[Senate Treaty Document 108-6]
[From the U.S. Government Publishing Office]
108th Congress Treaty Doc.
1st Session SENATE 108-6
_______________________________________________________________________
PROTOCOL OF AMENDMENT TO INTERNATIONAL CONVENTION ON SIMPLIFICATION
AND HARMONIZATION OF CUSTOMS PROCEDURES
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
PROTOCOL OF AMENDMENT TO THE INTERNATIONAL CONVENTION ON THE
SIMPLIFICATION AND HARMONIZATION OF CUSTOMS PROCEDURES DONE AT BRUSSELS
ON JUNE 26, 1999
April 30, 2003.--The Treaty was read the first time, and together with
the accompanying papers, referred to the Committee on Foreign Relations
and ordered to be printed for the use of the Senate
LETTER OF TRANSMITTAL
----------
The White House, April 30, 2003.
To the Senate of the United States:
I transmit herewith for Senate advice and consent to
accession, the Protocol of Amendment to the International
Convention on the Simplification and Harmonization of Customs
Procedures done at Brussels on June 26, 1999. The Protocol
amends the International Convention on the Simplification and
Harmonization of Customs Procedures done at Kyoto on May 18,
1973, and replaces the Annexes to the 1973 Convention with a
General Annex and 10 Specific Annexes (together, the ``Amended
Convention''). I am also transmitting, for the information of
the Senate, the report of the Department of State on the
Amended Convention.
The Amended Convention seeks to meet the needs of
international trade and customs services through the
simplification and harmonization of customs procedures. It
responds to modernization in business and administrative
methods and techniques and to the growth of international
trade, without compromising standards of customs control.
Accession by the United States would further the U.S. interest
in reducing non-tariff barriers to international trade.
By acceding to the Protocol, a state consents to be bound
by the amended 1973 Convention and the new General Annex. At
the same time, or anytime thereafter, Parties have the option
of accepting any of the Specific Annexes (or Chapters thereof),
and may at that time enter reservations with respect to any
Recommended Practices contained in the Specific Annexes. In
accordance with these terms, I propose that the United States
accept seven of the Specific Annexes in their entirety and all
the Chapters, but one of each of two other Specific Annexes (A-
E, G, and H, as well as Chapters 1, 2, and 3 of F, and Chapters
1, 3, 4, and 5 of J), and enter the reservations proposed by
the Bureau of Customs and Border Protection as set forth in the
enclosure to the report of the Department of State. The
provisions for which reservation is recommended conflict with
current U.S. legislation or regulations. With these proposed
reservations, no new implementing legislation is necessary in
order to comply with the Amended Convention.
Accession to the Protocol by the United States would
contribute to important U.S. interests. First, accession by the
United States would benefit the United States and U.S.
businesses by facilitating greater economic growth, increasing
foreign investment, and stimulating U.S. exports through more
predictable, standard, and harmonized customs procedures
governing cross-border trade transactions. Setting forth
standardized and simplified methods for conducting customs
business is important for U.S. trade interests in light of the
demands of increased trade flows, as is the use of modernized
technology and techniques for customs facilitation. These
achievements can best be pursued by the United States as a
Party to the Amended Convention. Second, through early
accession, the United States can continue to take a leadership
role in the areas of customs and international trade
facilitation as the U.S. accession would encourage other
nations, particularly developing nations, to accede as well.
I recommend that the Senate give early and favorable
consideration to the Protocol and give its advice and consent
to accession.
George W. Bush.
The White House, April 30, 2003.
LETTER OF SUBMITTAL
----------
Department of State,
Washington, February 6, 2003.
The President,
The White House.
The President: I have the honor to submit to you the
Protocol of Amendment to the International Convention on the
Simplification and Harmonization of Customs Procedures done at
Brussels on June 26, 1999. The Protocol amends the
International Convention on the Simplification and
Harmonization of Customs Procedures done at Kyoto on May 18,
1973 (the ``original Convention''), which entered into force
for the United States on January 28, 1984. The Secretary of the
Treasury and I recommend that the Protocol be transmitted to
the Senate for its advice and consent to accession, including
nine of its Specific Annexes, subject to certain U.S.
reservations. The proposed text of these reservations is
enclosed.
The original Convention entered into force in 1974 and
currently has 62 Parties, which include many of the largest
U.S. trading partners. The United States acceded to the
original Convention in October 1983. However, recent changes in
technology and patterns of international trade have made the
original Convention outdated. In addition, the original
Convention is not sufficiently comprehensive, requiring
acceptance of only one of its 31 Annexes in order for a state
or eligible customs union to become a Party. The United States
took an active role in negotiating the Protocol in order to
produce the kind of modernization and customs harmonization
that is becoming increasingly necessary to U.S. exporters and
other traders alike. The revision process also included
participation by the private sector through various groups such
as the International Chamber of Commerce, the International
Federation of Brokers Association and the International Express
Couriers Conference. On June 26, 1999, after 4 years of study
and deliberation, the Protocol was adopted by the members of
the World Customs Organizations (formerly known as the Customs
Cooperation Council) in Brussels, Belgium.
The Protocol amends the original Convention and replaces
the Annexes of the original Convention with a General Annex and
with 10 Specific Annexes (together, the Amended Convention). By
acceding to the Protocol a state consents to be bound by the
amended 1973 original Convention (Appendix I to the Protocol)
and the General Annex (Appendix II to the Protocol). At the
same time, or anytime thereafter, Parties have the option of
accepting any of the Specific Annexes (Appendix III to
theProtocol), or Chapters therein (each Chapter contains Standards and
Recommended Practices), and may enter reservations with respect to any
Recommended Practices.
The Amended Convention is designed to enable Parties to
better meet the needs of much expanded international trade
through the simplification and harmonization of customs
procedures. It responds to the modernization of business and
administrative methods and techniques and to the growth of
international trade, without compromising standards of customs
control. The amended Convention recognizes that simplification
and harmonization of customs procedures can be accomplished by
applying, inter alia, the following principles: continuous
modernization of customs procedures; predictable, consistent
and transparent application of customs procedures; availability
of information on customs laws, regulations, guidelines and
practices; adoption of modern techniques such as risk
management, audit based controls and the maximum use of
information technology; cooperation of relevant international
standards; and a transparent system of administrative and
judicial review of customs decisions.
The General Annex contains 10 Chapters that encompass
standards applicable to all customs procedures and practices
covered by the Amended Convention and that must be observed by
all Parties to the Amended Convention. In particular, General
Annex Chapters 1 and 2 contain general principles and
definitions. Chapter 3 sets forth standards on clearance and
other customs formalities. Chapter 4 sets forth standards on
assessment and collection and payment of duties and taxes,
while Chapter 5 concerns security to ensure fulfillment of a
customs-related obligation. Chapter 6 sets forth standards for
customs control such as use of risk management. Chapter 7
focuses on the application of information technology to support
customs operations. Chapter 8 relates to rights of third
parties representing others before customs services, and
Chapter 9 addresses the availability of information on customs
matters. Chapter 10 concerns appeals in customs matters. The
Chapters of the General Annex contain Standards and
Transitional Standards. However, pursuant to Article 13 of the
Amended Convention, a Party has 36 months from the time the
General Annex has entered into force for that Party within
which to implement the provisions contained in a Standard and
60 months within which to implement the provisions of a
Transitional Standard.
In addition to the General Annex there are 10 Specific
Annexes (enumerated A-K, although there is no Specific Annex
I), which contain provisions applicable to one or more of
theindividual customs procedures and practices referred to in the
Amended Convention. Pursuant to Article 4 of the Protocol and Article
12 of the Amended Convention, a Party may accept one or more of the
Specific Annexes or one or more of the Chapters that compose a Specific
Annex. Each Specific Annex Chapter includes both Standards and
Recommended Practices (and may also contain specialized definitions).
In particular, Specific Annex A concerns the arrival of goods in a
customs territory and addresses formalities prior to the lodgment of
the Goods Declaration as well as temporary storage of goods. Specific
Annexes B and C address general customs procedures related to
importation and exportation. Specific Annex D deals with customs
warehouses and free zones. Specific Annex E concerns transit of goods.
Specific Annex F focuses on goods imported or exported for processing,
while Specific Annex G concerns temporary admission. Specific Annex H
relates to customs services' approaches (and due process matters)
related to branches of customs law. Specific Annex J describes special
customs procedures pertaining to, among other things, travelers, postal
traffic and processing of aid consignments for disasters. Finally,
Specific Annex K concerns rules of origin. By accepting a Specific
Annex or Chapter(s) of a Specific Annex a Party is bound by all the
Standards and Recommended Practices found therein, unless, pursuant to
Article 4 of the Protocol and Article 12 of the Amended Convention, a
Party enters reservations in respect of Recommended Practices (but not
Standards) in a Specific Annex it has accepted to accommodate
differences in its national legislation (defined in Article 1 of the
Amended Convention to include laws, regulations and other measures).
It is proposed that the United States accept seven of the
Specific Annexes in their entirety and all the Chapters but one
of each of two other Specific Annexes (A-E, G, and H, as well
as Chapters 1, 2, and 3 of F and Chapters 1, 3, 4, and 5 of J),
subject to the enclosed reservations proposed by the U.S.
Customs Service. By not accepting Specific Annex F Chapter 4
and Specific Annex J Chapter 2, which contain Standards
inconsistent with U.S. law, and with the proposed reservations,
no new implementing legislation would be necessary. The tenth
Specific Annex (Specific Annex K) deals with rules of origin,
which the United States is not seeking to accept at this time
as the harmonization work between the World Customs
Organization and the World Trade Organization on this issue is
not yet completed. Under Article 12(3) of the Amended
Convention, the United States would be obligated periodically
to review the provisions of the Amended Convention for which it
has enteredreservations to consider the possibility of
withdrawing any of its reservations and to notify the Secretary of the
World Customs Organization of the results of that review.
The Protocol will enter into force 3 months after 40
contracting parties have consented to be bound by it. To date,
the following countries have consented to be bound: Algeria,
Australia, Canada, China, the Czech Republic, Japan, Latvia,
Lesotho, Morocco, New Zealand and Uganda.
A customs or economic union, which has competence to adopt
its own regulations on matters governed by the Amended
Convention that are binding on its member states, may become a
Party to the Protocol. Pursuant to Article 8(5) of Appendix I,
such union shall inform the Depositary of its competence with
respect to matters governed by the Amended Convention. Pursuant
to Article 8(5) of Appendix I, such a union shall, for matters
within its competence, exercise in its own name the rights, and
fulfill the responsibilities which the Amended Convention
confers on union members that are Parties. In such cases, these
union members shall not be entitled to individually exercise
these rights, including the right to vote. Therefore, the
European Community (EC), were it to become a Party, could only
exercise in its own name the right to vote of those EC members
that are parties to the Amended convention. The EC would not
have a vote in addition to those of its member states that are
Parties. Though such unions were eligible to be Parties to the
original Convention--and the EC is a Party to the original
Convention--they were not entitled to vote under the original
Convention.
The United States, by acceding to the Protocol, can
continue to take a leadership role in the areas of customs and
international trade facilitation. Accession by the United
States to the Protocol is also significant because it will
encourage other nations, particularly developing nations, to
accede as well. The U.S. accession would benefit the United
States and U.S. businesses directly by facilitating greater
economic growth, increased foreign investment and stimulation
of U.S. exports through more predictable, standard and
harmonized customs procedures governing cross-borders trade
transactions. The Amended Convention embodies standardized
global trade processes and data standards that are critical for
fast, efficient and reliable delivery of U.S. products
overseas. The standardized processes in the Amended Convention
would not only enhance the ability of U.S. businesses to
deliver to their current customers, but would expand export
markets and access to new customers and new partners in the
global economy.
The Amended Convention would also advance U.S. interests in
reducing non-tariff barriers to international trade. The U.S.
Department of the Treasury, the U.S. Customs Service and the
U.S. Inter-Agency Committee on the Customs Cooperation Council
concur in my recommendation that the Protocol be submitted to
the Senate for its consideration and advice and consent to
accession.
Respectfully submitted,
Colin L. Powell.
Enclosure: As stated.