Implementation

In the context of the Trade Facilitation Agreement (TFA), implementation has two targets: compliance and surveillance of the compliance, and building the capacity of all WTO Members to abide by their obligations. The specific modalities, mechanisms, and instruments created by the Agreement reflect these two targets.

Scope of the Agreement

Section I contains the substantial provisions of the Agreement. These provisions cover the aspects of publication of procedures, customs cooperation, appeal and review procedures, fees and charges, Customs clearance procedures, and freedom of transit. Read more on the substantive provisions here.

Implementation Modalities

Countries that have accepted the Protocol of Amendment of the WTO Agreement have to respect all commitments made in the Agreement – Article 24.2 stipulates, that “All provisions of this Agreement are binding on all Members” from the date of its entry into force. Developing and least developed country Members however can choose a special implementation procedure set forth in the Section II Special and Differential Treatment (S&DT) of the Agreement. The S&DT has three pillars:

• Developing and least developed country Members can categorize the provisions in three different categories each with different implementation modalities. Read more about the implementation modalities here.
• The initial categorization, provisional and final implementation dates, as well as capacity building needs and implementation progress are notified to the TF Committee and the notifications become integral part of the TFA. Read more about the notification procedure here.
• Donor country Members need to submit annually information on technical assistance requests received and assistance related to the Agreement provided to the WTO Committee on Trade Facilitation . Read more about the Technical Assistance provisions here.

Monitoring and Review of the Agreement

Two entities to monitor the application of the Agreement are created by the Agreement: a Committee at the WTO and a national trade facilitation committee in each Member.

Article 23 establishes the Committee on Trade Facilitation at the WTO and defines it mandate, including the review of “the operation and implementation of this Agreement four years from its entry into force, and periodically thereafter, at least annual meetings for consultation ‘on any matters related to the operation of this Agreement or the furtherance of its objectives’”. It furthermore should allow for the discussion of issues to be raised on the implementation of the Agreement.
In addition, several Articles of the Agreement assign specific functions to the Committee: It receives the notifications under Articles 1.4, 10.4, 10.6 and 12.10.2 and facilitates sharing of experience and information regarding 7.6, 7.7, 10.1, 10.3 and 12.1.2.

Each WTO Member has the obligation to set up a national trade facilitation committee. Article 23.2 requires that Members “establish and/or maintain a national committee on trade facilitation or designate an existing mechanism to facilitate both domestic coordination and implementation of the provisions of this Agreement.” Read more about National Trade Facilitation Committees here.

Dispute Settlement

In addition, the Agreement provides for grace period(s) for the application of the dispute settlement mechanism in Article 20. These periods are:

• for disputes against a developing country, 2 years;
• for disputes against a least developed country, 6 years for disputes against category A commitments, and 8 years after implementation for disputes against category B and C commitments.

Ratification

The Agreement entered into force on 22 February 2017 with 2/3 of the WTO members accepting the Protocol of Amendment. Countries, or Customs territories, that have not yet accepted the Protocol of Amendment of the WTO Agreement but are Members of the WTO can consult the WTO website for information on how the depositary practice and model instrument of acceptance.

It is important to note that for WTO Members that accept the Agreement after 22 February 2017, the time periods related to the S&DT provisions start from 22 February 2017, and not the date of acceptance of the Protocol. See Article 24.4 “A Member which accepts this Agreement after its entry into force shall implement its Category B and C commitments counting the relevant periods from the date this Agreement enters into force.”