WCO Knowledge Academy Brussels 18 June 2015 Advance Rulings Mette Werdelin Azzam Technical Officer...

WCO Knowledge AcademyBrussels

18 June 2015

Advance Rulings

Mette Werdelin AzzamTechnical OfficerOrigin Sub-DirectorateWorld Customs [email protected]

Advance Rulings

A written decision on the classification, origin, valuation etc. of the good issued by Customs to the applicant prior to an import or export transaction.

What is advance ruling?

2 Copyright © 2015 World Customs Organization

Key objectiveProvide decisions on the classification, origin and valuation of commodities prior to their importation or exportation.For Private Sector :

Adding certainty and predictabilities to international trade; and

Helping traders to make informed business decisions based on legally binding ruling.

For Customs administrations :Also benefit from having advance

knowledge of future importations which is useful for risk management purposes.

Both Traders and Customs Benefit from Advance Ruling

Advance Rulings


Revised Kyoto Convention

9.9. Standard

General Annex - Chapter 9 (Information, Decisions and Rulings Supplied by Customs)

The Customs shall issue binding rulings at the request of the interested person, provided that the Customs have all the information they deem necessary.

Guidelines on:− Sampling of goods− Notification of binding rulings− Time-limits for validity of rulings− Use of binding rulings− Annulment of binding rulings

Reference

Binding rulings


Existing WCO Tools

Technical Guidelines on Binding Origin Information (2011)

Classification

Origin

Practical Guidelines for Valuation Control (2012)Valuation

Promote Trade Facilitation and Uniform Interpretation and Application

Recommendation on the Introduction of Programmes for Binding Pre-entry Classification Information (1996)

Recommendation on the improvement of Tariff Classification Work and Related Infrastructure (1998)


Agreement on Trade Facilitation (TFA)

WTO Ministerial Meeting, Bali, December 2013

Objectives: Further expediting the movement, release and clearance of goods etc.

Article 3 : Advance rulings for Classification, Origin, Valuation etc.

Provisions on application, issuance, modification, review, publication etc. on advance rulings


Agreement on Trade Facilitation (TFA)

WCO’s work

Technical Guidelines15. If the issuance of an advance ruling on classification, origin or valuation is declined or postponed, the competent authority shall promptly notify the applicant in writing, setting out the relevant facts and the basis for its decision.


Technical Guidelines on Advance Rulings

WCO tools on advance rulings

Technical Guidelines

Harmonize and modernize,Classification

Origin

Valuation

Article 3 of TFA

Existing tools

Single document covering the three areas



Provide details for practical implementation on the three areas, such as:

− Application for Advance Rulings

− Issuance of Advance Rulings

− Effect of Advance Rulings

− Modification and Revocation of Advance Rulings

− Review and Appeal

− Publication and Confidentiality

− Appendix : Application form (Classification and Origin)


Technical Guidelines on Advance Rulings-Ensure consistency with TFA-

Subject TFA text Draft text of Technical Guidelines

Time to issue rulings Reasonable, time bound manner

• Reasonable, time bound manner

• In the case of origin, as soon as possible but no later than 150 days

Validity period For a reasonable period of time

• For at least one year• In the case of origin, for

three yearsPublication of requirements

The requirements for application shall be published

The requirements for application shall be published

Notice of declination to issue

Member shall promptly notify the applicant in writing

The competent authority shall promptly notify the applicant in writing

Notice of revocation, modification or invalidation

Member shall provide written notice

The person to whom the advance ruling was issued shall be notified in writing



Presented to the respective Committees before adoption at June 2015 Policy Commission and Council

Origin : TCRO (February 2015)

Classification : HSC (March 2015)

Valuation : TCCV (May 2015)

The new guidelines replace the existing instruments developed in the three areas


WCO Knowledge Academy Brussels 18 June 2015 Advance Rulings Mette Werdelin Azzam Technical Officer...

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