RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/273
3 July 2001
(01-3314)
Council for Trade in Goods Original:  English
APEC PRINCIPLES ON TRADE FACILITATION
Communication of Hong Kong, China
The following communication, dated 29 June 2001, has been received from the Permanent
Mission of Hong Kong, China.
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Hong Kong, China is pleased to circulate the attached APEC1 Principles on Trade
Facilitation2 which were endorsed by APEC Ministers Responsible for Trade when they met on 6-7
June 2001 in Shanghai.
Hong Kong, China has been leading an APEC task force since early 2000 in developing the
Principles. We hope that the circulation of the Principles in the WTO will contribute to its
deliberations of this important subject.
The Principles comprise nine important areas:  transparency; communication and
consultations; simplification, practicability and efficiency; non-discrimination; consistency and
predictability; harmonization, standardization and recognition; modernization and the use of newtechnology; ; due process; and cooperation. To enable government officials and the business sector to
better understand the Principles, there are examples under each of them on how they can be applied in
promoting free and open trade.
                                                     
1 Asia-Pacific Economic Cooperation (APEC). comprises 21 member economies: Australia;  Brunei
Darussalam; Canada; Chile; China; Hang Kong, China; Indonesia; Japan; the Republic  of Korea; Malaysia;Mexico; New Zealand, Peru; the Philippines; Papua New Guinea; Russia;  Singapore; Chinese Taipei; Thailand;the United States of America and Viet Nam
2 Neither the Principles nor their circulation should prejudice the position of individual APEC  member
economies in the discussion of trade facilitation in the WTOG/C/W/273
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APEC PRINCIPLES ON TRADE FACILITATION
Reaffirming the key importance of trade facilitation in achieving the Bogor goal of free and open trade
and investment in the Asia-Pacific, in providin g significant benefits for both governments and
business, and in generating welfare gains for the economy as a whole;
Recognizing  that APEC's trade facilitation work plays an important role in improving business
conditions in the region by creating a climate that increases trading opportunities and helps business,
including SMEs, to save time and reduce costs;
Recognizing  that in facilitating trade there should be sufficient, and no more burdensome or restrictive
than necessary, compliance with legitimate policy objectives, such as protection of health and safety,and protection against unlawful activities, such as commercial fraud and trafficking in illegal goods;
Noting  APEC's unique approach in advancing trade facilitation goals on a voluntary basis and in a
cooperative manner with the business sector through the process of individual and collective actions;
Recognizing  and drawing upon the advances already made by  different fora and sub-fora of APEC on
trade facilitation, and taking into account trade facilitation work elsewhere (e.g. the World Trade
Organization) with a view to avoiding duplication;
Noting  that the development of a set of general principles on trade facilitation can provide a stronger
focus for APEC's future work on trade facilitation, add value to trade facilitation initiatives elsewhere,
and assist policy makers and executors of APEC member economies in formulating and implementing
trade measures which are pro-business;
Noting  that trade facilitation generally refers to the simplification, harmonization, use of new
technology and other measures to address procedural and administrative impediments to trade;
Recognizing that trade facilitation is relevant to both goods and services;
Recognizing that the development of trade facilitation principles is guided by the general principles of
APEC in the Osaka Action Agenda;
Recognizing that the principles are non-binding and their implementation by each member economy is
voluntary, taking into account the different levels of economic and technological development among
APEC economies, and their diverse circumstances,  including different legal frameworks, starting
points and development objectives;
Recognizing the importance of technical assistance and cooperation in APEC and their relevance in
the application of the principles by individual member economies in view of their different levels of
development, and acknowledging APEC's role in making available appropriate capacity building
programmes to assist developing members in creating a more conducive business environment;
Recognizing  that some specific elements relating to trade facilitation are also reflected in the existing
WTO framework;
APEC endorses the following principles:
Transparency
Information on policies, laws, regulations, administrative rulings, licensing, certification,
qualification and registration requirements, technical regulations, standards, guidelines, proceduresG/C/W/273
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and practices relating to trade in goods and services (hereinafter referred to as rules and procedures
relating to trade) should be made available to all interested parties, consistently and in a timely
manner, through readily accessible, widely available medium at no cost or a reasonable cost.
Illustrative Examples
Making available to all interested parties up-to-date information on rules and procedures
relating to trade through publications and electronic homepages, and launching publicity on these
avenues.
Providing as much information as possible on rules and procedures, and details of enquiry
points, in economies' e-IAPs.
Communication and Consultations
The authorities should strive to facilitate and promote effective mechanisms for exchanges
with stakeholders, especially business and the tr ading community, and stakeholders' views should be
duly taken into account in the process. Where appropriate, opportunities should be provided for
consultation with stakeholders when formulating, implementing and reviewing rules and procedures
relating to trade, and the authorities should make known their positions.
Illustrative Examples
Setting up customer liaison groups to collect views of stakeholders on services relating to
trade.
Consulting appropriate industry representatives, consumer group representatives and
sectoral/professional bodies in developing regulations or standards - to increase the degree of
confidence on all sides that the reasons for regulation are clearly understood, and to heighten the
likelihood of compliance with measures once they are introduced.
Having discussions or dialogue sessions with stakeholders prior to formulating new rules and
regulations related to trade.
Encouraging standing public-private sector  dialogue and/or cooperative arrangements
between Customs authorities and stakeholders, and setting up Customs inquiry points through the use
of web-sites, help-desks and other avenues to communicate with stakeholders on Customs services
relating to trade.
Simplification, Practicability and Efficiency
Rules and procedures relating to trade should be simplified to ensure that they are no more
burdensome or restrictive than necessary to achieve their legitimate objectives, as well as practicable
and applied in an efficient manner.
Illustrative Examples
Minimizing documentation and procedural requirement and providing one stop shopping
services or coordinating centres.
Providing expeditious clearance for traders who have met the criteria specified by Customs,
or implementing post audit clearance system.G/C/W/273
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With regard to the regulation of services sect or, drawing from "best practice" case studies
identified by APEC service-related fora.
With regard to border measures of assessi ng the conformance of commodities, following a
published schedule, with a gradual reduction in frequency (and costs levied on importers/exporters)to match a continuing good compliance record.
Streamlining processing of business visas and pr ocedures for temporary residence of business
people to improve business mobility in the region.
Non-discrimination
Rules and procedures relating to trade should be applied in a manner that does not
discriminate3 between or among like products or services or economic entities in like circumstances.
Illustrative Example
Charging foreign and domestic entities on an equal basis for trade facilitation services
provided to them.
Consistency and Predictability
Rules and procedures relating to trade should be applied in a consistent, predictable and
uniform manner with integrity so as to minimize uncertainty to the trade and trade related parties.
Rules and procedures relating to trade should provide clear and precise procedural guidance to the
appropriate authorities with standard policies and operating procedures and be applied in a non-
discretionary manner.
Illustrative Examples
Issuing rulings to ensure consistent and predictable administrative decisions.Promulgating "performance pledges" (e.g. a pledge by the licensing authority to the public on
the targeted maximum processing time of a licence application) to ensure consistent and predictableservice standards.
Setting up a central body, such as Classification Centre/Unit, so as to ensure consistent and
uniform interpretation and applications of specific rules and procedures in an economy.
Developing and using Codes of Conduct on Integrity that focus on areas such as impartiality
and avoidance of conflicts of interest, and developing a strategic plan on the promotion of integrity.
Drawing on various themes as outlined under the Arusha Declaration of the World Customs
Organization in the management of operations a nd personnel, including recruitment, training,
internal staff control and retention of stag
Harmonization, Standardization and Recognition
While accepting the need of economies to regulate or set rules for legitimate objectives such
as protection of health, safety or public morals and conservation of exhaustible natural resources,
regulations, rules and procedures affecting the acceptance of goods and services between economies
                                                     
3 The discrimination refers to inconsistency with either the National Treatment or the MFN principle.G/C/W/273
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and markets should be harmonized as far as possible on the basis of international standards where
appropriate. The development of mutual recognition arrangements for standards and conformity
assessment results, and continuing cooperation on technical infrastructure development, are
encouraged. These can help reduce administrative and compliance cost of business in obtaining access
to international markets.
Illustrative Examples
Implementing the Revised Kyoto Convention which aims at facilitating trade through, inter
alia, harmonizing customs procedures.
Implementing a harmonized syst em of customs tariff classification, WTO valuation system
and the ATA Carnet System.
Standardizing to the fullest extent possible data requirements for procedures relating to trade
by building on the work of relevant international fora.
Participating in APEC and other regional projects concerning the mutual recognition of
professional qualification and registration, such as the APEC Registers of Architects and Engineers.
Where rules and procedures differ between trading partners, two trading partners, by mutual
agreement, could perform an assessment on the outcom es which each of the two systems is aiming to
achieve. As a result, agreement can be reached that there is sufficient equivalence of outcome to
accept that assurances from one partner are adequate to satisfy the other's needs, without the industry
or authorities following every step laid down in the second partner's law.
Modernization and the Use of New Technology
Rules and procedures relating to trade should be kept under review, and updated if necessary,
taking into account changed circumstances, including new information and new business practices,
and based on the adoption, where appropriate, of modern techniques and new technology. Where new
technology is used, relevant authorities should make  best efforts to spread the accompanying benefits
to all parties through ensuring the openness of the information on the adopted technologies and
extending cooperation to authorities of other economies and the private sector in establishinginteroperability and/or interconnectivity of the technologies.
Illustrative Examples
Developing advanced risk management and systematic cargo-profiling techniques by customs
authorities with a view to minimizing physical examination yet maintaining integrity of customs
control.
Developing Customs systems which cater for the submission of pre-arrival cargo information
and post clearance audit systems.
Maximizing the use of information technology, such as computerization, electronic data
interchange (EDI) and internet technology, improving the delivery of trade-related administrative
services, including the use of secure on-line technology to facilitate certification procedures, and
providing an environment for paperless trading, for instance, that stipulated in the APEC Blueprintfor Action on Electronic Commerce.
Organizing technical assistance projects and experience sharing sessions on modern
techniques and new technologies used.G/C/W/273
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Due Process
Access to due process should be available to st akeholders in seeking redress with respect to
the implementation of rules and procedures relating to trade, in accordance with the applicable
legislation of member economies.
Illustrative Example
Introducing clear appeal provisions in the legislation.
Cooperation
The progressive introduction of measures conducive to trade facilitation is best pursued by
close cooperation among government authorities and business and trading communities. Transparent,
efficient and simplified trade facilitation processes necessary to an open trade regime are furthered by
close cooperation and marked by open channels of communication and the exchange of information
between both governments and business. Aside from business and government partnerships,governments should also work in partnership to focus on opportunities for increased cooperation
including : integrated technical assistance and capacity-building; exchanges of best practices critical
to implementing trade facilitation initiatives and the coordination of positions concerning topics of
common interest discussed in the framework of regional and international organizations.
Illustrative Examples
Trade-related administrations to consult, engage and build cooperative partnerships with
stakeholders in the international movement of commercial goods including customs brokers; express
consignment industry; insurance providers; freight forwarders; shippers; warehouses etc.
Customs administrations or regional fora such as APEC (SCCP) to develop cooperative,
capacity-building measures in custom-related areas such as, training; risk assessment; audit and
verification frameworks; customs laboratories; and electronic exchanges of information.
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