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APEC ACTION PLANS - TRADE FACILITATION ACTION PLAN

APEC Trade Facilitation Action Plan

Presented by Committee on Trade and Investment

1. Since its inception in 1989, trade facilitation has been one of the core activities of APEC. Over the years, much has been achieved through the three APEC modalities of:
   1. Actions by individual APEC economies;
   2. Actions by APEC fora; and
   3. APEC actions related to the multilateral fora.
      

2. With the 9/11 terrorist attacks, a new dimension was added to world trade especially involving the movement of goods and people across borders.

3. APEC noted that legitimate international trade must continue to be facilitated. Trade facilitation will continue to be a core APEC activity complementing trade liberalization in pursuit of the Bogor goals of free and open trade and investment. Ministers in Shanghai in 2001 stressed the significance of trade facilitation in reducing business costs domestically and across borders when endorsing a set

of APEC Trade Facilitation Principles. Leaders, in clarifying the roadmap to Bogor, called for the identification of concrete trade facilitation actions and measures, when implementing the Trade Facilitation Principles, so as to achieve

a targeted reduction of business transaction cost by 5% across the APEC region over the next five years.

4. The Committee on Trade and Investment (CTI) was tasked to work on this. By its May 2002 Meeting, the CTI presented to SOM a Framework for APEC Trade Facilitation Action Plan (Annex 1). This was endorsed by SOM for approval by Ministers Responsible for Trade (MRT) at their meeting in May 2002.

5. In approving the Trade Facilitation Action Plan, MRT called on all economies to identify concrete actions and measures in consultation with the private sector so

as to develop a menu of options by the Joint Ministerial Meeting in October 2002. The proposed Menu of Concrete Actions and Measures is a ‘living document’. It

is intended to provide examples of the types of measures that each economy may wish to undertake beginning in 2003. A copy of the Menu is attached at Annex 2.

6. During the year, CTI noted that all CTI sub-fora reported positively their implementation of the Trade Facilitation Principles across all their activities

(Annex 3). In addition, CTI also developed and SOM approved a report format for member economies to highlight their trade facilitation achievements in IAPs

(Annex 4).

Dated : 21 October 2002

Framework for APEC Trade Facilitation Action Plan

SOM II - MRT, 2002:

CTI to develop and SOM to agree on the framework and schedule to

achieve Shanghai Accord Trade Facilitation targets and report to the MRT.

SOM III, 2002:

APEC fora and economies develop list of concrete actions and measures as

a menu to implement Trade Facilitation in APEC.

Leaders’ and Ministerial Meeting, 2002:

Obtain approval of the APEC Trade Facilitation Action Plan.

By SOM I, 2003:

Economies and relevant APEC fora select actions and measures from the

menu to implement collectively, individually or through a Pathfinder

Approach. Collaboration with the private sector and experts may assist this process.

After SOM I, 2003:

As necessary, relevant sub-fora develop action plans for related capacity- building activities and provide technical assistance utilizing the TILF fund.

Year 2003:

SOM/CTI examines review methods including objective criteria and capacity building efforts and reports on them to the Ministerial Meeting

Year 2004:

Each economy reports to SOM/CTI III on status of implementation to carry out a mid-term review of overall progress -- on the basis of the above noted review methods and objective criteria -- and capacity building efforts. This may take place at an expanded Trade Facilitation Dialogue, in collaboration

with the private sector and experts.

Years 2005 – 2006:

SOM/CTI and other relevant APEC fora monitor implementation of Trade

Facilitation activities results on an ongoing basis.

Year 2006:

SOM/CTI undertakes final review on input from individual economies, APEC fora, business and experts and reports fully implemented actions and measures to the Leaders and Ministerial Meetings.

Year 2008:

SOM/CTI and other relevant APEC fora in collaboration with the private sector and experts report on final cost savings to business resulting from the 2006 implementation.

Advancing Commerce:

The APEC Trade Facilitation Action Plan

Background

Trade facilitation is one of APEC’s three main pillars of work to achieve the Bogor goals of

free and open trade and investment, and APEC’s work on trade facilitation will help boost the economies, especially developing economies, in this region and bring clear benefit to our business communities. Taking fully into account the diversity among APEC members as

well as the progress achieved on trade facilitation in their respective economies, appropriate capacity building for developing economies will enhance the overall benefit of APEC’s trade facilitation work throughout the region. In the Shanghai Accord, Leaders instructed

Ministers to identify concrete actions and measures to implement the APEC Trade Facilitation Principles in close partnership with the private sector, taking into account the diversity among members and the progress achieved so far. The objective is to realize a

significant reduction in transaction costs by endeavoring to reduce them by 5 percent across APEC region over the next five years. Leaders also asked Ministers to consider setting objective criteria on trade facilitation.

Approval of the Framework (SOM II, 2002)

At CTI II and SOM II, the framework, including a schedule for implementation, of the Action

Plan should be agreed and reported to MRT in order to meet the trade facilitation objectives specified by Leaders in the Shanghai Accord.

Identification of Actions and Measures (SOM III, 2002)

By SOM III this year, APEC member economies, as appropriate, working with each other

and with domestic and foreign firms with a presence in their economies, should develop possible concrete actions and measures to reduce the costs of international trade transactions. Such actions and measures should fall under one of the following four categories: movement

of goods (to include customs, port, health and quarantine and similar procedures), standards, business mobility and e-commerce. Some APEC fora whose responsibilities lie in these areas have already identified specific actions and measures as part of their work. These APEC fora will be key drivers in working to develop actions and measures, but other APEC fora,

individual economies and the private sector should also contribute to identifying actions and measures. Collective actions and measures, as well as those identified by individual member economies, will play an important role in meeting our trade facilitation objectives.

Approval of the APEC Trade Facilitation Action Plan (AMM and AELM, 2002)

The framework and a menu of concrete actions and measures for trade facilitation noted

above will obtain approval of Ministers and Leaders in October 2002 as “the APEC Trade

Facilitation Action Plan.”

Selection of Actions and Measures (SOM I, 2003), and Estimating Cost Savings (2003)

At SOM I in 2003, each economy should report on actions and measures it intends to

implement to reach the overall goal of a substantial reduction in trade transaction costs. Economies should make best endeavors to estimate the potential benefits from implementing these measures as soon as practical. Determining benchmarks or baselines for current performance in measures selected for implementation will be important to measure progress.

Wherever possible, quantitative methodologies should be used to measure the effect on transaction costs. In cases where the selected action is a specific reduction in a government fee , the quantification of the action’s effect on cost is likely to be straight-forward. Where

the selected action is a change of rule or regulation, not expressed in terms of cost (e.g., speeding up customs clearance procedures), estimating the degree of cost reduction is likely

to be more difficult. In this latter case, surveying private sector companies involved in the affected trade may be necessary to achieve an estimate of cost reduction. Consultation with academics and other experts in the area of the quantification of non-tariff trade measures may provide useful guidance on additional approaches.

Given the inherent difficulty in measuring the effect of some measures, economies may wish

to consider using reductions in the "Time Required for the Release of Goods" (time taken between the arrival of goods at seaports/airports and their release (customs' permission)) as a proxy for improvements in a range of activities relating to customs clearances, port management and cargo handling, and brokering/forwarding, as well as other procedures affecting the transit of goods. Member economies may wish to explore this measure and

work conducted by the World Customs Organization to further define the elements of "Time

Required for the Release of Goods."

Where specific quantification is not possible, detailed qualitative analysis should be provided

to explain the expected level of cost reduction. Such analysis might concentrate on detailed a description of the selected action and its linkages to the cost of trade transactions. It may also reflect the views of experts concerning the order of magnitude of potential cost reductions. Private sector input would again be useful in this regard.

Mid-Term Review (SOM III, 2004)

At SOM III in 2004, economies should report on the status of implementation, including

problems encountered and progress made. For any fully implemented actions or measures, qualitative or quantitative analysis of the cost reducing effects would be most useful.

Economies should also identify any unforeseen circumstances arising during implementation with a view toward expediting cost reduction and trade facilitation APEC-wide through the sharing of information.

As a follow-on, the CTI should convene an Expanded Dialogue on Trade Facilitation (EDTF) involving member economies and sub-fora, government and non-government experts, and representatives of the private sector. The dialogue would serve to promote the exchange of information and ideas. In light of the progress reported by member economies, experts could discuss different approaches to quantitative analysis and the likely effects on trade

facilitation. Experts could also provide assistance to those economies and sub-fora with questions regarding quantitative methodologies, specific actions and measures, and other relevant issues. In response to Leaders’ instructions that there be cooperation with the private

sector, representatives of the business community (i.e., ABAC) could provide their

perspective on progress made, and offer suggestions. Rather than identify specific economies

in an oral presentation, private sector officials could make general observations on trade facilitation across the Asia-Pacific region. A more detailed written report by the business community containing economy-specific issues/concerns could be made available to member economies.

Final Implementation Status (2006)

Economies should report on their fully implemented actions and measures with completed

quantitative and qualitative analysis of each action and measure selected at SOM I in 2003.

Full information should be provided by economies on each implemented action and measure, thus facilitating outside examination and possible additional assessment and quantification by private academic and research groups. The CTI (with SOM approval) should conduct an

overall assessment of these reports for presentation to the AMM and AELM in 2006, inviting input from the private sector, and possibly engaging outside resources (i.e., experts) to

measure the potential cost reducing effects of the actions and measures reported.

Follow-on (2008)

Two years may need to pass from the 2006 target implementation date before the true

benefits (dollar amounts of transaction cost reductions) to business can be known. Two

further initiatives could therefore be the subject of a 2008 meeting. SOM/CTI, other relevant APEC fora and member economies in collaboration with the private sector and experts could report on actual cost savings in 2008 of the measures implemented by 2006. At the 2008 meeting, economies could also report on the possibilities for further cost saving measures

beyond those implemented in 2006.

APEC Fora

Senior officials should direct CTI sub-fora and other APEC fora to assist in identifying

concrete actions and measures to reduce the costs of international trade transactions. Primary responsibility would lie with those fora that work in the areas of movement of goods (to

include customs, port, health and quarantine and similar procedures), standards, business mobility, and e-commerce. APEC fora not directly involved in these four areas could also suggest concrete actions and measures.

APEC fora should continue reporting on their efforts to implement APEC’s Trade Facilitation

Principles. In their reports (see attached reporting template), sub-fora are invited to outline

their general approaches, strategies and means to advance trade facilitation work with a view

to improving the business environment in the Region, and to identify the direct beneficiaries

of each work program. APEC fora should also adopt appropriate measures to evaluate the effectiveness of their work on trade facilitation and to ensure that it delivers concrete outcomes for business. It will be important to involve ABAC and other private sector partners in this process. Experts may be requested to participate in APEC fora meetings to discuss ways in which trade facilitation can be advanced through fora activities. The Collective Action Plans of APEC fora should contain information regarding each group’s efforts to improve trade facilitation.

Relevant APEC fora should participate in the 2004 Mid-Term Review. Along with member economies, APEC fora could report on the progress that they have made in reaching their

trade facilitation objectives, as well as any difficulties encountered.

Capacity Building

Individual Economies

Depending on the actions identified, it may be the case that economies and their officials

could benefit from outside technical assistance in order to: 1) determine the actions and measures that would be most appropriate for their economy to implement; 2) assess the cost

savings from selected actions and measures; and 3) implement measures selected. A proposal

for TILF funding could be put forward calling for APEC to contract with experts experienced

in quantitative analysis. (These experts may need to be available prior to the selection of action plans at the SOM I 2003 meeting.) Assisting developing economies to implement measures selected may require special focus.

With such an orientation, the 2003 meeting should provide an opportunity for an exchange of information on cost saving measures as well as methods of quantification and measurement. The 2003 meeting would also provide economies the opportunity to comment on each other's

proposals early in the process.

Selected experts could also provide assistance and views at the 2004 Expanded Dialogue on

Trade Facilitation and the 2006/2008 assessments.

Sub-Fora

Sub-fora have a key role in implementing capacity building projects to facilitate trade among

member economies. They should be encouraged to bring forward TILF requests for projects that will assist member economies develop the expertise required to implement trade facilitation measures. These capacity building projects should be developed in close collaboration with the private sector and lead to concrete outcomes for business. These

projects could include workshops to share best practices or training programs for officials.

Future Capacity Building Initiatives

a) Individual Reporting on Capacity Building

Economies could report on trade capacity building activities they are currently sponsoring in

the area of trade facilitation. The CTI should continue to encourage APEC fora and

economies to organize relevant capacity building projects to assist in developing members in creating a more conducive business environment.

b) Working with Other International Organizations

It will be important for both member economies and sub-fora to make every effort to leverage

the resources of international development organizations in their trade facilitation-related capacity-building efforts. In this respect, the current project overseen by Canada on

“Assessing the Economic Benefits of Trade Facilitation in APEC and Recommendations for a Coordinated Capacity Building Programme” will make an important contribution to the development of a partnership with the World Bank for trade facilitation in APEC. Further

such joint initiatives should be pursued.

Overview of APEC Trade Facilitation Action Plan

SOM2 and MRT
Framework (including Schedule)

SOM3
Concrete Actions and Measures

Input from CTI sub fora, WGs and member economies in close cooperation with business community

AMM and

AELM in 2002

APEC Trade Facilitation Action Plan

By SOM1

in 2003
Select Actions and Measures to implement by
CAP: all member economies
IAP : individual member economies
Pathfinder Approach: group of member economies

In 2003

Estimating Cost Saving

e.g. Time Required for the Release of

Goods

Assistance

Capacity Building activities
by CTI sub-fora, Individual economies

SOM3 in 2004
^{Mid-term review}

AMM and AELM in 2006
^{Final review}

In 2008
^{Final report on cost saving}

Committee on Trade and Investment

2002 Collective Action Plans:

Progress Report to CTI 2 on the Implementation of the APEC Trade Facilitation Principles (TFPs)

Sub-forum:

Part I: General Approach to Trade Facilitation Work

[Please restate, in a few sentences, how your sub-forum will advance trade facilitation work in 2002 and beyond (e.g. your sub- forum’s prime focus of facilitation work, strategy and means to take forward such work, and benefits to the business sector).]

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Part II: Concrete Trade Facilitation Initiatives

[Please refer to the guidance notes.]

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Guidance Notes for Part II

1. Please insert the title and, where appropriate, a brief description of the trade facilitation initiative. Sufficient information should be

provided to enable readers to understand the content of the initiative. If a sub-forum plans to use its CAP as a framework to advance trade facilitation, it should elaborate on what short/medium-term initiative(s) has/have been designed to take forward

such work, instead of mentioning only the titles of the CAP items. The initiatives reported should also be specific and trade

facilitation related. For instance, “dialogue with the business sector” in itself is rather an approach to trade facilitation work instead

of a specific trade facilitation initiative, and hence should be reported in Part I. Besides, if an initiative is relevant to trade liberalization and/or ecotech but not trade facilitation, it should not be included in the report even though some TFPs (e.g.

communication and consultations) have been applied in the course of developing the initiative.

Separately, as new economy policies (e.g. e-commerce, internet development) could positively impact trade facilitation, sub-fora may consider incorporating, where appropriate, their specific trade facilitating work items relating to new economy policy in this report.

1. Please state which TFP(s) is/are relevant to the initiative. The nine TFPs are transparency; communication and consultations; simplification, practicability and efficiency; non-discrimination; consistency and predictability; harmonization, standardization and recognition; modernization and the use of new technology; due process; and cooperation.
   
2. If the business sector will be/has been involved in the formulation and/or implementation of the initiative, please briefly state which group(s) of the business sector is/are involved and describe its/their involvement.
   
3. Please state how the business community and other beneficiaries (including government officials) respectively will directly benefit from the initiative. The benefits should be closely related to trade facilitation and described in concrete terms (elaboration would be appreciated on such general statements as “increased public awareness of the matter”, “implementation of relevant APEC principles/menus of options”, “work load of government officials relieved”, “enhanced dialogue with the business sector”,

“more technology transfer”, etc, which fall short in specifying the beneficiaries and/or the benefits from a trade facilitation angle). Members broadly agreed at CTI 1 that sub-fora should develop results-oriented work plans with specific outcomes for business. Sub-fora may therefore wish to report, if applicable, measurable objectives for their initiatives. For illustrative purpose, such objectives may be number of seminars organized, number of trainees/participating economies in the activity, frequency of updating information on internet database, percentage of service using new technology, reduction in average service turn-round time, etc. If necessary, sub-fora may set two-tier objectives (e.g. one for industrialized economies and one for developing economies) to take into account the different levels of economic and technological development among economies, and their

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diverse circumstances.

Sub-fora are also suggested to make use of the information reported in this column to review the balance of their initiatives so that

both government officials and the business sector can benefit from their activities.

1. For the completed initiative, please report the outcome(s) (including whether the identified objective(s) is/are reached and the number of participating economies) and whether follow-up action(s) would be required. For those initiatives in progress, please report the latest development and the estimated completion date.
   

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TRADE FACILITATION

MENU OF ACTIONS AND MEASURES

The following listing of concrete trade facilitation actions and measures is submitted

to Ministers for approval through Senior Officials. The list has been identified by individual economies in consultation with their private sector. This list sets out a menu of options from which individual economies will, by SOMI 2003, select the actions or measures they intend to implement to reach the overall goal of a substantial reduction in trade transaction costs (i.e. the 5 percent target). When they select measures, economies will also make best endeavors to estimate the potential benefits from implementing these measures. This Trade Facilitation Menu of Actions and Measures is a ‘living document’ intended to provide economies with examples of the types of actions and measures which each economy may take, individually, collectively or through a Pathfinder Approach.

As economies will be able to select measures either from the menu or other measures they determine best-suited to attaining the goal of substantially reducing transaction costs, the Action Plan provides economies with needed flexibility, while

at the same time ensures meaningful results. Concurrent with this, per the Action Plan, economies and relevant sub-fora will develop related capacity building and technical assistance or co-operation projects utilizing the TILF Fund as appropriate.

MOVEMENT OF GOODS

1. Public Availability of Information on Customs and Other Trade-related Laws

and Regulations

Objective – To provide traders with accurate, consistent and user-friendly information, which is pertinent to business decisions.

Actions

1. Make customs and other trade-related laws, regulations and guidelines

accessible to the public in paper form (e.g. publication) as well as

electronically such as via Internet.

b Establish inquiry points for customs and other trade procedures.

c Provide opportunities for consultation with stakeholders and adopt process to obtain public comments when formulating, implementing and reviewing rules and procedures related to trade; and express opinions clearly in response to the comments of stakeholders with specific turn-around times.

d Establish and maintain updated customs and other trade-related websites. These websites should also be accessible through common web portals such

as the APEC web-site.

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e Develop an APEC Trade Facilitation database over the APEC web-site, which contains information on trade-related procedures in APEC economies and a list of contacts of trade related administrations.

2. Appropriate, Transparent and Predictable Trade-related Procedures

Objective – To realize appropriate, transparent and predictable trade procedures through consistent and non-discriminatory application and implementation of trade-related laws and regulations.

Action

1. Reduce administrative regulation of trade and realize swift customs and other

trade-related procedures for low risk cargos, with a view to minimizing

unnecessary physical examination and facilitating the flow of legitimate trade such as ‘Green Channel’.

b Implement customs and other trade-related laws/regulations in a consistent and uniform manner across the economy and avoid any inappropriate exercise of discretion by Customs and other trade-related administration officers.

c Issue trade-related certificates, approvals or other documents required for import/export without delay, with a view to avoiding any documentation requirements that could disrupt cross-border flow of goods.

d Draw on the Arusha Declaration of the World Customs Organization concerning integrity in customs in the management of operations and personnel and raise the level of integrity to provide more accountable, consistent, reliable and transparent Customs administrations, for example through the development and implementation of a code of conduct.

e Enhance capacity of Customs officials of physical inspection of import/export goods in order to prevent inspected goods from being damaged and to realize efficient and effective inspection.

1. Review and simplify procedures for refund/reimbursement of customs and other trade-related duties and taxes, and process such request without delay and within the time period, specified by laws/regulations.
   

g Minimise necessary amount of security/surety across the economy.

h Build open, transparent and cooperative partnerships with stakeholders in the international movement of commercial goods including customs brokers, shippers, warehouses etc.

1. Fully implement all principles and obligations of the PSI Agreement and refrain from posting minimum import prices, referring to generic price databases, or using PSI companies in such a way that is not compatible with the obligations of the Agreement.
   

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3. Harmonization of Tariff Structure with the HS Convention

Objective – To ensure consistency of application, certainty and a level playing field for business through the HS Convention of the WCO, the standard international harmonization system for the classification of goods.

Action

1. Fully implement the HS Convention and incorporate the HS 2002 changes.
   
   1. Adopt laws/regulations to provide binding tariff classification to importers and ensure consistent and uniform application of the HS, by providing the WCO HS Explanatory Notes in local languages to relevant parties including front line customs officers.
      
2. Build capacity of Customs laboratories.
   
3. Make available to importers precedent-based rulings in electronic format.
   

4. Simplification and Harmonization on the Basis of the Kyoto Convention

Objective – To improve efficiency in customs clearance and the delivery of goods

in order to benefit importers, exporters and manufacturers through simplified customs procedures and best practices.

Action

1. Adopt and fully implement the Body and General Annex of the revised Kyoto

Convention and, to the extent possible, the Specific Annexes.

1. Provide expeditious clearance for traders who meet the criteria specified by

Customs.

c Establish an effective advance ruling process, such as an advance classification ruling system, with an office responsible for providing advance rulings that are binding at the time of import. Rules, guidelines, and procedures employed by these offices for advanced rulings should be transparent and operational. The ruling process should include specific time limits for rulings and an opportunity to appeal those rulings. Rulings could include: a) Classification of Goods; b) Determinations of Value; c) Marking and Labeling; d) Quotas; and e) Any other admissibility requirement.

d Establish a surety bond system to allow for entry of goods with payment of duties to be delayed and identify financial institutions that will underwrite surety bonds for international trade (similar to the ATA Carnet system of the International Chamber of Commerce but expanded to include all goods entry).

5. Paperless and/or Automation of Trade-related Procedures

Objective – To reduce paper documents for trade-related procedures and automate/computerize trade-related procedures

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Action

1. Simplify procedures and reduce the requirements for paper documentation in

Customs clearance.

1. Ensure measures to replace paper documents for cross-border trade administration with electronic equivalents that are media and technology neutral, and secure and interoperability with and between all parties involved

in the international supply chain of goods and services.

1. Establish a single-window and Web-based electronic access to trade-related documentation and data transmission among relevant government agencies

to enable permit-issuing agencies to approve permits online and forward documentation electronically to Customs. For example, certain economies allow their customs agencies to use the data to clear goods, and users to track their document status throughout the entire process. Reduce the requirements for paper documentation in customs clearance and other trade- related procedures.

1. Establish an electronic system to allow shipping companies to compile and issue cargo manifests and transmit them to Customs and other relevant administrations.
   
2. Establish a Web-based electronic system for application for and issuance of quarantine documents, health certificates, certificates of origin, and standard certification, with electronic transfer ability to importing authorities.
   
3. Eliminate paper certificates of origin and requirement for

“counselorization”/certification by Chambers of Commerce. Revise entry documentation to allow certification of country of origin on entry document eliminating the need for separate documents. Allow economies that have automated entry facilities to accept electronic declaration of country of origin and eligibility for preferences.

1. Adopt common frameworks for trade-related procedures among enterprises, such as Trade Electronic Data Interchange (TEDI) and Pan-Asian E- Commerce Alliance (PAA).
   
2. Standardize common data elements and the format of trade-related documents, including B2B documents, such as bill of lading, arrival notice advice, and insurance certificates.
   
3. Establish cross-border exchange and mutual recognition arrangements pertaining to official trade-related e-documents
   
4. Establish a common framework for the secure exchange of trade-related, e- documents among the private sector.
   
5. Implement electronic sanitary and/or phytosanitary certification systems.
   
6. Implement electronic e-government procurements systems. m Implement electronic certificates of origin systems.
7. Introduce web-based solutions for Customs clearance and transaction status inquiry.
   
8. Establish a fully computerized platform for shipping and harbor operations.
   

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p. Develop an automated system, integrated with customs declaration system, for payment of duties, taxes and levies on traded goods and accept such payment through the banking system by Electronic Funds Transfer (EFT) in addition to cash or check.

q. Adopt account-based import processing for importers. Create systems for the collection of duties and other taxes on a periodic basis (rather than completing import transactions one at a time).

6. Adoption of Standard Electronic Format and Harmonized Data Elements

Objective – To use the international standard electronic formats and common data elements for automated trade-related systems to harmonize the data element requirements among APEC economies.

Action

1. Adopt UN/EDIFACT (United Nations/Electronic Data Interchange For

Administration, Commerce and Transport) or other standard electronic formats for customs and other trade-related procedures.

1. Implement strategies to ensure security and confidentiality of customs and other trade-related data.
   
2. Adopt standardized and simplified common data elements and formats created by WCO/G7. Adopt the WCO data harmonization project elements when it is completed.
   
3. Use Internet compatible systems for the transmission of trade-related data elements.
   

7. Adoption of the Principles of the WTO Valuation Agreement

Objective – To facilitate administration of the World Trade Organization’s

Valuation Agreement on standard procedures for valuing goods.

Action

1. Fully implement all of the principles of the WTO Valuation Agreement.
   
2. Adopt laws/regulation to provide binding valuation decision to importers and ensure consistent and uniform application of the Agreement.
   
3. Refrain from posting minimum import prices in such a way that is not compatible with the obligations of the Valuation Agreement.
   
4. Implement Post Audit Clearance systems and such systems should be searchable by importers.
   

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8. Clear Appeals Provision

Objective – To provide businesses with an opportunity to challenge potentially erroneous or inequitable customs decisions through mechanisms for transparent, independent, and timely appeals.

Action

1. Adopt laws/regulations to establish appeal system with transparent review

and/or judicial process to appeal customs decisions and actions.

b Adopt procedures to provide written rulings on issue.

c Publish rulings as well as the procedures for appealing decisions.

9. Risk Management

Objective – To focus Customs enforcement efforts on high-risk goods and facilitate the movement of low-risk shipments, through a flexible approach tailored

to each APEC economy.

Action

1. Develop and adopt advanced risk management methodology, such as

systemic cargo-profiling techniques, and/or a computerized risk management system to identify high-risk shipments and minimize physical examination.

1. Promote the exchange of information, intelligence and documents among

Customs authorities on a bilateral as well as APEC-wide basis.

1. Develop an electronic reporting system for importers/exporters and international carriers to declare dangerous goods to Customs, the port authority and other relevant administrations.
   

10. Guidelines for Express Consignments Clearance

Objective – To implement the principles contained in the World Customs Organization’s "Guidelines on Express Consignments Clearance", working in partnership with express industry associations.

Action

1. Adopt laws/regulations for express consignments based on WCO Guidelines

on Express Consignments and establish a simplified customs procedures for

express consignments.

1. Establish dedicated clearance windows to process express consignments.
   
2. Provide round-the-clock customs clearance service for express consignments.
   

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11. Provisions for Temporary Importation, e.g. Acceding to the A.T.A. Convention or the Istanbul Convention

Objective – To help businesses move goods such as commercial samples, professional equipment, tools of trade and exhibition material across borders with

a high degree of certainty as to how these goods will be treated by Customs by having standard procedures for admitting goods on a temporary basis.

Action

1. Accede to the A.T.A. Carnet Convention and/or Istanbul Convention on

Temporary Admission and ensure all laws, regulations and procedures are

consistent with the conventions.

1. Adopt standard document and procedures for handling goods under temporary admissions.
   
2. Establish dedicated windows for clearance of temporary importation goods.
   
3. Establish a collaborative system for Electronic Carnet.
   

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STANDARDS

1. Align APEC Economies’ Domestic Standards with International

Standards; Implement Good Practices for the Development and

Implementation of Technical Regulations.

Objectives

1. To align national standards with international standards so as to minimize

unnecessary product adaptations to multiple requirements and facilitate trade.

1. To ensure the development and implementation of technical regulations does not create unnecessary obstacles to trade or introduce unjustifiable costs for producers and consumers.
   

Actions

1. Align with International Standards in agreed priority areas and provide

updated information in the IAP.

1. Align regulations, rules and procedures, standards and codes affecting the acceptance of goods between economies and markets on the basis of international standards where appropriate, eg ISO standards.
   
2. Implement WTO TBT Committee Decision on Principles for the Development

of International Standards, Guides and Recommendations and use language consistent with the WTO TBT Committee decision in trade agreements and national laws and regulations when referring to international standards.

1. Implement the Work Program on Trade Facilitation in Information Technology Products (2001-SOM1-CTI-048). APEC economies should align domestic laws, regulations, and procedures with relevant international standards and adopt the supplier’s declaration of conformity that is underpinned by relevant accredited conformity assessment. Co-development with ITI of roadmaps with interested economies.
   
2. Adopt Good Regulatory Practice through revising regulations to reflect the three documents endorsed by the SCSC: Principles and Features of Good Regulatory Practice; APEC Information Notes on Good Practice for Technical Regulations; and Guidelines for the Preparation, Adoption and Review of Technical Regulations.
   
   1. Align domestic regulations for medical devices with the principles of the Global Harmonization Task Force (GHTF). Progressively adopt and implement GHTF guidance documents. Align domestic hazard classification and labeling schemes for chemicals to the Globally Harmonized System

(GHS), an international set of criteria developed by the United Nations.

1. Begin the process to implement the GHS on hazard classification and labeling

of chemicals and safety data sheets as soon as feasible after its adoption by the United Nations in 2002.

1. Sign on to the global MRA on measurement coordinated by the International

Bureau of Weights and Measures (BIPM).

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1. Participate in international and regional comparisons of measurement standards organized by the International Committee on Weights and Measures (CIPM) and the Asia Pacific Metrology Program (APMP).
   

1. Achieve Recognition of Conformity Assessment in Regulated and

Voluntary Sectors.

Objectives

1. Where required by regulation, ensure the acceptance of conformity
   1. results from technically competent bodies regardless of

nationality or geographic location;

1. Eliminate arbitrary impediments to trade and introduce cost savings.
   

Actions

1. Adopt/implement the APEC Electrical and Electronic Mutual Recognition

Arrangement (EEMRA).

1. Implement the Work Program on Trade Facilitation in IT products.
   
2. If appropriate, establish accreditation services for any relevant additional conformity assessment activities, and extend the scope of existing accreditation services, where necessary.
   
3. Participate in the APEC Food MRA
   
4. Participate in the APEC Tel MRA
   
5. Participate in the Asia Pacific Laboratory Accreditation Cooperation (APLAC)

multilateral MRA.

1. Participate in the Pacific Accreditation Cooperation (PAC) multilateral MRA.
   
2. Participate in the global MRA on Metrology developed jointly by the Asia

Pacific Metrology Program (APMP) and BIPM.

1. Technical Infrastructure Development
   

Objective - To address technical infrastructure development needs of all APEC member economies so that all economies fulfill obligations under the WTO TBT and SPS Agreements to encourage implementation of WTO agreements, in the area of standards and conformance, based where possible on the Strategic APEC plan.

Actions

1. Participate in the Mid-Term Technical Infrastructure Development

Programme.

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1. Ensure the Transparency of the Standards and Conformity Assessment of

APEC Economies

Objective – That all APEC members will have access to information regarding the Standards and Conformance regimes of fellow members and comply with relevant WTO obligations.

Actions

1. Provide information on contact points for technical information relating to

standards and conformance in individual economies.

1. Contribute to TIC-CAR Project through the APEC Cooperation Center for Conformity Assessment. To provide a comprehensive source of information about conformity assessment bodies in the region.
   

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BUSINESS MOBILITY

1. Streamline And Standardise Procedures to Enhance Business Mobility
   

Objective – Enhance the mobility of business people who are engaged in the conduct of trade and investment activities in APEC.

Actions

1. Develop standards for a) travel documentation examination; b) professional

service; c) travel document security (and issuance systems); d) immigration

legislation.

1. Streamline arrangements for intra-company transferees in accordance with the agreed APEC 30 day processing standard.
   
2. Implement and promote the APEC Business Travel Card and/or visa free or visa waver arrangements or at least 3 year multiple entry visas for short term business visitors such as those engaged in the negotiation of the sale of services or goods, establishing an investment or participating in business- related conferences, seminars or workshops.
   

1. Enhance the Use of Information and Communications Technology
   

Objective – Enhance the use of information and communications technology

(ICT) to facilitate the movement of people across borders, taking into account the

Leaders’ Statement on Counter Terrorism. Actions

1. Introduce e-lodgement arrangements for temporary residency applications.
   
2. Introduce an advanced passenger information system which pre-clears passengers to ensure faster clearance on arrival.
   
3. Make available visa information and application forms on the web, including through the APEC Business Travel Handbook.
   

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ELECTRONIC COMMERCE

1. Removing barriers to electronic commerce

Objective – Eliminate obstacles for constituents (including citizens, business of all sizes and government agencies) in the global trade flow by identifying, addressing, and alleviating identified barriers and out-of-date practices.

Actions

a. Identify and map out major barriers to e-commerce through the exchange of

practices, including but not limited to laws, regulations and policies, on e- commerce across APEC. Work to identify processes that have been effective

at removing barriers and increasing efficiency, and seek out the most effective methods to create efficiencies among economies. Get senior level commitment to overcome the barriers identified in each economy and among economies

b. Ensure interoperability among government, business and the community in on-line interactions including providing for authentication, confidentiality and non-repudiation in online interactions.

1. In consultation with the private sector, develop a Web portal that will allow all data collected as part of the exchange of practices on e-commerce be entered directly via the Internet. In addition to streamlining responses and data gathering, the data will be more easily extracted to create an external

(unrestricted) site that economy constituents can reference regarding current trade practices on general concepts as well as export-related forms and financing assistance.

2. Speed the use of E-Commerce

Objective – Build constituent confidence in e-commerce by streamlining processes and removing obstacles.

Actions

a. Facilitate the use of secure electronic payment methods.

b. Promote consumer and business education on legal issues. c. Facilitate technological interoperability.

d. Implement policies that result in the competitive and affordable supply of information and communication services.

e. Reduce business costs through increased transparency.

1. Formulate a “business case” for information security that assists the private sector with their network security efforts and explains the economic reasons behind developing sound network security practices.
   

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g. Develop an e-government portal for procurement that will produce improved and faster information flows, more informed and predictable supply chain and logistics from better requirements tracking, and increased potential for improved oversight and visibility of suppliers and bidding processes.

h. Develop online authentication solutions to increase trust and confidence in electronic transactions and e-commerce and to counter problems associated with a lack of effective authentication. For example, identity fraud, the illegal transfers of funds, the unauthorized ordering of goods or the mischievous alteration of data. It is important to note that authentication is not the same as security and must operate in conjunction with an overall security framework.

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ASSESSMENT OF CTI SUB-FORA’S IMPLEMENTATION OF THE APEC TRADE FACILITATION PRINCIPLES

Introduction

1. To enable the CTI to keep track of their progress, sub-fora are required to submit work plans and reports on the implementation of the Trade Facilitation Principles periodically. Based on their returns to CTI 2, a matrix summarizing the measures/activities they have planned or undertaken as reported against the various Trade Facilitation Principles was compiled and submitted to SOM II and Trade Ministers for reference. It is pleased to note that sub-fora have made progress in a number of areas in bringing forward the Trade Facilitation Principles. The ensuing paragraphs summarize sub-fora’s work plan in assisting in the implementation of the Trade Facilitation Principles.
   

Summary of Actions

1. The Market Access Group (MAG) will focus on improving members’ understanding of the strategic concept of trade facilitation. It will organize seminars/workshops to improve members’ awareness of best practices to facilitate trade, as well as publicize members’ trade facilitation achievements to help make the wider APEC community aware of the efforts underway. The MAG will also encourage members to enhance the transparency of their tariff regimes and non-tariff measures.
   
2. For the Group on Services (GOS), it hopes to improve members’ understanding of how to implement good regulatory practices through identification of operational measures that promote regulatory transparency.
   
3. The initiatives proposed by the Investment Experts’ Group (IEG) concern mainly the principle of transparency. Apart from conducting studies on policies relating to mergers and acquisitions and venture capital investment, the IEG will also continue organizing Investment Symposium and Investment Mart with a view to providing more handy information on members’ investment regimes to the private sector.
   
4. The Sub-Committee on Standards and Conformance’s (SCSC) work is closely related to the Principle of “Harmonization, Standardization and Recognition”. The SCSC has been advancing trade facilitation by aligning APEC members’ domestic standards with international ones, pursuing recognition of conformity assessment, promoting cooperation for technical infrastructure development, and ensuring the transparency of the standards and conformity assessment of APEC economies.
   

6.. As for the Sub-Committee on Customs Procedures (SCCP), it aims to promote the cooperation amongst the Customs administrations of APEC economies to simplify and harmonize customs procedures. Technical assistance programmes on application of the Harmonized System Convention, implementation of the Kyoto Convention, risk management techniques, express consignment clearance, etc will be organized to build up members’ capacity in facilitating trade. The SCCP will also promote customs-business partnership in the furtherance of facilitation work.

1. The trade facilitation work undertaken by the Intellectual Property Rights Experts’ Group

(IPEG) concentrates on three fronts. Firstly, to enhance the transparency of the information

1. members’ IPR regimes. Secondly, to promote harmonization of IPR-related administrative procedures such as Trademark Application Form. And thirdly to encourage

electronic processing of IPR-related procedures.

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1. Regarding the Competition Policy and Deregulation Group (CPDG), it will keep on organizing training programmes to assist economies to build up transparent and high quality regulatory regimes.
   
2. The Government Procurement Experts’ Group (GPEG) in 2002 focuses primarily on transparency and capacity building. The voluntary reviews and reports on members’ GP regimes against the Non Binding GP Principles will be carried out. A capacity building programme on e-government is also being developed.
   
3. Similar to a number of other sub-fora, the Informal Experts’ Group on Business Mobility

(IEGBM) will also actively pursue implementation of the Trade Facilitation Principles through capacity building projects. The Group continues to set service standards in

specific areas in immigration processing, such as pre-arrival, entry, stay and exit, and then develops cooperative capacity building projects to assist economies to achieve such standards with a view to contributing to the reduction of transaction costs to business.

Assessment and Suggested Ways Forward

11. The above suggests that sub-fora are focusing mainly on promoting transparency of trade- related measures and building the capacity of member economies in implementing the Trade Facilitation Principles. However, we should not simply conclude that Trade Facilitation Principles other than “Transparency” and “Cooperation” are left unattended by sub-fora. The coverage of sub-fora’s work programmes has been fairly wide to encompass a number of Trade Facilitation Principles. That notwithstanding, we should acknowledge that given the strong emphasis on capacity building, the economic benefits brought by sub-fora’s current work might not be seen as very impressive by the business sector.

12. With the impending endorsement of the Menu of Concrete Trade Facilitation Actions and Measures by Leaders/Ministers in this October, it is recommended that sub-fora should sharpen their focus in advancing trade facilitation work beginning next year. The collective actions pursued by sub-fora should aim to complement those action items selected by economies by organizing tailor-made capacity building programmes. Sub-fora should also

be more active in developing results-oriented initiatives with specific and tangible benefits to the business. This is the most direct way to demonstrate that APEC is really getting results for business. Where possible, sub-fora may consider adopting a staged approach to advance trade facilitation work – to organize capacity building programmes in the first stage,

and as a logical next step to proceed to substantial work, preferably with quantitative performance targets set, so as to deliver tangible benefits to the business in the subsequent

stage.

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Measures/Activities Undertaken by Sub-fora that Respond to Trade Facilitation Principles (TFPs)

{Year} Individual Action Plan for {Name of Economy}

Highlights on Trade Facilitation Work

In the Shanghai Accord, APEC Economic Leaders committed to implement the Trade Facilitation Principles with a view to reducing the transaction costs in

the region by 5% by 2006. Recognizing that individual economy’s actions are important in realizing the Leaders’ commitment, members agreed at SOM II,

2002 that a report format should be developed for member economies to highlight their major trade facilitation achievements in their IAPs. This report format largely resembles that of individual IAP chapters. While this report is to be submitted together with the IAP, uploading it to the e-IAP website is not required.

^{(Note 1)} _{As customs procedures, standards and conformance, and mobility of business people are major areas for trade facilitation, separate entries for reporting initiatives, if}

any, in these TILF areas are designated. For improvements implemented in the remaining TILF areas (viz tariffs, non-tariff measures, services, investment, intellectual property rights, competition policy, government procurement, deregulation/regulatory review and reform, implementation of WTO obligations (including rules of origin), dispute mediation, and information gathering & analysis), please report them, if any, under “Others”.

^{(Note 2)} Economies may select the more important cumulative improvements since the adoption of the Shanghai Accord for reporting. Hence not all initiatives reported in the current year column have to be repeated as cumulative improvements.

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Case Study of a Trade Facilitation Initiative

[Outline one or more particularly significant trade facilitation initiative, as considered appropriate, taken in current year which can deliver

direct benefits to the business sector.]

Key Improvements Planned for {Next Year}

[State a few significant initiatives, preceded by the titles of the relevant TILF areas, that your economy will undertake next year to facilitate

trade. Short descriptions of the initiatives would suffice as their details can be found in the respective IAP chapters.]