2.4. WTO Trade Facilitation Agreement

2. Part 1: International Trade Treaties and Conventions

In 2013 the WTO adopted the Agreement on Trade Facilitation. It entered into force in 2017, and all WTO Members are bound by it although some developing countries have been granted extended timeframes in which to give effect to it in national legislation.

The TFA is largely consistent with the RKC and adopts the same principles, but it is not as comprehensive or detailed. The critical difference is that all its provisions are mandatory and legally binding. A WTO Member that fails to implement the TFA may find itself before a WTO dispute settlement body. The full text of the Agreement is available at WTO Trade Facilitation Agreement.

Key articles of relevance in your work include:

Article	Topic	What It Requires
Article 3	Advance rulings	Requires members to issue binding advance rulings on classification, origin, and valuation before goods are imported, giving traders certainty in advance.
Article 4	Appeals and review procedures	Requires accessible, impartial procedures for traders to appeal or seek review of Customs administrative decisions.
Article 6	Fees and charges	Regulates the fees and charges that may be imposed in connection with importation and exportation, requiring they reflect the cost of services rendered.
Article 7	Clearance and release of goods	Covers the release and clearance of goods, including provisions for Authorised Operators (AOs) and the specific benefits to which they are entitled.
Article 9	Movement of goods under Customs control	Governs the movement of goods while they remain under Customs control, including transit and transhipment arrangements.
Article 10	Import, export & transit formalities	Addresses the formalities, documentation, and procedures connected with the importation, exportation, and transit of goods, with a focus on simplification.
Article 11	Freedom of transit	Establishes the right of freedom of transit through WTO Member territories and the conditions under which transit charges and restrictions may be applied.

Authorised Operators (AO)

Article 7, paragraph 7 of the TFA is worth examining in depth — not least because DHL is a strong supporter of the concept. The language of paragraph 7 builds on Transitional Standard 3.32 of the General Annex to the RKC. It is also aligned with, but separate from, the Authorized Economic Operator (AEO) scheme established by the WCO through the SAFE Framework of Standards for Supply Chain Security, which we examine in Module 3.

The main purpose of Article 7, paragraph 7 is to mandate the introduction of AO schemes by all WTO Members, unless the procedures promoted by the scheme are already available to all importers and exporters. Under the scheme, Customs must provide at least three of the following measures:

Low documentary and data requirements	Reduced documentation and data requirements for customs declarations, as appropriate to the trader’s compliance record.
Low rate of physical inspections	Fewer physical inspections and examinations of goods compared to standard traders, as appropriate.
Rapid release time	Faster release of goods from Customs control, minimising dwell times and enabling efficient supply chain management.
Deferred payment	Deferred payment of duties, taxes, fees, and charges, improving cash flow for the business.
Reduced or comprehensive guarantees	Use of comprehensive guarantees or reduced financial security guarantees (securities) instead of full transaction-by-transaction bonds.
Single periodic declaration	A single customs declaration covering all imports or exports in a given period, significantly reducing administrative burden.
Clearance at operator’s premises	Clearance of goods at the premises of the Authorized Operator or another place authorised by Customs — rather than at the border.

Companies seek accreditation through a self-assessment process, subsequently verified by Customs. Under Article 7.2, the applicant must demonstrate high levels of compliance with Customs procedures, both in their past record and as a commitment going forward.

Article 7.5 provides the legal basis for Mutual Recognition Agreements (MRAs), under which one country recognises the AO status of a company granted that status in another country. These are bilateral agreements, and there is already a growing network of these arrangements. The WCO reports that there are now 97 MRAs in existence. These give effect to the WCO's AEO scheme, but most will include provisions covering the AO scheme as well. Australia, for example, has 14 MRAs in place to allow its Trusted Traders to be recognised in other countries. For a full list of countries with MRAs, visit the WCO Authorised Economic Operator Compendium

In some jurisdictions, such as the EU, the AO and AEO concepts are kept separate — companies may be accredited as AOs, AEOs, or both. In many other countries, the two schemes have been brought together, as in Australia's Trusted Trader Scheme.