Advance Rulings are a useful tool to have implemented together or before single window.

1. ADVANCE RULINGSADVANCE RULINGS
 Are bindingAre binding
decisionsdecisions
 issued by theissued by the
CustomsCustoms
authorityauthority
 in writingin writing
 prior to anprior to an
importation orimportation or
exportationexportation

2. WHY?WHY?
 They are recommended by the WTO and the
WCO.
 Advance Rulings are necessary under new
WTO Valuation Agreements.
 They are required by many multilateral and
bilateral treaties.
BECAUSE
Thy facilitate trade, increase transparency and
predictability

3. POSITIVE EXPERIENCESPOSITIVE EXPERIENCES
WORLDWIDEWORLDWIDE
 Most APEC Members: Australia, New Zealand,Most APEC Members: Australia, New Zealand,
Singapore, China, Japan, Canada, USA, Peru,Singapore, China, Japan, Canada, USA, Peru,
ChileChile
 Are proven to facilitate and accelerate CustomsAre proven to facilitate and accelerate Customs
clearance.clearance.
 Reduce clearance costs at a very low price.Reduce clearance costs at a very low price.

4. How Advance Ruling benefit theHow Advance Ruling benefit the
trader?trader?
Eliminates disputes at the
actual moment of release
or clearance with the
Customs authority
Faster Clearance
No discretionary
decision of the Customs
officers
Taxes and duties
can be predicted
in advance

5. ClassificationClassification
The identification of the properThe identification of the proper
tariff heading and subheadingtariff heading and subheading
determines the duty rate to bedetermines the duty rate to be
applied to goods.applied to goods.
HS coding system may containHS coding system may contain
thousands of headings with highly-thousands of headings with highly-
technical chapters, such as chemicaltechnical chapters, such as chemical
compounds, textile goods, andcompounds, textile goods, and
electronic components.electronic components.
Sometimes, final classificationSometimes, final classification
depends on laboratory analysis of adepends on laboratory analysis of a
sample of the goods. Withsample of the goods. With
Advance Rulings the analysis isAdvance Rulings the analysis is
made before importation ormade before importation or
exportation.exportation.

6. ValuationValuation
Advance rulings on valuation is aAdvance rulings on valuation is a
useful facilitation measure, asuseful facilitation measure, as
traders are aware of the supportingtraders are aware of the supporting
documents they have to present todocuments they have to present to
proof the value of the goods andproof the value of the goods and
can predict in advance what thecan predict in advance what the
value will be.value will be.

7. Rules of OriginRules of Origin
Rules of origin are of particular importance whenRules of origin are of particular importance when
preferential agreements are in place.preferential agreements are in place.
Determination of origin is complex, as theDetermination of origin is complex, as the
processing of goods can occur in several countriesprocessing of goods can occur in several countries
and might involve products originating in differentand might involve products originating in different
countries.countries.
Advance Rulings may refer to eligibility to enjoyAdvance Rulings may refer to eligibility to enjoy
a preferential agreement or the selection of thea preferential agreement or the selection of the
applicable treaty when more than one is in place.applicable treaty when more than one is in place.

8. ADVANCE RULINGS AND SINGLEADVANCE RULINGS AND SINGLE
WINDOWWINDOW
SW could have a very important role in theSW could have a very important role in the
systematization of the ARs. It would allowsystematization of the ARs. It would allow
electronic sharing of information and the creationelectronic sharing of information and the creation
of a database for consultation. Specifically:of a database for consultation. Specifically:
SW would allow the registration, tracking andSW would allow the registration, tracking and
control of the application and the supportingcontrol of the application and the supporting
documents;documents;
SW is the ideal tool for the necessary interactionsSW is the ideal tool for the necessary interactions
between the Ministry of Industry and Commercebetween the Ministry of Industry and Commerce
and Customs for origin ARs.and Customs for origin ARs.

9. Cont.Cont.
 Supporting documentation provided by theSupporting documentation provided by the
applicant could be used by other agencies.applicant could be used by other agencies.
 Ministries of Health and Agriculture could be inMinistries of Health and Agriculture could be in
effective, traceable and fast communication witheffective, traceable and fast communication with
Customs for any information relevant to ARs inCustoms for any information relevant to ARs in
classification.classification.
 The Tax and Customs agencies could exchangeThe Tax and Customs agencies could exchange
information useful for valuation ARs and post-information useful for valuation ARs and post-
control.control.
 The ARs database, containing all issued ARs,The ARs database, containing all issued ARs,
could be used for consultation through the SW.could be used for consultation through the SW.

10. Cont.Cont.
 Supporting documentation provided by theSupporting documentation provided by the
applicant could be used by other agencies.applicant could be used by other agencies.
 Ministries of Health and Agriculture could be inMinistries of Health and Agriculture could be in
effective, traceable and fast communication witheffective, traceable and fast communication with
Customs for any information relevant to ARs inCustoms for any information relevant to ARs in
classification.classification.
 The Tax and Customs agencies could exchangeThe Tax and Customs agencies could exchange
information useful for valuation ARs and post-information useful for valuation ARs and post-
control.control.
 The ARs database, containing all issued ARs,The ARs database, containing all issued ARs,
could be used for consultation through the SW.could be used for consultation through the SW.