WTO Trade Facilitation Agreement

WTO Trade Facilitation Agreement is the multilateral agreement concluded at the December 2013 Bali Ministerial Conference and in force since February 22, 2017 that requires faster, more transparent release and clearance of goods.

2013, in force 2017 International Worldwide Enforced by World Trade Organization WTO Agreement on Trade Facilitation

What it requires

Members must publish import procedures, forms and fees online, issue advance rulings, allow pre-arrival processing and electronic payment, apply risk management and post-clearance audit, release goods before final duty determination against a guarantee, and offer expedited procedures for air cargo under Article 7.8. Perishable goods should be released quickly. Developing countries schedule obligations as category A, B or C with capacity-building support. Members also work toward a single window.

Why it matters

The TFA is the legal basis for many conveniences cross-border shippers now expect, such as electronic pre-arrival filing, binding classification rulings and express clearance lanes. For a brand entering a new market, it means published rules and the option of an advance ruling on classification or origin before inventory is committed. For example, an importer can ask a customs authority whether a product qualifies for a lower duty rate, then price accordingly. Expedited procedures under Article 7.8 also support the express carriers that move most e-commerce parcels.

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Not legal advice.