B. Structure and content of the revised Kyoto Convention

2.6.                  The International Convention on the Simplification and Harmonization of Customs Procedures entered into force in 1974. The revised Kyoto Convention (RKC) was adopted in June 1999.  The provisions contained in the RKC aim at the facilitation of trade but at the same time make customs records a highly standardized and reliable data source for trade statistics across countries. The RKC comprises a Body, a General Annex and Specific Annexes.

2.7.                  The Body of the revised Kyoto Convention. The main body of the RKC contains information on the scope, structure and management of the Convention, and defines its ratification process by the contracting parties. For instance, article 9 (1) of the RKC specifies that “any Contracting Party which ratifies this Convention or accedes thereto shall be bound by any amendments to this Convention, including the General Annex, which have entered into force at the date of deposit of its instrument of ratification or accession”. Further, article 9 (2) specifies “any Contracting Party which accepts a Specific Annex or Chapter therein shall be bound by any amendments to the Standards contained in that Specific Annex or Chapter which have entered into force at the date on which it notifies its acceptance to the depositary”.

2.8.                  Ratification by contracting parties. As indicated in its article 9, contracting parties can ratify the RKC without signing off on the chapters of its Specific Annexes. For instance, whileAustria,Azerbaijan andBelgium are all contracting parties to the RKC, they did not sign off on any of the chapters of its Specific Annexes. As at 1 December 2011, 78 countries had become contracting parties to the RKC. Only 25 contracting parties have accepted chapters of the Specific Annexes.

2.9.                  Structure and content of the Annexes. The annexes of the original Kyoto Convention were replaced by a General Annex and Specific Annexes. The General Annex and each Specific Annex to the RKC are subdivided into Chapters, which comprise (a) definitions and (b) standards, some of which, in the General Annex, are transitional standards. Each Specific Annex also contains recommended practices in addition to standards. Standards have to be followed strictly and included in a country’s customs law.  The term “transitional standard” in the General Annex refers to a standard for which a longer period for implementation is permitted. Recommended practices are mandatory unless countries enter reservations against them. Each Annex is accompanied by guidelines, the texts of which are not binding upon contracting parties. Box II.1 provides an example of standards in the General Annex: those for the goods declaration formats and contents.

Box II. 1 General Annex of the revised Kyoto Convention: example of standards

Goods declaration format and contents

Standard 3.11. The contents of the Goods declaration shall be prescribed by the Customs.  The paper format of the Goods declaration shall conform to the UN-layout key.
For automated Customs clearance processes, the format of the electronically lodged Goods declaration shall be based on international standards for electronic information exchange as prescribed in the Customs Co-operation Council Recommendations on information technology.

Standard 3.12. The Customs shall limit the data required in the Goods declaration to only such particulars as are deemed necessary for the assessment and collection of duties and taxes, the compilation of statistics and the application of Customs law.

Standard 3.13. Where, for reasons deemed valid by the Customs, the declarant does not have all the information required to make the Goods declaration, a provisional or incomplete Goods declaration shall be allowed to be lodged, provided that it contains the particulars deemed necessary by the Customs and that the declarant undertakes to complete it within a specified period.

Standard 3.14. If the Customs register a provisional or incomplete Goods declaration, the tariff treatment to be accorded to the goods shall not be different from that which would have been accorded had a complete and correct Goods declaration been lodged in the first instance.

The release of the goods shall not be delayed provided that any security required has been furnished to ensure collection of any applicable duties and taxes.

2.10.              Definitions contained in the General Annex of the revised Kyoto Convention. The General Annex of the RKC defines and explains all customs terms and operations that are applicable to a variety of specific customs procedures which are defined in the Specific Annexes. Chapter 2 of the General Annex provides useful definitions of, for example, “clearance”, “customs law” and “customs territory”. Chapter 3 provides a detailed definition of “clearance and other customs formalities” which includes descriptions of the goods declaration and of the examination of the goods. The General Annex also contains chapters, among others, on duties and taxes; security;  customs control;  application of information technology; the relationship between the customs and third parties; and information, decisions and rulings supplied by the customs.

2.11.              Specific Annexes of the revised Kyoto Convention: customs procedures. The Specific Annexes of the RKC provide all of the details associated with customs procedures. Such information contained therein is highly relevant for the compilation of international merchandise trade statistics. A list of the Specific Annexes and of the chapters is provided in Table II.1.