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Trade Facilitation Nisha Taneja Plan of the Presentation • Key recommendations based on proposals made by Members following the Doha mandate • Key features of the July Package • Implications for India Summary of Proposals and Recommendations: Article X Proposal Recommendation 1. Advance Rulings Scope of existing regime limited/Accept 2. Use of Electronic media In existence/Accept 3. Enquiry points Accept 4. Consultative mechanism Already recommended/Accept 5. Appeal Existing in Customs/Accept for DGFT Summary of Proposals and Recommendations: Article VIII Proposal Recommendation 1. Levy of fees and charges Proposal envisages codification of existing interpretation/Accept 2. Injecting GATT Principles - Non-discrimination, transparency and predictability Accept Least trade restrictiveness Accept 3. Provisions to reduce documentation procedures - Single administrative data set Accept on best endeavour basis One time presentation to single agency Accept on best endeavour basis Adoption of a uniform domestic customs code Existing Risk assessment methods Accept on best endeavour basis Automation Accept on best endeavour basis 4. Standard processing times Accept on best endeavour basis Summary of Proposals : Article V Proposal Simplification of procedures Comment Accept on best endeavour basis Additional inspection for sensitive items Accept Additional inspection for goods requiring transshipment Accept Publication of list of sensitive items Accept Regional transit arrangements International standards In existence with Nepal/ Accept for other countries Accept on best endeavour basis The Singapore Issues • In the July package it was decided to drop the other three Singapore issues and start negotiation for an Agreement in Trade Facilitation. The modalities were given in Annex D of the July package Annex D Para 1 Negotiations shall aim to clarify and improve relevant aspects of Articles V, VIII and X. Negotiations shall also aim at enhancing technical assistance and support for capacity building. The negotiations should take into account effective cooperation between customs and any other appropriate authorities. Para 2 The negotiations shall take fully into account the principle of special and differential treatment. Members recognize that this principle should extend beyond the granting of traditional transition periods. In particular, the extent and the timing of entering into commitments shall be related to the implementation capacities of developing and least-developed Members and these Members would not be obliged to undertake investments in infrastructure projects beyond their means. Para 3 • Least-developed country Members will only be required to undertake commitments to the extent consistent with their individual development and capabilities Para 4 • Members shall seek to identify their trade facilitation needs and priorities, particularly those of developing and least-developed countries, and shall also address the concerns of developing and least-developed countries related to cost implications of proposed measures. Paras 5 and 6 • The modalities recognize that the provision of technical assistance and support for capacity building is vital for developing and leastdeveloped countries to enable them benefit from the negotiations. Members, in particular developed countries, therefore commit themselves to adequately ensure support and assistance for capacity building and implementation of commitments resulting from the negotiations Key Concern • The Agreement on modalities makes no reference to the applicability or otherwise of WTOs Dispute Settlement Procedure Other Concerns • What if the Negotiating Group on TF takes as long as the Negotiating Group on ROO which has not reached a consensus in 10 long years? • India will still have to continue with its TF efforts because even though it is important to reduce transaction costs what will determine a country’s competitiveness is the speed at which transaction costs are reduced compared to other countries (assuming that other things are equal) Thank You!