CHAPTER 1

CONCEPTUALIZATION OF TRADE FACILITATION

TRADE FACILITATION
~ standardized procedures help trade faster and easier
- Main objective: simplify the process and minimize transaction costs in internaitonal trade, while
maintaining effective levels of govt control
 Transparent and efficient implementation of trade rules and regulations
Benefits of TF
- Improved trade competitiveness
- Increase FDI
- Increase participation of SMEs in international trade
- Improved economic growth prospects
Costs of implementing TF meausres
- Institutional costs
- Regulatory and legislative costs
- Equipment/infrastructure cost
- Awareness-raising and change-mangement costs
TF principle (4 pillars): transparency, simplification, standardization, harmonization
(1) Transparency
~ promote openess and accountability of a govt’s and administration’s actions
- It entails disclosure of info in a way that the public can readil access and use it
- This info may include laws, regulations and administrative decisions of general application, budgets,
procurement decisions and meetings
- Regulatory info should be published and disseminated, when possible, prior to enforcement to
allow parties concerned to take note of it and make necessary changes
- Relevant stakeholders and the general public should be invited to participate in the legislative
process, by providing their views and perspectives on proposed laws prior to enactment
(2) Simplification
~ the process of eliminating all unnecessary elements and dupllicatoins in trade formalities, processes and
procedures
(3) Harmonization
~ the alignment of national procedures, operations and documents with international conventions, standards
and practices
- It can come from adopting and implementing the same standards as parter counties, either as part of a
regional intergration process or as a result of business decisions
(4) Standardization
~ the process of developing formats for practices and procedures, documents and information internationally
agreed by various parties
- Standards are then used to align and, eventually, harmonize practices and methods
 To achive these principles, full cooperation between govt authorities and with the business
community is essential
TF measures
- General TF: Transparency Formalities, Institutional, Arrangement and cooperation, and Transit
facilitation
- Digital TF: Paperless trade and Cross-border paperless trade
- Sustainable TF: Trade facilitation for SMEs, Agricultural trade facilitation, and Women in trade
facilitation
- Other TF: Trade finance facilitation
 TF in times of crisis

💡 CPTA: Agreement on Facilitatoin of Cross-border Paperless Trade in Asia and the Pacific

💡 LDCs: Least Developed Countries

💡 LLDCs: Landlocked Developing Countries

💡 SIDs: Small Island Developing States

CHAPTER 3
PUBLICATION AND ADMINISTRATION OF TRADE REGULATIONS
STATE OF PLAY
 Limited data
- Cross-country data on trade-related rules, regulations, procedures (which and how they are published)
- Info on the quality of administration of trade-related rules
IMPACT ON TRADE
Administratoin on trade when facilitated effectively and efficiently can
- Reduce corruption & increase transparency lead to lower costs of trade
- Limit the situation that public officials slow the flow of goods, increase time & trade costs
Benefits of effective publication and efficient administration
- Government
 Optimized deployment of resources
 Correct revenue yield
 Improved trader compliance
 Enhanced security
 Increased transparency
 - Traders
 Cutting costs through reducing delays
 Faster Clearance & Release
 Prefictable application and explanation of rules
 Effective & efficient deployment of resources
BASIC PRINCIPLES AND PRACTICES
(1) Trade-related laws, regulations, procedures and documents should be made publicly available
and easily accessible
- Relevant information (regulations, laws, procedures, and related documents) should be made available
to public authorities and stakeholders
- Regulations are not only published in the national language but also need to be published in a foreign
language
- Info should be published on the Internet so that it can be easily accessible by the business community
(2) Establish enquiry points điểm cung cấp thông tin to answer questions on complex trade and
customs rules, regulations and procedures
- Establishing information consultation points is an effective way to increase information transparency
- Contribute as a tool to increase access to trade-related information
(3) Reasonable intervals between publication and implementation thu hẹp khoảng cách giữa…
- Publication of new or revised laws and regulations should be published
- TF measures will not work until they are officially published
- There should be a reasonable timeframe from the date of publication announced until it is
implemented to adjust business activities to the new law and regulations
(4) Establish machanisms for prior consultation cơ chế tư vấn ưu tiên on new or amended laws and
regulations
- Governments have the right to revise or publish new trade laws and regulations when implementing
international commitments, or modernizing procedures
- Establish a regular consultation mechanism to minimize negative impacts, increase predictability
and improve the quality of relevant regulations
(5) An effective appeal mechanism cơ chế kháng cáo should be put in place
- There should be a mechanism for traders to contribute comments to improve the implementation
and application of relevant regulations
- Can provide traders faster and cheaper means to deliver solutions than courts
(6) Customs rulings should be provided on time and before the relevant trade transaction upon the
written request Quyết định của cơ quan hải quan cần đc cung cấp đúng hạn và trc các giao dịch liên
quan trên cơ sở yêu cầu bằng văn bản
- Many countries have established efficient systems that allow merchants to determine tax
classification, valuation, and origin
 - Customs authorities should assist if required to provide traders with complete and accurate
information needed
- Provides the trading community with greater commercial predictability and certainty: traders can
know in advance what tariff would be applied; or what tariff duties they will have to pay; should they
proceed with the transaction

CHAPTER 4
TRADE PROCEDURES AND DOCUMENTS
Trade procedures ~ the activities, practices, formalities required for the movement of goods in international
trade
 4 categories: Commercial; Transport; Regulatory; Financial
Trade documents ~ info provied and exchanged between parties in paper or electronic forms
STATE OF PLAY
💡 Export procedures
Document preparation -> Customs clearance and technical control -> Port and terminal handling -> Inland
transportation and handling
 Too many documents
 Too many days needed to complete each stage
BASIC PRINCIPLES AND GOOD PRACTICES
(1) Trade procedures, data, and documents should be based on international conventions, standards,
and other relevant instruments
- Countries should harmonize their procedures, data, and documentary requirements with international
conventions, standards and other relevant instruments
- Procedures, data, and documentary requirements should be improved based on transparency and
predictability
(2) Minimalize data and documents
- Aligned to international standards
- Analyze and review to identify redundant or unnecessary documentation
- Accept copies of documents and electronic documents
- Allow single window facility triển khai cơ chế 1 cửa để chỉ cần cấp phép 1 lần cho thủ tục yêu cầu
XNK, quá cảnh,…
(3) Simplify clearance and release procedures
- Pre-arrival processing of documents xử lý chứng từ trc khi hàng đến
 The customs authority should allow traders to submit clearance data before arrival of the
consignment.
  The data should be processed and analyzed without delay so that consignments can be released
immediately upon arrival.
 Applying a mechanism allowing for release based on the provision of a (financial) guarantee to
customs when duties and other charges are not determined on or before arrival Áp dụng cơ chế bảo
lãnh tài chính hay bảo lãnh hải quan khi thuế và các khoản phí khác chưa xác định được khi và
trước khi hàng đến
- Computerization and automation of customs and other border agency procedures tin học hóa và
tự động hóa các thủ tục hải quan và thông quan thế giới
 traders presenting customs declarations, and other supplementary documents electronically.
 electronic payment of duties, taxes, and fees
- Risk management systems
 Such systems allow the identification of the risk level associated with a particular shipment
according to specific (nondiscriminatory) criteria, and based on the analysis of available
information.
 The objective is to ease the clearance and release of low-risk consignments, and to identify high-
risk consignments for inspection
 Such systems should be based on international standards and practices.
- Post-clearance audit hậu ktra sau thông quan
 A customs authority may release the majority of consignments upon arrival with compliance
verification at a later time.
 The post-clearance audit system allows the release of low-risk imports with minimum customs
intervention at the border.
- Authorized traders schemes cơ chế thương nhân ưu tiên
 should be developed for highly compliant traders.
 These schemes provide additional facilitation measures to traders who demonstrate a high level of
compliance with import and export requirements
 Harmonization and mutual recognition of authorized traders schemes with partner countries should
be pursued to the extent possible.
- Coordination of border control procedures kiểm soát biên giới
 ensure that clearance of documents and physical control of consignment by all agencies are
conducted at a single point and time.
 Coordination and cooperation may further include the alignment of working days and hours,
development and sharing of common facilities, and development of procedures for exchange of
non-confidential information.
 CHAPTER 5
PRODUCT STANDARDS AND CONFORMANCE
INTRODUCTION
Product standards ~ specific characteristics of a product (size, shape, design, functions, performance, the
way it is labeled or packaged) before it is put on sale.
 Often referred to as technical regulations or sanitary and phytosanitary measures, and governed by
WTO agreements on TBT (Technical Barriers to Trade) and on SPS measure

Objectives
- Protect human safety and health
- Protect animal, plant life and health
- Protect environment, consumers against deceptive practices
- Ensure quality
- Promote trade and technical harmonization
Costs of differing national product standards
- Economies of scale are lost
- Compliance with technical regulations generally needs to be confirmed through testing, certification,
or inspection by laboratories or certification bodies (exporter’s expense)
- The existence of technical standards generates information costs (for evaluating the technical impacts
of foreign regulations on the production process, translating and disseminating product information,
and training experts)
- Exporter may face additional unexpected costs if confronted with new regulations
STATE OF PLAY
- Technical and sanitary standards and requirements are among the most problematic trade facilitation
issues.
- key concern from a TF perspective is the efficiency of the conformity assessment procedures
- Developing countries have reported various problems related to conformity assessment procedures
IMPACT OF PRODUCT STANDARDS ON TRADE
- Nontariff barriers (technical requirements and standards, SPS) pose a major challenges to economists
- Improve health, safety, evironment conditions
- Transparent regulations promote market internationally and domestically
- Divergent standards may create undesirable bias in favor of domestic firms

TBT AND SPS AGREEMENTS

~ set out the principles and rules in the areas of standards and conformance

TBT Agreement
- Technical regulations
 - Voluntary standards
- Conformity assessment procedures
 applies to regulations, standards, and procedures in both industrial and agricultural products
except when they are SPS measures.

SPS measures
~ regulations imposed on some agricultural products to
- Ensure food safety for both humans and animals
- protect human life from plant or animal-carried diseases
- protect animals and plants from pests and diseases

💡 SPS measures protect

- human/animal health: from additives, contaminants, toxins, disease organisms in

food/drink/feedstuff
- human life: from plant or animal-carried diseases
 rabies
 Avian influenza (bird flu)
- animal/plant life: from pests, diseases, disease-causing organism
 FMD (Foot and Mouth Disease in cattle)
 Fruit flies
- a country: from other damage casued by entry, establishment or spread of pest
 zebra mussels trai vằn through ballast water of ships
 exotic weeds

SPS TBT
- Human or animal health from food-borne risks - Human disease control (unless it’s food safety)
- Human health from animal or plant- carried - Nutritional claims
diseases - Food packaging and quality examples:
- Animals or plants from pets or disease: pesticide * labelling (unless related to food safety)
residues; food addictives * pesticide handling
* seat belts
- Right to restrain trade when necessary to protect - Right to restrain trade when necessary to fulfill
health legitimate objectives (including health)
- Measures based on scientific principles - Technical regulations take into consideration inter alia
available scientific and technical information
- Non- discrimination - Non- discrimination
- No disguised restrictions - No disguised restrictions
- Transparency - Transparency
- Harmonization to international standards - Use of ‘relevant” international standards

BASIC PRINCIPLES
(1) Nondiscrimination
- Technical regulations should accord products imported from any country a treatment no less favorable
than similar products of national origin or originating from any other country
(2) Avoidance of unnecessary obstacles to trade
- Technical regulations should be made no more restrictive than necessary to fulfill legitimate objective
- They should be based on the risk associated with noncompliance, which should be assessed according
to information, and intended end uses products.
(3) Harmonization
- Technical regulations should, to the extent possible, be based on relevant international standards
developed by international standard setting organizations (FAO), ISO, UNECE, WHO…
(4) Transparency
- Technical requirements should be prepared, adopted, and applied in a transparent manner

💡 Good practices includes

- Allowing at least 60 days for a submission of comments on a draft standards

- providing copies of the draft to interested domestic and foreign parties
- Incorporating relevant comments received in the final standard and explaning
- publishing the standard once it has been adopted
- Notifying trading partners (through WTO) and allowing sufficient time for interested parties to get
acquainted with the standard before it is enforced.
(5) Equivalence and mutual recognition
- Technical regulations and standards in foreign countries should be recognized as equivalent provided
they fulfill or satisfy the objectives of national regulations
- Whenever possible, countries should seek to mutually recognize each other standards and
regulations
FACILITATING CONFORMITY ASSESSMENT đánh giá hợp chuẩn
~ demonstration that specified requirements relating to a product, process, system, person or body are fulfilled
(International Standard ISO/IEC 17000)
- Testing
- Inspection
- Certification
❗ One of the crucial decisions for governments is whether to make conformity assessment mandatory through
regulations in specific sectors, or to rely on the market to determine in a voluntary manner the conformity
assessment requirements within normal transactions between buyers and sellers
 This decision should be based on
- Risk assessment involved with a particular product or process
- Understanding of the impact a newly proposed regulation will have on trade and sustainable
development
General principles
- Nondiscrimination
- Harmonization
- Transparency
Good practices
(1) Limit the amount of required information to what is necessary to assess conformity and
determine fees
(2) Complete conformity assessment procedures as expeditiously as possible càng nhanh càng tốt
(3) Unilaterally accept công nhận tương đương the results of the conformity assessment procedures
in other countries whenever possible.
(4) Allow conformity assessment bodies located in foreign countries cho phép thành lập các cơ quan
đánh giá hợp chuẩn ở nước ngoài
❗ Important for developing countries
- Follow conformity assessment guides and recommendations issued by international standardizing
bodies
- Negotiate mutual recognition agreements for conformity assessment
- Develop an internationally accredited national accreditation system for conformity assessment bodies

CHAPTER 6
TRADE RELATED INFRASTRUCTURE AND SERVICES
Trade-related infrastructures and services ~ infrastructures and services that has a direct impact on the
international trade of goods
 These can be understood as all the material and technical conditions, functions and social
institutions equipped with material and environmental elements that helps them serve the
production line as well as in daily life.
❓Role of infrastructure and services in TF
- Reduce trade costs
- Maximie its positive impact on trade flow
CLASSIFICATION
(1) Hard infrastructure (physical)
- Transport
- Logistics
- Telecommunication
 3 factors that have closet link to trade
(2) Soft infrastructure (regulatory)
- Border and transport efficiency
- Business and regulatory environment
💡 LPI (Logistics Performance Index) chỉ số hiệu suất logistics
~ a global benchmarking tool designed to help countries identify the challenges and opportunities they face
in terms of their trade logistics performance
7 performance areas which are rated
- efficiency and effectiveness of customs and border procedures
- quality of transport and information technology infrastructure for logistics
- ease and affordability of arranging international shipments
- competence of the local logistics industry
- ability to track and trace international shipments
- domestic logistics costs
- timeliness of shipments in reaching their destinations

💡 GCI = Global Competitiveness Index

💡 ETI = Energy Transition Index
IMPACT ON TRADE
Positive impact
- increase trade flow
- recude commercial costs
- enahce trade competitiveness
- poverty alleviation
Negative impact
- public debt
BASIC PRINCIPLES AND GOOD PRACTICES
(1) Transparency
- Enhance related regulations transparently and comprehensively
- Publicly evaluate and debate abt regulations and procedures
- Private parties are allowed to comment on proposed regulations, involed more in regulatory process
- Publish procedures and regulations before their entry into force
(2) Competition
 - regulatory objectives should be pursued using market-based mechanisms
- Development of trade-related infrastructure and service sector regulatory frameworks should aim to
promote, rather than restrict, competition among market actors
- pursuing the objective of lowering costs for importers and exporters
- monopoly restrictions related to transport, logistics, telecommunication
(3) Nondiscrimination
- Not hinder new businesses from enterring
- Treat foreign enterprises in the same way as domestic enterprises
- applies to both regulatory and design framework infrastructure
(4) Holistic approach tiếp cận tổng thể
 holistic approach to effective regulation and liberalization
- Consider the impact of reforms on other areas
- This holistic approach to regulatory reform is essential to take account of actual business needs.
(5) Progressive liberalization and forward looking stance sửa đổi cải cách theo tiến trình có xét đến
phát triển
- Infrastructure and service reform must be done step by step
- Infrastructure and service reforms must be made according to the economc conditions of each country
- Regulators need to consider tech development trends
- Amendments and reforms need the support of new tech to meet market demands

CHAPTER 7
TRANSIT TRADE
Transit trade ~ a country’s foreign trade that passes through a third country prior to reaching its final country
of destination (thương mại quá cảnh)
Traffic in transit ~ the goods and means of transport passing through a third country on their way to the final
country of destination
 goods, means of transport as well as its operator are subject to territory-specific laws and
regulations, administrative requirements, commercial practices and operations and technical
standards
STATE OF PLAY
- differences in trade environment between 2 countries create trade barriers
- result in additional costs and delays
GUIDING PRINCIPLES AND GOODS PRACTICES
- GATT/WTO Art. V (Freedom of Transit)
- Annex E of the WCO Revised Kyoto Convention
- TIR Convention
- TFA
Principles
(1) Freedom of transit
- Traffic in transit should be able to travel freely and by the most convenient route
- Transit goods should be exempt from customs duties and only subject to reasonable charges for
transportation and/or reasonable transit charges
(2) Nondiscrimination
- All traffic in transit should be treated equally and provided the same best treatment
(3) Transparency and avoid unnecessary trade restrictions
- Should inform the partner about any restrictive meausres
(4) Principles and practices in Chap 1 on publication and administration of trade regulations also
apply to transit trade
Measures
- Grant traffic in transit expedited and simplified treatment at the border hỗ trợ giao thông quá cảnh đc
xử lý nhanh chóng và đơn giản hóa
- Establish an effective customs guarentee system hệ thống bảo lãnh hải quan for goods in transit
- Strengthen coordination and cooperation between authorities on both sides of the border
BILATERAL AND REGIONAL TRANSIT AGREEMENTS
The functional components of a transit agreement may include
- facilitation of the border crossing of cargo, including the cargo customs transit regime, SPS and/or
quarantine regime, and definition of categories of prohibited or restricted goods
- facilitation of the crossing of containers (a temporary admission customs regime), including measures
related to the professional activity of transport operators, mutual recognition of transport operator
licenses (access to the profession), and exchange of road traffic rights (market access)
- facilitation of the crossing of people engaged in transport operations (crew, drivers of commercial
vehicles), including long-term multiple entry visas, health inspections, customs exemptions for
personal effects, and recognition of driving licenses
- facilitation of the crossing of commercial road vehicles, including registration, technical standards,
roadworthiness certification, third-party motor vehicle liability insurance, and the customs regime for
temporary vehicle importation
- infrastructure and equipment, including harmonization of road and bridge design standards and of
road signs and signals;
- coordination of border crossing infrastructure construction and equipment installation
- other facilitation measures related to transit including transparency of legislation, regulations,
administrative procedures, and documents; refraining from charging non-cost-related levies, duties,
taxes, and other charges on transit operations; nondiscrimination and national treatment principles;
preventing distortion of free competition; facilitation of border crossing formalities; use of a common
 language, measurement units, and software; resolution of border disputes; cooperation in combating
customs fraud and tax evasion; and institutional arrangements

CHAPTER 8
TRADE FACILITATION AGREEMENT
💡 GATT = General Agreements on Tariff and Trade
TFA
 Clarify and improve relevant aspects of GATT Articles V, VIII, and X
Target
- TF and compliance rules
- Coordination
- Transportation and clearance of goods
- Technical assistance and capacity building
Structure
- Section I: technical part
- Section II: Special provisions for developing and least developed country members
- Section II: final provisions and institutional arrangements
Advanced rulings thông báo kết quả xác định trước ~ Binding written decision provided by a member to an
applicant prior to the importation of a good. It sets forth the good’s tariff classification and origin (members
are encouraged to provide AR on the method or criteria used for customs value and any other matter)
- Time: delivered in a reasonable, time bound manner
- Binding on that member in respect of the applicant that sought it
- Publicly available information on advanced rulings

💡 Special and differential treatment (S&D) is a set of GATT provisions (GATT 1947, Article XVIII) that
exempts developing countries from the same strict trade rules and disciplines of more industrialized countries.
 developed countries will treat developing countries differently.