FACILITATING INTRA-OIC TRADE:
Improving the Efficiency of the Customs Procedures in the OIC Member States
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Box 2: WTO Trade Facilitation Agreement
The 9th WTO Ministerial Conference held on 3-6 December 2013 in Bali, İndonesia decided to conclude the
WTO Trade Facilitation Agreement, which has been negotiated by the WTO Members in recent years. The
Conference also decided that:
“The General Council shall meet no later than 31 July 2014 to annex to the Agreement notifications of
Category A commitments, to adopt the Protocol drawn up by the Preparatory Committee, and to open
the Protocol for acceptance until 31 July 2015. The Protocol shall enter into force in accordance with
Article X:3 of the WTO Agreement.” (WT/MIN(13)/W/8)
The Agreement is an important milestone towards facilitating the global trade, especially increasing the efficiency
of the customs procedures for enabling the flow of goods across borders more smoothly. The Agreement is
composed of two main sections. The first section is composed of thirteen articles which are setting the rules for
facilitating trade:
Article 1: Publication and Availability of Information
Article 2: Opportunity to Comment, Information Before Entry into Force and Consultation
"Article 3: Advance Rulings
Article 4: Appeal or Review Procedures
Article 5: Other Measures to Enhance Impartiality, Non-Discrimination and Transparency
Article 6: Disciplines on Fees and Charges imposed on or in Connection with Importation and
Exportation
Article 7: Release and Clearance of Goods
Article 8: Border Agency Cooperation
Article 9: Movement of Goods under Customs Control Intended for Import
Article 10: Formalities Connected with Importation and Exportation and Transit
Article 11: Freedom of Transit
Article 12: Customs Cooperation
Article 13: Institutional Arrangements
One of the most important feature of the WTO Trade Facilitation Agreement is its special and differential
treatment provisions for the Developing Countries and the LDCs. According to the provisions, there are three
categories namely A,B and C. Each developing country or LDC will designate for itself these categories. The
Category A commitments to be notified by the Developing Country or an LDC shall be implemented upon entry
force of the Agreement. The Category B commitments to be implemented later if it is notified to the Committee
and the Category C commitments are the ones which require assistance. The agreement has different provisions
for the developing countries and the LDCs on Category B and C commitments. The Agreement also envisages a
special treatment on dispute settlement for the Developing countries and the LDCs. For example, for the Category
A commitments, the provisions of GATT Articles on Dispute Settlement will not apply to the developing
countries for two years and to the LDCs for six years.
In order to make the capacity building activities to be provided within the framework of the Agreement more
effective, the following principles are adopted (Section 2, 9/3):
a. Take account of the overall developmental framework of recipient countries and regions and, where
relevant and appropriate, ongoing reform and technical assistance programs;
b. Include, where relevant and appropriate, activities to address regional and sub-regional challenges and
promote regional and sub-regional integration;
c. Ensure that ongoing trade facilitation reform activities of the private sector are factored into assistance
activities;
d. Promote coordination between and among Members and other relevant institutions, including regional
economic communities, to ensure maximum effectiveness of and results from this assistance.
e. Encourage use of existing in-country and regional coordination structures such as roundtables and
consultative groups to coordinate and monitor implementation activities; and
f. Encourage developing countries Members to provide capacity building to other developing and least
developed country and consider supporting such activities, where possible.
Source: WTO Ministerial Decision on Trade Facilitation (WT/MIN(13)/W/8)