Annex 3B Task facilitation provisions in deep trade agreements: Detailed questions

Table 3A.3 Heterogeneous effects of TF provisions on GVC firms

Export participation ln (exp value)

Dependent variable

PTA

(1) (2) (3) (4) (5) (6)

−0.0172** −0.0172** −0.0141** −0.0677 −0.0728 −0.0430

(0.00709) (0.00709) (0.00614) (0.119) (0.119) (0.0878) … TF provisions 0.0247*** 0.00334 0.0149 0.309** −0.335** 0.0962 (0.00900) (0.0101) (0.00909) (0.134) (0.161) (0.158)

… TF provisions × GVC firm 0.0434***

(0.00913) 0.774***

(0.139)

… TF provisions × bilateral GVC firm 0.0960***

(0.0194) 0.775***

(0.111)

… Depth

Observations 0.00661 0.00661 0.00284 −0.267 −0.255 −0.421***

(0.0125) (0.0125) (0.0106) (0.171) (0.172) (0.158)

39,685,492 39,685,492 39,685,492 226,280 226,280 226,280

R-squared 0.094 0.096 0.099 0.496 0.497 0.499

Source: World Bank. Note: Robust standard errors, clustered at destination country level, in parentheses. All regressions control for gross domestic product (GDP) in destination country and include firm-year and destination fixed effects. GVC = global value chain; ln = natural logarithm; PTA = preferential trade agreement; TF = trade facilitation. * p < 0.1; ** p < 0.05; ***; p < 0.01.

ANNEX 3B TASK FACILITATION PROVISIONS IN DEEP TRADE AGREEMENTS: DETAILED QUESTIONS

I. TRANSPARENCY

A. Publication and Availability of Information

• Does the agreement require states to promptly publish information in a nondiscriminatory and easily accessible manner? • Does the agreement require states to publish import–export-related information through the internet? • Does the agreement require states to establish/maintain enquiry points to answer queries on importation, exportation, and transit procedures, forms, and documents?

B. Opportunity to Comment, Information before Entry into Force, and

Consultations

• Does the agreement require states to provide an opportunity to traders and other interested parties to comment on laws and regulations related to the movement, release, and clearance of goods (including transit) before entry into force?

• Does the agreement require states to publish/make available information on laws and regulations related to the movement, release, and clearance of goods (including transit) prior to entry into force? • Does the agreement require states to provide for regular consultations between border agencies and traders or other stakeholders?

C. Advance Rulings

• Does the agreement require states to issue advance rulings?

D. Procedures for Appeal or Review

• Does the agreement require states to provide for – Administrative appeal/review against a decision of customs administration? – Judicial appeal/review of a decision of customs administration?

II. FEES AND FORMALITIES

A. Requirements on Fees and Charges Imposed on or in Connection with Importation and Exportation and Penalties

• Does the agreement require states to apply the following general disciplines on fees and charges for importation and exportation: – Publish information on fees and charges (amount, reasons, responsible authority, when and how to pay)? – Accord an adequate time between publication of new or amended fees and charges and entry into force? – Review, periodically, fees and charges with a view to reducing their number and diversity, where practicable? • Does the agreement require states to apply the following specific disciplines for customs processing fees and charges: – Limited to approximate cost of services/specific operation? – Not required to be linked to a specific operation if they are levied for services connected to customs processing? • Does the agreement provide any rules for penalties imposed by customs administration for a breach of customs laws, regulations, or procedural requirements?

B. Release and Clearance of Goods

• Does the agreement require states to adopt/maintain prearrival processing procedures (submission of import documentation and other required information, including manifests)? • Does the agreement require states to provide for advance lodging of such documentation in electronic format? • Does the agreement require states to adopt/maintain electronic payment of duties, taxes, fees, and charges collected by customs administration? If this requirement is extended to other agencies, please describe.

• Does the agreement require states to adopt/maintain procedures for separation of release from final determination of customs duties, taxes, fees, and charges? • Does the agreement require states to adopt/maintain a risk management system for customs control? • Does the agreement require states to adopt/maintain postclearance audit to ensure compliance? • Does the agreement require states to release goods within prescribed time limits (please describe if for all and/or specific categories of goods)? • Does the agreement require states to extend additional TF measures for authorized operators (AOs) who meet specified criteria related to compliance? • Does the agreement provide for mutual recognition of AOs? • Does the agreement provide for the expedited release of goods entered through air cargo facilities (at least)? • Does the agreement provide for the application of the World Customs Organization immediate release guidelines? • Does the agreement provide special arrangements for the release of perishable goods?

C. Border Agency Cooperation

• Does the agreement require states to ensure cooperation between national border agencies and coordination of their activities?

D. Formalities Connected with Importation, Exportation, and Transit

• Does the agreement require states to review formalities and documentation requirements? • Does the agreement require states to accept copies of supporting documents for import, export, or transit formalities? • Does the agreement encourage states to use relevant international standards as a basis for import, export, or transit formalities and procedures? • Does the agreement encourage states to establish/maintain a single window to submit documentation for importation, exportation, or transit of goods through a single entry point? • Does the agreement encourage/commit states to provide for the interoperability of their single window systems or to establish a single window between them? • Does the agreement prohibit states from requiring the use of preshipment inspections for classification and valuation? • Does the agreement prohibit states from requiring the use of customs brokers (that is, there should not be such a requirement)? • Does the agreement require states to allow for temporary admission of goods and inward and outward processing?

III.TRANSIT

A. Freedom of Transit

• Does the agreement contain any provisions on freedom of transit?

IV. CUSTOMS AND OTHER FORMS OF TF COOPERATION

A. Exchange of Information

• Does the agreement provide for mutual administrative assistance through the exchange of information to verify an import and export declaration in identified cases? • Does the agreement encourage states to: – Exchange information and data on a secure and rapid basis such as automatically and/or in advance of arrival of goods? – Develop common data elements, unique consignment reference numbers, processes, and common risk rules? – Adopt interconnected/compatible customs/software systems? • Does the agreement require states to cooperate on law enforcement (prevent smuggling, fraud, and other illicit trade-related activities) such as: – Risk management? – Exchange of data and intelligence? – Joint law enforcement actions? – Please describe other activities. • Does the agreement require states to exchange information on best practices or share expertise generally, or specifically on: – Procedures, techniques? – Technology? – Please describe other areas. • Does the agreement require states to cooperate in international fora? If more than a general commitment, please describe. • Does the agreement commit the states to cooperate in additional customs and other economic and TF activities (such as risk management, simplification, and so on)? If yes, please describe.

V. CUSTOMS UNION-SPECIFIC

• In case of a customs union, does the agreement require states to: – Harmonize/standardize some of their legal provisions (please describe the elements)? – Adopt and apply a common customs legal framework? • Does the agreement provide for customs and other duties and taxes to be collected at: – First port of entry? – Destination? • Does the agreement provide for sharing customs revenue or another revenue distribution mechanism (please describe)?

VI.FREE TRADE AGREEMENT-SPECIFIC

A. Rules of Origin

• Does the agreement require any of the following types of proof of origin: – Certificate of origin? – Commercial invoice declaration? – “Self-certification” or declaration (by approved exporter)? – Waiver if below prescribed value? • Does the agreement specify who is responsible for issuing the proof of origin: – Customs? – Business association (such as chamber of commerce designated by a ministry responsible for trade or customs)? – Exporter/importer? • Does the agreement require that proof of origin should be in: – Paper format? – Electronic format? • Does the agreement provide for submission of proof of origin: – On a transactional basis? – To cover multiple transactions? • Does the agreement provide for origin verification measures and channels?

VII. TECHNICAL ASSISTANCE/CAPACITY BUILDING

• Does the agreement require states to assist each other in implementation of the agreement or specific elements thereof? Please describe. • Does the agreement provide for states to support each other with: – Advisory services? – Training? – Study visits? – Exchange/secondment of officers? – Infrastructure? – Financial support?

VIII. INSTITUTIONAL ARRANGEMENTS

• Does the agreement provide for the establishment of structures (such as working group/committee or other body) to: – Develop a customs or TF work program? – Guide and/or monitor implementation of customs or TF provisions?

Source: Mattoo, Rocha, and Ruta 2020. Note: DTA = deep trade agreement; TF = trade facilitation.