WCO in brief

The World Customs Organization (WCO), established in 1952 as the Customs Co-operation Council (CCC) is an independent intergovernmental body whose mission is to enhance the effectiveness and efficiency of Customs administrations. Today, the WCO represents 179 Customs administrations across the globe that collectively process approximately 98% of world trade. As the global centre of Customs expertise, the WCO is the only international organization with competence in Customs matters and can rightly call itself the voice of the international Customs community. The WCOs governing body the Council relies on the competence and skills of a Secretariat and a range of technical and advisory committees to accomplish its mission. The Secretariat, comprising over 100 international officials, technical experts and support staff of some nationalities. As a forum for dialogue and exchange of experiences between national Customs delegates, the WCO offers its Members a range of Conventions and other international instruments, as well as technical assistance and training services provided either directly by the Secretariat, or with its participation. The Secretariat also actively supports its Members in their endeavours to modernize and build capacity within their national Customs administrations. Besides the vital role played by the WCO in stimulating the growth of legitimate international trade, its efforts to combat fraudulent activities are also recognized internationally. The partnership approach championed by the WCO is one of the keys to building bridges between Customs administrations and their partners. By promoting the emergence of an honest,

transparent and predictable Customs environment, the WCO directly contributes to the economic and social well-being of its Members. Finally, in an international environment characterized by instability and the ever-present threat of terrorist activity, the WCOs mission to enhance the protection of society and the national territory, and to secure and facilitate international trade, takes on its full meaning.

Customs Environment The following issues, identified through a process of scanning the international environment and drivers, have guided the preparation of the 2009/2010 - 2011/2012 Strategic Plan. The environment in which the WCO and its Members operate will continue to be defined by the core roles of Customs : (1) Revenue collection; (2) National security; (3) Community protection; (4) Trade facilitation; and (5) Collecting trade data. The following list includes many of the current challenges faced by Customs administrations around the world today:

The need for the Customs community to be responsive to the global financial crisis and join global efforts to sustain confidence in the trading system. It is important to avoid the introduction of new barriers to trade, or measures that will increase costs and generate additional delays at the border. The use of risk management is a key element in this connection;

The adoption by the WCO Council of the policy document, Customs in the 21st Century, as the high-level strategic direction of the WCO Secretariat and WCO Members, which

embodies a new strategic perspective and policies that will shape the role of Customs in the 21st Century;

Continued investment by the private sector in modern manufacturing, information and supply chain management systems, supported by information and communication technologies, and a resultant increase in expectations for prompter and more cost-efficient and predictable border processing of goods and people;

Heightened awareness of the external drivers that add complexity to the global trade landscape, including initiatives to further liberalize trade and more complex trade rules;

Proliferation of regional trade agreements involving preferential rules of origin, resulting in a variety of rules of origin and procedures, which add costs to both governments and businesses;

Greater awareness of the factors that increase the vulnerability of the international trade supply chain, including international terrorism, transnational organized crime, drug trafficking and revenue fraud, and the resultant increase in expectations for strengthened border control while ensuring continued improvements in trade facilitation, which also concerns issues of public health and safety as well as environmental issues;

Heightened awareness of the adverse economic and social effects of the infringement of Intellectual Property Rights;

More complex policy and procedural requirements associated with meeting international commitments and standards for efficient and effective border procedures, that enhance coordination and co-operation among border agencies;

Increased awareness of the importance of Customs as a key vehicle for economic growth, social development and national security, and the resultant need for governments and donor

organizations to invest in sustainable capacity building activities in Customs, supported by research-based strategy and professionalism;

Increased awareness of the implementation of good governance and sound integrity within Customs services in co-operation with stakeholders, as a foundation for development policy and capacity building;

Constraints on budget and human-resource allocation notwithstanding the increase in workload and government expectations; and

Changes in organizational arrangements reflecting changes in government priorities.

Vision Statement To be the voice of Customs and the Global Centre of Excellence for the development and delivery of effective, efficient, and modern Customs procedures and standards, international cooperation, knowledge and capacity building, to meet the needs of governments and society for a better world by being visionary, relevant and indispensable.

Mission Statement As an intergovernmental organization, the WCO is the centre of excellence that provides leadership in Customs matters at the international level and advises Customs administrations worldwide on management practices, tools and techniques to enhance their capacity to implement efficient and effective cross-border controls along with standardized and harmonized procedures to facilitate legitimate trade and travel and to interdict illicit transactions and activities.

WCO Goals Goal 1 - International Co-operation and Information Sharing The WCO provides a forum for international co-operation to promote greater connectivity and more harmonious interaction, including the exchange of information and experience and the identification of best practices, between Member administrations, international organizations and other relevant stakeholders. Goal 2 - Harmonization and Simplification of Customs Systems and Procedures The WCO develops, maintains and promotes a series of internationally agreed conventions, other instruments and best-practice approaches to achieve harmonization and simplification of Customs systems and procedures. Goal 3 - Compliance and Enforcement The WCO supports Members through activities in the areas of commercial fraud, drug trafficking, money laundering, IPR and other related offences, through the development of compliance and enforcement tools and intelligence sharing via the Customs Enforcement Network (CEN) for the protection of society in the areas of public health and safety, environmental crimes, and containment of possible pandemics. Goal 4 - Trade Facilitation The WCO promotes the Revised Kyoto Convention to assist Members on trade facilitation matters. The WCO will continue to work with other international organizations, including the

World Trade Organization to support its Trade Facilitation Negotiating Group with advice and consultations to foster better understanding of WCO trade facilitation instruments and tools. Goal 5 - Supply Chain Security and Facilitation The WCO enhances Customs-to-Customs networks and Customs-to-Business partnerships in a meaningful and mutually beneficial way, through continued dialogue with its Members and its Business partners to secure and facilitate the international trade supply chain, including co-ordinated Border Management in co-operation with other border agencies. Goal 6 - Capacity Building The WCO provides a range of capacity building, training and technical assistance and integrity programmes to increase the capacity of Member Customs administrations to contribute effectively to national development goals, in partnership with international organizations and the private sector. Goal 7 - Promotion and Marketing The WCO promotes the strategic interests and markets the role and contribution of the WCO and the wider international Customs community, through co-operation, communication and partnership with governments, other international and regional organizations, donor agencies and the private sector. Goal 8 - Research and Analysis

The WCO conducts research and analysis into new visions, issues and trends of strategic importance to the WCO and Member administrations, in co-operation with research institutions. Goal 9 - Good Governance and Use of Resources The WCO manages and administers its human and financial resources in a cost-effective, transparent and responsible manner, based on a long-term vision for Customs administrations and the WCO and an awareness of the international environment and drivers.

History The history of the WCO began in 1947 when the thirteen European Governments represented in the Committee for European Economic Co-operation agreed to set up a Study Group. This Group examined the possibility of establishing one or more inter-European Customs Unions based on the principles of the General Agreement on Tariffs and Trade (GATT). In 1948, the Study Group set up two committees an Economic Committee and a Customs Committee. The Economic Committee was the predecessor of the Organization for Economic Co-operation and Development (OECD), the Customs Committee became the Customs Co-operation Council (CCC). In 1952, the Convention formally establishing the CCC came into force. The Council is the governing body of the CCC and the inaugural Session of the Council was held in Brussels on 26 January 1953.

Representatives of seventeen European countries attended the first Council Session of the CCC. After years of membership growth, in 1994 the Council adopted the working name World Customs Organization, to more clearly reflect its transition to a truly global intergovernmental institution. It is now the voice of 177 Customs administrations which operate on all continents and represent all stages of economic development. Today, WCO Members are responsible for processing more than 98% of all international trade. Our historical milestones

1947

Thirteen Governments represented in the Committee for European Economic Cooperation set up a Study Group to examine the possibility of establishing one or more Customs unions between the various European countries, in accordance with GATT principles.

1948

The Study Group decided to establish two Committees: an Economic Committee which later evolved into the Organisation for Economic Co-operation and Development (OECD), and a Customs Committee which later became the Customs Co-operation Council (CCC).

1952

The Convention establishing the CCC enters into force on the 4th of November.

The inaugural session of the CCC Council was held in Brussels on the 26th of January 1953 in the presence of representatives of seventeen European countries. This date is now celebrated annually as International Customs Day.

The International Convention on the Simplification and Harmonisation of Customs 1974 procedures (Kyoto Convention) enters into force on the 25th of September.

The Convention on Mutual Administrative Assistance in the Prevention, Repression 1980 and Investigation of Customs Offences (Nairobi Convention) enters into force on the 21th of May.

The WCOs International Convention on the Harmonized Commodity Description and 1988 Coding System (HS Convention) enters into force on the 1st of January.

1993

The WCO Council adopts the Arusha Declaration on Customs Integrity.

The WCO Council adopts the informal name World Customs Organization, in order 1994 to better reflect the world-wide nature of the Organization.

1999

The WCO Council adopts the revised International Convention on the Simplification

and Harmonisation of Customs Procedures (Revised Kyoto Convention)

The WCO celebrates its 50th anniversary and is honoured with a visit by HM King 2002 Albert II of Belgium accompanied by the Hon. Didier Reynders, the Belgian Deputy Prime Minister and Minister of Finance.

The WCO Council adopts the Convention on Mutual Administrative Assistance in 2003 Customs Matters (ohannesburg Convention) in July.

The WCO Council adopts the Framework of Standards to Secure and Facilitate Global 2005 Trade.

The WCO launches the Columbus Programme, the largest ever Customs Capacity Building initiative committed to support implementation of the Framework Standards 2006 to Secure and Facilitate Global Trade. The revised Kyoto Convention on the Simplification and Harmonisation of Customs Procedures enters into force.

2007

The HS Nomenclature 2007 Edition enters into force on the 1st of January.

2012

The HS Nomenclature 2012 Edition enters into force on the 1st of January.

WCO MEMBERS

Membership

WCO 179 Members, three-quarters of which are developing countries, are responsible for managing more than 98% of world trade. They are divided into 6 regions.

read more

National Customs Websites

Links to WCO Members national Websites read more

WCO Regional Websites

WCO Americas and Carribean Region WCO Asia Pacific Region WCO European Region

WCO WORKING BODIES

Council Terms of Reference for the Council Confirmed by the Council - June 2005 Established : 1950 (Inaugural Session 1953). Duration : Unspecified. 1. Mandate The Council was established by the Convention establishing a Customs Cooperation Council, with the aim of securing the highest degree of harmony and uniformity in the Customs systems of Member Governments, and especially to study the problems inherent in the development and improvement of Customs techniques and Customs legislation in connection therewith. It is the supreme body of the World Customs Organization and, as such, it takes the final decisions regarding the Organizations work and activities. All WCO bodies report to the Council. The Council operates with administrative support provided by the WCO Secretariat. 2. Membership Each Member of the WCO has the right to be represented in the Council. 3. Purpose and Scope The functions of the Council, as stipulated in Article III of the Convention establishing a Customs Co-operation Council, are to :

(a) Study all questions relating to co-operation in Customs matters which the Contracting Parties agree to promote in conformity with the general purposes of the present Convention; (b) Examine the technical aspects, as well as the economic factors related thereto, of Customs systems with a view to proposing to its Members practical means of attaining the highest possible degree of harmony and uniformity; (c) Prepare draft Conventions and amendments to Conventions and recommend their adoption by interested Governments; (d) Make recommendations to ensure the uniform interpretation and application of the Conventions concluded as a result of its work and, to this end, to perform such functions as may be expressly assigned to it in those Conventions in accordance with the provisions thereof; (e) Make recommendations, in a conciliatory capacity, for the settlement of disputes concerning the interpretation or application of those Conventions; (f) Ensure the circulation of information regarding Customs regulations and procedures; Terms of Reference for the Council (g) On it own initiative or on request, to furnish to interested Governments information or advice on Customs matters and make recommendations thereon; (h) Co-operate with other inter-governmental organizations as regards matters within its competence. 4. Key Deliverables While the functions identified by the founding Convention remain broadly relevant, global developments in trade, transport and technology have had a significant effect on the activities of the Organization over the years. Today, the Councils key deliverables are : (a) To examine and, where appropriate, approve the work done by the Organizations technical bodies, including the preparation or amendment of WCO instruments;

(b) To review, on the basis of written and oral reports by the Secretary General, the progress made during the previous twelve months with the implementation of the Organizations rolling, 3-year Strategic Plan; (c) To direct the future work of the Organization, in particular by examining, finalizing and adopting the Strategic Plan, which is prepared each year by the Secretariat and submitted to the Council after preliminary examination by the Policy Commission; (d) To examine and decide upon such policy issues as may be submitted to it by the Policy Commission; (e) To interpret the provisions of the founding Convention; (f) To provide a forum for the high-level exchange of information, views and experiences on topical Customs issues; (g) To take budgetary and financial decisions on the basis of recommendations submitted by the Finance Committee (in particular, acquitting the Secretary General of his financial management responsibilities for the previous financial year, taking note of the Audit Report and the follow-up action taken, appointing Auditors, and adopting a Decision concerning budgetary and financial provisions for the forthcoming financial year, including the scale of Members contributions); (h) To adopt amendments to the Secretariat Staff Regulations and Staff Rules; (i) To elect the Council Chairperson and Vice-Chairpersons, the members of the Policy Commission, and the Chairperson, Vice-Chairperson and members of the Finance Committee; (j) To appoint the Secretary General and Deputy Secretary General of the Organization, and nominate Directors for appointment by the Secretary General; (k) To adopt the Organizations Calendar of Meetings for the forthcoming year. 5. Means of Operation The Council, under its Chairperson who is elected from among the delegates, examines issues on the basis of Reports on meetings of the Policy Commission, the Finance Committee and the various technical Committees, and documents prepared by the Secretariat.

Article VII of the Convention requires the Council to meet at least twice a year, but since 1966 the two annual sessions have been held concurrently, almost always in the month of June. The annual sessions generally last three days (with two days set aside for the conduct of formal business, and one day for discussions on topical Customs issues). Each Member of the WCO nominates one delegate and one or more alternates to be its representatives on the Council. These representatives may be assisted by advisers (Article II of the Convention). Each active Member has one vote, except that a Member does not have a vote on any question relating to the interpretation, application or amendment of any WCO Convention in force which does not apply to that Member (Rule 21 of the Rules of Procedure of the Council). Representatives of non-Member Governments or of international organizations may be invited to attend Council sessions as observers. They may, at the discretion of the Chairperson, participate in the discussions but not vote. Representatives of a simple majority of the Members of the Organization constitute a quorum (Rule 20 of the Rules of Procedure of the Council). Decisions are taken by a majority of not less than two-thirds of the Members present at the meeting and entitled to vote (Rule 21 of the Rules of Procedure), except in the case of decisions concerning the Rules of Procedure, where a majority of not less than two-thirds of all the Members is required (Article VI of the Convention). 6. Resources Required The WCO Secretariat is responsible for making the arrangements and preparations for the Council sessions, providing professional, administrative and technical services during the sessions, and performing follow-up tasks after the sessions, including in particular the drafting of the Minutes. All Members are required to bear the expenses (travel and accommodation) of their own delegations to the Council (Article XII of the Convention). If the sessions are held away from WCO Headquarters, at the invitation of a Member, then that Member will normally be required to meet the additional costs which the Organization has incurred by reason of accepting that invitation (e.g.,

hiring meeting facilities, travel and accommodation expenses of Secretariat officials attending the sessions, etc.).

Finance Committee
Terms of Reference for the Finance Committee Confirmed by the Council - June 2005 Updated - June 2007 Established : 1953 Duration : Unspecified 1. Mandate The Finance Committee acts under the overall direction of the WCO Council with administrative support provided by the WCO Secretariat. Its role and responsibility is to provide support and advice to the Policy Commission and Council in budgetary and financial matters. A specific responsibility of the Finance Committee, as described in the Financial Rules adopted by the Council, is to examine the estimates of all of the Organizations resources and uses for the following financial year and prepare a report to the Council thereon. The estimates shall include an estimated Profit and Loss Account, a statement on cash flow and an estimated Balance Sheet. They shall cover all operations envisaged for the financial year concerned. 2. Membership As described in Rule 28 of the Rules of Procedure of the Customs Co-operation Council, the Council each year invites seventeen Members each to nominate a delegate to serve on the Finance Committee. They may also each nominate an alternate. The seats on the Finance Committee are allocated on a regional basis from among the active Members in the region, in accordance with the following distribution :

Europe : 8 seats. North of Africa, Near and Middle East : 1 seat. East and Southern Africa : 1 seat. West and Central Africa : 1 seat. South America, North America, Central America and the Caribbean : 3 seats. Far East, South and South East Asia, Australasia and the Pacific Islands : 3 seats. It is expected that the two Members paying the highest contributions to the budget of the Organization will be members of the Finance Committee (this is stipulated in a footnote to Rule 28 in the Councils Rules of Procedure). 3. Purpose and scope The purpose of the Finance Committee is to perform the functions assigned to it by the Financial Rules made by the Council, as well as to examine specific financial or budgetary matters referred to it by the Council, by the Policy Commission or by the Secretary General. In order to prepare decisions by the Policy Commission and the Council, the Finance Committee presents a financial situation report in respect of the achievement of the Strategic Plan objectives. 4. Key Deliverables The key deliverables of the Finance Committee are to : In respect of the previous financial year

Examine the full Audit Report prepared by the WCOs External Financial Auditors, together with the Secretary Generals comments thereon and, on the basis of that Report and the audited accounts for the previous financial year, to recommend if appropriate that the Council approve those accounts, accept the Secretary Generals proposals for the

apportionment of the result of the Profit and Loss Account, and acquit the Secretary General of his financial responsibilities for the previous financial year.

In respect of the financial year in progress

Consider the situation with regard to the receipt of Members contributions and capital subscriptions, the execution of the budget and the cash flow situation for the financial year in progress and, where appropriate, advise the Council of measures to be taken.

Examine and, where appropriate, endorse any measures already taken during the financial year in order to apply to the WCOs various remuneration scales any changes made in the Co-ordinated Organizations.

Look into the financial implications of any new tasks assigned to the Secretariat and not included in the budget appropriations approved by the Council, and make recommendations to the Council concerning the financing of those tasks.

In respect of the next financial year

Consider a provisional scale of Members contributions for the next financial year; Examine - based on the recommendations made by the Policy Commission with regard to the Programme Budget - and, as appropriate, recommend to the Council for adoption, total Members contributions, General Operating Expenses, an estimated Profit and Loss Account and Balance Sheet, and a Staffing Table for the next financial year.

And, in addition to the above deliverables relating specifically to the previous, current or next financial year

Analyse the financial implications of implementing the Strategic Plan and report the assessment to the Policy Commission and the Council; Participate - through its Chairperson and Vice-Chairperson - in the process for selecting the External Financial Auditors; Consider the results of the external financial audit;

Participate - through its Chairperson who is a member of the Audit Committee - in the planning of internal audits, and in the selection of areas to be examined in management audits;

Analyse the WCOs financial and budget situation on a quarterly basis, in addition to the examinations conducted at the annual session of the Committee; Examine and, where appropriate, make recommendations to the Council on the mediumterm financial perspectives or multi-year budgeting of the Organization;

Examine and, where appropriate, make recommendations to the Council on the Organizations financial investments and income; Examine and, where appropriate, make recommendations to the Council on the production and sale of WCO publications; Examine and, where appropriate, make recommendations to the Council on alternative sources of funding for the Organization; Examine and, where appropriate, make recommendations to the Council regarding the Annual Report on the Customs Co-operation Fund; Examine and, where appropriate, make recommendations to the Council on the position with regard to the Organizations capital expenditures; Keep WCO conditions of service under review and, where appropriate, make recommendations to the Council on amendments to the Staff Regulations and Staff Rules; Deal with certain specific situations envisaged by the Financial Rules of the Organization, namely : - approving requests by the Secretary General to transfer appropriations from one Chapter to another; - reviewing supplementary estimates submitted by the Secretary General; - scrutinizing reports by the Secretary General on the short-term investment of monies not needed for immediate requirements; - if necessary, directing the appointed External Financial Auditors to hold an extraordinary audit of any of the Organizations accounts, and providing for the submission of a report on that audit.

5. Means of Operation The Finance Committee, under its Chairperson, examines issues on the basis of documents prepared by the Secretariat. Although the Finance Committee is a restricted membership body, the working documents prepared for the sessions are circulated to all WCO Members for information. The Rules of Procedure of the Customs Co-operation Council specify that the Finance Committee shall meet at such intervals as may be necessary to execute its functions. In order to deal with decisions taken by the Council without prior costing or where new programmes arise during the course of the budget year, the Finance Committee may conduct virtual consultations among its members using electronic means organized by the Chairperson of the Finance Committee.

The members of the Finance Committee are elected by the Council (the composition of the Committee is described under Part 2 - Membership, above). The ordinary members of the Committee are elected for a 1-year term, renewable indefinitely. The Committee Chairperson and Vice-Chairperson are also elected for a 1-year term, renewable indefinitely. They are elected from among the members of the Finance Committee. Being a restricted membership body, the Finance Committee is not open to observers (apart from representatives of the WCO Staff Committee for matters relating to the working conditions of WCO staff). Nevertheless, in exceptional circumstances a WCO Member which is not a member of the Finance Committee may be invited to attend part of a Finance Committee session. The External Financial Auditors appear before the Finance Committee each year to present their report and answer any questions on it. They may also be invited to participate in the discussions on specific Agenda items relevant to their financial or management audits. In addition, the Organizations portfolio managers may be asked to appear before the Finance Committee to report on their strategy and answer questions about its implementation. From time to time, other specialists (actuaries, investment analysts, etc.) may be invited to attend part of a Finance Committee session, to provide information or advice on specific issues. Although the Finance Committee is essentially an advisory body for the Policy Commission and Council and normally arrives at its recommendations by consensus, there are detailed provisions governing voting in the Finance Committee; these are set out in Rule 28 of the Rules of Procedure of the Customs Co-operation Council. Essentially, these provisions state that the quorum of the Committee shall be nine delegates or alternates. 6. Resources Required The Finance Committee meets at WCO Headquarters. If required by the WCO, the Chairperson of the Finance Committee may participate in WCO regional meetings. The WCO Secretariat is responsible for making the arrangements and preparations for the Finance Committee sessions, providing professional, administrative and technical services during the sessions, and performing follow-up tasks after the

sessions. The report on its April session is drafted during the session and adopted before the close of the session. The home administrations of the Chairperson, Vice-Chairperson and members of the Finance Committee are required to bear their own expenses (travel and accommodation). In the case of the Chairpersons participation in WCO regional meetings, the WCO may bear part of the cost.

TARIFF AND TRADE AFFAIRS

TARIFF AND TRADE AFFAIRS

Harmonized System Committee The HS Committee performs functions as described in Article 7 of the HS Convention. To that end, the Committee acts under the overall direction of the WCO Council and Policy Commission, with administrative support provided by the WCO Secretariat. read more

Harmonized System Review Sub-Committee The Review Sub-Committee (RSC) acts under the overall direction of the HS Committee with administrative support provided by the WCO Secretariat. read more

The Scientific Sub-Committee

The Scientific Sub-Committee acts as an advisory body of the Council on questions involving chemical or other scientific matters. In practice, the Sub-Committee acts under the instruction of the Council or any of its Committees or Sub-Committees and it reports back to these WCO bodies. read more

Harmonized System Working Party The HS Working Party acts under the overall direction of the HS Committee with administrative support provided by the WCO Secretariat. read more

Technical Committee on Rules of Origin (TCRO) The Technical Committee on Rules of Origin (Technical Committee or TCRO) was established by the WTO Agreement on Rules of Origin (Origin Agreement), Article 4.2 (Institutions). read more

Technical Committee on Customs Valuation The Technical Committee on Customs Valuation (hereinafter referred to as the Technical Committee) is established in accordance with Article 18 of the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994. read more

Focus Group on Transfer Pricing The first meeting of the Joint WCO-OECD Focus Group on Transfer Pricing was held on the 26th October at the WCO headquarters in Brussels and was attended by representatives of the WCO, OECD, WTO, Customs administrations, Tax administrations and the Private Sector.

read more

Harmonized System Committee

Terms of Reference of the Harmonized System Committee Confirmed by the Council - June 2003 Updated - June 2005 Updated - June 2010 Established : 1988 Duration : Unspecified 1. Mandate The HS Committee performs functions as described in Article 7 of the HS Convention. To that end, the Committee acts under the overall direction of the WCO Council and Policy Commission, with administrative support provided by the WCO Secretariat. The Committee therefore refers issues concerned to the Council on the basis of the provisions of Article 8.1 (Article 16 amendments) or Articles 8.2 and 8.3 (corrigendum amendments, etc) of the Harmonized System (HS) Convention. The Chairperson also reports on the work of the Committee at each Session of the Council as specified in Rule 24 of the Rules of Procedure of the HS Committee. 2. Membership As described in Article 11 of the HS Convention, the following are eligible to become Contracting Parties (CPs) to the Convention :

Member States of the Council;

Customs or Economic Unions to which competence has been transferred to enter into treaties in respect of some or all of the matters governed by the Convention; and any other State to which an invitation to that effect has been addressed by the Secretary General at the direction of the Council.

3. Purpose and Scope The purpose and scope of the HS Committee is to :

interpret the HS legal texts in the most appropriate manner to secure uniform classification of goods, including settlement of classification disputes between CPs, thus facilitating trade (uniform interpretation and application);

amend the HS legal texts to reflect developments in technology and changes in trade patterns as well as other needs of HS users (updating); promote widespread application of the HS (promotion); examine general questions and policy matters relating to the HS (general and policy matters).

4. Key Deliverables The HS Committee's key deliverables are to Uniform interpretation and application

settle classification questions and disputes; revise the HS Explanatory Notes and Classification Opinions; secure speedy and uniform implementation of classification decisions; draft recommendations to secure uniformity in the interpretation and application of the HS, for example, the Recommendations on Pre-entry Classification Programmes and the Good Classification Work Model;

support the work of the Secretariat in ensuring uniform application of the HS, such as with regard to the publication of the HS Commodity Data Base (On-line andCD-ROM), Correlation Tables between HS2007 and HS2012, HS Classification Handbook, Booklet concerning Classification Decisions taken by the HSC from the 27th to the 44th Sessions (2001 2009) and Alphabetical Index.

Updating

amend legal texts to reflect developments in technology and changes in trade patterns as well as other needs of HS users (Amendments entered into force in 1992, 1996, 2002 and 2007. The next set of amendments is envisaged for 2012);

encourage CPs to implement the amendments in a timely manner.

Promotion

support the initiatives of the Secretariat to provide guidance to non-Contracting Party HS user countries to accede to the HS Convention and to assist non-HS user countries to apply the HS;

encourage the use of the HS in non-traditional areas and provide guidance to such users (e.g., with regard to ozone depleting substances, hazardous wastes, chemical weapons, CITES, narcotics, hazardous chemicals and pesticides, persistent organic pollutants).

General and policy matters

examine a series of general questions that are not directly related to the HS Nomenclature, but certainly provide assistance with regard to the uniform application and maintenance of the HS, e.g., the survey on Customs duties.

5. Means of Operation The Committee, under its Chairperson who is elected from among the delegates, examines issues on the basis of documents prepared by the Secretariat, which incorporate comments and proposals from administrations. Each member of the Committee may nominate one delegate and one or more alternates to be its representatives on the Committee (Rule 3 of the Rules of Procedure of the HS Committee). The representatives should be officials responsible for and specialized in HS classification matters. They may be assisted by advisers. Representatives of 40% or 40 of the members of the Committee, whichever is lower, constitute a quorum (Rule 18 of the Rules of Procedure of the HS Committee). Each CP has the right to one vote. However, the EC and its members together exercise one vote in accordance with Article 6.4 of the HS Convention.

Decisions concerning amendments to the Rules of Procedure of the Committee are taken with not less than two-thirds of the votes attributed to its members (Rule 19 of the Rules of Procedure of the HS Committee and Article 6.6 of the HS Convention). Decisions concerning amendments to the Convention are taken by a majority of not less than two-thirds of the votes cast by members (Rule 19 of the Rules of Procedure of the HS Committee) followed by unanimous acceptance of the CPs (Article 16 of the HS Convention). Other decisions (classification decisions, adoption of the Explanatory Notes, Classification Opinions, etc.) are taken by a simple majority of the votes cast by the members of the Committee (Rule 19 of the Rules of Procedure of the HS Committee), followed by a deemed approved procedure of the Council (Articles 8.2. and 8.3 of the HS Convention). The Secretary General may invite representatives of States which are not Members of the Council and, subject to the approval of the Chairperson of the Committee, representatives of intergovernmental or other international organizations and any experts whose participation is considered desirable to attend meetings of the Committee as observers (Rule 6 of the Rules of Procedure of the HS Committee). The Committee's activities are supported by the Review Sub-Committee (for updating of the HS), the Scientific Sub-Committee (for chemical matters), the Working Party (for drafting texts of the Explanatory Notes, Classification Opinions, etc.) and the Nomenclature and Classification Sub-Directorate. 6. Resources Required The HS Committee meets twice a year. Each session lasts two weeks. The WCO Secretariat is responsible for : (a) preparation for each meeting, including :

administrative preparation, including typing, sorting, filing of documents; inviting comments of members of the HS Committee regarding technical and other matters; distributing an annotated agenda eight (8) weeks prior to meeting dates in the two official languages;

drafting comments on working documents, etc. which are generally completed eight weeks prior to the meeting; ensuring that all working documents are available to members of the HS Committee four (4) weeks prior to meeting dates in the two official languages and Russian and Spanish (working languages of the HS Committee) as hard copy and on the WCO Web site.

(b) the meeting itself, including :

presenting reports and proposals; facilitating the course of the meeting; taking note of discussions; preparing a draft report.

(c) follow-up to the meeting, including :

preparing the final meeting report and distributing it to members of the HS Committee; publishing instruments adopted by the HS Committee, after approval by the WCO Council.

Harmonized System Review Sub-Committee

Confirmed by the Council - June 2003 Updated - June 2005 Established : 1988 Duration : Unspecified 1. Mandate The Review Sub-Committee (RSC) acts under the overall direction of the HS Committee with administrative support provided by the WCO Secretariat. 2. Membership As described in Rule 2 of the Rules of Procedure of the Sub-Committee, the SubCommittee consists of :

representatives of the Contacting Parties to the HS Convention; representatives of any Member of the Council which is not a Contacting Party to the HS Convention; and subject to invitation by the Secretary General, the following :

o o o

representatives of States which are not Members of the Council; representatives of intergovernmental or other international organizations; in consultation with the Chairperson of the Sub-Committee, any experts whose participation is considered desirable on the basis of the contribution they might be expected to make to the work of the Sub-Committee.

3. Purpose and Scope The purpose and scope of the Sub-Committee is to :

pursue a review of the HS under the general guidance of the HS Committee; propose to the Committee such amendments to the HS as may be considered desirable having regard, in particular, to the needs of users and to changes in technology or in patterns of international trade; and

prepare, to the extent appropriate, any consequential amendments to the Explanatory Notes and the Compendium of Classification Opinions for consideration by the Committee.

4. Key Deliverables The Review Sub-Committee's key deliverables are :

amendments to HS legal texts at predetermined intervals for uniform application by all users (amendments entered into force in 1992, 1996, 2002 and 2007. The next set of amendments is envisaged for 2012); and

consequential amendments to the Explanatory Notes as well as the Compendium of Classification Opinions.

5. Means of Operation The HS Committee elects the Chairperson from among the members of the HS Committee. The Sub-Committee examines issues on the basis of documents prepared by the Secretariat, which incorporate comments and proposals from administrations. The Sub-Committee seeks to reach a consensus on any matter examined and reports to the Committee. If agreement cannot be reached on a question, the differing views together with their supporting rationales are reported to the HS Committee.

6. Resources Required The Sub-Committee holds its sessions as and when required and subject to approval by the Committee and the Council. It usually meets twice a year. Each session lasts one to two weeks depending on the number of items on the agenda. The responsibilities of the WCO Secretariat are the same as those for the HS Committee.

Harmonized System Working Party

Confirmed by the Council - June 2003 Updated - June 2005 Established : 1988 Duration : Unspecified 1. Mandate The HS Working Party acts under the overall direction of the HS Committee with administrative support provided by the WCO Secretariat. 2. Membership There is no specific provision. The Working Party usually consists of :

representatives of the Contacting Parties to the HS Convention; representatives of any Member of the Council which is not a Contacting Party to the HS Convention; and subject to invitation by the Secretary General, representatives of intergovernmental or other international organizations.

3. Purpose and Scope The purpose and scope of the Working Party is to draft the texts of possible amendments to the HS Nomenclature, Explanatory Notes and Compendium of Classification Opinions before their final adoption by the HS Committee. 4. Key Deliverables

Same as under Item 3. 5. Means of Operation The HS Committee elects the Chairperson from among the members of the HS Committee. The Working Party examines issues on the basis of documents prepared by the Secretariat, which incorporate comments and proposals from administrations. The Working Party seeks to reach a consensus on any matter examined and reports to the HS Committee. If agreement cannot be reached on a question, the differing views together with their supporting rationales are reported to the HS Committee. 6. Resources Required The Working Party holds its sessions as and when required and subject to approval by the HS Committee and the Council. It usually meets immediately before the HS Committee meeting. The responsibilities of the WCO Secretariat are the same as those for the HS Committee.

Technical Committee on Rules of Origin (TCRO)

Terms of Reference for the Technical Committee on Rules of Origin (TCRO) Confirmed by the Council - June 2003 Updated - June 2005 Established : 1995 Duration : Unspecified 1. Mandate The Technical Committee on Rules of Origin (Technical Committee or TCRO) was established by the WTO Agreement on Rules of Origin (Origin Agreement), Article 4.2 (Institutions). The Technical Committee is a WTO body, but it has operated under the auspices of the WCO as provided for under Article 4.2 of the Origin

Agreement. Therefore, the WCO Council exercises its supervision over the Technical Committee with regard to administrative matters only. When the TCRO was established, its two major mandates were to : (i) undertake the technical exercise of the Work Programme for harmonizing non-preferential rules of origin (HWP in short, as described in Articles 9.1 and 9.2 of the Origin Agreement); and (ii) assume its permanent responsibilities (as described in Articles 4.1 and 4.2 (Institutions), Article 6.3 (Review) and Annex I of the Origin Agreement). 2. Membership Each WTO Member has the right to be represented on the Technical Committee. Each Member may nominate one delegate and one or more alternates to be its representative(s) on the Technical Committee. Representatives of members of the Technical Committee may be assisted by advisers at meetings of the Technical Committee. The WTO Secretariat may also attend such meetings with observer status (Origin Agreement, Annex I, paragraph 4). Members of the WCO that are not Members of the WTO may be represented at meetings of the Technical Committee by one delegate and one or more alternates. Such representatives attend meetings of the Technical Committee as observers (Annex I, paragraph 5). Subject to the approval of the Chairperson of the Technical Committee, the Secretary General of the WCO may invite representatives of governments which are neither Members of the WTO nor Members of the WCO and representatives of international governmental and trade organizations to attend meetings of the Technical Committee as observers (Annex I, paragraph 6). Such representatives attend meetings of the Technical Committee as observers with the right to take part in the discussions but not to take part in decision-making (Rules of Procedure, Rule 4, 2nd paragraph). Nominations of delegates, alternates and advisers to meetings of the Technical Committee are made to the Secretary General (Annex I, paragraph 7). Delegations and alternates continue to hold their positions until such time as the Secretary General is notified of the termination of their appointment (Rules of Procedure, Rule 5, 2nd paragraph).

3. Purpose and Scope The purpose of the Technical Committee is as follows : (1) Re Harmonization Work Programme

The TCRO completed this technical exercise in 1999 and has been awaiting further requests from the WTO Committee on Rules of Origin (Committee or CRO). These requests could include assisting the work of the CRO in the final stages of the HWP, e.g., an overall coherence review;

In the meantime, in order to ensure the smooth implementation of the Harmonized NonPreferential Rules of Origin in the future, the Technical Committee has informally conducted a technical rectification exercise to align the draft rules of origin (based on HS 1996) on the 2002 edition of the Harmonized System.

(2) Re permanent responsibilities of the TCRO

To examine specific technical problems arising in the day-to-day administration of the rules of origin of Members and to give advisory opinions on appropriate solutions based upon the facts presented (Annex I, paragraph 1(a));

To furnish information and advice on any matters concerning the origin determination of goods as may be requested by any Member or the Committee (Annex I, paragraph 1(b)); To prepare and circulate Periodic Reports on the technical aspects of the operation and status of this Agreement (Annex I, paragraph 1(c)); To review annually the technical aspects of the implementation and operation of Parts II and III (Annex I, paragraph 1(d)); To exercise such other responsibilities as the Committee may request of it (Annex I, paragraph 2); To attempt to conclude its work on specific matters, especially those referred to it by Members or the Committee, in a reasonably short period of time (Annex I, paragraph 3); and In co-operation with the Committee, to set up a mechanism to consider and propose amendments to the results of the HWP, taking into account the objectives and principles set out in Article 9 of the Origin Agreement. This includes instances where the rules need to be made more operational or need to be updated to take into account new production processes as affected by any technological change. In this respect, the Technical Committee, at its 20th Session, sent a proposal to the CRO in the form of a document

entitled Proposed Mechanism for the Submission of the Views of the TCRO to the CRO for Amendments to the Harmonized Non-Preferential Rules of Origin.

4. Key Deliverables The Technical Committee will :

prepare draft amendment texts of the Harmonized Non-Preferential Rules of Origin in the course of the technical rectification exercise; provide information and advisory opinions on any matters, including appropriate solutions, concerning the origin determination of goods (Annex I, paragraphs 1(a) and (b));

prepare Periodic Reports on the technical aspects of the operation and status of this Agreement (Annex I, paragraph 1(c)); prepare Annual Reviews on the technical aspects of the implementation and operation of Parts II and III (Annex I, paragraph 1(d)); and forward a report to the WCO Council on its work.

5. Means of Operation The Technical Committee may :

examine specific technical problems arising in the day-to-day administration of the rules of origin of Members (Annex I, paragraph 1(a)); in accordance with WCO Council guidelines, establish such Sub-Committees or Working Parties as it considers necessary, and elect from among the representatives of its members a Chairperson for each such Sub-Committee or Working Party. All the proposals of such Sub-Committees or Working Parties shall be submitted to the Technical Committee for decision (Rules of Procedure, Rule 17);

where appropriate, request information and advice from the Committee on matters related to this Agreement. The Technical Committee may also request such other work from the Committee as it considers appropriate for the furtherance of the above-mentioned objectives of the Agreement (Article 4.2);

co-operate, promote joint projects, or share information and experiences with relevant WCO working bodies and international governmental and trade organizations related to the matters within its competence.

6. Resources Required

The Technical Committee meets as necessary, but not less than once a year (Annex I, paragraph 8). Meetings of the Technical Committee are normally held at WCO Headquarters (Rules of Procedure, Rule 9). The WCO Secretariat is responsible for : (a) preparation of each meeting, including :

administrative preparation; informing all members and observers at least 30 days in advance, except in urgent cases, of the opening date and duration of each session of the Technical Committee (Rules of Procedure, Rule 8);

including items in the Agenda at least 60 days before the session opens (Rules of Procedure, Rule 10); preparing working documents and non-papers, where necessary.

(b) the meeting itself, including :

assisting the Chairperson; presenting reports and proposals; facilitating the course of the meeting; taking note of discussions; preparing a draft Report.

(c) follow-up to the meeting, including :

preparing the final Report and distributing it to members of the Technical Committee.

Technical Committee on Customs Valuation

Confirmed by the Council - June 2003 Updated - June 2005 Established : 1995 Duration : Unspecified 1. Mandate The Technical Committee on Customs Valuation (hereinafter referred to as the Technical Committee) is established in accordance with Article 18 of the Agreement

on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994, (hereinafter referred to as the Agreement) under the auspices of the World Customs Organization (WCO) with a view to ensuring, at the technical level, uniformity in interpretation and application of the Agreement. The Technical Committee carries out the responsibilities described in Annex II to the Agreement and operates in accordance with the rules of procedure contained therein, with assistance provided by the WCO Secretariat. 2. Membership The Technical Committee shall comprise representatives of Members of the World Trade Organization (WTO). Each Member of the WTO may nominate one delegate and one or more alternates to represent it. Those representatives may be assisted by advisers (Paragraph 5 of Annex II to the Agreement). Representatives of Members of the WCO who are not Members of the WTO, and the WTO Secretariat, may attend meetings of the Technical Committee with Observer status. Subject to the approval of the Chairperson of the Technical Committee, the Secretary General of the WCO may invite representatives of governments who are neither Members of the WTO nor Members of the WCO, and representatives of international governmental and trade organizations, to attend such meetings as Observers (Paragraphs 5-7 of Annex II to the Agreement). 3. Purpose and Scope The purpose of the Technical Committee is to : - examine specific technical problems arising in the day-to-day administration of the Customs valuation system of Members of the WTO and to give advisory opinions on appropriate solutions based upon the facts presented; - study, as requested, valuation laws, procedures and practices as they relate to the Agreement and to prepare reports on the results of such studies; - prepare and circulate annual reports on the technical aspects of the operation and status of the Agreement; - furnish such information and advice on any matters concerning the valuation of imported goods for Customs purposes as may be requested by any Member of the

WTO or the Committee on Customs Valuation (hereinafter referred to as the WTO Committee) which has been established under the auspices of the WTO in accordance with Article 18 of the Agreement; - facilitate, as requested, technical assistance to Members of the WTO with a view to furthering the international acceptance of the Agreement; - carry out an examination of a matter referred to it by a panel under Article 19 of the Agreement; - exercise such other responsibilities as the WTO Committee may assign to it.

Focus Group on Transfer Pricing

Meeting Date Documents

Summary of Proceedings and Recommendations Presentations Case Studies

First

26 October 2007

Representation to the TCCV

Each WTO Member has the right to be represented on the TCCV. WCO Members who are not the WTO Members may be represented at the TCCV as observes. The TCCV may invite representatives of governments which are neither WCO Members nor WTO Members as observers. The TCCV may invite representatives of international governmental and trade organizations as observers.

WTO Committee on Customs Valuation

The Committee on Customs Valuation (CCV) is established under Article 18 of the Agreement. It is composed of representatives from each of the WTO Members. The purpose of this group is to give the opportunity to the Members to consult on matters relating to the administration of the Customs Valuation System. Mostly on the issues where it might affect the operation of the Agreement or the furtherance of its objectives the WTO Secretariat acts as the secretariat to the CCV.

WCO Technical Committee on Customs Valuation The Technical Committee on Customs Valuation (TCCV) has been established under the auspices of the WCO with a view to ensuring, at the technical level, uniformity in interpretation and application of the Agreement. The TCCVs major responsibilities are:

To examine specific technical problems arising from the day-to-day administration of the customs valuation systems of Members and to provide advice on appropriate solutions based upon the facts presented. Its decisions are issued in the form of Advisory Opinions, Commentaries, Explanatory Notes, Case Studies, and Studies which are published in the Compendium of Customs Valuation.

To furnish information and advice on questions concerning the valuation of imported goods as requested by Members. To study valuation laws, procedures and practices as they related to the Agreement. To facilitate technical assistance to Members with a view to furthering the international acceptance and understanding of the Agreement.

The Scientific Sub-Committee

Terms of Reference for the Scientific Sub-Committee Confirmed by the Council - June 2003 Updated - June 2005 Updated - June 2007 Established : 1987 Duration : Unspecified 1. Mandate The Scientific Sub-Committee acts as an advisory body of the Council on questions involving chemical or other scientific matters. In practice, the Sub-Committee acts under the instruction of the Council or any of its Committees or Sub-Committees and it reports back to these WCO bodies. It also serves as forum for the exchange of views by the Customs laboratory services of Council Members. 2. Membership

As described in Rule 2 of the Rules of Procedure of the Scientific Sub-Committee, each Member of the Council and any other Contacting Party to a Convention established or administered by the Council have the right to be represented. 3. Purpose and Scope The purpose and scope of the Scientific Sub-Committee is to :

assist the HS Committee and the Review Sub-Committee in their technical work, in particular with regard to questions involving the classification of chemical products; assist the Council and its Committees and Sub-Committees in their work, related to all scientific and engineering aspects of Customs administration, operation and procedures; and

serve as a forum for the exchange of views by the Customs laboratory services of Council Members on Customs-related scientific and engineering developments and best practices.

4. Key Deliverables The Sub-Committee's key deliverables are to :

advise the HS Committee on classification questions involving scientific issues; draft HS legal texts and Explanatory Notes involving scientific issues at the request of the HS Committee or the Review Sub-Committee; carry out studies for improvement of texts concerning chemical Chapters of the Harmonized System (mainly Chapters 25 to 40); exchange views among delegates with regard to the role of Customs laboratories, analytical methods, etc.; provide guidance to the Secretariat in its technical assistance programmes on Customs laboratory matters; and provide scientific and engineering support and advice to the Council and any of its Committees and Sub-Committees on Customs requirements or operations.

5. Means of Operation The Chairperson is elected from among the representatives of the members. The Sub-Committee examines issues on the basis of documents prepared by the Secretariat, which incorporate comments and proposals from administrations.

The Sub-Committee seeks to reach agreed views on any matter examined and report them to the Council or the relevant Committee as appropriate (normally to the HS Committee). If agreement cannot be reached on a question, the differing views together with their supporting rationales are reported. 6. Resources Required The Sub-Committee holds its sessions as and when required and subject to approval by the HS Committee and the Council. It normally holds at least one session a year. The responsibilities of the WCO Secretariat are the same as those for the HS Committee.