29 April 1999

Free Trade Area of the Americas Negotiations in Full Swing

The following information is from the 29 April 1999 issue of "The Journal of Commerce".

Negotiations are ongoing among the 34 countries involved in the Free Trade Area of the Americas (FTAA). The talks began in 1998 and are scheduled for completion in 2005.

The FTAA Negotiating Committee agreed to consider several Customs-related problems that present difficulties to the region's movement of goods. Consensus was reached in four areas:

1. creating procedures for quick entry of low-value products transported by express service providers
2. simplified clearance procedures for low-value shipments
3. common code of conduct for Customs officials
4. exchange of common risk management techniques to be used for verification in Customs clearance.

Negotiations are focusing on Customs as one area where early progress can be achieved, in terms of a general consideration of business facilitation.

Customs proposals under consideration as business facilitation measures include:

- streamline Customs procedures for temporary import of goods connected with business travel, such as samples and tools of trade
- expedite procedures for low-value express shipments
- simplify procedures for clearance of low-value shipments
- increase application of UN Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT)
- develop core set of common data elements for administration of Customs, promoting harmonization
- establish calendar for adhering to rules of Kyoto Convention on Customs procedures
- harmonize information requirements and simplify documentation for transport of dangerous goods
- implement code of conduct for Customs officials in accordance with Arusha Declaration to avoid arbitrary or corrupt Customs actions
- adopt and implement Customs valuation agreement of the World Trade Organization
- establish timetable for adherence to Harmonized System for Classification of Goods
- establish set of rules and obligations governing entities performing pre-shipment inspection
- exchange common risk management techniques for evaluating high-risk goods and travellers
- create a database of Customs laws and regulations and develop method for keeping it updated
- establish disciplines to simplify and make transparent system of import licences
- produce a guide aimed at business sector about Customs procedures
- establish control and release systems with sureties or other instruments to let importers obtain goods prior to completion of Customs paperwork and duty payment