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APEC MODEL MEASURES FOR TRADE FACILITATION IN RTAS/FTAS

APEC Model Measures for Trade Facilitation in RTAs/FTAs

APEC Ministers Responsible for Trade at their meeting in Jeju on 2 and 3 June 2005 instructed Senior Officials to develop possible model measures on trade facilitation for RTAs/FTAs. Ministers agreed that transparency, consistency, release of goods, modernisation and paperless trading, risk management, cooperation, fees and charges, confidentiality, express shipments, review and appeal, penalties, and advance rulings should be core elements of the trade facilitation chapters of RTAs/FTAs in the region.

The following model measures respond to the instruction of Ministers. They build on the Best Practices for RTAs/FTAs adopted by APEC members in 2004. They are not exhaustive, but they are designed to help members give effect to the Best Practices and to contribute to the Bogor Goals by identifying RTA/FTA provisions that can facilitate trade and reduce transaction costs for business, bearing in mind the general APEC principle of voluntarism.

These model measures are not mandatory, but they are indicative examples to provide members with useful reference in negotiating RTAs/FTAs. They are a guide to the kind of provisions that might be included in the free-trade agreement, where appropriate. They will not prejudice the positions of members in their future negotiations either in the FTAs/RTAs or WTO.

Transparency

Regulates the accessibility of trade laws and regulations.

• publish trade-related laws, regulations and procedures and general administrative procedures in at least one accessible media or on the Internet
• publish in advance any regulations of general application governing customs matters that a party proposes to adopt, and give interested persons the opportunity to comment before their adoption
• provide contact points to address inquiries by interested persons concerning customs matters.

Impartial administration, consistency and predictability Sets out the approaches to administration procedures.

• provide for impartial administration and enforcement of trade procedures
• rules and procedures relating to trade provide clear and precise procedural guidance and are applied in a consistent, predictable and uniform manner
• minimise the incidence and complexity of import and export formalities and simplify import and export documentation requirements
• relevant laws, regulations and policies seek to eliminate arbitrary or
  unnecessary procedural obstacles to international trade
• agencies responsible for import and export procedures coordinate their activities to minimise costs to business.

Release of goods

Sets out rules applying to release of goods.

• goods are released at a location and within a time no longer than required to ensure compliance with the trade-related laws of each economy
• procedures are available to release goods upon payment of security where this is required to ensure that obligations are met
• simplified procedures for low-value or low-risk goods.

Modernisation and paperless trading

Usually at least an undertaking to rely as much as possible on modernisation and paperless trading.

• create a climate conducive to the modernisation of business procedures and adoption of new technologies
• use automated systems and electronic documentation based on international standard formats, where available and practicable
• consultation mechanisms for promoting greater exchange of electronic information are available.
• align procedures, documentation and data requirements related to the release of goods with international standards and recommended practices to the extent permitted by domestic laws and policies
• work towards establishing a “single window” mechanism for submission of required data.

Risk management

Usually an undertaking that the parties will rely on risk management to improve clearance times.

• encourage risk management systems (i) to concentrate on inspection of high-risk goods and facilitate the movement of low-risk goods and (ii) to provide for verification of origin.

Cooperation Sets out the framework for cooperation between the authorities.

• advise the other party of significant changes to laws and policies related to the admission of goods and exchange other relevant information
• cooperate in eliminating unlawful activities in trade falling under the agreement – provide technical assistance for activities covered by the model measures.

Fees and charges

Explains how the parties deal with administrative fees and charges.

• fees and charges connected with import and export of goods are limited to the approximate cost of the services rendered
• publish details of fees and charges connected with importation and exportation and post such information on the Internet
• periodically review and consolidate and reduce the number and diversity of fees and charges.

Confidentiality

Sets out rules on confidential information protection.

• protect confidential information and provide certainty regarding conditions for the dissemination and exchange of such information.

Express shipments

Sets out rules applying to express shipments.

• adopt express shipment procedures that will expedite clearance.

Review and appeal

Defines the conditions under which an exporter or importer may appeal against any decision by authorities against goods traded under the agreement.

• establish a framework for expeditious resolution of disagreements over decisions related to the import and export of goods
• provide for periodic review their procedures related to the import and export of goods with a view to their further simplification and the development of further mutually beneficial arrangements to facilitate trade.

Penalties

Sets out rules on penalties for violation.

• measures are available for the imposition of civil or administrative penalties and criminal penalties, where appropriate, for violations of laws and regulations that relate to the import and export of goods.

Advance rulings

Permits exporters and importers to seek advice on classification and preferential treatment of a good to be traded.

• written advance rulings concerning tariff classification, country of origin, valuation, and advice on qualification as an originating good are available to importers, exporters and producers
• procedures for obtaining advance rulings are specified – time limits for issuing advance rulings are specified, on the assumption that all the necessary information is submitted and correct
• advance rulings may be modified or revoked if they are based on errors in the information supplied or application of the law, or where there is a change in law consistent with the agreement, a change in a material fact, or a change in the circumstances on which the ruling is based
• authorities may decline to issue a ruling in specified circumstances.