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Document 01994A1223(01)-20230608
Agreement Establishing the World Trade Organization
Consolidated text: Agreement Establishing the World Trade Organization
Agreement Establishing the World Trade Organization
ELI: http://data.europa.eu/eli/agree_internation/1994/800(1)/2023-06-08
01994A1223(01) — EN — 08.06.2023 — 002.001
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AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION (OJ L 336 23.12.1994, p. 3) |
Amended by:
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Official Journal |
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No |
page |
date |
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PROTOCOL amending the Marrakesh Agreement establishing the World Trade Organization |
L 284 |
3 |
30.10.2015 |
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L 148 |
3 |
8.6.2023 |
AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION
— THE PARTIES TO THIS AGREEMENT,
RECOGNIZING that their relations in the field of trade and economic endeavour should be conducted with a view to raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, and expanding the production of and trade in goods and services, while allowing for the optimal use of the world's resources in accordance with the objective of sustainable development, seeking both to protect and preserve the environment and to enhance the means for doing to in a manner consistent with their respective needs and concerns at different levels of economic development,
RECOGNIZING further that there is need for positive efforts designed to ensure that developing countries, and especially the least-developed among them, secure a share in the growth in international trade commensurate with the needs of their economic development,
BEING DESIROUS of contributing to these objectives by enterinig into reciprocal and mutually advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade and to the elimination of discriminatory treatment in international trade relations,
RESOLVED, therefore, to develop an integrated, more viable and durable multilateral trading system encompassing the General Agreement on Tariffs and Trade, the results of past trade liberalization efforts, and all of the results of the Uruguay Round of Multilateral Trade Negotiations,
DETERMINED to preserve the basic principles and to further the objectives underlying this multilateral trading system,
AGREE AS FOLLOWS:
Article I
Establishment of the Organization
The World Trade Organization (hereinafter referred to as ‘the WTO’) is hereby established.
Article II
Scope of the WTO
Article III
Functions of the WTO
Article IV
Structure of the WTO
Article V
Relations with other Organizations
Article VI
The Secretariat
Article VII
Budget and Contributions
The Committee on Budget, Finance and Administration shall propose to the General Council financial regulations which shall include provisions setting out:
the scale of contributions apportioning the expenses of the WTO among its Members; and
the measures to be taken in respect of Members in arrears.
The financial regulations shall be based, as far as practicable, on the regulations and practices of GATT 1947.
Article VIII
Status of the WTO
Article IX
Decision-Making
In exceptional circumstances, the Ministerial Conference may decide to waive an obligation imposed on a Member by this Agreement or any of the Multilateral Trade Agreements, provided that any such decision shall be taken by three fourths ( 4 ) of the Members unless otherwise provided for in this paragraph.
A request for a waiver concerning this Agreement shall be submitted to the Ministerial Conference for consideration pursuant to the practice of decision-making by consensus. The Ministerial Conference shall establish a time-period, which shall not exceed 90 days, to consider the request. If consensus is not reached during the time-period, any decision to grant a waiver shall be taken by three-fourths of the Members.
A request for a waiver concerning the Multilateral Trade Agreements in Annexes 1A or 1B or 1C and their annexes shall be submitted initially to the Council for Trade in Goods, the Council for Trade in Services or the Council for TRIPS, respectively, for consideration during a time-period which shall not exceed 90 days. At the end of the time-period, the relevant Council shall submit a report to the Ministerial Conference.
Article X
Amendments
Amendments to the provisions of this Article and to the provisions of the following Articles shall take effect only upon acceptance by all Members:
Article XI
Original Membership
Article XII
Accession
Article XIII
Non-Application of Multilateral Trade Agreements between Particular Members
Article XIV
Acceptance, Entry into Force and Deposit
Article XV
Withdrawal
Article XVI
Miscellaneous Provisions
Done at Marrakesh this fifteenth day of April one thousand nine hundred and ninety-four, in a single copy, in the English, French and Spanish languages, each text being authentic.
Explanatory Notes:
The terms ‘country’ or ‘countries’ as used in this Agreement and the Multilateral Trade Agreements are to be understood to include any separate customs territory Member of the WTO.
In the case of a separate customs territory Member of the WTO, where an expression in this Agreement and the Multilateral Trade Agreements is qualified by the term ‘national’, such expression shall be read as pertaining to that customs territory, unless otherwise specified.
LIST OF ANNEXES
ANNEX 1 |
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ANNEX 1A: |
Multilateral Agreements on Trade in Goods |
General Agreement on Tariffs and Trade 1994 |
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Agreement on Agriculture |
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Agreement on the Application of Sanitary and Phytosanitary Measures |
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Agreement on Textiles and Clothing |
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Agreement on Technical Barriers to Trade |
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Agreement on Trade-Related Investment Measures |
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Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 |
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Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 |
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Agreement on Preshipment Inspection |
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Agreement on Rules of Origin |
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Agreement on Import Licensing Procedures |
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Agreement on Subsidies and Countervailing Measures |
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Agreement on Fisheries Subsidies |
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Agreement on Safeguards |
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ANNEX 1B: |
General Agreement on Trade in Services and Annexes |
ANNEX 1C: |
Agreement on Trade-Related Aspects of Intellectual Property Rights |
ANNEX 2 |
Understanding on Rules and Procedures Governing the Settlement of Disputes |
ANNEX 3 |
Trade Policy Review Mechanism |
ANNEX 4 |
Agreement on Government Procurement |
International Dairy Arrangement |
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Arrangement regarding bovine meat |
ANNEX 1
ANNEX 1A
MULTILATERAL AGREEMENTS ON TRADE IN GOODS
General interpretative note to Annex 1A:
In the event of conflict between a provision of the General Agreements on Tariffs and Trade 1994 and a provision of another agreement in Annex 1A to the Agreement Establishing the World Trade Organization (referred to in the agreements in Annex 1A as the ‘WTO Agreement’), the provision of the other agreement shall prevail to the extent of the conflict.
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
1. The General Agreement on Tariffs and Trade 1994 (‘GATT 1994’) shall consist of:
the provisions in the General Agreement on Tariffs and Trade, dated 30 October 1947, annexed to the Final Act Adopted at the Conclusion of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment (excluding the Protocol of Provisional Application), as rectified, amended or modified by the terms of legal instruments which have entered into force before the date of entry into force of the WTO Agreement;
the provisions of the legal instruments set forth below that have entered into force under the GATT 1947 before the date of entry into force of the WTO Agreement:
protocols and certifications relating to tariff concessions;
protocols of accession (excluding the provisions (a) concerning provisional application and withdrawal of provisional application and (b) providing that Part II of GATT 1947 shall be applied provisionally to the fullest extent not inconsistent with legislation existing on the date of the Protocol);
decisions on waivers granted under Article XXV of GATT 1947 and still in force on the date of entry into force of the WTO Agreement ( 5 );
other decisions of the Contracting Parties to GATT 1947;
the Understandings set forth below:
Understanding on the Interpretation of Article II:1(b) of the General Agreement on Tariffs and Trade 1994;
Understanding on the Interpretation of Article XVII of the General Agreement on Tariffs and Trade 1994;
Understanding on Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994;
Understanding on the Interpretation of Article XXIV of the General Agreement on Tariffs and Trade 1994;
Understanding in Respect of Waivers of Obligations under the General Agreement on Tariffs and Trade 1994;
Understanding on the Interpretation of Article XXVIII of General Agreement on Tariffs and Trade 1994; and
the Marrakesh Protocol to GATT 1994.
2. Explanatory Notes
The references to ‘Contracting Party’ in the provisions of GATT 1994 shall be deemed to read ‘Member’. The references to ‘less-developed Contracting Party’ and ‘developed Contracting Party’ shall be deemed to read ‘developing country Member’ and ‘developed country Member’. The references to ‘Executive Secretary’ shall be deemed to read ‘Director-General of the WTO’.
The references to the Contracting Parties acting jointly in Articles XV:1, XV:2, XV:8, XXXVIII and the Notes Ad Article XII and XVIII; and in the provisions on special exchange agreements in Articles XV:2, XV:3, XV:6, XV:7 and XV:9 of GATT 1994 shall be deemed to be references to the WTO. The other functions that the provisions of GATT 1994 assign to the Contracting Parties acting jointly shall be allocated by the Ministerial Conference.
The text of GATT 1994 shall be authentic in English, French and Spanish.
The text of GATT 1994 in the French language shall be subject to the rectifications of terms indicated in Annex A to document MTN.TNC/41.
The authentic text of GATT 1994 in the Spanish language shall be the text in Volume IV of the Basic Instruments and Selected Documents series, subject to the rectifications of terms indicated in Annex B to document MTN.TNC/41.
3.
The provisions of Part II of GATT 1994 shall not apply to measures taken by a Member under specific mandatory legislation, enacted by that Member before it became a Contracting Party to GATT 1947, that prohibits the use, sale or lease of foreign-built or foreign-reconstructed vessels in commercial applications between points in national waters or the waters of an exclusive economic zone. This exemption applies to: (a) the continuation or prompt renewal of a non-conforming provision of such legislation; and (b) the amendment to a non-conforming provision of such legislation to the extent that the amendment does not decrease the conformity of the provision with Part II of GATT 1947. This exemption is limited to measures taken under legislation described above that is notified and specified prior to the date of entry into force of the WTO Agreement. If such legislation is subsequently modified to decrease its conformity with Part II of GATT 1994, it will no longer qualify for coverage under this paragraph.
The Ministerial Conference shall review this exemption not later than five years after the date of entry into force of the WTO Agreement and thereafter every two years for as long as the exemption is in force for the purpose of examining whether the conditions which created the need for the exemption still prevail.
A Member whose measures are covered by this exemption shall annually submit a detailed statistical notification consisting of a five-year moving average of actual and expected deliveries of relevant vessels as well as additional information on the use, sale, lease or repair of relevant vessels covered by this exemption.
A Member that considers that this exemption operates in such a manner as to justify a reciprocal and proportionate limitation on the use, sale, lease or repair of vessels constructed in the territory of the Member invoking the exemption shall be free to introduce such a limitation subject to prior notification to the Ministerial Conference.
This exemption is without prejudice to solutions concerning specific aspects of the legislation covered by this exemption negotiated in sectoral agreements or in other fora.
UNDERSTANDING ON THE INTERPRETATION OF ARTICLE II:1(b) OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
MEMBERS HEREBY AGREEE AS FOLLOWS:
1. In order to ensure transparency of the legal rights and obligations deriving from paragraph l(b) of Article II, the nature and level of any ‘other duties or charges’ levied on bound tariff items, as referred to in that provision, shall be recorded in the Schedules of concessions annexed to GATT 1994 against the tariff item to which they apply. It is understood that such recording does not change the legal character of ‘other duties or charges’.
2. The date as of which ‘other duties or charges’ are bound, for the purposes of Article II, shall be 15 April 1994. ‘Other duties or charges’ shall therefore be recorded in the Schedules at the levels applying on this date. At each subsequent re-negotiation of a concession or negotiation of a new concession the applicable date for the tariff item in question shall become the date of the incorporation of the new concession in the appropriate Schedule. However, the date of the instrument by which a concession on any particular tariff item was first incorporated into GATT 1947 or GATT 1994 shall also continue to be recorded in column 6 of the Loose-Leaf Schedules.
3. ‘Other duties or charges’ shall be recorded in respect of all tariff bindings.
4. Where a tariff item has previously been the subject of a concession, the level of ‘other duties or charges’ recorded in the appropriate Schedule shall not be higher than the level obtaining at the time of the first incorporation of the concession in that Schedule. It will be open to any Member to challenge the existence of an ‘other duty or charge’, on the ground that no such ‘other duty or charge’ existed at the time of the original binding of the item in question, as well as the consistency of the recorded level of any ‘other duty or charge’ with the previously bound level, for a period of three years after the date of entry into force of the WTO Agreement or, three years after the date of deposit with the Director-General of the WTO of the instrument incorporating the Schedule in question into GATT 1994, if that is a later date.
5. The recording of ‘other duties or charges’ in the Schedules is without prejudice to their consistency with rights and obligations under GATT 1994 other than those affected by paragraph 4. All Members retain the right to challenge, at any time, the consistency of any ‘other duty or charge’ with such obligations.
6. For the purposes of this Understanding, the provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding shall apply.
7. ‘Other duties or charges’ omitted from a Schedule at the time of deposit of the instrument incorporating the Schedule in question into GATT 1994 with, until the date of entry into force of the WTO Agreement, the Director-General to the Contracting Parties to GATT 1947 or, thereafter, with the Director-General of the WTO, shall not subsequently be added to it and any ‘other duty or charge’ recorded at a level lower than that prevailing on the applicable date shall not be restored to that level unless such additions or changes are made within six months of the date of deposit of the instrument.
8. The decision in paragraph 2 regarding the date applicable to each concession for the purposes of paragraph l(b) of Article II of GATT 1994 supersedes the decision regarding the applicable date taken on 26 March 1980 (BISD 27S/24).
UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XVII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
MEMBERS,
Noting that Article XVII provides for obligations on Members in respect of the activities of the State trading enterprises referred to in paragraph 1 of Article XVII, which are required to be consistent with the general principles of non-discriminatory treatment prescribed in GATT 1994 for governmental measures affecting imports or exports by private traders;
Noting further that Members are subject to their GATT 1994 obligations in respect of those governmental measures affecting State trading enterprises;
Recognizing that this Understanding is without prejudice to the substantive disciplines prescribed in Article XVII;
HEREBY AGREE AS FOLLOWS:
1. In order to ensure the transparency of the activities of State trading enterprises, Members shall notify such enterprises to the Council for Trade in Goods, for review by the working party to be set up under paragraph 5, in accordance with the following working definition:
‘Governmental and non-governmental enterprises, including marketing boards, which have been granted exclusive or special rights or privileges, including statutory or constitutional powers, in the exercise of which they influence through their purchases or sales the level or direction of imports or exports.’
This notification requirement does not apply to imports of products for immediate or ultimate consumption in governmental use or in use by an enterprise as specified above and not otherwise for resale or use in the production of goods for sale.
2. Each Member shall conduct a review of its policy with regard to the submission of notifications on State trading enterprises to the Council for Trade in Goods, taking account of the provisions of this Understanding. In carrying out such a review, each Member should have regard to the need to ensure the maximum transparency possible in its notifications so as to permit a clear appreciation of the manner of operation of the enterprises notified and the effect of their operations on international trade.
3. Notifications shall be made in accordance with the questionnaire on State trading adopted on 24 May 1960 (BISD 9S/184—185), it being understood that Members shall notify the enterprises referred to in paragraph 1 whether or not imports or exports have in fact taken place.
4. Any Member which has reason to believe that another Member has not adequately met its notification obligation may raise the matter with the Member concerned. If the matter is not satisfactorily resolved it may make a counter-notification to the Council for Trade in Goods, for consideration by the working party set up under paragraph 5, simultaneously informing the Member concerned.
5. A working party shall be set up, on behalf of the Council for Trade in Goods, to review notifications and counter-notifications. In the light of this review and without prejudice to paragraph 4(c) of Article XVII, the Council for Trade in Goods may make recommendations with regard to the adequacy of notifications and the need for further information. The working party shall also review, in the light of the notifications received, the adequacy of the abovementioned questionnaire on State trading and the coverage of State trading enterprises notified under paragraph 1. It shall also develop an illustrative list showing the kinds of relationships between governments and enterprises, and the kinds of activities, engaged in by these enterprises, which may be relevant for the purposes of Article XVII. It is understood that the Secretariat will provide a general background paper for the working party on the operations of State trading enterprises as they relate to international trade. Membership of the working party shall be open to all Members indicating their wish to serve on it. It shall meet within a year of the date of entry into force of the WTO Agreement and thereafter at least once a year. It shall report annually to the Council for Trade in Goods ( 6 ).
UNDERSTANDING ON THE BALANCE-OF-PAYMENTS PROVISIONS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
MEMBERS,
Recognizing the provisions of Articles XII and XVIII:B of GATT 1994 and of the Declaration on Trade Measures Taken for Balance-of-Payments Purposes adopted on 28 November 1979 (BISD 26S/205—209, referred to in this Understanding as the ‘1979 Declaration’) and in order to clarify such provisions ( 7 );
HEREBY AGREE AS FOLLOWS:
Application of Measures
1. Members confirm their commitment to announce publicly, as soon as possible, time-schedules for the removal of restrictive import measures taken for balance-of-payments purposes. It is understood that such time-schedules may be modified as appropriate to take into account changes in the balance-of-payments situation. Whenever a time-schedule is not publicly announced by a Member, that Member shall provide justification as to the reasons therefor.
2. Members confirm their commitment to give preference to those measures which have the least disruptive effect on trade. Such measures (referred to in this Understanding as ‘price-based measures’) shall be understood to include import surcharges, import deposit requirements or other equivalent trade measures with an impact on the price of imported goods. It is understood that, notwithstanding the provisions of Article II, price-based measures taken for balance-of-payments purposes may be applied by a Member in excess of the duties inscribed in the Schedule of that Member. Furthermore, that Member shall indicate the amount by which the price-based measure exceeds the bound duty clearly and separately under the notification procedures of this Understanding.
3. Members shall seek to avoid the imposition of new quantitative restrictions for balance-of-payments purposes unless, because of a critical balance-of-payments situation, price-based measures cannot arrest a sharp deterioration in the external payments position. In those cases in which a Member applies quantitative restrictions, it shall provide justification as to the reasons why price-based measures are not an adequate instrument to deal with the balance-of-payments situation. A Member maintaining quantitative restrictions shall indicate in successive consultations the progress made in significantly reducing the incidence and restrictive effect of such measures. It is understood that not more than one type of restrictive import measure taken for balance-of-payments purposes may be applied on the same product.
4. Members confirm that restrictive import measures taken for balance-of-payments purposes may only be applied to control the general level of imports and may not exceed what is necessary to address the balance-of-payments situation. In order to minimize any incidental protective effects, a Member shall administer restrictions in a transparent manner. The authorities of the importing Member shall provide adequate justification as to the criteria used to determine which products are subject to restriction. As provided in paragraph 3 of Article XII and paragraph 10 of Article XVIII, Members may, in the case of certain essential products, exclude or limit the application of surcharges applied across the board or other measures applied for balance-of-payments purposes. The term ‘essential products’ shall be understood to mean products which meet basic consumption needs or which contribute to the Member's effort to improve its balance-of-payments situation, such as capital goods or inputs needed for production. In the administration of quantitative restrictions, a Member shall use discretionary licensing only when unavoidable and shall phase it out progressively. Appropriate justification shall be provided as to the criteria used to determine allowable import quantities or values.
Procedures for Balance-of-Payments Consultations
5. The Committee on Balance-of-Payments Restrictions (referred to in this Understanding as the ‘Committee’) shall carry out consultations in order to review all restrictive import measures taken for balance-of-payments purposes. The membership of the Committee is open to all Members indicating their wish to serve on it. The Committee shall follow the procedures for consultations on balance-of-payments restrictions approved on 28 April 1970 (BISD 18S/48—53, referred to in this Understanding as ‘full consultation procedures’), subject to the provisions set out below.
6. A Member applying new restrictions or raising the general level of its existing restrictions by a substantial intensification of the measures shall enter into consultations with the Committee within four months of the adoption of such measures. The Member adopting such measures may request that a consultation be held under paragraph 4(a) of Article XII or paragraph 12(a) of Article XVIII as appropriate. If no such request has been made, the Chairman of the Committee shall invite the Member to hold such a consultation. Factors that may be examined in the consultation would include inter alia the introduction of new types of restrictive measures for balance-of-payments purposes, or an increase in the level or product coverage of restrictions.
7. All restrictions applied for balance-of-payments purposes shall be subject to periodic review in the Committee under paragraph 4(b) of Article XII or under paragraph 12(b) of Article XVIII, subject to the possibility of altering the periodicity of consultations in agreement with the consulting Member or pursuant to any specific review procedure that may be recommended by the General Council.
8. Consultations may be held under the simplified procedures approved on 19 December 1972 (BISD 20S/47—49, referred to in this Understanding as ‘simplified consultation procedures’) in the case of least-developed country Members or in the case of developing country Members which are pursuing liberalization efforts in conformity with the schedule presented to the Committee in previous consultations. Simplified consultation procedures may also be used when the Trade Policy Review of a developing country Member is scheduled for the same calendar year as the date fixed for the consultations. In such cases the decision as to whether full consultation procedures should be used will be made on the basis of the factors enumerated in paragraph 8 of the 1979 Declaration. Except in the case of least-developed country Members, no more than two successive consultations may be held under simplified consultation procedures.
Notification and Documentation
9. A Member shall notify to the General Council the introduction of or any changes in the application of restrictive import measures taken for balance-of-payments purposes, as well as any modifications in time-schedules for the removal of such measures as announced under paragraph 1. Significant changes shall be notified to the General Council prior to or not later than 30 days after their announcement. On a yearly basis, each Member shall make available to the Secretariat a consolidated notification, including all changes in laws, regulations, policy statements or public notices, for examination by Members. Notifications shall include full information, as far as possible, at the tariff-line level, on the type of measures applied, the criteria used for their administration, product coverage and trade flows affected.
10. At the request of any Member, notifications may be reviewed by the Committee. Such reviews would be limited to the clarification of specific issues raised by a notification or examination of whether a consultation under paragraph 4(a) of Article XII or paragraph 12(a) of Article XVVII is required. Members which have reasons to believe that a restrictive import measure applied by another Member was taken for balance-of-payments purposes may bring the matter to the attention of the Committee. The Chairman of the Committee shall request information on the measure and make it available to all Members. Without prejudice to the right of any member of the Committee to seek appropriate clarifications in the course of consultations, questions may be submitted in advance for consideration by the consulting Member.
11. The consulting Member shall prepare a Basic Document for the consultations which, in addition to any other information considered to be relevant, should include: (a) an overview of the balance-of-payments situation and prospects, including a consideration of the internal and external factors having a bearing on the balance-of-payment situation and the domestic policy measures taken in order to restore equilibrium on a sound and lasting basis; (b) a full description of the restrictions applied for balance-of-payments purposes, their legal basis and steps taken to reduce incidental protective effects; (c) measures taken since the last consultation to liberalize import restrictions, in the light of the conclusions of the Committee; (d) a plan for the elimination and progressive relaxation of remaining restrictions. References may be made, when relevant, to the information provided in other notifications or reports made to the WTO. Under simplified consultation procedures, the consulting Member shall submit a written statement containing essential information on the elements covered by the Basic Document.
12. The Secretariat shall, with a view to facilitating the consultations in the Committee, prepare a factual background paper dealing with the different aspects of the plan for consultations. In the case of developing country Members, the Secretariat document shall include relevant background and analytical material on the incidence of the external trading environment on the balance-of-payments situation and prospects of the consulting Member. The technical assistance services of the Secretariat shall, at the request of a developing country Member, assist in preparing the documentation for the consultations.
Conclusions of Balance-of-Payments Consultations
13. The Committee shall report on its consultations to the General Council. When full consultation procedures have been used, the report should indicate the Committee's conclusions on the different elements of the plan for consultations, as well as the facts and reasons on which they are based. The Committee shall endeavour to include in its conclusions proposals for recommendations aimed at promoting the implementation of Articles XII and XVIII:B, the 1979 Declaration and this Understanding. In those cases in which a time-schedule has been presented for the removal of restrictive measures taken for balance-of-payments purposes, the General Council may recommend that, in adhering to such a time-schedule, a Member shall be deemed to be in compliance with its GATT 1994 obligations. Whenever the General Council has made specific recommendations, the rights and obligations of Members shall be assessed in the light of such recommendations. In the absence of specific proposals for recommendations by the General Council, the Committee's conclusions should record the different views expressed in the Committee. When simplified consultation procedures have been used, the report shall include a summary of the main elements discussed in the Committee and a decision on whether full consultation procedures are required.
UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XXIV OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
MEMBERS,
Having regard to the provisions of Article XXIV of GATT 1994;
Recognizing that customs unions and free-trade areas have greatly increased in number and importance since the establishment of GATT 1947 and today cover a significant proportion of world trade;
Recognizing the contribution to the expansion of world trade that may be made by closer integration between the economies of the parties to such agreements;
Recognizing also that such contribution is increased if the elimination between the constituent territories of duties and other restrictive regulations of commerce extends to all trade, and diminished if any major sector of trade is excluded;
Reaffirming that the purpose of such agreements should be to facilitate trade between the constituent territories and not to raise barriers to the trade of other Members with such territories; and that in their formation or enlargement the parties to them should to the greatest possible extent avoid creating adverse effects on the trade of other Members;
Convinced also of the need to reinforce the effectiveness of the role of the Council for Trade in Goods in reviewing agreements notified under Article XXIV, by clarifying the criteria and procedures for the assessment of new or enlarged agreements, and improving the transparency of all Article XXIV agreements;
Recognizing the need for a common understanding of the obligations of Members under paragraph 12 of Article XXIV;
HEREBY AGREE AS FOLLOWS:
1. Customs unions, free-trade areas, and interim agreements leading to the formation of a customs union or free-trade area, to be consistent with Article XXIV, must satisfy inter alia the provisions of paragraphs 5, 6, 7 and 8 of that Article.
Article XXIV: 5
2. The evaluation under paragraph 5(a) of Article XXIV of the general incidence of the duties and other regulations of commerce applicable before and after the formation of a customs union shall in respect of duties and charges be based upon an overall assessment of weighted average tariff rates and of customs duties collected. This assessment shall be based on import statistics for a previous representative period to be supplied by the customs union, on a tariff-line basis and in values and quantities, broken down by WTO country of origin. The Secretariat shall compute the weighted average tariff rates and customs duties collected in accordance with the methodology used in the assessment of tariff offers in the Uruguay Round of Multilateral Trade Negotiations. For this purpose, the duties and charges to be taken into consideration shall be the applied rates of duty. It is recognized that for the purpose of the overall assessment of the incidence of other regulations of commerce for which quantification and aggregation are difficult, the examination of individual measures, regulations, products covered and trade flows affected may be required.
3. The ‘reasonable length of time’ referred to in paragraph 5(c) of Article XXIV should exceed 10 years only in exceptional cases. In cases where Members parties to an interim agreement believe that 10 years would be insufficient they shall provide a full explanation to the Council for Trade in Goods of the need for a longer period.
Article XXIV: 6
4. Paragraph 6 of Article XXIV establishes the procedure to be followed when a Member forming a customs union proposes to increase a bound rate of duty. In this regard Members reaffirm that the procedure set forth in Article XXVIII, as elaborated in the guidelines adopted on 10 November 1980 (BISD 27S/26—28) and in the Understanding on the Interpretation of Article XXVIII of GATT 1994, must be commenced before tariff concessions are modified or withdrawn upon the formation of a customs union or an interim agreement leading to the formation of a customs union.
5. These negotiations will be entered into in good faith with a view to achieving mutually satisfactory compensatory adjustment. In such negotiations, as required by paragraph 6 of Article XXIV, due account shall be taken of reductions of duties on the same tariff line made by other constituents of the customs union upon its formation. Should such reductions not be sufficient to provide the necessary compensatory adjustment, the customs union would offer compensation, which may take the form of reductions of duties on other tariff lines. Such an offer shall be taken into consideration by the Members having negotiating rights in the binding being modified or withdrawn. Should the compensatory adjustment remain unacceptable, negotiations should be continued. Where, despite such efforts, agreement in negotiations on compensatory adjustment under Article XXVIII as elaborated by the Understanding on the Interpretation of Article XXVIII of GATT 1994 cannot be reached within a reasonable period from the initiation of negotiations, the customs union shall, nevertheless, be free to modify or withdraw the concessions; affected Members shall then be free to withdraw substantially equivalent concessions in accordance with Article XXVIII.
6. GATT 1994 imposes no obligation on Members benefiting from a reduction of duties consequent upon the formation of a customs union, or an interim agreement leading to the formation of a customs union, to provide compensatory adjustment to its constituents.
Review of Customs Unions and Free-Trade Areas
7. All notifications made under paragraph 7(a) of Article XXIV shall be examined by a working party in the light of the relevant provisions of GATT 1994 and of paragraph 1 of this Understanding. The working party shall submit a report to the Council for Trade in Goods on its findings in this regard. The Council for Trade in Goods may make such recommendations to Members as it deems appropriate.
8. In regard to interim agreements, the working party may in its report make appropriate recommendations on the proposed time-frame and on measures required to complete the formation of the customs union or free-trade area. It may if necessary provide for further review of the agreement.
9. Members parties to an interim agreement shall notify substantial changes in the plan and schedule included in that agreement to the Council for Trade in Goods and, if so requested, the Council shall examine the changes.
10. Should an interim agreement notified under paragraph 7(a) of Article XXIV not include a plan and schedule, contrary to paragraph 5(c) of Article XXIV, the working party shall in its report recommend such a plan and schedule. The parties shall not maintain or put into force, as the case may be, such agreement if they are not prepared to modify it in accordance with these recommendations. Provision shall be made for subsequent review of the implementaton of the recommendations.
11. Customs unions and constituents of free-trade areas shall report periodically to the Council for Trade in Goods, as envisaged by the Contracting Parties to GATT 1947 in their instruction to the GATT 1947 Council concerning reports on regional agreements (BISD 18S/38), on the operation of their relevant agreement. Any significant changes and/or developments in the agreements should be reported as they occur.
Dispute Settlement
12. The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding may be invoked with respect to any matters arising from the application of those provisions of Article XXIV relating to customs unions, free-trade areas or interim agreements leading to the formation of a customs union or free-trade area.
Article XXIV: 12
13. Each Member is fully responsible under GATT 1994 for the observance of all provisions of GATT 1994, and shall take such reasonable measures as may be available to it to ensure such observance by regional and local governments and authorities within its territory.
14. The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding may be invoked in respect of measures affecting its observance taken by regional or local governments or authorities within the territory of a Member. When the Dispute Settlement Body has ruled that a provision of GATT 1994 has not been observed, the responsible Member shall take such reasonable measures as may be available to it to ensure its observance. The provisions relating to compensation and suspension of concessions or other obligations apply in cases where it has not been possible to secure such obervance.
15. Each Member undertakes to accord sympathetic consideration to and afford adequate opportunity for consultation regarding any representations made by another Member concerning measures affecting the operation of GATT 1994 taken within the territory of the former.
UNDERSTANDING IN RESPECT OF WAIVERS OF OBLIGATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
MEMBERS HEREBY AGREE AS FOLLOWS:
1. A request for a waiver or for an extension of an existing waiver shall describe the measures which the Member proposes to take, the specific policy objectives which the Member seeks to pursue and the reasons which prevent the Member from achieving its policy objectives by measures consistent with its obligations under GATT 1994.
2. Any waiver in effect on the date of entry into force of the WTO Agreement shall terminate, unless extended in accordance with the procedures above and those of Article IX of the WTO Agreement, on the date of its expiry or two years from the date of entry into force of the WTO Agreement, whichever is earlier.
3. Any Member considering that a benefit accruing to it under GATT 1994 is being nullified or impaired as a result of:
the failure of the Member to whom a waiver was granted to observe the terms or conditions of the waiver, or
the application of a measure consistent with the terms and conditions of the waiver
may invoke the provisions of Article XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding.
UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XXVIII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
MEMBERS HEREBY AGREE AS FOLLOWS:
1. For the purposes of modification or withdrawal of a concession, the Member which has the highest ratio of exports affected by the concession (i.e. exports of the product to the market of the Member modifying or withdrawing the concession) to its total exports shall be deemed to have a principal supplying interest if it does not already have an initial negotiating right or a principal supplying interest as provided for in paragraph 1 of Article XXVIII. It is however agreed that this paragraph will be reviewed by the Council for Trade in Goods five years from the date of entry into force of the WTO Agreement with a view to deciding whether this criterion has worked satisfactorily in securing a redistribution of negotiating rights in favour of small and medium-sized exporting Members. If this is not the case, consideration will be given to possible improvements, including, in the light of the availability of adequate data, the adoption of a criterion based on the ratio of exports affected by the concession to exports to all markets of the product in question.
2. Where a Member considers that it has a principal supplying interest in terms of paragraph 1, it should communicate its claim in writing, with supporting evidence, to the Member proposing to modify or withdraw a concession, and at the same time inform the Secretariat. Paragraph 4 of the ‘Procedures for Negotiations under Article XXVIII’ adopted on 10 November 1980 (BISD 27S/26—28) shall apply in these cases.
3. In the determination of which Members have a principal supplying interest (whether as provided for in paragraph 1 above or in paragraph 1 of Article XXVIII) or substantial interest, only trade in the affected product which has taken place on an MFN basis shall be taken into consideration. However, trade in the affected product which has taken place under non-contractual preferences shall also be taken into account if the trade in question has ceased to benefit from such preferential treatment, thus becoming MFN trade, at the time of the negotiation for the modification or withdrawal of the concession, or will do so by the conclusion of that negotiation.
4. When a tariff concession is modified or withdrawn on a new product (i.e. a product for which three years' trade statistics are not available) the Member possessing initial negotiating rights on the tariff line where the product is or was formerly classified shall be deemed to have an initial negotiating right in the concession in question. The determination of principal supplying and substantial interests and the calculation of compensation shall take into account inter alia production capacity and investment in the affected product in the exporting Member and estimates of export growth, as well as forecasts of demand for the product in the importing Member. For the purposes of this paragraph, ‘new product’ is understood to include a tariff item created by means of a breakout from an existing tariff line.
5. Where a Member considers that it has a principal supplying or a substantial interest in terms of paragraph 4, it should communicate its claim in writing, with supporting evidence, to the Member proposing to modify or withdraw a concession, and at the same time inform the Secretariat. Paragraph 4 of the abovementioned ‘Procedures for Negotiations under Article XXVIII’ shall apply in these cases.
6. When an unlimited tariff concession is replaced by a tariff rate quota, the amount of compensation provided should exceed the amount of the trade actually affected by the modification of the concession. The basis for the calculation of compensation should be the amount by which future trade prospects exceed the level of the quota. It is understood that the calculation of future trade prospects should be based on the greater of:
the average annual trade in the most recent representative three-year period, increased by the average annual growth rate of imports in that same period, or by 10 per cent, whichever is the greater; or
trade in the most recent year increased by 10 per cent.
In no case shall a Member's liability for compensation exceed that which would be entailed by complete withdrawal of the concession.
7. Any Member having a principal supplying interest, whether as provided for in paragraph 1 above or in paragraph 1 of Article XXVIII, in a concession which is modified or withdrawn shall be accorded an initial negotiating right in the compensatory concessions, unless another form of compensation is agreed by the Members concerned.
ANNEX TO THE AGREEMENT ON TRADE FACILITATION
NOTIFICATION OF CATEGORY A COMMITMENTS UNDER THE AGREEMENT ON TRADE FACILITATION
ALBANIA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of Albania has the honour to notify the Preparatory Committee that it hereby designates the following provisions of the Agreement under Category A, which will be implemented upon entry into force of the Agreement:
Article 1.1 |
Publication |
Article 1.2 |
Information Available Through Internet |
|
|
Article 1.4 |
Notification |
Article 2.1 |
Opportunity to Comment and Information before Entry Into Force |
Article 2.2 |
Consultations |
|
|
Article 4.1 |
Right to Appeal or Review |
Article 5.2 |
Detention |
|
|
Article 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Article 6.2 |
Specific Disciplines on Fees and Charges for Customs Processing Imposed on or in Connection with Importation and Exportation |
Article 6.3 |
Penalty Disciplines |
|
|
Article 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees, and Charges |
Article 7.4 |
Risk Management |
Article 7.6 |
Establishment and Publication of Average Release Times |
|
|
Article 7.8 |
Expedited Shipments |
Article 7.9 |
Perishable Goods |
Article 8 |
Border Agency Cooperation |
Article 9 |
Movement of Goods Intended for Import under Customs Control |
Article 10.1 |
Formalities and Documentation Requirements |
Article 10.2 |
Acceptance of Copies |
Article 10.3 |
Use of International Standards |
Article 10.5 |
Preshipment Inspection |
Article 10.6 |
Use of Customs Brokers |
Article 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Article 10.8 |
Rejected Goods |
Article 10.9 |
Temporary Admission of Goods and Inward and Outward Processing |
Article 11-3 |
Transit Charges, Regulations, and Formalities |
11-4 |
Transit Strengthened Non-Discrimination |
11.11.1-5 |
Transit Guarantees |
11.12-13 |
Transit Cooperation and Coordination |
Article 12 |
Customs Cooperation |
BOTSWANA
Pursuant to the Ministerial Decision of the 7 December 2013 (WT/MIN (13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (herein referred to as the ‘Preparatory Committee’) shall, inter alia, received Members' notifications of Category A commitments under the Agreement of Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of the Republic of Botswana has the honour to notify the Preparatory Committee that the Republic of Botswana designates the following provisions contained in Section I of the Agree as Category A commitments, which will be implemented upon entry into force of the Agreement:
Article 2.1 |
Opportunity to Comment and Information before Entry into Force |
Article 2.2 |
Consultations |
Article 5.1 |
Notifications for enhanced controls or inspections |
Article 5.2 |
Detention |
Article 7.1 |
Pre-arrival Processing |
Article 7.2 |
Electronic Payment |
Article 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges |
Article 7.4 |
Risk Management |
Article 7.5 |
Post-clearance Audit |
Article 7.6 |
Establishment and Publication of Average Release Times |
Article 7.8 |
Expedited Shipments |
Article 7.9 |
Perishable Goods |
Article 9 |
Movement of goods intended for import under customs control |
Article 10.3 |
Use of International Standards |
Article 10.5 |
Preshipment Inspection |
Article 10.6 |
Use of Customs Brokers |
Article 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Article 10.8 |
Rejected Goods |
Article 10.9 |
Temporary Admission of Goods and Inward and Outward Processing |
BRAZIL
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Mission of Brazil has the honour to notify the Preparatory Committee on Trade Facilitation that it designates all the provisions in Section I of the Agreement as Category A commitments, except for the following:
BRUNEI DARUSSALAM
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911) and in accordance with Article 15 in Section II of the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’), the Preparatory Committee on Trade Facilitation established under the General Council (‘the Preparatory Committee’) shall, inter alia, receive Members' notification of Category A commitments under the Agreement.
With reference to the above, the Government of Brunei Darussalam has the honour to notify the Preparatory Committee that Brunei Darussalam hereby designates all the provisions in Articles 1 to 12 of the Agreement under Category A, except for the following:
Article 1.2 |
Information Available Through Internet: sub-paragraphs 2.1 (a) and (b) |
Article 4 |
Procedures for Appeal or Review |
Article 7.6 |
Establishment and Publication of Average Release Times: sub-paragraph 2 |
Article 7.7 |
Trade Facilitation Measures for Authorized Operators |
Article 10.4 |
Single Window |
CHILE
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and in accordance with Article 15 in Section II of the Agreement on Trade Facilitation (‘the Agreement’), Chile hereby advises that all the provisions in Section I of the Agreement have been designated as Category A commitments for implementation upon its entry into force, except for Article 7.7 on authorized operators.
CHINA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive Members' notification of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of the People's Republic of China has the honour to notify the Preparatory Committee that the People's Republic of China hereby designates all the provisions in Section I of the Agreement as Category A commitments except for the following:
— Paragraph 6 of Article 7 |
Establishment and Publication of Average Release Times; |
— Paragraph 4 of Article 10 |
Single Window; |
— Paragraph 9 of Article 10 |
Temporary Admission of Goods and Inward and Outward Processing; and |
— Article 12 |
Customs Cooperation. |
COLOMBIA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and in accordance with Article 15 in Section II of the Agreement on Trade Facilitation (‘the Agreement’), Colombia hereby notifies that all the provisions in Section I of the Agreement have been designated as Category A commitments for implementation upon its entry into force, except for the following:
— Article 5.3 |
Test Procedures |
— Article 7.9 |
Perishable Goods |
CONGO
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and Article 15 of Section II of the Agreement on Trade Facilitation, the Government of the Republic of the Congo has the honour to notify its Category A commitments, in accordance with the provisions listed below:
Article 3.1 |
Advance Rulings |
Article 4.1 |
Right to Appeal or Review |
Article 5.1 |
Notifications for Enhanced Controls or Inspections |
Article 5.2 |
Detention |
Article 5.3 |
Test Procedures |
Article 7.9 |
Perishable Goods |
Article 10.6 |
Use of Customs Brokers |
Article 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Article 10.9 |
Temporary Admission of Goods and Inward and Outward Processing |
COSTA RICA
Pursuant to paragraphs 2 and 3 of the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and in accordance with Article 15 in Section II of the Agreement on Trade Facilitation (‘the Agreement’), Costa Rica hereby notifies that all the provisions in Section I of the Agreement have been designated as Category A commitments, except for the following:
— Article 10.1.1 |
Formalities and documentation requirements |
— Article 10.2.2 |
Acceptance of copies |
CÔTE D'IVOIRE
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911) and Article 15 in Section II of the Agreement on Trade Facilitation, the Republic of Côte d'Ivoire hereby notifies its Category A commitments, in accordance with the provisions listed below:
Article 4.1 |
Right to Appeal or Review |
Article 5.1 |
Notifications for Enhanced Controls or Inspections |
Article 5.2 |
Detention |
Article 5.3 |
Test Procedures |
Article 7.4 |
Risk Management |
Article 7.5 |
Post-Clearance Audit |
Article 7.8 |
Expedited Shipments |
Article 7.9 |
Perishable Goods |
Article 9 |
Movement of Goods under Customs Control Intended for Import |
Article 10.3 |
Use of International Standards |
Article 10.5 |
Preshipment Inspection |
Article 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Article 10.8 |
Rejected Goods |
Article 10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
Article 11 |
Freedom of Transit |
DOMINICAN REPUBLIC
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of the Dominican Republic has the honour to notify the Preparatory Committee of the provisions designated in Category A, corresponding to Section I of the Agreement.
Art. 1.2 |
Information Available Through Internet |
Art. 1.3 |
Enquiry Points |
Art. 2.1 |
Opportunity to Comment and Information Before Entry into Force |
Art. 2.2 |
Consultations |
Art. 3 |
Advance Rulings |
Art. 4.1 |
Right to Appeal or Review |
Art. 5.2 |
Detention |
Art. 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Art. 6.3 |
Penalty Disciplines |
Art. 7.1 |
Pre-Arrival Processing |
Art. 7.2 |
Electronic Payment |
Art. 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges |
Art. 7.5 |
Post-Clearance Audit |
Art. 7.7 |
Trade Facilitation Measures for Authorized Operators |
Art. 9 |
Movement of Goods under Customs Control Intended for Import |
Art. 10.1 |
Formalities and Documentation Requirements |
Art. 10.3 |
Use of International Standards |
Art. 10.5 |
Preshipment Inspection |
Art. 10.6 |
Use of Customs Brokers |
Art. 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Art. 10.8 |
Rejected Goods |
Art. 10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
Art. 11 |
Freedom of Transit |
Art. 12 |
Customs Cooperation |
Art. 13.2 |
National Committee on Trade Facilitation |
ECUADOR
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and Article 15 of Section II of the Agreement on Trade Facilitation, the Republic of Ecuador hereby notifies its Category A commitments, in accordance with the provisions listed below:
Article No./Paragraphs (*1) |
Description |
2.1 |
Opportunity to Comment and Information Before Entry into Force |
4 |
Appeal or Review Procedures |
7.1 |
Pre-Arrival Processing |
7.6 |
Establishment and Publication of Average Release Times |
9 |
Movement of Goods under Customs Control Intended for Import |
10.3 |
Use of International Standards |
10.5 |
Preshipment Inspection |
10.6 |
Use of Customs Brokers |
10.7 |
Common Border Procedures and Uniform Documentation Requirements |
10.8 |
Rejected Goods |
10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
11.1 |
Freedom of Transit |
11.2 |
Freedom of Transit |
11.3 |
Freedom of Transit |
11.4 |
Freedom of Transit |
11.5 |
Freedom of Transit |
11.6 |
Freedom of Transit |
11.16 |
Freedom of Transit |
11.17 |
Freedom of Transit |
(*1)
Where reference is made to specific paragraphs, the commitment undertaken by the Republic of Ecuador is limited to the content of those specific paragraphs, not to that of the Article as a whole. |
EGYPT
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and Article 15 of Section II of the Agreement on Trade Facilitation, Egypt hereby notifies its Category ‘A’ commitments, in accordance with the provisions listed below:
Article Number |
Description |
Article 4 paragraphs (1,3,4,5) |
Procedures for Appeal or Review |
Article 5.2 |
Detention |
Article 6.2 |
Specific Disciplines on Fees and Charges for Customs Processing Imposed on or in Connection with Importation and Exportation |
Article 6.3 sub - paragraphs (3.2,3.4,3.5,3.6) |
Penalty Disciplines |
Article 7.3 sub - paragraphs (3.1,3.2,3.3,3.4,3.5) |
Separation of release from final determination of customs duties, taxes, fees and charges |
Article 9 |
Movement of goods intended for import under customs control |
Article 10.5 paragraph (5.1) |
Preshipment inspection |
Article 10.6 |
Use of customs brokers |
Article 10.7 |
Common border procedures and uniform documentation requirements |
Article 10.8 |
Rejected goods |
Article 10.9 |
Temporary admission of goods and inward and outward processing |
Article 11 paragraphs (2,3,11,12,13,14,15,16) |
Freedom of transit |
EL SALVADOR
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and in accordance with Article 15 in Section II of the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’), El Salvador hereby notifies its Category A commitments, in accordance with the provisions listed below:
Art. 1 |
Publication and Availability of Information |
Art. 2 |
Opportunity to Comment, Information Before Entry Into Force and Consultation |
Art. 3 |
Advance Rulings |
Art. 4 |
Appeal or Review Procedures: paragraphs 1, 2, 3, 4 and 5 |
Art. 5 |
Other Measures to Enhance Impartiality, Non-Discrimination and Transparency |
Art. 6 |
Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation, and Penalty Disciplines: paragraphs 1 and 3 |
Art. 7 |
Release and Clearance of Goods: paragraphs 1, 2, 3, 4, 5, 6, 7 (sub-paragraphs 3, 4, 5, 6), 8 and 9 |
Art. 8 |
Border Agency Cooperation: paragraph 1 |
Art. 9 |
Movement of Goods under Customs Control Intended for Import |
Art. 10 |
Formalities Connected with Importation and Exportation and Transit: paragraphs 1, 2 (sub-paragraphs 2 and 3), 3, 5 (sub-paragraph 1), 6, 7, 8 and 9 |
Art. 11 |
Freedom of Transit: paragraphs 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 14, 15, 16 and 17 |
Art. 12 |
Customs Cooperation: paragraphs 1, 3, 4, 5 (sub-paragraphs 1 and 2), 12 |
GABON
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911) and Article 15 in Section II of the Agreement on Trade Facilitation, the Gabonese Republic hereby notifies its Category A commitments, in accordance with the provisions listed below:
Article 5.2 |
Detention |
Article 7.1 |
Pre-arrival Processing |
Article 7.8 |
Expedited Shipments |
Article 7.9 |
Perishable Goods |
Article 9 |
Movement of Goods under Customs Control Intended for Import |
Article 10.5 |
Preshipment Inspection |
Article 10.8 |
Rejected Goods |
Article 10.9 |
Temporary Admission of Goods and Inward and Outward Processing |
GUATEMALA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter the ‘Agreement’).
With reference to the above, the Government of Guatemala wishes hereby to notify the Preparatory Committee that all the provisions in Section I of the Agreement have been designated as Category A commitments in accordance with WTO document WT/PCTF/W/27 of 7 July 2014, except for the following:
HONDURAS
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and Article 15 in Section II of the Agreement on Trade Facilitation (‘the Agreement’), Honduras hereby notifies its Category A commitments, in accordance with the provisions listed below:
Art. 1.1 |
Publication |
Art. 1.2 |
Information Available Through Internet |
Art. 1.3 |
Enquiry Points |
Art. 1.4 |
Notification |
Art. 3 |
Advance Rulings |
Art. 4 |
Appeal or Review Procedures |
Art. 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation (except for Art. 6.1.3 and 6.1.4) |
Art. 6.2 |
Specific Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Art. 6.3 |
Penalty Disciplines |
Art. 7.1 |
Pre-arrival Processing |
Art. 7.2 |
Electronic Payment |
Art. 7.4 |
Risk Management |
Art. 7.5 |
Post-Clearance Audit |
Art. 7.8 |
Expedited Shipments (except for Art. 7.8.2(d)) |
Art. 7.9 |
Perishable Goods (except for Art. 7.9.3) |
Art. 8 |
Border Agency Cooperation (except for Art. 8.2(c), (d) and (e)) |
Art. 9 |
Movement of Goods under Customs Control Intended for Import |
Art. 10.1 |
Formalities and Documentation Requirements |
Art. 10.3 |
Use of International Standards |
Art. 10.5 |
Pre-shipment Inspection |
Art. 10.6 |
Use of Customs Brokers |
Art. 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Art. 10.8 |
Rejected Goods |
Art. 10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
Art. 11 |
Freedom of Transit |
Art. 12.12 |
Bilateral and regional agreements |
HONG KONG, CHINA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of Hong Kong, China has the honour to notify the Preparatory Committee that Hong Kong, China hereby designates all provisions contained in Articles 1 to 12 of the Agreement (annexed to the above Ministerial Decision) under Category A, which will be implemented upon entry into force of the Agreement.
INDONESIA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of the Republic of Indonesia has the honour to notify the Preparatory Committee that Indonesia hereby designates the following provisions of the Agreement under Category A, which will be implemented upon entry into force of the Agreement:
Art. 6.3 |
Penalty Disciplines |
Art. 7.1 |
Pre-arrival Processing |
Art. 10.6 |
Use of Customs Brokers |
ISRAEL
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council shall, inter alia, receive from Members their notifications of Category A commitments under the Trade Facilitation Agreement.
With reference to the above, the State of Israel has the honour to notify the Preparatory Committee on Trade Facilitation that the State of Israel hereby designates all of the provisions contained in Section I of the Agreement as Category A.
JORDAN
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive Members' notifications of category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of Jordan has the honour to notify the Preparatory Committee that it designates all of the provisions contained in Section I of the Agreement (annexed to the above-mentioned Ministerial Decision) under Category A for implementation in full upon the entry into force of the Agreement, except for the following:
Article 1.1 |
Publication |
Article 1.2 |
Information Available Through Internet |
Article 1.3 |
Enquiry Points |
Article 3.1 |
Advance Rulings |
Article 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Article 7.1 |
Pre-arrival Processing |
Article 10.1 |
Formalities and Documentation Requirements |
Article 10.2 |
Acceptance of Copies |
Article 10.4 |
Single Window |
Article 11.5-10 |
Transit Procedures and Controls |
KOREA
I have the honour to refer to the Ministerial Decision on 7 December 2013 (WT/MIN(13)/36, WT/L/911), under which the Preparatory Committee on Trade Facilitation was established under the General Council (herein referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (herein referred to as ‘the Agreement’).
Further, I have the additional honour to notify the Preparatory Committee that the Government of the Republic of Korea has decided to designate all provisions contained in Articles 1 through 12 of the Agreement under Category A.
KUWAIT
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the State of Kuwait has the honour to notify the Preparatory Committee that the State of Kuwait hereby designates the provisions contained in Annex I under Category A, except for the following:
Article 3.1 |
Advance Rulings |
Article 6.2 |
Specific disciplines on Fees and Charges for Customs Processing Imposed on or in Connection with Importation and Exportation |
Article 7.4 |
Risk Management |
Article 7.5 |
Post-Clearance Audit |
Article 7.7 |
Trade Facilitation Measures for Authorized Operators |
Article 7.9 |
Perishable goods |
Article 8 |
Border Agency Co-operation |
Article 10.4 |
Single Window |
Article 11.11-15 |
Transit Guarantees |
Article 12 |
Customs cooperation |
KYRGYZ REPUBLIC
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, on behalf of the Ministry of Economy of the Kyrgyz Republic we are pleased to notify the Preparatory Committee that the Kyrgyz Republic designates the following provisions contained in Section I of the Agreement (annexed to the above mentioned Ministerial Decision) as Category A commitments, which will be implemented upon entry into force of the Agreement:
Article 4 |
All provisions (Procedures for Appeal or Review) |
Article 5 |
Paragraph 2 (Detention) |
Article 9 |
(Movement of Goods Intended for Import under Customs Control) |
Article 10 |
Paragraph 5 (Preshipment Inspection) |
Article 11 |
Paragraphs 1 to 4 (Transit Charges, Regulations, Formalities and Non-Discrimination) |
MACAO CHINA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN (13)/36), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of Macao, China has the honour to notify the Preparatory Committee that Macao, China hereby designates all the provisions contained in Articles 1 to 12 of the Agreement under Category A, which will be implemented upon entry into force of the Agreement, except for the following:
Art. 7: |
Paragraph 4 — Risk Management; |
Art. 7: |
Paragraph 5 — Post-Clearance Audit; |
Art. 9: |
Movement of Goods Intended for Import under Customs Control; |
Art. 10: |
Paragraph 4 — Single Window. |
MALAYSIA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of Malaysia has the honour to notify the Preparatory Committee that Malaysia hereby designates all provisions contained in Articles 1 to 12 of the Agreement (annexed to the above Ministerial Decision) under Category A, except for the following:
Article 7.8 |
(Expedited Shipments); and |
Article 11.9 |
(Advance filing and processing of transit documentation and data prior to the arrival of goods). |
MAURITIUS
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of the Republic of Mauritius has the honour to notify the Preparatory Committee that the Republic of Mauritius hereby designates the following provisions of the Agreement (annexed to the above Ministerial Decision) under Category A, which will be implemented upon entry into force of the Agreement:
Article 1.1 |
Publication |
Article 1.2 |
Information Available Through Internet |
Article 1.4 |
Notification |
Article 2.1 |
Opportunity to Comment and Information before Entry into Force |
Article 2.2 |
Consultation |
Article 3 |
Advanced Rulings |
Article 4 |
Procedures for Appeal or Review |
Article 5.1 |
Notifications for Enhanced Controls or Inspections |
Article 5.2 |
Detention |
Article 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Article 6.2 |
Specific Disciplines on Fees and Charges for Customs Processing Imposed on or in Connection with Importation and Exportation |
Article 6.3 |
Penalty Disciplines |
Article 7.1 |
Pre-arrival Processing |
Article 7.2 |
Electronic Payment |
Article 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and charges |
Article 7.5 |
Post-clearance Audit |
Article 7.9 |
Perishable Goods |
Article 9 |
Movement of Goods Intended for Import under Customs Control |
Article 10.1 |
Formalities and Documentation Requirements |
Article 10.2 |
Acceptance of Copies |
Article 10.5 |
Pre-shipment Inspection |
Article 10.6 |
Use of Customs Brokers |
Article 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Article 10.8 |
Rejected Goods |
Article 10.9.1 |
Temporary Admission of Goods |
Article 11 |
Freedom of Transit |
Article 23.2 |
National Committee on Trade Facilitation |
MEXICO
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of Mexico has the honour to notify the Preparatory Committee that it designates all of the provisions contained in Section I of the Agreement (annexed to the above-mentioned Ministerial Decision) under Category A for implementation in full upon the entry into force of the Agreement.
MOLDOVA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive Members' notifications of category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of the Republic of Moldova has the honour to notify the Preparatory Committee that the Republic of Moldova designates the following provisions contained in Section I of the Agreement (annexed to the above-mentioned Ministerial Decision) as Category A commitments, which will be implemented upon entry into force of the Agreement:
Article 1 |
Paragraphs 1 and 4 (Publication, Notification) |
Article 3 |
(ADVANCE RULINGS) |
Article 4 |
(PROCEDURES FOR APPEAL OR REVIEW) |
Article 5 |
Paragraph 2 (Detention) |
Article 6 |
Paragraph 2 (Specific disciplines on Fees and Charges for Customs Processing Imposed on or in Connection with Importation and Exportation) |
Article 7 |
Paragraphs 2, 4 and 5 (Electronic Payment, Risk Management, Post-clearance Audit) |
Article 8 |
(BORDER AGENCY COOPERATION) |
Article 9 |
(MOVEMENT OF GOODS INTENDED FOR IMPORT UNDER CUSTOMS CONTROL) |
Article 10 |
Paragraphs 3 and from 5 to 9 (Use of International Standards, Preshipment Inspection, Use of Customs Brokers, Common Border Procedures and Uniform Documentation Requirements, Rejected Goods, Temporary Admission of Goods and Inward and Outward Processing) |
Article 12 |
All provisions |
MONGOLIA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of Mongolia has the honour to notify the Preparatory Committee that Mongolia hereby designates the following provisions contained in Section I of the Agreement (annexed to the above-mentioned Ministerial Decision) as Category A commitments which will be implemented upon entry into force of the Agreement:
Art. 1.4 |
Notifications |
Art. 2.2 |
Consultations |
Art. 4 |
Procedures for appeal or review |
Art. 5.2 |
Detention |
Art. 6.1 |
General disciplines on fees and charges imposed on or in connection with importation exportation |
Art. 6.2 |
Specific disciplines on fees and charges imposed on or in connection with importation exportation |
Art. 10.1 |
Formalities and documentation requirements |
Art. 10.2 |
Acceptance of copies |
Art. 10.7 |
Common border procedures and uniform documentation requirements |
Art. 10.8 |
Rejected goods |
Art. 11 |
Freedom of transit |
MONTENEGRO
Pursuant to the Ministerial Decision of 7 December 2013 (wt/min(13)/36, wt/l/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of Montenegro has the honour to notify the Preparatory Committee that Montenegro hereby designates the following provisions contained in Section I of the Agreement under Category A, which will be implemented upon entry into force of the agreement:
Art. 1.1 |
Publication |
Art. 2.1 |
Opportunity to Comment and Information before Entry into Force |
Art. 2.2 |
Consultations |
Art. 3.1 |
Advance Rulings |
Art. 4 |
Procedures for Appeal or Review |
Art. 5.2 |
Detention |
Art. 5.3 |
Test Procedures |
Art. 6.2 |
Specific Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Art. 6.3 |
Penalty Disciplines |
Art. 7.2 |
Electronic Payment |
Art. 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges |
Art. 7.7 |
Trade Facilitation Measures for Authorized Operators |
Art. 8 |
Border Agency Cooperation |
Art. 9 |
Movement of Goods intended for import under Customs Control |
Art. 10.1 |
Formalities and Documentation Requirements |
Art. 10.2 |
Acceptance of Copies |
Art. 10.3 |
Use of International Standards |
Art. 10.5 |
Preshipment Inspection |
Art. 10.6 |
Use of Customs Brokers |
Art. 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Art. 10.8 |
Rejected Goods |
Art. 10.9 |
Temporary Admission of Goods and Inward and Outward Processing |
Art. 11.1-11.3 |
Transit Charges, Regulations, and Formalities |
Art. 11.4 |
Transit Strengthened Non-Discrimination |
Art. 11.11-11.15 |
Transit Guarantees |
Art. 11.16-11.17 |
Transit Cooperation and Coordination |
Art. 12 |
Customs Cooperation |
KINGDOM OF MOROCCO
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36 — WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation.
With reference to the above, the Kingdom of Morocco has the honour to notify the Preparatory Committee that it designates the following provisions under Category A.
Art. 1.1 |
Publication |
Art. 1.2 |
Information Available Through Internet |
Art. 1.3 |
Enquiry Points |
Art. 1.4 |
Notification |
Art. 2.1 |
Opportunity to Comment and Information before Entry into Force |
Art. 2.2 |
Consultations |
Art. 3 |
Advance Rulings |
Art. 4 |
Procedures for Appeal or Review |
Art. 5.2 |
Detention |
Art. 5.3 |
Test Procedures |
Art. 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Art. 6.2 |
Specific disciplines on Fees and Charges for Customs Processing Imposed on or in Connection with Importation and Exportation |
Art. 6.3 |
Penalty Disciplines |
Art. 7.2 |
Electronic Payment |
Art. 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges |
Art. 7.5 |
Post-Clearance Audit |
Art. 7.6 |
Establishment and Publication of Average Release Times |
Art. 7.7 |
Trade Facilitation Measures for Authorized Operators |
Art. 7.8 |
Expedited Shipments |
Art. 8 |
Borger Agency Cooperation |
Art. 9 |
Movement of Goods under Customs Control Intended for Import |
Art. 10.1 |
Formalities and Documentation Requirements |
Art. 10.2 |
Acceptance of Copies |
Art. 10.3 |
Use of International Standards |
Art. 10.6 |
Use of Customs Brokers |
Art. 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Art. 10.8 |
Rejected Goods |
Art. 10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
Art. 11 |
Freedom of Transit |
Art. 12 |
Customs Cooperation |
Art. 13.2 |
National Committee on Trade Facilitation |
NICARAGUA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of Nicaragua has the honour to notify the Preparatory Committee of the provisions designated in Category A, corresponding to Section I of the Agreement.
Art. 1.2 |
Information Available Through Internet |
Art. 1.4 |
Notification |
Art. 2.1 |
Opportunity to Comment and Information Before Entry into Force |
Art. 2.2 |
Consultations |
Art. 3 |
Advance Rulings |
Art. 4.1 |
Right to Appeal or Review |
Art. 5.2 |
Detention |
Art. 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Art. 6.3 |
Penalty Disciplines |
Art. 7.1 |
Pre-arrival Processing |
Art. 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges |
Art. 7.4 |
Risk Management |
Art. 7.5 |
Post-Clearance Audit |
Art. 7.8 |
Expedited Shipments |
Art. 7.9 |
Perishable Goods |
Art. 9 |
Movement of Goods under Customs Control Intended for Import |
Art. 10.1 |
Formalities and Documentation Requirements |
Art. 10.3 |
Use of International Standards |
Art. 10.5 |
Pre-shipment Inspection |
Art. 10.6 |
Use of Customs Brokers |
Art. 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Art. 10.8 |
Rejected Goods |
Art. 10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
Art. 11 |
Freedom of Transit |
Art. 12.1 |
Measures Promoting Compliance and Cooperation |
Art. 12.2 |
Exchange of Information |
Art. 12.3 |
Verification |
Art. 12.4 |
Request |
Art. 12.5 |
Protection and confidentiality |
Art. 12.6 |
Provision of information |
Art. 12.7 |
Postponement or refusal of a request |
Art. 12.8 |
Reciprocity |
Art. 12.9 |
Administrative burden |
Art. 12.10 |
Limitations |
Art. 12.11 |
Unauthorized use or disclosure |
Art. 12.12 |
Bilateral and regional agreements |
Art. 13.2 |
National Committee on Trade Facilitation |
NIGERIA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN (13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (herein referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement of Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of the Federal Republic of Nigeria has the honour to notify the Preparatory Committee that Nigeria hereby designates the following provisions contained in Section I of the Agreement under Category A, which will be implemented upon entry into force of the Agreement:
Art. 6.3: |
Penalty Disciplines; |
Art. 7.1: |
Pre arrival processing; |
Art. 7.3: |
Separation of Release from Final Determination of Customs Duties, taxes, fees and charges; |
Art. 9: |
Movement of goods intended for import under Customs control; |
Art. 10.7: |
Common Border Procedures and Uniform Documentation Requirements; |
Art. 10.9: |
Temporary Admission of Goods and/Inward and Outward Processing; |
Art. 11.3: |
Voluntary Restraints; |
Art. 11.4: |
Non-Discrimination; |
Art. 11.6: |
Documentation Requirements; |
Art. 11.8: |
Non-Application of TBTs; |
Art. 11.9: |
Advance Filling and Processing of Transit Documentation; |
Art. 11.10: |
Prompt Termination of Transit Operation; and |
Art. 11.11: |
Transit guarantees. |
OMAN
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of the Sultanate of Oman has the honour to notify the Preparatory Committee that Oman hereby designates the following provisions of the Agreement under Category A, which will be implemented upon entry into force of the Agreement:
Article 1: |
Publication: |
1.1 |
Information available through Internet |
1.4 |
Notification |
Article 2: |
Opportunity to comment, information before entry into force and consultation: |
2.2 |
Consultations |
Article 4: |
Appeal or review procedures: |
4.1 |
Right to appeal or review |
Article 5: |
Other measures to enhance impartiality, non–discrimination and transparency: |
5.1 |
Notifications for enhanced controls or inspections |
5.2 |
Detention |
5.3 |
Test procedures |
Article 6: |
Disciplines on fees and charges imposed on or in connection with importation and exportation: |
6.1 |
General disciplines on fees and charges imposed on or in connection with importation and exportation |
6.2 |
Specific disciplines on fees and charges imposed on or in connection with importation and exportation |
Article 7: |
Release and clearance of goods: |
7.3 |
Separation of release from final determination of customs duties, taxes, fees and charges |
Article 9: |
Movement of goods under customs control intended for import |
Article 10: |
Formalities connected with importation and exportation and transit: |
10.3 |
Use of international standards |
10.5 |
Pre-shipment inspection |
10.6 |
Use of customs brokers |
10.7 |
Common border procedures and uniform documentation requirements |
10.8 |
Rejected goods |
10.9 |
Temporary admission of goods-inward and outward processing |
Article 11: |
Freedom of Transit: |
11.1.3 |
Transit charges, regulations and formalities |
11.4 |
Transit strengthened non-discrimination |
11.11.1 |
Transit guarantees |
Article 13: |
Institutional Arrangements: |
13.2 |
National Committee on Trade Facilitation |
PANAMA
Pursuant to paragraphs 2 and 3 of the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911) and in accordance with Article 15 in Section II of the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’), Panama hereby notifies that the following provisions in Section I of the Agreement have been designated as Category A commitments for implementation upon its entry into force:
Article 1.3 |
Enquiry Points |
Article 4 |
Procedures for Appeal or Review |
Article 5.1 |
Notifications for Enhanced Controls or Inspections |
Article 5.2 |
Detention |
Article 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Article 6.2 |
Specific Disciplines on Fees and Charges for Customs Processing Imposed on or in Connection with Importation and Exportation |
Article 6.3 |
Penalty Disciplines |
Article 7.1 |
Pre-arrival Processing |
Article 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges |
Article 7.4 |
Risk Management |
Article 7.5 |
Post-clearance Audit |
Article 7.6 |
Establishment and Publication of Average Release Times |
Article 7.7 |
Trade Facilitation Measures for Authorized Operators |
Article 7.8 |
Expedited Shipments |
Article 7.9 |
Perishable Goods |
Article 9 |
Movement of Goods under Customs Control Intended for Import |
Article 10.1 |
Formalities and Documentation Requirements |
Article 10.2 |
Acceptance of Copies |
Article 10.3 |
Use of International Standards |
Article 10.5 |
Pre-shipment Inspection |
Article 10.6 |
Use of Customs Brokers |
Article 10.8 |
Rejected Goods |
Article 10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
Article 11 |
Freedom of Transit |
Article 12.1 |
Measures Promoting Compliance and Cooperation |
Article 12.2 |
Exchange of Information |
Article 12.3 |
Verification |
Article 12.4 |
Request |
Article 12.5 |
Protection and Confidentiality |
Article 12.6 |
Provision of Information |
Article 12.7 |
Postponement or Refusal of a Request |
Article 12.8 |
Reciprocity |
Article 12.9 |
Administrative Burden |
Article 12.10 |
Limitations |
Article 12.11 |
Unauthorized Use or Disclosure |
Article 12.12 |
Bilateral and Regional Agreements |
PARAGUAY
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and Article 15 of Section II of the Agreement on Trade Facilitation, the Republic of Paraguay hereby notifies its Category A commitments, in accordance with the provisions listed below:
Article No./Paragraphs (*1) |
Description |
3 |
Advance Rulings |
4 |
Appeal or Review Procedures |
5.2 |
Detention |
7.2 |
Electronic Payment |
7.4 |
Risk Management |
9 |
Movement of Goods under Customs Control Intended for Import |
10.2 |
Acceptance of Copies |
10.3 |
Use of International Standards |
10.4 |
Single Window |
10.5 |
Preshipment Inspection |
10.6 |
Use of Customs Brokers |
10.8 |
Rejected Goods |
10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
11 |
Freedom of Transit |
12 |
Customs Cooperation |
(*1)
Where reference is made to specific paragraphs, the commitment undertaken by the Republic of Paraguay is limited to the content of those specific paragraphs, not to that of the Article as a whole. |
PERU
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and in accordance with Article 15 in Section II of the Agreement on Trade Facilitation (‘the Agreement’), Peru hereby notifies that all the provisions in Section I of the Agreement have been designated as Category A commitments for implementation upon its entry into force, except for the following:
— Article 3 |
Advance Rulings |
— Article 5.1 |
Notifications for Enhanced Controls or Inspections |
— Article 5.3 |
Test Procedures |
— Article 6.3 |
Penalty Disciplines |
— Article 8 |
Border Agency Cooperation |
— Article 10.4 |
Single Window |
— Article 12 |
Customs Cooperation |
PHILIPPINES
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of the Philippines has the honour to notify the Preparatory Committee that it designates the following provisions contained in Section I of the Agreement (annexed to the above-mentioned Ministerial Decision) under Category A:
Article 1.1 |
Publication |
Article 1.2 |
Information Available Through Internet |
Article 1.3 |
Enquiry Points |
Article 1.4 |
Notification |
Article 2.1 |
Opportunity to Comment and Information before Entry Into Force |
Article 3 |
Advance Rulings |
Article 4 |
Procedures for Appeal or Review |
Article 5.2 |
Detention |
Article 5.3 |
Test Procedures |
Article 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Article 6.2 |
Specific Disciplines on Fees and Charges for Customs Processing Imposed on or in Connection with Importation and Exportation |
Article 6.3 |
Penalty Disciplines |
Article 7.1 |
Pre-arrival processing |
Article 7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees, and Charges |
Article 7.4 |
Risk Management |
Article 7.6 |
Establishment and Publication of Average Release Times |
Article 7.7 |
Trade Facilitation Measures for Authorized Operators |
Article 7.8 |
Expedited Shipments |
Article 7.9 |
Perishable Goods |
Article 9 |
Movement of Goods Intended for Import under Customs Control |
Article 10.2 |
Acceptance of Copies |
Article 10.3 |
Use of International Standards |
Article 10.5 |
Preshipment Inspection |
Article 10.6 |
Use of Customs Brokers |
Article 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Article 10.9 |
Temporary Admission of Goods and Inward and Outward Processing |
Article 11 |
Freedom of Transit |
Article 12 |
Customs Cooperation |
QATAR
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive Members' notification of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of the State of Qatar has the privilege to notify the Preparatory Committee that the State of Qatar hereby designates all the provisions in Section I of the Agreement as Category A commitments except for the following:
— 7.7 |
Trade Facilitation Measures for Authorized Operators |
KINGDOM OF SAUDI ARABIA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of Kingdom of Saudi Arabia has the honour to notify the Preparatory Committee that it designates all of the provisions contained in Section I of the Agreement (annexed to the above-mentioned Ministerial Decision) under Category A for implementation in full upon the entry into force of the Agreement, except for the following:
— Article 2.1 |
Opportunity to Comment and Information before Entry into Force |
— Article 10.4 |
Single Window |
SENEGAL
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) on the Agreement on Trade Facilitation, Senegal hereby notifies its Category A commitments, in accordance with the provisions listed below:
|
ARTICLE/PARAGRAPH |
DESCRIPTION |
1 |
2.1 |
Opportunity to Comment and Information before Entry into Force |
2 |
2.2 |
Consultations |
3 |
4 |
Appeal or Review Procedures |
4 |
5.2 |
Detention |
5 |
5.3 |
Test Procedures |
6 |
7.1 |
Pre-Arrival Processing |
7 |
7.2 |
Electronic Payment |
8 |
7.3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges |
9 |
7.4 |
Risk Management |
10 |
7.6 |
Establishment and Publication of Average Release Times |
11 |
9 |
Movement of Goods under Customs Control Intended for Import |
12 |
10.2 |
Acceptance of Copies |
13 |
10.3 |
Use of International Standards |
14 |
10.4 |
Single Window |
15 |
10.6 |
Use of Customs Brokers |
16 |
10.7 |
Common Border Procedures and Uniform Documentation Requirements |
17 |
10.8 |
Rejected Goods |
18 |
10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
19 |
12 |
Customs Cooperation |
SINGAPORE
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Government of the Republic of Singapore has the honour to notify the Preparatory Committee that the Republic of Singapore hereby designates all provisions contained in Articles 1 to 12 of the Agreement (annexed to the above Ministerial Decision) under Category A, which will be implemented upon entry into force of the Agreement.
SRI LANKA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of the Democratic Socialist Republic of Sri Lanka has the honour to notify the Preparatory Committee that Sri Lanka designates the following provisions of the Agreement (annexed to the above Ministerial Decision) under Category A, which will be implemented upon entry into force of the Agreement:
Provisions |
Title |
4.1 |
Right to Appeal or Review |
5.2 |
Detention |
6.3 |
Penalty Disciplines |
7.2 |
Electronic Payment |
7.8 |
Expedited Shipments |
9 |
Movement of Goods Intended for Import under Customs Control |
10.6 |
Use of Customs Brokers |
10.7 |
Common Border Procedures and Uniform Documentation Requirements |
10.8 |
Rejected Goods |
10.9 |
Temporary Admission of Goods and Inward and Outward Processing |
11 |
Freedom of Transit |
SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu has the honour to notify the Preparatory Committee that it designates all provisions contained in Articles 1 to 12 of the Agreement (annexed to the above-mentioned Ministerial Decision) under Category A for full implementation upon the entry into force of the Agreement.
TAJIKISTAN
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council is authorized, inter alia, to receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation.
With reference to the above, the Government of Tajikistan has the honour to notify the Preparatory Committee that it designates the following provisions of Section I of the Agreement (annexed to the above-mentioned Ministerial Decision) under Category A for implementation in full upon the entry into force of the Agreement:
Article 1 |
|
Paragraph 1 |
Publication |
Paragraph 2 |
Information Available Through Internet |
Article 4 |
All provisions |
Article 5 |
|
Paragraph 2 |
Detention |
Paragraph 3 |
Test Procedures |
Article 6 |
All provisions |
Article 7 |
|
Paragraph 1 |
Pre-arrival Processing |
Paragraph 3 |
Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges |
Paragraph 4 |
Risk Management |
Paragraph 5 |
Post-clearance Audit |
Paragraph 6 |
Establishment and Publication of Average Release Times |
Paragraph 8 |
Expedited Shipments |
Paragraph 9 |
Perishable Goods |
Article 8 |
Item 1 |
Article 9 |
All provisions |
Article 10 |
|
Paragraph 1 |
Formalities and Documentation Requirements |
Paragraph 2 |
Acceptance of Copies |
Paragraph 3 |
Use of International Standards |
Paragraph 5 |
Pre-shipment Inspection |
Paragraph 6 |
Use of Customs Brokers |
Paragraph 7 |
Common Border Procedures and Uniform Documentation Requirements |
Paragraph 8 |
Rejected Goods |
Paragraph 9 |
Temporary Admission of Goods/Inward and Outward Processing |
Article 11 |
All provisions |
THAILAND
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as ‘the Preparatory Committee’) shall, inter alia, receive from Members their notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as ‘the Agreement’).
With reference to the above, the Royal Thai Government has the honour to notify the Preparatory Committee that Thailand hereby designates all of the provisions contained in Section I of the Agreement under Category A, which will be implemented upon entry into force of the Agreement, except for the following:
Article 3 |
Advanced ruling: paragraph 5 and 6 |
Article 4 |
Procedures for appeal or review: paragraph 4 |
Article 5 |
Other measures: paragraph 1 Notifications and paragraph 3 Test procedures |
Article 6 |
Disciplines on fees and charges: sub-paragraph 3.4 and 3.7 Penalty disciplines |
Article 7 |
Release and clearance of goods: sub-paragraph 1.1 Pre-arrival processing |
Article 10 |
Formalities: paragraph 8 Rejected goods and paragraph 9 Temporary admission |
Article 11 |
Freedom of transit: paragraph 1, 8, and 9 |
Article 12 |
Customs cooperation: paragraph 2 exchange of information, sub-paragraph 5.1 (c)-(f) and sub-paragraph 6.1 Provision of information |
TUNISIA
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911) and Article 15 in Section II of the Agreement on Trade Facilitation, the Government of the Tunisian Republic hereby notifies the following provisions of that Agreement under Category A:
Article or paragraph number (*1) |
Description |
1.1 |
Publication |
1.2 |
Information available through internet |
1.3 |
Enquiry points |
1.4 |
Notification |
2.1 |
Opportunity to comment and information before entry into force |
4 |
Appeal or review procedures |
5.2 |
Detention |
6.3 |
Penalty disciplines |
7.1 |
Pre-arrival processing |
7.3 |
Separation of release from final determination of customs duties, taxes, fees and charges |
9 |
Movement of goods under customs control intended for import |
10.2 |
Acceptance of copies |
10.5 |
Pre-shipment inspection |
10.6 |
Use of customs brokers |
10.7 |
Common border procedures and uniform documentation requirements |
10.8 |
Rejected goods |
10.9 |
Temporary admission of goods/inward and outward processing |
11 except for 11.5 |
Freedom of transit except for the making available of physically separate infrastructure for traffic in transit. |
12 |
Customs cooperation |
23.2 |
National Committee on Trade Facilitation |
(*1)
Where a particular paragraph of an article is specified, Tunisia's commitment is limited to the content of that specific paragraph and does not concern the other provisions of the article. |
TURKEY
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of Turkey has the honour to notify the Preparatory Committee that it designates all of the provisions contained in Section I of the Agreement (annexed to the above-mentioned Ministerial Decision) under Category A for implementation in full upon the entry into force of the Agreement, except for the following:
Article 7.9 |
‘Perishable Goods’ |
UKRAINE
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of Ukraine has the honour to notify the Preparatory Committee that Ukraine hereby designates the following provisions contained in Section I of the Agreement under Category A, which will be implemented upon entry into force of the Agreement:
Art. 1.1 |
Publication |
Art. 1.2 |
Information Available Through Internet |
Art. 7.1 |
Pre-arrival Processing |
Art. 7.4 |
Risk Management (except for Art. 7.4.1, Art.7.4.2, Art.7.4.3) |
Art. 7.7 |
Trade Facilitation Measures for Authorized Operators |
Art. 7.8 |
Expedited Shipments |
Art. 7.9 |
Perishable Goods (except for Art. 7.9.1, Art.7.9.2) |
Art. 8 |
Border Agency Cooperation |
Art. 9 |
Movement of Goods under Customs Control Intended for Import |
Art. 10.8 |
Rejected Goods (except for Art. 10.8.2) |
Art. 10.9 |
Temporary Admission of Goods/Inward and Outward Processing |
Art. 11 |
Freedom of Transit (except for Art.11.3, Art.11.4, Art.11.5, Art.11.6, Art.11.7, Art.11.8, Art.11.10) |
URUGUAY
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36) and in accordance with Article 15 in Section II of the Agreement on Trade Facilitation (‘the Agreement’), the Oriental Republic of Uruguay shall designate all the provisions in Section I of the Agreement as Category A commitments upon its entry into force, with the exception of Article 7.3, ‘Separation of Release from Final Determination of Customs Duties, Taxes, Fees and Charges’, which shall be designated as Category B commitments.
VIET NAM
Pursuant to the Ministerial Decision of 7 December 2013 (WT/MIN(13)/36, WT/L/911), the Preparatory Committee on Trade Facilitation established under the General Council (hereinafter referred to as the ‘Preparatory Committee’) shall, inter alia, receive Members' notifications of Category A commitments under the Agreement on Trade Facilitation (hereinafter referred to as the ‘Agreement’).
With reference to the above, the Government of the Socialist Republic of Viet Nam has the honour to notify the Preparatory Committee that Viet Nam hereby designates the following provisions contained in Section I of the Agreement under Category A, which will be implemented upon entry into force of the Agreement:
Art. 1.3 |
Enquiry Points |
Art. 1.4 |
Notification |
Art. 2.1 |
Opportunity to Comment and Information before Entry into Force |
Art. 2.2 |
Consultations |
Art. 4.1 |
Right to Appeal or Review |
Art. 6.1 |
General Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Art. 6.2 |
Specific Disciplines on Fees and Charges Imposed on or in Connection with Importation and Exportation |
Art. 7.8 |
Expedited Shipments |
Art. 9 |
Movement of Goods under Customs Control intended for Import |
Art. 10.1 |
Formalities and Documentation Requirements |
Art. 10.2 |
Acceptance of Copies |
Art. 10.6 |
Use of Customs Brokers |
Art. 10.7 |
Common Border Procedures and Uniform Documentation Requirements |
Art. 11.1-3 |
Transit Charges, Regulations, and Formalities |
Art. 11.4 |
Transit Strengthened Non-Discrimination |
MARRAKESH PROTOCOL
to the General Agreement on Tariffs and Trade 1994
MEMBERS,
Having carried out negotiations within the framework of GATT 1947, pursuant to the Ministerial Declaration on the Uruguay Round,
HEREBY AGREE AS FOLLOWS:
The schedule annexed to this Protocol relating to a Member shall become a Schedule to GATT 1994 relating to that Member on the day on which the WTO Agreement enters into force for that Member. Any schedule submitted in accordance with the Ministerial Decision on measures in favour of least-developed countries shall be deemed to be annexed to this Protocol.
The tariff reductions agreed upon by each Member shall be implemented in five equal rate reductions, except as may be otherwise specified in a Member's Schedule. The first such reduction shall be made effective on the date of entry into force of the WTO Agreement, each successive reduction shall be made effective on 1 January of each of the following years, and the final rate shall become effective no later than the date four years after the date of entry into force of the WTO Agreement, except as may be otherwise specified in that Member's Schedule. Unless otherwise specified in its Schedule, a Member that accepts the WTO Agreement after its entry into force shall, on the date that Agreement enters into force for it, make effective all rate reductions that have already taken place together with the reductions which it would under the preceding sentence have been obligated to make effective on 1 January of the year following, and shall make effective all remaining rate reductions on the schedule specified in the previous sentence. The reduced rate should in each stage be rounded off to the first decimal. For agricultural products, as defined in Article 2 of the Agreement on Agriculture, the staging of reductions shall be implemented as specified in the relevant parts of the schedules.
The implementation of the concessions and commitments contained in the schedules annexed to this Protocol shall, upon request, be subject to multilateral examination by the Members. This would be without prejudice to the rights and obligations of Members under Agreements in Annex 1A of the WTO Agreement.
After the schedule annexed to this Protocol relating to a Member has become a Schedule to GATT 1994 pursuant to the provisions of paragraph 1, such Member shall be free at any time to withhold or to withdraw in whole or in part the concession in such Schedule with respect to any product for which the principal supplier is any other Uruguay Round participant the schedule of which has not yet become a Schedule to GATT 1994. Such action can, however, only be taken after written notice of any such withholding or withdrawal of a concession has been given to the Council for Trade in Goods and after consultations have been held, upon request, with any Member, the relevant schedule relating to which has become a Schedule to GATT 1994 and which has substantial interest in the product involved. Any concessions so withheld or withdrawn shall be applied on and after the day on which the schedule of the Member which has the principal supplying interest becomes a Schedule to GATT 1994.
Without prejudice to the provisions of paragraph 2 of Article 4 of the Agreement on Agriculture, for the purpose of the reference in paragraphs l:(b) and l(c) of Article II of GATT 1994 to the date of that Agreement, the applicable date in respect of each product which is the subject of a concession provided for in a schedule of concessions annexed to this Protocol shall be the date of this Protocol.
For the purpose of the reference in paragraph 6(a) of Article II of GATT 1994 to the date of that Agreement, the applicable date in respect of a schedule of concessions annexed to this Protocol shall be the date of this Protocol.
In cases of modification or withdrawal of concessions relating to non-tariff measures as contained in Part III of the schedules, the provisions of Article XXVIII of GATT 1994 and the ‘Procedures for Negotiations under Article XXVIII’ adopted on 10 November 1980 (BISD 27S/26—28) shall apply. This would be without prejudice to the rights and obligations of Members under GATT 1994.
In each case in which a schedule annexed to this Protocol results for any product in treatment less favourable than was provided for such product in the Schedules of GATT 1947 prior to the entry into force of the WTO Agreement, the Member to whom the schedule relates shall be deemed to have taken appropriate action as would have been otherwise necessary under the relevant provisions of Article XXVIII of GATT 1947 or 1994. The provisions of this paragraph shall apply only to Egypt, Peru, South Africa and Uruguay.
The Schedules annexed hereto are authentic in the English, French or Spanish language as specified in each Schedule.
The date of this Protocol is 15 April 1994.
[The agreed schedules of participants will be annexed to the Marrakesh Protocol in the treaty copy of the WTO Agreement.]
AGREEMENT ON AGRICULTURE
MEMBERS,
Having decided to establish a basis for initiating a process of reform of trade in agriculture in line with the objectives of the negotiations as set out in the Punta del Este Declaration;
Recalling that their long-term objective as agreed at the Mid-Term Review of the Uruguay Round ‘is to establish a fair and market-oriented agricultural trading system and that a reform process should be initiated through the negotiation of commitments on support and protection and through the establishment of strengthened and more operationally effective GATT rules and disciplines’;
Recalling further that ‘the abovementioned long-term objective is to provide for substantial progressive reductions in agricultural support and projection sustained over an agreed period of time, resulting in correcting and preventing restrictions and distortions in world agricultural markets’;
Committed to achieving specific binding commitments in each of the following areas: market access; domestic support; export competition; and to reaching an agreement on sanitary and phytosanitary issues;
Having agreed that in implementing their commitments on market access, developed country Members would take fully into account the particular needs and conditions of developing country Members by providing for a greater improvement of opportunities and terms of access for agricultural products of particular interest to these Members, including the fullest liberalization of trade in tropical agricultural products as agreed at the Mid-Term Review, and for products of particular importance to the diversification of production from the growing of illicit narcotic crops;
Noting that commitments under the reform programme should be made in an equitable way among all Members, having regard to non-trade concerns, including food security and the need to protect the environment; having regard to the agreement that special and differential treatment for developing countries is an integral element of the negotiations, and taking into account the possible negative effects of the implementation of the reform programme on least-developed and net food-importing developing countries;
HEREBY AGREE AS FOLLOWS:
PART I
Article 1
Definition of Terms
In this Agreement, unless the context otherwise requires:
‘Aggregate Measurement of Support’ and ‘AMS’ mean the annual level of support, expressed in monetary terms, provided for an agricultural product in favour of the producers of the basic agricultural product or non-product-specific support provided in favour of agricultural producers in general, other than support provided under programmes that qualify as exempt from reduction under Annex 2 to this Agreement, which is:
with respect to support provided during the base period, specified in the relevant tables of supporting material incorporated by reference in Part IV of a Member's Schedule; and
with respect to support provided during any year of the implementation period and thereafter, calculated in accordance with the provisions of Annex 3 of this Agreement and taking into account the constituent data and methodology used in the tables of supporting material incorporated by reference in Part IV of the Member's Schedule;
‘basic agricultural product’ in relation to domestic support commitments is defined as the product as close as practicable to the point of first sale as specified in a Member's Schedule and in the related supporting material;
‘budgetary outlays’ or ‘outlays’ includes revenue foregone;
‘Equivalent Measurement of Support’ means the annual level of support, expressed in monetary terms, provided to producers of a basic agricultural product through the application of one or more measures, the calculation of which in accordance with the AMS methodology is impracticable, other than support provided under programmes that qualify as exempt from reduction under Annex 2 to this Agreement, and which is:
with respect to support provided during the base period, specified in the relevant tables of supporting material incorporated by reference in part IV of a Member's Schedule; and
with respect to support provided during any year of the implementation period and thereafter, calculated in accordance with the provisions of Annex 4 of this Agreement and taking into account the constituent data and methodology used in the tables of supporting material incorporated by reference in Part IV of the Member's Schedule;
‘export subsidies’ refers to subsidies contingent upon export performance, including the export subsidies listed in Article 9 of this Agreement;
‘implementation period’ means the six-year period commencing in the year 1995, except that, for the purposes of Article 13, it means the nine-year period commencing in 1995;
‘market access concessions’ includes all market access commitments undertaken pursuant to this Agreement;
‘Total Aggregate Measurement of Support’ and ‘Total AMS’ mean the sum of all domestic support provided in favour of agricultural producers, calculated as the sum of all aggregate measurements of support for basic agricultural products, all non-product-specific aggregate measurements of support and all equivalent measurements of support for agricultural products, and which is:
with respect to support provided during the base period (i.e. the ‘Base Total AMS’) and the maximum support permitted to be provided during any year of the implementation period or thereafter (i.e. the ‘Annual and Final Bound Commitment Levels’), as specified in Part IV of a Member's Schedule; and
with respect to the level of support actually provided during any year of the implementation period and thereafter (i.e. the ‘Current Total AMS’), calculated in accordance with the provisions of this Agreement, including Article 6, and with the constituent data and methodology used in the tables of supporting material incorporated by reference in part IV of the Member's Schedule;
‘year’ in paragraph (f) above and in relation to the specific commitments of a Member refers to the calendar, financial or marketing year specified in the Schedule relating to that Member.
Article 2
Product Coverage
This Agreement applies to the products listed in Annex 1 to this Agreement, hereinafter referred to as agricultural products.
PART II
Article 3
Incorporation of Concessions and Commitments
PART III
Article 4
Market Access
Article 5
Special Safeguard Provisions
Notwithstanding the provisions of paragraph l(b) of Article II of GATT 1994, any Member may take recourse to the provisions of paragraphs 4 and 5 below in connection with the importation of an agricultural product, in respect of which measures referred to in paragraph 2 of Article 4 of this Agreement have been converted into an ordinary customs duty and which is designated in its Schedule with the symbol ‘SSG’ as being the subject of a concession in respect of which the provisions of this Article may be invoked, if:
the volume of imports of that product entering the customs territory of the Member granting the concession during any year exceeds a trigger level which relates to the existing market access opportunity as set out in paragraph 4; or, but not concurrently:
the prize at which imports of that product may enter the customs territory of the Member granting the concession, as determined on the basis of the c.i.f. import price of the shipment concerned expressed in terms of its domestic currency, falls below a trigger price equal to the average 1986 to 1988 reference price ( 9 ) for the product concerned.
Any additional duty imposed under subparagraph l(a) shall only be maintained until the end of the year in which it has been imposed, and may only be levied at a level which shall not exceed one-third of the level of the ordinary customs duty in effect in the year in which the action is taken. The trigger level shall be set according to the following schedule based on market access opportunities defined as imports as a percentage of the corresponding domestic consumption ( 10 ) during the three preceding years for which data are available:
where such market access opportunities for a product are less than or equal to 10 per cent, the base trigger level shall equal 125 per cent;
where such market access opportunities for a product are greater than 10 per cent but less than or equal to 30 per cent, the base trigger level shall equal 110 per cent;
where such market access opportunities for a product are greater than 30 per cent, the base trigger level shall equal 105 per cent.
In all cases the additional duty may be imposed in any year where the absolute volume of imports of the product concerned entering the customs territory of the Member granting the concession exceeds the sum of (x) the base trigger level set out above multiplied by the average quantity of imports during the three preceding years for which data are available and (y) the absolute volume change in domestic consumption of the product concerned in the most recent year for which data are available compared to the preceding year, provided that the trigger level shall not be less than 105 per cent of the average quantity of imports in (x) above.
The additional duty imposed under subparagraph l(b) shall be set according to the following schedule:
if the difference between the c.i.f. import price of the shipment expressed in terms of the domestic currency (hereinafter referred to as the ‘import price’) and the trigger price as defined under that subparagraph is less than or equal to 10 per cent of the trigger price, no additional duty shall be imposed;
if the difference between the import price and the trigger price (hereinafter referred to as the ‘difference’) is greater than 10 per cent but less than or equal to 40 per cent of the trigger price, the additional duty shall equal 30 per cent of the amount by which the difference exceeds 10 per cent;
if the difference is greater than 40 per cent but less than or equal to 60 per cent of the trigger price, the additional duty shall equal 50 per cent of the amount by which the difference exceeds 40 per cent, plus the additional duty allowed under (b);
if the difference is greater than 60 per cent but less than or equal to 75 per cent, the additional duty shall equal 70 per cent of the amount by which the difference exceeds 60 per cent of the trigger price, plus the additional duties allowed under (b) and (c);
if the difference is greater than 75 per cent of the trigger price, the additional duty shall equal 90 per cent of the amount by which the difference exceeds 75 per cent, plus the additional duties allowed under (b), (c) and (d).
PART IV
Article 6
Domestic Support Commitments
A Member shall not be required to include in the calculation of its current Total AMS and shall not be required to reduce:
product-specific domestic support which would otherwise be required to be included in a Member's calculation of its Current AMS where such support does not exceed 5 per cent of that Member's total value of production of a basic agricultural product during the relevant year; and
non-product-specific domestic support which would otherwise be required to be included in a Member's calculation of its Current AMS where such support does not exceed 5 per cent of the value of that Member's total agricultural production.
For developing country Members, the de minimis percentage under this paragraph shall be 10 per cent.
Direct payments under production-limiting programmes shall not be subject to the commitment to reduce domestic support if:
such payments are based on fixed area and yields; or
such payments are made on 85 per cent or less of the base level of production; or
livestock payments are made on a fixed number of head.
The exemption from the reduction commitment for direct payments meeting the above criteria shall be reflected by the exclusion of the value of those direct payments in a Member's calculation of its Current Total AMS.
Article 7
General Disciplines on Domestic Support
Any domestic support measure in favour of agricultural producers, including any modification to such measure, and any measure that is subsequently introduced that cannot be shown to satisfy the criteria in Annex 2 to this Agreement or to be exempt from reduction by reason of any other provision of this Agreement shall be included in the Member's calculation of its Current Total AMS.
Where no Total AMS commitment exists in Part IV of a Member's Schedule, the Member shall not provide support to agricultural producers in excess of the relevant de minimis level set out in paragraph 4 of Article 6.
PART V
Article 8
Export Competition Commitments
Each Member undertakes not to provide export subsidies otherwise than in conformity with this Agreement and with the commitments as specified in that Member's Schedule.
Article 9
Export subsidy Commitments
The following export subsidies are subject to reduction commitments under this Agreement:
the provision by governments or their agencies of direct subsidies, including payments-in-kind, to a firm, to an industry, to producers of an agricultural product, to a cooperative or other association of such producers, or to a marketing board, contingent on export performance;
the sale or disposal for export by governments or their agencies of non-commercial stocks of agricultural products at a price lower than the comparable price charged for the like product to buyers in the domestic market;
payments on the export of an agricultural product that are financed by virtue of governmental action, whether or not a charge on the public account is involved, including payments that are financed from the proceeds of a levy imposed on the agricultural product concerned or on an agricultural product from which the exported product is derived;
the provisions of subsidies to reduce the costs of marketing exports of agricultural products (other than widely available export promotion and advisory services) including handling, up-grading and other processing costs, and the costs of international transport and freight;
internal transport and freight charges on export shipments, provided or mandated by governments, on terms more favourable than for domestic shipments;
subsidies on agricultural products contingent on their incorporation in exported products.
Except as provided in subparagraph (b), the export subsidy commitment levels for each year of the implementation period, as specified in a Member's Schedule, represent with respect to the export subsidies listed in paragraph 1 of this Article:
in the case of budgetary outlay reduction commitments, the maximum level of expenditure for such subsidies that may be allocated or incurred in that year in respect of the agricultural product, or group of products, concerned; and
in the case of export quantity reduction commitments, the maximum quantity of an agricultural product, or group of products, in respect of which such export subsidies may be granted in that year.
In any of the second through fifth years of the implementation period, a Member may provide export subsidies listed in paragraph 1 above in a given year in excess of the corresponding annual commitment levels in respect of the products or groups of products specified in Part IV of the Member's Schedule, provided that:
the cumulative amounts of budgetary outlays for such subsidies, from the beginning of the implementation period through the year in question, does not exceed the cumulative amounts that would have resulted from full compliance with the relevant annual outlay commitment levels specified in the Member's Schedule by more than 3 per cent of the base period level of such budgetary outlays;
the cumulative quantities exported with the benefit of such export subsidies, from the beginning of the implementation period through the year in question, does not exceed the cumulative quantities that would have resulted from full compliance with the relevant annual quantity commitment levels specified in the Member's Schedule by more than 1,75 per cent of the base period quantities;
the total cumulative amounts of budgetary outlays for such export subsidies and the quantities benefiting from such export subsidies over the entire implementation period are no greater than the totals that would have resulted from full compliance with the relevant annual commitment levels specified in the Member's Schedule; and
the Member's budgetary outlays for export subsidies and the quantities benefiting from such subsidies, at the conclusion of the implementation period, are no greater than 64 per cent and 79 per cent of the 1986-1990 base period levels, respectively. For developing country Members these percentages shall be 76 and 86 per cent, respectively.
Article 10
Prevention of Circumvention of Export Subsidy Commitments
Members donors of international food aid shall ensure:
that the provision of international food aid is not tied directly or indirectly to commercial exports of agricultural products to recipient countries;
that international food-aid transactions, including bilateral food aid which is monetized, shall be carried out in accordance with the FAO ‘Principles of Surplus Disposal and Consultative Obligations’, including, where appropriate, the system of Usual Marketing Requirements (UMRs); and
that such aid shall be provided to the extent possible in fully grant form or on terms no less concessional than those provided for in Article IV of the Food Aid Convention 1986.
Article 11
Incorporated Products
In no case may the per-unit subsidy paid on an incorporated agricultural primary product exceed the per-unit export subsidy that would be payable on exports of the primary product as such.
PART VI
Article 12
Disciplines on Export Prohibitions and Restrictions
Where any Member institutes any new export prohibition or restriction on foodstuffs in accordance with paragraph 2(a) of Article XI of GATT 1994, the Member shall observe the following provisions:
the Member instituting the export prohibition or restriction shall give due consideration to the effects of such prohibition or restriction on importing Member's food security;
before any Member institutes an export prohibition or restriction, it shall give notice in writing, as far in advance as practicable, to the Committee on Agriculture comprising such information as the nature and the duration of such measure, and shall consult, upon request, with any other Member having a substantial interest as an importer with respect to any matter related to the measure in question. The Member instituting such export prohibition or restriction shall provide, upon request, such a Member with necessary information.
PART VII
Article 13
Due Restraint
During the implementation period, notwithstanding the provisions of GATT 1994 and the Agreement on Subsidies and Countervailing Measures (referred to in this Article as the ‘Subsidies Agreement’):
domestic support measures that conform fully to the provisions of Annex 2 to this Agreement shall be:
non-actionable subsidies for purposes of countervailing duties ( 11 );
exempt from actions based on Article XVI of GATT 1994 and Part III of the Subsidies Agreement; and
exempt from actions based on non-violation nullification or impairment of the benefits of tariff concessions accruing to another Member under Article II of GATT 1994, in the sense of paragraph l(b) of Article XXIII of GATT 1994;
domestic support measures that conform fully to the provisions of Article 6 of this Agreement including direct payments that conform to the requirements of paragraph 5 thereof, as reflected in each Member's Schedule, as well as domestic support within de minimis levels and in conformity with paragraph 2 of Article 6, shall be:
exempt from the imposition of countervailing duties unless a determination of injury or threat thereof is made in accordance with Article VI of GATT 1994 and Part V of the Subsidies Agreement, and due restraint shall be shown in initiating any countervailing duty investigations;
exempt from actions based on paragraph 1 of Article XVI of GATT 1994 or Articles 5 and 6 of the Subsidies Agreement, provided that such measures do not grant support to a specific commodity in excess of that decided during the 1992 marketing year; and
exempt from actions based on non-violation nullification or impairment of the benefits of tariff concessions accruing to another Member under Article II of GATT 1994, in the sense of paragraph l(b) of Article XXIII of GATT 1994, provided that such measures do not grant support to a specific commodity in excess of that decided during the 1992 marketing year;
export subsidies that conform fully to the provisions of Part V of this Agreement, as reflected in each Member's Schedule, shall be:
subject to countervailing duties only upon a determination of injury or threat thereof based on volume, effect on prices, or consequent impact in accordance with Article VI of GATT 1994 and Part V of the Subsidies Agreement, and due restraint shall be shown in initiating any countervailing duty investigations; and
exempt from actions based on Article XVI of GATT 1994 or Articles 3, 5 and 6 of the Subsidies Agreement.
PART VIII
Article 14
Sanitary and Phytosanitary Measures
Members agree to give effect to the Agreement on the Application of Sanitary and Phytosanitary Measures.
PART IX
Article 15
Special and Differential Treatment
PART X
Article 16
Least-Developed and Net Food-Importing Developing Countries
PART XI
Article 17
Committee on Agriculture
A Committee on Agriculture is hereby established.
Article 18
Review of the Implementation of Commitments
Article 19
Consultation and Dispute Settlement
The provisions of Articles XXII and XXIII of GATT 1994, as elaborated and applied by the Dispute Settlement Understanding, shall apply to consultations and the settlement of disputes under this Agreement.
PART XII
Article 20
Continuation of the Reform Process
Recognizing that the long-term objective of substantial progressive reductions in support and protection resulting in fundamental reform is an on-going process, Members agree that negotiations for continuing the process will be initiated one year before the end of the implementation period, taking into account:
the experience to that date from implementing the reduction commitments;
the effects of the reduction commitments on world trade in agriculture;
non-trade concerns, special and differential treatment to developing country Members, and the objective to establish a fair and market-oriented agricultural trading system, and the other objectives and concerns mentioned in the preamble to this Agreement; and
what further commitments are necessary to achieve the abovementioned long-term objectives.
PART XIII
Article 21
Final Provisions
ANNEX 1
PRODUCT COVERAGE
This Agreement shall cover the following products:
HS Chapters 1 to 24 less fish and fish products, plus ( *1 )
HS Code |
2905 43 |
(mannitol) |
HS Code |
2905 44 |
(sorbitol) |
HS Headings |
3301 |
(essential oils) |
HS Headings |
3501 to 3505 |
(albuminoidal substances, modified starches, glues) |
HS Code |
3809 10 |
(finishing agents) |
HS Code |
3823 60 |
(sorbitol n.e.p.) |
HS Headings |
4101 to 4103 |
(hides and skins) |
HS Heading |
4301 |
(raw furskins) |
HS Headings |
5001 to 5003 |
(raw silk and silk waste) |
HS Headings |
5101 to 5103 |
(wool and animal hair) |
HS Headings |
5201 to 5203 |
(raw cotton, waste and cotton carded or combed) |
HS Heading |
5301 |
(raw flax) |
HS Heading |
5302 |
(raw hemp) |
The foregoing shall not limit the product coverage of the Agreement on the Application of Sanitary and Phytosanitary Measures.
ANNEX 2
DOMESTIC SUPPORT: THE BASIS FOR EXEMPTION FROM THE REDUCTION COMMITMENTS
Domestic support measures for which exemption from the reduction commitments is claimed shall meet the fundamental requirement that they have no, or at most minimal, trade-distorting effects or effects on production. Accordingly, all measures for which exemption is claimed shall conform to the following basic criteria:
the support in question shall be provided through a publicly-funded government programme (including government revenue foregone) not involving transfers from consumers; and,
the support in question shall not have the effect of providing price support to producers;
plus policy-specific criteria and conditions as set out below.
Government Service Programmes
2. General services
Policies in this category involve expenditures (or revenue foregone) in relation to programmes which provide services or benefits to agriculture or the rural community. They shall not involve direct payments to producers or processors. Such programmes, which include but are not restricted to the following list, shall meet the general criteria in paragraph 1 above and policy-specific conditions where set out below:
research, including general research, research in connection with environmental programmes, and research programmes relating to particular products;
pest and disease control, including general and product-specific pest and disease control measures, such as early-warning systems, quarantine and eradication;
training services, including both general and specialist training facilities;
extension and advisory services, including the provision of means to facilitate the transfer of information and the results of research to producers and consumers;
inspection services, including general inspection services and the inspection of particular products for health, safety, grading or standardization purposes;
marketing and promotion services, including market information, advice and promotion relating to particular products but excluding expenditure for unspecified purposes that could be used by sellers to reduce their selling price or confer a direct economic benefit to purchasers; and
infrastructural services, including: electricity reticulation, roads and other means of transport, market and port facilities, water supply facilities, dams and drainage schemes, and infrastructural works associated with environmental programmes. In all cases the expenditure shall be directed to the provision or construction of capital works only, and shall exclude the subsidized provision of on-farm facilities other than for the reticulation of generally available public utilities. It shall not include subsidies to inputs or operating costs, or preferential user charges.
3. Public stock-holding for food security purposes ( 12 )
Expenditures (or revenue foregone) in relation to the accumulation and holding of stocks of products which form an integral part of a food security programme identified in national legislation. This may include government aid to private storage of products as part of such a programme.
The volume and accumulation of such stocks shall correspond to pre-determined targets related solely to food security. The process of stock accumulation and disposal shall be financially transparent. Food purchases by the government shall be made at current market prices and sales from food security stocks shall be made at no less than the current domestic market price for the product and quality in question.
4. Domestic food aid ( 13 )
Expenditures (or revenue foregone) in relation to the provision of domestic food aid to sections of the population in need.
Eligibility to receive the food aid shall be subject to clearly-defined criteria related to nutritional objectives. Such aid shall be in the form of direct provision of food to those concerned or the provision of means to allow eligible recipients to buy food either at market or at subsidized prices. Food purchases by the government shall be made at current market prices and the financing and administration of the aid shall be transparent.
5. Direct payments to producers
Support provided through direct payments (or revenue foregone, including payments in kind) to producers for which exemption from reduction commitments is claimed shall meet the basic criteria set out in paragraph 1 above, plus specific criteria applying to individual types of direct payment as set out in paragraphs 6 through 13 below. Where exemption from reduction is claimed for any existing or new type of direct payment other than those specified in paragraphs 6 through 13, it shall conform to criteria (b) through (e) in paragraph 6, in addition to the general criteria set out in paragraph 1.
6. De-coupled income support
Eligibility for such payments shall be determined by clearly-defined criteria such as income, status as a producer or landowner, factor use or production level in a defined and fixed base period.
The amount of such payments in any given year shall not be related to, or based on the type or volume of production (including livestock units) undertaken by the producer in any year after the base period.
The amount of such payments in any given year shall not be related to, or based on, the prices, domestic or international, applying to any production undertaken in any year after the base period.
The amount of such payments in any given year shall not be related to, or based on, the factors of production employed in any year after the base period.
No prodution shall be required in order to receive such payments.
7. Government financial participation in income insurance and income safety-net programmes
Eligibility for such payments shall be determined by an income loss, taking into account only income derived from agriculture, which exceeds 30 per cent of average gross income or the equivalent in net income terms (excluding any payments from the same or similar schemes) in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and the lowest entry. Any producer meeting this condition shall be eligible to receive the payments.
The amount of such payments shall compensate for less than 70 per cent of the producer's income loss in the year the producer becomes eligible to receive this assistance.
The amount of any such payments shall relate solely to income; it shall not relate to the type or volume of production (including livestock units) undertaken by the producer; or to the prices, domestic or international, applying to such production; or to the factors of production employed.
Where a producer receives in the same year payments under this paragraph and under paragraph 8 (relief from natural disasters), the total of such payments shall be less than 100 per cent of the producer's total loss.
8. Payments (made either directly or by way of government financial participation in crop insurance schemes) for relief from natural disasters
Eligibility for such payments shall arise only following a formal recognition by government authorities that a natural or like disaster (including disease outbreaks, pest infestations, nuclear accidents, and war on the territory of the Member concerned) has occurred or is occurring; and shall be determined by a production loss which exceeds 30 per cent of the average of production in the preceding three-year period or a three-year average based on the preceding five-year period, excluding the highest and the lowest entry.
Payments made following a disaster shall be applied only in respect of losses of income, livestock (including payments in connection with the veterinary treatment of animals), land or other production factors due to the natural disaster in question.
Payments shall compensate for not more than the total cost of replacing such losses and shall not require or specify the type or quantity of future production.
Payments made during a disaster shall not exceed the level required to prevent or alleviate further loss as defined in criterion (b) above.
Where a producer receives in the same year payments under this paragraph and under paragraph 7 (income insurance and income safety-net programmes), the total of such payments shall be less than 100 per cent of the producer's total loss.
9. Structural adjustment assistance provided through producer retirement programmes
Eligibility for such payments shall be determined by reference to clearly defined criteria in programmes designed to facilitate the retirement of persons engaged in marketable agricultural production, or their movement to non-agricultural activities.
Payments shall be conditional upon the total and permanent retirement of the recipients from marketable agricultural production.
10. Structural adjustment assistance provided through resource retirement programmes
Eligibility for such payments shall be determined by reference to clearly defined criteria in programmes designed to remove land or other resources, including livestock, from marketable agricultural production.
Payments shall be conditional upon the retirement of land from marketable agricultural production for a minimum of three years, and in the case of livestock on its slaughter or definitive permanent disposal.
Payments shall not require or specify any alternative use for such land or other resources which involves the production of marketable agricultural products.
Payments shall not be related to either the type or quantity of production or to the prices domestic or international, applying to production undertaken using the land or other resources remaining in production.
11. Structural adjustment assistance provided through investment aids
Eligibility for such payments shall be determined by reference to clearly-defined criteria in government programmes designed to assist the financial or physical restructuring of a producer's operations in response to objectively demonstrated structural disadvantages. Eligibility for such programmes may also be based on a clearly-defined government programme for the re-privatization of agricultural land.
The amount of such payments in any given year shall not be related to, or based on, the type or volume of production (including livestock units) undertaken by the producer in any year after the base period other than as provided for under criterion (e) below.
The amount of such payments in any given year shall not be related to, or based on, the prices, domestic or international, applying to any production undertaken in any year after the base period.
The payments shall be given only for the period of time necessary for the realization of the investment in respect of which they are provided.
The payments shall not mandate or in any way designate the agricultural products to be produced by the recipients except to require them not to produce a particular product.
The payments shall be limited to the amount required to compensate for the structural disadvantage.
12. Payments under environmental programmes
Eligibility for such payments shall be determined as part of a clearly-defined government environmental or conservation programme and be dependent on the fulfilment of specific conditions under the government programme, including conditions related to production methods or inputs.
The amount of payment shall be limited to the extra costs or loss of income involved in complying with the government programme.
13. Payments under regional assistance programmes
Eligibility for such payments shall be limited to producers in disadvantaged regions. Each such region must be a clearly designated contiguous geographical area with a definable economic and administrative identity, considered as disadvantaged on the basis of neutral and objective criteria clearly spelt out in law or regulation and indicating that the region's difficulties arise out of more than temporary circumstances.
The amount of such payments in any given year shall not be related to, or based on, the type or volume of production (including livestock units) undertaken by the producer in any year after the base period other than to reduce that production.
The amount of such payments in any given year shall not be related to, or based on, the prices, domestic or international, applying to any production undertaken in any year after the base period.
Payments shall be available only to producers in eligible regions, but generally available to all producers within such regions.
Where related to production factors, payments shall be made at a degressive rate above a threshold level of the factor concerned.
The payments shall be limited to the extra costs or loss of income involved in undertaking agricultural production in the prescribed area.
ANNEX 3
DOMESTIC SUPPORT: CALCULATION OF AGGREGATE MEASUREMENT OF SUPPORT
1. Subject to the provisions of Article 6, an Aggregate Measurement of Support (AMS) shall be calculated on a product-specific basis for each basic agricultural product receiving market price support, non-exempt direct payments, or any other subsidy not exempted from the reduction commitment (‘other non-exempt policies’). Support which is non-product specific shall be totalled into one non-product-specific AMS in total monetary terms.
2. Subsidies under paragraph 1 shall include both budgetary outlays and revenue foregone by governments or their agents.
3. Support at both the national and sub-national level shall be included.
4. Specific agricultural levies or fees paid by producers shall be deducted from the AMS.
5. The AMS calculated as outlined below for the base period shall constitute the base level for the implementation of the reduction commitment on domestic support.
6. For each basic agricultural product, a specific AMS shall be established, expressed in total monetary value terms.
7. The AMS shall be calculated as close as practicable to the point of first sale of the basic agricultural product concerned. Measures directed at agricultural processors shall be included to the extent that such measures benefit the producers of the basic agricultural products.
8. Market price support: market price support shall be calculated using the gap between a fixed external reference price and the applied administered price multiplied by the quantity of production eligible to receive the applied administered price. Budgetary payments made to maintain this gap, such as buying-in or storage costs, shall not be included in the AMS.
9. The fixed external reference price shall be based on the years 1986 to 1988 and shall generally be the average f.o.b. unit value, for the basic agricultural product concerned in a net exporting country and the average c.i.f. unit value for the basic agricultural product concerned in a net importing country in the base period. The fixed reference price may be adjusted for quality differences as necessary.
10. Non-exempt direct payments: non-exempt direct payments which are dependent on a price gap shall be calculated either using the gap between the fixed reference price and the applied administered price multiplied by the quantity of production eligible to receive the administered price, or using budgetary outlays.
11. The fixed reference price shall be based on the years 1986 to 1988 and shall generally be the actual price used for determining payment rates.
12. Non-exempt direct payments which are based on factors other than price shall be measured using budgetary outlays.
13. Other non-exempt measures, including input subsidies and other measures such as marketing-cost reduction measures: the value of such measures shall be measured using government budgetary outlays or, where the use of budgetary outlays does not reflect the full extent of the subsidy concerned, the basis for calculating the subsidy shall be the gap between the price of the subsidized good or service and a representative market price for a similar good or service multiplied by the quantity of the good or service.
ANNEX 4
DOMESTIC SUPPORT: CALCULATION OF EQUIVALENT MEASUREMENT OF SUPPORT
1. Subject to the provisions of Article 6, equivalent measurements of support shall be calculated in respect of all basic agricultural products where market price support as defined in Annex 3 exists but for which calculation of this component of the AMS is not practicable. For such products the base level for implementation of the domestic support reduction commitments shall consist of a market price support component expressed in terms of equivalent measurements of support under paragraph 2 below, as well as any non-exempt direct payments and other non-exempt support, which shall be evaluated as provided for under paragraph 3 below. Support at both national and sub-national level shall be included.
2. The equivalent measurements of support provided for in paragraph 1 shall be calculated on a product-specific subsidy basis for all basic agricultural products as close as practicable to the point of first sale receiving market price support and for which the calculation of the market price support component of the AMS is not practicable. For those basic agricultural products, equivalent measurements of market price support shall be made using the applied administered price and the quantity of production eligible to receive that price or, where this is not practicable, on budgetary outlays used to maintain the producer price.
3. Where basic agricultural products falling under paragraph 1 are the subject of non-exempt direct payments or any other product-specific not exempted from the reduction commitment, the basis for equivalent measurements of support concerning these measures shall be calculations as for the corresponding AMS components (specified in paragraphs 10 through 13 of Annex 3).
4. Equivalent measurements of support shall be calculated on the amount of subsidy as close as practicable to the point of first sale of the basic agricultural product concerned. Measures directed at agricultural processors shall be included to the extent that such measures benefit the producers of the basic agricultural products. Specific agricultural levies or fees paid by producers shall reduce the equivalent measurements of support by a corresponding amount.
ANNEX 5
SPECIAL TREATMENT WITH RESPECT TO PARAGRAPH 2 OF ARTICLE 4
Section A
1. The provisions of paragraph 2 of Article 4 shall not apply with effect from the entry into force of the WTO Agreement to any primary agricultural product and its worked and/or prepared products (‘designated products’) in respect of which the following conditions are complied with (hereinafter referred to as ‘special treatment’):
imports of the designated products comprised less than 3 per cent of corresponding domestic consumption in the base period 1986-1988 (‘the base period’);
no export subsidies have been provided since the beginning of the base period for the designated products;
effective production-restricting measures are applied to the primary agricultural product;
such products are designated with the symbol ‘ST-Annex 5’ in Section I-B of Part I of a Member's Schedule annexed to the Marrakesh Protocol, as being subject to special treatment reflecting factors of non-trade concerns, such as food security and environmental protection; and
minimum access opportunities in respect of the designated products correspond, as specified in Section I-B of Part I of the Schedule of the Member concerned to 4 per cent of base period domestic consumption of the designated products from the beginning of the first year of the implementation period and, thereafter, are increased by 0.8 per cent of corresponding domestic consumption in the base period per year for the remainder of the implementation period.
2. At the beginning of any year of the implementation period a Member may cease to apply special treatment in respect of the designated products by complying with the provisions of paragraph 6. In such a case, the Member concerned shall maintain the minimum access opportunities already in effect at such time and increase the minimum access opportunities by 0,4 per cent of corresponding domestic consumption in the base period per year for the remainder of the implementation period. Thereafter, the level of minimum access opportunities resulting from this formula in the final year of the implementation period shall be maintained in the Schedule of the Member concerned.
3. Any negotiation on the question of whether there can be a continuation of the special treatment as set out in paragraph 1 after the end of the implementation period shall be completed within the time-frame of the implementation period itself as a part of the negotiations set out in Article 20 of this Agreement, taking into account the factors of non-trade concerns.
4. If it is agreed as a result of the negotiation referred to in paragraph 3 that a Member may continue to apply the special treatment, such Member shall confer additional and acceptable concessions as determined in that negotiation.
5. Where the special treatment is not to be continued at the end of the implementation period, the Member concerned shall implement the provisions of paragraph 6. In such a case, after the end of the implementation period the minimum access opportunities for the designated products shall be maintained at the level of 8 per cent of corresponding domestic consumption in the base period in the Schedule of the Member concerned.
6. Border measures other than ordinary customs duties maintained in respect of the designated products shall become subject to the provisions of paragraph 2 of Article 4 with effect from the beginning of the year in which the special treatment ceases to apply. Such products shall be subject to ordinary customs duties, which shall be bound in the Schedule of the Member concerned and applied, from the beginning of the year in which special treatment ceases and thereafter, at such rates as would have been applicable had a reduction of at least 15 per cent been implemented over the implementation period in equal annual instalments. These duties shall be established on the basis of tariff equivalents to be calculated in accordance with the guidelines prescribed in the attachment hereto.
Section B
7. The provisions of paragraph 2 of Article 4 shall also not apply with effect from the entry into force of the WTO Agreement to a primary agricultural product that is the predominant staple in the traditional diet of a developing country Member and in respect of which the following conditions, in addition to those specified in paragraph l(a) through l(d), as they apply to the products concerned, are complied with:
minimum access opportunities in respect of the products concerned, as specified in Section I-B of Part I of the Schedule of the developing country Member concerned, correspond to 1 per cent of base period domestic consumption of the products concerned from the beginning of the first year of the implementation period and are increased in equal annual instalments to 2 per cent of corresponding domestic consumption in the base period at the beginning of the fifth year of the implementation period. From the beginning of the sixth year of the implementation period, minimum access opportunities in respect of the products concerned correspond to 2 per cent of corresponding domestic consumption in the base period and are increased in equal annual instalments to 4 per cent of corresponding domestic consumption in the base period until the beginning of the 10th year. Thereafter, the level of minimum access opportunities resulting from this formula in the 10th year shall be maintained in the Schedule of the developing country Member concerned;
appropriate market access opportunities have been provided for in other products under this Agreement.
8. Any negotiation on the question of whether there can be a continuation of the special treatment as set out in paragraph 7 after the end of the tenth year following the beginning of the implementation period shall be initiated and completed within the time-frame of the tenth year itself following the beginning of the implementation period.
9. If it is agreed as a result of the negotiation referred to in paragraph 8 that a Member may continue to apply the special treatment, such Member shall confer additional and acceptable concessions as determined in that negotiation.
10. In the event that special treatment under paragraph 7 is not to be continued beyond the tenth year following the beginning of the implementation period, the products concerned shall be subject to ordinary customs duties, established on the basis of a tariff equivalent to be calculated in accordance with the guidelines prescribed in the attachment hereto, which shall be bound in the Schedule of the Member concerned. In other respects, the provisions of paragraph 6 shall apply as modified by the relevant special and differential treatment accorded to developing country Members under this Agreement.
Attachment to Annex 5
Guidelines for the Calculation of Tariff Equivalents for the Specific Purpose Specified in paragraphs 6 and 10 of this Annex
1. The calculation of the tariff equivalents, whether expressed as ad valorem or specific rates, shall be made using the actual difference between internal and external prices in a transparent manner. Data used shall be for the years 1986 to 1988. Tariff equivalents:
shall primarily be established at the four-digit level of the HS;
shall be established at the six-digit or a more detailed level of the HS wherever appropriate;
shall generally be established for worked and/or prepared products by multiplying the specific tariff equivalent(s) for the primary agricultural product(s) by the proportion(s) in value terms or in physical terms as appropriate of the primary agricultural product(s) in the worked and/or prepared products, and take account, where necessary, of any additional elements currently providing protection to industry.
2. External prices shall be, in general, actual average c.i.f. unit values for the importing country. Where average c.i.f. unit values are not available or appropriate, external prices shall be either:
appropriate average c.i.f. unit values of a near country; or
estimated from average f.o.b. unit values of (an) appropriate major exporter(s) adjusted by adding an estimate of insurance, freight and other relevant costs to the importing country.
3. The external prices shall generally be converted to domestic currencies using the annual average market exchange rate for the same period as the price data.
4. The internal price shall generally be a representative wholesale price ruling in the domestic market or an estimate of that price where adequate data is not available.
5. The initial tariff equivalents may be adjusted, where necessary, to take account of differences in quality or variety using an appropriate coefficient.
6. Where a tariff equivalent resulting from these guidelines is negative or lower than the current bound rate, the initial tariff equivalent may be established at the current bound rate or on the basis of national offers for that product.
7. Where an adjustment is made to the level of a tariff equivalent which would have resulted from the above guidelines, the Member concerned shall afford, on request, full opportunities for consultation with a view to negotiating appropriate solutions.
AGREEMENT ON THE APPLICATION OF SANITARY AND PHYTOSANITARY MEASURES
MEMBERS,
Reaffirming that no Member should be prevented from adopting or enforcing measures necessary to protect human, animal or plant life or health, subject to the requirement that these measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between Members where the same conditions prevail or a disguised restriction on international trade;
Desiring to improve the human health, animal health and phytosanitary situation in all Members;
Noting that sanitary and phytosanitary measures are often applied on the basis of bilateral agreements or protocols;
Desiring the establishment of a multilateral framework of rules and disciplines to guide the development, adoption and enforcement of sanitary and phytosanitary measures in order to minimize their negative effects on trade;
Recognizing the important contribution that international standards, guidelines and recommendations can make in this regard;
Desiring to further the use of harmonized sanitary and phytosanitary measures between Members, on the basis of international standards, guidelines and recommendations developed by the relevant international organizations, including the Codex Alimentarius Commission, the International Office of Epizootics, and the relevant international and regional organizations operating within the framework of the International Plant Protection Convention, without requiring Members to change their appropriate level of protection of human, animal or plant life or health;
Recognizing that developing country Members may encounter special difficulties in complying with the sanitary or phytosanitary measures of importing Members, and as a consequence in access to markets, and also in the formulation and application of sanitary or phytosanitary measures in their own territories, and desiring to assist them in their endeavours in this regard;
Desiring therefore to elaborate rules for the application of the provisions of GATT 1994 which relate to the use of sanitary or phytosanitary measures, in particular the provisions of Article XX(b) ( 14 );
HEREBY AGREE AS FOLLOWS:
Article 1
General Provisions
Article 2
Basic Rights and Obligations
Article 3
Harmonization
Article 4
Equivalence
Article 5
Assessment of Risk and Determination of the Appropriate Level of Sanitary or Phytosanitary Protection
Article 6
Adaptation to Regional Conditions, Including Pest- or Disease-Free Areas and Areas of Low Pest or Disease Prevalence
Article 7
Transparency
Members shall notify changes in their sanitary or phytosanitary measures and shall provide information on their sanitary or phytosanitary measures in accordance with the provisions of Annex B.
Article 8
Control, Inspection and Approval Procedures
Members shall observe the provisions of Annex C in the operation of control, inspection and approval procedures, including national systems for approving the use of additives or for establishing tolerances for contaminants in foods, beverages or feedstuffs, and otherwise ensure that their procedures are not inconsistent with the provisions of this Agreement.
Article 9
Technical Assistance
Article 10
Special and Differential Treatment
Article 11
Consultations and Dispute Settlement
Article 12
Administration
Article 13
Implementation
Members are fully responsible under this Agreement for the observance of all obligations set forth herein. Members shall formulate and implement positive measures and mechanisms in support of the observance of the provisions of this Agreement by other than central government bodies. Members shall take such reasonable measures as may be available to them to ensure that non-governmental entities within their territories, as well as regional bodies in which relevant entities within their territories are members, comply with the relevant provisions of this Agreement. In addition, Members shall not take measures which have the effect of, directly or indirectly, requiring or encouraging such regional or non-governmental entities, or local governmental bodies, to act in a manner inconsistent with the provisions of this Agreement. Members shall ensure that they rely on the services of non-governmental entities for implementing sanitary or phytosanitary measures only if these entities comply with the provisions of this Agreement.
Article 14
Final Provisions
The least-developed country Members may delay application of the provisions of this Agreement for a period of five years following the date of entry into force of the WTO Agreement with respect to their sanitary or phytosanitary measures affecting importation or imported products. Other developing country Members may delay application of the provisions of this Agreement, other than paragraph 8 of Article 5 and Article 7, for two years following the date of entry into force of the WTO Agreement with respect to their existing sanitary or phytosanitary measures affecting importation or imported products, where such application is prevented by a lack of technical expertise, technical infrastructure or resources.
ANNEX A
DEFINITIONS ( 17 )
Sanitary or phytosanitary measure — Any measure applied:
to protect animal or plant life or health within the territory of the Member from risks arising from the entry, establishment or spread of pests, diseases, disease-carrying organisms or disease-causing organisms;
to protect human or animal life or health within the territory of the Member from risks arising from additives, contaminants, toxins or disease-causing organisms in foods, beverages or feedstuffs;
to protect human life or health within the territory of the Member from risks arising from diseases carried by animals, plants or products thereof, or from the entry, establishment or spread of pests; or
to prevent or limit other damage within the territory of the Member from the entry, establishment or spread of pests.
Sanitary or phytosanitary measures include all relevant laws, decrees, regulations, requirements and procedures including inter alia end product criteria; processes and production methods; testing, inspection, certification and approval procedures; quarantine treatments including relevant requirements associated with the transport of animals or plants, or with the materials necessary for their survival during transport; provisions on relevant statistical methods, sampling procedures and methods of risk assessment; and packaging and labelling requirements directly related to food safety.
Harmonization — The establishment, recognition and application of common sanitary and phytosanitary measures by different Members.
International standards, guidelines and recommendations
for food safety, the standards, guidelines and recommendations established by the Codex Alimentarius Commission relating to food additives, veterinary drug and pesticide residues, contaminants, methods of analysis and sampling, and codes and guidelines of hygienic practice;
for animal health and zoonoses, the standards, guidelines and recommendations developed under the auspices of the International Office of Epizootics;
for plant health, the international standards, guidelines and recommendations developed under the auspices of the Secretariat of the International Plant Protection Convention in cooperation with regional organizations operating within the framework of the International Plant Protection Convention; and
for matters not covered by the above organizations, appropriate standards, guidelines and recommendations promulgated by other relevant international organizations open for membership to all Members, as identified by the Committee.
Risk assessment — The evaluation of the likelihood of entry, establishment or spread of a pest or disease within the territory of an importing Member according to the sanitary or phytosanitary measures which might be applied, and of the associated potential biological and economic consequences; or the evaluation of the potential for adverse effects on human or animal health arising from the presence of additives, contaminants, toxins or disease-causing organisms in food, beverages or feedstuffs.
Appropriate level of sanitary or phytosanitary protection — The level of protection deemed appropriate by the Member establishing a sanitary or phytosanitary measure to protect human, animal or plant life or health within its territory.
NOTE: Many Members otherwise refer to this concept as the ‘acceptable level of risk’.
Pest- or disease-free area — An area, whether all of a country, part of a country, or all or parts of several countries, as identified by the competent authorities, in which a specific pest or disease does not occur.
NOTE: A pest- or disease-free area may surround, be surrounded by, or be adjacent to an area — whether within part of a country or in a geographic region which includes parts of or all of several countries — in which a specific pest or disease is known to occur but is subject to regional control measures such as the establishment of protection, surveillance and buffer zones which will confine or eradicate the pest or disease in question.
Area of low pest or disease prevalence — An area, whether all of a country, part of a country, or all or parts of several countries, as identified by the competent authorities, in which a specific pest or disease occurs at low levels and which is subject to effective surveillance, control or eradication measures.
ANNEX B
TRANSPARENCY OF SANITARY AND PHYTOSANITARY REGULATIONS
Publication of regulations
1. Members shall ensure that all sanitary and phytosanitary regulations ( 18 ) which have been adopted are published promptly in such a manner as to enable interested Members to become acquainted with them.
2. Except in urgent circumstances, Members shall allow a reasonable interval between the publication of a sanitary or phytosanitary regulation and its entry into force in order to allow time for producers in exporting Members, and particularly in developing country Members, to adapt their products and methods of production to the requirements of the importing Member.
Enquiry points
3. Each Member shall ensure that one enquiry point exists which is responsible for the provision of answers to all reasonable questions from interested Members as well as for the provision of relevant documents regarding:
any sanitary or phytosanitary regulations adopted or proposed within its territory;
any control and inspection procedures, production and quarantine treatment, pesticide tolerance and food additive approval procedures, which are operated within its territory;
risk assessment procedures, factors taken into consideration, as well as the determination of the appropriate level of sanitary or phytosanitary protection;
the membership and participation of the Member, or of relevant bodies within its territory, in international and regional sanitary and phytosanitary organizations and systems, as well as in bilateral and multilateral agreements and arrangements within the scope of this Agreement, and the texts of such agreements and arrangements.
4. Members shall ensure that where copies of documents are requested by interested Members, they are supplied at the same price (if any), apart from the cost of delivery, as to the nationals ( 19 ) of the Member concerned.
Notification procedures
5. Whenever an international standard, guideline or recommendation does not exist or the content of a proposed sanitary or phytosanitary regulation is not substantially the same as the content of an international standard, guideline or recommendation, and if the regulation may have a significant effect on trade of other Members, Members shall:
publish a notice at an early stage in such a manner as to enable interested Members to become acquainted with the proposal to introduce a particular regulation;
notify other Members, through the Secretariat, of the products to be covered by the regulation together with a brief indication of the objective and rationale of the proposed regulation. Such notifications shall take place at an early stage, when amendments can still be introduced and comments taken into account;
provide upon request to other Members copies of the proposed regulation and, whenever possible, identify the parts which in substance deviate from international standards, guidelines or recommendations;
without discrimination, allow reasonable time for other Members to make comments in writing, discuss these comments upon request, and take the comments and the results of the discussions into account.
6. However, where urgent problems of health protection arise or threaten to arise for a Member, that Member may omit such of the steps enumerated in paragraph 5 of this Annex as it finds necessary, provided that the Member:
immediately notifies other Members, through the Secretariat, of the particular regulation and the products covered, with a brief indication of the objective and the rationale of the regulation, including the nature of the urgent problem(s);
provides, upon request, copies of the regulation to other Members;
allows other Members to make comments in writing, discusses these comments upon request, and takes the comments and the results of the discussions into account.
7. Notifications to the Secretariat shall be in English, French or Spanish.
8. Developed country Members shall, if requested by other Members, provide copies of the documents or, in case of voluminous documents, summaries of the documents covered by a specific notification in English, French or Spanish.
9. The Secretariat shall promptly circulate copies of the notification to all Members and interested international organizations and draw the attention of developing country Members to any notifications relating to products of particular interest to them.
10. Members shall designate a single central government authority as responsible for the implementation, on the national level, of the provisions concerning notification procedures according to paragraph 5, 6, 7 and 8 of this Annex.
General reservations
11. Nothing in this Agreement shall be construed as requiring:
the provision of particulars or copies of drafts or the publication of texts other than in the language of the Member except as stated in paragraph 8 of this Annex; or
Members to disclose confidential information which would impede enforcement of sanitary or phytosanitary legislation or which would prejudice the legitimate commercial interests of particular enterprises.
ANNEX C
CONTROL, INSPECTION AND APPROVAL PROCEDURES ( 20 )
1. Members shall ensure, with respect to any procedure to check and ensure the fulfilment of sanitary or phytosanitary measures, that:
such procedures are undertaken and completed without undue delay and in no less favourable manner for imported products than for like domestic products;
the standard processing period of each procedure is published or that the anticipated processing period is communicated to the applicant upon request; when receiving an application, the competent body promptly examines the completeness of the documentation and informs the applicant in a precise and complete manner of all deficiencies; the competent body transmits as soon as possible the results of the procedure in a precise and complete manner to the applicant so that corrective action may be taken if necessary; even when the application has deficiencies, the competent body proceeds as far as practicable with the procedure if the applicant so requests; and that upon request, the applicant is informed of the stage of the procedure, with any delay being explained;
information requirements are limited to what is necessary for appropriate control, inspection and approval procedures, including for approval of the use of additives or for the establishment of tolerances for contaminants in food, beverages or feedstuffs;
the confidentiality of information about imported products arising from or supplied in connection with control, inspection and approval is respected in a way no less favourable than for domestic products and in such a manner that legitimate commercial interests are protected;
any requirements for control, inspection and approval of individual specimens of a product are limited to what is reasonable and necessary;
any fees imposed for the procedures on imported products are equitable in relation to any fees charged on like domestic products or products originating in any other Member and should be no higher than the actual cost of the service;
the same criteria should be used in the siting of facilities used in the procedures and the selection of samples of imported products as for domestic products so as to minimize the inconvenience to applicants, importers, exporters or their agents;
whenever specifications of a product are changed subsequent to its control and inspection in light of the applicable regulations, the procedure for the modified product is limited to what is necessary to determine whether adequate confidence exists that the product still meets the regulations concerned; and
a procedure exists to review complaints concerning the operation of such procedures and to take corrective action when a complaint is justified.
Where an importing Member operates a system for the approval of the use of food additives or for the establishment of tolerances for contaminants in food, beverages or feedstuffs which prohibits or restricts access to its domestic markets for products based on the absence of an approval, the importing Member shall consider the use of a relevant international standard as the basis for access until a final determination is made.
2. Where a sanitary or phytosanitary measure specifies control at the level of production, the Member in whose territory the production takes place shall provide the necessary assistance to facilitate such control and the work of the controlling authorities.
3. Nothing in this Agreement shall prevent Members from carrying out reasonable inspection within their own territories.
AGREEMENT ON TEXTILES AND CLOTHING
MEMBERS,
Recalling that Ministers agreed at Punta del Este that ‘negotiations in the area of textiles and clothing shall aim to formulate modalities that would permit the eventual integration of this sector into GATT on the basis of strengthened GATT rules and disciplines, thereby also contributing to the objective of further liberalization of trade’;
Recalling also that in the April 1989 Decision of the Trade Negotiations Committee it was agreed that the process of integration should commence following the conclusion of the Uruguay Round of Multilateral Trade Negotiations and should be progressive in character;
Recalling further that it was agreed that special treatment should be accorded to the least-developed country Members;
HEREBY AGREE AS FOLLOWS:
Article 1
Article 2
Full details of the actions to be taken pursuant to paragraph 6 shall be notified by the Members concerned according to the following:
Members maintaining restrictions falling under paragraph 1 undertake, notwithstanding the date of entry into force of the WTO Agreement, to notify such details to the GATT Secretariat not later than the date determined by the Ministerial Decision of 15 April 1994. The GATT Secretariat shall promptly circulate these notifications to the other participants for information. These notifications will be made available to the TMB, when established, for the purposes of paragraph 21;
Members which have, pursuant to paragraph 1 of Article 6, retained the right to use the provisions of Article 6, shall notify such details to the TMB not later than 60 days following the date of entry into force of the WTO Agreement, or, in the case of those Members covered by paragraph 3 of Article 1, not later than at the end of the twelfth month that the WTO Agreement is in effect. The TMB shall circulate these notifications to the other Members for information and review them as provided in paragraph 21.
The remaining products, i.e. the products not integrated into GATT 1994 under paragraph 6, shall be integrated, in terms of HS lines or categories, in three stages, as follows:
on the first day of the 37th month that the WTO Agreement is in effect, products which accounted for not less than 17 per cent of the total volume of the Member's 1990 imports of the products in the Annex. The products to be integrated by the Members shall encompass products from each of the following four groups: tops and yarns, fabrics, made-up textile products, and clothing;
on the first day of the 85th month that the WTO Agreement is in effect, products which accounted for not less than 18 per cent of the total volume of the Member's 1990 imports of the products in the Annex. The products to be integrated by the Members shall encompass products from each of the following four groups: tops and yarns, fabrics, made-up textile products, and clothing;
on the first day of the 121st month that the WTO Agreement is in effect, the textiles and clothing sector shall stand integrated into GATT 1994, all restrictions under this Agreement having been eliminated.
Except where the Council for Trade in Goods or the Dispute Settlement Body decides otherwise under paragraph 12 of Article 8, the level of each remaining restriction shall be increased annually during subsequent stages of this Agreement by not less than the following:
for Stage 2 (from the 37th to the 84th month that the WTO Agreement is in effect, inclusive), the growth rate for the respective restrictions during Stage 1, increased by 25 per cent;
for Stage 3 (from the 85th to the 120th month that the WTO Agreement is in effect, inclusive), the growth rate for the respective restrictions during Stage 2, increased by 27 per cent.
Article 3
Members maintaining restrictions falling under paragraph 1, except those justified under a GATT 1994 provision, shall either:
bring them into conformity with GATT 1994 within one year following the entry into force of the WTO Agreement, and notify this action to the TMB for its information; or
phase them out progressively according to a programme to be presented to the TMB by the Member maintaining the restrictions not later than six months after the date of entry into force of the WTO Agreement. This programme shall provide for all restrictions to be phased out within a period not exceeding the duration of this Agreement. The TMB may make recommendations to the Member concerned with respect to such a programme.
Article 4
Article 5
Article 6
In the application of the transitional safeguard, particular account shall be taken of the interests of exporting Members as set out below:
least-developed country Members shall be accorded treatment significantly more favourable than that provided to the other groups of Members referred to in this paragraph, preferably in all its elements but, at least, on overall terms;
Members whose total volume of textile and clothing exports is small in comparison with the total volume of exports of other Members and who account for only a small percentage of total imports of that product into the importing Member shall be accorded differential and more favourable treatment in the fixing of the economic terms provided in paragraphs 8, 13 and 14. For those suppliers, due account will be taken, pursuant to paragraphs 2 and 3 of Article 1, of the future possibilities for the development of their trade and the need to allow commercial quantities of imports from them;
with respect to wool products from wool-producing developing country Members whose economy and textiles and clothing trade are dependent on the wool sector, whose total textile and clothing exports consist almost exlusively of wool products, and whose volume of textiles and clothing trade is comparatively small in the markets of the importing Members, special consideration shall be given to the export needs of such Members when considering quota levels, growth rates and flexibility;
more favourable treatment shall be accorded to re-imports by a Member of textile and clothing products which that Member has exported to another Member for processing and subsequent re-importation, as defined by the laws and practices of the importing Member, and subject to satisfactory control and certification procedures, when these products are imported from a Member for which this type of trade represents a significant proportion of its total exports of textiles and clothing.
If a safeguard action is applied under this Article to a product for which a restraint was previously in place under the MFA during the 12-month period prior to the entry into force of the WTO Agreement, or pursuant to the provisions of Article 2 or 6, the level of the new restraint shall be the level provided for in paragraph 8 unless the new restraint comes into force within one year of:
the date of notification referred to in paragraph 15 of Article 2 for the elimination of the previous restraint; or
the date of removal of the previous restraint put in place pursuant to the provisions of this Article or of the MFA
in which case the level shall not be less than the higher of (i) the level of restraint for the last 12-month period during which the product was under restraint, or (ii) the level of restraint provided for in paragraph 8.
Article 7
As part of the integration process and with reference to the specific commitments undertaken by the Members as a result of the Uruguay Round, all Members shall take such actions as may be necessary to abide by GATT 1994 rules and disciplines so as to:
achieve improved access to markets for textile and clothing products through such measures as tariff reductions and bindings, reduction or elimination of non-tariff barriers, and facilitation of customs, administrative and licensing formalities;
ensure the application of policies relating to fair and equitable trading conditions as regards textiles and clothing in such areas as dumping and anti-dumping rules and procedures, subsidies and countervailing measures, and protection of intellectual property rights; and
avoid discrimination against imports in the textiles and clothing sector when taking measures for general trade policy reasons.
Such actions shall be without prejudice to the rights and obligations of Members under GATT 1994.
Article 8
Article 9
This Agreement and all restrictions thereunder shall stand terminated on the first day of the 121st month that the WTO Agreement is in effect, on which date the textiles and clothing sector shall be fully integrated into GATT 1994. There shall be no extension of this Agreement.
ANNEX
LIST OF PRODUCTS COVERED BY THIS AGREEMENT
1. This Annex lists textile and clothing products defined by Harmonized Commodity Description and Coding System (HS) codes at the six-digit level.
2. Actions under the safeguard provisions in Article 6 will be taken with respect to particular textile and clothing products and not on the basis of the HS lines per se.
3. Actions under the safeguard provisions in Article 6 of this Agreement shall not apply to:
developing country Members' exports of handloom fabrics of the cottage industry, or hand-made cottage industry products made of such handloom fabrics, or traditional folklore handicraft textile and clothing products, provided that such products are properly certified under arrangements established between the Members concerned;
historically traded textile products which were internationally traded in commercially significant quantities prior to 1982, such as bags, sacks, carpetbacking, cordage, luggage, mats, mattings and carpets typically made from fibres such as jute, coir, sisal, abaca, maguey and henequen;
products made of pure silk.
For such products, the provisions of Article XIX of GATT 1994, as interpreted by the Agreement on Safeguards, shall be applicable.
Products within Section XI (Textiles and Textile Articles) of the Harmonized Commodity Description and Coding System (HS) Nomenclature
HS No |
Product Description |
Ch. 50 |
Silk |
5004 00 |
Silk yarn (other than yarn spun from silk waste) not put up for retail sale |
5005 00 |
Yarn spun from silk waste, not put up for retail sale |
5006 00 |
Silk yarn and yarn spun from silk waste, put up f retail sale; silk-worm gut |
5007 10 |
Woven fabrics of noil silk |
5007 20 |
Woven fabrics of silk/silk waste, other than noil silk, 85 %/more of such fibres |
5007 90 |
Woven fabrics of silk, nes |
Ch. 51 |
Wool, fine/coarse animal hair, horsehair yarn and fabric |
5105 50 |
Carded wool |
5105 21 |
Combed wool in fragments |
5105 29 |
Wool tops and other combed wool, other than combed wool in fragments |
5105 30 |
Fine animal hair, carded or combed |
5106 10 |
Yarn of carded wool, >/= 85 % by weight of wool, nt put up for retail sale |
5106 20 |
Yarn of carded wool, < 85 % by weight of wool, not put up for retail sale |
5107 10 |
Yarn of combed wool, >/= 85 % by weight of wool, not put up for retail sale |
5107 20 |
Yarn of combed wool, < 85 % by weight of wool, not put up for retail sale |
5108 10 |
Yarn of carded fine animal hair, not put up for retail sale |
5108 20 |
Yarn of combed fine animal hair, not put up for retail sale |
5109 10 |
Yarn of wool/of fine animal hair, >/= 85 % by weight of such fibres, put up |
5109 90 |
Yarn of wool/of fine animal hair, < 85 % by weight of such fibres, put up |
5110 00 |
Yarn of coarse animal hair or of horsehair |
5111 11 |
Woven fabrics of carded wool/fine animal hair, >/= 85 % by weight, </= 300 g/m2 |
5111 19 |
Woven fabrics of carded wool/fine animal hair, >/= 85 % by weight, > 300 g/m2 |
5111 20 |
Woven fabric of carded wool/fine animal hair, >/= 85 % by wt, mixd w m-m fi |
5111 30 |
Woven fabric of carded wool/fine animal hair, >/= 85 % by wt, mixd w m-m fib |
5111 90 |
Woven fabrics of carded wool/fine animal hair, >/= 85 % by weight, nes |
5112 11 |
Woven fabric of combed wool/fine animal hair, >/= 85 % by weight, </= 200 g/m2 |
5112 19 |
Woven fabrics of combed wool/fine animal hair, >/= 85 % by weight, > 200 g/m2 |
5112 20 |
Woven fabrics of combed wool/fine animal hair, < 85 % by wt, mixd w m-m fil |
5112 30 |
Woven fabrics of combed wool/fine animal hair, < 85 % by wt, mixd w m-m fib |
5112 90 |
Woven fabrics of combed wool/fine animal hair, < 85 % by weight, nes |
5113 00 |
Woven fabrics of coarse animal hair or of horsehair |
Ch. 52 |
Cotton |
5204 11 |
Cotton sewing thread >/= 85 % by weight of cotton, not put up for retail sale |
5204 19 |
Cotton sewing thread, < 85 % by weight of cotton, not put up for retail sale |
5204 20 |
Cotton sewing thread, put up for retail sale |
5205 11 |
Cotton yarn, >/= 85 %, single, uncombed, >/= 714.29 dtex, nt put up |
5205 12 |
Cotton yarn, >/= 85 %, single, uncombed, 714.29 > dtex >/= 232.56, not put up |
5205 13 |
Cotton yarn, >/= 85 %, single, uncombed, 232.56 > dtex >/= 192.31, not put up |
5205 14 |
Cotton yarn, >/= 85 %, single, uncombed, 192.31 > dtex >/= 125, not put up |
5205 15 |
Cotton yarn, >/= 85 %, single, uncombed, < 125 dtex, nt put up f retail sale |
5205 21 |
Cotton yarn, >/= 85 %, single, combed, >/= 714.29, not put up |
5205 22 |
Cotton yarn, >/= 85 %, single, combed, 714.29 > dtex >/= 232.56, not put up |
5205 23 |
Cotton yarn, >/= 85 %, single, combed, 232.56 > dtex >/= 192.31, not put up |
5205 24 |
Cotton yarn, >/= 85 %, single, combed, 192.31 > dtex >/= 125, not put up |
5205 25 |
Cotton yarn, >/= 85 %, single, combed, < 125 dtex, not put up for retail sale |
5205 31 |
Cotton yarn, >/= 85 %, multi, uncombed, >/= 714.29 dtex, not put up, nes |
5205 32 |
Cotton yarn, >/= 85 %, multi, uncombed, 714.29 > dtex >/= 232.56, not put up, nes |
5205 33 |
Cotton yarn, >/= 85 %, multi, uncombed, 232.56 > dtex >/= 192.31, not put up, nes |
5205 34 |
Cotton yarn, >/= 85 %, multi, uncombed, 192.31 > dtex >/= 125, nt put up, nes |
5205 35 |
Cotton yarn, >/= 85 %, multi, uncombed, < 125 dtex, not put up, nes |
5205 41 |
Cotton yarn, >/= 85 %, multiple, combed, >/= 714.29 dtex, not put up, nes |
5205 42 |
Cotton yarn, >/= 85 %, multi, combed, 714.29 > dtex >/= 232.56, nt put up, nes |
5205 43 |
Cotton yarn, >/= 85 %, multi, combed, 232.56 > dtex >/= 192.31, nt put up, nes |
5205 44 |
Cotton yarn, >/= 85 %, multiple, combed, 192.31 > dtex >/= 125, not put up, nes |
5205 45 |
Cotton yarn, >/= 85 %, multiple, combed, < 125 dtex, not put up, nes |
5206 11 |
Cotton yarn, < 85 %, single, uncombed, >/= 714.29, not put up |
5206 12 |
Cotton yarn, < 85 %, single, uncombed, 714.29 > dtex >/= 232.56, nt put up |
5206 13 |
Cotton yarn, < 85 %, single, uncombed, 232.56 > dtex >/= 192.31, not put up |
5206 14 |
Cotton yarn, < 85 %, single, uncombed, 192.31 > dtex >/= 125, nt put up |
5206 15 |
Cotton yarn, < 85 %, single, uncombed, < 125 dtex, not put up for retail sale |
5206 21 |
Cotton yarn, < 85 %, single, combed, >/= 714.29 dtex, nt put up |
5206 22 |
Cotton yarn, < 85 %, single, combed, 714.29 > dtex >/= 232.56, not put up |
5206 23 |
Cotton yarn, < 85 %, single, combed, 232.56 > dtex >/= 192.31, not put up |
5206 24 |
Cotton yarn, < 85 %, single, combed, 192.31 > dtex >/= 125, not put up |
5206 25 |
Cotton yarn, < 85 %, single, combed, < 125 dtex, not put up for retail sale |
5206 31 |
Cotton yarn, < 85 %, multiple, uncombed, >/= 714.29, not put up, nes |
5206 32 |
Cotton yarn, < 85 %, multiple, uncombed, 714.29 > dtex >/= 232.56, nt put up, nes |
5206 33 |
Cotton yarn, < 85 %, multiple, uncombed, 232.56 > dex >/= 192.31, nt put up, nes |
5206 34 |
Cotton yarn, < 85 %, multiple, uncombed, 192.31 > dtex >/= 125, nt put up, nes |
5206 35 |
Cotton yarn, < 85 %, multiple, uncombed, < 125 dtex, not put up, nes |
5206 41 |
Cotton yarn, < 85 %, multiple, combed, >/= 714.29, nt put up, nes |
5206 42 |
Cotton yarn, < 85 %, multiple, combed, 714.29 > dtex >/= 232.56, nt put up, nes |
5206 43 |
Cotton yarn, < 85 %, multiple, combed, 232.56 > dtex >/= 192.31, nt put up, nes |
5206 44 |
Cotton yarn, < 85 %, multiple, combed, 192.31 > dtex >/= 125, nt put up, nes |
5206 45 |
Cotton yarn, < 85 %, multiple, combed, < 125 dtex, not put up, nes |
5207 10 |
Cotton yarn (other than sewing thread) >/= 85 % by weight of cotton, put up |
5207 90 |
Cotton yarn (other than sewing thread) < 85 % by wt of cotton, put up f retl sale |
5208 11 |
Plain weave cotton fabric, >/= 85 %, not more than 100 g/m2, unbleached |
5208 12 |
Plain weave cotton fabric, >/= 85 %, > 100 g/m2 to 200 g/m2, unbleached |
5208 13 |
Twill weave cotton fabric, >/= 85 %, not more than 200 g/m2, unbleached |
5208 19 |
Woven fabrics of cotton, >/= 85 %, not more than 200 g/m2, unbleached, nes |
5208 21 |
Plain weave cotton fabrics, >/= 85 %, not more than 100 g/m2, bleached |
5208 22 |
Plain weave cotton fabric, >/= 85 %, > 100 g/m2 to 200 g/m2, bleached |
5208 23 |
Twill weave cotton fabric, >/= 85 %, not more than 200 g/m2, bleached |
5208 29 |
Woven fabrics of cotton, >/= 85 %, nt more than 200 g/m2, bleached, nes |
5208 31 |
Plain weave cotton fabric, >/= 85 %, not more than 100 g/m2, dyed |
5208 32 |
Plain weave cotton fabric, >/= 85 %, > 100 g/m2 to 200 g/m2, dyed |
5208 33 |
Twill weave cotton fabrics, >/= 85 %, not more than 200 g/m2, dyed |
5208 39 |
Woven fabrics of cotton, >/= 85 %, not more than 200 g/m2, dyed, nes |
5208 41 |
Plain weave cotton fabric, >/= 85 %, not more than 100 g/m2, yarn dyed |
5208 42 |
Plain weave cotton fabrics, >/= 85 %, > 100 g/m2 to 200 g/m2, yarn dyed |
5208 43 |
Twill weave cotton fabric, >/= 85 %, not more than 200 g/m2, yarn dyed |
5208 49 |
Woven fabrics of cotton, >/= 85 %, nt more than 200 g/m2, yarn dyed, nes |
5208 51 |
Plain weave cotton fabrics, >/= 85 %, not more than 100 g/m2, printed |
5208 52 |
Plain weave cotton fabric, >/= 85 %, > 100 g/m2 to 200 g/m2, printed |
5208 53 |
Twill weave cotton fabric, >/= 85 %, not more than 200 g/m2, printed |
5208 59 |
Woven fabrics of cotton, >/= 85 %, not more than 200 g/m2, printed, nes |
5209 11 |
Plain weave cotton fabric, >/= 85 %, more than 200 g/m2, unbleached |
5209 12 |
Twill weave cotton fabric, >/= 85 %, more than 200 g/m2, unbleached |
5209 19 |
Woven fabrics of cotton, >/= 85 %, more than 200 g/m2, unbleached, nes |
5209 21 |
Plain weave cotton fabric, >/= 85 %, more than 200 g/m2, bleached |
5209 22 |
Twill weave cotton fabrics, >/= 85 %, more than 200 g/m2, bleached |
5209 29 |
Woven fabrics of cotton, >/= 85 %, more than 200 g/m2, bleached, nes |
5209 31 |
Plain weave cotton fabrics, >/= 85 %, more than 200 g/m2, dyed |
5209 32 |
Twill weave cotton fabrics, >/= 85 %, more than 200 g/m2, dyed |
5209 39 |
Woven fabrics of cotton, >/= 85 %, more than 200 g/m2, dyed, nes |
5209 41 |
Plain weave cotton fabrics, >/= 85 %, more than 200 g/m2, yarn dyed |
5209 42 |
Denim fabrics of cotton, >/= 85 %, more than 200 g/m2 |
5209 43 |
Twill weave cotton fab, other than denim, >/= 85 %, more than 200 g/m2, yarn dyed |
5209 49 |
Woven fabrics of cotton, >/= 85 %, more than 200 g/m2, yarn dyed, nes |
5209 51 |
Plain weave cotton fabrics, >/= 85 %, more than 200 g/m2, printed |
5209 52 |
Twill weave cotton fabrics, >/= 85 %, more than 200 g/m2, printed |
5209 59 |
Woven fabrics of cotton, >/= 85 %, more than 200 g/m2, printed, nes |
5210 11 |
Plain weave cotton fab, < 85 % mixd w m-m fib, not more than 200 g/m2, unbl |
5210 12 |
Twill weave cotton fab, < 85 % mixd w m-m fib, not more than 200 g/m2, unbl |
5210 19 |
Woven fab of cotton, < 85 % mixd with m-m fib, </= 200 g/m2, unbl, nes |
5210 21 |
Plain weave cotton fab, < 85 % mixd w m-m fib, not more than 200 g/m2, bl |
5210 22 |
Twill weave cotton fab, < 85 % mixd w m-m fib, not more than 200 g/m2, bl |
5210 29 |
Woven fabrics of cotton, < 85 % mixd with m-m fib, </= 200 g/m2, bl, nes |
5210 31 |
Plain weave cotton fab, < 85 % mixd w m-m fib, not more than 200 g/m2, dyd |
5210 32 |
Twill weave cotton fab, < 85 % mixd w m-m fib, not more than 200 g/m2, dyd |
5210 39 |
Woven fabrics of cotton, < 85 % mixd with m-m fib, </= 200 g/m2, dyed, nes |
5210 41 |
Plain weave cotton fab, < 85 % mixd w m-m fib, nt mor thn 200 g/m2, yarn dyd |
5210 42 |
Twill weave cotton fab, < 85 % mixd w m-m fib, nt mor thn 200 g/m2, yarn dyd |
5210 49 |
Woven fabrics of cotton, < 85 % mixed w m-m fib, </= 200 g/m2, yarn dyed, nes |
5210 51 |
Plain weave cotton fab, < 85 % mixd w m-m fib, nt more thn 200 g/m2, printd |
5210 52 |
Twill weave cotton fab, < 85 % mixd w m-m fab, nt more thn 200 g/m2, printd |
5210 59 |
Woven fabrics of cotton, < 85 % mixed with m-m fib, </= 200 g/m2, printed, nes |
5211 11 |
Plain weave cotton fab, < 85 % mixd w m-m fib, more thn 200 g/m2, unbleached |
5211 12 |
Twill weave cotton fab, < 85 % mixed with m-m fib, more than 200 g/m2, unbl |
5211 19 |
Woven fabrics of cotton, < 85 % mixd w m-m fib, more thn 200 g/m2, unbl, nes |
5211 21 |
Plain weave cotton fab, < 85 % mixd w m-m fib, more than 200 g/m2, bleachd |
5211 22 |
Twill weave cotton fab, < 85 % mixd w m-m fib, more than 200 g/m2, bleachd |
5211 29 |
Woven fabrics of cotton, < 85 % mixd w m-m fib, more than 200 g/m2, bl, nes |
5211 31 |
Plain weave cotton fab, < 85 % mixed with m-m fib, more than 200 g/m2, dyed |
5211 32 |
Twill weave cotton fab, < 85 % mixed with m-m fib, more than 200 g/m2, dyed |
5211 39 |
Woven fabrics of cotton, < 85 % mixd w m-m fib, more than 200 g/m2, dyd, nes |
5211 41 |
Plain weave cotton fab, < 85 % mixd w m-m fib, more than 200 g/m2, yarn dyd |
5211 42 |
Denim fabrics of cotton, < 85 % mixed with m-m fib, more than 200 g/m2 |
5211 43 |
Twill weave cotton fab, other than denim, < 85 % mixd w m-m fib, > 200 g/m2, yarn dyd |
5211 49 |
Woven fabrics of cotton, < 85 % mixd with m-m fib, > 200 g/m2, yarn dyed, nes |
5211 51 |
Plain weave cotton fab, < 85 % mixd w m-m fib, more than 200 g/m2, printd |
5211 52 |
Twill weave cotton fab, < 85 % mixd w m-m fib, more than 200 g/m2, printd |
5211 59 |
Woven fabrics of cotton, < 85 % mixd w m-m fib, mor thn 200 g/m2, printd, nes |
5212 11 |
Woven fabrics of cotton, weighing not more than 200 g/m2, unbleached, nes |
5212 12 |
Woven fabrics of cotton, weighing not more than 200 g/m2, bleached, nes |
5212 13 |
Woven fabrics of cotton, weighing not more than 200 g/m2, dyed, nes |
5212 14 |
Woven fabrics of cotton, </= 200 g/m2, of yarns of different colours, nes |
5212 15 |
Woven fabrics of cotton, weighing not more than 200 g/m2, printed, nes |
5212 21 |
Woven fabrics of cotton, weighing more than 200 g/m2, unbleached, nes |
5212 22 |
Woven fabrics of cotton, weighing more than 200 g/m2, bleached, nes |
5212 23 |
Woven fabrics of cotton, weighing more than 200 g/m2, dyed, nes |
5212 24 |
Woven fabrics of cotton, > 200 g/m2, of yarns of different colours, nes |
5212 25 |
Woven fabrics of cotton, weighing more than 200 g/m2, printed, nes |
Ch. 53 |
Other vegetable textile fibres; paper yarn and woven fab |
5306 10 |
Flax yarn, single |
5306 20 |
Flax yarn, multiple (folded) or cabled |
5307 10 |
Yarn of jute or of other textile bast fibres, single |
5307 20 |
Yarn of jute or of oth textile bast fibres, multiple (folded) or cabled |
5308 20 |
True hemp yarn |
5308 90 |
Yarn of other vegetable textile fibres |
5309 11 |
Woven fabrics, containing 85 % or more by weight of flax, unbleached or bl |
5309 19 |
Woven fabrics, containing 85 % or more by weight of flax, other than unbl or bl |
5309 21 |
Woven fabrics of flax, containg < 85 % by weight of flax, unbleached or bl |
5309 29 |
Woven fabrics of flax, containing < 85 % by weight of flax, other than unbl or bl |
5310 10 |
Woven fabrics of jute or of other textile bast fibres, unbleached |
5310 90 |
Woven fabrics of jute or of other textile bast fibres, other than unbleached |
5311 00 |
Woven fabrics of oth vegetable textile fibres; woven fab of paper yarn |
Ch. 54 |
Man-made filaments |
5401 10 |
Sewing thread of synthetic filaments |
5401 20 |
Sewing thread of artificial filaments |
5402 10 |
High tenacity yarn (other than sewg thread), nylon/oth polyamides fi, nt put up |
5402 20 |
High tenacity yarn (other than sewg thread), of polyester filaments, not put up |
5402 31 |
Texturd yarn nes, of nylon/oth polyamides fi, </= 50tex/s.y., not put up |
5402 32 |
Texturd yarn nes, of nylon/oth polyamides fi, > 50 tex/s.y., not put up |
5402 33 |
Textured yarn nes, of polyester filaments, not put up for retail sale |
5402 39 |
Textured yarn of synthetic filaments, nes, not put up |
5402 41 |
Yarn of nylon or other polyamides fi, single, untwisted, nes, not put up |
5402 42 |
Yarn of polyester filaments, partially oriented, single, nes, not put up |
5402 43 |
Yarn of polyester filaments, single, untwisted, nes, not put up |
5402 49 |
Yarn of synthetic filaments, single, untwisted, nes, not put up |
5402 51 |
Yarn of nylon or other polyamides fi, single, > 50 turns/m, not put up |
5402 52 |
Yarn of polyester filaments, single, > 50 turns per metre, not put up |
5402 59 |
Yarn of synthetic filaments, single, > 50 turns per metre, nes, not put up |
5402 61 |
Yarn of nylon or other polyamides fi, multiple, nes, not put up |
5402 62 |
Yarn of polyester filaments, multiple, nes, not put up |
5402 69 |
Yarn of synthetic filaments, multiple, nes, not put up |
5403 10 |
High tenacity yarn (other than sewg thread), of viscose rayon filamt, nt put up |
5403 20 |
Textured yarn nes, of artificial filaments, not put up for retail sale |
5403 31 |
Yarn of viscose rayon filaments, single, untwisted, nes, not put up |
5403 32 |
Yarn of viscose rayon filaments, single, > 120 turns per m, nes, nt put up |
5403 33 |
Yarn of cellulose acetate filaments, single, nes, not put up |
5403 39 |
Yarn of artificial filaments, single, nes, not put up |
5403 41 |
Yarn of viscose rayon filaments, multiple, nes, not put up |
5403 42 |
Yarn of cellulose acetate filaments, multiple, nes, not put up |
5403 49 |
Yarn of artificial filaments, multiple, nes, not put up |
5404 10 |
Synthetic mono, >/= 67 dtex, no cross sectional dimension exceeds 1 mm |
5404 90 |
Strip and the like of syn tex material of an apparent width nt exceedg 5 mm |
5405 00 |
Artificial mono, 67 dtex, cross-sect > 1 mm; strip of arti tex mat w </= 5 mm |
5406 10 |
Yarn of synthetic filament (other than sewing thread), put up for retail sale |
5406 20 |
Yarn of artificial filament (other than sewing thread), put up for retail sale |
5407 10 |
Woven fab of high tenacity fi yarns of nylon oth polyamides/polyesters |
5407 20 |
Woven fab obtaind from strip/the like of synthetic textile materials |
5407 30 |
Fabrics specif in Note 9 Section XI (layers of parallel syn tex yarn) |
5407 41 |
Woven fab, >/= 85 % of nylon/other polyamides filaments, unbl or bl, nes |
5407 42 |
Woven fabrics, >/= 85 % of nylon/other polyamides filaments, dyed, nes |
5407 43 |
Woven fab, >/= 85 % of nylon/other polyamides filaments, yarn dyed, nes |
5407 44 |
Woven fabrics, >/= 85 % of nylon/other polyamides filaments, printed, nes |
5407 51 |
Woven fabrics, >/= 85 % of textured polyester filaments, unbl or bl, nes |
5407 52 |
Woven fabrics, >/= 85 % of textured polyester filaments, dyed, nes |
5407 53 |
Woven fabrics, >/= 85 % of textured polyester filaments, yarn dyed, nes |
5407 54 |
Woven fabrics, >/= 85 % of textured polyester filaments, printed, nes |
5407 60 |
Woven fabrics, >/= 85 % of non-textured polyester filaments, nes |
5407 71 |
Woven fab, >/= 85 % of synthetic filaments, unbleached or bleached, nes |
5407 72 |
Woven fabrics, >/= 85 % of synthetic filaments, dyed, nes |
5407 73 |
Woven fabrics, >/= 85 % of synthetic filaments, yarn dyed, nes |
5407 74 |
Woven fabrics, >/= 85 % of synthetic filaments, printed, nes |
5407 81 |
Woven fabrics of synthetic filaments, < 85 % mixd w cotton, unbl o bl, nes |
5407 82 |
Woven fabrics of synthetic filaments, < 85 % mixed with cotton, dyed, nes |
5407 83 |
Woven fabrics of synthetic filaments, < 85 % mixd w cotton, yarn dyd, nes |
5407 84 |
Woven fabrics of synthetic filaments, < 85 % mixd with cotton, printed, nes |
5407 91 |
Woven fabrics of synthetic filaments, unbleached or bleached, nes |
5407 92 |
Woven fabrics of synthetic filaments, dyed, nes |
5407 93 |
Woven fabrics of synthetic filaments, yarn dyed, nes |
5407 94 |
Woven fabrics of synthetic filaments, printed, nes |
5408 10 |
Woven fabrics of high tenacity filament yarns of viscose rayon |
5408 21 |
Woven fab, >/= 85 % of artificial fi o strip of art tex mat, unbl/bl, nes |
5408 22 |
Woven fab, >/= 85 % of artificial fi or strip of art tex mat, dyed, nes |
5408 23 |
Woven fab, >/= 85 % of artificial fi or strip of art tex mat, y dyed, nes |
5408 24 |
Woven fab, >/= 85 % of artificial fi or strip of art tex mat, printd, nes |
5408 31 |
Woven fabrics of artificial filaments, unbleached or bleached, nes |
5408 32 |
Woven fabrics of artificial filaments, dyed, nes |
5408 33 |
Woven fabrics of artificial filaments, yarn dyed, nes |
5408 34 |
Woven fabrics of artificial filaments, printed, nes |
Ch. 55 |
Man-made staple fibres |
5501 10 |
Filament tow of nylon or other polyamides |
5501 20 |
Filament tow of polyesters |
5501 30 |
Filament tow of acrylic or modacrylic |
5501 90 |
Synthetic filament tow, nes |
5502 00 |
Artificial filament tow |
5503 10 |
Staple fibres of nylon or other polyamides, not carded or combed |
5503 20 |
Staple fibres of polyesters, not carded or combed |
5503 30 |
Staple fibres of acrylic or modacrylic, not carded or combed |
5503 40 |
Staple fibres of polypropylene, not carded or combed |
5503 90 |
Synthetic staple fibres, not carded or combed, nes |
5504 10 |
Staple fibres of viscose, not carded or combed |
5504 90 |
Artificial staple fibres, other than viscose, not carded or combed |
5505 10 |
Waste of synthetic fibres |
5505 20 |
Waste of artificial fibres |
5506 10 |
Staple fibres of nylon or other polyamides, carded or combed |
5506 20 |
Staple fibres of polyesters, carded or combed |
5506 30 |
Staple fibres of acrylic or modacrylic, carded or combed |
5506 90 |
Synthetic staple fibres, carded or combed, nes |
5507 00 |
Artificial staple fibres, carded or combed |
5508 10 |
Sewing thread of synthetic staple fibres |
5508 20 |
Sewing thread of artificial staple fibres |
5509 11 |
Yarn, >/= 85 % nylon or other polyamides staple fibres, single, not put up |
5509 12 |
Yarn, >/= 85 % nylon o oth polyamides staple fibres, multi, not put up, nes |
5509 21 |
Yarn, >/= 85 % of polyester staple fibres, single, not put up |
5509 22 |
Yarn, >/= 85 % of polyester staple fibres, multiple, not put up, nes |
5509 31 |
Yarn, >/= 85 % of acrylic or modacrylic staple fibres, single, not put up |
5509 32 |
Yarn, >/= 85 % acrylic/modacrylic staple fibres, multiple, not put up, nes |
5509 41 |
Yarn, >/= 85 % of other synthetic staple fibres, single, not put up |
5509 42 |
Yarn, >/= 85 % of other synthetic staple fibres, multiple, not put up, nes |
5509 51 |
Yarn of polyester staple fibres mixd w/arti staple fib, not put up, nes |
5509 52 |
Yarn of polyester staple fib mixd w wool/fine animal hair, nt put up, nes |
5509 53 |
Yarn of polyester staple fibres mixed with cotton, not put up, nes |
5509 59 |
Yarn of polyester staple fibres, not put up, nes |
5509 61 |
Yarn of acrylic staple fib mixd w wool/fine animal hair, not put up, nes |
5509 62 |
Yarn of acrylic staple fibres mixed with cotton, not put up, nes |
5509 69 |
Yarn of acrylic staple fibres, not put up, nes |
5509 91 |
Yarn of oth synthetic staple fibres mixed w/wool/fine animal hair, nes |
5509 92 |
Yarn of other synthetic staple fibres mixed with cotton, not put up, nes |
5509 99 |
Yarn of other synthetic staple fibres, not put up, nes |
5510 11 |
Yarn, >/= 85 % of artificial staple fibres, single, not put up |
5510 12 |
Yarn, >/= 85 % of artificial staple fibres, multiple, not put up, nes |
5510 20 |
Yarn of artificial staple fib mixd w wool/fine animal hair, not put up, nes |
5510 30 |
Yarn of artificial staple fibres mixed with cotton, not put up, nes |
5510 90 |
Yarn of artificial staple fibres, not put up, nes |
5511 10 |
Yarn, >/= 85 % of synthetic staple fibres, other than sewing thread, put up |
5511 20 |
Yarn, < 85 % of synthetic staple fibres, put up for retail sale, nes |
5511 30 |
Yarn of artificial fibres (other than sewing thread), put up for retail sale |
5512 11 |
Woven fabrics, containing >/= 85 % of polyester staple fibres, unbl or bl |
5512 19 |
Woven fabrics, containg >/= 85 % of polyester staple fibrs, other than unbl or bl |
5512 21 |
Woven fabrics, containg >/= 85 % of acrylic staple fibres, unbleached or bl |
5512 29 |
Woven fabrics, containing >/= 85 % of acrylic staple fibres, other than unbl or bl |
5512 91 |
Woven fabrics, containing >/= 85 % of oth synthetic staple fibres, unbl/bl |
5512 99 |
Woven fabrics, containg >/= 85 % of other synthetic staple fib, other than unbl/bl |
5513 11 |
Plain weave polyest stapl fib fab, < 85 %, mixd w/cottn, </= 170 g/m2, unbl/bl |
5513 12 |
Twill weave polyest stapl fib fab, < 85 %, mixd w/cottn, </= 170 g/m2, unbl/bl |
5513 13 |
Woven fab of polyest staple fib, < 85 % mixd w/cot, </= 170 g/m2, unbl/bl, nes |
5513 19 |
Woven fabrics of oth syn stapl fib, < 85 %, mixd w/cot, </= 170 g/m2, unbl/bl |
5513 21 |
Plain weave polyester staple fib fab, < 85 %, mixd w/cotton, </= 170 g/m2, dyd |
5513 22 |
Twill weave polyest staple fib fab, < 85 %, mixd w/cotton, </= 170 g/m2, dyd |
5513 23 |
Woven fab of polyester staple fib, < 85 %, mixd w/cot, </= 170 g/m2, dyd, nes |
5513 29 |
Woven fabrics of oth syn staple fib, < 85 % mixd w/cotton, </= 170 g/m2, dyed |
5513 31 |
Plain weave polyest stapl fib fab, < 85 % mixd w/cot, </= 170 g/m2, yarn dyd |
5513 32 |
Twill weave polyest stapl fib fab, < 85 % mixd w/cot, </= 170 g/m2, yarn dyd |
5513 33 |
Woven fab of polyest staple fib, < 85 % mixd w/cot, </= 170 g/m2, dyd nes |
5513 39 |
Woven fab of oth syn staple fib, < 85 % mixd w/cot, </= 170 g/m2, yarn dyd |
5513 41 |
Plain weave polyester stapl fib fab, < 85 %, mixd w/cot, </= 170 g/m2, printd |
5513 42 |
Twill weave polyest staple fib fab, < 85 %, mixd w/cot, </= 170 g/m2, printd |
5513 43 |
Woven fab of polyester staple fib, < 85 %, mixd w/cot, </= 170 g/m2, ptd, nes |
5513 49 |
Woven fab of oth syn staple fib, < 85 %, mixed w/cot, </= 170 g/m2, printed |
5514 11 |
Plain weave polyest staple fib fab, < 85 %, mixd w/cotton, > 170 g/m2, unbl/bl |
5514 12 |
Twill weave polyest stapl fib fab, < 85 %, mixd w/cotton, > 170 g/m2, unbl/bl |
5514 13 |
Woven fab of polyester staple fib, < 85 % mixd w/cot., > 170 g/m2, unbl/bl, nes |
5514 19 |
Woven fabrics of oth syn staple fib, < 85 %, mixed w/cot, > 170 g/m2, unbl/bl |
5514 21 |
Plain weave polyester staple fibre fab, < 85 %, mixd w/cotton, > 170 g/m2, dyd |
5514 22 |
Twill weave polyester staple fibre fab, < 85 %, mixd w/cotton, > 170 g/m2, dyd |
5514 23 |
Woven fabrics of polyester staple fib, < 85 %, mixed w/cot, > 170 g/m2, dyed |
5514 29 |
Woven fabrics of oth synthetic staple fib, < 85 %, mixd w/cot, > 170 g/m2, dyd |
5514 31 |
Plain weave polyester staple fib fab, < 85 % mixd w/cot, > 170 g/m2, yarn dyd |
5514 32 |
Twill weave polyester staple fib fab, < 85 % mixd w/cot, > 170 g/m2, yarn dyd |
5514 33 |
Woven fab of polyester stapl fib, < 85 % mixd w/cot, > 170 g/m2, yarn dyd nes |
5514 39 |
Woven fabrics of oth syn staple fib, < 85 % mixd w/cot, > 170 g/m2, yarn dyd |
5514 41 |
Plain weave polyester staple fibre fab, < 85 %, mixd w/cot, > 170 g/m2, printd |
5514 42 |
Twill weave polyester staple fibre fab, < 85 %, mixd w/cot, > 170 g/m2, printd |
5514 43 |
Woven fab of polyester staple fibres < 85 %, mixd w/cot, > 170 g/m2, ptd, nes |
5514 49 |
Woven fabrics of oth syn staple fib, < 85 %, mixed w/cot, > 170 g/m2, printed |
5515 11 |
Woven fab of polyester staple fib mixd w viscose rayon staple fib, nes |
5515 12 |
Woven fabrics of polyester staple fibres mixd w man-made filaments, nes |
5515 13 |
Woven fab of polyester staple fibres mixd w/wool/fine animal hair, nes |
5515 19 |
Woven fabrics of polyester staple fibres, nes |
5515 21 |
Woven fabrics of acrylic staple fibres, mixd w man-made filaments, nes |
5515 22 |
Woven fab of acrylic staple fibres, mixd w/wool/fine animal hair, nes |
5515 29 |
Woven fabrics of acrylic or modacrylic staple fibres, nes |
5515 91 |
Woven fabrics of oth syn staple fib, mixed with man-made filaments, nes |
5515 92 |
Woven fabrics of oth syn staple fib, mixd w/wool o fine animal hair, nes |
5515 99 |
Woven fabrics of synthetic staple fibres, nes |
5516 11 |
Woven fabrics, containg >/= 85 % of artificial staple fibres, unbleached/bl |
5516 12 |
Woven fabrics, containing >/= 85 % of artificial staple fibres, dyed |
5516 13 |
Woven fabrics, containing >/= 85 % of artificial staple fib, yarn dyed |
5516 14 |
Woven fabrics, containing >/= 85 % of artificial staple fibres, printed |
5516 21 |
Woven fabrics of artificial staple fib, < 85 %, mixd w man-made fi, unbl/bl |
5516 22 |
Woven fabrics of artificial staple fib, < 85 %, mixd with man-made fi, dyd |
5516 23 |
Woven fabrics of artificial staple fib, < 85 %, mixd with m-m fi, yarn dyd |
5516 24 |
Woven fabrics of artificial staple fib, < 85 %, mixd w man-made fi, printd |
5516 31 |
Woven fab of arti staple fib, < 85 % mixd w/wool/fine animal hair, unbl/bl |
5516 32 |
Woven fabrics of arti staple fib, < 85 % mixd w/wool/fine animal hair, dyd |
5516 33 |
Woven fab of arti staple fib, < 85 % mixd w/wool/fine animal hair, yarn dyd |
5516 34 |
Woven fab of arti staple fib, < 85 % mixd w/wool/fine animal hair, printd |
5516 41 |
Woven fabrics of artificial staple fib, < 85 % mixd with cotton, unbl o bl |
5516 42 |
Woven fabrics of artificial staple fib, < 85 % mixed with cotton, dyed |
5516 43 |
Woven fabrics of artificial staple fib, < 85 % mixd with cotton, yarn dyd |
5516 44 |
Woven fabrics of artificial staple fib, < 85 % mixed with cotton, printed |
5516 91 |
Woven fabrics of artificial staple fibres, unbleached or bleached, nes |
5516 92 |
Woven fabrics of artificial staple fibres, dyed, nes |
5516 93 |
Woven fabrics of artificial staple fibres, yarn dyed, nes |
5516 94 |
Woven fabrics of artificial staple fibres, printed, nes |
Ch. 56 |
Wadding, felt and non-woven; yarns; twine, cordage, etc. |
5601 10 |
Sanitary articles of waddg of textile mat i.e. sanitary towels, tampons |
5601 21 |
Wadding of cotton and articles thereof, other than sanitary articles |
5601 22 |
Wadding of man-made fibres and articles thereof, other than sanitary articles |
5601 29 |
Waddg of oth textile materials and articles thereof, other than sanitary articles |
5601 30 |
Textile flock and dust and mill neps |
5602 10 |
Needleloom felt and stitch-bonded fibre fabrics |
5602 21 |
Felt other than needleloom, of wool or fine animal hair, not impreg, ctd, cov etc |
5602 29 |
Felt other than needleloom, of other textile materials, not impreg, ctd, cov etc |
5602 90 |
Felt of textile materials, nes |
5603 00 |
Non-wovens, whether or not impregnated, coated, covered or laminated |
5604 10 |
Rubber thread and cord, textile covered |
5604 20 |
High tenacity yarn of polyest, nylon oth polyamid, viscose rayon, ctd etc |
5604 90 |
Textile yarn, strips and the like, impreg ctd/cov with rubber o plastics, nes |
5605 00 |
Metallisd yarn, beg textile yarn combind w metal thread, strip/powder |
5606 00 |
Gimped yarn nes; chenille yarn; loop wale-yarn |
5607 10 |
Twine, cordage, ropes and cables, of jute or other textile bast fibres |
5607 21 |
Binder of baler twine, of sisal o oth textile fibres of the genus Agave |
5607 29 |
Twine nes, cordage, ropes and cables, of sisal textile fibres |
5607 30 |
Twine, cordage, ropes and cables, of abaca or other hard (leaf) fibres |
5607 41 |
Binder or baler twine, of polyethylene or polypropylene |
5607 49 |
Twine nes, cordage, ropes and cables, of polyethylene or polypropylene |
5607 50 |
Twine, cordage, ropes and cables, of other synthetic fibres |
5607 90 |
Twine, cordage, ropes and cables, of other materials |
5608 11 |
Made up fishing nets, of man-made textile materials |
5608 19 |
Knottd nettg of twine/cordage/rope, and oth made up nets of m-m tex mat |
5608 90 |
Knottd nettg of twine/cordage/rope, nes, and made up nets of oth tex mat |
5609 00 |
Articles of yarn, strip, twine, cordage, rope and cables, nes |
Ch. 57 |
Carpets and other textile floor coverings |
5701 10 |
Carpets of wool or fine animal hair, knotted |
5701 90 |
Carpets of other textile materials, knotted |
5702 10 |
Kelem, Schumacks, Karamanie and similar textile hand-woven rugs |
5702 20 |
Floor coverings of coconut fibres (coir) |
5702 31 |
Carpets of wool/fine animl hair, of wovn pile constructn, nt made up nes |
5702 32 |
Carpets of man-made textile mat, of wovn pile construct, nt made up, nes |
5702 39 |
Carpets of oth textile mat, of woven pile constructn, nt made up, nes |
5702 41 |
Carpets of wool/fine animal hair, of wovn pile construction, made up, nes |
5702 42 |
Carpets of man-made textile mat, of woven pile construction, made up, nes |
5702 49 |
Carpets of oth textile materials, of wovn pile construction, made up, nes |
5702 51 |
Carpets of wool or fine animal hair, woven, not made up, nes |
5702 52 |
Carpets of man-made textile materials, woven, not made up, nes |
5702 59 |
Carpets of other textile materials, woven, not made up, nes |
5702 91 |
Carpets of wool or fine animal hair, woven, made up, nes |
5702 92 |
Carpets of man-made textile materials, woven, made up, nes |
5702 99 |
Carpets of other textile materials, woven, made up, nes |
5703 10 |
Carpets of wool or fine animal hair, tufted |
5703 20 |
Carpets of nylon or other polyamides, tufted |
5703 30 |
Carpets of other man-made textile materials, tufted |
5703 90 |
Carpets of other textile materials, tufted |
5704 10 |
Tiles of felt of textile materials, havg a max surface area of 0,3 m2 |
5704 90 |
Carpets of felt of textile materials, nes |
5705 00 |
Carpets and other textile floor coverings, nes |
Ch. 58 |
Special woven fab; tufted tex fab; lace; tapestries etc. |
5801 10 |
Woven pile fabrics of wool/fine animal hair, other than terry and narrow fabrics |
5801 21 |
Woven uncut weft pile fabrics of cotton, other than terry and narrow fabrics |
5801 22 |
Cut corduroy fabrics of cotton, other than narrow fabrics |
5801 23 |
Woven weft pile fabrics of cotton, nes |
5801 24 |
Woven warp pile fab of cotton, pingl (uncut), other than terry and narrow fab |
5801 25 |
Woven warp pile fabrics of cotton, cut, other than terry and narrow fabrics |
5801 26 |
Chenille fabrics of cotton, other than narrow fabrics |
5801 31 |
Woven uncut weft pile fabrics of man-made fibres, other than terry and narrow fab |
5801 32 |
Cut corduroy fabrics of man-made fibres, other than narrow fabrics |
5801 33 |
Woven weft pile fabrics of man-made fibres, nes |
5801 34 |
Woven warp pile fab of man-made fib, pingl (uncut), other than terry and nar fab |
5801 35 |
Woven warp pile fabrics of man-made fib, cut, other than terry and narrow fabrics |
5801 36 |
Chenille fabrics of man-made fibres, other than narrow fabrics |
5801 90 |
Woven pile fab and chenille fab of other tex mat, other than terry and narrow fabrics |
5802 11 |
Terry towellg and similar woven terry fab of cotton, other than narrow fab, unbl |
5802 19 |
Terry towellg and similar woven terry fab of cotton, other than unbl and other than nar fab |
5802 20 |
Terry towellg and sim woven terry fab of oth tex mat, other than narrow fabrics |
5802 30 |
Tufted textile fabrics, other than products of heading No 57.03 |
5803 10 |
Gauze of cotton, other than narrow fabrics |
5803 90 |
Gauze of other textile material, other than narrow fabrics |
5804 10 |
Tulles and other net fabrics, not incl woven, knitted or crocheted fabrics |
5804 21 |
Mechanically made lace of man-made fib, in the piece, in strips/motifs |
5804 29 |
Mechanically made lace of oth tex mat, in the piece, in strips/in motifs |
5804 30 |
Hand-made lace, in the piece, in strips or in motifs |
5805 00 |
Hand-woven tapestries and needle-worked tapestries, whether or not made up |
5806 10 |
Narrow woven pile fabrics and narrow chenille fabrics |
5806 20 |
Narrow woven fab, cntg by wt >/= 5 % elastomeric yarn/rubber thread nes |
5806 31 |
Narrow woven fabrics of cotton, nes |
5806 32 |
Narrow woven fabrics of man-made fibres, nes |
5806 39 |
Narrow woven fabrics of other textile materials, nes |
5806 40 |
Fabrics consisting of warp w/o weft assembled by means of an adhesive |
5807 10 |
Labels, badges and similar woven articles of textile materials |
5807 90 |
Labels, badges and similar articles, not woven, of textile materials, nes |
5808 10 |
Braids in the piece |
5808 90 |
Ornamental trimmings in the piece, other than knit; tassels, pompons and similar art |
5809 00 |
Woven fabrics of metal thread/of metallisd yarn, for apparel, etc, nes |
5810 10 |
Embroidery without visible ground, in the piece, in strips or in motifs |
5810 91 |
Embroidery of cotton, in the piece, in strips or in motifs, nes |
5810 92 |
Embroidery of man-made fibres, in the piece, in strips or in motifs, nes |
5810 99 |
Embroidery of oth textile materials, in the piece, in strips/motifs, nes |
5811 00 |
Quilted textile products in the piece |
Ch. 59 |
Impregnated, coated, cover/laminated textile fabric etc. |
5901 10 |
Textile fabrics coatd with gum, of a kind usd for outer covers of books |
5901 90 |
Tracg cloth; prepared paintg canvas; stiffened textile fab; for hats etc |
5902 10 |
Tire cord fabric made of nylon or other polyamides high tenacity yarns |
5902 20 |
Tire cord fabric made of polyester high tenacity yarns |
5902 90 |
Tire cord fabric made of viscose rayon high tenacity yarns |
5903 10 |
Textile fab impregnatd, ctd, cov, or laminatd w polyvinyl chloride, nes |
5903 20 |
Textile fabrics impregnated, ctd, cov, or laminated with polyurethane, nes |
5903 90 |
Textile fabrics impregnated, ctd, cov, or laminated with plastics, nes |
5904 10 |
Linoleum, whether or not cut to shape |
5904 91 |
Floor coverings, other than linoleum, with a base of needleloom felt/non-wovens |
5904 92 |
Floor coverings, other than linoleum, with other textile base |
5905 00 |
Textile wall coverings |
5906 10 |
Rubberised textile adhesive tape of a width not exceeding 20 cm |
5906 91 |
Rubberised textile knitted or crocheted fabrics, nes |
5906 99 |
Rubberised textile fabrics, nes |
5907 00 |
Textile fab impreg, ctd, cov nes; paintd canvas (e.g. theatrical scenery) |
5908 00 |
Textile wicks f lamps, stoves, etc; gas mantles and knittd gas mantle fabric |
5909 00 |
Textile hosepiping and similar textile tubing |
5910 00 |
Transmission or conveyor belts or belting of textile material |
5911 10 |
Textile fabrics usd f card clothing, and sim fabric f technical uses |
5911 20 |
Textile bolting cloth, whether or not made up |
5911 31 |
Textile fabrics used in paper-making or similar machines, < 650 g/m2 |
5911 32 |
Textile fabrics usd in paper-makg or similar mach, weighg >/= 650 g/m2 |
5911 40 |
Textile straing cloth usd in oil presses o the like, incl of human hair |
5911 90 |
Textile products and articles for technical uses, nes |
Ch. 60 |
Knitted or crocheted fabrics |
6001 10 |
Long pile knitted or crocheted textile fabrics |
6001 21 |
Looped pile knitted or crocheted fabrics, of cotton |
6001 22 |
Looped pile knitted or crocheted fabrics, of man-made fibres |
6001 29 |
Looped pile knitted or crocheted fabrics, of other textile materials |
6001 91 |
Pile knitted or crocheted fabrics, of cotton, nes |
6001 92 |
Pile knitted or crocheted fabrics, of man-made fibres, nes |
6001 99 |
Pile knitted or crocheted fabrics, of other textile materials, nes |
6002 10 |
Knittd or crocheted tex fab, w </= 30 cm, >/= 5 % of elastomeric/rubber, nes |
6002 20 |
Knitted or crochetd textile fabrics, of a width not exceedg 30 cm, nes |
6002 30 |
Knittd/chrochetd tex fab, width > 30 cm, >/= 5 % of elastomeric/rubber, nes |
6002 41 |
Warp knitted fabrics, of wool or fine animal hair, nes |
6002 42 |
Warp knitted fabrics, of cotton, nes |
6002 43 |
Warp knitted fabrics, of man-made fibres, nes |
6002 49 |
Warp knitted fabrics, of other materials, nes |
6002 91 |
Knitted or crocheted fabrics, of wool or of fine animal hair, nes |
6002 92 |
Knitted or crocheted fabrics, of cotton, nes |
6002 93 |
Knitted or crocheted fabrics, of man-made fibres, nes |
6002 99 |
Knitted or crocheted fabrics, of other materials, nes |
Ch. 61 |
Art of apparel and clothing access, knitted or crocheted |
6101 10 |
Mens/boys overcoats, anoraks etc, of wool or fine animal hair, knitted |
6101 20 |
Mens/boys overcoats, anoraks etc, of cotton, knitted |
6101 30 |
Mens/boys overcoats, anoraks etc, of man-made fibres, knitted |
6101 90 |
Mens/boys overcoats, anoraks etc, of other textile materials, knitted |
6102 10 |
Womens/girls overcoats, anoraks etc, of wool or fine animal hair, knitted |
6102 20 |
Womens/girls overcoats, anoraks etc, of cotton, knitted |
6102 30 |
Womens/girls overcoats, anoraks etc, of man-made fibres, knitted |
6102 90 |
Womens/girls overcoats, anoraks etc, of other textile materials, knitted |
6103 11 |
Mens/boys suits, of wool or fine animal hair, knitted |
6103 12 |
Mens/boys suits, of synthetic fibres, knitted |
6103 19 |
Mens/boys suits, of other textile materials, knitted |
6103 21 |
Mens/boys ensembles, of wool or fine animal hair, knitted |
6103 22 |
Mens/boys ensembles, of cotton, knitted |
6103 23 |
Mens/boys ensembles, of synthetic fibres, knitted |
6103 29 |
Mens/boys ensembles, of other textile materials, knitted |
6103 31 |
Mens/boys jackets and blazers, of wool or fine animal hair, knitted |
6103 32 |
Mens/boys jackets and blazers, of cotton, knitted |
6103 33 |
Mens/boys jackets and blazers, of synthetic fibres, knitted |
6103 39 |
Mens/boys jackets and blazers, of other textile materials, knitted |
6103 41 |
Mens/boys trousers and shorts, of wool or fine animal hair, knitted |
6103 42 |
Mens/boys trousers and shorts, of cotton, knitted |
6103 43 |
Mens/boys trousers and shorts, of synthetic fibres, knitted |
6103 49 |
Mens/boys trousers and shorts, of other textile materials, knitted |
6104 11 |
Womens/girls suits, of wool or fine animal hair, knitted |
6104 12 |
Womens/girls suits, of cotton, knitted |
6104 13 |
Womens/girls suits, of synthetic fibres, knitted |
6104 19 |
Womens/girls suits, of other textile materials, knitted |
6104 21 |
Womens/girls ensembles, of wool or fine animal hair, knitted |
6104 22 |
Womens/girls ensembles, of cotton, knitted |
6104 23 |
Womens/girls ensembles, of synthetic fibres, knitted |
6104 29 |
Womens/girls ensembles, of other textile materials, knitted |
6104 31 |
Womens/girls jackets, of wool or fine animal hair, knitted |
6104 32 |
Womens/girls jackets, of cotton, knitted |
6104 33 |
Womens/girls jackets, of synthetic fibres, knitted |
6104 39 |
Womens/girls jackets, of other textile materials, knitted |
6104 41 |
Womens/girls dresses, of wool or fine animal hair, knitted |
6104 42 |
Womens/girls dresses, of cotton, knitted |
6104 43 |
Womens/girls dresses, of synthetic fibres, knitted |
6104 44 |
Womens/girls dresses, of artificial fibres, knitted |
6104 49 |
Womens/girls dresses, of other textile materials, knitted |
6104 51 |
Womens/girls skirts, of wool or fine animal hair, knitted |
6104 52 |
Womens/girls skirts, of cotton, knitted |
6104 53 |
Womens/girls skirts, of synthetic fibres, knitted |
6104 59 |
Womens/girls skirts, of other textile materials, knitted |
6104 61 |
Womens/girls trousers and shorts, of wool or fine animal hair, knitted |
6104 62 |
Womens/girls trousers and shorts, of cotton, knitted |
6104 63 |
Womens/girls trousers and shorts, of synthetic fibres, knitted |
6104 69 |
Womens/girls trousers and shorts, of other textile materials, knitted |
6105 10 |
Mens/boys shirts, of cotton, knitted |
6105 20 |
Mens/boys shirts, of man-made fibres, knitted |
6105 90 |
Mens/boys shirts, of other textile materials, knitted |
6106 10 |
Womens/girls blouses and shirts, of cotton, knitted |
6106 20 |
Womens/girls blouses and shirts, of man-made fibres, knitted |
6106 90 |
Womens/girls blouses and shirts, of other materials, knitted |
6107 11 |
Mens/boys underpants and briefs, of cotton, knitted |
6107 12 |
Mens/boys underpants and briefs, of man-made fibres, knitted |
6107 19 |
Mens/boys underpants and briefs, of other textile materials, knitted |
6107 21 |
Mens/boys nightshirts and pyjamas, of cotton, knitted |
6107 22 |
Mens/boys nightshirts and pyjamas, of man-made fibres, knitted |
6107 29 |
Mens/boys nightshirts and pyjamas, of other textile materials, knitted |
6107 91 |
Mens/boys bathrobes, dressing gowns etc of cotton, knitted |
6107 92 |
Mens/boys bathrobes, dressing gowns, etc of man-made fibres, knitted |
6107 99 |
Mens/boys bathrobes, dressg gowns, etc of oth textile materials, knitted |
6108 11 |
Womens/girls slips and petticoats, of man-made fibres, knitted |
6108 19 |
Womens/girls slips and petticoats, of other textile materials, knitted |
6108 21 |
Womens/girls briefs and panties, of cotton, knitted |
6108 22 |
Womens/girls briefs and panties, of man-made fibres, knitted |
6108 29 |
Womens/girls briefs and panties, of other textile materials, knitted |
6108 31 |
Womens/girls nightdresses and pyjamas, of cotton, knitted |
6108 32 |
Womens/girls nightdresses and pyjamas, of man-made fibres, knitted |
6108 39 |
Womens/girls nightdresses and pyjamas, of other textile materials, knitted |
6108 91 |
Womens/girls bathrobes, dressing gowns, etc, of cotton, knitted |
6108 92 |
Womens/girls bathrobes, dressing gowns, etc, of man-made fibres, knitted |
6108 99 |
Womens/girls bathrobes, dressg gowns, etc, of oth textile materials, knittd |
6109 10 |
T-shirts, singlets and other vests, of cotton, knitted |
6109 90 |
T-shirts, singlets and other vests, of other textile materials, knitted |
6110 10 |
Pullovers, cardigans and similar articles of wool or fine animal hair, knittd |
6110 20 |
Pullovers, cardigans and similar articles of cotton, knitted |
6110 30 |
Pullovers, cardigans and similar articles of man-made fibres, knitted |
6110 90 |
Pullovers, cardigans and similar articles of oth textile materials, knittd |
6111 10 |
Babies garments and clothg accessories of wool or fine animal hair, knitted |
6111 20 |
Babies garments and clothing accessories of cotton, knitted |
6111 30 |
Babies garments and clothing accessories of synthetic fibres, knitted |
6111 90 |
Babies garments and clothg accessories of other textile materials, knitted |
6112 11 |
Track suits, of cotton, knitted |
6112 12 |
Track suits, of synthetic fibres, knitted |
6112 19 |
Track suits, of other textile materials, knitted |
6112 20 |
Ski suits, of textile materials, knitted |
6112 31 |
Mens/boys swimwear, of synthetic fibres, knitted |
6112 39 |
Mens/boys swimwear, of other textile materials, knitted |
6112 41 |
Womens/girls swimwear, of synthetic fibres, knitted |
6112 49 |
Womens/girls swimwear, of other textile materials, knitted |
6113 00 |
Garments made up of impreg, coatd, coverd or laminatd textile knittd fab |
6114 10 |
Garments nes, of wool or fine animal hair, knitted |
6114 20 |
Garments nes, of cotton, knitted |
6114 30 |
Garments nes, of man-made fibres, knitted |
6114 90 |
Garments nes, of other textile materials, knitted |
6115 11 |
Panty hose and tights, of synthetic fibre yarns < 67 dtex/single yarn knittd |
6115 12 |
Panty hose and tights, of synthetic fib yarns >/= 67 dtex/single yarn knittd |
6115 19 |
Panty hose and tights, of other textile materials, knitted |
6115 20 |
Women full-l/knee-1 hosiery, of textile yarn < 67 dtex/single yarn knittd |
6115 91 |
Hosiery nes, of wool or fine animal hair, knitted |
6115 92 |
Hosiery nes, of cotton, knitted |
6115 93 |
Hosiery nes, of synthetics fibres, knitted |
6115 99 |
Hosiery nes, of other textile materials, knitted |
6116 10 |
Gloves impregnated, coated or covered with plastics or rubber, knitted |
6116 91 |
Gloves, mittens and mitts, nes, of wool or fine animal hair, knitted |
6116 92 |
Gloves, mittens and mitts, nes, of cotton, knitted |
6116 93 |
Gloves, mittens and mitts, nes, of synthetic fibres, knitted |
6116 99 |
Gloves, mittens and mitts, nes, of other textile materials, knitted |
6117 10 |
Shawls, scarves, veils and the like, of textile materials, knitted |
611720 |
Ties, bow ties and cravats, of textile materials, knitted |
6117 80 |
Clothing accessories nes, of textile materials, knitted |
6117 90 |
Parts of garments/of clothg accessories, of textile materials, knittd |
Ch. 62 |
Art of apparel and clothing access, not knitted/crocheted |
6201 11 |
Mens/boys overcoats and similar articles of wool/fine animal hair, not knit |
6201 12 |
Mens/boys overcoats and similar articles of cotton, not knitted |
6201 13 |
Mens/boys overcoats and similar articles of man-made fibres, not knitted |
6201 19 |
Mens/boys overcoats and sim articles of oth textile materials, not knittd |
6201 91 |
Mens/boys anoraks and similar articles, of wool/fine animal hair, not knittd |
6201 92 |
Mens/boys anoraks and similar articles, of cotton, not knitted |
6201 93 |
Mens/boys anoraks and similar articles, of man-made fibres, not knitted |
6201 99 |
Mens/boys anoraks and similar articles, of oth textile materials, not knittd |
6202 11 |
Womens/girls overcoats and sim articles of wool/fine animal hair nt knit |
6202 12 |
Womens/girls overcoats and similar articles of cotton, not knitted |
6202 13 |
Womens/girls overcoats and sim articles of man-made fibres, not knittd |
6202 19 |
Womens/girls overcoats and similar articles of other textile mat, not knit |
6202 91 |
Womens/girls anoraks and similar articles of wool/fine animal hair, not knit |
6202 92 |
Womens/girls anoraks and similar articles of cotton, not knitted |
6202 93 |
Womens/girls anoraks and similar articles of man-made fibres, not knitted |
6202 99 |
Womens/girls anoraks and similar articles of oth textile materials, not knit |
6203 11 |
Mens/boys suits, of wool or fine animal hair, not knitted |
6203 12 |
Mens/boys suits, of synthetic fibres, not knitted |
6203 19 |
Mens/boys suits, of other textile materials, not knitted |
6203 21 |
Mens/boys ensembles, of wool or fine animal hair, not knitted |
6203 22 |
Mens/boys ensembles, of cotton, not knitted |
6203 23 |
Mens/boys ensembles, of synthetic fibres, not knitted |
6203 29 |
Mens/boys ensembles, of other textile materials, not knitted |
6203 31 |
Mens/boys jackets and blazers, of wool or fine animal hair, not knitted |
6203 32 |
Mens/boys jackets and blazers, of cotton, not knitted |
6203 33 |
Mens/boys jackets and blazers, of synthetic fibres, not knitted |
6203 39 |
Mens/boys jackets and blazers, of other textile materials, not knitted |
6203 41 |
Mens/boys trousers and shorts, of wool or fine animal hair, not knitted |
6203 42 |
Mens/boys trousers and shorts, of cotton, not knitted |
6203 43 |
Mens/boys trousers and shorts, of synthetic fibres, not knitted |
6203 49 |
Mens/boys trousers and shorts, of other textile materials, not knitted |
6204 11 |
Womens/girls suits, of wool or fine animal hair, not knitted |
6204 12 |
Womens/girls suits, of cotton, not knitted |
6204 13 |
Womens/girls suits, of synthetic fibres, not knitted |
6204 19 |
Womens/girls suits, of other textile materials, not knitted |
6204 21 |
Womens/girls ensembles, of wool or fine animal hair, not knitted |
6204 22 |
Womens/girls ensembles, of cotton, not knitted |
6204 23 |
Womens/girls ensembles, of synthetic fibres, not knitted |
6204 29 |
Womens/girls ensembles, of other textile materials, not knitted |
6204 31 |
Womens/girls jackets, of wool or fine animal hair, not knitted |
6204 32 |
Womens/girls jackets, of cotton, not knitted |
6204 33 |
Womens/girls jackets, of synthetic fibres, not knitted |
6204 39 |
Womens/girls jackets, of other textile materials, not knitted |
6204 41 |
Womens/girls dresses, of wool or fine animal hair, not knitted |
6204 42 |
Womens/girls dresses, of cotton, not knitted |
6204 43 |
Womens/girls dresses, of synthetic fibres, not knitted |
6204 44 |
Womens/girls dresses, of artificial fibres, not knitted |
6204 49 |
Womens/girls dresses, of other textile materials, not knitted |
6204 51 |
Womens/girls skirts, of wool or fine animal hair, not knitted |
6204 52 |
Womens/girls skirts, of cotton, not knitted |
6204 53 |
Womens/girls skirts, of synthetic fibres, not knitted |
6204 59 |
Womens/girls skirts, of other textile materials, not knitted |
6204 61 |
Womens/girls trousers and shorts, of wool or fine animal hair, not knitted |
6204 62 |
Womens/girls trousers and shorts, of cotton, not knitted |
6204 63 |
Womens/girls trousers and shorts, of synthetic fibres, not knitted |
6204 69 |
Womens/girls trousers and shorts, of other textile materials, not knitted |
6205 10 |
Mens/boys shirts, of wool or fine animal hair, not knitted |
6205 20 |
Mens/boys shirts, of cotton, not knitted |
6205 30 |
Mens/boys shirts, of man-made fibres, not knitted |
6205 90 |
Mens/boys shirts, of other textile materials, not knitted |
6206 10 |
Womens/girls blouses and shirts, of silk or silk waste, not knitted |
6206 20 |
Womens/girls blouses and shirts, of wool or fine animal hair, not knitted |
6206 30 |
Womens/girls blouses and shirts, of cotton, not knitted |
6206 40 |
Womens/girls blouses and shirts, of man-made fibres, not knitted |
6206 90 |
Womens/girls blouses and shirts, of other textile materials, not knitted |
6207 11 |
Mens/boys underpants and briefs, of cotton, not knitted |
6207 19 |
Mens/boys underpants and briefs, of other textile materials, not knitted |
6207 21 |
Mens/boys nightshirts and pyjamas, of cotton, not knitted |
6207 22 |
Mens/boys nightshirts and pyjamas, of man-made fibres, not knitted |
6207 29 |
Mens/boys nightshirts and pyjamas, of other textile materials, not knitted |
6207 91 |
Mens/boys bathrobes, dressing gowns, etc of cotton, not knitted |
6207 92 |
Mens/boys bathrobes, dressing gowns, etc of man-made fibres, not knitted |
6207 99 |
Mens/boys bathrobes, dressg gowns, etc of oth textile materials, not knit |
6208 11 |
Womens/girls slips and petticoats, of man-made fibres, not knitted |
6208 19 |
Womens/girls slips and petticoats, of other textile materials, not knitted |
6208 21 |
Womens/girls nightdresses and pyjamas, of cotton, not knitted |
6208 22 |
Womens/girls nightdresses and pyjamas, of man-made fibres, not knitted |
6208 29 |
Womens/girls nightdresses and pyjamas, of oth textile materials, not knitted |
6208 91 |
Womens/girls panties, bathrobes, etc, of cotton, not knitted |
6208 92 |
Womens/girls panties, bathrobes, etc, of man-made fibres, not knitted |
6208 99 |
Womens/girls panties, bathrobes, etc, of oth textile materials, not knittd |
6209 10 |
Babies garments and clothg accessories of wool o fine animal hair, not knit |
6209 20 |
Babies garments and clothing accessories of cotton, not knitted |
6209 30 |
Babies garments and clothing accessories of synthetic fibres, not knitted |
6209 90 |
Babies garments and clothg accessories of oth textile materials, not knittd |
6210 10 |
Garments made up of textile felts and of non-woven textile fabrics |
6210 20 |
Mens/boys overcoats and similar articles of impreg, ctd, cov etc, tex wov fab |
6210 30 |
Womens/girls overcoats and sim articles, of impreg, ctd, etc, tex wov fab |
6210 40 |
Mens/boys garments nes, made up of impreg, ctd, cov, etc, textile woven fab |
6210 50 |
Womens/girls garments nes, of impregnatd, ctd, cov, etc, textile woven fab |
6211 11 |
Mens/boys swimwear, of textile materials not knitted |
6211 12 |
Womens/girls swimwear, of textile materials, not knitted |
6211 20 |
Ski suits, of textile materials, not knitted |
6211 31 |
Mens/boys garments nes, of wool or fine animal hair, not knitted |
6211 32 |
Mens/boys garments nes, of cotton, not knitted |
6211 33 |
Mens/boys garments nes, of man-made fibres, not knitted |
6211 39 |
Mens/boys garments nes, of other textile materials, not knitted |
6211 41 |
Womens/girls garments nes, of wool or fine animal hair, not knitted |
6211 42 |
Womens/girls garments nes, of cotton, not knitted |
6211 43 |
Womens/girls garments nes, of man-made fibres, not knitted |
6211 49 |
Womens/girls garments nes, of other textile materials, not knitted |
6212 10 |
Brassieres and parts thereof, of textile materials |
6212 20 |
Girdles, panty girdles and parts thereof, of textile materials |
6212 30 |
Corselettes and parts thereof, of textile materials |
6212 90 |
Corsets, braces and similar articles and parts thereof, of textile materials |
6213 10 |
Handkerchiefs, of silk or silk waste, not knitted |
6213 20 |
Handkerchiefs, of cotton, not knitted |
6213 90 |
Handkerchiefs, of other textile materials, not knitted |
6214 10 |
Shawls, scarves, veils and the like, of silk or silk waste, not knitted |
6214 20 |
Shawls, scarves, veils and the like, of wool or fine animal hair, not knitted |
6214 30 |
Shawls, scarves, veils and the like, of synthetic fibres, not knitted |
6214 40 |
Shawls, scarves, veils and the like, of artificial fibres, not knitted |
6214 90 |
Shawls, scarves, veils and the like, of other textile materials, not knitted |
6215 10 |
Ties, bow ties and cravats, of silk or silk waste, not knitted |
6215 20 |
Ties, bow ties and cravats, of man-made fibres, not knitted |
6215 90 |
Ties, bow ties and cravats, of other textile materials, not knitted |
6216 00 |
Gloves, mittens and mitts, of textile materials, not knitted |
6217 10 |
Clothing accessories nes, of textile materials, not knitted |
6217 90 |
Parts of garments or of clothg accessories nes, of tex mat, not knittd. |
Ch. 63 |
Other made-up textile articles; sets; worn clothing etc. |
6301 10 |
Electric blankets, of textile materials |
6301 20 |
Blankets (other than electric) and travelling rugs, of wool or fine animal hair |
6301 30 |
Blankets (other than electric) and travelling rugs, of cotton |
6301 40 |
Blankets (other than electric) and travelling rugs, of synthetic fibres |
6301 90 |
Blankets (other than electric) and travelling rugs, of other textile materials |
6302 10 |
Bed linen, of textile knitted or crocheted materials |
6302 21 |
Bed linen, of cotton, printed not knitted |
6302 22 |
Bed linen, of man-made fibres, printed, not knitted |
6302 29 |
Bed linen, of other textile materials, printed, not knitted |
6302 31 |
Bed linen, of cotton, nes |
6302 32 |
Bed linen, of man-made fibres, nes |
6302 39 |
Bed linen, of other textile materials, nes |
6302 40 |
Table linen, of textile knitted or crocheted materials |
6302 51 |
Table linen, of cotton, not knitted |
6302 52 |
Table linen, of flax, not knitted |
6302 53 |
Table linen, of man-made fibres, not knitted |
6302 59 |
Table linen, of other textile materials, not knitted |
6302 60 |
Toilet and kitchen linen, of terry towellg or similar terry fab, of cotton |
6302 91 |
Toilet and kitchen linen, of cotton, nes |
6302 92 |
Toilet and kitchen linen, of flax |
6302 93 |
Toilet and kitchen linen, of man-made fibres |
6302 99 |
Toilet and kitchen linen, of other textile materials |
6303 11 |
Curtains, drapes, interior blinds and curtain or bed valances, of cotton, knit |
6303 12 |
Curtains, drapes, interior blinds and curtain/bd valances, of syn fib, knittd |
6303 19 |
Curtains, drapes, interior blinds and curtain/bd valances, oth tex mat, knit |
6303 91 |
Curtains/drapes/interior blinds and curtain/bd valances, of cotton, not knit |
6303 92 |
Curtains/drapes/interior blinds curtain/bd valances, of syn fib, nt knit |
6303 99 |
Curtain/drape/interior blind curtain/bd valance, of oth tex mat, nt knit |
6304 11 |
Bedspreads of textile materials, nes, knitted or crocheted |
6304 19 |
Bedspreads of textile materials, nes, not knitted or crocheted |
6304 91 |
Furnishing articles nes, of textile materials, knitted or crocheted |
6304 92 |
Furnishing articles nes, of cotton, not knitted or crocheted |
6304 93 |
Furnishing articles nes, of synthetic fibres, not knitted or crocheted |
6304 99 |
Furnishg articles nes, of oth textile materials, not knittd o crochetd |
6305 10 |
Sacks and bags, for packg of goods, of jute or of other textile bast fibres |
6305 20 |
Sacks and bags, for packing of goods, of cotton |
6305 31 |
Sacks and bags, for packg of goods, of polyethylene or polypropylene strips |
6305 39 |
Sacks and bags, for packing of goods, of other man-made textile materials |
6305 90 |
Sacks and bags, for packing of goods, of other textile materials |
6306 11 |
Tarpaulins, awnings and sunblinds, of cotton |
6306 12 |
Tarpaulins, awnings and sunblinds, of synthetic fibres |
6306 19 |
Tarpaulins, awnings and sunblinds, of other textile materials |
6306 21 |
Tents, of cotton |
6306 22 |
Tents, of synthetic fibres |
6306 29 |
Tents, of other textile materials |
6306 31 |
Sails, of synthetic fibres |
6306 39 |
Sails, of other textile materials |
6306 41 |
Pneumatic mattresses, of cotton |
6306 49 |
Pneumatic mattresses, of other textile materials |
6306 91 |
Camping goods nes, of cotton |
6306 99 |
Camping goods nes, of other textile materials |
6307 10 |
Floor-cloths, dish-cloths, dusters and similar cleaning cloths, of tex mat |
6307 20 |
Life jackets and life belts, of textile materials |
6307 90 |
Made up articles, of textile materials, nes, including dress patterns |
6308 00 |
Sets consistg of woven fab and yarn, for makg up into rugs, tapestries etc |
6309 00 |
Worn clothing and other worn articles |
Textile and clothing products in Chapters 30—49, 64—96
HS No |
Product Description |
||
3005 90 |
Wadding, gauze, bandages and the like |
||
ex 3921 12 ex 3921 13 ex 3921 90 |
|
||
ex 4202 12 ex 4202 22 ex 4202 32 ex 4202 92 |
|
||
ex 6405 20 |
Footwear with soles and uppers of wool felt |
||
ex 6406 10 |
Footwear uppers of which 50 % or more of the external surface area is textile material |
||
ex 6406 99 |
Leg warmers and gaiters of textile material |
||
6501 00 |
Hat-forms, hat bodies and hoods of felt; plateaux and manchons of felt |
||
6502 00 |
Hat-shapes, plaited or made by assembling strips of any material |
||
6503 00 |
Felt hats and other felt headgear |
||
6504 00 |
Hats and other headgear, plaited or made by assembling strips of any material |
||
6505 90 |
Hats and other headgear, knitted or made up from lace, or other textile material |
||
6601 10 |
Umbrellas and sun umbrellas, garden type |
||
6601 91 |
Other umbrella types, telescopic shaft |
||
6601 99 |
Other umbrellas |
||
ex 7019 10 |
Yarns of fibre glass |
||
ex 7019 20 |
Woven fabrics of fibre glass |
||
8708 21 |
Safety seat belts for motor vehicles |
||
8804 00 |
Parachutes; their parts and accessories |
||
9113 90 |
Watch straps, bands and bracelets of textile materials |
||
ex 9404 90 |
Pillow and cushions of cotton, quilts; eiderdowns; comforters and similar articles of textile materials |
||
9502 91 |
Garments for dolls |
||
ex 9612 10 |
Woven ribbons, of man-made fibres, other than those measuring less than 30 mm in width and permanently put up in cartridges |
AGREEMENT ON TECHNICAL BARRIERS TO TRADE
MEMBERS,
Having regard to the Uruguay Round of Multilateral Trade Negotiations;
Desiring to further the objectives of GATT 1994;
Recognizing the important contribution that international standards and conformity assessment systems can make in this regard by improving efficiency of production and facilitating the conduct of international trade;
Desiring therefore to encourage the development of such international standards and conformity assessment systems;
Desiring however to ensure that technical regulations and standards, including packaging, marking and labelling requirements, and procedures for assessment of conformity with technical regulations and standards do not create unnecessary obstacles to international trade;
Recognizing that no country should be prevented from taking measures necessary to ensure the quality of its exports, or for the protection of human, animal or plant life or health, of the environment, or for the prevention of deceptive practices, at the levels it considers appropriate, subject to the requirement that they are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail or a disguised restriction on international trade, and are otherwise in accordance with the provisions of this Agreement;
Recognizing that no country should be prevented from taking measures necessary for the protection of its essential security interest;
Recognizing the contribution which international standardization can make to the transfer of technology from developed to developing countries;
Recognizing that developing countries may encounter special difficulties in the formulation and application of technical regulations and standards and procedures for assessment of conformity with technical regulations and standards, and desiring to assist them in their endeavours in this regard;
HEREBY AGREE AS FOLLOWS:
Article 1
General Provisions
TECHNICAL REGULATIONS AND STANDARDS
Article 2
Preparation, Adoption and Application of Technical Regulations by Central Government Bodies
With respect to their central government bodies:
Members shall ensure that in respect of technical regulations, products imported from the territory of any Member shall be accorded treatment no less favourable than that accorded to like products of national origin and to like products originating in any other country.
Members shall ensure that technical regulations are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade. For this purpose, technical regulations shall not be more trade-restrictive than necessary to fulfil a legitimate objective, taking account of the risks non-fulfilment would create. Such legitimate objectives are inter alia: national security requirements; the prevention of deceptive practices; protection of human health or safety, animal or plant life or health, or the environment. In assessing such risks, relevant elements of consideration are inter alia: available scientific and technical information, related processing technology or intended end-uses of products.
Technical regulations shall not be maintained if the circumstances or objectives giving rise to their adoption no longer exist or if the changed circumstances or objectives can be addressed in a less trade-restrictive manner.
Where technical regulations are required and relevant international standards exist or their completion is imminent, Members shall use them, or the relevant parts of them, as a basis for their technical regulations except when such international standards or relevant parts would be an ineffective or inappropriate means for the fulfilment of the legitimate objectives pursued, for instance because of fundamental climatic or geographical factors or fundamental technological problems.
A Member preparing, adopting or applying a technical regulation which may have a significant effect on trade of other Members shall, upon the request of another Member, explain the justification for that technical regulation in terms of the provisions of paragraphs 2 to 4. Whenever a technical regulation is prepared, adopted or applied for one of the legitimate objectives explicitly mentioned in paragraph 2, and is in accordance with relevant international standards, it shall be rebuttably presumed not to create an unnecessary obstacle to international trade.
With a view to harmonizing technical regulations on as wide a basis as possible, Members shall play a full part, within the limits of their resources, in the preparation by appropriate international standardizing bodies of international standards for products for which they either have adopted, or expect to adopt, technical regulations.
Members shall give positive consideration to accepting as equivalent technical regulations of other Members, even if these regulations differ from their own, provided they are satisfied that these regulations adequately fulfil the objectives of their own regulations.
Wherever appropriate, Members shall specify technical regulations based on product requirements in terms of performance rather than design or descriptive characteristics.
Whenever a relevant international standard does not exist or the technical content of a proposed technical regulation is not in accordance with the technical content of relevant international standards, and if the technical regulation may have a significant effect on trade of other Members, Members shall:
publish a notice in a publication at an early appropriate stage, in such a manner as to enable interested parties in other Members to become acquainted with it, that they propose to introduce a particular technical regulation;
notify other Members through the Secretariat of the products to be covered by the proposed technical regulation, together with a brief indication of its objective and rationale. Such notifications shall take place at an early appropriate stage, when amendments can still be introduced and comments taken into account;
upon request, provide to other Members particulars or copies of the proposed technical regulation and, whenever possible, identify the parts which in substance deviate from relevant international standards;
without discrimination, allow reasonable time for other Members to make comments in writing, discuss these comments upon request, and take these written comments and the results of these discussions into account.
Subject to the provisions in the lead-in to paragraph 9, where urgent problems of safety, health, environmental protection or national security arise or threaten to arise for a Member, that Member may omit such of the steps enumerated in paragraph 9 as it finds necessary, provided that the Member, upon adoption of a technical regulation, shall:
notify immediately other Members through the Secretariat of the particular technical regulation and the products covered, with a brief indication of the objective and the rationale of the technical regulation, including the nature of the urgent problems;
upon request, provide other Members with copies of the technical regulation;
without discrimination, allow other Members to present their comments in writing, discuss these comments upon request, and take these written comments and the results of these discussions into account.
Members shall ensure that all technical regulations which have been adopted are published promptly or otherwise made available in such a manner as to enable interested parties in other Members to become acquainted with them.
Except in those urgent circumstances referred to in paragraph 10, Members shall allow a reasonable interval between the publication of technical regulations and their entry into force in order to allow time for producers in exporting Members, and particularly in developing country Members, to adapt their products or methods of production to the requirements of the importing Member.
Article 3
Preparation, Adoption and Application of Technical Regulations by Local Government Bodies and Non-Governmental Bodies
With respect to their local government and nongovernmental bodies within their territories:
Members shall take such reasonable measures as may be available to them to ensure compliance by such bodies with the provisions of Article 2, with the exception of the obligation to notify as referred to in paragraphs 9.2 and 10.1 of Article 2.
Members shall ensure that the technical regulations of local governments on the level directly below that of the central government in Members are notified in accordance with the provisions of paragraphs 9.2 and 10.1 of Article 2, noting that notification shall not be required for technical regulations the technical content of which is substantially the same as that of previously notified technical regulations of central government bodies of the Member concerned.
Members may require contact with other Members, including the notifications, provision of information, comments and discussions referred to in paragraphs 9 and 10 of Article 2, to take place through the central government.
Members shall not take measures which require or encourage local government bodies or non-governmental bodies within their territories to act in a manner inconsistent with the provisions of Article 2.
Members are fully responsible under this Agreement for the observance of all provisions of Article 2. Members shall formulate and implement positive measures and mechanisms in support of the observance of the provisions of Article 2 by other than central government bodies.
Article 4
Preparation, Adoption and Application of Standards
CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS
Article 5
Procedures for Assessment of Conformity by Central Government Bodies
Members shall ensure that, in cases where a positive assurance of conformity with technical regulations or standards is required, their central government bodies apply the following provisions to products originating in the territories of other Members:
conformity assessment procedures are prepared, adopted and applied so as to grant access for suppliers of like products originating in the territories of other Members under conditions no less favourable than those accorded to suppliers of like products of national origin or originating in any other country, in a comparable situation; access entails suppliers' right to an assessment of conformity under the rules of the procedure, including, when foreseen by this procedure, the possibility to have conformity assessment activities undertaken at the site of facilities and to receive the mark of the system;
conformity assessment procedures are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade. This means inter alia that conformity assessment procedures shall not be more strict or be applied more strictly than is necessary to give the importing Members adequate confidence that products conform with the applicable technical regulations or standards, taking account of the risks non-conformity would create.
When implementing the provisions of paragraph 1, Members shall ensure that:
conformity assessment procedures are undertaken and completed as expeditiously as possible and in a no less favourable order for products originating in the territories of other Members than for like domestic products;
the standard processing period of each conformity assessment procedure is published or that the anticipated processing period is communicated to the applicant upon request; when receiving an application, the competent body promptly examines the completeness of the documentation and informs the applicant in a precise and complete manner of all deficiencies; the competent body transmits as soon as possible the results of the assessment in a precise and complete manner to the applicant so that corrective action may be taken if necessary; even when the application has deficiencies, the competent body proceeds as far as practicable with the conformity assessment if the applicant so requests; and that, upon request, the applicant is informed of the stage of the procedure, with any delay being explained;
information requirements are limited to what is necessary to assess conformity and determine fees;
the confidentiality of information about products originating in the territories of other Members arising from or supplied in connection with such conformity assessment procedures is respected in the same way as for domestic products and in such a manner that legitimate commercial interests are protected;
any fees imposed for assessing the conformity of products originating in the territories of other Members are equitable in relation to any fees chargeable for assessing the conformity of like products of national origin or originating in any other country, taking into account communication, transportation and other costs arising from differences between location of facilities of the applicant and the conformity assessment body;
the siting of facilities used in conformity assessment procedures and the selection of samples are not such as to cause unnecessary inconvenience to applicants or their agents;
whenever specifications of a product are changed subsequent to the determination of its conformity to the applicable technical regulations or standards, the conformity assessment procedure for the modified product is limited to what is necessary to determine whether adequate confidence exists that the product still meets the technical regulations or standards concerned;
a procedure exists to review complaints concerning the operation of a conformity assessment procedure and to take corrective action when a complaint is justified.
Whenever a relevant guide or recommendation issued by an international standardizing body does not exist or the technical content of a proposed conformity assessment procedure is not in accordance with relevant guides and recommendations issued by international standardizing bodies, and if the conformity assessment procedure may have a significant effect on trade of other Members, Members shall:
publish a notice in a publication at an early appropriate stage, in such a manner as to enable interested parties in other Members to become acquainted with it, that they propose to introduce a particular conformity assessment procedure;
notify other Members through the Secretariat of the products to be covered by the proposed conformity assessment procedure, together with a brief indication of its objective and rationale. Such notifications shall take place at an early appropriate stage, when amendments can still be introduced and comments taken into account;
upon request, provide to other Members particulars or copies of the proposed procedure and, whenever possible, identify the parts which in substance deviate from relevant guides or recommendations issued by international standardizing bodies;
without discrimination, allow reasonable time for other Members to make comments in writing, discuss these comments upon request, and take these written comments and the results of these discussions into account.
Subject to the provisions in the lead-in to paragraph 6, where urgent problems of safety, health, environmental protection or national security arise or threaten to arise for a Member, that Member may omit such of the steps enumerated in paragraph 6 as it finds necessary, provided that the Member, upon adoption of the procedure, shall:
notify immediately other Members through the Secretariat of the particular procedure and the products covered, with a brief indication of the objective and the rationale of the procedure, including the nature of the urgent problems;
upon request, provide other Members with copies of the rules of the procedure;
without discrimination, allow other Members to present their comments in writing, discuss these comments upon request, and take these written comments and the results of these discussions into account.
Article 6
Recognition of Conformity Assessment by Central Government Bodies
With respect to their central government bodies;
Without prejudice to the provisions of paragraphs 3 and 4, Members shall ensure, whenever possible, that results of conformity assessment procedures in other Members are accepted, even when those procedures differ from their own, provided they are satisfied that those procedures offer an assurance of conformity with applicable technical regulations or standards equivalent to their own procedures. It is recognized that prior consultations may be necessary in order to arrive at a mutually satisfactory understanding regarding, in particular:
adequate and enduring technical competence of the relevant conformity assessment bodies in the exporting Member, so that confidence in the continued reliability of their conformity assessment results can exist; in this regard, verified compliance, for instance through accreditation, with relevant guides or recommendations issued by international standardizing bodies shall be taken into account as an indication of adequate technical competence;
limitation of the acceptance of conformity assessment results to those produced by designated bodies in the exporting Member.
Members shall ensure that their conformity assessment procedures permit, as far as practicable, the implementation of the provisions in paragraph 1.
Members are encouraged, at the request of other - Members, to be willing to enter into negotiations for the conclusion of agreements for the mutual recognition of results of each other's conformity assessment procedures. Members may require that such agreements fulfil the criteria of paragraph 1 and give mutual satisfaction regarding their potential for facilitating trade in the products concerned.
Members are encouraged to permit participation of conformity assessment bodies located in the territories of other Members in their conformity assessment procedures under conditions no less favourable than those accorded to bodies located within their territory or the territory of any other country.
Article 7
Procedures for Assessment of Conformity by Local Government Bodies
With respect to their local government bodies within their territories:
Members shall take such reasonable measures as may be available to them to ensure compliance by such bodies with the provisions of Articles 5 and 6, with the exception of the obligation to notify as referred to in paragraphs 6.2 and 7.1 of Article 5.
Members shall ensure that the conformity assessment procedures of local governments on the level directly below that of the central government in Members are notified in accordance with the provisions of paragraphs 6.2 and 7.1 of Article 5, noting that notifications shall not be required for conformity assessment procedures the technical content of which is substantially the same as that of previously notified conformity assessment procedures of central government bodies of the Members concerned.
Members may require contact with other Members, including the notifications, provision of information, comments and discussions referred to in paragraphs 6 and 7 of Article 5, to take place through the central government.
Members shall not take measures which require or encourage local government bodies within their territories to act in a manner inconsistent with the provisions of Articles 5 and 6.
Members are fully responsible under this Agreement for the observance of all provisions of Articles 5 and 6. Members shall formulate and implement positive measures and mechanisms in support of the observance of the provisions of Articles 5 and 6 by other than central government bodies.
Article 8
Procedures for Assessment of Conformity by Non-Governmental Bodies
Article 9
International and Regional Systems
INFORMATION AND ASSISTANCE
Article 10
Information About Technical Regulations, Standards and Conformity Assessment Procedures
Each Member shall ensure that an enquiry point exists which is able to answer all reasonable enquiries from other Members and interested parties in other Members as well as to provide the relevant documents regarding:
any technical regulations adopted or proposed within its territory by central or local government bodies, by non-governmental bodies which have legal power to enforce a technical regulation, or by regional standardizing bodies of which such bodies are members or participants;
any standards adopted or proposed within its territory by central or local government bodies, or by regional standardizing bodies of which such bodies are members or participants;
any conformity assessment procedures, or proposed conformity assessment procedures, which are operated within its territory by central or local government bodies, or by non-governmental bodies which have legal power to enforce a technical regulation, or by regional bodies of which such bodies are members or participants;
the membership and participation of the Member, or of relevant central or local government bodies within its territory, in international and regional standarizing bodies and conformity assessment systems, as well as in bilateral and multilateral arrangements within the scope of this Agreement; it shall also be able to provide reasonable information on the provisions of such systems and arrangements;
the location of notices published pursuant to this Agreement, or the provision of information as to where such information can be obtained; and
the location of the enquiry points mentioned in paragraph 3.
Each Member shall take such reasonable measures as may be available to it to ensure that one or more enquiry points exist which are able to answer all reasonable enquiries from other Members and interested parties in other Members as well as to provide the relevant documents or information as to where they can be obtained regarding:
any standards adopted or proposed within its territory by non-governmental standardizing bodies, or by regional standardizing bodies of which such bodies are members or participants; and
any conformity assessment procedures, or proposed conformity assessment procedures, which are operated within its territory by non-governmental bodies, or by regional bodies of which such bodies are members or participants;
the membership and participation of relevant non-governmental bodies within its territory in international and regional standardizing bodies and conformity assessment systems, as well as in bilateral and multilateral arrangements within the scope of this Agreement; they shall also be able to provide reasonable information on the provisions of such systems and arrangements.
Nothing in this Agreement shall be construed as requiring:
the publication of texts other than in the language of the Member;
the provision of particulars or copies of drafts other than in the language of the Member except as stated in paragraph 5; or
Members to furnish any information, the disclosure of which they consider contrary to their essential security interests.
Article 11
Technical Assistance to Other Members
Members shall, if requested, take such reasonable measures as may be available to them to arrange for the regulatory bodies within their territories to advise other Members, especially the developing country Members, and shall grant them technical assistance on mutually agreed terms and conditions regarding:
the establishment of regulatory bodies, or bodies for the assessment of conformity with technical regulations; and
the methods by which their technical regulations can best be met.
Article 12
Special and Differential Treatment of Developing Country Members
INSTITUTIONS, CONSULTATION AND DISPUTE SETTLEMENT
Article 13
The Committee on Technical Barriers to Trade
Article 14
Consultation and Dispute Settlement
FINAL PROVISIONS
Article 15
Final Provisions
Reservations
Review
Annexes
ANNEX 1
TERMS AND THEIR DEFINITIONS FOR THE PURPOSE OF THIS AGREEMENT
The terms presented in the sixth edition of the ISO/IEC Guide 2: 1991, General Terms and Their Definitions Concerning Standardization and Related Activities, shall, when used in this Agreement, have the same meaning as given in the definitions in the said Guide taking into account that services are excluded from the coverage of this Agreement.
For the purpose of this Agreement, however, the following definitions shall apply:
1. Technical regulation
Document which lays down product characteristics or their related processes and production methods, including the applicable administrative provisions, with which compliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method.
Explanatory note
The definition in ISO/IEC Guide 2 is not self-contained, but based on the so-called ‘building block’ system.
2. Standard
Document approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characteristics for products or related processes and production methods, with which compliance is not mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, process or production method.
Explanatory note
The terms as defined in ISO/IEC Guide 2 cover products, processes and services. This Agreement deals only with technical regulations, standards and conformity assessment procedures related to products or processes and production methods. Standards as defined by ISO/IEC Guide 2 may be mandatory or voluntary. For the purpose of this Agreement standards are defined as voluntary and technical regulations as mandatory documents. Standards prepared by the international standardization community are based on consensus. This Agreement covers also documents that are not based on consensus.
3. Conformity assessment procedures
Any procedure used, directly or indirectly, to determine that relevant requirements in technical regulations or standards are fulfilled.
Explanatory note
Conformity assessment procedures include inter alia procedures for sampling, testing and inspection; evaluation, verification and assurance of conformity; registration, accreditation and approval as well as their combinations.
4. International body or system
Body or system whose membership is open to the relevant bodies of at least all Members.
5. Regional body or system
Body or system whose membership is open to the relevant bodies of only some of the Members.
6. Central government body
Central government, its ministries and departments or any body subject to the control of the central government in respect of the activity in question.
Explanatory note:
In the case of the European Communities the provisions governing central government bodies apply. However, regional bodies or conformity assessment systems may be established within the European Communities, and in such cases would be subject to the provisions of this Agreement on regional bodies or conformity assessment systems.
7. Local government body
Government other than a central government (e.g. States, provinces, Lander, cantons, municipalities, etc.), its ministries or departments or any body subject to the control of such a government in respect of the activity in question.
8. Non-governmental body
Body other than a central government body or a local government body, including a non-governmental body which has legal power to enforce a technical regulation.
ANNEX 2
TECHNICAL EXPERT GROUPS
The following procedures shall apply to technical expert groups established in accordance with the provisions of Article 14.
Technical expert groups are under the panel's authority. Their terms of reference and detailed working procedures shall be decided by the panel, and they shall report to the panel.
Participation in technical expert groups shall be restricted to persons of professional standing and experience in the field in question.
Citizens of parties to the dispute shall not serve on a technical expert group without the joint agreement of the parties to the dispute, except in exceptional circumstances when the panel considers that the need for specialized scientific expertise cannot be fulfilled otherwise. Government officials of parties to the dispute shall not serve on a technical expert group. Members of technical expert groups shall serve in their individual capacities and not as government representatives, nor as representatives of any organization. Governments or organizations shall therefore not give them instructions with regard to matters before a technical expert group.
Technical expert groups may consult and seek information and technical advice from any source they deem appropriate. Before a technical expert group seeks such information or advice from a source within the jurisdiction of a Member, it shall inform the government of that Member. Any Member shall respond promptly and fully to any request by a technical expert group for such information as the technical expert group considers necessary and appropriate.
The parties to a dispute shall have access to all relevant information provided to a technical expert group, unless it is of a confidential nature. Confidential information provided to the technical expert group shall not be released without formal authorization from the government, organization or person providing the information. Where such information is requested from the technical expert group but release of such information by the technical expert group is not authorized, a non-confidential summary of the information will be provided by the government, organization or person supplying the information.
The technical expert group shall submit a draft report to the Members concerned with a view to obtaining their comments, and taking them into account, as appropriate, in the final report, which shall also be circulated to the Members concerned when it is submitted to the panel.
ANNEX 3
CODE OF GOOD PRACTICE FOR THE PREPARATION, ADOPTION AND APPLICATION OF STANDARDS
General Provisions
A. For the purposes of this Code the definitions in Annex 1 of this Agreement shall apply.
B. This Code is open to acceptance by any standardizing body within the territory of a Member of the WTO, whether a central government body, a local government body, or a non-governmental body; to any governmental regional standardizing body one or more members of which are Members of the WTO; and to any non-governmental regional standardizing body one or more members of which are situated within the territory of a Member of the WTO (referred to in this Code collectively as ‘standardizing bodies’ and individually as ‘the standardizing body’).
C. Standardizing bodies that have accepted or withdrawn from this Code shall notify this fact to the ISO/IEC Information Centre in Geneva. The notification shall include the name and address of the body concerned and the scope of its current and expected standardization activities. The notification may be sent either directly to the ISO/IEC Information Centre, or through the national member body of ISO/IEC or, preferably, through the relevant national member or international affiliate of Isonet, as appropriate.
Substantive Provisions
D. In respect of standards, the standardizing body shall accord treatment to products originating in the territory of any other Member of the WTO no less favourable than that accorded to like products of national origin and to like products originating in any other country.
E. The standardizing body shall ensure that standards are not prepared, adopted or applied with a view to, or with the effect of, creating unnecessary obstacles to international trade.
F. Where international standards exist or their completion is imminent, the standardizing body shall use them, or the relevant parts of them, as a basis for the standards it develops, except where such international standards or relevant parts would be ineffective or inappropriate, for instance, because of an insufficient level of protection or fundamental climatic or geographical factors or fundamental technological problems.
G. With a view to harmonizing standards on as wide a basis as possible, the standardizing body shall, in an appropriate way, play a full part, within the limits of its resources, in the preparation by relevant international standardizing bodies of international standards regarding subject matter for which it either has adopted, or expects to adopt, standards. For standardizing bodies within the territory of a Member, participation in a particular international standardization activity shall, whenever possible, take place through one delegation representing all standardizing bodies in the territory that have adopted, or expect to adopt, standards for the subject matter to which the international standardization activity relates.
H. The standardizing body within the territory of a Member shall make every effort to avoid duplication of, or overlap with, the work of other standardizing bodies in the national territory or with the work of relevant international or regional standardizing bodies. They shall also make every effort to achieve a national consensus on the standards they develop. Likewise the regional standardizing body shall make every effort to avoid duplication of, or overlap with, the work of relevant international standardizing bodies.
I. Wherever appropriate, the standardizing body shall specify standards based on product requirements in terms of performance rather than design or descriptive characteristics.
J. At least once every six months, the standardizing body shall publish a work programme containing its name and address, the standards it is currently preparing and the standards which it has adopted in the preceding period. A standard is under preparation from the moment a decision has been taken to develop a standard until that standard has been adopted. The titles of specific draft standards shall, upon request, be provided in English, French or Spanish. A notice of the existence of the work programme shall be published in a national or, as the case may be, regional publication of standardization activities.
The work programme shall for each standard indicate, in accordance with any Isonet rules, the classification relevant to the subject matter, the stage attained in the standard's development, and the references of any international standards taken as a basis. No later than at the time of publication of its work programme, the standardizing body shall notify the existence thereof to the ISO/IEC Information Centre in Geneva.
The notification shall contain the name and address of the standardizing body, the name and issue of the publication in which the work programme is published, the period to which the work programme applies, its price (if any), and how and where it can be obtained. The notification may be sent directly to the ISO/IEC Information Centre, or, preferably, through the relevant national member or international affiliate of ISONET, as appropriate.
K. The national member of ISO/IEC shall make every effort to become a member of Isonet or to appoint another body to become a member as well as to acquire the most advanced membership type possible for the Isonet member. Other standardizing bodies shall make every effort to associate themselves with the Isonet member.
L. Before adopting a standard, the standardizing body shall allow a period of at least 60 days for the submission of comments on the draft standard by interested parties within the territory of a Member of the WTO. This period may, however, be shortened in cases where urgent problems of safety, health or environment arise or threaten to arise. No later than at the start of the comment period, the standardizing body shall publish a notice announcing the period for commenting in the publication referred to in paragraph J. Such notification shall include, as far as practicable, whether the draft standard deviates from relevant international standards.
M. On the request of any interested party within the territory of a Member of the WTO, the standardizing body shall promptly provide, or arrange to provide, a copy of a draft standard which it has submitted for comments. Any fees charged for this service shall, apart from the real cost of delivery, be the same for foreign and domestic parties.
N. The standardizing body shall take into account, in the further processing of the standard, the comments received during the period for commenting. Comments received through standardizing bodies that have accepted this Code of Good Practice shall, if so requested, be replied to as promptly as possible. The reply shall include an explanation why a deviation from relevant international standards is necessary.
O. Once the standard has been adopted, it shall be promptly published.
P. On the request of any interested party within the territory of a Member of the WTO, the standardizing body shall promptly provide, or arrange to provide, a copy of its most recent work programme or of a standard which it produced. Any fees charged for this service shall, apart from the real cost of delivery, be the same for foreign and domestic parties.
Q. The standardizing body shall afford sympathetic consideration to, and adequate opportunity for, consultation regarding representations with respect to the operation of this Code presented by standardizing bodies that have accepted this Code of Good Practice. It shall make an objective effort to solve any complaints.
AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES
MEMBERS,
Considering that Ministers agreed in the Punta del Este Declaration that ‘Following an examination of the operation of GATT Articles related to the trade restrictive and distorting effects of investment measures, negotiations should elaborate, as appropriate, further provisions that may be necessary to avoid such adverse effects on trade’;
Desiring to promote the expansion and progressive liberalisation of world trade and to facilitate investment across international frontiers so as to increase the economic growth of all trading partners, particularly developing country Members, while ensuring free competition;
Taking into account the particular trade, development and financial needs of developing country Members, particularly those of the least-developed country Members;
Recognizing that certain investment measures can cause trade-restrictive and distorting effects;
HEREBY AGREE AS FOLLOWS:
Article 1
Coverage
This Agreement applies to investment measures related to trade in goods only (referred to in this Agreement as ‘TRIMs’).
Article 2
National Treatment and Quantitative Restrictions
Article 3
Exceptions
All exceptions under GATT 1994 shall apply, as appropriate, to the provisions of this Agreement.
Article 4
Developing Country Members
A developing country Member shall be free to deviate temporarily from the provisions of Article 2 to the extent and in such a manner as Article XVIII of GATT 1994, the Understanding on the Balance-of-Payments Provisions of GATT 1994, and the Declaration on Trade Measures Taken for Balance-of-Payments Purposes adopted on 28 November 1979 (BISD 26S/205—209) permit the Member to deviate from the provisions of Articles III and XI of GATT 1994.
Article 5
Notification and Transitional Arrangements
Article 6
Transparency
Article 7
Committee on Trade-Related Investment Measures
Article 8
Consultation and Dispute Settlement
The provisions of Articles XXII and XXIII of GATT 1994, as elaborated and applied by the Dispute Settlement Understanding, shall apply to consultations. and the settlement of disputes under this Agreement.
Article 9
Review by the Council for Trade in Goods
Not later than five years after the date of entry into force of the WTO Agreement, the Council for Trade in Goods shall review the operation of this Agreement and, as appropriate, propose to the Ministerial Conference amendments to its text. In the course of this review, the Council for Trade in Goods shall consider whether the Agreement should be complemented with provisions on investment policy and competition policy.
ANNEX
ILLUSTRATIVE LIST
1. TRIMs that are inconsistent with the obligation of national treatment provided for in paragraph 4 of Article III of GATT 1994 include those which are mandatory or enforceable under domestic law or under administrative rulings, or compliance with which is necessary to obtain an advantage, and which require:
the purchase or use by an enterprise of products of domestic origin or from any domestic source, whether specified in terms of particular products, in terms of volume or value of products, or in terms of a proportion of volume or value of its local production;
or
that an enterprise's purchases or use of imported products be limited to an amount related to the volume or value of local products that it exports.
2. TRIMs that are inconsistent with the obligation of general elimination of quantitative restrictions provided for in paragraph 1 of Article XI of GATT 1994 include those which are mandatory or enforceable under domestic law or under administrative rulings, or compliance with which is necessary to obtain an advantage, and which restrict:
the importation by an enterprise of products used in or related to its local production, generally or to an amount related to the volume or value of local production that it exports;
the importation by an enterprise of products used in or related to its local production by restricting its access to foreign exchange to an amount related to the foreign exchange inflows attributable to the enterprise; or
the exportation or sale for export by an enterprise of products, whether specified in terms of particular products, in terms of volume or value of products, or in terms of a proportion of volume or value of its local production.
AGREEMENT ON IMPLEMENTATION OF ARTICLE VI OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
MEMBERS HEREBY AGREE AS FOLLOWS:
PART I
Article 1
Principles
An anti-dumping measure shall be applied only under the circumstances provided for in Article VI of GATT 1994 and pursuant to investigations initiated ( 29 ) and conducted in accordance with the provisions of this Agreement. The following provisions govern the application of Article VI of GATT 1994 in so far as action is taken under anti-dumping legislation or regulations.
Article 2
Determination of Dumping
2.1 For the purpose of this Agreement, a product is to be considered as being dumped, i.e. introduced into the commerce of another country at less than its normal value, if the export price of the product exported from one country to another is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country.
2.2 When there are no sales of the like product in the ordinary course of trade in the domestic market of the exporting country or when, because of the particular market situation or the low volume of the sales in the domestic market of the exporting country ( 30 ), such sales do not permit a proper comparison, the margin of dumping shall be determined by comparison with a comparable price of the like product when exported to an appropriate third country, provided that this price is representative, or with the cost of production in the country of origin plus a reasonable amount for administrative, selling and general costs and for profits.
Sales of the like product in the domestic market of the exporting country or sales to a third country at prices below per unit (fixed and variable) costs of production plus administrative, selling and general costs may be treated as not being in the ordinary course of trade by reason of price and may be disregarded in determining normal value only if the authorities ( 31 ) determine that such sales are made within an extended period of time ( 32 ) in substantial quantities ( 33 ) and are at prices which do not provide for the recovery of all costs within a reasonable period of time. If prices which are below per unit costs at the time of sale are above weighted average per unit costs for the period of investigation, such prices shall be considered to provide for recovery of costs within a reasonable period of time.
For the purpose of paragraph 2, costs shall normally be calculated on the basis of records kept by the exporter or producer under investigation, provided, that such records are in accordance with the generally accepted accounting principles of the exporting country and reasonably reflect the costs associated with the production and sale of the product under consideration. Authorities shall consider all available evidence on the proper allocation of costs, including that which is made available by the exporter or producer in the course of the investigation provided that such allocations have been historically utilized by the exporter or producer, in particular in relation to establishing appropriate amortization and depreciation periods and allowances for capital expenditures and other development costs. Unless already reflected in the cost allocations under this sub-paragraph, costs shall be adjusted appropriately for those non-recurring items of cost which benefit future and/or current production, or for circumstances in which costs during the period of investigation are affected by start-up operations ( 34 ).
For the purpose of paragraph 2, the amounts for administrative, selling and general costs and for profits shall be based on actual data pertaining to production and sales in the ordinary course of trade of the like product by the exporter or producer under investigation. When such amounts cannot be determined on this basis, the amounts may be determined on the basis of:
the actual amounts incurred and realized by the exporter or producer in question in respect of production and sales in the domestic market of the country of origin of the same general category of products;
the weighted average of the actual amounts incurred and realized by other exporters or producers subject to investigation in respect of production and sales of the like product in the domestic market of the country of origin;
any other reasonable method, provided that the amount for profit so established shall not exceed the profit normally realized by other exporters or producers on sales of products of the same general category in the domestic market of the country of origin.
2.3 In cases where there is no export price or where it appears to the authorities concerned that the export price is unreliable because of association or a compensatory arrangement between the exporter and the importer or a third party, the export price may be constructed on the basis of the price at which the imported products are first resold to an independent buyer, or if the products are not resold to an independent buyer, or not resold in the condition as imported, on such reasonable basis as the authorities may determine.
2.4 A fair comparison shall be made between the export price and the normal value. This comparison shall be made at the same level of trade, normally at the ex-factory level, and in respect of sales made at as nearly as possible the same time. Due allowance shall be made in each case, on its merits, for differences which affect price comparability, including differences in conditions and terms of sale, taxation, levels of trade, quantities, physical characteristics, and any other differences which are also demonstrated to affect price comparability ( 35 ). In the cases referred to in paragraph 3, allowances for costs, including duties and taxes, incurred between importation and resale, and for profits accruing, should also be made. If in these cases price comparability has been affected, the authorities shall establish the normal value at a level of trade equivalent to the level of trade of the constructed export price, or shall make due allowance as warranted under this paragraph. The authorities shall indicate to the parties in question what information is necessary to ensure a fair comparison and shall not impose an unreasonable burden of proof on those parties.
When the comparison under paragraph 4 requires a conversion of currencies, such conversion should be made using the rate of exchange on the date of sale ( 36 ), provided that when a sale of foreign currency on forward markets is directly linked to the export sale involved, the rate of exchange in the forward sale shall be used. Fluctuations in exchange rates shall be ignored and in an investigation the authorities shall allow exporters at least 60 days to have adjusted their export prices to reflect sustained movements in exchange rates during the period of investigation.
Subject to the provisions governing fair comparison in paragraph 4, the existence of margins of dumping during the investigation phase shall normally be established on the basis of a comparison of a weighted average normal value with a weighted average of prices of all comparable export transactions or by a comparison of normal value and export prices on a transaction-to-transaction basis. A normal value established on a weighted average basis may be compared to prices of individual export transactions if the authorities find a pattern of export prices which differ significantly among different purchasers, regions or time periods, and if an explanation is provided as to why such differences cannot be taken into account appropriately by the use of a weighted average-to-weighted average or transaction-to-transaction comparison.
2.5 In the case where products are not imported directly from the country of origin but are exported to the importing Member from an intermediate country, the price at which the products are sold from the country of export to the importing Member shall normally be compared with the comparable price in the country of export. However, comparison may be made with the price in the country of origin, if, for example, the products are merely trans-shipped through the country of export, or such products are not produced in the country of export, or there is no comparable price for them in the country of export.
2.6 Throughout this Agreement the term ‘like product’ (‘produit similaire’) shall be interpreted to mean a product which is identical, i.e. alike in all respects to the product under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration.
2.7 This Article is without prejudice to the second Supplementary Provision to paragraph 1 of Article VI in Annex I to GATT 1994.
Article 3
Determination of Injury ( 37 )
3.1 A determination of injury for purposes of Article VI of GATT 1994 shall be based on positive evidence and involve an objective examination of both (a) the volume of the dumped imports and the effect of the dumped imports on prices in the domestic market for like products, and (b) the consequent impact of these imports on domestic producers of such products.
3.2 With regard to the volume of the dumped imports, the investigating authorities shall consider whether there has been a significant increase in dumped imports, either in absolute terms or relative to production or consumption in the importing Member. With regard to the effect of the dumped imports on prices, the investigating authorities shall consider whether there has been a significant price undercutting by the dumped imports as compared with the price of a like product of the importing Member, or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases, which otherwise would have occurred, to a significant degree. No one or several of these factors can necessarily give decisive guidance.
3.3 Where imports of a product from more than one country are simultaneously subject to anti-dumping investigations, the investigating authorities may cumulatively assess the effects of such imports only if they determine that (a) the margin of dumping established in relation to the imports from each country is more than de minimis as defined in paragraph 8 of Article 5 and the volume of imports from each country is not negligible and (b) a cumulative assessment of the effects of the imports is appropriate in light of the conditions of competition between the imported products and the conditions of competition between the imported products and the like domestic product.
3.4 The examination of the impact of the dumped imports on the domestic industry concerned shall include an evaluation of all relevant economic factors and indices having a bearing on the state of the industry, including actual and potential decline in sales, profits, output, market share, productivity, return on investments, or utilization of capacity; factors affecting domestic prices; the magnitude of the margin of dumping; actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital or investments. This list is not exhaustive, nor can one or several of these factors necessarily give decisive guidance.
3.5 It must be demonstrated that the dumped imports are, through the effects of dumping, as set forth in paragraphs 2 and 4, causing injury within the meaning of this Agreement. The demonstration of a causal relationship between the dumped imports and the injury to the domestic industry shall be based on an examination of all relevant evidence before the authorities. The authorities shall also examine any known factors other than the dumped imports which at the same time are injuring the domestic industry, and the injuries caused by these other factors must not be attributed to the dumped imports. Factors which may be relevant in this respect include inter alia the volume and prices of imports not sold at dumping prices, contraction in demand or changes in the patterns of consumption, trade restrictive practices of and competition between the foreign and domestic producers, developments in technology and the export performance and productivity of the domestic industry.
3.6 The effect of the dumped imports shall be assessed in relation to the domestic production of the like product when available data permit the separate identification of that production on the basis of such criteria as the production process, producers' sales and profits. If such separate identification of that production is not possible, the effects of the dumped imports shall be assessed by the examination of the production of the narrowest group or range of products, which includes the like product, for which the necessary information can be provided.
3.7 A determination of a threat of material injury shall be based on facts and not merely on allegation, conjecture or remote possibility. The change in circumstances which would create a situation in which the dumping would cause injury must be clearly foreseen and imminent ( 38 ). In making a determination regarding the existence of a threat of material injury, the authorities should consider inter alia such factors as:
a significant rate of increase of dumped imports into the domestic market indicating the likelihood of substantially increased importation;
sufficient freely disposable, or an imminent, substantial increase in, capacity of the exporter indicating the likelihood of substantially increased dumped exports to the importing Member's market, taking into account the availability of other export markets to absorb any additional exports;
whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices, and would likely increase demand for further imports; and
inventories of the product being investigated.
No one of these factors by itself can necessarily give decisive guidance but the totality of the factors considered must lead to the conclusion that further dumped exports are imminent and that, unless protective action is taken, material injury would occur.
3.8 With respect to cases where injury is threatened by dumped imports, the application of anti-dumping measures shall be considered and decided with special care.
Article 4
Definition of Domestic Industry
4.1 For the purposes of this Agreement, the term ‘domestic industry’ shall be interpreted as referring to the domestic producers as a whole of the like products or to those of them whose collective output of the products constitutes a major proportion of the total domestic production of those products, except that:
when producers are related ( 39 ) to the exporters or importers or are themselves importers of the allegedly dumped product, the term ‘domestic industry’ may be interpreted as referring to the rest of the producers;
in exceptional circumstances the territory of a Member may, for the production in question, be divided into two or more competitive markets and the producers within each market may be regarded as a separate industry if (a) the producers within such market sell all or almost all of their production of the product in question in that market, and (b) the demand in that market is not to any substantial degree supplied by producers of the product in question located elsewhere in the territory. In such circumstances, injury may be found to exist even where a major portion of the total domestic industry is not injured, provided there is a concentration of dumped imports into such an isolated market and provided further that the dumped imports are causing injury to the producers of all or almost all of the production within such market.
4.2 When the domestic industry has been interpreted as referring to the producers in a certain area, i.e. a market as defined in paragraph 1 (ii), anti-dumping duties shall be levied ( 40 ) only on the products in question consigned for final consumption to that area. When the constitutional law of the importing Member does not permit the levying of anti-dumping duties on such a basis, the importing Member may levy the anti-dumping duties without limitation only if (a) the exporters shall have been given an opportunity to cease exporting at dumped prices to the area concerned or otherwise give assurances pursuant to Article 8 and adequate assurances in this regard have not been promptly given, and (b) such duties cannot be levied only on products of specific producers which supply the area in question.
4.3 Where two or more countries have reached under the provisions of paragraph 8(a) of Article XXIV of GATT 1994 such a level of integration that they have the characteristics of a single, unified market, the industry in the entire area of integration shall be taken to be the domestic industry referred to in paragraph 1.
4.4 The provisions of paragraph 6 of Article 3 shall be applicable to this Article.
Article 5
Initiation and Subsequent Investigation
5.1 Except as provided for in paragraph 6, an investigation to determine the existence, degree and effect of any alleged dumping shall be initiated upon a written application by or on behalf of the domestic industry.
5.2 An application under paragraph 1 shall include evidence of (a) dumping, (b) injury within the meaning of Article VI of GATT 1994 as interpreted by this Agreement and (c) a causal link between the dumped imports and the alleged injury. Simple assertion, unsubstantiated by relevant evidence, cannot be considered sufficient to meet the requirements of this paragraph. The application shall contain such information as is reasonably available to the applicant on the following:
the identity of the applicant and a description of the volume and value of the domestic production of the like product by the applicant. Where a written application is made on behalf of the domestic industry, the application shall identify the industry on behalf of which the application is made by a list of all known domestic producers of the like product (or associations of domestic producers of the like product) and, to the extent possible, a description of the volume and value of domestic production of the like product accounted for by such producers;
a complete description of the allegedly dumped product, the names of the country or countries of origin or export in question, the identity of each known exporter or foreign producer and a list of known persons importing the product in question;
information on prices at which the product in question is sold when destined for consumption in the domestic markets of the country or countries of origin or export (or, where appropriate, information on the prices at which the product is sold from the country or countries of origin or export to a third country or countries, or on the constructed value of the product) and information on export prices or, where appropriate, on the prices at which the product is first resold to an independent buyer in the territory of the importing Member.
information on the evolution of the volume of the allegedly dumped imports, the effect of these imports on prices of the like product in the domestic market and the consequent impact of the imports on the domestic industry, as demonstrated by relevant factors and indices having a bearing on the state of the domestic industry, such as those listed in paragraphs 2 and 4 of Article 3.
5.3 The authorities shall examine the accuracy and adequacy of the evidence provided in the application to determine whether there is sufficient evidence to justify the initiation of an investigation.
5.4 An investigation shall not be initiated pursuant to paragraph 1 unless the authorities have determined, on the basis of an examination of the degree of support for, or opposition to, the application expressed ( 41 ) by domestic producers of the like product, that the application has been made by or on behalf of the domestic industry ( 42 ). The application shall be considered to have been made ‘by or on behalf of the domestic industry’ if it is supported by those domestic producers whose collective output constitutes more than 50 per cent of the total production of the like product produced by that portion of the domestic industry expressing either support for or opposition to the application. However, no investigation shall be initiated when domestic producers expressly supporting the application account for less than 25 per cent of total production of the like product produced by the domestic industry.
5.5 The authorities shall avoid, unless a decision has been made to initiate an investigation, any publicizing of the application for the initiation of an investigation. However, after receipt of a properly documented application and before proceeding to initiate an investigation, the authorities shall notify the government of the exporting Member concerned.
5.6 If, in special circumstances, the authorities concerned decide to initiate an investigation without having received a written application by or on behalf of a domestic industry for the initiation of such investigation, they shall proceed only if they have sufficient evidence of dumping, injury and a causal link, as described in paragraph 2, to justify the initiation of an investigation.
5.7 The evidence of both dumping and injury shall be considered simultaneously (a) in the decision whether or not to initiate an investigation, and (b) thereafter, during the course of the investigation, starting on a date not later than the earliest date on which in accordance with the provisions of this Agreement provisional measures may be applied.
5.8 An application under paragraph 1 shall be rejected and an investigation shall be terminated promptly as soon as the authorities concerned are satisfied that there is not sufficient evidence of either dumping or of injury to justify proceeding with the case. There shall be immediate termination in cases where the authorities determine that the margin of dumping is de minimis, or that the volume of dumped imports, actual or potential, or the injury, is negligible. The margin of dumping shall be considered to be de minimis if this margin is less than 2 per cent, expressed as a percentage of the export price. The volume of dumped imports shall normally be regarded as negligible if the volume of dumped imports from a particular country is found to account for less than 3 per cent of imports of the like product in the importing Member, unless countries which individually account for less than 3 per cent of the imports of the like product in the importing Member collectively account for more than 7 per cent of imports of the like product in the importing Member.
5.9 An anti-dumping proceeding shall not hinder the procedures of customs clearance.
5.10 Investigations shall, except in special circumstances, be concluded within one year, and in no case more than 18 months, after their initiation.
Article 6
Evidence
6.1 All interested parties in an anti-dumping investigation shall be given notice of the information which the authorities require and ample opportunity to present in writing all evidence which they consider relevant in respect of the investigation in question.
Exporters or foreign producers receiving questionnaires used in an anti-dumping investigation shall be given at least 30 days for reply ( 43 ). Due consideration should be given to any request for an extension of the 30-day period and, upon cause shown, such an extension should be granted whenever practicable.
Subject to the requirement to protect confidential information, evidence presented in writing by one interested party shall be made available promptly to other interested parties participating in the investigation.
As soon as an investigation has been initiated, the authorities shall provide the full text of the written application received under paragraph 1 of Article 5 to the known exporters ( 44 ) and to the authorities of the exporting Member and shall make it available, upon request, to other interested parties involved. Due regard shall be paid to the requirement for the protection of confidential information, as provided for in paragraph 5.
6.2 Throughout the anti-dumping investigation all interested parties shall have a full opportunity for the defence of their interests. To this end, the authorities shall, on request, provide opportunities for all interested parties to meet those parties with adverse interests, so that opposing views may be presented and rebuttal arguments offered. Provision of such opportunities must take account of the need to preserve confidentiality and of the convenience to the parties. There shall be no obligation on any party to attend a meeting, and failure to do so shall not be prejudicial to that party's case. Interested parties shall also have the right, on justification, to present other information orally.
6.3 Oral information provided under paragraph 2 shall be taken into account by the authorities only in so far as it is subsequently reproduced in writing and made available to other interested parties, as provided for in subparagraph 1.2.
6.4 The authorities shall whenever practicable provide timely opportunities for all interested parties to see all information that is relevant to the presentation of their cases, that is not confidential as defined in paragraph 5, and that is used by the authorities in an anti-dumping investigation, and to prepare presentations on the basis of this information.
6.5 Any information which is by nature confidential (for example, because its disclosure would be of significant competitive advantage to a competitor or because its disclosure would have a significantly adverse effect upon a person supplying the information or upon a person from whom that person acquired the information), or which is provided on a confidential basis by parties to an investigation shall, upon good cause shown, be treated as such by the authorities. Such information shall not be disclosed without specific permission of the party submitting it ( 45 ).
The authorities shall require interested parties providing confidential information to furnish non-confidential summaries thereof. These summaries shall be in sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence. In exceptional circumstances, such parties may indicate that such information is not susceptible of summary. In such exceptional circumstances, a statement of the reasons why summarization is not possible must be provided.
If the authorities find that a request for confidentiality is not warranted and if the supplier of the information is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, the authorities may disregard such information unless it can be demonstrated to their satisfaction from appropriate sources that the information is correct ( 46 ).
6.6 Except in circumstances provided for in paragraph 8, the authorities shall during the course of an investigation satisfy themselves as to the accuracy of the information supplied by interested parties upon which their findings are based.
6.7 In order to verify information provided or to obtain further details, the authorities may carry out investigations in the territory of other Members as required, provided they obtain the agreement of the firms concerned and notify the representatives of the government of the Member in question, and unless that Member objects to the investigation. The procedures described in Annex I shall apply to investigations carried out in the territory of other Members. Subject to the requirement to protect confidential information, the authorities shall make the results of any such investigations available, or shall provide disclosure thereof pursuant to paragraph 9, to the firms to which they pertain and may make such results available to the applicants.
6.8 In cases in which any interested party refuses access to, or otherwise does not provide, necessary information within a reasonable period or significantly impedes the investigation, preliminary and final determinations, affirmative or negative, may be made on the basis of the facts available. The provisions of Annex II shall be observed in the application of this paragraph.
6.9 The authorities shall, before a final determination is made, inform all interested parties of the essential facts under consideration which form the basis for the decision whether to apply definitive measures. Such disclosure should take place in sufficient time for the parties to defend their interests.
6.10 The authorities shall, as a rule, determine an individual margin of dumping for each known exporter or producer concerned of the product under investigation. In cases where the number of exporters, producers, importers or types of products involved is so large as to make such a determination impracticable, the authorities may limit their examination either to a reasonable number of interested parties or products by using samples which are statistically valid on the basis of information available to the authorities at the time of the selection, or to the largest percentage of the volume of the exports from the country in question which can reasonably be investigated.
Any selection of exporters, producers, importers or types of products made under this paragraph shall preferably be chosen in consultation with and with the consent of the exporters, producers or importers concerned.
In cases where the authorities have limited their examination, as provided for in this paragraph, they shall nevertheless determine an individual margin of dumping for any exporter or producer not initially selected who submits the necessary information in time for that information to be considered during the course of the investigation, except where the number of exporters or producers is so large that individual examinations would be unduly burdensome to the authorities and prevent the timely completion of the investigation. Voluntary responses shall not be discouraged.
6.11 For the purposes of this Agreement, ‘interested parties’ shall include:
an exporter or foreign producer or the importer of a product subject to investigation, or a trade or business association a majority of the members of which are producers, exporters or importers of such product;
the government of the exporting Member; and
a producer of the like product in the importing Member or a trade and business assocition a majority of the members of which produce the like product in the territory of the importing Member.
This list shall not preclude Members from allowing domestic or foreign parties other than those mentioned above to be included as interested parties.
6.12 The authorities shall provide opportunities for industrial users of the product under investigation, and for representative consumer organizations in cases where the product is commonly sold at the retail level, to provide information which is relevant to the investigation regarding dumping, injury and causality.
6.13 The authorities shall take due account of any difficulties experienced by interested parties, in particular small companies, in supplying information requested, and shall provide any assistance practicable.
6.14 The procedures set out above are not intended to prevent the authorities of a Member from proceeding expeditiously with regard to initiating an investigation, reaching preliminary or final determinations, whether affirmative or negative, or from applying provisional or final measures, in accordance with relevant provisions of this Agreement.
Article 7
Provisional Measures
7.1 Provisional measures may be applied only if:
an investigation has been initiated in accordance with the provisions of Article 5, a public notice has been given to that effect and interested parties have been given adequate opportunities to submit information and make comments;
a preliminary affirmative determination has been made of dumping and consequent injury to a domestic industry; and
the authorities concerned judge such measures necessary to prevent injury being caused during the investigation.
7.2 Provisional measures may take the form of a provisional duty or, preferably, a security — by cash deposit or bond — equal to the amount of the anti-dumping duty provisionally estimated, being not greater than the provisionally estimated margin of dumping. Withholding of appraisement is an appropriate provisional measure, provided that the normal duty and the estimated amount of the anti-dumping duty be indicated and as long as the withholding of appraisement is subject to the same conditions as other provisional measures.
7.3 Provisional measures shall not be applied sooner than 60 days from the date of initiation of the investigation.
7.4 The application of provisional measures shall be limited to as short a period as possible, not exceeding four months or, on decision of the authorities concerned, upon request by exporters representing a significant percentage of the trade involved, to a period not exceeding six months. When authorities, in the course of an investigation, examine whether a duty lower than the margin of dumping would be sufficient to remove injury, these periods may be six and nine months, respectively.
7.5 The relevant provisions of Article 9 shall be followed in the application of provisional measures.
Article 8
Price Undertakings
8.1 Proceedings may ( 47 ) be suspended or terminated without the imposition of provisional measures or anti-dumping duties upon receipt of satisfactory voluntary undertakings from any exporter to revise its prices or to cease exports to the area in question at dumped prices so that the authorities are satisfied that the injurious effect of the dumping is eliminated. Price increases under such undertakings shall not be higher than necessary to eliminate the margin of dumping. It is desirable that the price increases be less than the margin of dumping if such increases would be adequate to remove the injury to the domestic industry.
8.2 Price undertakings shall not be sought or accepted from exporters unless the authorities of the importing Member have made a preliminary affirmative determination of dumping and injury caused by such dumping.
8.3 Undertakings offered need not be accepted if the authorities consider their acceptance impractical, for example, if the number of actual or potential exporters is too great, or for other reasons, including reasons of general policy. Should the case arise and where practicable, the authorities shall provide to the exporter the reasons which have led them to consider acceptance of an undertaking as inappropriate, and shall, to the extent possible, give the exporter an opportunity to make comments thereon.
8.4 If an undertaking is accepted, the investigation of dumping and injury shall nevertheless be completed if the exporter so desires or the authorities so decide. In such a case, if a negative determination of dumping or injury is made, the undertaking shall automatically lapse, except in cases where such a determination is due in large part to the existence of a price undertaking. In such cases, the authorities may require that an undertaking be maintained for a reasonable period consistent with the provisions of this Agreement. In the event that an affirmative determination of dumping and injury is made, the undertaking shall continue consistent with its terms and the provisions of this Agreement.
8.5 Price undertakings may be suggested by the authorities of the importing Member, but no exporter shall be forced to enter into such undertakings. The fact that exporters do not offer such undertakings, or do not accept an invitation to do so, shall in no way prejudice the consideration of the case. However, the authorities are free to determine that a threat of injury is more likely to be realized if the dumped imports continue.
8.6 Authorities of an importing Member may require any exporter from whom an undertaking has been accepted to provide periodically information relevant to the fulfilment of such an undertaking and to permit verification of pertinent data. In case of violation of an undertaking, the authorities of the importing Member may take, under this Agreement in conformity with its provisions, expeditious actions which may constitute immediate application of provisional measures using the best information available. In such cases, definitive duties may be levied in accordance with this Agreement on products entered for consumption not more than 90 days before the application of such provisional measures, except that any such retroactive assessment shall not apply to imports entered before the violation of the undertaking.
Article 9
Imposition and Collection of Anti-Dumping Duties
9.1 The decision whether or not to impose an anti-dumping duty in cases where all requirements for the imposition have been fulfilled, and the decision whether the amount of the anti-dumping duty to be imposed shall be the full margin of dumping or less, are decisions to be made by the authorities of the importing Member. It is desirable that the imposition be permissive in the territory of all Members, and that the duty be less than the margin if such lesser duty would be adequate to remove the injury to the domestic industry.
9.2 When an anti-dumping duty is imposed in respect of any product, such anti-dumping duty shall be collected in the appropriate amounts in each case, on a non-discriminatory basis on imports of such product from all sources found to be dumped and causing injury, except as to imports from those sources from which price undertakings under the terms of this Agreement have been accepted. The authorities shall name the supplier or suppliers of the product concerned. If, however, several suppliers from the same country are involved, and it is impracticable to name all these suppliers, the authorities may name the supplying country concerned. If several suppliers from more than one country are involved, the authorities may name either all the suppliers involved, or, if this is impracticable, all the supplying countries involved.
9.3 The amount of the anti-dumping duty shall not exceed the margin of dumping as established under Article 2.
When the amount of the anti-dumping duty is assessed on a retrospective basis, the determination of the final liability for payment of anti-dumping duties shall take place as soon as possible, normally within 12 months, and in no case more than 18 months, after the date on which a request for a final assessment of the amount of the anti-dumping duty has been made ( 48 ). Any refund shall be made promptly and normally in not more than 90 days following the determination of final liability made pursuant to this sub-paragraph. In any case, where a refund is not made within 90 days, the authorities shall provide an explanation if so requested.
When the amount of the anti-dumping duty is assessed on a prospective basis, provision shall be made for a prompt refund, upon request, of any duty paid in excess of the margin of dumping. A refund of any such duty paid in excess of the actual margin of dumping shall normally take place within 12 months, and in no case more than 18 months, after the date on which a request for a refund, duly supported by evidence, has been made by an importer of the product subject to the anti-dumping duty. The refund authorized should normally be made within 90 days of the above-noted decision.
In determining whether and to what extent a reimbursement should be made when the export price is constructed in accordance with paragraph 3 of Article 2, authorities should take account of any change in normal value, any change in costs incurred between importation and resale, and any movement in the resale price which is duly reflected in subsequent selling prices, and should calculate the export price with no deduction for the amount of anti-dumping duties paid when conclusive evidence of the above is provided.
9.4 When the authorities have limited their examination in accordance with the second sentence of paragraph 10 of Article 6, any anti-dumping duty applied to imports from exporters or producers not included in the examination shall not exceed:
the weighted average margin of dumping established with respect to the selected exporters or producers or
where the liability for payment of anti-dumping duties is calculated on the basis of a prospective normal value, the difference between the weighted average normal value of the selected exporters or producers and the export prices of exporters or producers not individually examined,
provided that the authorities shall disregard for the purpose of this paragraph any zero and de minimis margins and margins established under the circumstances referred to in paragraph 8 of Article 6. The authorities shall apply individual duties or normal values to imports from any exporter or producer not included in the examination who has provided the necessary information during the course of the investigation, as provided for in subparagraph 10.2 of Article 6.
9.5 If a product is subject to anti-dumping duties in an importing Member, the authorities shall promptly carry out a review for the purpose of determining individual margins of dumping for any exporters or producers in the exporting country in question who have not exported the product to the importing Member during the period of investigation, provided that these exporters or producers can show that they are not related to any of the exporters or producers in the exporting country who are subject to the anti-dumping duties on the product. Such a review shall be initiated and carried out on an accelerated basis, compared to normal duty assessment and review proceedings in the importing Member. No anti-dumping duties shall be levied on imports from such exporters or producers while the review is being carried out. The authorities may, however, withhold appraisement and/or request guarantees to ensure that, should such a review result in a determination of dumping in respect of such producers or exporters, anti-dumping duties can be levied retroactively to the date of the initiation of the review.
Article 10
Retroactivity
10.1 Provisional measures and anti-dumping duties shall only be applied to products which enter for consumption after the time when the decision taken under paragraph 1 of Article 7 and paragraph 1 of Article 9, respectively, enters into force, subject to the exceptions set out in this Article.
10.2 Where a final determination of injury (but not of a threat thereof or of a material retardation of the establishment of an industry) is made or, in the case of a final determination of a threat of injury, where the effect of the dumped imports would, in the absence of the provisional measures, have led to a determination of injury, anti-dumping duties may be levied retroactively for the period for which provisional measures, if any, have been applied.
10.3 If the definitive anti-dumping duty is higher than the provisional duty paid or payable, or the amount estimated for the purpose of the security, the difference shall not be collected. If the definitive duty is lower than the provisional duty paid or payable, or the amount estimated for the purpose of the security, the difference shall be reimbursed or the duty recalculated, as the case may be.
10.4 Except as provided in paragraph 2, where a determination of threat of injury or material retardation is made (but no injury has yet occurred) a definitive anti-dumping duty may be imposed only from the date of the determination of threat of injury or material retardation, and any cash deposit made during the period of the application of provisional measures shall be refunded and any bonds released in an expeditious manner.
10.5 Where a final determination is negative, any cash deposit made during the period of the application of provisional measures shall be refunded and any bonds released in an expeditious manner.
10.6 A definitive anti-dumping duty may be levied on products which were entered for consumption not more than 90 days prior to the date of application of provisional measures, when the authorities determine for the dumped product in question that:
there is a history of dumping which caused injury or that the importer was, or should have been, aware that the exporter practises dumping and that such dumping would cause injury, and
the injury is caused by massive dumped imports of a product in a relatively short time which in light of the timing and the volume of the dumped imports and other circumstances (such as a rapid build-up of inventories of the imported product) is likely to seriously undermine the remedial effect of the definitive anti-dumping duty to be applied, provided that the importers concerned have been given an opportunity to comment.
10.7 The authorities may, after initiating an investigation, take such measures as the withholding of appraisement or assessment as may be necessary to collect anti-dumping duties retroactively, as provided for in paragraph 6, once they have sufficient evidence that the conditions set forth in that paragraph are satisfied.
10.8 No duties shall be levied retroactively pursuant to paragraph 6 on products entered for consumption prior to the date of initiation of the investigation.
Article 11
Duration and Review of Anti-Dumping Duties and Price Undertakings
11.1 An anti-dumping duty shall remain in force only as long as and to the extent necessary to counteract dumping which is causing injury.
11.2 The authorities shall review the need for the continued imposition of the duty, where warranted, on their own initiative or, provided that a reasonable period of time has elapsed since the imposition of the definitive anti-dumping duty, upon request by any interested party which submits positive information substantiating the need for a review ( 49 ). Interested parties shall have the right to request the authorities to examine whether the continued imposition of the duty is necessary to offset dumping, whether the injury would be likely to continue or recur if the duty were removed or varied, or both. If, as a result of the review under this paragraph, the authorities determine that the anti-dumping duty is no longer warranted, it shall be terminated immediately.
11.3 Notwithstanding the provisions of paragraphs 1 and 2, any definitive anti-dumping duty shall be terminated on a date not later than five years from its imposition (or from the date of the most recent review under paragraph 2 if that review has covered both dumping and injury, or under this paragraph), unless the authorities determine, in a review initiated before that date on their own initiative or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable period of time prior to that date, that the expiry of the duty would be likely to lead to continuation or recurrence of dumping and injury ( 50 ). The duty may remain in force pending the outcome of such a review.
11.4 The provisions of Article 6 regarding evidence and procedure shall apply to any review carried out under this Article. Any such review shall be carried out expeditiously and shall normally be concluded within 12 months of the date of initiation of the review.
11.5 The provisions of this Article shall apply mutatis mutandis to price undertakings accepted under Article 8.
Article 12
Public Notice and Explanation of Determinations
12.1 When the authorities are satisfied that there is sufficient evidence to justify the initiation of an anti-dumping investigation pursuant to Article 5, the Member or Members the products of which are subject to such investigation and other interested parties known to the investigating authorities to have an interest therein shall be notified and a public notice shall be given.
A public notice of the initiation of an investigation shall contain, or otherwise make available through a separate report ( 51 ), adequate information on the following:
the name of the exporting country or countries and the product involved;
the date of initiation of the investigation;
the basis on which dumping is alleged in the application;
a summary of the factors on which the allegation of injury is based;
the address to which representations by interested parties should be directed;
the time-limits allowed to interested parties for making their views known.
12.2 Public notice shall be given of any preliminary or final determination, whether affirmative or negative, of any decision to accept an undertaking pursuant to Article 8, of the termination of such an undertaking, and of the termination of a definitive anti-dumping duty. Each such notice shall set forth, or otherwise make available through a separate report, in sufficient detail the findings and conclusions reached on all issues of fact and law considered material by the investigating authorities. All such notices and reports shall be forwarded to the Member or Members the products of which are subject to such determination or undertaking and to other interested parties known to have an interest therein.
A public notice of the imposition of provisional measures shall set forth, or otherwise make available through a separate report, sufficiently detailed explanations for the preliminary determinations on dumping and injury and shall refer to the matters of fact and law which have led to arguments being accepted or rejected. Such a notice or report shall, due regard being paid to the requirement for the protection of confidential information, contain in particular:
the names of the suppliers, or when this is impracticable, the supplying countries involved;
a description of the product which is sufficient for customs purposes;
the margins of dumping established and a full explanation of the reasons for the methodology used in the establishment and comparison of the export price and the normal value under Article 2;
considerations relevant to the injury determination as set out in Article 3;
the main reasons leading to determination.
A public notice of conclusion or suspension of an investigation in the case of an affirmative determination providing for the imposition of a definitive duty or the acceptance of a price undertaking shall contain, or otherwise make available through a separate report, all relevant information on the matters of fact and law and reasons which have led to the imposition of final measures or the acceptance of a price undertaking, due regard being paid to the requirement for the protection of confidential information. In particular, the notice or report shall contain the information described in subparagraph 2.1, as well as the reasons for the acceptance or rejection of relevant arguments or claims made by the exporters and importers, and the basis for any decision made under subparagraph 10.2 of Article 6.
A public notice of the termination or suspension of an investigation following the acceptance of an undertaking pursuant to Article 8 shall include, or otherwise make available through a separate report, the non-confidential part of this undertaking.
12.3 The provisions of this Article shall apply mutatis mutandis to the initiation and completion of reviews pursuant to Article 11 and to decisions under Article 10 to apply duties retroactively.
Article 13
Judicial Review
Each Member whose national legislation contains provisions on anti-dumping measures shall maintain judicial, arbitral or administrative tribunals or procedures for the purpose inter alia of the prompt review of administrative actions to final determinations and reviews of determinations within the meaning of Article 11. Such tribunals or procedures shall be independent of the authorities responsible for the determination or review in question.
Article 14
Anti-Dumping Action on Behalf of a Third Country
14.1 An application for anti-dumping action on behalf of a third country shall be made by the authorities of the third country requesting action.
14.2 Such an application shall be supported by price information to show that the imports are being dumped and by detailed information to show that the alleged dumping is causing injury to the domestic industry concerned in the third country. The government of the third country shall afford all assistance to the authorities of the importing country to obtain any further information which the latter may require.
14.3 In considering such an application, the authorities of the importing country shall consider the effects of the alleged dumping on the industry concerned as a whole in the third country; that is to say, the injury shall not be assessed in relation only to the effect of the alleged dumping on the industry's exports to the importing country or even on the industry's total exports.
14.4 The decision whether or not to proceed with a case shall rest with the importing country. If the importing country decides that it is prepared to take action, the initiation of the approach to the Council for Trade in Goods seeking its approval for such action shall rest with the importing country.
Article 15
Developing Country Members
It is recognized that special regard must be given by developed country Members to the special situation of developing country Members when considering the application of anti-dumping measures under this Agreement. Possibilities of constructive remedies provided for by this Agreement shall be explored before applying anti-dumping duties where they would affect the essential interests of developing country Members.
PART II
Article 16
Committee on Anti-Dumping Practices
16.1 There is hereby established a Committee on Anti-Dumping Practices (referred to in this Agreement as the ‘Committee’) composed of representatives from each of the Members. The Committee shall elect its own Chairman and shall meet not less than twice a year and otherwise as envisaged by relevant provisions of this Agreement at the request of any Member. The Committee shall carry out responsibilities as assigned to it under this Agreement or by the Members and it shall afford Members the opportunity of consulting on any matters relating to the operation of the Agreement or the furtherance of its objectives. The WTO Secretariat shall act as the secretariat to the Committee.
16.2 The Committee may set up subsidiary bodies as appropriate.
16.3 In carrying out their functions, the Committee and any subsidiary bodies may consult with and seek information from any source they deem appropriate. However, before the Committee or a subsidiary body seeks such information from a source within the jurisdiction of a Member, it shall inform the Member involved. It shall obtain the consent of the Member and any firm to be consulted.
16.4 Members shall report without delay to the Committee all preliminary or final anti-dumping actions taken. Such reports shall be available in the Secretariat for inspection by other Members. Members shall also submit, on a semi-annual basis, reports of any anti-dumping actions taken within the preceding six months. The semi-annual reports shall be submitted on an agreed standard form.
16.5 Each Member shall notify the Committee (a) which of its authorities are competent to initiate and conduct investigations referred to in Article 5 and (b) its domestic procedures governing the initiation and conduct of such investigations.
Article 17
Consultation and Dispute Settlement
17.1 Except as otherwise provided herein, the Dispute Settlement Understanding is applicable to consultations and the settlement of disputes under this Agreement.
17.2 Each Member shall afford sympathetic consideration to, and shall afford adequate opportunity for consultation regarding, representations made by another Member with respect to any matter affecting the operation of this Agreement.
17.3 If any Member considers that any benefit accruing to it, directly or indirectly, under this Agreement is being nullified or impaired, or that the achievement of any objective is being impeded, by another Member or Members, it may, with a view to reaching a mutually satisfactory resolution of the matter, request in writing consultations with the Member or Members in question. Each Member shall afford sympathetic consideration to any request from another Member for consultation.
17.4 If the Member that requested consultations considers that the consultations pursuant to paragraph 3 have failed to achieve a mutually agreed solution, and if final action has been taken by the administering authorities of the importing Member to levy definitive anti-dumping duties or to accept price undertakings, it may refer the matter to the Dispute Settlement Body (‘DSB’). When a provisional measure has a significant impact and the Member that requested consultations considers that the measure was taken contrary to the provisions of paragraph 1 of Article 7, that Member may also refer such matter to the DSB.
17.5 The DSB shall, at the request of the complaining party, establish a panel to examine the matter based upon:
a written statement of the Member making the request indicating how a benefit accruing to it, directly or indirectly, under this Agreement has been nullified or impaired, or that the achieving of the objectives of the Agreement is being impeded, and
the facts made available in conformity with appropriate domestic procedures to the authorities of the importing Member.
17.6 In examining the matter referred to in paragraph 5:
in its assessment of the facts of the matter, the panel shall determine whether the authorities' establishment of the facts was proper and whether their evaluation of those facts was unbiased and objective. If the establishment of the facts was proper and the evaluation was unbiased and objective, even though the panel might have reached a different conclusion, the evaluation shall not be overturned;
the panel shall interpret the relevant provisions of the Agreement in accordance with customary rules of interpretation of public international law. Where the panel finds that a relevant provision of the Agreement admits of more than one permissible interpretation, the panel shall find the authorities' measure to be in conformity with the Agreement if it rests upon one of those permissible interpretations.
17.7 Confidential information provided to the panel shall not be disclosed without formal authorization from the person, body or authority providing such information. Where such information is requested from the panel but release of such information by the panel is not authorized, a non-confidential summary of the information, authorized by the person, body or authority providing the information, shall be provided.
PART III
Article 18
Final Provisions
18.1 No specific action against dumping of exports form another Member can be taken except in accordance with the provisions of GATT 1994, as interpreted by this Agreement ( 52 ).
18.2 Reservations may not be entered in respect of any of the provisions of this Agreement without the consent of the other Members.
18.3 Subject to subparagraph 3.1 and 3.2, the provisions of this Agreement shall apply to investigations, and reviews of existing measures, initiated pursuant to applications which have been made on or after the date of entry into force for a Member of the WTO Agreement.
With respect to the calculation of margins of dumping in refund procedures under paragraph 3 of Article 9, the rules used in the most recent determination or review of dumping shall apply.
For the purposes of paragraph 3 of Article 11, existing anti-dumping measures shall be deemed to be imposed on a date not later than the date of entry into force for a Member of the WTO Agreement, except in cases in which the domestic legislation of a Member in force on that date already included a clause of the type provided for in that paragraph.
18.4 Each Member shall take all necessary steps, of a general or particular character, to ensure, not later than the date of entry into force of the WTO Agreement for it, the conformity of its laws, regulations and administrative procedures with the provisions of this Agreement as they may apply for the Member in question.
18.5 Each Member shall inform the Committee of any changes in its laws and regulations relevant to this Agreement and in the administration of such laws and regulations.
18.6 The Committee shall review annually the implementation and operation of this Agreement taking into account the objectives thereof. The Committee shall inform annually the Council for Trade in Goods of developments during the period covered by such reviews.
18.7 The Annexes to this Agreement constitute an integral part thereof.
ANNEX I
PROCEDURES FOR ON-THE-SPOT INVESTIGATIONS PURSUANT TO PARAGRAPH 7 OF ARTICLE 6
1. Upon initiation of an investigation, the authorities of the exporting Member and the firms known to be concerned should be informed of the intention to carry out on-the-sport investigations.
2. If in exceptional circumstances it is intended to include non-governmental experts in the investigating team, the firms and the authorities of the exporting Member should be so informed. Such non-governmental experts should be subject to effective sanctions for breach of confidentiality requirements.
3. It should be standard practice to obtain explicit agreement of the firms concerned in the exporting Member before the visit is finally scheduled.
4. As soon as the agreement of the firms concerned has been obtained, the investigating authorities should notify the authorities of the exporting Member of the names and addresses of the firms to be visited and the dates agreed.
5. Sufficient advance notice should be given to the firms in question before the visit is made.
6. Visits to explain the questionnaire should only be made at the request of an exporting firm. Such a visit may only be made if (a) the authorities of the importing Member notify the representatives of the Member in question and (b) the latter do not object to the visit.
7. As the main purpose of the on-the-spot investigation is to verify information provided or to obtain further details, it should be carried out after the response to the questionnaire has been received unless the firm agrees to the contrary and the government of the exporting Member is informed by the investigating authorities of the anticipated visit and does not object to it; further, it should be standard practice prior to the visit to advise the firms concerned of the general nature of the information to be verified and of any further information which needs to be provided, though this should not preclude requests to be made on the spot for further details to be provided in the light of information obtained.
8. Enquiries or questions put by the authorities or firms of the exporting Members and essential to a successful on-the-sport investigation should, whenever possible, be answered before the visit is made.
ANNEX II
BEST INFORMATION AVAILABLE IN TERMS OF PARAGRAPH 8 OF ARTICLE 6
1. As soon as possible after the initiation of the investigation, the investigating authorities should specify in detail the information required from any interested party, and the manner in which that information should be structured by the interested party in its response. The authorities should also ensure that the party is aware that if information is not supplied within a reasonable time, the authorities will be free to make determinations on the basis of the facts available, including those contained in the application for the initiation of the investigation by the domestic industry.
2. The authorities may also request that an interested party provide its response in a particular medium (e.g. computer tape) or computer language. Where such a request is made, the authorities should consider the reasonable ability of the interested party to respond in the preferred medium or computer language, and should not request the party to use for its response a computer system other than that used by the party. The authority should not maintain a request for a computerized response if the interested party does not maintain computerized accounts and if presenting the response as requested would result in an unreasonable extra burden on the interested party, e.g. it would entail unreasonable additional cost and trouble. The authorities should not maintain a request for a response in a particular medium or computer language if the interested party does not maintain its computerized accounts in such medium or computer language and if presenting the response as requested would result in an unreasonable extra burden on the interested party, e.g. it would entail unreasonable additional cost and trouble.
3. All information which is verifiable, which is appropriately submitted so that it can be used in the investigation without undue difficulties, which is supplied in a timely fashion, and, where applicable, which is supplied in a medium or computer language requested by the authorities, should be taken into account when determinations are made. If a party does not respond in the preferred medium or computer language but the authorities find that the circumstances set out in paragraph 2 have been satisfied, the failure to respond in the preferred medium or computer language should not be considered to significantly impede the investigation.
4. Where the authorities do not have the ability to process information if provided in a particular medium (e.g. computer tape), the information should be supplied in the form of written material or any other form acceptable to the authorities.
5. Even though the information provided may not be ideal in all respects, this should not justify the authorities from disregarding it, provided the interested party has acted to the best of its ability.
6. If evidence or information is not accepted, the supplying party should be informed forthwith of the reasons therefor, and should have an opportunity to provide further explanations within a reasonable period, due account being taken of the time-limits of the investigation. If the explanations are considered by the authorities as not being satisfactory, the reasons for the rejection of such evidence or information should be given in any published determinations.
7. If the authorities have to base their findings, including those with respect to normal value, on information from a secondary source, including the information supplied in the application for the initiation of the investigation, they should do so with special circumspection. In such cases, the authorities should, where practicable, check the information from other independent sources at their disposal, such as published price lists, official import statistics and customs returns, and from the information obtained from other interested parties during the investigation. It is clear, however, that if an interested party does not cooperate and thus relevant information is being withheld from the authorities, this situation could lead to a result which is less favourable to the party than if the party did cooperate.
AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
GENERAL INTRODUCTORY COMMENTARY
1. The primary basis for customs value under this Agreement is ‘transaction value’ as defined in Article 1. Article 1 is to be read together with Article 8 which provides inter alia for adjustments to the price actually paid or payable in cases where certain specific elements which are considered to form a part of the value for customs purposes are incurred by the buyer but are not included in the price actually paid or payable for the imported goods. Article 8 also provides for the inclusion in the transaction value of certain considerations which may pass from the buyer to the seller in the form of specified goods or services rather than in the form of money. Articles 2 through 7 provide methods of determining the customs value whenever it cannot be determined under the provisions of Article 1.
2. Where the customs value cannot be determined under the provisions of Article 1 there should normally be a process of consultation between the customs administration and importer with a view to arriving at a basis of value under the provisions of Article 2 or 3. It may occur, for example, that the importer has information about the customs value of identical or similar imported goods which is not immediately available to the customs administration in the port of importation. On the other hand, the customs administration may have information about the customs value of identical or similar imported goods which is not readily available to the importer. A process of consultation between the two parties will enable information to be exchanged, subject to the requirements of commercial confidentiality, with a view to determining a proper basis of value for customs purposes.
3. Articles 5 and 6 provide two bases for determining the customs value where it cannot be determined on the basis of the transaction value of the imported goods or of identical or similar imported goods. Under paragraph 1 of Article 5 the customs value is determined on the basis of the price at which the goods are sold in the conditions as imported to an unrelated buyer in the country of importation. The importer also has the right to have goods. which are further processed after importation valued under the provisions of Article 5 if the importer so requests. Under Article 6 the customs value is determined on the basis of the computed value. Both these methods present certain difficulties and because of this the importer is given the right, under the provisions of Article 4, to choose the order of application of the two methods.
4. Article 7 sets out how to determine the customs value in cases where it cannot be determined under the provisions of any of the preceding Articles.
MEMBERS,
Having regard to the Multilateral Trade Negotiations;
Desiring to further the objectives of GATT 1994 and to secure additional benefits for the international trade of developing countries;
Recognizing the importance of the provisions of Article VII of GATT 1994 and desiring to elaborate rules for their application in order to provide greater uniformity and certainty in their implementation;
Recognizing the need for a fair, uniform and neutral system for the valuation of goods for customs purposes that precludes the use of arbitrary or fictitious customs values;
Recognizing that the basis for valuation of goods for customs purposes should, to the greatest extent possible, be the transaction value of the goods being valued;
Recognizing that customs value should be based on simple and equitable criteria consistent with commercial practices and that valuation procedures should be of general application without distinction between sources of supply;
Recognizing that valuation procedures should not be used to combat dumping;
HEREBY AGREE AS FOLLOWS:
PART I
RULES ON CUSTOMS VALUATION
Article 1
The customs value of imported goods shall be the transaction value, that is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8, provided:
that there are no restrictions as to the disposition or use of the goods by the buyer other than restrictions which:
are imposed or required by law or by the public authorities in the country of importation;
limit the geographical area in which the goods may be resold; or
do not substantially affect the value of the goods;
that the sale or price is not subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued;
that no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with the provisions of Article 8; and
that the buyer and seller are not related, or where the buyer and seller are related, that the transaction value is acceptable for customs purposes under the provisions of paragraph 2.
In determining whether the transaction value is acceptable for the purposes of paragraph 1, the fact that the buyer and the seller are related within the meaning of Article 15 shall not in itself be grounds for regarding the transaction value as unacceptable. In such case the circumstances surrounding the sale shall be examined and the transaction value shall be accepted provided that the relationship did not influence the price. If, in the light of information provided by the importer or otherwise, the customs administration has grounds for considering that the relationship influenced the price, it shall communicate its grounds to the importer and the importer shall be given a reasonable opportunity to respond. If the importer so requests, the communication of the grounds shall be in writing.
In a sale between related persons, the transaction value shall be accepted and the goods valued in accordance with the provisions of paragraph 1 whenever the importer demonstrates that such value closely approximates to one of the following occurring at or about the same time:
the transaction value in sales to unrelated buyers of identical or similar goods for export to the same country of importation;
the customs value of identical or similar goods as determined under the provisions of Article 5;
the customs value of identical or similar goods as determined under the provisions of Article 6;
In applying the foregoing tests, due account shall be taken of demonstrated differences in commercial levels, quantity levels, the elements enumerated in Article 8 and costs incurred by the seller in sales in which the seller and the buyer are not related that are not incurred by the seller in sales in which the seller and the buyer are related.
The tests set forth in paragraph 20(b) are to be used at the initiative of the importer and only for comparison purposes. Substitute values may not be established under the provisions of paragraph 2(b).
Article 2
If the customs value of the imported goods cannot be determined under the provisions of Article 1, the customs value shall be the transaction value of identical goods sold for export to the same country of importation and exported at or about the same time as the goods being valued.
In applying this Article, the transaction value of identical goods in a sale at the same commercial level and in substantially the same quantity as the goods being valued shall be used to determine the customs value. Where no such sale is found, the transaction value of identical goods sold at a different commercial level and/or in different quantitities, adjusted to take account of differences attributable to commercial level and/or to quantity, shall be used, provided that such adjustments can be made on the basis of demonstrated evidence which clearly establishes the reasonableness and accuracy of the adjustment, whether the adjustment leads to an increase or a decrease in the value.
Article 3
If the customs value of the imported goods cannot be determined under the provisions of Articles 1 and 2, the customs value shall be the transaction value of similar goods sold for export to the same country of importation and exported at or about the same time as the goods being valued.
In applying this Article, the transaction value of similar goods in a sale at the same commercial level and in substantially the same quantity as the goods being valued shall be used to determine the customs value. Where no such sale is found, the transaction value of similar goods sold at a different commercial level and/or in different quantities, adjusted to take account of differences attributable to commercial level and/or to quantity, shall be used, provided that such adjustments can be made on the basis of demonstrated evidence which clearly establishes the reasonableness and accuracy of the adjustment, whether the adjustment leads to an increase or a decrease in the value.
Article 4
If the customs value of the imported goods cannot be determined under the provisions of Articles 1, 2 and 3, the customs value shall be determined under the provisions of Article 5 or, when the customs value cannot be determined under that Article, under the provisions of Article 6 except that, at the request of the importer, the order of application of Articles 5 and 6 shall be reversed.
Article 5
If the imported goods or identical or similar imported goods are sold in the country of importation in the condition as imported, the customs value of the imported goods under the provisions of this Article shall be based on the unit price at which the imported goods or identical or similar imported goods are so sold in the greatest aggregate quantity, at or about the time of the importation of the goods being valued, to persons who are not related to the persons from whom they buy such goods, subject to deductions for the following:
either the commissions usually paid or agreed to be paid or the additions usually made for profit and general expenses in connection with sales in such country of imported goods of the same class or kind;
the usual costs of transport and insurance and associated costs incurred within the country of importation;
where appropriate, the costs and charges referred to in paragraph 2 of Article 8; and
the customs duties and other national taxes payable in the country of importation by reason of the importation or sale of the goods.
If neither the imported goods nor identical nor similar imported goods are sold at or about the time of importation of the goods being valued, the customs value shall, subject otherwise to the provisions of paragraph l(a), be based on the unit price at which the imported goods or identical or similar imported goods are sold in the country of importation in the condition as imported at the earliest date after the importation of the goods being valued but before the expiration of 90 days after such importation.
Article 6
The customs value of imported goods under the provisions of this Article shall be based on a cumputed value. Computed value shall consist of the sum of:
the cost or value of materials and fabrication or other processing employed in producing the imported goods;
an amount for profit and general expenses equal to that usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the country of importation;
the cost or value of all other expenses necessary to reflect the valuation option chosen by the Member under paragraph 2 of Article 8.
Article 7
No customs value shall be determined under the provisions of this Article on the basis of:
the selling price in the country of importation of goods produced in such country;
a system which provides for the acceptance for customs purposes of the higher of two alternative values;
the price of goods on the domestic market of the country of exportation;
the cost of production other than computed values which have been determined for identical or similar goods in accordance with the provisions of Article 6;
the price of the goods for export to a country other than the country of importation;
minimum customs values; or
arbitrary or fictitious values.
Article 8
In determining the customs value under the provisions of Article 1, there shall be added to the price actually paid or payable for the imported goods:
the following, to the extent that they are incurred by the buyer but are not included in the price actually paid or payable for the goods:
commissions and brokerage, except buying commissions;
the cost of containers which are treated as being one for customs purposes with the goods in question;
the cost of packing whether for labour or materials;
the value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods, to the extent that such value has not been included in the price actually paid or payable:
materials, components, parts and similar items incorporated in the imported goods;
tools, dies, moulds and similar items used in the production of the imported goods;
materials consumed in the production of the imported goods;
engineering, development, artwork, design work, and plans and sketches undertaken elsewhere than in the country of importation and necessary for the production of the imported goods;
royalties and licence fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable;
the value of any part of the proceeds of any subsequent resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.
In framing its legislation, each Member shall provide for the inclusion in or the exclusion from the customs value, in whole or in part, of the following:
the cost of transport of the imported goods to the port or place of importation;
loading, unloading and handling charges associated with the transport of the imported goods to the port or place of importation; and
the cost of insurance.
Article 9
Article 10
All information which is by nature confidential or which is provided on a confidential basis for the purposes of customs valuation shall be treated as strictly confidential by the authorities concerned who shall not disclose it without the specific permission of the person or government providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.
Article 11
Article 12
Laws, regulations, judicial decisions and administrative rulings of general application giving effect to this Agreement shall be published in conformity with Article X of GATT 1994 by the country of importation concerned.
Article 13
If, in the course of determining the customs value of imported goods, it becomes necessary to delay the final determination of such customs value, the importer of the goods shall nevertheless be able to withdraw them from customs if, where so required, the importer provides sufficient guarantee in the form of a surety, a deposit or some other appropriate instrument, covering the ultimate payment of customs duties for which the goods may be liable. The legislation of each Member shall make provisions for such circumstances.
Article 14
The notes at Annex I to this Agreement form an integral part of this Agreement and the Articles of this Agreement are to be read and applied in conjunction with their respective notes. Annexes II and III also form an integral part of this Agreement.
Article 15
In this Agreement:
‘customs value of imported goods’ means the value of goods for the purposes of levying ad valorem duties of customs on imported goods;
‘country of importation’ means country or customs territory of importation; and
‘produced’ includes grown, manufactured and mined.
In this Agreement
‘identical goods’ means goods which are the same in all respects, including physical characteristics, quality and reputation. Minor differences in appearance would not preclude goods otherwise conforming to the definition from being regarded as identical;
‘similar goods’ means goods which, although not alike in all respects, have like characteristics and like component materials which enable them to perform the same functions and to be commercially interchangeable. The quality of the goods, their reputation and the existence of a trademark are among the factors to be considered in determining whether goods are similar;
the terms ‘identical goods’ and ‘similar goods’ do not include, as the case may be, goods which incorporate or reflect engineering, development, artwork, design work, and plans and sketches for which no adjustment has been made under paragraph l(b)(iv) of Article 8 because such elements were undertaken in the country of importation;
goods shall not be regarded as ‘identical goods’ or ‘similar goods’ unless they were produced in the same country as the goods being valued;
goods produced by a different person shall be taken into account only when there are no identical goods or similar goods, as the case may be, produced by the same person as the goods being valued.
For the purposes of this Agreement, persons shall be deemed to be related only if:
they are officers or directors of one another's businesses;
they are legally recognized partners in business;
they are employer and employee;
any person directly or indirectly owns, controls or holds 5 per cent or more of the outstanding voting stock or shares of both of them;
one of them directly or indirectly controls the other;
both of them are directly or indirectly controlled by a third person;
together they directly or indirectly control a third person; or
they are members of the same family.
Article 16
Upon written request, the importer shall have the right to an explanation in writing from the customs administration of the country of importation as to how the customs value of the importer's goods was determined.
Article 17
Nothing in this Agreement shall be construed as restricting or calling into question the rights of customs administrations to satisfy themselves as to the truth or accuracy of any statement, document or declaration presented for customs valuation purposes.
PART II
ADMINISTRATION, CONSULTATIONS AND DISPUTE SETTLEMENT
Article 18
Institutions
Article 19
Consultations and Dispute Settlement
PART III
SPECIAL AND DIFFERENTIAL TREATMENT
Article 20
PART IV
FINAL PROVISIONS
Article 21
Reservations
Reservations may not be entered in respect of any of the provisions of this Agreement without the consent of the other Members.
Article 22
National Legislation
Article 23
Review
The Committee shall review annually the implementation and operation of this Agreement taking into account the objectives thereof. The Committee shall annually inform the Council for Trade in Goods of developments during the period covered by such reviews.
Article 24
Secretariat
This Agreement shall be serviced by the WTO Secretariat except in regard to those responsibilities specifically assigned to the Technical Committee, which will be serviced by the CCC Secretariat.
ANNEX I
INTERPRETATIVE NOTES
General Note
Sequential application of Valuation Methods
1. Articles 1 through 7 define how the customs value of imported goods is to be determined under the provisions of this Agreement. The methods of valuation are set out in a sequential order of application. The primary method for customs valuation is defined in Article 1 and imported goods are to be valued in accordance with the provisions of this Article whenever the conditions prescribed therein are fulfilled.
2. Where the customs value cannot be determined under the provisions of Article 1, it is to be determined by proceeding sequentially through the succeeding Articles to the first such Article under which the customs value can be determined. Except as provided in Article 4, it is only when the customs value cannot be determined under the provisions of a particular Article that the provisions of the next Article in the sequence can be used.
3. If the importer does not request that the order of Articles 5 and 6 be reversed, the normal order of the sequence is to be followed. If the importer does so request but it then proves impossible to determine the customs value under the provisions of Article 6, the customs value is to be determined under the provisions of Article 5, if it can be so determined.
4. Where the customs value cannot be determined under the provisions of Articles 1 through 6 it is to be determined under the provisions of Article 7.
Use of Generally Accepted Accounting Principles
1. ‘Generally accepted accounting principles’ refers to the recognized consensus or substantial authoritative support within a country at a particular time as to which economic resources and obligations should be recorded as assets and liabilities, which changes in assets and liabilities should be recorded, how the assets and liabilities and changes in them should be measured, what information should be disclosed and how it should be disclosed, and which financial statements should be prepared. These standards may be broad guidelines of general application as well as detailed practices and procedures.
2. For the purposes of this Agreement, the customs administration of each Member shall utilize information prepared in a manner consistent with generally accepted accounting principles in the country which is appropriate for the Article in question. For example, the determination of usual profit and general expenses under the provisions of Article 5 would be carried out utilizing information prepared in a manner consistent with generally accepted accounting principles of the country of importation. On the other hand, the determination of usual profit and general expenses under the provisions of Article 6 would be carried out utilizing information prepared in a manner consistent with generally accepted accounting principles of the country of production. As a further example, the determination of an element provided for in paragraph l(b)(ii) of Article 8 undertaken in the country of importation would be carried out utilizing information in a manner consistent with the generally accepted accounting principles of that country.
Note to Article 1
Price Actually Paid or Payable
1. The price actually paid or payable is the total payment made or to be made by the buyer to or for the benefit of the seller for the imported goods. The payment need not necessarily take the form of a transfer of money. Payment may be made by way of letters of credit or negotiable instruments. Payment may be made directly or indirectly. An example of an indirect payment would be the settlement by the buyer, whether in whole or in part, of a debt owed by the seller.
2. Activities undertaken by the buyer on the buyer's own account, other than those for which an adjustment is provided in Article 8, are not considered to be an indirect payment to the seller, even though they might be regarded as of benefit to the seller. The costs of such activities shall not, therefore, be added to the price actually paid or payable in determining the customs value.
3. The customs Value shall not include the following charges or costs, provided that they are distinguished from the price actually paid or payable for the imported goods:
charges for construction, erection, assembly, maintenance or technical assistance, undertaken after importation on imported goods such as industrial plant, machinery or equipment;
the cost of transport after importation;
duties and taxes of the country of importation.
4. The price actually paid or payable refers to the price for the imported goods. Thus the flow of dividends or other payments from the buyer to the seller that do not relate to the imported goods are not part of the customs value.
Paragraph 1(a)(iii)
Among restrictions which would not render a price actually paid or payable unacceptable are restrictions which do not substantially affect the value of the goods. An example of such restrictions would be the case where a seller requires a buyer of automobiles not to sell or exhibit them prior to a fixed date which represents the beginning of a model year.
Paragraph l(b)
1. If the sale or price is subject to some condition or consideration for which a value cannot be determined with respect to the goods being valued, the transaction value shall not be acceptable for customs purposes. Some examples of this include:
the seller establishes the price of the imported goods on condition that the buyer will also buy other goods in specified quantities;
the price of the imported goods is dependent upon the price or prices at which the buyer of the imported goods sells other goods to the seller of the imported goods;
the price is established on the basis of a form of payment extraneous to the imported goods, such as where the imported goods are semi-finished goods which have been provided by the seller on condition that the seller will receive a specified quantity of the finished goods.
2. However, conditions or considerations relating to the production or marketing of the imported goods shall not result in rejection of the transaction value. For example, the fact that the buyer furnishes the seller with engineering and plans undertaken in the country of importation shall not result in rejection of the transaction value for the purposes of Article 1. Likewise, if the buyer undertakes on the buyer's own account, even though by agreement with the seller, activities relating to the marketing of the imported goods, the value of these activities is not part of the customs value nor shall such activities result in rejection of the transaction value.
Paragraph 2
1. Paragraphs 2(a) and 2(b) provide different means of establishing the acceptability of a transaction value.
2. Paragraph 2(a) provides that where the buyer and the seller are related, the circumstances surrounding the sale shall be examined and the transaction value shall be accepted as the customs value provided that the relationship did not influence the price. It is not intended that there should be an examination of the circumstances in all cases where the buyer and the seller are related. Such examination will only be required where there are doubts about the acceptability of the price. Where the customs administration have no doubts about the acceptability of the price, it should be accepted without requesting further information from the importer. For example, the customs administration may have previously examined the relationship, or it may already have detailed information concerning the buyer and the seller, and may already be satisfied from such examination or information that the relationship did not influence the price.
3. Where the customs administration is unable to accept the transaction value without further inquiry, it should give the importer an opportunity to supply such further detailed information as may be necessary to enable it to examine the circumstances surrounding the sale. In this context, the customs administration should be prepared to examine relevant aspects of the transaction, including the way in which the buyer and seller organize their commercial relations and the way in which the price in question was arrived at, in order to determine whether the relationship influenced the price. Where it can be shown that the buyer and seller, although related under the provisions of Article 15, buy from and sell to each other as if they were not related, this would demonstrate that the price had not been influenced by the relationship. As an example of this, if the price had been settled in a manner consistent with the normal pricing practices of the industry in question or with the way the seller settles prices for sales to buyers who are not related to the seller, this would demonstrate that the price had not been influenced by the relationship. As a further example, where it is shown that the price is adequate to ensure recovery of all costs plus a profit which is representative of the firm's overall profit realized over a representative period of time (e.g. on an annual basis) in sales of goods of the same class or kind, this would demonstrate that the price had not been influenced.
4. Paragraph 2(b) provides an opportunity for the importer to demonstrate that the transaction value closely approximates to a ‘test’ value previously accepted by the customs administration and is therefore acceptable under the provisions of Article 1. Where a test under paragraph 2(b) is met, it is not necessary to examine the question of influence under paragraph 2(a). If the customs administration has already sufficient information to be satisfied, without further detailed inquiries, that one of the tests provided in paragraph 2(b) has been met, there is no reason for it to require the importer to demonstrate that the test can be met. In paragraph 2(b) the term ‘unrelated buyers’ means buyers who are not related to the seller in any particular case.
Paragraph 2(b)
A number of factors must be taken into consideration in determining whether one value ‘closely approximates’ to another value. These factors include the nature of the imported goods, the nature of the industry itself, the season in which the goods are imported, and, whether the difference in values is commercially significant. Since these factors may vary from case to case, it would be impossible to apply a uniform standard such as a fixed percentage, in each case. For example, a small difference in value in a case involving one type of goods could be unacceptable while a large difference in a case involving another type of goods might be acceptable in determining whether the transaction value closely approximates to the ‘test’ values set forth in paragraph 2(b) of Article 1.
Note to Article 2
1. In applying Article 2, the customs administration shall, wherever possible, use a sale of identical goods at the same commercial level and in substantially the same quantities as the goods being valued. Where no such sale is found, a sale of identical goods that takes place under any one of the following three conditions may be used:
a sale at the same commercial level but in different quantities;
a sale at a different commercial level but in substantially the same-quantities; or
a sale at a different commercial level and in different quantities.
2. Having found a sale under any one of these three conditions adjustments will then be made, as the case may be, for:
quantity factors only;
commercial level factors only; or
both commercial level and quantity factors.
3. The expression ‘and/or’ allows the flexibility to use the sales and make the necessary adjustments in any one of the three conditions described above.
4. For the purposes of Article 2, the transaction value of identical imported goods means a customs value, adjusted as provided for in paragraphs l(b) and 2, which has already been accepted under Article 1.
5. A condition for adjustment because of different commercial levels or different quantities is that such adjustment, whether it leads to an increase or a decrease in the value, be made only on the basis of demonstrated evidence that clearly establishes the reasonableness and accuracy of the adjustments, e.g. valid price lists containing prices referring to different levels or different quantities. As an example of this, if the imported goods being valued consist of a shipment of 10 units and the only identical imported goods for which a transaction value exists involved a sale of 500 units, and it is recognized that the seller grants quantity discounts, the required adjustment may be accomplished by resorting to the seller's price list and using that price applicable to a sale of 10 units. This does not require that a sale had to have been made in quantities of 10 as long as the price list has been established as being bona fide through sales at other quantities. In the absence of such an objective measure, however, the determination of a customs value under the provisions of Article 2 is not appropriate.
Note to Article 3
1. In applying Article 3, the customs administration shall, wherever possible, use a sale of similar goods at the same commercial level and in substantially the same quantities as the goods being valued. Where no such sale is found, a sale of similar goods that takes place under any one of the following three conditions may be used:
a sale at the same commercial level but in different quantities;
a sale at a different commercial level but in substantially the same quantities; or
a sale at a different commercial level and in different quantities.
2. Having found a sale under any one of these three conditions adjustments will then be made, as the case may be, for:
quantity factors only;
commercial level factors only; or
both commercial level and quantity factors.
3. The expression ‘and/or’ allows the flexibility to use the sales and make the necessary adjustments in any one of the three conditions described above.
4. For the purpose of Article 3, the transaction value of similar imported goods means a customs value, adjusted as provided for in paragraphs l(b) and 2, which has already been accepted under Article 1.
5. A condition for adjustment because of different commercial levels or different quantities is that such adjustment, whether it leads to an increase or a decrease in the value, be made only on the basis of demonstrated evidence that clearly establishes the reasonableness and accuracy of the adjustment, e.g. valid price lists containing prices referring to different levels or different quantities. As an example of this, if the imported goods being valued consist of a shipment of 10 units and the only similar imported goods for which a transaction value exists involved a sale of 500 units, and it is recognized that the seller grants quantity discounts, the required adjustment may be accomplished by resorting to the seller's price list and using that price applicable to a sale of 10 units. This does not require that a sale had to have been made in quantities of 10 as long as the price list has been established as being bona fide through sales at other quantities. In the absence of such an objective measure, however, the determination of a customs value under the provisions of Article 3 is not appropriate.
Note to Article 5
1. The term ‘unit price at which ... goods are sold in the greatest aggregate quantity’ means the price at which the greatest number of units is sold in sales to persons who are not related to the persons from whom they buy such goods at the first commercial level after importation at which such sales take place.
2. As an example of this, goods are sold from a price list which grants favourable unit prices for purchases made in larger quantities.
Sale quantity |
Unit price |
Number of sales |
Total quantity sold at each price |
1-10 units |
100 |
10 sales of 5 units 5 sales of 3 units |
65 |
11-25 units |
95 |
5 sales of 11 units |
55 |
over 25 units |
90 |
1 sale of 30 units 1 sale of 50 units |
80 |
The greatest number of units sold at a price is 80; therefore, the unit price in the greatest aggregate quantity is 90.
3. As another example of this, two sales occur. In the first sale 500 units are sold at a price of 95 currency units each. In the second sale 400 units are sold at a price of 90 currency units each. In this example, the greatest number of units sold at a particular price is 500; therefore, the unit price in the greatest aggregate quantity is 95.
4. A third example would be the following situation where various quantities are sold at various prices.
Sales
Sale quantity |
Unit price |
40 units |
100 |
30 units |
90 |
15 units |
100 |
50 units |
95 |
25 units |
105 |
35 units |
90 |
5 units |
100 |
Totals
Total quantity sold |
Unit price |
65 |
90 |
50 |
95 |
60 |
100 |
25 |
105 |
In this example, the greatest number of units sold at a particular price is 65; therefore, the unit price in the greatest aggregate quantity is 90.
5. Any sale in the importing country, as described in paragraph 1 above, to a person who supplies directly or indirectly free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods any of the elements specified in paragraph l(b) of Article 8, should not be taken into account in establishing the unit price for the purposes of Article 5.
6. It should be noted that ‘profit and general expenses’ referred to in paragraph 1 of Article 5 should be taken as a whole. The figure for the purposes of this deduction should be determined on the basis of information supplied by or on behalf of the importer unless the importer's figures are inconsistent with those obtained in sales in the country of importation of imported goods of the same class or kind. Where the importer's figures are inconsistent with such figures, the amount for profit and general expenses may be based upon relevant information other than that supplied by or on behalf of the importer.
7. The ‘general expenses’ include the direct and indirect costs of marketing the goods in question.
8. Local taxes payable by reason of the sale of the goods for which a deduction is not made under the provisions of paragraph l(a)(iv) of Article 5 shall be deducted under the provisions of paragraph l(a)(i) of Article 5.
9. In determining either the commissions or the usual profits and general expenses under the provisions of paragraph 1 of Article 5, the question whether certain goods are ‘of the same class or kind’ as other goods must be determined on a case-by-case basis by reference to the circumstances involved. Sales in the country of importation of the narrowest group or range of imported goods of the same class or kind, which includes the goods being valued, for which the necessary information can be provided, should be examined. For the purposes of Article 5, ‘goods of the same class or kind’ includes goods imported from the same country as the goods being valued as well as goods imported from other countries.
10. For he purposes of paragraph l(b) of Article 5, the ‘earliest date’ shall be the date by which sales of the imported goods or of identical or similar imported goods are made in sufficient quantity to establish the unit price.
11. Where the method in paragraph 2 of Article 5 is used, deductions made for the value added by further processing shall be based on objective and quantifiable data relating to the cost of such work. Accepted industry formulas, recipes, methods of construction, and other industry practices would form the basis of the calculations.
12. It is recognized that the method of valuation provided for in paragraph 2 of Article 5 would normally not be applicable when, as a result of the further processing, the imported goods lose their identity. However, there can be instances where, although the identity of the imported goods is lost, the value added by the processing can be determined accurately without unreasonable difficulty. On the other hand, there can also be instances where the imported goods maintain their identity but form such a minor element in the goods sold in the country of importation that the use of this valuation method would be unjustified. In view of the above, each situation of this type must be considered on a case-by-case basis.
Note to Article 6
1. As a general rule, customs value is determined under this Agreement on the basis of information readily available in the country of importation. In order to determine a computed value, however, it may be necessary to examine the costs of producing the goods being valued and other information which has to be obtained from outside the country of importation. Furthermore, in most cases the producer of the goods will be outside the jurisdiction of the authorities of the country of importation. The use of the computed value method will generally be limited to those cases where the buyer and seller are related, and the producer is prepared to supply to the authorities of the country of importation the necessary costings and to provide facilities for any subsequent verification which may be necessary.
2. The ‘cost or value’ referred to in paragraph l(a) of Article 6 is to be determined on the basis of information relating to the production of the goods being valued supplied by or on behalf of the producer. It is to be based upon the commercial accounts of the producer, provided that such accounts are consistent with the generally accepted accounting principles applied in the country where the goods are produced.
3. The ‘cost or value’ shall include the cost of elements specified in paragraphs l(a)(ii) and (iii) of Article 8. It shall also include the value, apportioned as appropriate under the provisions of the relevant note to Article 8, of any element specified in paragraph l(b) of Article 8 which has been supplied directly or indirectly by the buyer for use in connection with the production of the imported goods. The value of the elements specified in paragraph l(b)(iv) of Article 8 which are undertaken in the country of importation shall be included only to the extent that such elements are charged to the producer. It is to be understood that no cost or value of the elements referred to in this paragraph shall be counted twice in determining the computed value.
4. The ‘amount for profit and general expenses’ referred to in paragraph l(b) of Article 6 is to be determined on the basis of information supplied by or on behalf of the producer unless the producer's figures are inconsistent with those usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the country of importation.
5. It should be noted in this context that the ‘amount for profit and general expenses’ has to be taken as a whole. It follows that if, in any particular case, the producer's profit figure is low and the producer's general expenses are high, the producer's profit and general expenses taken together may nevertheless be consistent with that usually reflected in sales of goods of the same class or kind. Such a situation might occur, for example, if a product were being launched in the country of importation and the producer accepted a nil or low profit to offset high general expenses associated with the launch. Where the producer can demonstrate a low profit on sales of the imported goods because of particular commercial circumstances, the producer's actual profit figures should be taken into account provided that the producer has valid commercial reasons to justify them and the producer's pricing policy reflects usual pricing policies in the branch of industry concerned. Such a situation might occur, for example, where producers have been forced to lower prices temporarily because of an unforeseeable drop in demand, or where they sell goods to complement a range of goods being produced in the country of importation and accept a low profit to maintain competitivity. Where the producer's own figures for profit and general expenses are not consistent with those usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to the country of importation, the amount for profit and general expenses may be based upon relevant information other than that supplied by or on behalf of the producer of the goods.
6. Where information other than that supplied by or on behalf of the producer is used for the purposes of determining a computed value, the authorities of the importing country shall inform the importer, if the latter so requests, of the source of such information, the data used and the calculations based upon such data, subject to the provisions of Article 10.
7. The ‘general expenses’ referred to in paragraph l(b) of Article 6 covers the direct and indirect costs of producing and selling the goods for export which are not included under paragraph l(a) of Article 6.
8. Whether certain goods are ‘of the same class or kind’ as other goods must be determined on a case-by-case basis with reference to the circumstances involved. In determining the usual profits and general expenses under the provisions of Article 6, sales for export to the country of importation of the narrowest group or range of goods, which includes the goods being valued, for which the necessary information can be provided, should be examined. For the purposes of Article 6, ‘goods of the same class or kind’ must be from the same country as the goods being valued.
Note to Article 7
1. Customs values determined under the provisions of Article 7 should, to the greatest extent possible, be based on previously determined customs values.
2. The methods of valuation to be employed under Article 7 should be those laid down in Articles 1 through 6 but a reasonable flexibility in the application of such methods would be in conformity with the aims and provisions of Article 7.
3. Some examples of reasonable flexibility are as follows:
Identical goods — the requirement that the identical goods should be exported at or about the same time as the goods being valued could be flexibly interpreted; identical imported goods produced in a country other than the country of exportation of the goods being valued could be the basis for customs valuation; customs values of identical imported goods already determined under the provisions of Articles 5 and 6 could be used.
Similar goods — the requirement that the similar goods should be exported at or about the same time as the goods being valued could be flexibly interpreted; similar imported goods produced in a country other than the country of exportation of the goods being valued could be the basis for customs valuation; customs values of similar imported goods already determined under the provisions of Articles 5 and 6 could be used.
Deductive method — the requirement that the goods shall have been sold in the ‘condition as imported’ in paragraph l(a) of Article 5 could be flexibly interpreted; the ‘90 days’ requirement could be administered flexibly.
Note to Article 8
Paragraph l(a)(i)
The term ‘buying commissions’ means fees paid by an importer to the importer's agent for the service of representing the importer abroad in the purchase of the goods being valued.
Paragraph l(b)(ii)
1. There are two factors involved in the apportionment of the elements specified in paragraph l(b)(ii) of Article 8 to the imported goods — the value of the element itself and the way in which that value is to be apportioned to the imported goods. The apportionment of these elements should be made in a reasonable manner appropriate to the circumstances and in accordance with generally accepted accounting principles.
2. Concerning the value of the element, if the importer acquires the element from a seller not related to the importer at a given cost, the value of the element is that cost. If the element was produced by the importer or by a person related to the importer, its value would be the cost of producing it. If the element had been previously used by the importer, regardless of whether it had been acquired or produced by such importer, the original cost of acquisition or production would have to be adjusted downward to reflect its use in order to arrive at the value of the element.
3. Once a value has been determined for the element, it is necessary to apportion that value to the imported goods. Various possibilities exist. For example, the value might be apportioned to the first shipment if the importer wishes to pay duty on the entire value at one time. As another example, the importer may request that the value be apportioned over the number of units produced up to the time of the first shipment. As a further example, the importer may request that the value be apportioned over the entire anticipated production where contracts or firm commitments exist for that production. The method of apportionment used will depend upon the documentation provided by the importer.
4. As an illustration of the above, an importer provides the producer with a mould to be used in the production of the imported goods and contracts with the producer to buy 10 000 units. By the time of arrival of the first shipment of 1 000 units, the producer has already produced 4 000 units. The Importer may request the customs administration to apportion the value of the mould over 1 000 units, 4 000 units or 10 000 units.
Paragraph 1(b)(iv)
1. Additions for the elements specified in paragraph l(b)(iv) of Article 8 should be based on objective and quantifiable data. In order to minimize the burden for both the importer and customs administration in determining the values to be added, data readily available in the buyer's commercial record system should be used in so far as possible.
2. For those elements supplied by the buyer which were purchased or leased by the buyer, the addition would be the cost of the purchase or the lease. No addition shall be made for those elements available in the public domain, other than the cost of obtaining copies of them.
3. The ease with which it may be possible to calculate the values to be added will depend on a particular firm's structure and management practice, as well as its accounting methods.
4. For example, it is possible that a firm which imports a variety of products from several countries maintains the records of its design centre outside the country of importation in such a way as to show accurately the costs attributable to a given product. In such cases, a direct adjustment may appropriately be made under the provisions of Article 8.
5. In another case, a firm may carry the cost of the design centre outside the country of importation as a general overhead expense without allocation to specific products. In this instance, an appropriate adjustment could be made under the provisions of Article 8 with respect to the imported goods by apportioning total design centre costs over total production benefiting from the design centre and adding such apportioned cost on a unit basis to imports.
6. Variations in the above circumstances will, of course, require different factors to be considered in determining the proper method of allocation.
7. In cases where the production of the element in question involves a number of countries and over a period of time, the adjustment should be limited to the value actually added to that element outside the country of importation.
Paragraph 1(c)
1. The royalties and licence fees referred to in paragraph l(c) of Article 8 may include, among other things, payments in respect to patents, trade marks and copyrights. However, the charges for the right to reproduce the imported goods in the country of importation shall not be added to the price actually paid or payable for the imported goods in determining the customs value.
2. Payments made by the buyer for the right to distribute or resell the imported goods shall not be added to the price actually paid or payable for the imported goods if such payments are not a condition of the sale for export to the country of importation of the imported goods.
Paragraph 3
Where objective and quantifiable data do not exist with regard to the additions required to be made under the provisions of Article 8, the transaction value cannot be determined under the provisions of Article 1. As an illustration of this, a royalty is paid on the basis of the price in a sale in the importing country of a litre of a particular product that was imported by the kilogram and made up into a solution after importation. If the royalty is based partially on the imported goods and partially on other factors which have nothing to do with the imported goods (such as when the imported goods are mixed with domestic ingredients and are no longer separately identifiable, or when the royalty cannot be distinguished from special financial arrangements between the buyer and the seller), it would be inappropriate to attempt to make an addition for the royalty. However, if the amount of this royalty is based only on the imported goods and can be readily quantified, an addition to the price actually paid or payable can be made.
Note to Article 9
For the purposes of Article 9, ‘time of importation’ may include the time of entry for customs purposes.
Note to Article 11
1. Article 11 provides the importer with the right to appeal against a valuation determination made by the customs administration for the goods being valued. Appeal may first be to a higher level in the customs administration, but the importer shall have the right in the final instance to appeal to the judiciary.
2. ‘Without penalty’ means that the importer shall not be subject to a fine or threat of fine merely because the importer chose to exercise the right of appeal. Payment of normal court costs and lawyers' fees shall not be considerd to be a fine.
3. However, nothing in Article 11 shall prevent a Member from requiring full payment of assessed customs duties prior to an appeal.
Note to Article 15
Paragraph 4
For the purposes of Article 15, the term ‘persons’ includes a legal person, where appropriate.
Paragraph 4(e)
For the purpose of this Agreement, one person shall be deemed to control another when the former is legally or operationally in a position to exercise restraint or direction over the latter.
ANNEX II
TECHNICAL COMMITTEE ON CUSTOMS VALUATION
1. In accordance with Article 18 of this Agreement, the Technical Committee shall be established under the auspices of the CCC with a view to ensuring, at the technical level, uniformity in interpretation and application of this Agreement.
2. The responsibilities of the Technical Committee shall include the following:
to examine specific technical problems arising in the day-to-day administration of the customs valuation system of Members and to give advisory opinions on appropriate solutions based upon the facts presented;
to study, as requested, valuation laws, procedures and practices as they relate to this Agreement and to prepare reports on the results of such studies;
to prepare and circulate annual reports on the technical aspects of the operation and status of this Agreement;
to furnish such information and advice on any matters concerning the valuation of imported goods for customs purposes as may be requested by any Member or the Committee. Such information and advice may take the form of advisory opinions, commentaries or explanatory notes;
to facilitate, as requested, technical assistance to Members with a view to furthering the international acceptance of this Agreement;
to carry out an examination of a matter referred to it by a panel under Article 19 of this Agreement; and
to exercise such other responsibilities as the Committee may assign to it.
General
3. The Technical Committee shall attempt to conclude its work on specific matters, especially those referred to it by Members, the Committee or a panel, in a reasonably short period of time. As provided in paragraph 4 of Article 19, a panel shall set a specific time period for receipt of a report of the Technical Committee and the Technical Committee shall provide its report within that period.
4. The Technical Committee shall be assisted as appropriate in its activities by the CCC Secretariat.
Representation
5. Each Member shall have the right to be represented on the Technical Committee. Each Member may nominate one delegate and one or more alternates to be its representatives on the Technical Committee. Such a Member so represented on the Technical Committee is referred to in this Annex as a ‘member of the Technical Committee’. Representatives of members of the Technical Committee may be assisted by advisers. The WTO Secretariat may also attend such meetings with observer status.
6. Members of the CCC which 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 shall attend meetings of the Technical Committee as observers.
7. Subject to the approval of the Chairman of the Technical Committee, the Secretary-General of the CCC (referred to in this Annex as ‘the Secretary-General’) may invite representatives of governments which are neither Members of the WTO nor members of the CCC and representatives of international governmental and trade organizations to attend meetings of the Technical Committee as observers.
8. Nominations of delegates, alternates and advisers to meetings of the Technical Committee shall be made to the Secretary-General.
Technical Committee Meetings
9. The Technical Committee shall meet as necessary but at least two times a year. The date of each meeting shall be fixed by the Technical Committee at its preceding session. The date of the meeting may be varied either at the request of any member of the Technical Committee concurred in by a simple majority of the members of the Technical Committee or, in cases requiring urgent attention, at the request of the Chairman. Notwithstanding the provisions in sentence 1 of this paragraph, the Technical Committee shall meet as necessary to consider matters referred to it by a panel under the provisions of Article 19 of this Agreement.
10. The meetings of the Technical Committee shall be held at the headquarters of the CCC unless otherwise decided.
11. The Secretary-General shall inform all members of the Technical Committee and those included under paragraphs 6 and 7 at least 30 days in advance, except in urgent cases, of the opening date of each session of the Technical Committee.
Agenda
12. A provisional agenda for each session shall be drawn up by the Secretary-General and circulated to the members of the Technical Committee and to those included under paragraphs 6 and 7 at least 30 days in advance of the session, except in urgent cases. This agenda shall comprise all items whose inclusion has been approved by the Technical Committee during its preceding session, all items included by the Chairman on the Chairman's own initiative, and all items whose inclusion has been requested by the Secretary-General, by the Committee or by any member of the Technical Committee.
13. The Technical Committee shall determine its agenda at the opening of each session. During the session the agenda may be altered at any time by the Technical Committee.
Officers and Conduct of Business
14. The Technical Committee shall elect from among the delegates of its members a Chairman and one or more Vice-Chairmen. The Chairman and Vice-Chairmen shall each hold office for a period of one year. The retiring Chairman and Vice-Chairmen are eligible for re-election. The mandate of a Chairman or Vice-Chairman who no longer represents a member of the Technical Committee shall terminate automatically.
15. If the Chairman is absent from any meeting or part thereof, a Vice-Chairman shall preside. In that event, the latter shall have the same powers and duties as the Chairman.
16. The Chairman of the meeting shall participate in the proceedings of the Technical Committee as such and not as the representative of a member of the Technical Committee.
17. In addition to exercising the other powers conferred upon the Chairman by these rules, the Chairman shall declare the opening and closing of each meeting, direct the discussion, accord the right to speak, and, pursuant to these rules, have control of the proceedings. The Chairman may also call a speaker to order if the speaker's remarks are not relevant.
18. During discussion of any matter a delegation may raise a point of order. In this event, the Chairman shall immediately state a ruling. If this ruling is challenged, the Chairman shall submit it to the meeting for decision and it shall stand unless overruled.
19. The Secretary-General, or officers of the CCC Secretariat designated by the Secretary-General, shall perform the secretarial work of meetings of the Technical Committee.
Quorum and Voting
20. Representatives of a simple majority of the members of the Technical Committee shall constitute a quorum.
21. Each member of the Technical Committee shall have one vote. A decision of the Technical Committee shall be taken by a majority comprising at least two-thirds of the members present. Regardless of the outcome of the vote on a particular matter, the Technical Committee shall be free to make a full report to the Committee and to the CCC on that matter indicating the different views expressed in the relevant discussions. Notwithstanding the above provisions of this paragraph, on matters referred to it by a panel, the Technical Committee shall take decisions by consensus. Where no agreement is reached in the Technical Committee on the question referred to it by a panel, the Technical Committee shall provide a report detailing the facts of the matter and indicating the views of the members.
Languages and Records
22. The official languages of the Technical Committee shall be English, French and Spanish. Speeches or statements made in any of these three languages shall be immediately translated into the other official languages unless all delegations agree to dispense with translation. Speeches or statements made in any other language shall be translated into English, French and Spanish, subject to the same conditions, but in that event the delegation concerned shall provide the translation into English, French or Spanish. Only English, French and Spanish shall be used for the official documents of the Technical Committee. Memoranda and correspondence for the consideration of the Technical Committee must be presented in one of the official languages.
23. The Technical Committee shall draw up a report of all its sessions and, if the Chairman considers it necessary, minutes or summary records of its meetings. The Chairman or a designee of the Chairman shall report on the work of the Technical Committee at each meeting of the Committee and at each meeting of the CCC.
ANNEX III
1. The five-year delay in the application of the provisions of the Agreement by developing country Members provided for in paragraph 1 of Article 20 may, in practice, be insufficient for certain developing country Members. In such cases a developing country Member may request before the end of the period referred to in paragraph 1 of Article 20 an extension of such period, it being understood that the Members will give sympathetic consideration to such a request in cases where the developing country Member in question can show good cause.
2. Developing countries which currently value goods on the basis of officially established minimum values may wish to make a reservation to enable them to retain such values on a limited and transitional basis under such terms and conditions as may be agreed to by the Members.
3. Developing countries which consider that the reversal of the sequential order at the request of the importer provided for in Article 4 of the Agreement may give rise to real difficulties for them, may wish to make a reservation to Article 4 in the following terms:
‘The Government of ...... reserves the right to provide that the relevant provision of Article 4 of the Agreement shall apply only when the customs authorities agree to the request to reverse the order of Articles 5 and 6.’
If developing countries make such a reservation, the Members shall consent to it under Article 21 of the Agreement.
4. Developing countries may wish to make a reservation with respect to paragraph 2 of Article 5 of the Agreement in the following terms:
‘The Government of .... reserves the right to provide that paragraph 2 of Article 5 of the Agreement shall be applied in accordance with the provisions of the relevant note thereto whether or not the importer so requests.’
If developing countries make such a reservation, the Members shall consent to it under Article 21 of the Agreement.
5. Certain developing countries may have problems in the implementation of Article 1 of the Agreement insofar as it relates to importations into their countries by sole agents, sole distributors and sole concessionaires. If such problems arise in practice in developing country Members applying the Agreement, a study of this question shall be made, at the request of such Members, with a view to finding appropriate solutions.
6. Article 17 recognizes that in applying the Agreement, customs adminstrations may need to make enquiries concerning the truth or accuracy of any statement, document or declaration presented to them for customs valuation purposes. The Article thus acknowledges that enquiries may be made which are, for example, aimed at verifying that the elements of value declared or presented to customs in connection with a determination of customs value are complete and correct. Members, subject to their national laws and procedures, have the right to expect the full cooperation of importers in these enquiries.
7. The price actually paid or payable includes all payments actually made or to be made as a condition of sale of the imported goods, by the buyer to the seller, or by the buyer to a third party to satisfy an obligation of the seller.
AGREEMENT ON PRESHIPMENT INSPECTION
MEMBERS,
Noting that Ministers on 20 September 1986 agreed that the Uruguay Round of Multilateral Trade Negotiations shall aim to ‘bring about further liberalization and expansion of world trade’, ‘strengthen the role of GATT’ and ‘increase the responsiveness of the GATT system to the evolving international economic environment’;
Noting that a number of developing country Members have recourse to preshipment inspection;
Recognizing the need of developing countries to do so for as long and insofar as it is necessary to verify the quality, quantity or price of imported goods;
Mindful that such programmes must be carried out without giving rise to unnecessary delays or unequal treatment;
Nothing that this inspection is by definition carried out on the territory of exporter Members;
Recognizing the need to establish an agreed international framework of rights and obligations of both user Members and exporter Members;
Recognizing that the principles and obligations of GATT 1994 apply to those activities of preshipment inspection entities that are mandated by governments that are Members of the WTO;
Recognizing that it is desirable to provide transparency of the operation of preshipment inspection entities and of laws and regulations relating to preshipment inspection;
Desiring to provide for the speedy, effective and equitable resolution of disputes between exporters and preshipment inspection entities arising under this Agreement;
HEREBY AGREE AS FOLLOWS:
Article 1
Coverage — Definitions
Article 2
Obligations of User Members
Non-discrimination
Governmental Requirements
Site of Inspection
Standards
Transparency
Protection of Confidential Business Information
User Members shall ensure that preshipment inspection entities do not request exporters to provide information regarding:
manufacturing data related to patented, licensed or undisclosed processes, or to processes for which a patent is pending;
unpublished technical data other than data necessary to demonstrate compliance with technical regulations or standards;
internal pricing, including manufacturing costs;
profit levels;
the terms of contracts between exporters and their suppliers unless it is not otherwise possible for the entity to conduct the inspection in question. In such cases, the entity shall only request the information necessary for this purpose.
Conflicts of Interest
User Members shall ensure that preshipment inspection entities, bearing in mind also the provisions on protection of confidential business information in paragraphs 9 through 13, maintain procedures to avoid conflicts of interest:
between preshipment inspection entities and any related entities of the preshipment inspection entities in question, including any entities in which the latter have a financial or commercial interest or any entities which have a financial interest in the preshipment inspection entities in question, and whose shipments the preshipment inspection entities are to inspect;
between preshipment inspection entities and any other entities, including other entities subject to preshipment inspection, with the exception of the government entities contracting or mandating the inspections;
with divisions of preshipment inspection entities engaged in activities other than those required to carry out the inspection process.
Delays
Price Verification
User Members shall ensure that, in order to prevent over- and under-invoicing and fraud, preshipment inspection entities conduct price verification ( 56 ) according to the following guidelines:
preshipment inspection entities shall only reject a contract price agreed between an exporter and an importer if they can demonstrate that their findings of an unsatisfactory price are based on a verification process which is in conformity with the criteria set out in subparagraphs (b) through (e);
the preshipment inspection entity shall base its price comparison for the verification of the export price on the price(s) of identical or similar goods offered for export from the same country of exportation at or about the same time, under competitive and comparable conditions of sale, in conformity with customary commercial practices and net of any applicable standard discounts. Such comparison shall be based on the following:
only prices providing a valid basis of comparison shall be used, taking into account the relevant economic factors pertaining to the country of importation and a country or countries used for price comparison;
the preshipment inspection entity shall not rely upon the price of goods offered for export to different countries of importation to arbitrarily impose the lowest price upon the shipment;
the preshipment inspection entity shall take into account the specific elements listed in subparagraph (c);
at any stage in the process described above, the preshipment inspection entity shall provide the exporter with an opportunity to explain the price;
when conducting price verification, preshipment inspection entities shall make appropriate allowances for the terms of the sales contract and generally applicable adjusting factors pertaining to the transactions; these factors shall include but not be limited to the commercial level and quantity of the sale, delivery periods and conditions, price escalation clauses, quality specifications, special design features, special shipping or packing specifications, order size, spot sales, seasonal influences, licence or other intellectual property fees, and services rendered as part of the contract if these are not customarily invoiced separately; they shall also include certain elements relating to the exporter's price, such as the contractual relationship between the exporter and importer;
the verification of transportation charges shall relate only to the agreed price of the mode of transport in the country of exportation as indicated in the sales contract;
the following shall not be used for price verification purposes:
the selling price in the country of importation of goods produced in such country;
the price of goods for export from a country other than the country of exportation;
the cost of production;
arbitrary or fictitious prices or values.
Appeals Procedures
User Members shall ensure that the procedures are developed and maintained in accordance with the following guidelines:
preshipment inspection entities shall designate one or more officials who shall be available during normal business hours in each city or port in which they maintain a preshipment inspection administrative office to receive, consider and render decisions on exporters' appeals or grievances;
exporters shall provide in writing to the designated official (s) the facts concerning the specific transaction in question, the nature of the grievance and a suggested solution;
the designated official(s) shall afford sympathetic consideration to exporters' grievances and shall render a decision as soon as possible after receipt of the documentation referred to in subparagraph (b).
Derogation
Article 3
Obligations of Exporter Members
Non-discriminaton
Transparency
Technical Assistance
Article 4
Independent Review Procedures
Members shall encourage preshipment inspection entities and exporters mutually to resolve their disputes. However, two working days after submission of the grievance in accordance with the provisions of paragraph 21 of Article 2, either party may refer the dispute to independent review. Members shall take such reasonable measures as may be available to them to ensure that the following procedures are established and maintained to this end:
these procedures shall be administered by an independent entity constituted jointly by an organization representing preshipment inspection entities and an organization representing exporters for the purposes of this Agreement;
the independent entity referred to in subparagraph (a) shall establish a list of experts as follows:
a section of members nominated by an organization representing preshipment inspection entities;
a section of members nominated by an organization representing exporters;
a section of independent trade experts, nominated by the independent entity referred to in subparagraph (a).
The geographical distribution of the experts on this list shall be such as to enable any disputes raised under these procedures to be dealt with expeditiously. This list shall be drawn up within two months of the entry into force of the WTO Agreement and shall be updated annually. The list shall be publicly Available. It shall be notified to the Secretariat and circulated to all Members;
an exporter or preshipment inspection entity wishing to raise a dispute shall contact the independent entity referred to in subparagraph (a) and request the formation of a panel. The independent entity shall be responsible for establishing a panel. This panel shall consist of three members. The members of the panel shall be chosen so as to avoid unnecessary costs and delays. The first member shall be chosen from section (i) of the above list by the preshipment inspection entity concerned, provided that this member is not affiliated to that entity. The second member shall be chosen from section (ii) of the above list by the exporter concerned, provided that this member is not affiliated to that exporter. The third member shall be chosen from section (iii) of the above list by the independent entity referred to in subparagraph (a). No objections shall be made to any independent trade expert drawn from section (iii) of the above list;
the independent trade expert drawn from section (iii) of the above list shall serve as the chairman of the panel. The independent trade expert shall take the necessary decisions to ensure an expeditious settlement of the dispute by the panel, for instance, whether the facts of the case require the panelists to meet and, if so, where such a meeting shall take place, taking into account the site of the inspection in question;
if the parties to the dispute so agree, one independent trade expert could be selected from section (iii) of the above list by the independent entity referred to in subparagraph (a) to review the dispute in question. This expert shall take the necessary decisions to ensure an expeditious settlement of the dispute, for instance taking into account the site of the inspection in question;
the object of the review shall be to establish whether, in the course of the inspection in dispute, the parties to the dispute have complied with the provisions of this Agreement. The procedures shall be expeditious and provide the opportunity for both parties to present their views in person or in writing;
decisions by a three-member panel shall be taken by majority vote. The decision on the dispute shall be rendered within eight working days of the request for independent review and be communicated to the parties to the dispute. This time-limit could be extended upon agreement by the parties to the dispute. The panel or independent trade expert shall apportion the costs, based on the merits of the case;
the decision of the panel shall be binding upon the preshipment inspection entity and the exporter which are parties to the dispute.
Article 5
Notification
Members shall submit to the Secretariat copies of the laws and regulations by which they put this Agreement into force, as well as copies of any other laws and regulations relating to preshipment inspection, when the WTO Agreement enters into force with respect to the Member concerned. No changes in the laws and regulations relating to preshipment inspection shall be enforced before such changes have been officially published. They shall be notified to the Secretariat immediately after their publication. The Secretariat shall inform the Members of the availability of this information.
Article 6
Review
At the end of the second year from the date of entry into force of the WTO Agreement and every three years thereafter, the Ministerial Conference shall review the provisions, implementation and operation of this Agreement, taking into account the objectives thereof and experience gained in its operation. As a result of such review, the Ministerial Conference may amend the provisions of the Agreement.
Article 7
Consultation
Members shall consult with other Members upon request with respect to any matter affecting the operation of this Agreement. In such cases, the provisions of Article XXII of GATT 1994, as elaborated and applied by the Dispute Settlement Understanding, are applicable to this Agreement.
Article 8
Dispute Settlement
Any disputes among Members regarding the operation of this Agreement shall be subject to the provisions of Article XXIII of GATT 1994, as elaborated and applied by the Dispute Settlement Understanding.
Article 9
Final Provisions
AGREEMENT ON RULES OF ORIGIN
MEMBERS,
Noting that Ministers on 20 September 1986 agreed that the Uruguay Round of Multilateral Trade Negotiations shall aim to ‘bring about further liberalization and expansion of world trade’, ‘strengthen the role of GATT’ and ‘increase the responsiveness of the GATT system to the evolving international economic environment’;
Desiring to further the objectives of GATT 1994;
Recognizing that clear and predictable rules of origin and their application facilitate the flow of international trade;
Desiring to ensure that rules of origin themselves do not create unneccessary obstacles to trade;
Desiring to ensure that rules of origin do not nullify or impair the rights of Members under GATT 1994;
Recognizing that it is desirable to provide transparency of laws, regulations, and practices regarding rules of origin;
Desiring to ensure that rules of origin are prepared and applied in an impartial, transparent, predictable, consistent and neutral manner;
Recognizing the availability of a consultation mechanism and procedures for the speedy, effective and equitable regulation of disputes arising under this Agreement;
Desiring to harmonize and clarify rules of origin;
HEREBY AGREE AS FOLLOWS:
PART I
DEFINITIONS AND COVERAGE
Article 1
Rules of Origin
PART II
DISCIPLINES TO GOVERN THE APPLICATION OF RULES OF ORIGIN
Article 2
Disciplines During the Transition Period
Until the work programme for the harmonization of rules of origin set out in Part IV is completed, Members shall ensure that:
when they issue administrative determinations of general application, the requirements to be fulfilled are clearly defined. In particular:
in cases where the criterion of change of tariff classification is applied, such a rule of origin, and any exceptions to the rule, must clearly specify the subheadings or headings within the tariff nomenclature that are addressed by the rule;
in cases where the ad valorem percentage criterion is applied, the method for calculating this percentage shall also be indicated in the rules of origin;
in cases where the criterion of manufacturing or processing operation is prescribed, the operation that confers origin on the good concerned shall be precisely specified;
notwithstanding the measure or instrument of commercial policy to which they are linked, their rules of origin are not used as instruments to pursue trade objectives directly or indirectly;
rules of origin shall not themselves create restrictive, distorting, or disruptive effects on international trade. They shall not pose unduly strict requirements or require the fulfilment of a certain condition not related to manufacturing or processing, as a prerequisite for the determination of the country of origin. However, costs not directly related to manufacturing or processing may be included for the purposes of the application of an ad valorem percentage criterion consistent with subparagraph (a);
the rules of origin that they apply to imports and exports are not more stringent than the rules of origin they apply to determine whether or not a good is domestic and shall not discriminate between other Members, irrespective of the affiliation of the manufacturers of the good concerned ( 59 );
their rules of origin are administered in a consistent, uniform, impartial and reasonable manner;
their rules of origin are based on a positive standard. Rules of origin that state what does not confer origin (negative standard) are permissible as part of a clarification of a positive standard or in individual cases where a positive determination of origin is not necessary;
their laws, regulations, judical decisions and administrative rulings of general application relating to rules of origin are published as if they were subject to, and in accordance with, the provisions of paragraph 1 of Article X of GATT 1994;
upon the request of an exporter, importer or any person with a justifiable cause, assessment of the origin they would accord to a good are issued as soon as possible but not later than 150 days ( 60 ) after a request for such an assessment provided that all necessary elements have been submitted. Requests for such assessments shall be accepted before trade in the good concerned begins and may be accepted at any later point in time. Such assessments shall remain valid for three years provided that the facts and conditions, including the rules of origin, under which they have been made remain comparable. Provided that the parties concerned are informed in advance, such assessments will no longer be valid when a decision contrary to the assessment is made in a review as referred to in subparagraph (j). Such assessments shall be made publicly available subject to the provisions of subparagraph (k);
when introducing changes to their rules of origin or new rules of origin, they shall not apply such changes retroactively as defined in, and without prejudice to, their laws or regulations;
any administrative action which they take in relation to the determination of origin is reviewable promptly by judicial, arbitral or administrative tribunals or procedures, independent of the authority issuing the determination, which can effect the modification or reversal of the determination;
all information that is by nature confidential or that is provided on a confidential basis for the purpose of the application of rules of origin is treated as strictly confidential by the authorities concerned, which shall not disclose it without the specific permission of the person or government providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.
Article 3
Disciplines after the Transition Period
Taking into account the aim of all Members to achieve, as a result of the harmonization work programme set out in Part IV, the establishment of harmonized rules of origin, Members shall ensure, upon the implementation of the results of the harmonization work programme, that:
they apply rules of origin equally for all purposes as set out in Article 1;
under their rules of origin, the country to be determined as the origin of a particular good is either the country where the good has been wholly obtained or, when more than one country is concerned in the production of the good, the country where the last substantial transformation has been carried out;
the rules of origin that they apply to imports and exports are not more stringent than the rules of origin they apply to determine whether or not a good is domestic and shall not discriminate between other Members, irrespective of the affiliation of the manufacturers of the good concerned;
the rules of origin are administered in a consistent, uniform, impartial and reasonable manner;
their laws, regulations, judicial decisions and administrative rulings of general application relating to rules of origin are published as if they were subject to, and in accordance with, the provisions of paragraph 1 of Article X of GATT 1994;
upon the request of an exporter, importer or any person with a justifiable cause, assessments of the origin they would accord to a good are issued as soon as possible but no later than 150 days after a request for such an assessment provided that all necessary elements have been submitted. Requests for such assessments shall be accepted before trade in the good concerned begins and may be accepted at any later point in time. Such assessments shall remain valid for three years provided that the facts and conditions, including the rules of origin, under which they have been made remain comparable. Provided that the parties concerned are informed in advance, such assessments will no longer be valid when a decision contrary to the assessment is made in a review as referred to in subparagraph (h). Such assessments shall be made publicly available subject to the provisions of subparagraph (i);
when introducing changes to their rules of origin or new rules of origin, they shall not apply such changes retroactively as defined in, and without prejudice to, their laws or regulations;
any administrative action which they take in relation to the determination of origin is reviewable promptly by judicial, arbitral or administrative tribunals or procedures, independent of the authority issuing the determination, which can effect the modification or reversal of the determination;
all information which is by nature confidential or which is provided on a confidential basis for the purpose of the application of rules of origin is treated as strictly confidential by the authorities concerned, which shall not disclose it without the specific permission of the person or government providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.
PART III
PROCEDURAL ARRANGEMENTS ON NOTIFICATION, REVIEW, CONSULTATION AND DISPUTE SETTLEMENT
Article 4
Institutions
Article 5
Information and Procedures for Modification and Introduction of New Rules of Origin
Article 6
Review
Article 7
Consultation
The provisions of Article XXII of GATT 1994, as elaborated and applied by the Dispute Settlement Understanding, are applicable to this Agreement.
Article 8
Dispute Settlement
The provisions of Article XXIII of GATT 1994, as elaborated and applied by the Dispute Settlement Understanding, are applicable to this Agreement.
PART IV
HARMONIZATION OF RULES OF ORIGIN
Article 9
Objectives and Principles
With the objectives of harmonizing rules of origin and inter alia providing more certainty in the conduct of world trade, the Ministerial Conference shall undertake the work programme set out below in conjunction with the CCC, on the basis of the following principles:
rules of origin should be applied equally for all purposes as set out in Article 1;
rules of origin should provide for the country to be determined as the origin of a particular good to be either the country where the good has been wholly obtained or, when more than one country is concerned in the production of the good, the country where the last substantial transformation has been carried out;
rules of origin should be objective, understandable and predictable;
notwithstanding the measure or instrument to which they may be linked, rules of origin should not be used as instruments to pursue trade objectives directly or indirectly. They should not themselves create restrictive, distorting or disruptive effects on international trade. They should not pose unduly strict requirements or require the fulfilment of a certain condition not relating to manufacturing or processing as a prerequisite for the determination of the country of origin. However, costs not directly related to manufacturing or processing may be included for purposes of the application of an ad valorem percentage criterion;
rules of origin should be administrable in a consistent, uniform, impartial and reasonable manner;
rules of origin should be coherent;
rules of origin should be based on a positive standard. Negative standards may be used to clarify a positive standard.
Work Programme
The work programme shall be initiated as soon after the entry into force of the WTO Agreement as possible and will be completed within three years of initiation.
The Committee and the Technical Committee provided for in Article 4 shall be the appropriate bodies to conduct this work.
To provide for detailed input by the CCC, the Committee shall request the Technical Committee to provide its interpretations and opinions resulting from the work described below on the basis of the principles listed in paragraph 1. To ensure timely completion of the work programme for harmonization, such work shall be conducted on a product sector basis, as represented by various chapters or sections of the Harmonized System (HS) nomenclature.
Wholly Obtained and Minimal Operations or Processes
The Technical Committee shall develop harmonized definitions of:
The results of this work shall be submitted to the Committee within three months of receipt of the request from the Committee.
Substantial Transformation — Change in Tariff Classification
Substantial Transformation — Supplementary Criteria
Upon completion of the work under subparagraph (ii) for each product sector or individual product category where the exclusive use of the HS nomenclature does not allow for the expresson of substantial transformation, the Technical Committee:
Role of the Committee
On the basis of the principles listed in paragraph 1:
the Committee shall consider the interpretations and opinions of the Technical Committee periodically in accordance with the time-frames provided in subparagraphs (i), (ii) and (iii) of paragraph 2(c) with a view to endorsing such interpretations and opinions. The Committee may request the Technical Committee to refine or elaborate its work and/or to develop new approaches. To assist the Technical Committee, the Committee should provide its reasons for requests for additional work and, as appropriate, suggest alternative approaches;
upon completion of all the work identified in subparagraphs (i), (ii) and (iii) of paragraph 2(c), the Committee shall consider the results in terms of their overall coherence.
Results of the Harmonization Work Programme and Subsequent Work
ANNEX I
TECHNICAL COMMITTEE ON RULES OF ORIGIN
Responsibilities
1. The on-going responsibilities of the Technical Committee shall include the following:
at the request of any member of the Technical Committee, 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;
to furnish information and advice on any matters concerning the origin determination of goods as may be requested by any Member or the Committee;
to prepare and circulate periodic reports on the technical aspects of the operation and status of this Agreement; and
to review annually the technical aspects of the implementation and operation of Parts II and III.
2. The Technical Committee shall exercise such other responsibilities as the Committee may request of it.
3. The Technical Committee shall 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.
Representation
4. Each Member shall have the right to be represented on the Technical Committee. Each Member may nominate one delegate and one or more alternates to be its representatives on the Technical Committee. Such a Member so represented on the Technical Committee is hereinafter referred to as a ‘member’ of 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.
5. Members of the CCC which 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 shall attend meetings of the Technical Committee as observers.
6. Subject to the approval of the Chairman of the Technical Committee, the Secretary-General of the CCC (referred to in this Annex as ‘the Secretary-General’) may invite representatives of governments which are neither Members of the WTO nor members of the CCC and representatives of international governmental and trade organizations to attend meetings of the Technical Committee as observers.
7. Nominations of delegates, alternates and advisers to meetings of the Technical Committee shall be made to the Secretary-General.
Meetings
8. The Technical Committee shall meet as necessary, but not less than once a year.
Procedures
9. The Technical Committee shall elect its own Chairman and shall establish its own procedures.
ANNEX II
COMMON DECLARATION WITH REGARD TO PREFERENTIAL RULES OF ORIGIN
1. Recognizing that some Members apply preferential rules of origin, distinct from non-preferential rules of origin, the Members hereby agree as follows.
2. For the purposes of this Common Declaration, preferential rules of origin shall be defined as those laws, regulations and administrative determinations of general application applied by any Member to determine whether goods qualify for preferential treatment under contractual or autonomous trade regimes leading to the granting of tariff preferences going beyond the application of paragraph 1 of Article I of GATT 1994.
3. The Members agree to ensure that:
when they issue administrative determinations of general application, the requirements to be fulfilled are clearly defined. In particular:
in cases where the criterion of change of tariff classification is applied, such a preferential rule of origin, and any exceptions to the rule, must clearly specify the subheadings or headings within the tariff nomenclature that are addressed by the rule;
in cases where the ad valorem percentage criterion is applied, the method for calculating this percentage shall also be indicated in the preferential rules of origin;
in cases where the criterion of manufacturing or processing operation is prescribed, the operation that confers preferential origin shall be precisely specified;
their preferential rules of origin are based on a positive standard. Preferential rules of origin that state what does not confer preferential origin (negative standard) are permissible as part of a clarification of a positive standard or in individual cases where a positive determination of preferential origin is not necessary;
their laws, regulations, judicial decisions and administrative rulings of general application relating to preferential rules of origin are published as if they were subject to, and in accordance with, the provisions of paragraph 1 of Article X of GATT 1994;
upon request of an exporter, importer or any person with a justifiable cause, assessments of the preferential origin they would accord to a good are issued as soon as possible but no later than 150 days ( 64 ) after a request for such an assessment provided that all necessary elements have been submitted. Requests for such assessments shall be accepted before trade in the good concerned begins and may be accepted at any later point in time. Such assessments shall remain valid for three years provided that the facts and conditions, including the preferential rules of origin, under which they have been made remain comparable. Provided that the parties concerned are informed in advance, such assessments will no longer be valid when a decision contrary to the assessment is made in a review as referred to in subparagraph (f). Such assessments shall be made publicly available subject to the provisions of subparagraph (g);
when introducing changes to their preferential rules of origin or new preferential rules of origin, they shall not apply such changes retroactively as defined in, and without prejudice to, their laws or regulations;
any administrative action which they take in relation to the determination of preferential origin is reviewable promptly by judicial, arbitral or administrative tribunals or procedures, independent of the authority issuing the determination, which can effect the modification or reversal of the determination;
all information that is by nature confidential or that is provided on a confidential basis for the purpose of the application of preferential rules of origin is treated as strictly confidential by the authorities concerned, which shall not disclose it without the specific permission of the person or government providing such information, except to the extent that it may be required to be disclosed in the context of judicial proceedings.
4. Members agree to provide to the Secretariat promptly their preferential rules of origin, including a listing of the preferential arrangements to which they apply, judicial decisions, and administrative rulings of general application relating to their preferential rules of origin in effect on the date of entry into force of the WTO Agreement for the Member concerned. Furthermore, Members agree to provide any modifications to their preferential rules of origin or new preferential rules of origin as soon as possible to the Secretariat. Lists of information received and available with the Secretariat shall be circulated to the Members by the Secretariat.
AGREMEENT ON IMPORT LICENSING PROCEDURES
MEMBERS,
Having regard to the Multilateral Trade Negotiations;
Desiring to further the objectives of GATT 1994;
Taking into account the particular trade, development and financial needs of developing country Members;
Recognizing the usefulness of automatic import licensing for certain purposes and that such licensing should not be used to restrict trade;
Recognizing that import licensing may be employed to administer measures such as those adopted pursuant to the relevant provisions of GATT 1994;
Recognizing the provisions of GATT 1994 as they apply to import licensing procedures;
Desiring to ensure that import licensing procedures are not utilized in a manner contrary to the principles and obligations of GATT 1994;
Recognizing that the flow of international trade could be impeded by the inappropriate use of import licensing procedures;
Convinced that import licensing, particularly non-automatic import licensing, should be implemented in a transparent and predictable manner;
Recognizing that non-automatic licensing procedures should be no more administratively burdensome than abolutely necessary to administer the relevant measure;
Desiring to simplify, and bring transparency to, the administrative procedures and practices used in international trade, and to ensure the fair and equitable application and administration of such procedures and practices;
Desiring to provide for a consultative mechanism and the speedy, effective and equitable resolution of disputes arising under this Agreement;
HEREBY AGREE AS FOLLOWS:
Article 1
General Provisions
The rules and all information concerning procedures for the submission of applications, including the eligibility of persons, firms and institutions to make such applications, the administrative body(ies) to be approached, and the lists of products subject to the licensing requirement shall be published, in the sources notified to the Committee on Import Licensing provided for in Article 4 (referred to in this Agreement as ‘the Committee’), in such a manner as to enable governments ( 67 ) and traders to become acquainted with them. Such publication shall take place, whenever practicable, 21 days prior to the effective date of the requirement but in all events not later than such effective date. Any exception, derogations or changes in or from the rules concerning licensing procedures or the list of products subject to import licensing shall also be published in the same manner and within the same time periods as specified above. Copies of these publications shall also be made available to the Secretariat.
Members which wish to make comments in writing shall be provided the opportunity to discuss these comments upon request. The concerned Member shall give due consideration to these comments and results of discussion.
Article 2
Automatic Import Licensing ( 68 )
The following provisions ( 69 ), in addition to those in paragraphs 1 through 11 of Article 1 and paragraph 1 of this Article, shall apply to automatic import licensing procedures:
automatic licensing procedures shall not be administered in such a manner as to have restricting effects on imports subject to automatic licensing. Automatic licensing procedures shall be deemed to have trade-restricting effects unless inter alia:
any person, firm or institution which fulfils the legal requirements of the importing Member for engaging in import operations involving products subject to automatic licensing is equally eligible to apply for and to obtain import licences;
applications for licences may be submitted on any working day prior to the customs clearance of the goods;
applications for licences when submitted in appropriate and complete form are approved immediately on receipt, to the extent administratively feasible, but within a maximum of 10 working days;
Members recognize that automatic import licensing may be necessary whenever other appropriate procedures are not available. Automatic import licensing may be maintained as long as the circumstances which gave rise to its introduction prevail and as long as its underlying administrative purposes cannot be achieved in a more appropriate way.
Article 3
Non-Automatic Import Licensing
Members shall provide, upon the request of any Member having an interest in the trade in the product concerned, all relevant information concerning:
the administration of the restrictions;
the import licences granted over a recent period;
the distribution of such licences among supplying countries;
where practicable, import statistics (i.e. value and/or volume) with respect to the products subject to import licensing. Developing country Members would not be expected to take additional administrative or financial burdens on this account;
Members administering quotas by means of licensing shall published the overall amount of quotas to be applied by quantity and/or value, the opening and closing dates of quotas, and any change thereof, within the time periods specified in paragraph 4 of Article 1 and in such a manner as to enable governments and traders to become acquainted with them;
in the case of quotas allocated among supplying countries, the Member applying the restrictions shall promptly inform all other Members having an interest in supplying the product concerned of the shares in the quota currently allocated, by quantity or value, to the various supplying countries and shall publish this information within the time periods specified in paragraph 4 of Article 1 and in such a manner as to enable governmens and traders to become acquainted with them;
where situations arise which make it necessary to provide for an early opening date of quotas, the information referred to in paragraph 4 of Article 1 should be published within the time periods specified in paragraph 4 of Article 1 and in such a manner as to enable governments and traders to become acquainted with them;
any person, firm or institution which fulfils the legal and administrative requirements of the importing Member shall be equally eligible to apply and to be considered for a licence. If the licence application is not approved, the applicant shall, on request, be given the reason therefor and shall have a right of appeal or review in accordance with the domestic legislation or procedures of the importing Member;
the period for processing applications shall, except when not possible for reasons outside the control of the Member, not be longer than 30 days if applications are considered as and when received, i.e. on a first-come first-served basis, and no longer than 60 days if all applications are considered simultaneously. In the latter case, the period for processing applications shall be considered to begin on the day following the closing date of the announced application period;
the period of licence validity shall be of reasonable duration and not be so short as to preclude imports. The period of licence validity shall not preclude imports from distant sources, except in special cases where imports are necessary to meet unforeseen short-term requirements;
when administering quotas, Members shall not prevent importation from being effected in accordance with the issued licences, and shall not discourage the full utilization of quotas;
when issuing licences, Members shall take into account the desirability of issuing licences for products in economic quantities;
in allocating licences, the Member should consider the import performance of the applicant. In this regard, consideration should be given as to whether licences issued to applicants in the past have been fully utilized during a recent representative period. In cases where licences have not been fully utilized, the Member shall examine the reasons for this and take these reasons into consideration when allocating new licences. Consideration shall also be given to ensuring a reasonable distribution of licences to new importers, taking into account the desirability of issuing licences for products in economic quantities. In this regard, special consideration should be given to those importers importing products originating in developing country Members and, in particular, the least-developed country Members;
in the case of quotas administered through licences which are not allocated among supplying countries, licence holders ( 70 ) shall be free to choose the sources of imports. In the case of quotas allocated among supplying countries, the licence shall clearly stipulate the country or countries;
in applying paragraph 8 of Article 1, compensating adjustments may be made in future licence allocations where imports exceeded a previous licence level.
Article 4
Institutions
There is hereby established a Committee on Import Licensing composed of representatives from each of the Members. The Committee shall elect its own Chairman and Vice-Chairman and shall meet as necessary for the purpose of affording Members the opportunity of consulting on any matters relating to the operation of this Agreement or the furtherance of its objectives.
Article 5
Notification
Notifications of the institution of import licensing procedures shall include the following information:
list of products subject to licensing procedures;
contact point for information on eligibility;
administrative body(ies) for submission of applications;
date and name of publication where licensing procedures are published;
indication of whether the licensing procedure is automatic or non-automatic according to definitions contained in Articles 2 and 3;
in the case of automatic import licensing procedures, their administrative purpose;
in the case of non-automatic import licensing procedures, indication of the measure being implemented through the licensing procedure; and
expected duration of the licensing procedure if this can be estimated with some probability, and if not, reason why this information cannot be provided.
Article 6
Consultation and Dispute Settlement
Consultations and the settlement of disputes with respect to any matter affecting the operation of this Agreement shall be subject to the provisions of Articles XXII and XXIII of GATT 1994, as elaborated and applied by the Dispute Settlement Understanding.
Article 7
Review
Article 8
Final Provisions
Reservations
Domestic Legislation
Each Member shall ensure, not latter than the date of entry into force of the WTO Agreement for it, the conformity of its laws, regulations and administrative procedures with the provisions of this Agreement.
Each Member shall inform the Committee of any changes in its laws and regulations relevant to this Agreement and in the administration of such laws and regulations.
AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES
MEMBERS HEREBY AGREE AS FOLLOWS:
PART I
GENERAL PROVISIONS
Article 1
Definition of a Subsidy
1.1. For the purpose of this Agreement, a subsidy shall be deemed to exist if:
there is a financial contribution by a government or any public body within the territory of a Member (referred to in this Agreement as ‘government’), i.e. where:
a government practice involves a direct transfer of funds (e.g. grants, loans, and equity infusion), potential direct transfers of funds or liabilities (e.g. loan guarantees);
government revenue that is otherwise due is foregone or not collected (e.g. fiscal incentives such as tax credits) ( 72 );
a government provides goods or services other than general infrastructure, or purchases goods;
a government makes payments to a funding mechanism, or entrusts or directs a private body to carry out one or more of the type of functions illustrated in (i) to (iii) above which would normally be vested in the government and the practice, in no real sense, differs from practices normally followed by governments;
or
there is any form of income or price support in the sense of Article XVI of GATT 1994;
and
a benefit is thereby conferred.
1.2. A subsidy as defined in paragraph 1 shall be subject to the provisions of Part II or shall be subject to the provisions of Part III or V only if such a subsidy is specific in accordance with the provisions of Article 2.
Article 2
Specificity
2.1. In order to determine whether a subsidy, as defined in paragraph 1 of Article 1, is specific to an enerprise or industry or group of enterprises or industries (referred to in this Agreement as ‘certain enterprises’) within the jurisdiction of the granting authority, the following principles shall apply:
Where the granting authority, or the legislation pursuant to which the granting authority operates, explicitly limits access to a subsidy to certain enterprises, such subsidy shall be specific.
Where the granting authority, or the legislation pursuant to which the granting authority operates, establishes objective criteria or conditions ( 73 ) governing the eligibility for, and the amount of, a subsidy, specificity shall not exist, provided that the eligibility is automatic and that such criteria and conditions are strictly adhered to. The criteria or conditions must be clearly spelled out in law, regulation, or other official document, so as to be capable of verification.
If, notwithstanding any appearance of non-specificity resulting from the application of the principles laid down in subparagraphs (a) and (b), there are reasons to believe that the subsidy may in fact be specific, other factors may be considered. Such factors are: use of a subsidy programme by a limited number of certain enterprises, predominant use by certain enterprises, the granting of disproportionately large amounts of subsidy to certain enterprises, and the manner in which discretion has been exercised by the granting authority in the decision to grant a subsidy ( 74 ). In applying this subparagraph, account shall be taken of the extent of diversification of economic activities wihin the jurisdiction of the granting authority, as well as of the length of time during which the subsidy programme has been in operation.
2.2. A subsidy which is limited to certain enterprises located within a designated geographical region within the jurisdiction of the granting authority shall be specific. It is understood that the setting or change of generally applicable tax rates by all levels of government entitled to do so shall not be deemed to be a specific subsidy for the purposes of this Agreement.
2.3. Any subsidy falling under the provisions of Article 3 shall be deemed to be specific.
2.4. Any determination of specificity under the provisions of this Article shall be clearly substantiated on the basis of positive evidence.
PART II
PROHIBITED SUBSIDIES
Article 3
Prohibition
3.1. Except as provided in the Agreement on Agriculture, the following subsidies, wihin the meaning of Article 1, shall be prohibited:
subsidies contingent, whether solely or as one of several other conditions, upon the use of domestic over imported goods.
3.2. A Member shall neither grant nor maintain subsidies referred to in paragraph 1.
Article 4
Remedies
4.1. Whenever a Member has reason to believe that a prohibited subsidy is being granted or maintained by another Member, such Member may request consultations with such other Member.
4.2. A request for consultations under paragraph 1 shall include a statement of available evidence with regard to the exisence and nature of the subsidy in question.
4.3. Upon request for consultations under paragraph 1, the Member believed to be granting or maintaining the subsidy in question shall enter into such consultations as quickly as possible. The purpose of the consultations shall be to clarify the facts of the situation and to arrive at a mutually agreed solution.
4.4. If no mutually agreed solution has been reached within 30 days ( 77 ) of the request for consultations, any Member party to such consultations may refer the matter to the Dispute Settlement Body (‘DSB’) for the immediate establishment of a panel, unless the DSB decides by consensus not to establish a panel.
4.5. Upon its establishment, the panel may request the assistance of the Permanent Group of Experts ( 78 ) (referred to in this Agreement as the ‘PGE’) with regard to whether the measure in question is a prohibited subsidy. If so requested, the PGE shall immediately review the evidence with regard to the existence and nature of the measure in question and shall provide an. opportunity for the Member applying or maintaining the measure to demonstrate that the measure in question is not a prohibited subsidy. The PGE shall report its conclusions to the panel within a time limit determined by the panel. The PGE's conclusions on the issue of whether or not the measure in question is a prohibited subsidy shall be accepted by the panel without modification.
4.6. The panel shall submit its final report to the parties to the dispute. The report shall be circulated to all Members within 90 days of the date of the composition and the establishment of the panel's terms of reference.
4.7. If the measure in question is found to be a prohibited subsidy, the panel shall recommend that the subsidizing Member withdraw the subsidy without delay. In this regard, the panel shall specify in its recommendation the time period within which the measure must be withdrawn.
4.8. Within 30 days of the issuance of the panel's report to all Members, the report shall be adopted by the DSB unless one of the parties to the dispute formally notifies the DSB of its decision to appeal or the DSB decides by consensus not to adopt the report.
4.9. Where a panel report is appealed, the Appellate Body shall issue its decision within 30 days from the date when the party to the dispute formally notifies its intention to appeal. When the Appellate Body considers that it cannot provide its report within 30 days, it shall inform the DSB in writing of the reasons for the delay together with an estimate of the period within which it will submit its report. In no case shall the proceedings exceed 60 days. The apellate report shall be adopted by the DSB and unconditionally accepted by the parties to the dispute unless the DSB decides by consensus not to adopt the appellate report within 20 days following its issuance to the Members ( 79 ).
4.10. In the event the recommendation of the DSB is not followed within the time period specified by the panel, which shall commence from the date of adoption of the panel's report or the Appellate Body's report, the DSB shall grant authorization to the complaining Member to take appropriate ( 80 ) counter-measures, unless the DSB decides by consensus to reject the request.
4.11. In the event a party to the dispute requests arbitration under paragraph 6 of Article 22 of the Dispute Settlement Understanding (‘DSU’), the arbitrator shall determine whether the counter-measures are appropriate ( 81 ).
4.12. For purposes of disputes conducted pursuant to this Article, except for time periods specifically prescribed in this Article, time periods applicable under the DSU for the conduct of such disputes shall be half the time prescribed therein.
PART III
ACTIONABLE SUBSIDIES
Article 5
Adverse Effects
No Member should cause, through the use of any subsidy referred to in paragraphs 1 and 2 of Article 1, adverse effects to the interests of other Members, i.e.:
injury to the domestic industry of another Member ( 82 );
nullification or impairment of benefits accruing directly or indirectly to other Members under GATT 1994 in particular the benefits of concessions bound under Article II of GATT 1994 ( 83 );
serious prejudice to the interests of another Member ( 84 ).
This Article does not apply to subsidies maintained on agricultural products as provided in Article 13 of the Agreement on Agriculture.
Article 6
Serious Prejudice
6.1. Serious prejudice in the sense of paragraph (c) of Article 5 shall be deemed to exist in the case of:
subsidies to cover operating losses sustained by an industry;
subsidies to cover operating losses sustained by an enterprise, other than one-time measures which are non-recurrent and cannot be repeated for that enterprise and which are given merely to provide time for the development of long-term solutions and to avoid acute social problems;
direct forgiveness of debt, i.e. forgiveness of government-held debt, and grants to cover debt repayment ( 87 ).
6.2. Notwithstanding the provisions of paragraph 1, serious prejudice shall not be found if the subsidizing Member demonstrates that the subsidy in question has not resulted in any of the effects enumerated in paragraph 3.
6.3. Serious prejudice in the sense of paragraph (c) of Article 5 may arise in any case where one or several of the following apply:
the effect of the subsidy is to displace or impede the imports of a like product of another Member into the market of the subsidizing Member;
the effect of the subsidy is to displace or impede the exports of a like product of another Member from a third-country market;
the effect of the subsidy is a significant price undercutting by the subsidized product as compared with the price of a like product of another Member in the same market or significant price suppression, price depression or lost sales in the same market;
the effect of the subsidy is an increase in the world market share of the subsidizing Member in a particular subsidized primary product or commodity ( 88 ) as compared to the average share it had during the previous period of three years and this increase follows a consistent trend over a period when subsidies have been granted.
6.4. For the purpose of paragraph 3(b), the displacement or impeding of exports shall include any case in which, subject to the provisions of paragraph 7, it has been demonstrated that there has been a change in relative shares of the market to the disadvantage of the non-subsidized like product (over an appropriately representative period sufficient to demonstrate clear trends in the development of the market for the product concerned, which, in normal circumstances, shall be at least one year). ‘Change in relative shares of the market’ shall include any of the following situations: (a) there is an increase in the market share of the subsidized product; (b) the market share of the subsidized product remains constant in circumstances in which, in the absence of the subsidy, it would have declined; (c) the market share of the subsidized product declines, but at a slower rate than would have been the case in the absence of the subsidy.
6.5. For the purpose of paragraph 3(c), price undercutting shall include any case in which such price undercutting has been demonstrated through a comparison of prices of the subsidized product with prices of a non-subsidized like product supplied to the same market. The comparison shall be made at the same level of trade and at comparable times, due account being taken of any other factor affecting price comparability. However, if such a direct comparison is not possible, the existence of price undercutting may be demonstrated on the basis of export unit values.
6.6. Each Member in the market of which serious prejudice is alleged to have arisen shall, subject to the provisions of paragraph 3 of Annex V, make available to the parties to a dispute arising under Article 7, and to the panel established pursuant to paragraph 4 of Article 7, all relevant information that can be obtained as to the changes in market shares of the parties to the dispute as well as concerning prices of the products involved.
6.7. Displacement or impediment resulting in serious prejudice shall not arise under paragraph 3 where any of the following circumstances exist ( 89 ) during the relevant period:
prohibition or restriction on exports of the like product from the complaining Member or on imports from the complaining Member into the third country market concerned;
decision by an importing government operating a monopoly of trade or State trading in the product concerned to shift, for non-commercial reasons, imports from the complaining Member to another country or countries;
natural disasters, strikes, transport disruptions or other force majeure substantially affecting production, qualities, quantities or prices of the product available for export from the complaining Member;
existence of arrangements limiting exports from the complaining Member;
voluntary decrease in the availability for export of the product concerned from the complaining Member (including inter alia a situation where firms in the complaining Member have been autonomously re-allocating exports of this product to new markets);
failure to conform to standards and other regulatory requirements in the importing country.
6.8. In the absence of circumstances referred to in paragraph 7, the existence of serious prejudice should be determined on the basis of the information submitted to or obtained by the panel, including information submitted in accordance with the provisions of Annex V.
6.9. This Article does not apply to subsidies maintained on agricultural products as provided in Article 13 of the Agreement on Agriculture.
Article 7
Remedies
7.1. Except as provided in Article 13 of the Agreement on Agriculture, whenever a Member has reason to believe that any subsidy referred to in Article 1, granted or maintained by another Member, results in injury to its domestic industry, nullification or impairment or serious prejudice, such Member may request consultations with such other Member.
7.2. A request for consultations under paragraph 1 shall include a statement of available evidence with regard to (a) the existence and nature of the subsidy in question, and (b) the injury caused to the domestic industry, or the nullification or impairment, or serious prejudice ( 90 ) caused to the interests of the Member requesting consultations.
7.3. Upon request for consultations under paragraph 1, the Member believed to be granting or maintaining the subsidy practice in question shall enter into such consultations as quickly as possible. The purpose of the consultations shall be to clarify the facts of the situation and to arrive at a mutually agreed solution.
7.4. If consultations do not result in a mutually agreed solution within 60 days ( 91 ), any Member party to such consultations may refer the matter to the DSB for the establishment of a panel, unless the DSB decides by consensus not to establish a panel. The composition of the panel and its terms of reference shall be established within 15 days from the date when it is established.
7.5. The panel shall review the matter and shall submit its final report to the parties to the dispute. The report shall be circulated to all Members within 120 days of the date of the composition and establishment of the panel's terms of reference.
7.6. Within 30 days of the issuance of the panel's report to all Members, the report shall be adopted by the DSB ( 92 ) unless one of the parties to the dispute formally notifies the DSB of its decision to appeal or the DSB decides by consensus not to adopt the report.
7.7. Where a panel report is appealed, the Appellate Body shall issue its decision within 60 days from the date when the party to the dispute formally notifies its intention to appeal. When the Appellate Body considers that it cannot provide its report within 60 days, it shall inform the DSB in writing of the reasons for the delay together with an estimate of the period within which it will submit its report. In no case shall the proceedings exceed 90 days. The appellate report shall be adopted by the DSB and unconditionally accepted by the parties to the dispute unless the DSB decides by consensus not to adopt the appellate report within 20 days following its issuance to the Members (92) .
7.8. Where a panel report or an Appellate Body report is adopted in which it is determined that any subsidy has resulted in adverse effects to the interests of another Member within the meaning of Article 5, the Member granting or maintaining such subsidy shall take appropriate steps to remove the adverse effects or shall withdraw the subsidy.
7.9. In the event the Member has not taken appropriate steps to remove the adverse effects of the subsidy or withdraw the subsidy within six months from the date when the DSB adopts the panel report or the Appellate Body report, and in the absence of agreement on compensation, the DSB shall grant authorization to the complaining Member to take counter-measures, commensurate with the degree and nature of the adverse effects determined to exist, unless the DSB decides by consensus to reject the request.
7.10. In the event that a party to the dispute requests arbitration under paragraph 6 of Article 22 of the DSU, the arbitrator shall determine whether the counter-measures are commensurate with the degree and nature of the adverse effects determined to exist.
PART IV
NON-ACTIONABLE SUBSIDIES
Article 8
Identification of Non-Actionable Subsidies
8.1. The following subsidies shall be considered as non-actionable ( 93 ):
subsidies which are not specific within the meaning of Article 2;
subsidies which are specific within the meaning of Article 2 but which meet all of the conditions provided for in paragraphs 2(a), 2(b) or 2(c) below.
8.2. Notwithstanding the provisions of Parts III and V, the following subsidies shall be non-actionable:
assistance for research activities conducted by firms or by higher education or research establishments on a contract basis with firms if: ( 94 ) ( 95 ) ( 96 )
the assistance covers ( 97 ) not more than 75 per cent of the costs of industrial research ( 98 ) or 50 per cent of the costs of pre-competitive development activity ( 99 ) ( 100 );
and provided that such assistance is limited exclusively to:
costs of personnel (researchers, technicians and other supporting staff employed exclusively in the research activity);
costs of instruments, equipment, land and buildings used exclusively and permanently (except when disposed of on a commercial basis) for the research activity;
costs of consultancy and equivalent services used exclusively for the research activity, including bought-in research, technical knowledge, patents, etc.;
additional overhead costs incurred directly as a result of the research activity;
other running costs (such as those of materials, supplies and the like), incurred directly as a result of the research activity.
assistance to disadvantaged regions within the territory of a Member given pursuant to a general framework of regional development ( 101 ) and non-specific (within the meaning of Article 2) within eligible regions provided that:
Each disadvantaged region must be a clearly designated contiguous geographical area with a definable economic and administrative identity;
the region is considered as disadvantaged on the basis of neutral and objective criteria ( 102 ), indicating that the region's difficulties arise out of more than temporary circumstances; such criteria must be clearly spelled out in law, regulation, or other official document, so as to be capable of verification;
the criteria shall include a measurement of economic development which shall be based on at least one of the following factors:
as measured over a three-year period; such measurement, however, may be a composite one and may include other factors.
assistance to promote adaptation of existing facilities ( 103 ) to new environmental requirements imposed by law and/or regulations which result in greater constraints and financial burden on firms, provided that the assistance:
is a one-time non-recurring measure; and
is limited to 20 per cent of the cost of adaptation; and
does not cover the cost of replacing and operating the assisted investment, which must be fully borne by firms; and
is directly linked to and proportionate to a firm's planned reduction of nuisances and pollution, and does not cover any manufacturing cost savings which may be achieved; and
is available to all firms which can adopt the new equipment and/or production processes.
8.3. A subsidy programme for which the provisions of paragraph 2 are invoked shall be notified in advance of its implementation to the Committee in accordance with the provisions of Part VII. Any such notification shall be sufficiently precise to enable other Members to evaluate the consistency of the programme with the conditions and criteria provided for in the relevant provisions of paragraph 2. Members shall also provide the Committee with yearly updates of such notifications, in particular by supplying information on global expenditure for each programme, and on any modification of the programme. Other Members shall have the right to request information about individual cases of subsidization under a notified programme ( 104 ).
8.4. Upon request of a Member, the Secretariat shall review a notification made pursuant to paragraph 3 and, where necessary, may require additional information from the subsidizing Member concerning the notified programme under review. The Secretariat shall report its findings to the Committee. The Committee shall, upon request, promptly review the findings of the Secretariat (or, if a review by the Secretariat has not been requested, the notification itself), with a view to determining whether the conditions and criteria laid down in paragraph 2 have not been met. The procedure provided for in this paragraph shall be completed at the latest at the first regular meeting of the Committee following the notification of a subsidy programme, provided that at least two months have elapsed between such notification and the regular meeting of the Committee. The review procedure described in this paragraph shall also apply, upon request, to substantial modifications of a programme notified in the yearly updates referred to in paragraph 3.
8.5. Upon the request of a Member, the determination by the Committee referred to in paragraph 4, or a failure by the Committee to make such a determination, as well as the violation, in individual cases, of the conditions set out in a notified programme, shall be submitted to binding arbitration. The arbitration body shall present its conclusions to the Members within 120 days from the date when the matter was referred to the arbitration body. Except as otherwise provided in this paragraph, the DSU shall apply to arbitrations conducted under this paragraph.
Article 9
Consultations and Authorized Remedies
9.1. If, in the course of implementation of a programme referred to in paragraph 2 of Article 8, notwithstanding the fact that the programme is consistent with the criteria laid down in that paragraph, a Member has reasons to believe that this programme has resulted in serious adverse effects to the domestic industry of that Member, such as to cause damage which would be difficult to repair, such Member may request consultations with the Member granting or maintaining the subsidy.
9.2. Upon request for consultations under paragraph 1, the Member granting or maintaining the subsidy programme in question shall enter into such consultations as quickly as possible. The purpose of the consultations shall be to clarify the facts of the situation and to arrive at a mutually acceptable solution.
9.3. If no mutually acceptable solution has been reached in consultations under paragraph 2 within 60 days of the request for such consultations, the requesting Member may refer the matter to the Committee.
9.4. Where a matter is referred to the Committee, the Committee shall immediately review the facts involved and the evidence of the effects referred to in paragraph 1. If the Committee determines that such effects exist, it may recommend to the subsidizing Member to modify this programme in such a way as to remove these effects. The Committee shall present its conclusions within 120 days from the date when the matter is referred to it under paragraph 3. In the event the recommendation is not followed within six months, the Committee shall authorize the requesting Member to take appropriate counter-measures commensurate with the nature and degree of the effects determined to exist.
PART V
COUNTERVAILING MEASURES
Article 10
Application of Article VI of GATT 1994 ( 105 )
Members shall take all necessary steps to ensure that the imposition of a countervailing duty ( 106 ) on any product of the territory of any Member imported into the territory of another Member is in accordance with the provisions of Article VI of GATT 1994 and the terms of this Agreement. Countervailing duties may only be imposed pursuant to investigations initiated ( 107 ) and conducted in accordance with the provisions of this Agreement and the Agreement on Agriculture.
Article 11
Initiation and Subsequent Investigation
11.1. Except as provided in paragraph 6, an investigation to determine the existence, degree and effect of any alleged subsidy shall be initiated upon a written application by or on behalf of the domestic industry.
11.2. An application under paragraph 1 shall include sufficient evidence of the existence of (a) a subsidy and, if possible, its amount, (b) injury within the meaning of Article VI of GATT 1994 as interpreted by this Agreement, and (c) a causal link between the subsidized imports and the alleged injury. Simple assertion, unsubstantiated by relevant evidence, cannot be considered sufficient to meet the requirements of this paragraph. The application shall contain such information as is reasonably available to the applicant on the following:
the identity of the applicant and a description of the volume and value of the domestic production of the like product by the applicant. Where a written application is made on behalf of the domestic industry, the application shall identify the industry on behalf of which the application is made by a list of all known domestic producers of the like product (or associations of domestic producers of the like product) and, to the extent possible, a description of the volume and value of domestic production of the like product accounted for by such producers;
a complete description of the allegedly subsidized product, the names of the country or countries of origin or export in question, the identity of each known exporter or foreign producer and a list of known persons importing the product in question;
evidence with regard to the existence, amount and nature of the subsidy in question;
evidence that alleged injury to a domestic industry is caused by subsidized imports through the effects of the subsidies; this evidence includes information on the evolution of the volume of the allegedly subsidized imports, the effect of these imports on prices of the like product in the domestic market and the consequent impact of the imports on the domestic industry, as demonstrated by relevant factors and indices having a bearing on the state of the domestic industry, such as those listed in paragraphs 2 and 4 of Article 15.
11.3. The authorities shall review the accuracy and adequacy of the evidence provided in the application to determine whether the evidence is sufficient to justify the initiation of an investigation.
11.4. An investigation shall not be initiated pursuant to paragraph 1 unless the authorities have determined, on the basis of an examination of the degree of support for, or opposition to, the application expressed ( 108 ) by domestic producers of the like product, that the application has been made by or on behalf of the domestic industry ( 109 ). The application shall be considered to have been made ‘by or on behalf of the domestic industry’ if it is supported by those domestic producers whose collective output constitutes more than 50 per cent of the total production of the like product produced by that portion of the domestic industry expressing either support for or opposition to the application. However, no investigation shall be initiated when domestic producers expressly supporting the application account for less than 25 per cent of total production of the like product produced by the domestic industry.
11.5. The authorities shall avoid, unless a decision has been made to initiate an investigation, any publicizing of the application for the initiation of an investigation.
11.6. If, in special circumstances, the authorities concerned decide to initiate an investigation without having received a written application by or on behalf of a domestic industry for the initiation of such investigation, they shall proceed only if they have sufficient evidence of the existence of a subsidy, injury and causal link, as described in paragraph 2, to justify the initiation of an investigtion.
11.7. The evidence of both subsidy and injury shall be considered simultaneously (a) in the decision whether or not to initiate an investigation and (b) thereafter, during the course of the investigation, starting on a date not later than the earliest date on which in accordance with the provisions of this Agreement provisional measures may be applied.
11.8. In cases where products are not imported directly from the country of origin but are exported to the importing Member from an intermediate country, the provisions of this Agreement shall be fully applicable and the transaction or transactions shall, for the purposes of this Agreement, be regarded as having taken place between the country of origin and the importing Member.
11.9. An application under paragraph 1 shall be rejected and an investigation shall be terminated promptly as soon as the authorities concerned are satisfied that there is not sufficient evidence of either subsidization or of injury to justify proceeding with the case. There shall be immediate termination in cases where the amount of a subsidy is de minimis, or where the volume of subsidized imports, actual or potential, or the injury, is negligible. For the purpose of this paragraph, the amount of the subsidy shall be considered to be de minimis if the subsidy is less than 1 per cent ad valorem.
11.10. An investigation shall not hinder the procedures of customs clearance.
11.11. Investigations shall, except in special circumstances, be concluded within one year, and in no case more than 18 months, after their initiation.
Article 12
Evidence
12.1. Interested Members and all interested parties in a countervailing duty investigation shall be given notice of the information which the authorities require and ample opportunity to present in writing all evidence which they consider relevant in respect of the investigation in question.
Exporters, foreign producers or interested Members receiving questionnaires used in a countervailing duty investigation shall be given at least 30 days for reply ( 110 ). Due consideration should be given to any request for an extension of the 30-day period and, upon cause shown, such an extension should be granted whenever practicable.
Subject to the requirement to protect confidential information, evidence presented in writing by one interested Member or interested party shall be made available promptly to other interested Members or interested parties participating in the investigation.
As soon as an investigation has been initiated, the authorities shall provide the full text of the written application received under paragraph 1 of Article 11 to the known exporters ( 111 ) and to the authorities of the exporting Member and shall make it available, upon request, to other interested parties involved. Due regard shall be paid to the protection of confidential information, as provided for in paragraph 4.
12.2. Interested Members and interested parties also shall have the right, upon justification, to present information orally. Where such information is provided orally, the interested Members and interested parties subsequently shall be required to reduce such submissions to writing. Any decision of the investigating authorities can only be based on such information and arguments as were on the written record of this authority and which were available to interested Members and interested parties participating in the investigation, due account having been given to the need to protect confidential information.
12.3. The authorities shall whenever practicable provide timely opportunities for all interested Members and interested parties to see all information that is relevant to the presentation of their cases, that is not confidential as defined in paragraph 4, and that is used by the authorities in a countervailing duty investigation, and to prepare presentations on the basis of this information.
12.4. Any information which is by nature confidential (for example, because its disclosure would be of significant competitive advantage to a competitor or because its disclosure would have a significantly adverse effect upon a person supplying the information or upon a person from whom the supplier acquired the information), or which is provided on a confidential basis by parties to an investigation shall, upon good cause shown, be treated as such by the authorities. Such information shall not be disclosed without specific permission of the party submitting it ( 112 ).
The authorities shall require interested Members or interested parties providing confidential information to furnish non-confidential summaries thereof. These summaries shall be in sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence. In exceptional circumstances, such Members or parties may indicate that such information is not susceptible of summary. In such exceptional circumstances, a statement of the reasons why summarization is not possible must be provided.
If the authorities find that a request for confidentiality is not warranted and if the supplier of the information is either unwilling to make the information public or to authorize its disclosure in generalized or summary form, the authorities may disregard such information unless it can be demonstrated to their satisfaction from appropriate sources that the information is correct ( 113 ).
12.5. Except in circumstances provided for in paragraph 7, the authorities shall during the course of an investigation satisfy themselves as to the accuracy of the information supplied by interested Members or interested parties upon which their findings are based.
12.6. The investigating authorities may carry out investigation in the territory of other Members as required, provided that they have notified in good time the Member in question and unless that Member objects to the investigation. Further, the investigating authorities may carry out investigations on the premises of a firm and may examine the records of a firm if (a) the firm so agrees and (b) the Member in question is notified and does not object. The procedures set forth in Annex VI shall apply to investigations on the premises of a firm. Subject to the requirement to protect confidential information, the authorities shall make the results of any such investigations available, or shall provide disclosure thereof pursuant to paragraph 8, to the firms to which they pertain and may make such results available to the applicants.
12.7. In cases in which any interested Member or interested party refuses access to, or otherwise does not provide, necessary information within a reasonable period or significantly impedes the investigation, preliminary and final determinations, affirmative or negative, may be made on the basis of the facts available.
12.8. The authorities shall, before a final determination is made, inform all interested Members and interested parties of the essential facts under consideration which form the basis for the decision whether to apply definitive measures. Such disclosure should take place in sufficient time for the parties to defend their interests.
12.9. For the purposes of this Agreement, ‘interested parties’ shall include:
an exporter or foreign producer or the importer of a product subject to investigation, or a trade or business association a majority of the members of which are producers, exporters or importers of such product; and
a producer of the like product in the importing Member or a trade and business association a majority of the members of which produce the like product in the territory of the importing Member.
This list shall not preclude Members from allowing domestic or foreign parties other than those mentioned above to be included as interested parties.
12.10. The authorities shall provide opportunities for industrial users of the product under investigation, and for representative consumer organizations in cases where the product is commonly sold at the retail level, to provide information which is relevant to the investigation regarding subsidization, injury and causality.
12.11. The authorities shall take due account of any difficulties experienced by interested parties, in particular small companies, in supplying information requested, and shall provide any assistance practicable.
12.12. The procedures set out above are not intended to prevent the authorities of a Member from proceeding expeditiously with regard to initiating an investigation, reaching preliminary or final determinations, whether affirmative or negative, or from applying provisional or final measures, in accordance with relevant provisions of this Agreement.
Article 13
Consultations
13.1. As soon as possible after an application under Article 11 is accepted, and in any event before the initiation of any investigation, Members the products of which may be subject to such investigation shall be invited for consultations with the aim of clarifying the situation as to the matters referred to in paragraph 2 of Article 11 and arriving at a mutually agreed solution.
13.2. Furthermore, throughout the period of investigation, Members the products of which are the subject of the investigation shall be afforded a reasonable opportunity to continue consultations, with a view to clarifying the factual situation and to arriving at a mutually agreed solution ( 114 ).
13.3. Without prejudice to the obligation to afford reasonable opportunity for consultation, these provisions regarding consultations are not intended to prevent the authorities of a Member from proceeding expeditiously with regard to initiating the investigation, reaching preliminary or final determinations, whether affirmative or negative, or from applying provisional or final measures, in accordance with the provisions of this Agreement.
13.4. The Member which intends to initiate any investigation or is conducting such an investigation shall permit, upon request, the Member or Members the products of which are subject to such investigation access to non-confidential evidence, including the non-confidential summary of confidential data being used for initiating or conducting the investigation.
Article 14
Calculation of the Amount of a Subsidy in Terms of the Benefit to the Recipient
For the purpose of Part V, any method used by the investigating authority to calculate the benefit to the recipient conferred pursuant to paragraph 1 of Article 1 shall be provided for in the national legislation or implementing regulations of the Member concerned and its application to each particular case shall be transparent and adequately explained. Furthermore, any such method shall be consistent with the following guidelines:
government provision of equity capital shall not be considered as conferring a benefit, unless the investment decision can be regarded as inconsistent with the usual investment practice (including for the provision of risk capital) of private investors in the territory of that Member;
a loan by a government shall not be considered as conferring a benefit, unless there is a difference between the amount that the firm receiving the loan pays on the government loan and the amount the firm would pay on a comparable commercial loan which the firm could actually obtain on the market. In this case the benefit shall be the difference between these two amounts;
a loan guarantee by a government shall not be considered as conferring a benefit, unless there is a difference between the amount that the firm receiving the guarantee pays on a loan guaranteed by the government and the amount that the firm would pay on a comparable commercial loan absent the government guarantee. In the case the benefit shall be the difference between these two amounts adjusted for any differences in fees;
the provision of goods or services or purchase of goods by a government shall not be considered as conferring a benefit unless the provision is made for less than adequate remuneration, or the purchase is made for more than adequate remuneration. The adequacy of remuneration shall be determined in relation to prevailing market conditions for the good or service in question in the country of provision or purchase (including price, quality, availability, marketability, transportation and other conditions of purchase or sale).
Article 15
Determination of Injury ( 115 )
15.1. A determination of injury for purposes of Article VI of GATT 1994 shall be based on positive evidence and involve an objective examination of both (a) the volume of the subsidized imports and the effect of the subsidized imports on prices in the domestic market for like products ( 116 ) and (b) the consequent impact of these imports on the domestic producers of such products.
15.2. With regard to the volume of the subsidized imports, the investigating authorities shall consider whether there has been a significant increase in subsidized imports, either in absolute terms or relative to production or consumption in the importing Member. With regard to the effect of the subsidized imports on prices, the investigating authorities shall consider whether there has been a significant price undercutting by the subsidized imports as compared with the price of a like product of the importing Member, or whether the effect of such imports is otherwise to depress prices to a significant degree or to prevent price increases, which otherwise would have occurred, to a significant degree. No one or several of these factors can necessarily give decisive guidance.
15.3. Where imports of a product from more than one country are simultaneously subject to countervailing duty investigations, the investigating authorities may cumulatively assess the effects of such imports only if they determine that (a) the amount of subsidization established in relation to the imports from each country is more than de minimis as defined in paragraph 9 of Article 11 and the volume of imports from each country is not negligible and (b) a cumulative assessment of the effects of the imports is appropriate in light of the conditions of competition between the imported products and the conditions of competition between the imported products and the like domestic product.
15.4. The examination of the impact of the subsidized imports on the domestic industry shall include an evaluation of all relevant economic factors and indices having a bearing on the state of the industry, including actual and potential decline in output, sales, market share, profits, productivity, return on investments, or utilization of capacity; factors affecting domestic prices; actual and potential negative effects on cash flow, inventories, employment, wages, growth, ability to raise capital or investments and, in the case of agriculture, whether there has been an increased burden on government support programmes. This list is not exhaustive, nor can one or several of these factors necessarily give decisive guidance.
15.5. It must be demonstrated that the subsidized imports are, through the effects ( 117 ) of subsidies, causing injury within the meaning of this Agreement. The demonstration of a causal relationship between the subsidized imports and the injury to the domestic industry shall be based on the examination of all relevant evidence before the authorities. The authorities shall also examine any known factors other than the subsidized imports which at the same time are injuring the domestic industry, and the injuries caused by these other factors must not be attributed to the subsidized imports. Factors which may be relevant in this respect include inter alia the volumes and prices of non-subsidized imports of the product in question, contraction in demand or changes in the patterns of consumption, trade restrictive practices of and competition between the foreign and domestic producers, developments in technology and the export performance and productivity of the domestic industry.
15.6. The effect of the subsidized imports shall be assessed in relation to the domestic production of the like product when available data permit the separate identification of that production on the basis of such criteria as the production process, producers' sales and profits. If such separate identification of that production is not possible, the effects of the subsidized imports shall be assessed by the examination of the production of the narrowest group or range of products, which includes the like product, for which the necessary information can be provided.
15.7. A determination of a threat of material injury shall be based on facts and not merely on allegation, conjecture or remote possibility. The change in circumstances which would create a situation in which the subsidy would cause injury must be clearly foreseen and imminent. In making a determination regarding the existence of a threat of material injury, the investigating authorities should consider inter alia such factors as:
nature of the subsidy or subsidies in question and the trade effects likely to arise therefrom;
a significant rate of increase of subsidized imports into the domestic market indicating the likelihood of substantially increased importation;
sufficient freely disposable, or an imminent, substantial increase in, capacity of the exporter indicating the likelihood of substantially increased subsidized exports to the importing Member's market, taking into account the availability of other export markets to absorb any additional exports;
whether imports are entering at prices that will have a significant depressing or suppressing effect on domestic prices, and would likely increase demand for further imports; and
inventories of the product being investigated.
No one of these factors by itself can necessarily give decisive guidance but the totality of the factors considered must lead to the conclusion that further subsidized exports are imminent and that, unless protective action is taken, material injury would occur.
15.8. With respect to cases where injury is threatened by subsidized imports, the application of countervailing measures shall be considered and decided with special care.
Article 16
Definition of Domestic Industry
16.1. For the purposes of this Agreement, the term ‘domestic industry’ shall, except as provided in paragraph 2, be interpreted as referring to the domestic producers as a whole of the like products or to those of them whose collective output of the products constitutes a major proportion of the total domestic production of those products, except that when producers are related ( 118 ) to the exporters or importers or are themselves importers of the allegedly subsidized product or a like product from other countries, the term ‘domestic industry’ may be interpreted as referring to the rest of the producers.
16.2. In exceptional circumstances, the territory of a Member may, for the production in question, be divided into two or more competitive markets and the producers within each market may be regarded as a separate industry if (a) the producers within such market sell all or almost all of their production of the product in question in that market, and (b) the demand in that market is not to any substantial degree supplied by producers of the product in question located elsewhere in the territory. In such circumstances, injury may be found to exist even where a major portion of the total domestic industry is not injured, provided there is a concentration of subsidized imports into such an isolated market and provided further that the subsidized imports are causing injury to the producers of all or almost all of the production within such market.
16.3. When the domestic industry has been interpreted as referring to the producers in a certain area, i.e. a market as defined in paragraph 2, countervailing duties shall be levied only on the products in question consigned for final consumption to that area. When the constitutional law of the importing Member does not permit the levying of countervailing duties on such a basis, the importing Member may levy the countervailing duties without limitation only if (a) the exporters shall have been given an opportunity to cease exporting at subsidized prices to the area concerned or otherwise give assurances pursuant to Article 18, and adequate assurances in this regard have not been promptly given, and (b) such duties cannot be levied only on products of specific producers which supply the area in question.
16.4. Where two or more countries have reached under the provisions of paragraph 8(a) of Article XXIV of GATT 1994 such a level of integration that they have the characteristics of a single, unified market, the industry in the entire area of integration shall be taken to be the domestic industry referred to in paragraphs 1 and 2.
16.5. The provisions of paragraph 6 of Article 15 shall be applicable to this Article.
Article 17
Provisional Measures
17.1. Provisional measures may be applied only if:
an investigation has been initiated in accordance with the provisions of Article 11, a public notice has been given to that effect and interested Members and interested parties have been given adequate opportunities to submit information and make comments;
a preliminary affirmative determination has been made that a subsidy exists and that there is injury to a domestic industry caused by subsidized imports; and
the authorities concerned judge such measures necessary to prevent injury being caused during the investigation.
17.2. Provisional measures may take the form of provisional countervailing duties guaranteed by cash deposits or bonds equal to the amount of the provisionally calculated amount of subsidization.
17.3. Provisional measures shall not be applied sooner than 60 days from the date of initiation of the investigation.
17.4. The application of provisional measures shall be limited to as short a period as possible, not exceeding four months.
17.5. The relevant provisions of Article 19 shall be followed in the application of provisional measures.
Article 18
Undertakings
18.1. Proceedings may ( 119 ) be suspended or terminated without the imposition of provisional measures or countervailing duties upon receipt of satisfactory voluntary undertakings under which:
the government of the exporting Member agrees to eliminate or limit the subsidy or take other measures concerning its effects; or
the exporter agrees to revise its prices so that the investigating authorities are satisfied that the injurious effect of the subsidy is eliminated. Price increases under such undertakings shall not be higher than necessary to eliminate the amount of the subsidy. It is desirable that the price increases be less than the amount of the subsidy if such increases would be adequate to remove the injury to the domestic industry.
18.2. Undertakings shall not be sought or accepted unless the authorities of the importing Member have made a preliminary affirmative determination of subsidization and injury caused by such subsidization and, in case of undertakings from exporters, have obtained the consent of the exporting Member.
18.3. Undertakings offered need not be accepted if the authorities of the importing Member consider their acceptance impractical, for example if the number of actual or potential exporters is too great, or for other reasons, including reasons of general policy. Should the case arise and where practicable, the authorities shall provide to the exporter the reasons which have led them to consider acceptance of an undertaking as inappropriate, and shall, to the extent possible, give the exporter an opportunity to make comments thereon.
18.4. If an undertaking is accepted, the investigation of subsidization and injury shall nevertheless be completed if the exporting Member so desires or the importing Member so decides. In such a case, if a negative determination of subsidization or injury is made, the undertaking shall automatically lapse, except in cases where such a determination is due in large part to the existence of an undertaking. In such cases, the authorities concerned may require that an undertaking be maintained for a reasonable period consistent with the provisions of this Agreement. In the event that an affirmative determination of subsidization and injury is made, the undertaking shall continue consistent with its terms and the provisions of this Agreement.
18.5. Price undertakings may be suggested by the authorities of the importing Member, but no exporter shall be forced to enter into such undertakings. The fact that governments or exporters do not offer such undertakings, or do not accept an invitation to do so, shall in no way prejudice the consideration of the case. However, the authorities are free to determine that a threat of injury is more likely to be realized if the subsidized imports continue.
18.6. Authorities of an importing Member may require any government or exporter from whom an undertaking has been accepted to provide periodically information relevant to the fulfilment of such an undertaking, and to permit verification of pertinent data. In case of violation of an undertaking, the authorities of the importing Member may take, under this Agreement in conformity with its provisions, expeditious actions which may constitute immediate application of provisional measures using the best information available. In such cases, definitive duties may be levied in accordance with this Agreement on products entered for consumption not more than 90 days before the application of such provisional measures, except that any such retroactive assessment shall not apply to imports entered before the violation of the undertaking.
Article 19
Imposition and Collection of Countervailing Duties
19.1. If, after reasonable efforts have been made to complete consultations, a Member makes a final determination of the existence and amount of the subsidy and that, through the effects of the subsidy, the subsidized imports are causing injury, it may impose a countervailing duty in accordance with the provisions of this Article unless the subsidy or subsidies are withdrawn.
19.2. The decision whether or not to impose a countervailing duty in cases where all requirements for the imposition have been fulfilled, and the decision whether the amount of the countervailing duty to be imposed shall be the full amount of the subsidy or less, are decisions to be made by the authorities of the importing Member. It is desirable that the imposition should be permissive in the territory of all Members, that the duty should be less than the total amount of the subsidy if such lesser duty would be adequate to remove the injury to the domestic industry, and that procedures should be established which would allow the authorities concerned to take due account of representations made by domestic interested parties ( 120 ) whose interests might be adversely affected by the imposition of a countervailing duty.
19.3. When a countervailing duty is imposed in respect of any product, such countervailing duty shall be levied, in the appropriate amounts in each case, on a non-discriminatory basis on imports of such product from all sources found to be subsidized and causing injury, except as to imports from those sources which have renounced any subsidies in question or from which undertakings under the terms of this Agreement have been accepted. Any exporter whose exports are subject to a definitive countervailing duty but who was not actually investigated for reasons other than a refusal to cooperate, shall be entitled to an expedited review in order that the investigating authorities promptly establish an individual countervailing duty rate for that exporter.
19.4. No countervailing duty shall be levied ( 121 ) on any imported product in excess of the amount of the subsidy found to exist, calculated in terms of subsidization per unit of the subsidized and exported product.
Article 20
Retroactivity
20.1. Provisional measures and countervailing duties shall only be applied to products which enter for consumption after the time when the decision under paragraph 1 of Article 17 and paragraph 1 of Article 19, respectively, enters into force, subject to the exceptions set out in this Article.
20.2. Where a final determination of injury (but not of a threat thereof or of a material retardation of the establishment of an industry) is made or, in the case of a final determination of a threat of injury, where the effect of the subsidized imports would, in the absence of the provisional measures, have led to a determination of injury, countervailing duties may be levied retroactively for the period for which provisional measures, if any, have been applied.
20.3. If the definitive countervailing duty is higher than the amount guaranteed by the cash deposit or bond, the difference shall not be collected. If the definitive duty is less than the amount guaranteed by the cash deposit or bond, the excess amount shall be reimbursed or the bond released in an expeditious manner.
20.4. Except as provided in paragraph 2, where a determination of threat of injury or material retardation is made (but no injury has yet occurred) a definitive countervailing duty may be imposed only from the date of the determination of threat of injury or material retardation, and any cash deposit made during the period of the application of provisional measures shall be refunded and any bonds released in an expeditious manner.
20.5. Where a final determination is negative, any cash deposit made during the period of the application or provisional measures shall be refunded and any bonds released in an expeditious manner.
20.6. In critical circumstances where for the subsidized product in question the authorities find that injury which is difficult to repair is caused by massive imports in a relatively short period of a product benefiting from subsidies paid or bestowed inconsistently with the provisions of GATT 1994 and of this Agreement and where it is deemed necessary, in order to preclude the recurrence of such injury, to assess countervailing duties retroactively on those imports, the definitive countervailing duties may be assessed on imports which were entered for consumption not more than 90 days prior to the date of application of provisional measures.
Article 21
Duration and Review of Countervailing Duties and Undertakings
21.1. A countervailing duty shall remain in force only as long as and to the extent necessary to counteract subsidization which is causing injury.
21.2. The authorities shall review the need for the continued imposition of the duty, where warranted, on their own initiative or, provided that a reasonable period of time has elapsed since the imposition of the definitive countervailing duty, upon request by any interested party which submits positive information substantiating the need for a review. Interested parties shall have the right to request the authorities to examine whether the continued imposition of the duty is necessary to offset subsidization, whether the injury would be likely to continue or recur if the duty were removed or varied, or both. If, as a result of the review under this paragraph, the authorities determine that the countervailing duty is no longer warranted, it shall be terminated immediately.
21.3. Notwithstanding the provisions of paragraphs 1 and 2, any definitive countervailing duty shall be terminated on a date not later than five years from its imposition (or from the date of the most recent review under paragraph 2 if that review has covered both subsidization and injury, or under this paragraph), unless the authorities determine, in a review initiated before that date on their own initiative or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable period of time prior to that date, that the expiry of the duty would be likely to lead to continuation or recurrence of subsidization and injury ( 122 ). The duty may remain in force pending the outcome of such a review.
21.4. The provisions of Article 12 regarding evidence and procedure shall apply to any review carried out under this Article. Any such review shall be carried out expeditiously and shall normally be concluded within 12 months of the date of initiation of the review.
21.5. The provisions of this Article shall apply mutatis mutandis to undertakings accepted under Article 18.
Article 22
Public Notice and Explanation of Determinations
22.1. When the authorities are satisfied that there is sufficient evidence to justify the initiation of an investigation pursuant to Article 11, the Member or Members the products of which are subject to such investigation and other interested parties known to the investigating authorities to have an interest therein shall be notified and a public notice shall be given.
22.2. A public notice of the initiation of an investigation shall contain, or otherwise make available through a separate report ( 123 ), adequate information on the following:
the name of the exporting country or countries and the product involved;
the date of initiation of the investigation;
a description of the subsidy practice or practices to be investigated;
a summary of the factors on which the allegation of injury is based;
the address to which representations by interested Members and interested parties should be directed; and
the time-limits allowed to interested Members and interested parties for making their views known.
22.3. Public notice shall be given of any preliminary or final determination, whether affirmative or negative, of any decision to accept an undertaking pursuant to Article 18, of the termination of such an undertaking, and of the termination of a definitive countervailing duty. Each such notice shall set forth, or otherwise make available through a separate report, in sufficient detail the findings and conclusions reached on all issues of fact and law considered material by the investigating authorities. All such notices and reports shall be forwarded to the Member or Members the products of which are subject to such determination or undertaking and to other interested parties known to have an interest therein.
22.4. A public notice of the imposition of provisional measures shall set forth, or otherwise make available through a separate report, sufficiently detailed explanations for the preliminary determinations on the existence of a subsidy and injury and shall refer to the matters of fact and law which have led to arguments being accepted or rejected. Such a notice or report shall, due regard being paid to the requirement for the protection of confidential information, contain in particular:
the names of the suppliers or, when this is impracticable, the supplying countries involved;
a description of the product which is sufficient for customs purposes;
the amount of subsidy established and the basis on which the existence of a subsidy has been determined;
considerations relevant to the injury determination as set out in Article 15;
the main reasons leading to the determination.
22.5. A public notice of conclusion or suspension of an investigation in the case of an affirmative determination providing for the imposition of a definitive duty or the acceptance of an undertaking shall contain, or otherwise make available through a separate report, all relevant information on the matters of fact and law and reasons which have led to the imposition of final measures or the acceptance of an undertaking, due regard being paid to the requirement for the protection of confidential information. In particular, the notice or report shall contain the information described in paragraph 4, as well as the reasons for the acceptance or rejection of relevant arguments or claims made by interested Members and by the exporters and importers.
22.6. A public notice of the termination or suspension of an investigation following the acceptance of an undertaking pursuant to Article 18 shall include, or otherwise make available through a separate report, the non-confidential part of this undertaking.
22.7. The provisions of this Article shall apply mutatis mutandis to the initiation and completion of reviews pursuant to Article 21 and to decisions under Article 20 to apply duties retroactively.
Article 23
Judicial Review
Each Member whose national legislation contains provisions on countervailing duty measures shall maintain judicial, arbitral or administrative tribunals or procedures for the purpose inter alia of the prompt review of administrative actions relating to final determinations and reviews of determinations within the meaning of Article 21. Such tribunals or procedures shall be independent of the authorities responsible for the determination or review in question, and shall provide all interested parties who participated in the administrative proceeding and are directly and individually affected by the administrative actions with access to review.
PART VI
INSTITUTIONS
Article 24
Committee on Subsidies and Countervailing Measures and Subsidiary Bodies
24.1. There is hereby established a Committee on Subsidies and Countervailing Measures composed of representatives from each of the Members. The Committee shall elect its own Chairman and shall meet not less than twice a year and otherwise as envisaged by relevant provisions of this Agreement at the request of any Member. The Committee shall carry out responsibilities as assigned to it under this Agreement or by the Members and it shall afford Members the opportunity of consulting on any matter relating to the operation of the Agreement or the furtherance of its objectives. The WTO Secretariat shall act as the secretariat to the Committee.
24.2. The Committee may set up subsidiary bodies as appropriate.
24.3. The Committee shall establish a Permanent Group of Experts composed of five independent persons, highly qualified in the fields of subsidies and trade relations. The experts will be elected by the Committee and one of them will be replaced every year. The PGE may be requested to assist a panel, as provided for in paragraph 5 of Article 4. The Committee may also seek an advisory opinion on the existence of nature of any subsidy.
24.4. The PGE may be consulted by any Member and may give advisory opinions on the nature of any subsidy proposed to be introduced or currently maintained by that Member. Such advisory opinions will be confidential and may not be invoked in proceedings under Article 7.
24.5. In carrying out their functions, the Committee and any subsidiary bodies may consult with and seek information from any source they deem appropriate. However, before the Committee or a subsidiary body seeks such information from a source within the jurisdiction of a Member, it shall inform the Member involved.
PART VII
NOTIFICATION AND SURVEILLANCE
Article 25
Notifications
25.1. Members agree that, without prejudice to the provisions of paragraph 1 of Article XVI of GATT 1994, their notifications of subsidies shall be submitted not later than 30 June of each year and shall conform to the provisions of paragraphs 2 through 6.
25.2. Members shall notify any subsidy as defined in paragraph 1 of Article 1, which is specific within the meaning of Article 2, granted or maintained within their territories.
25.3. The content of notifications should be sufficiently specific to enable other Members to evaluate the trade effects and to understand the operation of notified subsidy programmes. In this connection, and without prejudice to the contents and form of the questionnaire on subsidies ( 124 ), Members shall ensure that their notifications contain the following information:
form of a subsidy (i.e. grant, loan, tax concession, etc.);
subsidy per unit or, in cases where this is not possible, the total amount or the annual amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous year);
policy objective and/or purpose of a subsidy;
duration of a subsidy and/or any other time-limits attached to it;
statistical data permitting an assessment of the trade effects of a subsidy.
25.4. Where specific points in paragraph 3 have not been addressed in a notification, an explanation shall be provided in the notification itself.
25.5. If subsidies are granted to specific products or sectors, the notifications should be organized by product or sector.
25.6. Members which consider that there are no measures in their territories requiring notification under paragraph 1 of Article XVI of GATT 1994 and this Agreement shall so inform the Secretariat in writing.
25.7. Members recognize that notification of a measure does not prejudge either its legal status under GATT 1994 and this Agreement, the effects under this Agreement, or the nature of the measure itself.
25.8. Any Member may, at any time, make a written request for information on the nature and extent of any subsidy granted or maintained by another Member (including any subsidy referred to in Part IV), or for an explanation of the reasons for which a specific measure has been considered as not subject to the requirement of notification.
25.9. Members so requested shall provide such information as quickly as possible and in a comprehensive manner, and shall be ready, upon request, to provide additional information to the requesting Member. In particular, they shall provide sufficient details to enable the other Member to assess their compliance with the terms of this Agreement. Any Member which considers that such information has not been provided may bring the matter to the attention of the Committee.
25.10. Any Member which considers that any measure of another Member having the effects of a subsidy has not been notified in accordance with the provisions of paragraph 1 of Article XVI of GATT 1994 and this Article may bring the matter to the attention of such other Member. If the alleged subsidy is not thereafter notified promptly, such Member may itself bring the alleged subsidy in question to the notice of the Committee.
25.11. Members shall report without delay to the Committee all preliminary or final actions taken with respect to countervailing duties. Such reports shall be available in the Secretariat for inspection by other Members. Members shall also submit, on a semi-annual basis, reports on any countervailing duty actions taken within the preceding six months. The semi-annual reports shall be submitted on an agreed standard form.
25.12. Each Member shall notify the Committee (a) which of its authorities are competent to initiate and conduct investigations referred to in Article 11 and (b) its domestic procedures governing the initiation and conduct of such investigations.
Article 26
Surveillance
26.1. The Committee shall examine new and full notifications submitted under paragraph 1 of Article XVI of GATT 1994 and paragraph 1 of Article 25 of this Agreement at special sessions held every third year. Notifications submitted in the intervening years (updating notifications) shall be examined at each regular meeting of the Committee.
26.2. The Committee shall examine reports submitted under paragraph 11 of Article 25 at each regular meeting of the Committee.
PART VIII
DEVELOPING COUNTRY MEMBERS
Article 27
Special and Differential Treatment of Developing Country Members
27.1. Members recognize that subsidies may play an important role in economic development programmes of developing country Members.
27.2. The prohibition of paragraph l(a) of Article 3 shall not apply to:
developing country Members referred to in Annex VII.
other developing country Members for a period of eight years from the date of entry into force of the WTO Agreement, subject to compliance with the provisions in paragraph 4.
27.3. The prohibition of paragraph l(b) of Article 3 shall not apply to developing country Members for a period of five years, and shall not apply to least-developed country Members for a period of eight years, from the date of entry into force of the WTO Agreement.
27.4. Any developing country Members referred to in paragraph 2(b) shall phase out its export subsidies within the eight-year period, preferably in a progressive manner. However, a developing country Member shall not increase the level of its export subsidies ( 125 ), and shall eliminate them within a period shorter than that provided for in this paragraph when the use of such export subsidies is inconsistent with its development needs. If a developing country Member deems it necessary to apply such subsidies beyond the eight-year period, it shall not later than one year before the expiry of this period enter into consultation with the Committee, which will determine whether an extension of this period is justified, after examining all the relevant economic, financial and development needs of the developing country Member in question. If the Committee determines that the excession is justified, the developing country Member concerned shall hold annual consultations with the Committee to determine the necessity of maintaining the subsidies. If no such determination is made by the Committee, the developing country Member shall phase out the remaining export subsidies within two years from the end of the last authorized period.
27.5. A developing country Member which has reached export competitiveness in any given product shall phase out its export subsidies for such product(s) over a period of two years. However, for a developing country Member which is referred to in Annex VII and which has reached export competitiveness in one or more products, export subsidies on such products shall be gradually phased out over a period of eight years.
27.6. Export competitiveness in a product exists if a developing country Member's exports of that product have reached a share of at least 3,25 per cent in world trade of that product for two consecutive calendar years. Export competitiveness shall exist either (a) on the basis of notification by the developing country Member having reached export competitiveness, or (b) on the basis of a computation undertaken by the Secretariat at the request of any Member. For the purpose of this paragraph, a product is defined as a section heading of the Harmonized System Nomenclature. The Committee shall review the operation of this provision five years from the date of the entry into force of the WTO Agreement.
27.7. The provisions of Article 4 shall not apply to a developing country Member in the case of export subsidies which are in conformity with the provisions of paragraphs 2 through 5. The relevant provisions in such a case shall be those of Article 7.
27.8. There shall be no presumption in terms of paragraph 1 of Article 6 that a subsidy granted by a developing country Member results in serious prejudice, as defined in this Agreement. Such serious prejudice, where applicable under the terms of paragraph 9, shall be demonstrated by positive evidence, in accordance with the provisions of paragraphs 3 through 8 of Article 6.
27.9. Regarding actionable subsidies granted or maintained by a developing country Member other than those referred to in paragraph 1 of Article 6, action may not be authorized or taken under Article 7 unless nullification or impairment of tariff concessions or other obligations under GATT 1994 is found to exist as a result of such a subsidy, in such a way as to displace or impede imports of a like product of another Member into the market of the subsidizing developing country Member or unless injury to a domestic industry in the market of an importing Member occurs.
27.10. Any countervailing duty investigation of a product originating in a developing country Member shall be terminated as soon as the authorities concerned determine that:
the overall level of subsidies granted upon the product in question does not exceed 2 per cent of its value calculated on a per-unit basis; or
the volume of the subsidized imports represents less than 4 per cent of the total imports of the like product in the importing Member, unless imports from developing country Members whose individual shares of total imports represent less than 4 per cent collectively account for more than 9 per cent of the total imports of the like product in the importing Member.
27.11. For those developing country Members within the scope of paragraph 2(b) which have eliminated export subsidies prior to the expiry of the period of eight years from the date of entry into force of the WTO Agreement, and for those developing country Members referred to in Annex VII, the number in paragraph 10(a) shall be 3 per cent rather than 2 per cent. This provision shall apply from the date that the elimination of export subsidies is notified to the Committee, and for so long as export subsidies are not granted by the notifying developing country Member. This provision shall expire eight years from the date of entry into force of the WTO Agreement.
27.12. The provisions of paragraphs 10 and 11 shall govern any determination of de minimis under paragraph 3 of Article 15.
27.13. The provisions of Part III shall not apply to direct forgiveness of debts, subsidies to cover social costs, in whatever form, including relinquishment of government revenue and other transfer of liabilities when such subsidies are granted within and directly linked to a privatization programme of a developing country Member, provided that both such programme and the subsidies involved are granted for a limited period and notified to the Committee and that the programme results in eventual privatization of the enterprise concerned.
27.14. The Committee shall, upon request by an interested Member, undertake a review of a specific export subsidy practice of a developing country Member to examine whether the practice is in conformity with its development needs.
27.15. The Committee shall, upon request by an interested developing country Member, undertake a review of a specific countervailing measure to examine whether it is consistent with the provisions of paragraphs 10 and 11 as applicable to the developing country Member in question.
PART IX
TRANSITIONAL ARRANGEMENTS
Article 28
Existing Programmes
28.1. Subsidy programmes which have been established within the territory of any Member before the date on which such a Member signed the WTO Agreement and which are inconsistent with the provisions of this Agreement shall be:
notified to the Committee not later than 90 days after the date of entry into force of the WTO Agreement for such Member; and
brought into conformity with the provisions of this Agreement within three years of the date of entry into force of the WTO Agreement for such Member and until then shall not be subject to Part II.
28.2. No Member shall extend the scope of any such programme, nor shall such a programme be renewed upon its expiry.
Article 29
Transformation into a Market Economy
29.1. Members in the process of transformation from a centrally-planned into a market, free-enterprise economy may apply programmes and measures necessary for such a transformation.
29.2. For such Members, subsidy programmes falling within the scope of Article 3, and notified according to paragraph 3, shall be phased out or brought into conformity with Article 3 within a period of seven years from the date of entry into force of the WTO Agreement. In such a case, Article 4 shall not apply. In addition during the same period:
Subsidy programmes falling within the scope of paragraph l(d) of Article 6 shall not be actionable under Article 7;
With respect to other actionable subsidies, the provisions of paragraph 9 of Article 27 shall apply.
29.3. Subsidy programmes falling within the scope of Article 3 shall be notified to the Committee by the earliest practicable date after the date of entry into force of the WTO Agreement. Further notifications of such subsidies may be made up to two years after the date of entry into force of the WTO Agreement.
29.4. In exceptional circumstances Members referred to in paragraph 1 may be given departures from their notified programmes and measures and their time-frame by the Committee of such departures are deemed necessary for the process of transformation.
PART X
DISPUTE SETTLEMENT
Article 30
The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding, shall apply to consultations and the settlement of disputes under this Agreement, except as otherwise specifically provided herein.
PART XI
FINAL PROVISIONS
Article 31
Provisional Application
The provisions of paragraph 1 of Article 6 and the provisions of Article 8 and Article 9 shall apply for a period of five years, beginning with the date of entry into force of the WTO Agreement. Not later than 180 days before the end of this period, the Committee shall review the operation of those provisions, with a view to determining whether to extend their application, either as presently drafted or in a modified form, for a further period.
Article 32
Other Final Provisions
32.1. No specific action against a subsidy of another Member can be taken except in accordance with the provisions of GATT 1994, as interpreted by this Agreement ( 126 ).
32.2. Reservations may not be entered in respect of any of the provisions of this Agreement without the consent of the other Members.
32.3. Subject to paragraph 4, the provisions of this Agreement shall apply to investigations, and reviews of existing measures, initiated pursuant to applications which have been made on or after the date of entry into force for a Member of the WTO Agreement.
32.4. For the purposes of paragraph 3 of Article 21, existing countervailing measures shall be deemed to be imposed on a date not later than the date of entry into force for a Member of the WTO Agreement, except in cases in which the domestic legislation of a Member in force at that date already included a clause of the type provided for in that paragraph.
32.5. Each Member shall take all necessary steps, of a general or particular character, to ensure, not later than the date of entry into force of the WTO Agreement for it, the conformity of its laws, regulations and administrative procedures with the provisions of this Agreement as they may apply to the Member in question.
32.6. Each Member shall inform the Committee of any changes in its laws and regulations relevant to this Agreement and in the administration of such laws and regulations.
32.7. The Committee shall review annually the implementation and operation of this Agreement, taking into account the objectives thereof. The Committee shall inform annually the Council for Trade in Goods of developments during the period covered by such reviews.
32.8. The Annexes to this Agreement constitute an integral part thereof.
ANNEX I
ILLUSTRATIVE LIST OF EXPORT SUBSIDIES
The provision by governments of direct subsidies to a firm or an industry contingent upon export performance.
Currency retention schemes or any similar practices which involve a bonus on exports.
Internal transport and freight charges on export shipments, provided or mandated by governments, on terms more favourable than for domestic shipments.
The provision by governments or their agencies either directly or indirectly through government-mandated schemes, of imported or domestic products or services for use in the production of exported goods, on terms or conditions more favourable than for provision of like or directly competitive products or services for use in the production of goods for domestic consumption, if (in the case of products) such terms or conditions are more favourable than those commercially available ( 127 ) on world markets to their exporters.
The allowance of special deductions directly related to exports or export performance, over and above those granted in respect to production for domestic consumption, in the calculation of the base on which direct taxes are charged.
The exemption or remission, in respect of the production and distribution of exported products, of indirect taxes (128) in excess of those levied in respect of the production and distribution of like products when sold for domestic consumption.
The exemption, remission or deferral of prior-stage cumulative indirect taxes (128) on goods or services used in the production of exported products in excess of the exemption, remission or deferral of like prior-stage cumulative indirect taxes on goods or services used in the production of like products when sold for domestic consumption; provided, however, that prior-stage cumulative indirect taxes may be exempted, remitted or deferred on exported products even when not exempted, remitted or deferred on like products when sold for domestic consumption, if the prior-stage cumulative indirect taxes are levied on inputs that are consumed in the production of the exported product (making normal allowance or waste) ( 130 ). This item shall be interpreted in accordance with the guidelines on consumption of inputs in the production process contained in Annex II.
The remission or drawback of import charges (128) in excess of those levied on imported inputs that are consumed in the production of the exported product (making normal allowance for waste); provided, however, that in particular cases a firm may use a quantity of home market inputs equal to, and having the same quality and characteristics as, the imported inputs as a substitute for them in order to benefit from this provision if the import and the corresponding export operations both occur within a reasonable time period, not to exceed two years. This item shall be interpreted in accordance with the guidelines on consumption of inputs in the production process contained in Annex II and the guidelines in the determination of substitution drawback systems as export subsidies contained in Annex III.
The provision by governments (or special institutions controlled by governments) of export credit guarantee or insurance programmes, of insurance or guarantee programmes against increases in the cost of exported products or of exchange risk programmes, at premium rates which are inadequate to cover the long-term operating costs and losses of the programmes.
The grant by governments (or special institutions controlled by and/or acting under the authority of governments) of export credits at rates below those which they actually have to pay for the funds so employed (or would have to pay if they borrowed on international capital markets in order to obtain funds of the same maturity and other credit terms and denominated in the same currency as the export credit), or the payment by them of all or part of the costs incurred by exporters or financial institutions in obtaining credits, in so far as they are used to secure a material advantage in the field of export credit terms.
Provided, however, that if a Member is a party to an international undertaking on official export credits to which at least twelve original Members to this Agreement are parties as of 1 January 1979 (or a successor undertaking which has been adopted by those original Members), or if in practice a Member applies the interest rates provisions of the relevant undertaking, an export credit practice which is in conformity with those provisions shall not be considered an export subsidy prohibited by this Agreement.
Any other charge on the public account constituting an export subsidy in the sense of Article XVI of GATT 1994.
ANNEX II
GUIDELINES ON CONSUMPTION OF INPUTS IN THE PRODUCTION PROCESS ( 131 )
I
1. Indirect tax rebate schemes can allow for exemption, remission or deferral of prior-stage cumulative indirect taxes levied on inputs that are consumed in the production of the exported product (making normal allowance for waste). Similarly, drawback schemes can allow for the remission or drawback of import charges levied on inputs that are consumed in the production of the exported product (making normal allowance for waste).
2. The Illustrative List of Export Subsidies in Annex I of this Agreement makes reference to the term ‘inputs that are consumed in the production of the exported product’ in paragraphs (h) and (i). Pursuant to paragraph (h), indirect tax rebate schemes can constitute an export subsidy to the extent that they result an exemption, remission or deferral of prior-stage cumulative indirect taxes in excess of the amount of such taxes actually levied on inputs that are consumed in the production of the exported product. Pursuant to paragraph (i), drawback schemes can constitute an export subsidy to the extent that they result in a remission or drawback of import charges in excess of those actually levied on inputs that are consumed in the production of the exported product. Both paragraphs stipulate that normal allowance for waste must be made in findings regarding consumption of inputs in the production of the exported product. Paragraph (i) also provides for substitution, where appropriate.
II
In examining whether inputs are consumed in the production of the exported product, as part of a countervailing duty investigation pursuant to this Agreement, investigating authorities should proceed on the following basis:
1. Where it is alleged that an indirect tax rebate scheme, or a drawback scheme, conveys a subsidy by reason of over-rebate or excess drawback of indirect taxes or import charges on inputs consumed in the production of the exported product, the investigating authorities should first determine whether the government of the exporting Member has in place and applies a system or procedure to confirm which inputs are consumed in the production of the exported product and in what amounts. Where such a system or procedure is determined to be applied, the investigating authorities should then examine the system or procedure to see whether it is reasonable, effective for the purpose intended, and based on generally accepted commercial practices in the country of export. The investigating authorities may deem it necessary to carry out, in accordance with paragraph 6 of Article 12, certain practical tests in order to verify information or to satisfy themselves that the system or procedure is being effectively applied.
2. Where there is no such system or procedure, where it is not reasonable, or where it is instituted and considered reasonable but is found not to be applied or not to be applied effectively, a further examination by the exporting Member based on the actual inputs involved would need to be carried out in the context of determining whether an excess payment occurred. If the investigating authorities deemed it necessary, a further examination would be carried out in accordance with paragraph 1.
3. Investigating authorities should treat inputs as physically incorporated if such inputs are used in the production process and are physically present in the product exported. The Members note that an input need not be present in the final product in the same form in which it entered the production process.
4. In determining the amount of a particular input that is consumed in the production of the exported product, a ‘normal allowance for waste’ should be taken into account, and such waste should be treated as consumed in the production of the exported product. The term ‘waste’ refers to that portion of a given input which does not serve an independent function in the production process, is not consumed in the production of the exported product (for reasons such as inefficiencies) and is not recovered, used or sold by the same manufacturer.
5. The investigating authority's determination of whether the claimed allowance for waste is ‘normal’ should take into account the production process, the average experience of the industry in the country of export, and other technical factors, as appropriate. The investigating authority should bear in mind that an important question is whether the authorities in the exporting Member have reasonably calculated the amount of waste, when such an amount is intended to be included in the tax or duty rebate or remission.
ANNEX III
GUIDELINES IN THE DETERMINATION OF SUBSTITUTION DRAWBACK SYSTEMS AS EXPORT SUBSIDIES
I
Drawback systems can allow for the refund or drawback of import charges on inputs which are consumed in the production process of another product and where the export of this latter product contains domestic inputs having the same quality and characteristics as those substituted for the imported inputs. Pursuant to paragraph (i) of the Illustrative List of Export Subsidies in Annex I, substitution drawback systems can constitute an export subsidy to the extent that they result in an excess drawback of the import charges levied initially on the imported inputs for which drawback is being claimed.
II
In examining any substitution drawback system as part of a countervailing duty investigation pursuant to this Agreement, investigating authorities should proceed on the following basis:
1. Paragraph (i) of the Illustrative List stipulates that home market inputs may be substituted for imported inputs in the production of a product for export provided such inputs are equal in quantity to, and have the same quality and characteristics as, the imported inputs being substituted. The existence of a verification system or procedure is important because it enables the government of the exporting Member to ensure and demonstrate that the quantity of inputs for which drawback is claimed does not exceed the quantity of similar products exported, in whatever form, and that there is not drawback of import charges in excess of those originally levied on the imported inputs in question.
2. Where it is alleged that a substitution drawback system conveys a subsidy, the investigating authorities should first proceed to determine whether the government of the exporting Member has in place and applies a verification system or procedure. Where such a system or procedure is determined to be applied, the investigating authorities should then examine the verification procedures to see whether they are reasonable, effective for the purpose intended, and based on generally accepted commercial practices in the country of export. To the extent that the procedures are determined to meet this test and are effectively applied, no subsidy should be presumed to exist. It may be deemed necessary by the investigating authorities to carry out, in accordance with paragraph 6 of Article 12, certain practical tests in order to verify information or to satisfy themselves that the verification procedures are being effectively applied.
3. Where there are no verification procedures, where they are not reasonable, or where such procedures are instituted and considered reasonable but are found not to be actually applied or not applied effectively, there may be a subsidy. In such cases a further examination by the exporting Member based on the actual transactions involved would need to be carried out to determine whether an excess payment occurred. If the investigating authorities deemed it necessary, a further examination would be carried out in accordance with paragraph 2.
4. The existence of a substitution drawback provision under which exporters are allowed to select particular import shipments on which drawback is claimed should not of itself be considered to convey a subsidy.
5. An excess drawback of import charges in the sense of paragraph (i) would be deemed to exist where governments paid interest on any monies refunded under their drawback schemes, to the extent of the interest actually paid or payable.
ANNEX IV
CALCULATION OF THE TOTAL AD VALOREM SUBSIDIZATION (PARAGRAPH 1(A) OF ARTICLE 6) ( 132 )
1. Any calculation of the amount of a subsidy for the purpose of paragraph 1(a) of Article 6 shall be done in terms of the cost to the granting government.
2. Except as provided in paragraphs 3 through 5, in determining whether the overall rate of subsidization exceeds 5 per cent of the value of the product, the value of the product shall be calculated as the total value of the recipient firm's ( 133 ) sales in the most recent 12-month period, for which sales data is available, preceding the period in which the subsidy is granted ( 134 ).
3. Where the subsidy is tied to the production or sale of a given product, the value of the product shall be calculated as the total value of the recipient firm's sales of that product in the most recent 12-month period, for which sales data is available, preceding the period in which the subsidy is granted.
4. Where the recipient firm is in a start-up situation, serious prejudice shall be deemed to exist if the overall rate of subsidization exceeds 15 per cent of the total funds invested. For purposes of this paragraph, a start-up period will not extend beyond the first year of production ( 135 ).
5. Where the recipient firm is located in an inflationary economy country, the value of the product shall be calculated as the recipient firm's total sales (or sales of the relevant product, if the subsidy is tied) in the preceding calendar year indexed by the rate of inflation experienced in the 12 months preceding the month in which the subsidy is to be given.
6. In determining the overall rate of subsidization in a given year, subsidies given under different programmes and by different authorities in the territory of a Member shall be aggregated.
7. Subsidies granted prior to the date of entry into force of the WTO Agreement, the benefits of which are allocated to future production, shall be included in the overall rate of subsidization.
8. Subsidies which are non-actionable under relevant provisions of this Agreement shall not be included in the calculation of the amount of a subsidy for the purpose of paragraph l(a) of Article 6.
ANNEX V
PROCEDURES FOR DEVELOPING INFORMATION CONCERNING SERIOUS PREJUDICE
1. Every Member shall cooperate in the development of evidence to be examined by a panel in procedures under paragraphs 4 through 6 of Article 7. The parties to the dispute and any third-country Member concerned shall notify to the DSB, as soon as the provisions of paragraph 4 of Article 7 have been invoked, the organization responsible for administration of this provision within its territory and the procedures to be used to comply with requests for information.
2. In cases where matters are referred to the DSB under paragraph 4 of Article 7, the DSB shall, upon request, initiate the procedure to obtain such information from the government of the subsidizing Member as necessary to establish the existence and amount of subsidization, the value of total sales of the subsidized firms, as well as information necessary to analyze the adverse effects caused by the subsidized product ( 136 ). This process may include, where appropriate, presentation of questions to the government of the subsidizing Member and of the complaining Member to collect information, as well as to clarify and obtain elaboration of information available to the parties to a dispute through the notification procedures set forth in Part VII ( 137 ).
3. In the case of effects in third-country markets, a party to a dispute may collect information, including through the use of questions to the government of the third-country Member, necessary to analyze adverse effects, which is not otherwise reasonably available from the complaining Member or the subsidizing Member. This requirement should be administered in such a way as not to impose an unreasonable burden on the third-country Member. In particular, such a Member is not expected to make a market or price analysis specially for that purpose. The information to be supplied is that which is already available or can be readily obtained by this Member (e.g. most recent statistics which have already been gathered by relevant statistical services but which have not yet been published, customs data concerning imports and declared values of the products concerned, etc.). However, if a party to a dispute undertakes a detailed market analysis at its own expense, the task of the person or firm conducting such an analysis shall be facilitated by the authorities of the third-country Member and such a person or firm shall be given access to all information which is not normally maintained confidential by the government.
4. The DSB shall designate a representative to serve the function of facilitating the information-gathering process. The sole purpose of the representative shall be to ensure the timely development of the information necessary to facilitate expeditious subsequent multilateral review of the dispute. In particular, the representative may suggest ways to most efficiently solicit necessary information as well as encourage the cooperation of the parties.
5. The information-gathering process outlined in paragraphs 2 through 4 shall be completed within 60 days of the date on which the matter has been referred to the DSB under paragraph 4 of Article 7. The information obtained during this process shall be submitted to the panel established by the DSB in accordance with the provisions of Part X. This information should include inter alia data concerning the amount of the subsidy in question (and, where appropriate, the value of total sales of the subsidized firms), prices of the subsidized product, prices of the non-subsidized product, prices of other suppliers to the market, changes in the supply of the subsidized product to the market in question and changes in market shares. It should also include rebuttal evidence, as well as such supplemental information as the panel deems relevant in the course of reaching its conclusions.
6. If the subsidizing and/or third-country Member fail to cooperate in the information-gathering process, the complaining Member will present its case of serious prejudice, based on evidence available to it, together with facts and circumstances of the non-cooperation of the subsidizing and/or third-country Member. Where information is unavailable due to non-cooperation by the subsidizing and/or third-country Member, the panel may complete the record as necessary relying on best information otherwise available.
7. In making its determination, the panel should draw adverse inferences from instances of non-cooperation by any party involved in the information-gathering process.
8. In making a determination to use either best information available or adverse inferences, the panel shall consider the advice of the DSB representative nominated under paragraph 4 as to the reasonableness of any requests for information and the efforts made by parties to comply with these requests in a cooperative and timely manner.
9. Nothing in the information-gathering process shall limit the ability of the panel to seek such additional information it deems essential to a proper resolution to the dispute, and which was not adequately sought or developed during that process. However, ordinarily the panel should not request additional information to complete the record where the information would support a particular party's position and the absence of that information in the record is the result of unreasonable non-cooperation by that party in the information-gathering process.
ANNEX VI
PROCEDURES FOR ON-THE-SPOT INVESTIGATIONS PURSUANT TO PARAGRAPH 6 OF ARTICLE 12
1. Upon initiation of an investigation, the authorities of the exporting Member and the firms known to be concerned should be informed of the intention to carry out on-the-spot investigations.
2. If in exceptional circumstances it is intended to include non-governmental experts in the investigating team, the firms and the authorities of the exporting Member should be so informed. Such non-governmental experts should be subject to effective sanctions for breach of confidentiality requirements.
3. It should be standard practice to obtain explicit agreement of the firms concerned in the exporting Member before the visit is finally scheduled.
4. As soon as the agreement of the firms concerned has been obtained, the investigating authorities should notify the authorities of the exporting Member of the names and addresses of the firms to be visited and the dates agreed.
5. Sufficient advance notice should be given to the firms in question before the visit is made.
6. Visits to explain the questionnaire should only be made at the request of an exporting firm. In case of such a request the investigating authorities may place themselves at the disposal of the firm; such a visit may only be made if (a) the authorities of the importing Member notify the representatives of the government of the Member in question and (b) the latter do not object to the visit.
7. As the main purpose of the on-the-spot investigation is to verify information provided or to obtain further details, it should be carried out after the response to the questionnaire has been received unless the firm agrees to the contrary and the government of the exporting Member is informed by the investigating authorities of the anticipated visit and does not object to it; further, it should be standard practice prior to the visit to advise the firms concerned of the general nature of the information to be verified and of any further information which needs to be provided, though this should not preclude requests to be made on the spot for further details to be provided in the light of information obtained.
8. Enquiries or questions put by the authorities or firms of the exporting Members and essential to a successful on-the-spot investigation should, whenever possible, be answered before the visit is made.
ANNEX VII
DEVELOPING COUNTRY MEMBERS REFERRED TO IN PARAGRAPH 2(A) OF ARTICLE 27
The developing country Members not subject to the provisions of paragraph l(a) of Article 3 under the terms of paragraph 2(a) of Article 27 are:
Least-developed countries designated as such by the United Nations which are Members of the WTO.
Each of the following developing countries which are Members of the WTO shall be subject to the provisions which are applicable to other developing country Members according to paragraph 2(b) of Article 27 when GNP per capita has reached $1 000 per annum ( 138 ): Bolivia, Cameroon, Congo, Cote d'Ivoire, Dominican Republic, Egypt, Ghana, Guatemala, Guyana, India, Indonesia, Kenya, Morocco, Nigaragua, Nigeria, Pakistan, Philippines, Senegal, Sri Lanka and Zimbabwe.
Agreement on Fisheries Subsidies
Article 1
Scope
This Agreement applies to subsidies, within the meaning of Article 1.1 of the Agreement on Subsidies and Countervailing Measures (SCM Agreement) that are specific within the meaning of Article 2 of that Agreement, to marine wild capture fishing and fishing related activities at sea. ( 139 ), ( 140 ), ( 141 )
Article 2
Definitions
For the purpose of this Agreement:
‘fish’ means all species of living marine resources, whether processed or not;
‘fishing’ means searching for, attracting, locating, catching, taking or harvesting fish or any activity which can reasonably be expected to result in the attracting, locating, catching, taking or harvesting of fish;
‘fishing related activities’ means any operation in support of, or in preparation for, fishing, including the landing, packaging, processing, transshipping or transporting of fish that have not been previously landed at a port, as well as the provisioning of personnel, fuel, gear and other supplies at sea;
‘vessel’ means any vessel, ship of another type or boat used for, equipped to be used for, or intended to be used for, fishing or fishing related activities;
‘operator’ means the owner of a vessel, or any person, who is in charge of or directs or controls the vessel.
Article 3
Subsidies contributing to illegal, unreported and unregulated fishing ( 142 )
For purposes of Article 3.1, a vessel or operator shall be considered to be engaged in IUU fishing if an affirmative determination thereof is made by any of the following ( 144 ), ( 145 ):
a coastal Member, for activities in areas under its jurisdiction; or
a flag State Member, for activities by vessels flying its flag; or
a relevant Regional Fisheries Management Organization or Arrangement (RFMO/A), in accordance with the rules and procedures of the RFMO/A and relevant international law, including through the provision of timely notification and relevant information, in areas and for species under its competence.
An affirmative determination ( 146 ) under Article 3.2 refers to the final finding by a Member and/or the final listing by an RFMO/A that a vessel or operator has engaged in IUU fishing.
For purposes of Article 3.2(a), the prohibition under Article 3.1 shall apply where the determination by the coastal Member is based on relevant factual information and the coastal Member has provided to the flag State Member and, if known, the subsidizing Member, the following:
timely notification, through appropriate channels, that a vessel or operator has been temporarily detained pending further investigation for engagement in, or that the coastal Member has initiated an investigation for, IUU fishing including reference to any relevant factual information, applicable laws, regulations, administrative procedures, or other relevant measures;
an opportunity to exchange relevant information ( 147 ) prior to a determination, so as to allow such information to be considered in the final determination. The coastal Member may specify the manner and time period in which such information exchange should be carried out; and
notification of the final determination, and of any sanctions applied, including, if applicable, their duration. The coastal Member shall notify an affirmative determination to the Committee provided for in Article 9.1 (referred to in this Agreement as ‘the Committee’).
Article 4
Subsidies regarding overfished stocks
Article 5
Other subsidies
Article 6
Specific provisions for LDC Members
A Member shall exercise due restraint in raising matters involving an LDC Member and solutions explored shall take into consideration the specific situation of the LDC Member involved, if any.
Article 7
Technical assistance and capacity building
Targeted technical assistance and capacity building assistance to developing country Members, including LDC Members, shall be provided for the purpose of implementation of the disciplines under this Agreement. In support of this assistance, a voluntary WTO funding mechanism shall be established in cooperation with relevant international organizations such as the Food and Agriculture Organization of the United Nations (FAO) and International Fund for Agricultural Development. The contributions of WTO Members to the mechanism shall be exclusively on a voluntary basis and shall not utilize regular budget resources.
Article 8
Notification and transparency
Without prejudice to Article 25 of the SCM Agreement and in order to strengthen and enhance notifications of fisheries subsidies, and to enable more effective surveillance of the implementation of fisheries subsidies commitments, each Member shall
to the extent possible, provide the following information as part of its regular notification of fisheries subsidies under Article 25 of the SCM Agreement (150) , (151) :
status of the fish stocks in the fishery for which the subsidy is provided (e.g. overfished, maximally sustainably fished, or underfished) and the reference points used, and whether such stocks are shared ( 152 ) with any other Member or are managed by an RFMO/A;
conservation and management measures in place for the relevant fish stock;
fleet capacity in the fishery for which the subsidy is provided;
name and identification number of the fishing vessel or vessels benefitting from the subsidy; and
catch data by species or group of species in the fishery for which the subsidy is provided. ( 153 )
Article 9
Institutional arrangements
Article 10
Dispute settlement
Article 11
Final provisions
Except as provided in Articles 3 and 4, nothing in this Agreement shall prevent a Member from granting a subsidy for disaster ( 157 ) relief, provided that the subsidy is:
limited to the relief of a particular disaster;
limited to the affected geographic area;
time-limited; and
in the case of reconstruction subsidies, limited to restoring the affected fishery, and/or the affected fleet to its pre-disaster level.
This Agreement, including any findings, recommendations, and awards with respect to this Agreement, shall have no legal implications regarding territorial claims or delimitation of maritime boundaries.
A panel established pursuant to Article 10 of this Agreement shall make no findings with respect to any claim that would require it to base its findings on any asserted territorial claims or delimitation of maritime boundaries. ( 158 )
Article 12
Termination of Agreement if comprehensive disciplines are not adopted
If comprehensive disciplines are not adopted within four years of the entry into force of this Agreement, and unless otherwise decided by the General Council, this Agreement shall stand immediately terminated.
AGREEMENT ON SAFEGUARDS
MEMBERS,
Having in mind the overall objective of the Members to improve and strengthen the international trading system based on GATT 1994;
Recognizing the need to clarify and reinforce the disciplines of GATT 1994, and specifically those of its Article XIX (Emergency Action on Imports of Particular Products), to re-establish multilateral control over safeguards and eliminate measures that escape such control;
Recognizing the importance of structural adjustment and the need to enhance rather than limit competition in international markets; and
Recognizing further that, for these purposes, a comprehensive agreement, applicable to all Members and based on the basic principles of GATT 1994, is called for;
HEREBY AGREE AS FOLLOWS:
Article 1
General Provision
This Agreement establishes rules for the application of safeguard measures which shall be understood to mean those measures provided for in Article XIX of GATT 1994.
Article 2
Conditions
Article 3
Investigation
Article 4
Determination of Serious Injury or Threat Thereof
For the purposes of this Agreement:
‘serious injury’ shall be understood to mean a significant overall impairment in the position of a domestic industry;
‘threat of serious injury’ shall be understood to mean serious injury that is clearly imminent, in accordance with the provisions of paragraph 2. A determination of the existence of a threat of serious injury shall be based on facts and not merely on allegation, conjecture or remote possibility; and
in determining injury or threat thereof, a ‘domestic industry’ shall be understood to mean the producers as a whole of the like or directly competitive products operating within the territory of a Member, or those whose collective output of the like or directly competitive products constitutes a major proportion of the total domestic production of those products.
In the investigation to determine whether increased imports have caused or are threatening to cause serious injury to a domestic industry under the terms of this Agreement, the competent authorities shall evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of that industry, in particular, the rate and amount of the increase in imports of the product concerned in absolute and relative terms, the share of the domestic market taken by increased imports, changes in the level of sales, production, productivity, capacity utilization, profits and losses, and employment.
The determination referred to in subparagraph (a) shall not be made unless this investigation demonstrates, on the basis of objective evidence, the existence of the causal link between increased imports of the product concerned and serious injury or threat thereof. When factors other than increased imports are causing injury to the domestic industry at the same time, such injury shall not be attributed to increased imports.
The competent authorities shall publish promptly, in accordance with the provisions of Article 3, a detailed analysis of the case under investigation as well as a demonstration of the relevance of the factors examined.
Article 5
Application of Safeguard Measures
In cases in which a quota is allocated among supplying countries, the Member applying the restrictions may seek agreement with respect to the allocation of shares in the quota with all other Members having a substantial interest in supplying the product concerned. In cases in which this method is not reasonably practicable, the Member concerned shall allot to Members having a substantial interest in supplying the product shares based upon the proportions, supplied by such Members during a previous representative period, of the total quantity or value of imports of the product, due account being taken of any special factors which may have affected or may be affecting the trade in the product.
A Member may depart from the provisions in subparagraph (a) provided that consultations under paragraph 3 of Article 12 are conducted under the auspices of the Committee on Safeguards provided for in paragraph 1 of Article 13 and that clear demonstration as provided to the Committee that (i) imports from certain Members have increased in disproportionate percentage in relation to the total increase of imports of the product concerned in the representative period, (ii) the reasons for the departure from the provisions in subparagraph (a) are justified, and (iii) the conditions of such departure are equitable to all suppliers of the product concerned. The duration of any such measure shall not be extended beyond the initial period under paragraph 1 of Article 7. The departure referred to above shall not be permitted in the case of threat of serious injury.
Article 6
Provisional Safeguard Measures
In critical circumstances where delay would cause damage which it would be difficult to repair, a Member may take a provisional safeguard measure pursuant to a preliminary determination that there is clear evidence that increased imports have caused or are threatening to cause serious injury. The duration of the provisional measure shall not exceed 200 days, during which period the pertinent requirements of Articles 2 through 7 and 12 shall be met. Such measures should take the form of tariff increases to be promptly refunded if the subsequent investigation referred to in paragraph 2 of Article 4 does not determine that increased imports have caused or threatened to cause serious injury to a domestic industry. The duration of any such provisional measure shall be counted as a part of the initial period and any extension referred to in paragraphs 1, 2 and 3 of Article 7.
Article 7
Duration and Review of Safeguard Measures
Notwithstanding the provisions of paragraph 5, a safeguard measure with a duration of 180 days or less may be applied again to the import of a product if:
at least one year has elapsed since the date of introduction of a safeguard measure on the import of that product; and
such a safeguard measure has not been applied on the same product more than twice in the five-year period immediately preceding the date of introduction of the measure.
Article 8
Level of Concessions and Other Obligations
Article 9
Developing Country Members
Article 10
Pre-existing Article XIX Measures
Members shall terminate all safeguard measures taken pursuant to Article XIX of GATT 1947 that were in existence on the date of entry into force of the WTO Agreement not later than eight years after the date on which they were first applied or five years after the date of entry into force of the WTO Agreement, whichever comes later.
Article 11
Prohibition and Elimination of Certain Measures
A Member shall not take or seek any emergency action on imports of particular products as set forth in Article XIX of GATT 1994 unless such action conforms with the provisions of that Article applied in accordance with this Agreement.
Furthermore, a Member shall not seek, take or maintain any voluntary export restraints, orderly marketing arrangements or any other similar measures on the export or the import side ( 162 ) ( 163 ). These include actions taken by a single Member as well as actions under agreements, arrangements and understandings entered into by two or more Members. Any such measure in effect on the date of entry into force of the WTO Agreement shall be brought into conformity with this Agreement or phased out in accordance with paragraph 2.
This Agreement does not apply to measures sought, taken or maintained by a Member pursuant to provisions of GATT 1994 other than Article XIX, and Multilateral Trade Agreements in Annex 1A other than this Agreement, or pursuant to protocols and agreements or arrangements concluded within the framework of GATT 1994.
Article 12
Notification and Consultation
A Member shall immediately notify the Committee on Safeguards upon:
initiating an investigatory process relating to serious injury or threat thereof and the reasons for it;
making a finding of serious injury or threat thereof caused by increased imports; and
taking a decision to apply or extend a safeguard measure.
Article 13
Surveillance
A Committee on Safeguards is hereby established, under the authority of the Council for Trade in Goods, which shall be open to the participation of any Member indicating its wish to serve on it. The Committee will have the following functions:
to monitor, and report annually to the Council for Trade in Goods on, the general implementation of this Agreement and make recommendations towards its improvement;
to find, upon request of an affected Member, whether or not the procedural requirements of this Agreement have been complied with in connection with a safeguard measure, and report its findings to the Council for Trade in Goods;
to assist Members, if they so request, in their consultations under the provisions of this Agreement;
to examine measures covered by Article 10 and paragraph 1 of Article 11, monitor the phase-out of such measures and report as appropriate to the Council for Trade in Goods;
to review, at the request of the Member taking a safeguard measure, whether proposals to suspend concessions or other obligations are ‘substantially equivalent’, and report as appropriate to the Council for Trade in Goods;
to receive and review all notifications provided for in this Agreement and report as appropriate to the Council for Trade in Goods; and
to perform any other function connected with this Agreement that the Council for Trade in Goods may determine.
Article 14
Dispute Settlement
The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding shall apply to consultations and the settlement of disputes arising under this Agreement.
ANNEX
EXCEPTION REFERRED TO IN PARAGRAPH 2 OF ARTICLE 11
Members concerned |
Product |
Termination |
EC/Japan |
Passenger cars, off road vehicles, light commercial vehicles, light trucks (up to 5 tonnes), and the same vehicles in wholly knocked-down form (CKD sets). |
31 December 1999 |
ANNEX 1 B
GENERAL AGREEMENT ON TRADE IN SERVICES
PART I |
SCOPE AND DEFINITION |
Article I |
Scope and Definition |
PART II |
GENERAL OBLIGATIONS AND DISCIPLINES |
Article II |
Most-Favoured-Nation Treatment |
Article III |
Transparency |
Article III bis |
Disclosure of Confidential Information |
Article IV |
Increasing Participation of Developing Countries |
Article V |
Economic Integration |
Article V bis |
Labour Markets Integration Agreements |
Article VI |
Domestic Regulation |
Article VII |
Recognition |
Article VIII |
Monopolies and Exclusive Service Suppliers |
Article IX |
Business Practices |
Article X |
Emergency Safeguard Measures |
Article XI |
Payments and Transfers |
Article XII |
Restrictions to Safeguard the Balance of Payments |
Article XIII |
Government Procurement |
Article XIV |
General Exceptions |
Article XV bis |
Security Exceptions |
Article XV |
Subsidies |
PART III |
SPECIFIC COMMITMENTS |
Article XVI |
Market Access |
Article XVII |
National Treatment |
Article XVIII |
Additional Commitments |
PART IV |
PROGRESSIVE LIBERALIZATION |
Article XIX |
Negotiation of Specific Commitments |
Article XX |
Schedules of Specific Commitments |
Article XXI |
Modification of Schedules |
PART V |
INSTITUTIONAL PROVISIONS |
Article XXII |
Consultation |
Article XXIII |
Dispute Settlement and Enforcement |
Article XXIV |
Council for Trade in Services |
Article XXV |
Technical Cooperation |
Article XXVI |
Relationship with Other International Organizations |
PART VI |
FINAL PROVISIONS |
Article XXVII |
Denial of Benefits |
Article XXVIII |
Definitions |
Article XXIX |
Annexes |
Annex on Article II Exemptions |
|
Annex on Movement of Natural Persons Supplying Services under the Agreement |
|
Annex on Air Transport Services |
|
Annex on Financial Services |
|
Second Annex on Financial Services |
|
Annex on Negotiations on Maritime Transport Services |
|
Annex on Telecommunications |
|
Annex on Negotiations on Basic Telecommunications |
GENERAL AGREEMENT ON TRADE IN SERVICES
MEMBERS,
RECOGNIZING the growing importance of trade in services for the growth and development of the world economy;
WISHING to establish a multilateral framework of principles and rules for trade in services with a view to the expansion of such trade under conditions of transparency and progressive liberalization and as a means of promoting the economic growth of all trading partners and the development of developing countries;
DESIRING the early achievement of progressively higher levels of liberalization of trade in services through successive rounds of multilateral negotiations aimed at promoting the interests of all participants on a mutually advantageous basis and at securing an overall balance of rights and obligations, while giving due respect to national policy objectives;
RECOGNIZING the right of Members to regulate, and to introduce new regulations, on the supply of services within their territories in order to meet national policy objectives and, given asymmetries existing with respect to the degree of development of services regulations in different countries, the particular need of developing countries to exercise this right;
DESIRING to facilitate the increasing participation of developing countries in trade in services and the expansion of their service exports including inter alia through the strengthening of their domestic services capacity and its efficiency and competitiveness;
TAKING particular account of the serious difficulty of the least-developed countries in view of their special economic situation and their development, trade and financial needs;
HEREBY AGREE AS FOLLOWS:
PART I
SCOPE AND DEFINITION
Article I
Scope and Definition
For the purposes of this Agreement, trade in services is defined as the supply of a service:
from the territory of one Member into the territory of any other Member;
in the territory of one Member to the service consumer of any other Member;
by a service supplier of one Member, through commercial presence in the territory of any other Member;
by a service supplier of one Member, through presence of natural persons of a Member in the territory of any other Member.
For the purposes of this Agreement:
‘measures by Members’ means measures taken by:
central, regional or local governments and authorities; and
non-governmental bodies in the exercise of powers delegated by central, regional or local governments or authorities;
In fulfilling its obligations and commitments under the Agreement, each Member shall take such reasonable measures as may be available to it to ensure their observance by regional and local governments and authorities and non-governmental bodies within its territory;
‘services’ includes any service in any sector except services supplied in the exercise of governmental authority;
‘a service supplied in the exercise of governmental authority’ means any service which is supplied neither on a commercial basis, nor in competition with one or more service suppliers.
PART II
GENERAL OBLIGATIONS AND DISCIPLINES
Article II
Most-Favoured-Nation Treatment
Article III
Transparency
Article III bis
Disclosure of Confidential Information
Nothing in this Agreement shall require any Member to provide confidential information, the disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, or which would prejudice legitimate commercial interests of particular enterprises, public or private.
Article IV
Increasing Participation of Developing Countries
The increasing participation of developing country Members in world trade shall be facilitated through negotiated specific commitments, by different Members pursuant to Parts III and IV of this Agreement, relating to:
the strengthening of their domestic services capacity and its efficiency and competitiveness inter alia through access to technology on a commercial basis;
the improvement of their access to distribution channels and information networks; and
the liberalization of market access in sectors and modes of supply of export interest to them.
Developed country Members, and to the extent possible other Members, shall establish contact points within two years from the date of entry into force of the WTO Agreement to facilitate the access of developing country Members' service suppliers to information, related to their respective markets, concerning:
commercial and technical aspects of the supply of services;
registration, recognition and obtaining of professional qualifications; and
the availability of services technology.
Article V
Economic Integration
This Agreement shall not prevent any of its Members from being a party to or entering into an agreement liberalizing trade in services between or among the parties to such an agreement, provided that such an agreement:
has substantial sectoral coverage ( 165 ), and
provides for the absence or elimination of substantially all discrimination, in the sense of Article XVII, between or among the parties, in the sectors covered under subparagraph (a), through:
elimination of existing discriminatory measures, and/or
prohibition of new or more discriminatory measures,
either at the entry into force of that agreement or on the basis of a reasonable time-frame, except for measures permitted under Articles XI, XII, XIV and XIV bis.
Where developing countries are parties to an agreement of the type referred to in paragraph 1, flexibility shall be provided for regarding the conditions set out in paragraph 1, particularly with reference to subparagraph (b) thereof, in accordance with the level of development of the countries concerned, both overall and in individual sectors and subsectors.
Notwithstanding paragraph 6, in the case of an agreement of the type referred to in paragraph 1 involving only developing countries, more favourable treatment may be granted to juridical persons owned or controlled by natural persons of the parties to such an agreement.
Members which are parties to any agreement referred to in paragraph 1 shall promptly notify any such agreement and any enlargement or any significant modification of that agreement to the Council for Trade in Services. They shall also make available to the Council such relevant information as may be requested by it. The Council may establish a working party to examine such an agreement or enlargement or modification of that agreement and to report to the Council on its consistency with this Article.
Members which are parties to any agreement referred to in paragraph 1 which is implemented on the basis of a time-frame shall report periodically to the Council for Trade in Services on its implementation. The Council may establish a working party to examine such reports if it deems such a working party necessary.
Based on the reports of the working parties referred to in subparagraphs (a) and (b), the Council may make recommendations to the parties as it deems appropriate.
Article V bis
Labour Markets Integration Agreements
This Agreement shall not prevent any of its Members from being a party to an agreement establishing full integration ( 166 ) of the labour markets between or among the parties to such an agreement, provided that such an agreement:
exempts citizens of parties to the agreement from requirements concerning residency and work permits;
is notified to the Council for Trade in Services.
Article VI
Domestic Regulation
Each Member shall maintain or institute as soon as practicable judicial, arbitral or administrative tribunals or procedures which provide, at the request of an affected service supplier, for the prompt review of, and where justified, appropriate remedies for, administrative decisions affecting trade in services. Where such procedures are not independent of the agency entrusted with the administrative decision concerned, the Member shall ensure that the procedures in fact provide for an objective and impartial review.
The provisions of subparagraph (a) shall not be construed to require a Member to institute such tribunals or procedures where this would be inconsistent with its constitutional structure or the nature of its legal system.
With a view to ensuring that measures relating to qualification requirements and procedures, technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, the Council for Trade in Services shall, through appropriate bodies it may establish, develop any necessary disciplines. Such disciplines shall aim to ensure that such requirements are inter alia:
based on objective and transparent criteria, such as competence and the ability to supply the service;
not more burdensome than necessary to ensure the quality of the service;
in the case of licensing procedures, not in themselves a restriction on the supply of the service.
In sectors in which a Member has undertaken specific commitments, pending the entry into force of disciplines developed in these sectors pursuant to paragraph 4, the Member shall not apply licensing and qualification requirements and technical standards that nullify or impair such specific commitments in a manner which:
does not comply with the criteria outlined in subparagraphs 4(a), (b) or (c); and
could not reasonably have been expected of that Member at the time the specific commitments in those sectors were made.
In determining whether a Member is in conformity with the obligation under paragraph 5(a), account shall be taken of international standards of relevant international organizations ( 167 ) applied by that Member.
Article VII
Recognition
Each Member shall:
within 12 months from the date on which the WTO Agreement takes effect for it, inform the Council for Trade in Services of its existing recognition measures and state whether such measures are based on agreements or arrangements of the type referred to in paragraph 1;
promptly inform the Council for Trade in Services as far in advance as possible of the opening of negotiations on an agreement or arrangement of the type referred to in paragraph 1 in order to provide adequate opportunity to any other Member to indicate their interest in participating in the negotiations before they enter a substantive phase;
promptly inform the Council for Trade in Services when it adopts new recognition measures or significantly modifies existing ones and state whether the measures are based on an agreement or arrangement of the type referred to in paragraph 1.
Article VIII
Monopolies and Exclusive Service Suppliers
Article IX
Business Practices
Article X
Emergency Safeguard Measures
Article XI
Payments and Transfers
Article XII
Restrictions to Safeguard the Balance of Payments
The restrictions referred to in paragraph 1:
shall not discriminate among Members;
shall be consistent with the Articles of Agreement of the International Monetary Fund;
shall avoid unnecessary damage to the commercial, economic and financial interests of any other Member;
shall not exceed those necessary to deal with the circumstances described in paragraph 1;
shall be temporary and be phased out progressively as the situation specified in paragraph 1 improves.
Members applying the provisions of this Article shall consult promptly with the Committee on Balance-of-Payments Restrictions on restrictions adopted under this Article.
The Ministerial Conference shall establish procedures ( 168 ) for periodic consultations with the objective of enabling such recommendations to be made to the Member concerned as it may deem appropriate.
Such consultations shall assess the balance-of-payment situation of the Member concerned and the restrictions adopted or maintained under this Article, taking into account inter alia such factors as:
the nature and extent of the balance-of-payments and the external financial difficulties;
the external economic and trading environment of the consulting Member;
alternative corrective measures which may be available.
The consultations shall address the compliance of any restrictions with paragraph 2, in particular the progressive phaseout of restrictions in accordance with paragraph 2(e).
In such consultations, all findings of statistical and other facts presented by the International Monetary Fund relating to foreign exchange, monetary reserves and balance of payments, shall be accepted and conclusions shall be based on the assessment by the Fund of the balance-of-payments and the external financial situation of the consulting Member.
Article XIII
Government Procurement
Article XIV
General Exceptions
Subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, or a disguised restriction on trade in services, nothing in this Agreement shall be construed to prevent the adoption or enforcement by any Member of measures:
necessary to protect public morals or to maintain public order ( 169 );
necessary to protect human, animal or plant life or health;
necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Agreement including those relating to:
the prevention of deceptive and fraudulent practices or to deal with the effects of a default on services contracts;
the protection of the privacy of individuals in relation to the processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;
safety;
inconsistent with Article XVII, provided that the difference in treatment is aimed at ensuring the equitable or effective ( 170 ) imposition or collection of direct taxes in respect of services or service suppliers of other Members;
inconsistent with Article II, provided that the difference in treatment is the result of an agreement on the avoidance of double taxation or provisions on the avoidance of double taxation in any other international agreement or arrangement by which the Member is bound.
Article XIV bis
Security Exceptions
Nothing in this Agreement shall be construed:
to require any Member to furnish any information, the disclosure of which it considers contrary to its essential security interests; or
to prevent any Member from taking any action which it considers necessary for the protection of its essential security interests:
relating to the supply of services as carried out directly or indirectly for the purpose of provisioning a military establishment;
relating to fissionable and fusionable materials or the materials from which they are derived;
taken in time of war or other emergency in international relations; or
to prevent any Member from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security.
Article XV
Subsidies
PART III
SPECIFIC COMMITMENTS
Article XVI
Market Access
In sectors where market-access commitments are undertaken, the measures which a Member shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire territory, unless otherwise specified in its Schedule, are defined as:
limitations on the number of service suppliers whether in the form of numerical quotas, monopolies, exclusive service suppliers or the requirements of an economic needs test;
limitations on the total value of service transactions or assets in the form of numerical quotas or the requirement of an economic needs test;
limitations on the total number of service operations or on the total quantity of service output expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test ( 173 );
limitations on the total number of natural persons that may be employed in a particular service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or, the requirement of an economic needs test;
measures which restrict or require specific types of legal entity or joint venture through which a service supplier may supply a service; and
limitations on the participation of foreign capital in terms of maximum percentage limit on foreign shareholding or the total value of individual or aggregate foreign investment.
Article XVII
National Treatment
Article XVIII
Additional Commitments
Members may negotiate commitments with respect to measures affecting trade in services not subject to scheduling under Articles XVI or XVII, including those regarding qualifications, standards or licensing matters. Such commitments shall be inscribed in a Member's Schedule.
PART IV
PROGRESSIVE LIBERALIZATION
Article XIX
Negotiation of Specific Commitments
Article XX
Schedules of Specific Commitments
Each Member shall set out in a schedule the specific commitments it undertakes under Part III of this Agreement. With respect to sectors where such commitments are undertaken, each Schedule shall specify:
terms, limitations and conditions on market access;
conditions and qualifications on national treatment;
undertakings relating to additional commitments;
where appropriate the time-frame for implementation of such commitments; and
the date of entry into force of such commitments.
Article XXI
Modification of Schedules
A Member (referred to in this Article as the ‘modifying Member’) may modify or withdraw any commitment in its Schedule, at any time after three years have elapsed from the date on which that commitment entered into force, in accordance with the provisions of this Article.
A modifying Member shall notify its intent to modify or withdraw a commitment pursuant to this Article to the Council for Trade in Services no later than three months before the intended date of implementation of the modification or withdrawal.
At the request of any Member the benefits of which under this Agreement may be affected (referred to in this Article as an ‘affected Member’) by a proposed modification or withdrawal notified under subparagraph l(b), the modifying Member shall enter into negotiations with a view to reaching agreement on any necessary compensatory adjustment. In such negotiations and agreement, the Members concerned shall endeavour to maintain a general level of mutually advantageous commitments not less favourable to trade than that provided for in Schedules of specific commitments prior to such negotiations.
Compensatory adjustments shall be made on a most-favoured-nation basis.
If agreement is not reached between the modifying Member and any affected Member, before the end of the period provided for negotiations, such affected Member may refer the matter to arbitration. Any affected Member that wishes to enforce a right that it may have to compensation must participate in the arbitration.
If no affected Member has requested arbitration, the modifying Member shall be free to implement the proposed modification or withdrawal.
The modifying Member may not modify or withdraw its commitment until it has made compensatory adjustments in conformity with the findings of the arbitration.
If the modifying Member implements its proposed modification or withdrawal and does not comply with the findings of the arbitration, any affected Member that participated in the arbitration may modify or withdraw substantially equivalent benefits in conformity with those findings. Notwithstanding Article II, such a modification or withdrawal may be implemented solely with respect to the modifying Member.
PART V
INSTITUTIONAL PROVISIONS
Article XXII
Consultation
Article XXIII
Dispute Settlement and Enforcement
Article XXIV
Council for Trade in Services
Article XXV
Technical Cooperation
Article XXVI
Relationship with Other International Organizations
The General Council shall make appropriate arrangements for consultation and cooperation with the United Nations and its specialized agencies as well as with other inter-governmental organizations concerned with services.
PART VI
FINAL PROVISIONS
Article XXVII
Denial of Benefits
A Member may deny the benefits of this Agreement:
to the supply of a service, if it establishes that the service is supplied from or in the territory of a non-Member or of a Member to which the denying Member does not apply the WTO Agreement.
in the case of the supply of a maritime transport service, if it establishes that the service is supplied:
by a vessel registered under the laws of a non-Member or of a Member to which the denying Member does not apply the WTO Agreement, and
by a person which operates and/or uses the vessel in whole or in part but which is of a non-Member or of a Member to which the denying Member does not apply the WTO Agreement;
to a service supplier that is a juridical person, if it establishes that it is not a service supplier of another Member, or that it is a service supplier of a Member to which the denying Member does not apply the WTO Agreement.
Article XXVIII
Definitions
For the purpose of this Agreement:
‘measure’ means any measure by a Member, whether in the form of a law, regulation, rule, procedure, decision, administrative action, or any other form;
‘supply of a service’ includes the production, distribution, marketing, sale and delivery of a service;
‘measures by Members affecting trade in services’ include measures in respect of
the purchase, payment or use of a service;
the access to and use of, in connection with the supply of a service, services which are required by those Members to be offered to the public generally;
the presence, including commercial presence, of persons of a Member for the supply of a service in the territory of another Member;
‘commercial presence’ means any type of business or professional establishment, including through
the constitution, acquisition or maintenance of a juridical person, or
the creation or maintenance of a branch or a representative office,
within the territory of a Member for the purpose of supplying a service;
‘sector’ of a service means,
with reference to a specific commitment, one or more, or all, subsectors of that service, as specified in a Member's Schedule,
otherwise, the whole of that service sector, including all of its subsectors;
‘service of another Member’ means a service which is supplied,
from or in the territory of that other Member, or in the case of maritime transport, by a vessel registered under the laws of that other Member, or by a person of that other Member which supplies the service through the operation of a vessel and/or its use in whole or in part; or
in the case of the supply of a service through commercial presence or through the presence of natural persons, by a service supplier of that other Member;
‘service supplier’ means any person that supplies a service ( 176 );
‘monopoly supplier of a service’ means any person, public or private, which in the relevant market of the territory of a Member is authorized or established formally or in effect by that Member as the sole supplier of that service;
‘service consumer’ means any person that receives or uses a service;
‘person’ means either a natural person or a juridical person;
‘natural person of another Member’ means a natural person who resides in the territory of that other Member or any other Member, and who under the law of that other Member:
is a national of that other Member; or
has the right of permanent residence in that other Member, in the case of a Member which:
does not have nationals; or
accords substantially the same treatment to its permanent residents as it does to its nationals in respect of measures affecting trade in services, as notified in its acceptance of or accession to the WTO Agreement, provided that no Member is obligated to accord to such permanent residents treatment more favourable than would be accorded by that other Member to such permanent residents. Such notification shall include the assurance to assume, with respect to those permanent residents, in accordance with its laws and regulations, the same responsibilities that other Member bears with respect to its nationals;
‘juridical person’ means any legal entity duly constituted or otherwise organized under applicable law, whether for profit or otherwise, and whether privately owned or governmentally owned, including any corporation, trust, partnership, joint venture, sole proprietorship or association;
‘juridical person of another Member’ means a juridical person which is either:
constituted or otherwise organized under the law of that other Member, and is engaged in substantive business operations in the territory of that Member or any other Member; or
in the case of the supply of a service through commercial presence, owned or controlled by:
natural persons of that Member; or
juridical persons of that other Member identified under subparagraph (i);
a juridical person is:
‘owned’ by persons of a Member if more than 50 per cent of the equity interest in it is beneficially owned by persons of that Member;
‘controlled’ by persons of a Member if such persons have the power to name a majority of its directors or otherwise to legally direct its actions;
‘affiliated’ with another person when it controls, or is controlled by, that other person; or when it and the other person are both controlled by the same person;
‘direct taxes’ comprise all taxes on total income, on total capital or on elements of income or of capital, including taxes on gains from the alienation of property, taxes on estates, inheritances and gifts, and taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
Article XXIX
Annexes
The Annexes to this Agreement are an integral part of this Agreement.
Annex on Article II Exemptions
SCOPE
1. This Annex specifies the conditions under which a Member, at the entry into force of this Agreement, is exempted from its obligations under paragraph 1 of Article II.
2. Any new exemptions applied for after the date of entry into force of the WTO Agreement shall be dealt with under paragraph 3 of Article IX of that Agreement.
Review
3. The Council for Trade in Services shall review all exemptions granted for a period of more than five years. The first such review shall take place no more than five years after the entry into force of the WTO Agreement.
4. The Council for Trade in Services in a review shall:
examine whether the conditions which created the need for the exemption still prevail; and
determine the date of any further review.
Termination
5. The exemption of a Member from its obligations under paragraph 1 of Article II of the Agreement with respect to a particular measure terminates on the date provided for in the exemption.
6. In principle, such exemptions should not exceed a period of 10 years. In any event, they shall be subject to negotiation in subsequent trade liberalizing rounds.
7. A Member shall notify the Council for Trade in Services at the termination of the exemption period that the inconsistent measure has been brought into conformity with paragraph 1 of Article II of the Agreement.
Lists of Article II Exemptions
[The agreed lists of exemptions under paragraph 2 of Article II will be annexed here in the treaty copy of the WTO Agreement.]
Annex on Movement of Natural Persons supplying Services under the Agreement
1. This Annex applies to measures affecting natural persons who are service suppliers of a Member, and natural persons of a Member who are employed by a service supplier of a Member, in respect of the supply of a service.
2. The Agreement shall not apply to measures affecting natural persons seeking access to the employment market of a Member, nor shall it apply to measures regarding citizenship, residence or employment on a permanent basis.
3. In accordance with Parts III and IV of the Agreement, Members may negotiate specific commitments applying to the movement of all categories of natural persons supplying services under the Agreement. Natural persons covered by a specific commitment shall be allowed to supply the service in accordance with the terms of that commitment.
4. The Agreement shall not prevent a Member from applying measures to regulate the entry of natural persons into, or their temporary stay in, its territory, including those measures necessary to protect the integrity of, and to ensure the orderly movement of natural persons across, its borders, provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing to any Member under the terms of a specific commitment ( 177 ).
Annex on Air Transport Services
1. This Annex applies to measures affecting trade in air transport services, whether scheduled or non-scheduled, and ancillary services. It is confirmed that any specific commitment or obligation assumed under this Agreement shall not reduce or affect a Member's obligations under bilateral or multilateral agreements that are in effect on the date of entry into force of the WTO Agreement.
2. The Agreement, including its dispute settlement procedures, shall not apply to measures affecting:
traffic rights, however granted; or
services directly related to the exercise of traffic rights,
except as provided in paragraph 3 of this Annex.
3. The Agreement shall apply to measures affecting:
aircraft repair and maintenance services;
the selling and marketing of air transport services;
computer reservation system (CRS) services.
4. The dispute settlement procedures of the Agreement may be invoked only where obligations or specific commitments have been assumed by the concerned Members and where dispute settlement procedures in bilateral and other multilateral agreements or arrangements have been exhausted.
5. The Council for Trade in Services shall review periodically, and at least every five years, developments in the air transport sector and the operation of this Annex with a view to considering the possible further application of the Agreement in this sector.
6. Definitions:
‘Aircraft repair and maintenance services’ mean such activities when undertaken on an aircraft or a part thereof while it is withdrawn from service and do not include so-called line maintenance.
‘Selling and marketing of air transport services’ mean opportunities for the air carrier concerned to sell and market freely its air transport services including all aspects of marketing such as market research, advertising and distribution. These activities do not include the pricing of air transport services nor the applicable conditions.
‘Computer reservation system (CRS) services’ mean services provided by computerized systems that contain information about air carriers' schedules, availability, fares and fare rules, through which reservations can be made or tickets may be issued.
‘Traffic rights’ mean the right for scheduled and non-scheduled services to operate and/or to carry passengers, cargo and mail for remuneration or hire from, to, within, or over the territory of a Member, including points to be served, routes to be operated, types of traffic to be carried, capacity to be provided, tariffs to be charged and their conditions, and criteria for designation of airlines, including such criteria as number, ownership, and control.
Annex on Financial Services
1. Scope and Definition
This Annex applies to measures affecting the supply of financial services. Reference to the supply of a financial service in this Annex shall mean the supply of a service as defined in paragraph 2 of Article I of the Agreement.
For the purposes of subparagraph 3(b) of Article I of the Agreement, ‘services supplied in the exercise of governmental authority’ means the following:
activities conducted by a central bank or monetary authority or by any other public entity in pursuit of monetary or exchange rate policies;
activities forming part of a statutory system of social security or public retirement plans; and
other activities conducted by a public entity for the account or with the guarantee or using the financial resources of the Government.
For the purposes of subparagraph 3(b) of Article I of the Agreement, if a Member allows any of the activities referred to in subparagraphs (b)(ii) or (b)(iii) of this paragraph to be conducted by its financial service suppliers in competition with a public entity or a financal service supplier, ‘services’ shall include such activities.
Subparagraph 3(c) of Article I of the Agreement shall not apply to services covered by this Annex.
2. Domestic Regulation
Notwithstanding any other provisions of the Agreement, a Member shall not be prevented from taking measures for prudential reasons, including for the protection of investors, depositors, policy holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the integrity and stability of the financial system. Where such measures do not conform with the provisions of the Agreement, they shall not be used as a means of avoiding the Member's commitments or obligations under the Agreement.
Nothing in the Agreement shall be construed to require a Member to disclose information relating to the affairs and accounts of individual customers or any confidential or proprietary information in the possession of public entities.
3. Recognition
A Member may recognize prudential measures of any other country in determining how the Member's measures relating to financial services shall be applied. Such recognition, which may be achieved through harmonization or otherwise, may be based upon an agreement or arrangement with the country concerned or may be accorded autonomously.
A Member that is a party to such an agreement or arrangement referred to in subparagraph (a), whether future or existing, shall afford adequate opportunity for other interested Members to negotiate their accession to such agreements or arrangements, or to negotiate comparable ones with it, under circumstances in which there would be equivalent regulation, oversight, implementation of such regulation, and, if appropriate, procedures concerning the sharing of information between the parties to the agreement or arrangement. Where a Member accords recognition autonomously, it shall afford adequate opportunity for any other Member to demonstrate that such circumstances exist.
Where a Member is contemplating according recognition to prudential measures of any other country, paragraph 4(b) of Article VII shall not apply.
4. Dispute Settlement
Panels for disputes on prudential issues and other financial matters shall have the necessary expertise relevant to the specific financial service under dispute.
5. Definitions
For the purposes of this Annex:
A financial service is any service of a financial nature offered by a financial service supplier of a Member. Financial services include all insurance and insurance-related services, and all banking and other financial services (excluding insurance). Financial services include the following activities:
Direct insurance (including co-insurance):
life
non-life
Re-insurance and retrocession;
Insurance inter-mediation, such as brokerage and agency;
Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services.
Acceptance of deposits and other repayable funds from the public;
Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction;
Financial leasing;
All payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers drafts;
Guarantees and commitments;
Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:
money market instruments (including cheques, bills, certificates of deposits);
foreign exchange;
derivative products including, but not limited to, futures and options;
exchange rate and interest rate instruments, including products such as swaps, forward rate agreements;
transferable securities;
other negotiable instruments and financial assets, including bullion.
Participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues;
Money broking;
Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial, depository and trust services;
Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments;
Provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services;
Advisory, intermediation and other auxiliary financial services on all the activities listed in subparagraphs (v) through (xv), including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.
A financial service supplier means any natural or juridical person of a Member wishing to supply or supplying financial services but the term ‘financial service supplier’ does not include a public entity.
‘Public entity’ means:
a government, a central bank or a monetary authority, of a Member, or an entity owned or controlled by a Member, that is principally engaged in carrying out governmental functions or activities for governmental purposes, not including an entity principally engaged in supplying financial services on commercial terms; or
a private entity, performing functions normally performed by a central bank or monetary authority, when exercising those functions.
Second Annex on Financial Services
1. Notwithstanding Article II of the Agreement and paragraphs 1 and 2 of the Annex on Article II Exemptions, a Member may, during a period of 60 days beginning four months after the date of entry into force of the WTO Agreement, list in that Annex measures relating to financial services which are inconsistent with paragraph 1 of Article II of the Agreement.
2. Notwithstanding Article XXI of the Agreement, a Member may, during a period of 60 days beginning four months after the date of entry into force of the WTO Agreement, improve, modify or withdraw all or part of the specific commitments on financial services inscribed in its Schedule.
3. The Council for Trade in Services shall establish any procedures necessary for the application of paragraphs 1 and 2.
Annex on Negotiatons on Maritime Transport Services
1. Article II and the Annex on Article II Exemptions, including the requirement to list in the Annex any measure inconsistent with most-favoured-nation treatment that a Member will maintain, shall enter into force for international shipping, auxiliary services and access to and use of port facilities only on:
the implementation date to be determined under paragraph 4 of the Ministerial Decision on Negotiations on Maritime Transport Services; or,
should the negotiations not succeed, the date of the final report of the Negotiating Group on Maritime Transport Services provided for in that Decision.
2. Paragraph 1 shall not apply to any specific commitment on maritime transport services which is inscribed in a Member's Schedule.
3. From the conclusion of the negotiations referred to in paragraph 1, and before the implementation date, a Member may improve, modify or withdraw all or part of its specific commitments in this sector without offering compensation, notwithstanding the provisions of Article XXI.
Annex on Telecommunications
1. Objectives
Recognizing the specificities of the telecommunications services sector and, in particular, its dual role as a distinct sector of economic activity and as the underlying transport means for other economic activities, the Members have agreed to the following Annex with the objective of elaborating upon the provisions of the Agreement with the respect to measures affecting access to and use of public telecommunications transport networks and services. Accordingly, this Annex provides notes and supplementary provisions to the Agreement.
2. Scope
This Annex shall apply to all measures of a Member that affect access to and use of public telecommunications transport networks and services ( 178 ).
This Annex shall not apply to measures affecting the cable or broadcast distribution of radio or television programming.
Nothing in this Annex shall be construed:
to require a Member to authorize a service supplier of any other Member to establish, construct, acquire, lease, operate, or supply telecommunications transport networks or services, other than as provided for in its Schedule; or
to require a Member (or to require a Member to oblige service suppliers under its jurisdiction) to establish, construct, acquire, lease, operate or supply telecommunications transport networks or services not offered to the public generally.
3. Definitions
For the purposes of this Annex:
‘Telecommunications’ means the transmission and reception of signals by any electromagnetic means.
‘Public telecommunications transport service’ means any telecommunications transport service required, explicitly or in effect, by a Member to be offered to the public generally. Such services may include inter alia telegraph, telephone, telex, and data transmission typically involving the real-time transmission of customer-supplied information between two or more points without any end-to-end change in the form or content of the customer's information.
‘Public telecommunications transport network’ means the public telecommunications infrastructure which permits telecommunications between and among defined network termination points.
‘Intra-corporate communications’ means telecommunications through which a company communicates within the company or with or among its subsidiaries, branches and, subject to a Member's domestic laws and regulations, affiliates. For these purposes, ‘subsidiaries’, ‘branches’ and, where applicable, ‘affiliates’ shall be as defined by each Member. ‘Intra-corporate communications’ in this Annex excludes commercial or non-commercial services that are supplied to companies that are not related subsidiaries, branches or affiliates, or that are offered to customers or potential customers.
Any reference to a paragraph or subparagraph of this Annex includes all subdivisions thereof.
4. Transparency
In the application of Article III of the Agreement, each Member shall ensure that relevant information on conditions affecting access to and use of public telecommunications transport networks and services is publicly available, including: tariffs and other terms and conditions of service; specifications of technical interfaces with such networks and services; information on bodies responsible or the preparation and adoption of standards affecting such access and use; conditions applying to attachment of terminal or other equipment; and notifications, registration or licensing requirements, if any.
5. Access to and use of Public Telecommunications Transport Networks and Services
Each Member shall ensure that any service supplier of any other Member is accorded access and use of public telecommunications transport networks and services on reasonable and non-discriminatory terms and conditions, for the supply of a service included in its Schedule. This obligation shall be applied inter alia through paragraphs (b) through (f) ( 179 ).
Each Member shall ensure that service suppliers of any other Member have access to and use of any public telecommunications transport network or service offered within or across the border of that Member, including private leased circuits, and to this end shall ensure, subject to paragraphs (e) and (f), that such suppliers are permitted:
to purchase or lease and attach terminal or other equipment which interfaces with the network and which is necessary to supply a supplier's services;
to interconnect private leased or owned circuits with public telecommunications transport networks and services or with circuits leased or owned by another service supplier; and
to use operating protocols of the service supplier's choice in the supply of any service, other than as necessary to ensure the availability of telecommunications transport networks and services to the public generally.
Each Member shall ensure that service suppliers of any other Member may use public telecommunications transport networks and services for the movement of information within and across borders, including for intra-corporate communications of such service suppliers, and for access to information contained in data bases or otherwise stored in machine-readable form in the territory of any Member. Any new or amended measures of a Member significantly affecting such use shall be notified and shall be subject to consultation, in accordance with relevant provisions of the Agreement.
Notwithstanding the preceding paragraph, a Member may take such measures as are necessary to ensure the security and confidentiality of messages, subject to the requirement that such measures are not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade in services.
Each Member shall ensure that no condition is imposed on access to and use of public telecommunications transport networks and services other than as necessary:
to safeguard the public service responsibilities of suppliers of public telecommunications transport networks and services, in particular their ability to make their networks or services available to the public generally;
to protect the technical integrity of public telecommunications transport networks or services; or
to ensure that service suppliers of any other Member do not supply services unless permitted pursuant to commitments in the Member's Schedule.
Provided that they satisfy the criteria set out in paragraph (e), conditions for access to and use of public telecommunications transport networks and services may include: -
restrictions on resale or shared use of such services;
a requirement to use specified technical interfaces, including interface protocols, for inter-connection with such networks and services;
requirements, where necessary, for the inter-operability of such services and to encourage the achievement of the goals set out in paragraph 7(a);
type approval of terminal or other equipment which interfaces with the network and technical requirements relating to the attachment of such equipment to such networks;
restrictions on inter-connection of private leased or owned circuits with such networks or services or with circuits leased or owned by another service supplier; or
notification, registration and licensing.
Notwithstanding the preceding paragraphs of this section, a developing country Member may, consistent with its level of development, place reasonable conditions on access to and use of public telecommunications transport networks and services necessary to strengthen its domestic telecommunications infrastructure and service capacity and to increase its participation in international trade in telecommunications services. Such conditions shall be specified in the Member's Schedule.
6. Technical Cooperation
Members recognize that an efficient, advanced telecommunications infrastructure in countries, particularly developing countries, is essential to the expansion of their trade in services. To this end, Members endorse and encourage the participation, to the fullest extent practicable, of developed and developing countries and their suppliers of public telecommunications transport networks and services and other entities in the development programmes of international and regional organizations, including the International Telecommunication Union, the United Nations Development Programme, and the International Bank for Reconstruction and Development.
Members shall encourage and support telecommunications cooperation among developing countries at the international, regional and sub-regional levels.
In cooperation with relevant international organizations, Members shall make available, where practicable, to developing countries information with respect to telecommunications services and developments in telecommunications and information technology to assist in strengthening their domestic telecommunications services sector.
Members shall give special consideration to opportunities for the least-developed countries to encourage foreign suppliers of telecommunications services to assist in the transfer of technology, training and other activities that support the development of their telecommunications infrastructure and expansion of their telecommunications services trade.
7. Relation to International Organizations and Agreements
Members recognize the importance of international standards for global compatibility and inter-operability of telecommunication networks and services and undertake to promote such standards through the work of relevant international bodies, including the International Telecommunication Union and the International Organization for Standardization.
Members recognize the role played by inter-governmental and non-governmental organizations and agreements in ensuring the efficient operation of domestic and global telecommunications services, in particular the International Telecommunication Union. Members shall make appropriate arrangements, where relevant, for consultation with such organizations on matters arising from the implementation of this Annex.
Annex on Negotiations on Basic Telecommunications
1. Article II and the Annex on Article II Exemptions, including the requirement to list in the Annex any measure inconsistent with most-favoured-nation treatment that a Member will maintain, shall enter into force for basic telecommunications only on:
the implementation date to be determined under paragraph 5 of the Ministerial Decision on Negotiations on Basic Telecommunications; or,
should the negotiations not succeed, the date of the final report of the Negotiating Group on Basic Telecommunications provided for in that Decision.
2. Paragraph 1 shall not apply to any specific commitment on basic telecommunications which is inscribed in a Member's Schedule.
ANNEX 1 C
AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS
PART I |
GENERAL PROVISIONS AND BASIC PRINCIPLES |
PART II |
STANDARDS CONCERNING THE AVAILABILITY, SCOPE AND USE OF INTELLECTUAL PROPERTY RIGHTS |
1. |
Copyright and Related Rights |
2. |
Trademarks |
3. |
Geographical Indications |
4. |
Industrial Designs |
5. |
Patents |
6. |
Layout-Designs (Topographies) of Integrated Circuits |
7. |
Protection of Undisclosed Information |
8. |
Control of Anti-Competitive Practices in Contractual Licences |
PART III |
ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS |
1 |
General Obligations |
2 |
Civil and Administrative Procedures and Remedies |
3 |
Provisional Measures |
4 |
Special Requirements Related to Border Measures |
5 |
Criminal Procedures |
PART IV |
ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS AND RELATED INTER-PARTES PROCEDURES |
PART V |
DISPUTE PREVENTION AND SETTLEMENT |
PART VI |
TRANSITIONAL ARRANGEMENTS |
PART VII |
INSTITUTIONAL ARRANGEMENTS; FINAL PROVISIONS |
AGREEMENT ON TRADE-RELATED ASPECTS OF INTELLECTUAL PROPERTY RIGHTS
MEMBERS,
DESIRING to reduce distortions and impediments to international trade, and taking into account the need to promote effective and adequate protection of intellectual property rights, and to ensure that measures and procedures to enforce intellectual property rights do not themselves become barriers to legitimate trade;
RECOGNIZING to this end, the need for new rules and disciplines concerning:
the applicability of the basic principles of GATT 1994 and of relevant international intellectual property agreements or conventions;
the provision of adequate standards and principles concerning the availability, scope and use of trade-related intellectual property rights;
the provision of effective and appropriate means for the enforcement of trade-related intellectual property rights, taking into account differences in national legal systems;
the provision of effective and expeditious procedures for the multilateral prevention and settlement of disputes between governments; and
transitional arrangements aiming at the fullest participation in the results of the negotiations;
RECOGNIZING the need for a multilateral framework of principles, rules and disciplines dealing with international trade in counterfeit goods;
RECOGNIZING that intellectual property rights are private rights;
RECOGNIZING the underlying public policy objectives of national systems for the protection of intellectual property, including developmental and technological objectives;
RECOGNIZING also the special needs of the least-developed country Members in respect of maximum flexibility in the domestic implementation of laws and regulations in order to enable them to create a sound and viable technological base;
EMPHASIZING the importance of reducing tensions by reaching strengthened commitments to resolve disputes on trade-related intellectual property issues through multilateral procedures;
DESIRING to establish a mutually supportive relationship between the WTO and the World Intellectual Property Organization (referred to in this Agreement as ‘WIPO’) as well as other relevant international organizations;
HEREBY AGREE AS FOLLOWS:
PART I
GENERAL PROVISIONS AND BASIC PRINCIPLES
Article 1
Nature and Scope of Obligations
Article 2
Intellectual Property Conventions
Article 3
National Treatment
Article 4
Most-Favoured-Nation Treatment
With regard to the protection of intellectual property, any advantage, favour, privilege or immunity granted by a Member to the nationals of any other country shall be accorded immediately and unconditionally to the nationals of all other Members. Exempted from this obligation are any advantage, favour, privilege or immunity accorded by a Member:
deriving from international agreements on judicial assistance or law enforcement of a general nature and not particularly confined to the protection of intellectual property;
granted in accordance with the provisions of the Berne Convention (1971) or the Rome Convention authorizing that the treatment accorded be a function not of national treatment but of the treatment accorded in another country;
in respect of the rights of performers, producers of phonograms and broadcasting organizations not provided under this Agreement;
deriving from international agreements related to the protection of intellectual property which entered into force prior to the entry into force of the WTO Agreement, provided that such agreements are notified to the Council for TRIPS and do not constitute an arbitrary or unjustifiable discrimination against nationals of other Members.
Article 5
Multilateral Agreements on Acquisition or Maintenance of Protection
The obligations under Articles 3 and 4 do not apply to procedures provided in multilateral agreements concluded under the auspices of WIPO relating to the acquisition or maintenance of intellectual property rights.
Article 6
Exhaustion
For the purposes of dispute settlement under this Agreement, subject to the provisions of Articles 3 and 4 nothing in this Agreement shall be used to address the issue of the exhaustion of intellectual property rights.
Article 7
Objectives
The protection and enforcement of intellectual property rights should contribute to the promotion of technological innovation and to the transfer and dissemination of technology, to the mutual advantage of producers and users of technological knowledge and in a manner conductive to social and economic welfare, and to a balance of rights and obligations.
Article 8
Principles
PART II
STANDARDS CONCERNING THE AVAILABILITY, SCOPE AND USE OF INTELLECTUAL PROPERTY RIGHTS
Section 1
Article 9
Relation to the Berne Convention
Article 10
Computer Programs and Compilations of Data
Article 11
Rental Rights
In respect of at least computer programs and cinematographic works, a Member shall provide authors and their successors in title the right to authorize or to prohibit the commercial rental to the public of originals or copies of their copyright works. A Member shall be excepted from this obligation in respect of cinematographic works unless such rental has led to widespread copying of such works which is materially impairing the exclusive right of reproduction conferred in that Member on authors and their successors in title. In respect of computer programs, this obligation does not apply to rentals where the program itself is not the essential object of the rental.
Article 12
Term of Protection
Whenever the term of protection of a work, other than a photographic work or a work of applied art, is calculated on a basis other than the life of a natural person, such term shall be no less than 50 years from the end of the calendar year of authorized publication, or, failing such authorized publication within 50 years from the making of the work, 50 years from the end of the calendar year of making.
Article 13
Limitations and Exceptions
Members shall confine limitatons or exceptions to exclusive rights to certain special cases which do not conflict with a normal exploitation of the work and do not unreasonably prejudice the legitimate interests of the right holder.
Article 14
Protection of Performers, Producers of Phonograms (Sound Recordings) and Broadcasting Organizations
Section 2
Article 15
Protectable Subject Matter
Article 16
Rights Conferred
Article 17
Exceptions
Members may provide limited exceptions to the rights conferred by a trademark, such as fair use of descriptive terms, provided that such exceptions take account of the legitimate interests of the owner of the trademark and of third parties.
Article 18
Term of Protection
Initial registration, and each renewal of registration, of a trademark shall be for a term of no less than seven years. The registration of a trademark shall be renewable indefinitely.
Article 19
Requirement of Use
Article 20
Other Requirements
The use of a trademark in the course of trade shall not be justifiably encumbered by special requirements, such as use with another trademark, use in a special form or use in a manner detrimental to its capability to distinguish the goods or services of one undertaking from those of other undertakings. This will not preclude a requirement prescribing the use of the trademark identifying the undertaking producing the goods or services along with, but without linking it to, the trademark distinguishing the specific goods or services in question of that undertaking.
Article 21
Licensing and Assignment
Members may determine conditions on the licensing and assignment of trademarks, it being understood that the compulsory licensing of trademarks shall not be permitted and that the owner of a registered trademark shall have the right to assign the trademark with or without the transfer of the business to which the trademark belongs.
Section 3
Article 22
Protection of Geographical Indications
In respect of geographical indications, Members shall provide the legal means for interested parties to prevent:
the use of any means in the designation or presentation of a good that indicates or suggests that the good in question originates in a geographical area other than the true place of origin in a manner which misleads the public as to the geographical origin of the good;
any use which constitutes an act of unfair competition within the meaning of Article l0bis of the Paris Convention (1967).
Article 23
Additional Protection for Geographical Indications for Wines and Spirits
Article 24
International Negotiations; Exceptions
Where a trademark has been applied for or registered in good faith, or where rights to a trademark have been acquired through use in good faith either:
before the date of application of these provisions in that Member as defined in Part VI; or
before the geographical indication is protected in its country of origin;
measures adopted to implement this Section shall not prejudice eligibility for or the validity of the registration of a trademark, or the right to use a trademark, on the basis that such a trademark is identical with, or similar to, a geographical indication.
Section 4
Article 25
Requirements for Protection
Article 26
Protection
Section 5
Article 27
Patentable Subject Matter
Members may also exclude from patentability:
diagnostic, therapeutic and surgical methods for the treatment of humans or animals;
plants and animals other than micro-organisms, and essentially biological processes for the production of plants or animals other than non-biological and microbiological processes. However, Members shall provide for the protection of plant varieties either by patents or by an effective sui generis system or by any combination thereof. The provisions of this subparagraph shall be reviewed four years after the date of entry into force of the WTO Agreement.
Article 28
Rights Conferred
A patent shall confer on its owner the following exclusive rights:
where the subject matter of a patent is a product, to prevent third parties not having the owner's consent from the acts of: making, using, offering for sale, selling, or importing ( 185 ) for these purposes that product;
where the subject matter of a patent is a process, to prevent third parties not having the owner's consent from the act of using the process, and from the acts of: using, offering for sale, selling, or importing for these purposes at least the product obtained directly by that process.
Article 29
Conditions on Patent Applicants
Article 30
Exceptions to Rights Conferred
Members may provide limited exceptions to the exclusive rights conferred by a patent, provided that such exceptions do not unreasonably conflict with a normal exploitation of the patent and do not unreasonably prejudice the legitimate interests of the patent owner, taking account of the legitimate interests of third parties.
Article 31
Other Use Without Authorization of the Right Holder
Where the law of a Member allows for other use ( 186 ) of the subject matter of a patent without the authorization of the right holder, including use by the government or third parties authorized by the government, the following provisions shall be respected:
authorization of such use shall be considered on its individual merits;
such use may only be permitted if, prior to such use, the proposed user has made efforts to obtain authorization from the right holder on reasonable commercial terms and conditions and that such efforts have not been successful within a reasonable period of time. This requirement may be waived by a Member in the case of a national emergency or other circumstances of extreme urgency or in cases of public non-commercial use. In situations of national emergency or other circumstances of extreme urgency, the right holder shall, nevertheless, be notified as soon as reasonably practicable. In the case of public non-commercial use, where the government or contractor, without making a patent search, knows or has demonstrable grounds to know that a valid patent is or will be used by or for the government, the right holder shall be informed promptly;
the scope and duration of such use shall be limited to the purpose for which it was authorized, and in the case of semi-conductor technology shall only be for public non-commercial use or to remedy a practice determined after judicial or administrative process to be anti-competitive;
such use shall be non-exclusive;
such use shall be non-assignable, except with that part of the enterprise or goodwill which enjoys such use;
any such use shall be authorized predominantly for the supply of the domestic market of the Member authorizing such use;
authorization for such use shall be liable, subject to adequate protection of the legitimate interests of the persons so authorized, to be terminated if and when the circumstances which led to it cease to exist and are unlikely to recur. The competent authority shall have the authority to review, upon motivated request, the continued existence of these circumstances;
the right holder shall be paid adequate remuneration in the circumstances of each case, taking into account the economic value of the authorization;
the legal validity of any decision relating to the authorization of such use shall be subject to judicial review or other independent review by a distinct higher authority in that Member;
any decision relating to the remuneration provided in respect of such use shall be subject to judicial review or other independent review by a distinct higher authority in that Member;
Members are not obliged to apply the conditions set forth in subparagraphs (b) and (f) where such use is permitted to remedy a practice determined after judicial or administrative process to be anticompetitive. The need to correct anti-competitive practices may be taken into account in determining the amount of remuneration in such cases. Competent authorities shall have the authority to refuse termination of authorization if and when the conditions which led to such authorization are likely to recur;
where such use is authorized to permit the exploitation of a patent (‘the second patent’) which cannot be exploited without infringing another patent (‘the first patent’), the following additional conditions shall apply:
the invention claimed in the second patent shall involve an important technical advance of considerable economic significance in relation to the invention claimed in the first patent;
the owner of the first patent shall be entitled to a cross-licence on reasonable terms to use the invention claimed in the second patent; and
the use authorized in respect of the first patent shall be non-assignable except with the assignment of the second patent.
Article 32
Revocation/Forfeiture
An opportunity for judicial review of any decision to revoke or forfeit a patent shall be available.
Article 33
Term of Protection
The term of protection available shall not end before the expiration of a period of twenty years counted from the filing date ( 187 ).
Article 34
Process Patents: Burden of Proof
For the purposes of civil proceedings in respect of the infringement of the rights of the owner referred to in paragraph l(b) of Article 28, if the subject matter of a patent is a process for obtaining a product, the judicial authorities shall have the authority to order the defendant to prove that the process to obtain an identical product is different from the patented process. Therefore, Members shall provide, in at least one of the following circumstances, that any identical product when produced without the consent of the patent owner shall, in the absence of proof to the contrary, be deemed to have been obtained by the patented process:
if the product obtained by the patent process is new;
if there is a substantial likelihood that the identical product was made by the process and the owner of the patent has been unable through reasonable efforts to determine the process actually used.
Section 6
Article 35
Relation to the IPIC Treaty
Members agree to provide protection into the layout-designs (topographies) of integrated circuits (referred to in this Agreement as ‘layout-designs’) in accordance with Articles 2 through 7 (other than paragraph 3 of Article 6), Article 12 and paragraph 3 of Article 16 of the Treaty on Intellectual Property in Respect of Integrated Circuits and, in addition, to comply with the following provisions.
Article 36
Scope of the Protection
Subject to the provisions of paragraph 1 of Article 37, Members shall consider unlawful the following acts if performed without the authorization of the right holder: ( 188 ) imporating, selling, or otherwise distributing for commercial purposes a protected layout-design, an integrated circuit in which protected layout-design is incorporated, or an article incorporating such an integrated circuit only in so far as it continues to contain an unlawfully reproduced layout-design.
Article 37
Acts Not Requiring the Authorization of the Right Holder
Article 38
Term of Protection
Section 7
Article 39
Natural and legal persons shall have the possibility of preventing information lawfully within their control from being disclosed to, acquired by, or used by others without their consent in a manner contrary to honest commercial practices ( 189 ) so long as such information:
is secret in the sense that it is not, as a body or in the precise configuration and assembly of its components, generally known among or readily accessible to persons within the circles that normally deal with the kind of information in question;
has commercial vavlue because it is secret;
and
has been subject to reasonable steps under the circumstances, by the person lawfully in control of the information, to keep it secret.
Section 8
Article 40
PART III
ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS
Section 1
Article 41
Section 2
Article 42
Fair and Equitable Procedures
Members shall make available to right holders ( 190 ) civil judicial procedures concerning the enforcement of any intellectual property right covered by this Agreement. Defendants shall have the right to written notice which is timely and contains sufficient detail, including the basis of the claims. Parties shall be allowed to be represented by independent legal counsel, and procedures shall not impose overly burdensome requirements concerning mandatory personal appearances. All parties to such procedures shall be duly entitled to substantiate their claims and to present all relevant evidence. The procedure shall provide a means to identify and protect confidential information, unless this would be contrary to existing constitutional requirements.
Article 43
Evidence
Article 44
Injunctions
Article 45
Damages
Article 46
Other Remedies
In order to create an effective deterrent to infringement, the judicial authorities shall have the authority to order that goods that they have found to be infringing be, without compensation of any sort, disposed of outside the channels of commerce in such a manner as to avoid any harm caused to the right holder, or, unless this would be contrary to existing constitutional requirements, destroyed. The judicial authorities shall also have the authority to order that materials and implements the predominant use of which has been in the creation of the infringing goods be, without compensation of any sort, disposed of outside the channels of commerce in such a manner as to minimize the risks of further infringements. In considering such requests, the need for proportionality between the seriousness of the infringement and the remedies ordered as well as the interests of third parties shall be taken into account. In regard to counterfeit trademark goods, the simple removal of the trademark unlawfully affixed shall not be sufficient, other than in exceptional cases, to permit release of the goods into the channels of commerce.
Article 47
Right of Information
Members may provide that the judicial authorities shall have the authority, unless this would be out of proportion to the seriousness of the infringement, to order the infringer to inform the right holder of the identity of third persons involved in the production and distribution of the infringing goods or services and of their channels of distribution.
Article 48
Indemnification of the Defendant
Article 49
Administrative Procedures
To the extent that any civil remedy can be ordered as a result of administrative procedures on the merits of a case, such procedures shall conform to principles equivalent in substance to those set forth in this Section.
Section 3
Article 50
The judicial authorities shall have the authority to order prompt and effective provisional measures:
to prevent an infringement of any intellectual property right from occurring, and in particular to prevent the entry into the channels of commerce in their jurisdiction of goods, including imported goods immediately after customs clearance;
to preserve relevant evidence in regard to the alleged infringement.
Section 4
191 )
(Article 51
Suspension of Release by Customs Authorities
Members shall, in conformity with the provisions set below, adopt procedures ( 192 ) to enable a right holder, who has valid grounds for suspecting that the importation of counterfeit trademark or pirated copyright goods ( 193 ) may take place, to lodge an application in writing with competent authorities, administrative or judicial, for the suspension by the customs authorities of the release into free circulation of such goods. Members may enable such an application to be made in respect of goods which involve other infringements of intellectual property rights, provided that the requirements of this Section are met. Members may also provide for corresponding procedures concerning the suspension by the customs authorities of the release of infringing goods destined for exportation from their territories.
Article 52
Application
Any right holder initiating the procedures under Article 51 shall be required to provide adequate evidence to satisfy the competent authorities that, under the laws of the country of importation, there is prima facie an infringement of the right holder's intellectual property right and to supply a sufficiently detailed description. of the goods to make them readily recognizable by the customs authorities. The competent authorities shall inform the applicant within a reasonable period whether they have accepted the application and, where determined by the competent authorities, the period for which the customs authorities will take action.
Article 53
Security or Equivalent Assurance
Article 54
Notice of Suspension
The importer and the applicant shall be promptly notified of the suspension of the release of goods according to Article 51.
Article 55
Duration of Suspension
If, within a period not exceeding 10 working days after the applicant has been served notice of the suspension, the customs authorities have not been informed that proceedings leading to a decision on the merits of the case have been initiated by a party other than the defendant, or that the duly empowered authority has taken provisional measures prolonging the suspension of the release of the goods, the goods shall be released, provided that all other conditions for importation or exportation have been complied with; in appropriate cases, this time-limit may be extended by another 10 working days. If proceedings leading to a decision on the merits of the case have been initiated, a review, including a right to be heard, shall take place upon request of the defendant with a view to deciding, within a reasonable period, whether these measures shall be modified, revoked or confirmed. Notwithstanding the above, where the suspension of the release of goods is carried out or continued in accordance with a provisional judicial measure, the provisions of paragraph 6 of Article 50 shall apply.
Article 56
Indemnification of the Importer and of the Owner of the Goods
Relevant authorities shall have the authority to order the applicant to pay the importer, the consignee and the owner of the goods appropriate compensation for any injury caused to them through the wrongful detention of goods or through the detention of goods released pursuant to Article 55.
Article 57
Right of Inspection and Information
Without prejudice to the protection of confidential information, Members shall provide the competent authorities the authority to give the right holder sufficient opportunity to have any goods detained by the customs authorities inspected in order to substantiate the right holder's claims. The competent authorities shall also have authority to give the importer an equivalent opportunity to have any such goods inspected. Where a positive determination has been made on the merits of a case, Members may provide the competent authorities the authority to inform the right holder of the names and addresses of the consignor, the importer and the consignee and of the quantity of the goods in question.
Article 58
Ex Officio Action
Where Members require competent authorities to act upon their own initiative and to suspend the release of goods in respect of which they have acquired prima facie evidence that an intellectual property right is being infringed:
the competent authorities may at any time seek from the right holder any information that may assist them to exercise these powers;
the importer and the right holder shall be promptly notified of the suspension. Where the importer has lodged an appeal against the suspension with the competent authorities, the suspension shall be subject to the conditions, mutatis mutandis, set out at Article 55;
Members shall only exempt both public authorities and officials from liability to appropriate remedial measures where actions are taken or intended in good faith.
Article 59
Remedies
Without prejudice to other rights of action open to the right holder and subject to the right of the defendant to seek review by a judicial authority, competent authorities shall have the authority to order the destruction or disposal of infringing goods in accordance with the principles set out in Article 46. In regard to counterfeit trademark goods, the authorities shall not allow the re-exportation of the infringing goods in an unaltered state or subject them to a different customs procedure, other than in exceptional circumstances.
Article 60
De Minimis Imports
Members may exclude from the application of the above provisions small quantities of goods of a non-commercial nature contained in travellers' personal luggage or sent in small consignments.
Section 5
Article 61
Members shall provide for criminal procedures and penalties to be applied at least in cases of wilful trademark counterfeiting or copyright piracy on a commercial scale. Remedies available shall include imprisonment and/or monetary fines sufficient to provide a deterrent, consistently with the level of penalties applied for crimes of a corresponding gravity. In appropriate cases, remedies available shall also include the seizure, forfeiture and destruction of the infringing goods and of any materials and implements the predominant use of which has been in the commission of the offence. Members may provide for criminal procedures and penalties to be applied in other cases of infringement of intellectual property rights, in particular where they are committed wilfully and on a commercial scale.
PART IV
ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS AND RELATED INTER-PARTES PROCEDURES
Article 62
PART V
DISPUTE PREVENTION AND SETTLEMENT
Article 63
Transparency
Article 64
Dispute Settlement
PART VI
TRANSITIONAL ARRANGEMENTS
Article 65
Transitional Arrangements
Article 66
Least-Developed Country Members
Article 67
Technical Cooperation
In order to facilitate the implementation of this Agreement, developed country Members shall provide, on request and on mutually agreed terms and conditions, technical and financial cooperation in favour of developing and least-developed country Members. Such cooperation shall include assistance in the preparation of laws and regulations on the protection and enforcement of intellectual property rights as well as on the prevention of their abuse, and shall include support regarding the establishment or reinforcement of domestic offices and agencies relevant to these matters, including the training of personnel.
PART VII
INSTITUTIONAL ARRANGEMENTS; FINAL PROVISIONS
Article 68
Council for Trade-Related Aspects of Intellectual Property Rights
The Council for TRIPS shall monitor the operation of this Agreement and, in particular, Members' compliance with their obligations hereunder, and shall afford Members the opportunity of consulting on matters relating to the trade-related aspects of intellectual property rights. It shall carry out such other responsibilities as assigned to it by the Members, and it shall, in particular, provide any assistance requested by them in the context op dispute settlement procedures. In carrying out its functions, the Council for TRIPS may consult with and seek information from any source it deems appropriate. In consultation with WIPO, the Council shall seek to establish, within one year of its first meeting, appropriate arrangements for cooperation with bodies of that Organization.
Article 69
International Cooperation
Members agree to cooperate with each other with a view to eliminating international trade in goods infringing intellectual property rights. For this purpose, they shall establish and notify contact points in their administrations and be ready to exchange information on trade in infringing goods. They shall, in particular, promote the exchange of information and cooperation between customs authorities with regard to trade in counterfeit trademark goods and pirated copyright goods.
Article 70
Protection of Existing Subject Matter
Where a Member does not make available as of the date of entry into force of the WTO Agreement patent protection for pharmaceutical and agricultural chemical products commensurate with its obligations under Article 27, that Member shall:
notwithstanding the provisions of Part VI, provide as from the date of entry into force of the WTO Agreement a means by which applications for patents for such inventions can be filed;
apply to these applications, as of the date of application of this Agreement, the criteria for patentability as laid down in this Agreement as if those criteria were being applied on the date of filing in that Member or, where priority is available and claimed, the priority date of the application; and
provide patent protection in accordance with this Agreement as from the grant of the patent and for the remainder of the patent term, counted from the filing date in accordance with Article 33 of this Agreement, for those of these applications that meet the criteria for protection referred to in subparagraph (b).
Article 71
Review and Amendment
Article 72
Reservations
Reservations may not be entered in respect of any of the provisions of this Agreement without the consent of the other Members.
Article 73
Security Exceptions
Nothing in this Agreement shall be construed:
to require a Member to furnish any information the disclosure of which it considers contrary to its essential security interests; or
to prevent a Member from taking any action which it considers necessary for the protection of its essential security interests;
relating to fissionable materials or the materials from which they are derived;
relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on directly or indirectly for the purpose of supplying a military establishment;
taken in time of war or other emergency in international relations; or
to prevent a Member from taking any action in pursuance of its obligations under the United Nations Charter for the Maintenance of international peace and security.
ANNEX 2
UNDERSTANDING ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES
MEMBERS HEREBY AGREE AS FOLLOWS:
Article 1
Coverage and Application
Article 2
Administration
Article 3
General Provisions
Article 4
Consultations
Article 5
Good Offices, Conciliation and Mediation
Article 6
Establishment of Panels
Article 7
Terms of Reference of Panels
Panels shall have the following terms of reference unless the parties to the dispute agree otherwise within 20 days from the establishment of the panel:
‘To examine, in the light of the relevant provisions in (name of the covered agreement(s) cited by the parties to the dispute), the matter referred to the DSB by (name of party) in document ... and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in that/those agreement(s).’
Article 8
Composition of Panels
Article 9
Procedures for Multiple Complainants
Article 10
Third Parties
Article 11
Function of Panels
The function of panels is to assist the DSB in discharging its responsibilities under this Understanding and the covered agreements. Accordingly, a panel should make an objective assessment of the matter before it, including an objective assessment of the facts of the case and the applicability of and conformity with the relevant covered agreements, and make such other findings as will assist the DSB in making the recommendations or in giving the rulings provided for in the covered agreements. Panels should consult regularly with the parties to the dispute and give them adequate opportunity to develop a mutually satisfactory solution.
Article 12
Panel Procedures
Article 13
Right to Seek Information
Article 14
Confidentiality
Article 15
Interim Review Stage
Article 16
Adoption of Panel Reports
Article 17
Appellate Review
Standing Appellate Body
Procedures for Appellate Review
Adoption of Appellate Body Reports
Article 18
Communications with the Panel or Appellate Body
Article 19
Panel and Appellate Body Recommendations
Article 20
Time-frame for DSB Decisions
Unless otherwise agreed to by the parties to the dispute, the period from the date of establishment of the panel by the DSB until the date the DSB considers the panel or appellate report for adoption shall as a general rule not exceed nine months where the panel report is not appealed or 12 months where the report is appealed. Where either the panel or the Appellate Body has acted, pursuant to paragraph 9 of Article 12 of paragraph 5 of Article 17, to extend the time for providing its report, the additional time taken shall be added to the above periods.
Article 21
Surveillance of Implementation of Recommendations and Rulings
At a DSB meeting held within 30 days (201) after the date of adoption of the panel or Appellate Body report, the Member concerned shall inform the DSB of its intentions in respect of implementation of the recommendations and rulings of the DSB. If it is impracticable to comply immediately with the recommendations and rulings, the Member concerned shall have a reasonable period of time in which to do so. The reasonable period of time shall be:
the period of time proposed by the Member concerned, provided that such period is approved by the DSB; or, in the absence of such approval,
a period of time mutually agreed by the parties to the dispute within 45 days after the date of adoption of the recommendations and rulings; or, in the absence of such agreement,
a period of time determined through binding arbitration within 90 days after the date of adoption of the recommendations and rulings ( 204 ). In such arbitration, a guideline for the arbitrator ( 205 ) should be that the reasonable period of time to implement panel or Appellate Body recommendations should not exceed 15 months from the date of adoption of a panel or Appellate Body report. However, that time may be shorter or longer, depending upon the particular circumstances.
Article 22
Compensation and the Suspension of Concessions
In considering what concessions or other obligations to suspend, the complaining party shall apply the following principles and procedures:
the general principle is that the complaining party should first seek to suspend concessions or other obligations with respect to the same sector(s) as that in which the panel or Appellate Body has found a violation or other nullification or impairment;
if that party considers that it is not practicable or effective to suspend concessions or other obligations with respect to the same sector(s), it may seek to suspend concessions or other obligations in other sectors under the same agreement;
if that party considers that it is not practicable or effective to suspend concessions or other obligations with respect to other sectors under the same agreement, and that the circumstances are serious enough, it may seek to suspend concessions or other obligations under another covered agreement;
in applying the above principles, that party shall take into account:
the trade in the sector or under the agreement under which the panel or Appellate Body has found a violation or other nullification or impairment, and the importance of such trade to that party;
the broader economic elements related to the nullification or impairment and the broader economic consequences of the suspension of concessions or other obligations;
if that party decides to request authorization to suspend concessions or other obligations pursuant to subparagraphs (b) or (c), it shall state the reasons therefor in its request. At the same time as the request is forwarded to the DSB, it also shall be forwarded to the relevant Councils and also, in the case of a request pursuant to subparagraph (b), the relevant sectorial bodies;
for purposes of this paragraph, ‘sector’ means:
with respect to goods, all goods;
with respect to services, a principal sector as identified in the current ‘Services Sectoral Classification List’ which identifies such sectors ( 206 );
with respect to trade-related intellectual property rights, each of the categories of intellectual property rights covered in Section 1, or Section 2, or Section 3, or Section 4, or Section 5, or Section 6, or Section 7 of Part II, or the obligations under Part III, or Part IV of the Agreement on TRIPS;
for purposes of this paragraph, ‘agreement’ means:
with respect to goods, the agreements listed in Annex 1A of the WTO Agreement, taken as a whole as well as the Plurilateral Trade Agreements in so far as the relevant parties to the dispute are parties to these agreements;
with respect to services, the GATS;
with respect to intellectual property rights, the Agreement on TRIPS.
Article 23
Strengthening of the Multilateral System
In such cases, Members shall:
not make a determination to the effect that a violation has occurred, that benefits have been nullified or impaired or that the attainment of any objective of the covered agreements has been impeded, except through recourse to dispute settlement in accordance with the rules and procedures of this Understanding, and shall make any such determination consistent with the findings contained in the panel or Appellate Body report adopted by the DSB or an arbitration award rendered under this Understanding;
follow the procedures set forth in Article 21 to determine the reasonable period of time for the Member concerned to implement the recommendations and rulings; and
follow the procedures set forth in Article 22 to determine the level of suspension of concessions or other obligations and obtain DSB authorization in accordance with those procedures before suspending concessions or other obligations under the covered agreements in response to the failure of the Member concerned to implement the recommendations and rulings within that reasonable period of time.
Article 24
Special Procedures Involving Least-Developed Country Members
Article 25
Arbitration
Article 26
Where the provisions of paragraph l(b) of Article XXIII of GATT 1994 are applicable to a covered agreement, a panel or the Appellate Body may only make rulings and recommendations where a party to the dispute considers that any benefit accruing to it directly or indirectly under the relevant covered agreement is being nullified or impaired or the attainment of any objective of that Agreement is being impeded as a result of the application by a Member of any measure, whether or not it conflicts with the provisions of that Agreement. Where and to the extent that such party considers and a panel or the Appellate Body determines that a case concerns a measure that does not conflict with the provisions of a covered agreement to which the provisions of paragraph l(b) of Article XXIII of GATT 1994 are applicable, the procedures in this Understanding shall apply, subject to the following:
the complaining party shall present a detailed justification in support of any complaint relating to a measure which does not conflict with the relevant covered agreement;
where a measure has been found to nullify or impair benefits under, or impede the attainment of objectives, of the relevant covered agreement without violation thereof, there is no obligation to withdraw the measure. However, in such cases, the panel or the Appellate Body shall recommend that the Member concerned make a mutually satisfactory adjustment;
notwithstanding the provisions of Article 21, the arbitration provided for in paragraph 3 of Article 21, upon request of either party, may include a determination of the level of benefits which have been nullified or impaired, and may also suggest ways and means of reaching a mutually satisfactory adjustment; such suggestions shall not be binding upon the parties to the dispute;
notwithstanding the provisions of paragraph 1 of Article 22, compensation may be part of a mutually satisfactory adjustment as final settlement of the dispute.
Where the provisions of paragraph l(c) of Article XXIII of GATT 1994 are applicable to a covered agreement, a panel may only make rulings and recommendations where a party considers that any benefit accruing to it directly or indirectly under the relevant covered agreement is being nullified or impaired or the attainment of any objective of that Agreement is being impeded as a result of the existence of any situation other than those to which the provisions of paragraphs l(a) and l(b) of Article XXIII of GATT 1994 are applicable. Where and to the extent that such party considers and a panel determines that the matter is covered by this paragraph, the procedures of this Understanding shall apply only up to and including the point in the proceedings where the panel report has been circulated to the Members. The dispute settlement rules and procedures contained in the Decision of 12 April 1989 (BISD 36S/61-67) shall apply to consideration for adoption, and surveillance and implementation of recommendations and rulings. The following shall also apply:
the complaining party shall present a detailed justification in support of any argument made with respect to issues covered under this paragraph;
in cases involving matters covered by this paragraph, if a panel finds that cases also involve dispute settlement matters other than those covered by this paragraph, the panel shall circulate a report to the DSB addressing any such matters and a separate report on matters falling under this paragraph.
Article 27
Responsibilities of the Secretariat
APPENDIX 1
AGREEMENTS COVERED BY THE UNDERSTANDING
Agreement Establishing the World Trade Organization
Multilateral Trade Agreements
Annex 1A : Multilateral Agreements on Trade in Goods
Annex 1B : General Agreement on Trade in Services
Annex 1C : Agreement on Trade-Related Aspects of Intellectual Property Rights
Annex 2 : Understanding on Rules and Procedures Governing the Settlement of Disputes
Plurilateral Trade Agreements
Annex 4: |
Agreement on Trade in Civil Aircraft |
Agreement on Government Procurement |
|
International Dairy Agreement |
|
International Bovine Meat Agreement |
The applicability of this Understanding to the Plurilateral Trade Agreements shall be subject to the adoption of a decision by the parties to each agreement setting out the terms for the application of the Understanding to the individual agreement, including any special or additional rules or procedures for inclusion in Appendix 2, as notified to the DSB.
APPENDIX 2
SPECIAL OR ADDITIONAL RULES AND PROCEDURES CONTAINED IN THE COVERED AGREEMENTS
Agreement |
Rules and Procedures |
Agreement on the Application of Sanitary and Phytosanitary Measures |
11.2 |
Agreement on Textiles and Clothing |
2.14, 2.21, 4.4, 5.2, 5.4, 5.6, 6.9, 6.10, 6.11, 8.1 through 8.12 |
Agreement on Technical Barriers to Trade |
14.2 through 14.4, Annex 2 |
Agreement on Implementation of Article VI of GATT 1994 |
17.4 through 17.7 |
Agreement on Implementation of Article VII of GATT 1994 |
19.3 through 19.5, Annex II.2(f), 3, 9, 21 |
Agreement on Subsidies and Countervailing Measures |
4.2 through 4.12, 6.6, 7.2 through 7.10, 8.5, footnote 35, 24.4, 27.7, Annex V |
General Agreement on Trade in Services |
XXII:3, XXIII:3 |
Annex on Financial Services |
4 |
Annex on Air Transport Services |
4 |
Decision on Certain Dispute Settlement Procedures for the GATS |
1 through 5 |
This list of rules and procedures in this Appendix includes provisions where only a part of the provision may be relevant in this context. Any special or additional rules or procedures in the Plurilateral Trade Agreements as determined by the competent bodies of each agreement and as notified to the DSB. |
APPENDIX 3
WORKING PROCEDURES
1. In its proceedings the panel shall follow the relevant provision of this Understanding. In addition, the following working procedures shall apply.
2. The panel shall meet in closed session. The parties to the dispute, and interested parties, shall be present at the meetings only when invited by the panel to appear before it.
3. The deliberations of the panel and the documents submitted to it shall be kept confidential. Nothing in this Understanding shall preclude a party to a dispute from disclosing statements of its own positions to the public. Members shall treat as confidential information submitted by another Member to the panel which that Member has designated as confidential. Where a party to a dispute submits a confidential version of its written submissions to the panel, it shall also, upon request of a Member, provide a non-confidential summary of the information contained in its submissions that could be disclosed to the public.
4. Before the first substantive meeting of the panel with the parties, the parties to the dispute shall transmit to the panel written submissions in which they present the facts of the case and their arguments.
5. At its first substantive meeting with the parties, the panel shall ask the party which has brought the complaint to present its case. Subsequently, and still at the same meeting, the party against which the complaint has been brought shall be asked to present its point of view.
6. All third parties which have notified their interest in the dispute to the DSB shall be invited in writing to present their views during a session of the first substantive meeting of the panel set aside for that purpose. All such third parties may be present during the entirety of this session.
7. Formal rebuttals shall be made at a second substantive meeting of the panel. The party complained against shall have the right to take the floor first to be followed by the complaining party. The parties shall submit, prior to that meeting, written rebuttals to the panel.
8. The panel may at any time put questions to the parties and ask them for explanations either in the course of a meeting with the parties or in writing.
9. The parties to the dispute and any third party invited to present its views in accordance with Article 10 shall make available to the panel a written version of their oral statements.
10. In the interest of full transparency, the presentations, rebuttals and statements referred to in paragraphs 5 to 9 shall be made in the presence of the parties. Moreover, each party's written submissions, including any comments on the descriptive part of the report and responses to questions put by the panel, shall be made available to the other party or parties.
11. Any additional procedures specific to the panel.
12. Proposed timetable for panel work:
(a) Receipt of first written submissions of the parties: |
|
(1) complaining Party: |
3-6 weeks |
(2) Party complained against: |
2-3 weeks |
(b) Date, time and place of first substantive meeting with the parties; third party session: |
1-2 weeks |
(c) Receipt of written rebuttals of the parties: |
2-3 weeks |
(d) Date, time and place of second substantive meeting with the parties: |
1-2 weeks |
(e) Issuance of descriptive part of the report to the parties: |
2-4 weeks |
(f) Receipt of comments by the parties on the descriptive part of the report: |
2 weeks |
(g) Issuance of the interim report, including the findings and conclusions, to the parties: |
2-4 weeks |
(h) Deadline for party to request review of part(s) of report: |
1 week |
(i) Period of review by panel, including possible additional meeting with parties: |
2 weeks |
(j) Issuance of final report to parties to dispute: |
2 weeks |
(k) Circulation of the final report to the Members: |
3 weeks |
The above calendar may be changed in the light of unforeseen developments. Additional meetings with the parties shall be scheduled if required.
APPENDIX 4
EXPERT REVIEW GROUPS
The following rules and procedures shall apply to expert review groups established in accordance with the provisions of paragraph 2 of Article 13.
1. Expert review groups are under the panel's authority. Their terms of reference and detailed working procedures shall be decided by the panel, and they shall report to the panel.
2. Participation in expert review groups shall be restricted to persons of professional standing and experience in the field in question.
3. Citizens of parties to the dispute shall not serve on an expert review group without the joint agreement of the parties to the dispute, except in exceptional circumstances, when the panel considers that the need for specialized scientific expertise cannot be fulfilled otherwise. Government officials of parties to the dispute shall not serve on an expert review group. Members of expert review groups shall serve in their individual capacities and not as government representatives, nor as representatives of any organization. Governments or organizations shall therefore not give them instructions with regard to matters before an expert review group.
4. Expert review groups may consult and seek information and technical advice from any source they deem appropriate. Before an expert review group seeks such information or advice from a source within the jurisdiction of a Member, it shall inform the government of that Member. Any Member shall respond promptly and fully to any request by an expert review group for such information as the expert review group considers necessary and appropriate.
5. The parties to a dispute shall have access to all relevant information provided to an expert review group, unless it is of a confidential nature. Confidential information provided to the expert review group shall not be released without formal authorization from the government, organization or person providing the information. Where such information is requested from the expert review group but release of such information by the expert review group is not authorized, a non-confidential summary of the information will be provided by the government, organization or person supplying the information.
6. The expert review group shall submit a draft report to the parties to the dispute with a view to obtaining their comments, and taking them into account, as appropriate, in the final report, which shall also be issued to the parties to the dispute when it is submitted to the panel. The final report of the expert review group shall be advisory only.
ANNEX 3
TRADE POLICY REVIEW MECHANISM
MEMBERS HEREBY AGREE AS FOLLOWS:
A. Objectives
The purpose of the Trade Policy Reviews Mechanism (‘TPRM’) is to contribute to improved adherence by all Members to rules, disciplines and commitments made under the Multilateral Trade Agreements and, where applicable, the Plurilateral Trade Agreements, and hence to the smoother functioning of the multilateral trading system, by achieving greater transparency in, and understanding of, the trade policies and practices of Members. Accordingly, the review mechanism enables the regular collective appreciation and evaluation of the full range of individual Members' trade policies and practices and their impact on the functioning of the multilateral trading system. It is not, however, intended to serve as a basis for the enforcement of specific obligations under the Agreement or for dispute settlement procedures, or to impose new policy commitments on Members.
The assessment carried out under the review mechanism takes place, to the extent relevant, against the background of the wider economic and developmental needs, policies and objectives of the Member concerned, as well as of its external provision. However, the function of the review mechanism is to examine the impact of a Member's trade policies and practices of the multilateral trading system.
B. Domestic transparency
Members recognize the inherent value of domestic transparency of government decision-making on trade policy matters for both Members' economies and the multilateral trading system, and agree to encourage and promote greater transparency within their own systems, acknowledging that the implementation of domestic transparency must be on a voluntary basis and take account of each Member's legal and political systems.
C. Procedures for review
The Trade Policy Review Body (referred to herein as the ‘TPRB’) is hereby established to carry out trade policy reviews.
The trade policies and practices of all Members shall be subject to periodic review. The impact of individual Members on the functioning of the multilateral trading system, defined in terms of their share of world trade in a recent representative period, will be the determining factor in deciding on the frequency of reviews. The first four trading entities so identified (counting the European Communities as one) shall be subject to review every two years. The next 16 shall be reviewed every four years. Other Members shall be reviewed every six years, except that a longer period may be fixed for least-developed country Members. It is understood that the review of entities having a common external policy- covering more than one Member shall cover all components of policy affecting trade including relevant policies and practices of the individual Members. Exceptionally, in the event of changes in a Member's trade policies or practices that may have a significant impact on its trading partners, the Member concerned may be requested by the TPRB, after consultation, to bring forward its next review.
Discussions in the meetings of the TPRB shall be governed by the objectives set forth in paragraph A. The focus of these discussions shall be on the Member's trade policies and practices, which are the subject of the assessment under the review mechanism.
The TPRB shall establish a basic plan for the conduct of the reviews. It may also discuss and take note of update reports from Members. The TPRB shall establish a programme of reviews for each year in consultation with the Members directly concerned. In consultation with the Member or Members under review, the Chairman may choose discussants who, acting in their personal capacity, shall introduce the discussions in the TPRB.
The TPRB shall base its work on the following documentation:
a full report, referred to in paragraph D, supplied by the Member or Members under review;
a report, to be drawn up by the Secretariat on its own responsibility, based on the information available to it and that provided by the Member or Members concerned. The Secretariat should seek clarification from the Member or Members concerned of their trade policies and practices.
The reports by the Member under review and by the Secretariat, together with the minutes of the respective meeting of the TPRB, shall be published promptly after the review.
These documents will be forwarded to the Ministerial Conference, which shall take note of them.
D. Reporting
In order to achieve the fullest possible degree of transparency, each Member shall report regularly to the TPRB. Full reports shall describe the trade policies and practices pursued by the Member or Members concerned, based on an agreed format to be decided upon by the TPRB. This format shall initially be based on the Outline Format for Country Reports established by the Decision of 19 July 1989 (BISD 36S/406—409), amended as necessary to extend the coverage of reports to all aspects of trade policies covered by the Multilateral Trade Agreements in Annex 1 and, where applicable, the Plurilateral Trade Agreements. This format may be revised by the TPRB in the light of experience. Between reviews, Members shall provide brief reports when there are any significant changes in their trade policies; an annual update of statistical information will be provided according to the agreed format. Particular account shall be taken of difficulties pesented to least-developed country Members in compiling their reports. The Secretariat shall make available technical assistance on request to developing country Members, and in particular to the least-developed country Members. Information contained in reports should to the greatest extent possible be coordinated with notifications made under provisions of the Multilateral Trade Agreements and, where applicable, the Plurilateral Trade Agreements.
E. Relationship with the balance-of-payments provisions of GATT 1994 and GATS
Members recognize the need to minimize the burden for governments also subject to full consultations under the balance-of-payments provisions of GATT 1994 or GATS. To this end, the Chairman of the TPRB shall, in consultation with the Member or Members concerned, and with the Chairman of the Committee on Balance-of-Payments Restrictions, devise administrative arrangements that harmonize the normal rhythm of the trade policy review with the timetable for balance-of-payments consultations but do not postpone the trade policy review by more than 12 months.
F. Appraisal of the Mechanism
The TPRB shall undertake an appraisal of the operation of the TPRB not more than five years after the entry into force of the Agreement Establishing the WTO. The results of the appraisal will be presented to the Ministerial Conference. It may subsequently undertake appraisals fo the TPRB at intervals to be determined by it or as requested by the Ministerial Conference.
G. Overview of Development in the International Trading Environment
An annual overview of developments in the international trading environment which are having an impact on the multilateral trading system shall also be undertaken by the TPRB. The overview is to be assisted by an annual report by the Director-General setting out major activities of the WTO and highlighting significant policy issues affecting the trading system.
FINAL ACT
Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations
Marrakesh, 15 April 1994
1. Having met in order to conclude the Uruguay Round of Multilateral Trade Negotiations, representatives of the governments and of the European Communities, members of the Trade Negotiations Committee, agree that the Agreement Establishing the World Trade Organization (referred to in this Final Act as the ‘WTO Agreement’), the Ministerial Declarations and Decisions, and the Understanding on Commitments in Financial Services, as annexed hereto, embody the results of their negotiations and form an integral part of this Final Act.
2. By signing the present Final Act, the representatives agree
to submit, as appropriate, the WTO Agreement for the consideration of their respective competent authorities with a view to seeking approval of the Agreement in accordance with their procedures; and
to adopt the Ministerial Declarations and Decisions.
3. The representatives agree on the desirability of acceptance of the WTO Agreement by all participants in the Uruguay Round of Multilateral Trade Negotiations (hereinafter referred to as ‘participants’) with a view to its entry into force by 1 January 1995, or as early as possible thereafter. Not later than late 1994, Ministers will meet, in accordance with the final paragraph of the Punta del Este Ministerial Declaration, to decide on the international implementation of the results, including the timing of their entry into force.
4. The representatives agree that the WTO Agreement shall be open for acceptance as a whole, by signature or otherwise, by all participants pursuant to Article XIV thereof. The acceptance and entry into force of a Plurilateral Trade Agreement included in Annex 4 of the WTO Agreement shall be governed by the provisions of that Plurilateral Trade Agreement.
5. Before accepting the WTO Agreement, participants which are not contracting parties to the General Agreement on Tariffs and Trade must first have concluded negotiations for their accession to the General Agreement and become contracting parties thereto. For participants which are not contracting parties to the General Agreement as of the date of the Final Act, the Schedules are not definitive and shall be subsequently completed for the purpose of their accession to the General Agreement and acceptance of the WTO Agreement.
6. This Final Act and the texts annexed hereto shall be deposited with the Director-General to the CONTRACTING PARTIES to the General Agreement on Tariffs and Trade who shall promptly furnish to each participant a certified copy thereof.
Done at Marrakesh this fifteenth day of April one thousand nine hundred and ninety-four, in a single copy, in the English, French and Spanish languages, each text being authentic.
[List of signatures to be included in the treaty copy of the Final Act for signature]
DECISION ON MEASURES IN FAVOUR OF LEAST-DEVELOPED COUNTRIES
MINISTERS,
Recognizing the plight of the least-developed countries and the need to ensure their effective participation in the world trading system, and to take further measures to improve their trading opportunities;
Recognizing the specific needs of the least-developed countries in the area of market access where continued preferential access remains an essential means for improving their trading opportunities;
Reaffirming their commitment to implement fully the provisions concerning the least-developed countries contained in paragraphs 2(d), 6 and 8 of the Decision of 28 November 1979 on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries;
Having regard to the commitment of the participants as set out in Section B (vii) of Part I of the Punta del Este Ministerial Declaration;
1. DECIDE THAT, if not already provided for in the instruments negotiated in the course of the Uruguay Round, notwithstanding their acceptance of these instruments, the least-developed countries, and for so long as they remain in that category, while complying with the general rules set out in the aforesaid instruments, will only be required to undertake commitments and concessions to the extent consistent with their individual development, financial and trade needs, or their administrative and institutional capabilities. The least-developed countries shall be given additional time of one year from 15 April 1994 to submit their schedules as required in Article XI of the Agreement Establishing the World Trade Organization.
2. AGREE THAT:
Expeditious implementation of all special and differential measures taken in favour of least-developed countries including those taken within the context of the Uruguay Round shall be ensured through inter alia regular reviews.
to the extent possible, MFN concessions on tariff and non-tariff measures agreed in the Uruguay Round on products of export interest to the least-developed countries may be implemented autonomously, in advance and without staging. Consideration shall be given to further improve GSP and other schemes, for products of particular export interest to least-developed countries.
The rules set out in the various agreements and instruments and the transitional provisions in the Uruguay Round should be applied in a flexible and supportive manner for the least-developed countries. To this effect, sympathetic consideration shall be given to specific and motivated concerns raised by the least-developed countries in the appropriate Councils and Committees.
In the application of import relief measures and other measures referred to in paragraph 3(c) of Article XXXVII of GATT 1947 and the corresponding provision of GATT 1994, special consideration shall be given to the export interests of least-developed countries.
Least-developed countries shall be accorded substantially increased technical assistance in the development, strengthening and diversification of their production and export bases including those of services, as well as in trade promotion, to enable them to maximize the benefits from liberalized access to markets.
3. AGREE to keep under review the specific needs of the least-developed countries and to continue to seek the adoption of positive measures which facilitate the expansion of trading opportunities in favour of these countries.
DECLARATION ON THE CONTRIBUTION OF THE WORLD TRADE ORGANIZATION TO ACHIEVING GREATER COHERENCE IN GLOBAL ECONOMIC POLICY-MAKING
1. Ministers recognize that the globalization of the world economy has led to ever-growing interactions between the economic policies pursued by individual countries, including interactions between the structural, macro-economic, trade, financial and development aspects of economic policy-making. The task of achieving harmony between these policies falls primarily on governments at the national level, but their coherence internationally is an important and valuable element in increasing the effectiveness of these policies at national level. The Agreement reached in the Uruguay Round show that all the participating governments recognize the contribution that liberal trading policies can make to the healthy growth and development of their own economies and of the world economy as a whole.
2. Successful operation in each area of economic policy contributes to progress in other areas. Greater exchange rate stability, based on more orderly underlying economic and financial conditions, should contribute towards the expansion of trade, sustainable growth and development, and the correction of external imbalances. There is also a need for an adequate and timely flow of concessional and non-concessional financial and real investment resources to developing countries and for further efforts to address debt problems, to help ensure economic growth and development. Trade liberalization forms an increasingly important component in the success of the adjustment programmes that many countries are undertaking, often involving significant transitional social costs. In this connection, Ministers note the role of the World Bank and the IMF in supporting adjustment to trade liberalization, including support to net food-importing developing countries facing short-term costs arising from agricultural trade reforms.
3. The positive outcome of the Uruguay Round is a major contribution towards more coherent and complementary international economic policies. The results of the Uruguay Round ensure an expansion of market access to the benefit of all countries, as well as a framework of strengthened multilateral disciplines for trade. They also guarantee that trade policy will be conducted in a more transparent manner and with greater awareness of the benefits for domestic competitiveness of an open trading environment. The strengthened multilateral trading system emerging from the Uruguay Round has the capacity to provide an improved forum for liberalization, to contribute to more effective surveillance, and to ensure strict observance of multilaterally agreed rules and disciplines. These improvements mean that trade policy can in the future play a more substantial role in ensuring the coherence of global economic policy-making.
4. Ministers recognize, however, that difficulties the origins of which lie outside the trade field cannot be redressed through measures taken in the trade field alone. This underscores the importance of efforts to improve other elements of global economic policy-making to complement the effective implementation of the results achieved in the Uruguay Round.
5. The interlinkages between the different aspects of economic policy require that the international institutions with responsibilities in each of these areas follow consistent and mutually supportive policies. The World Trade Organization should therefore pursue and develop cooperation with the international organizations responsible for monetary and financial matters, while respecting the mandate, the confidentiality requirements and the necessary autonomy in decision-making procedures of each institution, and avoiding the imposition on governments of cross-conditionality or additional conditions. Ministers further invite the Director-General of the WTO to review with the Managing Director of the International Monetary Fund and the President of the World Bank, the implications of the WTO's responsibilities for its cooperation with the Bretton Woods institutions, as well as the forms such cooperation might take, with a view to achieving greater coherence in global economic policy-making.
DECISION ON NOTIFICATION PROCEDURES
Ministers decide to recommend adoption by the Ministerial Conference of the decision on improvement and review of notification procedures set out below.
MEMBERS,
Desiring to improve the operation of notification procedures under the Agreement Establishing the World Trade Organization (hereinafter referred to as the ‘WTO Agreement’), and thereby to contribute to the transparency of Members' trade policies and to the effectiveness of surveillance arrangements established to that end;
Recalling obligations under the WTO Agreement to publish and notify, including obligations assumed under the terms of specific protocols of accession, waivers, and other agreements entered into by Members;
AGREE AS FOLLOWS:
I. General obligation to notify
Members affirm their commitment to obligations under the Multilateral Trade Agreements and, where applicable, the Plurilateral Trade Agreements, regarding publication and notification.
Members recall their undertakings set out in the Understanding Regarding Notification, Consultation, Dispute Settlement and Surveillance adopted on 28 November 1979 (BISD 26S/210). With regard to their undertaking therein to notify, to the maximum extent possible, their adoption of trade measures affecting the operation of GATT 1994, such notification itself being without prejudice to views on the consistency of measures with or their relevance to rights and obligations under the Multilateral Trade Agreements and, where applicable, the Plurilateral Trade Agreements, Members agree to be guided, as appropriate, by the annexed list of measures. Members therefore agree that the introduction or modification of such measures is subject to the notification requirements of the 1979 Understanding.
II. Central registry of notifications
A central registry of notifications shall be established under the responsibility of the Secretariat. While Members will continue to follow existing notification procedures, the Secretariat shall ensure that the central registry records such elements of the information provided on the measure by the Member concerned as its purpose, its trade coverage, and the requirement under which it has been notified. The central registry shall cross-reference its records of notifications by Member and obligation.
The central registry shall inform each Member annually of the regular notification obligations to which that Member will be expected to respond in the course of the following year.
The central registry shall draw the attention of individual Members to regular notification requirements which remain unfulfilled.
Information in the central registry regarding individual notifications shall be made available on request to any Member entitled to receive the notification concerned.
III. Review of notification obligations and procedures
The Council for Trade in Goods will undertake a review of notification obligations and procedures under the Agreements in Annex 1A of the WTO Agreement. The review will be carried out by a working group, membership in which will be open to all Members. The group will be established immediately after the date of entry into force of the WTO Agreement.
The terms of reference of the working group will be:
ANNEX
INDICATIVE LIST ( 210 ) OF NOTIFIABLE MEASURES
Tariffs (including range and scope of bindings, GSP provisions, rates applied to members of free-trade areas/customs unions, other preferences)
Tariff quotas and surcharges
Quantitative restrictions, including voluntary export restraints and orderly marketing arrangements affecting imports
Other non-tariff measures such as licensing and mixing requirements; variable levies
Customs valuation
Rules of origin
Government procurement
Technical barriers
Safeguard actions
Anti-dumping actions
Countervailing actions
Export taxes
Export subsidies, tax exemptions and concessionary export financing
Free-trade zones, including in-bond manufacturing
Export restrictions, including voluntary export restraints and orderly marketing arrangements
Other government assistance, including subsidies, tax exemptions
Role of State-trading enterprises
Foreign exchange controls related to imports and exports
Government-mandated counter-trade
Any other measure covered by the Multilateral Trade Agreements in Annex 1A to the WTO Agreement
DECLARATION ON THE RELATIONSHIP OF THE WORLD TRADE ORGANIZATION WITH THE INTERNATIONAL MONETARY FUND
MINISTERS,
Noting the close relationship between the CONTRACTING PARTIES to the GATT 1947 and the International Monetary Fund, and the provisions of the GATT 1947 governing that relationship, in particular Article XV of the GATT 1947;
Recognizing the desire of participants to base the relationship of the World Trade Organization with the International Monetary Fund, with regard to the areas covered by the Multilateral Trade Agreements in Annex 1A of the WTO Agreement, on the provisions that have governed the relationship of the CONTRACTING PARTIES to the GATT 1947 with the International Monetary Fund;
Hereby reaffirm that, unless otherwise provided for in the Final Act, the relationship of the WTO with the International Monetary Fund, with regard to the areas covered by the Multilateral Trade Agreements in Annex 1A of the WTO Agreement, will be based on the provisions that have governed the relationship of the CONTRACTING PARTIES to the GATT 1947 with the International Monetary Fund.
DECISION ON MEASURES CONCERNING THE POSSIBLE NEGATIVE EFFECTS OF THE REFORM PROGRAMME ON LEAST-DEVELOPED AND NET FOOD-IMPORTING DEVELOPING COUNTRIES
1. Ministers recognize that the progressive implementation of the results of the Uruguay Round as a whole will generate increasing opportunities for trade expansion and economic growth to the benefit of all participants.
2. Ministers recognize that during the reform programme leading to greater liberalization of trade in agriculture least-developed and net food-importing developing countries may experience negative effects in terms of the availability of adequate supplies of basic foodstuffs from external sources on reasonable terms and conditions, including short-term difficulties in financing normal levels of commercial imports of basic foodstuffs.
3. Ministers accordingly agree to establish appropriate mechanisms to ensure that the implementation of the results of the Uruguay Round on trade in agriculture does not adversely affect the availability of food aid at a level which is sufficient to continue to provide assistance in meeting the food needs of developing countries, especially least-developed and net food-importing developing countries. To this end Ministers agree:
to review the level of food aid established periodically by the Committee on Food Aid under the Food Aid Convention 1986 and to initiate negotiations in the appropriate forum to establish a level of food aid commitments sufficient to meet the legitimate needs of developing countries during the reform programme;
to adopt guidelines to ensure that an increasing proportion of basic foodstuffs is provided to least-developed and net food-importing developing countries in fully grant form and/or on appropriate concessional terms in line with Article IV of the Food Aid Convention 1986;
to give full consideration in the context of their aid programmes to requests for the provision of technical and financial assistance to least-developed and net food-importing developing countries to improve their agricultural productivity and infrastructure.
4. Ministers further agree to ensure that any agreement relating to agricultural export credits makes appropriate provision for differential treatment in favour of least-developed and net food-importing developing countries.
5. Ministers recognize that as a result of the Uruguay Round certain developing countries may experience short-term difficulties in financing normal levels of commercial imports and that these countries may be eligible to draw on the resources of international financial institutions under existing facilities, or such facilities as may be established, in the context of adjustment programmes, in order to address such financing difficulties. In this regard Ministers take note of paragraph 37 of the report of the Director-General to the CONTRACTING PARTIES to GATT 1947 on his consultations with the Managing Director of the International Monetary Fund and the President of the World Bank (MTN.GNG/NG14/W/35).
6. The provisions of this Decision will be subject to regular review by the Ministerial Conference, and the follow-up to this Decision shall be monitored, as appropriate, by the Committee on Agriculture.
DECISION ON NOTIFICATION OF FIRST INTEGRATOIN UNDER ARTICLE 2.6 OF THE AGREEMENT ON TEXTILES AND CLOTHING
Ministers agree that the participants maintaining restrictions falling under paragraph 1 of Article 2 of the Agreement on Textiles and Clothing shall notify full details of the actions to be taken pursuant to paragraph 6 of Article 2 of that Agreement to the GATT Secretariat not later than 1 October 1994. The GATT Secretariat shall promptly circulate these notifications to the other participants for information. These notifications will be made available to the Textiles Monitoring Body, when established, for the purposes of paragraph 21 of Article 2 of the Agreement on Textiles and Clothing.
DECISION ON PROPOSED UNDERSTANDING IN WTO-ISO STANDARDS INFORMATION SYSTEM
Ministers decide to recommend that the Secretariat of the World Trade Organization reach an understanding with the International Organization for Standardization (‘ISO’) to establish an information system under which:
Isonet members shall transmit to the ISO/IEC Information Centre in Geneva the notifications referred to in paragraphs C and J of the Code of Good Practice for the Preparation, Adoption and Application of Standards in Annex 3 to the Agreement on Technical Barriers to Trade, in the manner indicated there;
the following (alpha)numeric classification systems shall be used in the work programmes referred to in paragraph J:
a standards classification system which would allow standardizing bodies to give for each standard mentioned in the work programme an (alpha)numeric indication of the subject matter;
a stage code system which would allow standardizing bodies to give for each standard mentioned in the work programme an (alpha)numeric indication of the stage of development of the standard; for this purpose, at least five stages of development should be distinguished: (1) the stage at which the decision to develop a standard has been taken, but technical work has not yet begun; (2) the stage at which technical work has begun, but the period for the submissoin of comments has not yet started; (3) the stage at which the period for the submission of comments has started, but has not yet been completed; (4) the stage at which the period for the submission of comments has been completed, but the standard has not yet been adopted; and (5) the stage at which the standard hs been adopted;
an identification system covering all international standards which would allow standardizing bodies to give for each standard mentioned in the work programme an (alpha )numeric indication of the international standard(s) used as a basis;
the ISO/IEC Information Centre shall promptly convey to the Secretariat copies of any notifications referred to in paragraph C of the Code of Good Practice;
the ISO/IEC Information Centre shall regularly publish the information received in the notifications made to it under paragraphs C and J of the Code of Good Practice; this publication, for which a reasonable fee may be charged, shall be available to Isonet members and through the Secretariat to the Members of the WTO.
DECISION ON REVIEW OF THE ISO/IEC INFORMATION CENTRE PUBLICATION
Ministers decide that in conformity with paragraph 1 of Article 13 of the Agreement on Technical Barriers to Trade in Annex 1A of the Agreement Establishing the World Trade Organization, the Committee on Technical Barriers to Trade established thereunder shall, without prejudice to provisions on consultation and dispute settlement, at least once a year review the publication provided by the ISO/IEC Information Centre on information received according to the Code of Good Practice for the Preparation, Adoption and Application of Standards in Annex 3 of the Agreement, for the purpose of affording Members opportunity of discussing any matters relating to the operation of that Code.
In order to facilitate this discussion, the Secretariat shall provide a list by Member of all standardizing bodies that have accepted the Code, as well as a list of those standardizing bodies that have accepted or withdrawn from the Code since the previous review.
The Secretariat shall also distribute promptly to the Members copies of the notifications it receives from the ISO/IEC Information Centre.
DECISION ON ANTI-CIRCUMVENTION
MINISTERS,
Noting that while the problem of circumvention of anti-dumping duty measures formed part of the negotiations which preceded the Agreement on Implementation of Article VI of GATT 1994, negotiators were unable to agree on specific text,
Mindful of the desirability of the applicability of uniform rules in this area as soon as possible,
decide to refer this matter to the Committee on Anti-Dumping Practices established under that Agreement for resolution.
DECISION ON REVIEW OF ARTICLE 17.6 OF THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VI OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
Ministers decide as follows:
The standard of review in paragraph 6 of Article 17 of the Agreement on Implementation of Article VI of GATT 1994 shall be reviewed after a period of three years with a view to considering the question of whether it is capable of general application.
DECLARATION ON DISPUTE SETTLEMENT PURSUANT TO THE AGREEMENT ON IMPLEMENTATION OF ARTICLE VI OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 OR PART V OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES
Ministers recognize, with respect to dispute settlement pursuant to the Agreement on Implementation of Article VI of GATT 1994 or Part V of the Agreement on Subsidies and Countervailing Measures, the need for the consistent resolution of disputes arising from anti-dumping and countervailing duty measures.
DECISION REGARDING CASES WHERE CUSTOMS ADMINISTRATIONS HAVE REASONS TO DOUBT THE TRUTH OR ACCURACY OF THE DECLARED VALUE
Ministers invite the Committee on Customs Valuation established under the Agreement on Implementation of Article VII of GATT 1994 to take the following decision:
THE COMMITTEE ON CUSTOMS VALUATION,
Reaffirming that the transaction value is the primary basis of valuation under the Agreement on Implementation of Article VII of GATT 1994 (hereinafter referred to as the ‘Agreement’);
Recognizing that the customs administration may have to address cases where it has reason to doubt the truth or accuracy of the particulars or of documents produced by traders in support of a declared value;
Emphasizing that in so doing the customs administration should not prejudice the legitimate commercial interests of traders;
Taking into account Article 17 of the Agreement, paragraph 6 of Annex III to the Agreement, and the relevant decisions of the Technical Committee on Customs Valuation;
DECIDES AS FOLLOWS:
1. When a declaration has been presented and were the customs administration has reason to doubt the truth or accuracy of the particulars or of documents produced in support of this declaration, the customs administration may ask the importer to provide further explanation, including documents or other evidence, that the declared value represents the total amount actually paid or payable for the imported goods, adjusted in accordance with the provisions of Article 8. If, after receiving further information, or in the absence of a response, the customs administration still has reasonable doubts about the truth or accuracy of the declared value, it may, bearing in mind the provisions of Article 11, be deemed that the customs value of the imported goods cannot be determined under the provisions of Article 1. Before taking a final decision, the customs administration shall communicate to the importer, in writing if requested, its grounds for doubting the truth or accuracy of the particulars or documents produced and the importer shall be given a reasonable opportunity to respond. When a final decision is made, the customs administration shall communicate to the importer in writing its decision and the grounds therefor.
2. It is entirely appropriate in applying the Agreement for one Member to assist another Member on mutually agreed terms.
DECISION ON TEXTS RELATING TO MINIMUM VALUES AND IMPORTS BY SOLE AGENTS, SOLE DISTRIBUTORS AND SOLE CONCESSIONAIRES
Ministers decide to refer the following texts to the Committee on Customs Valuation established under the Agreement on Implementation of Article VII of GATT 1994, for adoption.
I
Where a developing country makes a reservation to retain officially established minimum values within the terms of paragraph 2 of Annex III and shows good cause, the Committee shall give the request for the reservation sympathetic consideration.
Where a reservation is consented to, the terms and conditions referred to in paragraph 2 of Annex III shall take full account of the development, financial and trade needs of the developing country concerned.
II
1. A number of developing countries have a concern that problems may exist in the valuation of imports by sole agents, sole distributors and sole concessionaries. Under paragraph 1 of Article 20, developing country Members have a period of delay of up to five years prior to the application of the Agreement. In this context, developing country Members availing themselves of this provision could use the period to conduct appropriate studies and to take such other actions as are necessary to facilitate application.
2. In consideration of this, the Committee recommends that the Customs Cooperation Council assist developing country Members, in accordance with the provisions of Annex II, to formulate and conduct studies in areas identified as being of potential concern, including those relating to importations by sole agents, sole distribuors and sole concessionaires.
DECISION ON INSTITUTIONAL ARRANGEMENTS FOR THE GENERAL AGREEMENT ON TRADE IN SERVICES
Ministers decide to recommend that the Council for Trade in Services at its first meeting adopt the decision on subsidiary bodies set out below.
THE COUNCIL FOR TRADE IN SERVICES,
Acting pursuant to Article XXIV with a view to facilitating the operation and furthering the objectives of the General Agreement on Trade in Services,
DECIDES AS FOLLOWS:
1. Any subsidiary bodies that the Council may establish shall report to the Council annually or more often as necessary. Each such body shall establish its own rules of procedure, and may set up its own subsidiary bodies as appropriate.
2. Any sectoral committee shall carry out responsibilities as assigned to it by the Council, and shall afford Members the opportunity to consult on any matters relating to trade in services in the sector concerned and the operation of the sectoral annex to which it may pertain. Such responsibilities shall include:
to keep under continuous review and surveillance the application of the Agreement with respect to the sector concerned;
to formulate proposals or recommendations for consideration by the Council in connection with any matter relating to trade in the sector concerned;
if there is an annex pertaining to the sector, to consider proposals for amendment of that sectoral annex, and to make appropriate recommendations to the Council;
to provide a forum for technical discussions, to conduct studies on measures of Members and to conduct examinations of any other technical matters affecting trade in services in the sector concerned;
to provide technical assistance to developing country Members and developing countries negotiating accession to the Agreement Establishing the World Trade Organization in respect of the application of obligations or other matters affecting trade in services in the sector concerned; and
to cooperate with any other subsidiary bodies established under the General Agreement on Trade in Services or any international organizations active in any sector concerned.
3. There is hereby established a Committee on Trade in Financial Services which will have the responsibilities listed in paragraph 2.
DECISION ON CERTAIN DISPUTE SETTLEMENT PROCEDURES FOR THE GENERAL AGREEMENT ON TRADE IN SERVICES
Ministers decide to recommend that the Council for Trade in Services at its first meeting adopt the decision set out below.
THE COUNCIL FOR TRADE IN SERVICES,
Taking into account the specific nature of the obligations and specific commitments of the Agreement, and of trade in services, with respect to dispute settlement under Articles XXII and XXIII,
DECIDES AS FOLLOWS:
1. A roster of panelists shall be established to assist in the selection of panelists.
2. To this end, Members may suggest names of individuals possessing the qualifications referred to in paragraph 3 for inclusion on the roster, and shall provide a curriculum vitae of their qualifications including, if applicable, indication of sector-specific expertise.
3. Panels shall be composed of well-qualified governmental and/or non-governmental individuals who have experience in issues related to the General Agreement on Trade in Services and/or trade in services, including associated regulatory matters. Panelists shall serve in their individual capacities and not as representatives of any government or organization.
4. Panels for disputes regarding sectoral matters shall have the necessary expertise relevant to the specific services sectors which the dispute concerns.
5. The Secretariat shall maintain the roster and shall develop procedures for its administration in consultation with the Chairman of the Council.
DECISION ON TRADE IN SERVICES AND THE ENVIRONMENT
Ministers decide to recommend that the Council for Trade in Services at its first meeting adopt the decision set out below.
THE COUNCIL FOR TRADE IN SERVICES,
Acknowledging that measures necessary to protect the environment may conflict with the provisions of the Agreement; and
Noting that since measures necessary to protect the environment typically have as their objective the protection of human, animal or plant life or health, it is not clear that there is a need to provide for more than is contained in paragraph (b) of Article XIV;
DECIDES AS FOLLOWS:
1. In order to determine whether any modification of Article XIV of the Agreement is required to take account of such measures, to request the Committee on Trade and Environment to examine and report, with recommendations if any, on the relationship between services trade and the environment including the issue of sustainable development. The Committee shall also examine the relevance of inter-governmental agreements on the environment and their relationship to the Agreement.
2. The Committee shall report the results of its work to the first biennial meeting of the Ministerial Conference after the entry into force of the Agreement Establishing the World Trade Organization.
DECISION ON NEGOTIATIONS ON MOVEMENT OF NATURAL PERSONS
MINISTERS,
Noting the commitments resulting from the Uruguay Round negotiations on the movement of natural persons for the purpose of supplying services;
Mindful of the objectives of the General Agreement on Trade in Services, including the increasing participation of developing countries in trade in services and the expansion of their service exports;
Recognizing the importance of achieving higher levels of commitments on the movement of natural persons, in order to provide for a balance of benefits under the General Agreement on Trade in Services;
DECIDE AS FOLLOWS:
1. Negotiations on further liberalization of movement of natural persons for the purpose of supplying services shall continue beyond the conclusion of the Uruguay Round, with a view to allowing the achievement of higher levels of commitments by participants under the General Agreement on Trade in Services.
2. A Negotiating Group on Movement of Natural Persons is established to carry out the negotiations. The group shall establish its own procedures and shall report periodically to the Council on Trade in Services.
3. The negotiating group shall hold its first negotiating session no later than 16 May 1994. It shall conclude these negotiations and produce a final report no later than six months after the entry into force of the Agreement Establishing the World Trade Organization.
4. Commitments resulting from these negotiations shall be inscribed in Members' Schedules of specific commitments.
DECISION ON FINANCIAL SERVICES
MINISTERS,
Noting that commitments scheduled by participants on financial services at the conclusion of the Uruguay Round shall enter into force on an MFN basis at the same time as the Agreement Establishing the World Trade Organization (hereinafter referred to as the ‘WTO Agreement’),
DECIDE AS FOLLOWS:
1. At the conclusion of a period ending no later than six months after the date of entry into force of the WTO Agreement, Members shall be free to improve, modify or withdraw all or part of their commitments in this sector without offering compensation, notwithstanding the provisions of Article XXI of the General Agreement on Trade in Services. At the same time Members shall finalize their positions relating to MFN exemptions in this sector, notwithstanding the provisions of the Annex on Article II Exemptions. From the date of entry into force of the WTO Agreement and until the end of the period referred to above, exemptions listed in the Annex on Article II Exemptions which are conditional upon the level of commitments undertaken by other participants or upon exemptions by other participants will not be applied.
2. The Committee on Trade in Financial Services shall monitor the progress of any negotiations undertaken under the terms of this Decision and shall report thereon to the Council for Trade in Services no later than four months after the date of entry into force of the WTO Agreement.
DECISION ON NEGOTIATIONS ON MARITIME TRANSPORT SERVICES
MINISTERS,
Noting that commitments scheduled by participants on maritime transport services at the conclusion of the Uruguay Round shall enter into force on an MFN basis at the same time as the Agreement Establishing the World Trade Organization (hereinafter referred to as the ‘WTO Agreement’),
DECIDE AS FOLLOWS:
1. Negotiations shall be entered into on a voluntary basis in the sector of maritime transport services within the framework of the General Agreement on Trade in Services. The negotiations shall be comprehensive in scope, aiming at commitments in international shipping, auxiliary services and access to and use of port facilities, leading to the elimination of restrictions within a fixed time scale.
2. A Negotiating Group on Maritime Transport Services (hereinafter referred to as the ‘NGMTS’) is established to carry out this mandate. The NGMTS shall report periodically on the progress of these negotiations.
3. The negotiations in the NGMTS shall be open to all governments and the European Communities which announce their intention to participate. To date, the following have announced their intention to take part in the negotiations:
Argentina, Canada, European Communities and their Member States, Finland, Hong Kong, Iceland, Indonesia, Korea, Malaysia, Mexico, New Zealand, Norway, Philippines, Poland, Romania, Singapore, Sweden, Switzerland, Thailand, Turkey, United States.
Further notifications of intention to participate shall be addressed to the depositary of the WTO Agreement.
4. The NGMTSs shall hold its first negotiating session no later than 16 May 1994. It shall conclude these negotiations and make a final report no later than June 1996. The final report of the NGMTS shall include a date for the implementation of results of these negotiations.
5. Until the conclusion of the negotiations Article II and paragraphs 1 and 2 of the Annex on Article II Exemptions are suspended in their application to this sector, and it is not necessary to list MFN exemptions. At the conclusion of the negotiations, Members shall be free to improve, modify or withdraw any commitments made in this sector during the Uruguay Round without offering compensation, notwithstanding the provisions of Article XXI of the Agreement. At the same time Members shall finalize their positions relating to MFN exemptions in this sector, notwithstanding the provisions of the Annex on Article II Exemptions. Should negotiations not succeed, the Council for Trade in Services shall decide whether to continue the negotiations in accordance with this mandate.
6. Any commitments resulting from the negotiations, including the date of their entry into force, shall be inscribed in the Schedules annexed to the General Agreement on Trade in Services and be subject to all the provisions of the Agreement.
7. Commencing immediately and continuing until the implementation date to be determined under paragraph 4, it is understood that participants shall not apply any measure affecting trade in maritime transport services except in response to measures applied by other countries and with a view to maintaining or improving the freedom of provision of maritime transport services, nor in such a manner as would improve their negotiating position and leverage.
8. The implementation of paragraph 7 shall be subject to surveillance in the NGMTS. Any participant may bring to the attention of the NGMTS any action or omission which it believes to be relevant to the fulfilment of paragraph 7. Such notifications shall be deemed to have been submitted to the NGMTS upon their receipt by the Secretariat.
DECISION ON NEGOTIATIONS ON BASIC TELECOMMUNICATIONS
MINISTERS DECIDE AS FOLLOWS:
1. Negotiations shall be entered into on a voluntary basis with a view to the progressive liberalization of trade in telecommunications transport networks and services (hereinafter referred to as ‘basic telecommunications’) within the framework of the General Agreement on Trade in Services.
2. Without prejudice to their outcome, the negotiations shall be comprehensive in scope, with no basic telecommunications excluded a priori.
3. A Negotiating Group on Basic Telecommunications (hereinafter referred to as the ‘NGBT’) is established to carry out this mandate. The NGBT shall report periodically on the progress of these negotiations.
4. The negotiations in the NGBT shall be open to all governments and the European Communities which announce their intention to participate. To date, the following have announced their intention to take part in the negotiations:
Australia, Austria, Canada, Chile, Cyprus, European Communities and their Member States, Finland, Hong Kong, Hungary, Japan, Korea, Mexico, New Zealand, Norway, Slovak Republic, Sweden, Switzerland, Turkey, United States.
Further notifications of intention to participate shall be addressed to the depositary of the Agreement Establishing the World Trade Organization.
5. The NGBT shall hold its first negotiating session no later than 16 May 1994. It shall conclude these negotiations and make a final report no later than 30 April 1996. The final report of the NGBT shall include a date for the implementation of results of these negotiations.
6. Any commitments resulting from the negotiations, including the date of their entry into force, shall be inscribed in the Schedules annexed to the General Agreement on Trade in Services and shall be subject to all the provisions of the Agreement.
7. Commencing immediately and continuing until the implementation date to be determined under paragraph 5, it is understood that no participant shall apply any measure affecting trade in basic telecommunications in such a manner as would improve its negotiating position and leverage. It is understood that this provision shall not prevent the pursuit of commercial and governmental arrangements regarding the provision of basic telecommunications services.
8. The implementation of paragraph 7 shall be subject to surveillance in the NGBT. Any participant may bring to the attention of the NGBT any action or omission which it believes to be relevant to the fulfilment of paragraph 7. Such notifications shall be deemed to have been submitted to the NGBT upon their receipt by the Secretariat.
DECISION ON PROFESSIONAL SERVICES
Ministers decide to recommend that the Council for Trade in Services at its first meeting adopt the decision set out below.
THE COUNCIL FOR TRADE IN SERVICES,
Recognizing the impact of regulatory measures relating to professional qualifications, technical standards and licensing on the expansion of trade in professional services;
Desiring to establish multilateral disciplines with a view to ensuring that, when specific commitments are undertaken, such regulatory measures do not constitute unnecessary barriers to the supply of professional services;
DECIDES AS FOLLOWS:
1. The work programme foreseen in paragraph 4 of Article VI on Domestic Regulation should be put into effect immediately. To this end, a Working Party on Professional Services shall be established to examine and report, with recommendations, on the disciplines necessary to ensure that measures relating to qualification requirements and procedures, technical standards and licensing requirements in the field of professional services do not constitute unnecessary barriers to trade.
2. As a matter of priority, the Working Party shall make recommendations for the elaboration of multilateral disciplines in the accountancy sector, so as to give operational effect to specific commitments. In making these recommendations, the Working Party shall concentrate on:
developing multilateral disciplines relating to market access so as to ensure that domestic regulatory requirements are: (i) based on objective and transport criteria, such as competence and the ability to supply the service; (ii) not more burdensome than necessary to ensure the quality of the service, thereby facilitating the effective liberalization of accountancy services;
the use of international standards and, in doing so, it shall encourage the cooperation with the relevant international organizations as defined under paragraph 5(b) of Article VI, so as to give full effect to paragraph 5 of Article VII;
facilitating the effective application of paragraph 6 of Article VI of the Agreement by establishing guidelines for the recognition of qualifications.
In elaborating these disciplines, the Working Party shall take account of the importance of the governmental and non-governmental bodies regulating professional services.
DECISION ON THE APPLICATION AND REVIEW OF THE UNDERSTANDING ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES
MINISTERS,
RECALLING the Decision of 22 February 1994 that existing rules and procedures of GATT 1947 in the field of dispute settlement shall remain in effect until the date of entry into force of the Agreement Establishing the World Trade Organization,
INVITE the relevant Councils and Committees to decide that they shall remain in operation for the purpose of dealing with any dispute for which the request for consultation was made before that date;
INVITE the Ministerial Conference to complete a full review of dispute settlement rules and procedures under the World Trade Organization within four years after the entry into force of the Agreement Establishing the World Trade Organization, and to take a decision on the occasion of its first meeting after the completion of the review, whether to continue, modify or terminate such dispute settlement rules and procedures.
UNDERSTANDING ON COMMITMENTS IN FINANCIAL SERVICES
Participants in the Uruguay Round have been enabled to take on specific commitments with respect to financial services under the General Agreement on Trade in Services (hereinafter referred to as the ‘Agreement’) on the basis of an alternative approach to that covered by the provisions of Part III of the Agreement. It was agreed that this approach could be applied subject to the following understanding:
it does not conflict with the provisions of the Agreement;
it does not prejudice the right of any Member to schedule its specific commitments in accordance with the approach under Part III of the Agreement;
resulting specific commitments shall apply on a most-favoured-nation basis;
no presumption has been created as to the degree of liberalization to which a Member is committing itself under the Agreement.
Interested Members, on the basis of negotiations, and subject to conditions and qualifications where specified, have inscribed in their schedule specific commitments conforming to the approach set out below.
A. Standstill
Any conditions, limitations and qualifications to the commitments noted below shall be limited to existing non-conforming measures.
B. Market Access
Monopoly Rights
1. In addition to Article VIII of the Agreement, the following shall apply:
Each Member shall list in its schedule pertaining to financial services existing monopoly rights and shall endeavour to eliminate them or reduce their scope. Notwithstanding subparagraph l(b) of the Annex on Financial Services, this paragraph applies to the activities referred to in subparagraph l(b)(iii) of the Annex.
Financial Services purchased by Public Entities
2. Notwithstanding Article XIII of the Agreement, each Member shall ensure that financial service suppliers of any other Member established in its territory are accorded most-favoured-nation treatment and national treatment as regards the purchase or acquisition of financial services by public entities of the Member in its territory.
Cross-border Trade
3. Each Member shall permit non-resident suppliers of financial services to supply, as a principal, through an intermediary or as an intermediary, and under terms and conditions that accord national treatment, the following services:
insurance of risks relating to:
maritime shipping and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods and any liability arising therefrom; and
goods in international transit;
re-insurance and retrocession and the services auxiliary to insurance as referred to in subparagraph 5(a)(iv) of the Annex;
provision and transfer of financial information and financial data processing as referred to in subparagraph 5(a)(xv) of the Annex and advisory and other auxiliary services, excluding intermediation, relating to banking and other financial services as referred to in subparagraph 5(a)(xvi) of the Annex.
4. Each Member shall permit its residents to purchase in the territory of any other Member the financial services indicated in:
subparagraph 3(a);
subparagraph 3(b); and
subparagraphs 5(a)(v) to (xvi) of the Annex.
Commercial Presence
5. Each Member shall grant financial service suppliers of any other Member the right to establish or expand within its territory, including through the acquisition of existing enterprises, a commercial presence.
6. A Member may impose terms, conditions and procedures for authorization of the establishment and expansion of a commercial presence in so far as they do not circumvent the Member's obligation under paragraph 5 and they are consistent with the other obligations of the Agreement.
New Financial Services
7. A Member shall permit financial service suppliers of any other Member established in its territory to offer in its territory any new financial service.
Transfers of Information and Processing of Information
8. No Member shall take measures that prevent transfers of information or the processing of financial information, including transfers of data by electronic means, or that, subject to importation rules consistent with international agreements, prevent transfers of equipment, where such transfers of information, processing of financial information or transfers of equipment are necessary for the conduct of the ordinary business of a financial service supplier. Nothing in this paragraph restricts the right of a Member to protect personal data, personal privacy and the confidentiality of individual records and accounts so long as such right is not used to circumvent the provisions of the Agreement.
Temporary Entry of Personnel
9.
Each Member shall permit temporary entry into its territory of the following personnel of a financial service supplier of any other Member that is establishing or has established commercial presence in the territory of the Member:
senior managerial personnel possessing proprietary information essential to the establishment, control and operation of the services of the financial service supplier; and
specialists in the operation of the financial service supplier.
Each Member shall permit, subject to the availability of qualified personnel in its territory, temporary entry into its territory of the following personnel associated with a commercial presence of a financial service supplier of any other Member:
specialists in computer services, telecommunication services and accounts of the financial service supplier; and
actuarial and legal specialists.
Non-discriminatory Measures
10. Each Member shall endeavour to remove or to limit any significant adverse effects on financial service suppliers of any other Member of:
non-discriminatory measures that prevent financial service suppliers from offering in the Member's territory, in the form determined by the Member, all the financial services permitted by the Member;
non-discriminatory measures that limit the expansion of the activities of financial service suppliers into the entire territory of the Member;
measures of a Member, when such a Member applies the same measures to the supply of both banking and securities services, and a financial service supplier of any other Member concentrates its activities in the provision of securities services; and
other measures that, although respecting the provisions of the Agreement, affect adversely the ability of financial service suppliers of any other Member to operate, compete or enter the Member's market;
provided that any action taken under this paragraph would not unfairly discriminate against financial service suppliers of the Member taking such action.
11. With respect to the non-discriminatory measures referred to in subparagraphs 10(a) and (b), a Member shall endeavour not to limit or restrict the present degree of market opportunities nor the benefits already enjoyed by financial service suppliers of all other Members as a class in the territory of the Member, provided that this commitment does not result in unfair discrimination against financial service suppliers of the Member applying such measures.
C. National Treatment
1. Under terms and conditions that accord national treatment, each Member shall grant to financial service suppliers of any other Member established in its territory access to payment and clearing systems operated by public entities, and to official funding and re-financing facilities available in the normal course of ordinary business. This paragraph is not intended to confer access to the Member's lender of last resort facilities.
2. When membership or participation in, or access to, any self-regulatory body, securities or futures exchange or market, clearing agency, or any other organization or association, is required by a Member in order for financial service suppliers of any other Member to supply financial services on an equal basis with financial service suppliers of the Member, or when the Member provides directly or indirectly such entities, privileges or advantages in supplying financial services, the Member shall ensure that such entities accord national treatment to financial service suppliers of any other Member resident in the territory of the Member.
D. Definitions
For the purposes of this approach:
1. A non-resident supplier of financial services is a financial service supplier of a Member which supplies a financial service into the territory of another Member from an establishment located in the territory of another Member, regardless of whether such a financial service supplier has or has not a commercial presence in the territory of the Member in which the financial service is supplied.
2. ‘Commercial presence’ means an enterprise within a Member's territory for the supply of financial services and includes wholly- or partly-owned subsidiaries, joint ventures, partnerships, sole proprietorships, franchising operations, branches, agencies, representative offices or other organizations.
3. A new financial service is a service of a financial nature, including services related to existing and new products or the manner in which a product is delivered, that is not supplied by any financial service supplier in the territory of a particular Member but which is supplied in the territory of another Member.
ANNEX 4
AGREEMENT ON GOVERNMENT PROCUREMENT
PARTIES TO THIS AGREEMENT (hereinafter referred to as ‘Parties’),
RECOGNIZING the need for an effective multilateral framework of rights and obligations with respect to laws, regulations, procedures and practices regarding government procurement with a view to achieving greater liberalization and expansion of world trade and improving the international framework for the conduct of world trade;
RECOGNIZING that laws, regulations, procedures and practices regarding government procurement should not be prepared, adopted or applied to foreign or domestic products and services and to foreign or domestic suppliers so as to afford protection to domestic products or services or domestic suppliers and should not discriminate among foreign products or services or among foreign suppliers;
RECOGNIZING that it is desirable to provide transparency of laws, regulations, procedures and practices regarding government procurement;
RECOGNIZING the need to establish international procedures on notification, consultation, surveillance and dispute settlement with a view to ensuring a fair, prompt and effective enforcement of the international provisions on government procurement and to maintain the balance of rights and obligations at the highest possible level;
RECOGNIZING the need to take into account the development, financial and trade needs of developing countries, in particular the least-developed countries;
DESIRING, in accordance with paragraph 6(b) of Article IX of the Agreement on Government Procurement done on 12 April 1979, as amended on 2 February 1987, to broaden and improve the Agreement on the basis of mutual reciprocity and to expand the coverage of the Agreement to include service contracts;
DESIRING to encourage acceptance of and accession to this Agreement by governments not party to it;
HAVING UNDERTAKEN further negotiations in pursuance of these objectives;
HEREBY AGREE AS FOLLOWS:
Article I
Scope and Coverage
Article II
Valuation of Contracts
If an individual requirement for a procurement results in the award of more than one contract, or in contracts being awarded in separate parts, the basis for valuation shall be either:
the actual value of similar recurring contracts concluded over the previous fiscal year or 12 months adjusted, where possible, for anticipated changes in quantity and value over the subsequent 12 months; or
the estimated value of recurring contracts in the fiscal year or 12 months subsequent to the initial contract.
In cases of contracts for the lease, rental or hire purchase of products or services, or in the case of contracts which do not specify a total price, the basis for valuation shall be:
in the case of fixed-term contracts, where their term is 12 months or less, the total contract value for their duration, or, where their term exceeds 12 months, their total value including the estimated residual value;
in the case of contracts for an indefinite period, the monthly instalment multiplied by 48.
If there is any doubt, the second basis for valuation, namely (b), is to be used.
Article III
National Treatment and Non-discrimination
With respect to all laws, regulations, procedures and practices regarding government procurement covered by this Agreement, each Party shall provide immediately and unconditionally to the products, services and suppliers of other Parties offering products or services of the Parties, treatment no less favourable than:
that accorded to domestic products, services and suppliers; and
that accorded to products, services and suppliers of any other Party.
With respect to all laws, regulations, procedures and practices regarding government procurement covered by this Agreement, each Party shall ensure:
that its entities shall not treat a locally-established supplier less favourably than another locally-established supplier on the basis of degree of foreign affiliation or ownership; and
that its entities shall not discriminate against locally-established suppliers on the basis of the country of production of the good or service being supplied, provided that the country of production is a Party to the Agreement in accordance with the provisions of Article IV.
Article IV
Rules of Origin
Article V
Special and Differential Treatment for Developing Countries
Objectives
Parties shall, in the implementation and administration of this Agreement, through the provisions set out in this Article, duly take into account the development, financial and trade needs of developing countries, in particular least-developed countries, in their need to:
safeguard their balance-of-payments position and ensure a level of reserves adequate for the implementation of programmes of economic development;
promote the establishment or development of domestic industries including the development of small-scale and cottage industries in rural or backward areas; and economic development of other sectors of the economy;
support industrial units so long as they are wholly or substantially dependent on government procurement; and
encourage their economic development through regional or global arrangements among developing countries presented to the Ministerial Conference of the World Trade Organization (hereinafter referred to as the ‘WTO’) and not disapproved by it.
Coverage
Agreed Exclusions
Technical Assistance for Developing Country Parties
This assistance, which shall be provided on the basis of non-discrimination among developing country Parties, shall relate inter alia to:
Information Centres
Special Treatment for Least-Developed Countries
Review
Article VI
Technical Specifications
Technical specifications prescribed by procuring entities shall, where appropriate:
be in terms of performance rather than design or descriptive characteristics; and
Article VII
Tendering Procedures
For the purposes of this Agreement:
Open tendering procedures are those procedures under which all interested suppliers may submit a tender.
Selective tendering procedures are those procedures under which, consistent with paragraph 3 of Article X and other relevant provisions of this Agreement, those suppliers invited to do so by the entity may submit a tender.
Limited tendering procedures are those procedures where the entity contacts suppliers individually, only under the conditions specified in Article XV.
Article VIII
Qualification of Suppliers
In the process of qualifying suppliers, entities shall not discriminate among suppliers of other Parties or between domestic suppliers and suppliers of other Parties. Qualification procedures shall be consistent with the following:
any conditions for participation in tendering procedures shall be published in adequate time to enable interested suppliers to initiate and, to the extent that it is compatible with efficient operation of the procurement process, complete the qualification procedures;
any conditions for participation in tendering procedures shall be limited to those which are essential to ensure the firm's capability to fulfil the contract in question. Any conditions for participation required from suppliers, including financial guarantees, technical qualifications and information necessary for establishing the financial, commercial and technical capacity of suppliers, as well as the verification of qualifications, shall be no less favourable to suppliers of other Parties than to domestic suppliers and shall not discriminate among suppliers of other Parties. The financial, commercial and technical capacity of a supplier shall be judged on the basis both of that supplier's global business activity as well as of its activity in the territory of the procuring entity, taking due account of the legal relationship between the supply organizations;
the process of, and the time required for, qualifying suppliers shall not be used in order to keep suppliers of other Parties off a suppliers' list or from being considered for a particular intended procurement. Entities shall recognize as qualified suppliers such domestic suppliers or suppliers of other Parties who meet the conditions for participation in a particular intended procurement. Suppliers requesting to participate in a particular intended procurement who may not yet be qualified shall also be considered, provided there is sufficient time to complete the qualification procedure;
entities maintaining permanent lists of qualified suppliers shall ensure that suppliers may apply for qualification at any time; and that all qualified suppliers so requesting are included in the lists within a reasonably short time;
if, after publication of the notice under paragraph 1 of Article IX, a supplier not yet qualified requests to participate in an intended procurement, the entity shall promptly start procedures for qualification;
any supplier having requested to become a qualified supplier shall be advised by the entities concerned of the decision in this regard. Qualified suppliers included on permanent lists by entities shall also be notified of the termination of any such lists or of their removal from them;
each Party shall ensure that:
each entity and its constituent parts follow a single qualification procedure, except in cases of duly substantiated need for a different procedure; and
efforts be made to minimize differences in qualification procedures between entities.
nothing in subparagraphs (a) through (g) shall preclude the exclusion of any supplier on grounds such as bankruptcy or false declarations, provided that such an action is consistent with the national treatment and non-discrimination provisions of this Agreement.
Article IX
Invitation to Participate Regarding Intended Procurement
Each notice of proposed procurement, referred to in paragraph 2, shall contain the following information:
the nature and quantity, including any options for further procurement and, if possible, an estimate of the timing when such options may be exercised; in the case of recurring contracts the nature and quantity and, if possible, an estimate of the timing of the subsequent tender notices for the products or services to be procured;
whether the procedure is open or selective or will involve negotiation;
any date for starting delivery or completion of delivery of goods or services;
the address and final date for submitting an application to be invited to tender or for qualifying for the suppliers' lists, or for receiving tenders, as well as the language or languages in which they must be submitted;
the address of the entity awarding the contract and providing any information necessary for obtaining specifications and other documents;
any economic and technical requirements, financial guarantees and information required from suppliers;
the amount and terms of payment of any sum payable for the tender documentation; and
whether the entity is- inviting offers for purchase, lease, rental or hire purchase, or more than one of these methods.
Each notice of planned procurement referred to in paragraph 3 shall contain as much of the information referred to in paragraph 6 as is available. It shall in any case include the information referred to in paragraph 8 and;
a statement that interested suppliers should express their interest in the procurement to the entity;
a contact point with the entity from which further information may be obtained.
For each case of intended procurement, the entity shall publish a summary notice in one of the official languages of the WTO. The notice shall contain at least the following information:
the subject matter of the contract;
the time-limits set for the submission of tenders or an application to be invited to tender; and
the addresses from wihich documents relating to the contracts may be requested.
In the case of selective tendering procedures, entities maintaining permanent lists of qualified suppliers shall publish annually in one of the publications listed in Appendix III a notice of the following:
the enumeration of the lists maintained, including their headings, in relation to the products or services or categories of products or services to be procured through the lists;
the conditions to be fulfilled by suppliers with a view to their inscpription on those lists and the methods according to which each of those conditions will be verified by the entity concerned; and
the period of validity of the lists, and the formalities for their renewal.
When such a notice is used as an invitation to participate in accordance with paragraph 3, the notice shall, in addition, include the following information:
the nature of the products or services concerned;
a statement that the notice constitutes an invitation to participate.
However, when the duration of the qualification system is three years or less, and if the duration of the system is made clear in the notice and it is also made clear that further notices will not be published, it shall be sufficient to publish the notice once only, at the beginning of the system. Such a system shall not be used in a manner which circumvents the provisions of this Agreement.
Article X
Selection Procedures
Article XI
Time-limits for Tendering and Delivery
General
Any prescribed time-limit shall be adequate to allow suppliers of other Parties as well as domestic suppliers to prepare and submit tenders before the closing of the tendering procedures. In determining any such time-limit, entities shall, consistent with their own reasonable needs, take into account such factors as the complexity of the intended procurement, the extent of sub-contracting anticipated and the normal time for transmitting tenders by mail from foreign as well as domestic points.
Each Party shall ensure that its entities shall take due account of publication delays when setting the final date for receipt of tenders or of applications to be invited to tender.
Deadlines
Except in so far as provided in paragraph 3,
in open procedures, the period for the receipt of tenders shall not be less than 40 days from the date of publication referred to in paragraph 1 of Article IX;
in selective procedures not involving the use of a permanent list of qualified suppliers, the period for submitting an application to be invited to tender shall not be less than 25 days from the date of publication referred to in paragraph 1 of Article IX; the period for receipt of tenders shall in no case be less than 40 days from the date of issuance of the invitation to tender;
in selective procedures involving the use of a permanent list of qualified suppliers, the period for receipt of tenders shall not be less than 40 days from the date of the initial issuance of invitations to tender, whether or not the date of initial issuance of invitations to tender coincides with the date of the publication referred to in paragraph 1 of Article IX.
The periods referred to in paragraph 2 may be reduced in the circumstances set out below:
if a separate notice has been published 40 days and not more than 12 months in advance and the notice contains at least:
as much of the information referred to in paragraph 6 of Article IX as is available;
the information referred to in paragraph 8 of Article IX;
a statement that interested suppliers should express their interest in the procurement to the entity; and
a contact point with the entity from which further information may be obtained,
the 40-day limit for receipt of tenders may be replaced by a period sufficiently long to enable responsive tendering, which, as a general rule, shall not be less than 24 days, but in any case not less than 10 days;
in the case of the second or subsequent publications dealing with contracts of a recurring nature within the meaning of paragraph 6 of Article IX, the 40-day limit for receipt of tenders may be reduced to not less than 24 days;
where a state of urgency duly substantiated by the entity renders impracticable the periods in question, the periods specified in paragraph 2 may be reduced but shall in no case be less than 10 days from the date of the publication referred to in paragraph 1 of Article IX; or
the period referred to in paragraph 2 (c) may, for procurements by entities listed in Annexes 2 and 3, be fixed by mutual agreement between the entity and the selected suppliers. In the absence of agreement, the entity may fix periods which shall be sufficiently long to enable responsive tendering and shall in any case not be less than 10 days.
Article XII
Tender Documentation
Tender documentation provided to suppliers shall contain all information necessary to permit them to submit responsive tenders, including information required to be published in the notice of intended procurement, except for paragraph 6 (g) of Article IX, and the following:
the address of the entity to which tenders should be sent;
the address where requests for supplementary information should be sent;
the language or languages in which tenders and tendering documents must be submitted;
the closing date and time for receipt of tenders and the length of time during which any tender should be open for acceptance;
the persons authorized to be present at the opening of tenders and the date, time and place of this opening;
any economic and technical requirement, financial guarantees and information or documents required from suppliers;
a complete description of the products or services required or of any requirements including technical specifications, conformity certification to be fulfilled, necessary plans, drawings and instructional materials;
the criteria for awarding the contract, including any factors other than price that are to be considered in the evaluation of tenders and the cost elements to be included in evaluating tender prices, such as transport, insurance and inspection costs, and in the case of products or services of other Parties, customs duties and other import charges, taxes and currency of payment;
the terms of payment;
any other terms or conditions;
in accordance with Article XVII the terms and conditions, if any, under which tenders from coutries not Parties to this Agreement, but which apply the procedures of that Article, will be entertained.
Forwarding of Tender Documentation by the Entities
In open procedures, entities shall forward the tender documentation at the request of any supplier participating in the procedure, and shall reply promptly to any reasonable request for explanations relating thereto.
In selective procedures, entities shall forward the tender documentation at the request of any supplier requesting to participate, and shall reply promptly to any reasonable request for explanations relating thereto.
Entities shall reply promptly to any reasonable request for relevant information submitted by a supplier participating in the tendering procedure, on condition that such information does not give that supplier an advantage over its competitors in the procedure for the award of the contract.
Article XIII
Submission, Receipt and Opening of Tenders and Awarding of Contracts
The submission, receipt and opening of tenders and awarding of contracts shall be consistent with the following:
tenders shall normally be submitted in writing directly or by mail. If tenders by telex, telegram or facsimile are permitted, the tender made thereby must include all the information necessary for the evaluation of the tender, in particular the definitive price proposed by the tenderer and a statement that the tenderer agrees to all the terms, conditions and provisions of the invitation to tender. The tender must be confirmed promptly by letter or by the despatch of a signed copy of the telex, telegram or facsimile. Tenders presented by telephone shall not be permitted. The content of the telex, telegram or facsimile shall prevail where there is a difference or conflict between that content and any documentation received after the time-limit; and
the opportunities that may be given to tenderers to correct unintentional errors of form between the opening of tenders and the awarding of the contract shall not be permitted to give rise to any discriminatory practice.
Receipt of Tenders
Opening of Tenders
Award of Contracts
To be considered for award, a tender must, at the time of opening, conform to the essential requirements of the notices or tender documentation and be from a supplier which complies with the conditions for participation. If an entity has received a tender abnormally lower than other tenders submitted, it may enquire with the tenderer to ensure that it can comply with the conditions of participation and be capable of fulfilling the terms of the contract.
Unless in the public interest an entity decides not to issue the contract, the entity shall make the award to the tenderer who has been determined to be fully capable of undertaking the contract and whose tender, wether for domestic products or services, or products or services of other Parties, is either the lowest tender or the tender which in terms of the specific evaluation criteria set forth in the notices or tender documentation is determined to be the most advantageous.
Awards shall be made in accordance with the criteria and essential requirements specified in the tender documentation.
Option Clauses
Article XIV
Negotiation
A Party may provide for entities to conduct negotiations:
in the context of procurements in which they have indicated such intent, namely in the notice referred to in paragraph 2 of Article IX (the invitation to suppliers to participate in the procedure for the proposed procurement); or
when it appears from evaluation that no one tender is obviously the most advantageous in terms of the specific evaluation criteria set forth in the notices or tender documentation.
Entities shall not, in the course of negotiations, discriminate between different suppliers. In particular, they shall ensure that:
any elimination of participants is carried out in accordance with the criteria set forth in the notices and tender documentation;
all modifications to the criteria and to the technical requirements are transmitted in writing to all remaining participants in the negotiations;
all remaining participants are afforded an opportunity to submit new or amended submissions on the basis of the revised requirements; and
when negotiations are concluded, all participants remaining in the negotiations shall be permitted to submit final tenders in accordance with a common deadline.
Article XV
Limited Tendering
The provisions of Articles VII through XIV governing open and selective tendering procedures need not apply in the following conditions, provided that limited tendering is not used with a view to avoiding maximum possible competition or in a manner which would constitute a means of discrimination among suppliers of other Parties or protection to domestic producers or suppliers:
in the absence of tenders in response to an open or selective tender, or when the tenders submitted have been collusive, or not in conformity with the essential requirements in the tender, or from suppliers who do not comply with the conditions for participation provided for in accordance with this Agreement, on condition, however, that the requirements of the initial tender are not substantially modified in the contract as awarded;
when, for works of art or for reasons connected with protection of exclusive rights, such as patents or copyrights, or in the absence of competition for technical reasons, the products or services can be supplied only by a particular supplier and no reasonable alternative or substitute exists;
in so far as is strictly necessary when, for reasons of extreme urgency brought about by events unforeseeable by the entity, the products or services could not be obtained in time by means of open or selective tendering procedures;
for additional deliveries by the original supplier which are intended either as parts replacement for existing supplies, or installations, or as the extension of existing supplies, services, or installations where a change of supplier would compel the entity to procure equipment or services not meeting requirements of interchangeability with already existing equipment or services ( 215 );
when an entity procures prototypes or a first product or service which are developed at its request in the course of, and for, a particular contract for research, experiment, study or original development. When such contracts have been fulfilled, subsequent procurements of products or services shall be subject to Articles VII through XIV ( 216 );
when additional construction services which were not included in the initial contract but which were within the objectives of the original tender documentation have, through unforeseeable circumstances, become necessary to complete the construction services described therein, and the entity need to award contracts for the additional construction services to the contractor carrying out the construction services concerned since the separation of the additional construction services from the initial contract would be difficult for technical or economic reasons and cause significant inconvenience to the entity. However, the total value of contracts awarded for the additional construction services may not exceed 50 per cent of the amount of the main contract;
for new construction services consisting of the repetition of similar construction services which conform to a basic project for which an initial contract was awarded in accordance with Articles VII through XIV and for which the entity has indicated in the notice of intended procurement concerning the initial construction service, that limited tendering procedures might be used in awarding contracts for such new construction services;
for products purchased on a commodity market;
for purchases made under exceptionally advantageous conditions which only arise in the very short term. This provision is intended to cover unusual disposals by firms which are not normally suppliers, or disposal of assets of businesses in liquidation or receivership. It is not intended to cover routine purchases from regular suppliers;
in the case of contracts awarded to the winner of a design contest provided that the contest has been organized in a manner which is consistent with the principles of this Agreement, notably as regards the publication, in the sense of Article IX, of an invitation to suitably qualified suppliers, to participate in such a contest which shall be judged by an independent jury with a view to design contracts being awarded to the winners.
Article XVI
Offsets
Article XVII
Transparency
Each Party shall encourage entities to indicate the terms and conditions, including any deviations from competitive tendering procedures or access to challenge procedures, under which tenders will be entertained from suppliers situated in countries not Parties to this Agreement but which, with a view to creating transparency in their own contract awards, nevertheless:
specify their contracts in accordance with Article VI (technical specifications);
publish the procurement notices referred to in Article IX, including, in the version of the notice referred to in paragraph 8 of Article IX (summary of the notice of intended procurement) which is published in an official language of the WTO, an indication of the terms and conditions under which tenders shall be entertained from suppliers situated in countries Parties to this Agreement;
are willing to ensure that their procurement regulations shall not normally change during a procurement and, in the event that such change proves unavoidable, to ensure the availability of a satisfactory means of redress.
Article XVIII
Information and Review as Regards Obligations of Entities
Entities shall publish a notice in the appropriate publication listed in Appendix II not later than 72 days after the award of each contract under Articles XIII through XV. These notices shall contain:
the nature and quantity of products or services in the contract award;
the name and address of the entity awarding the contract;
the date of award;
the name and address of winning tenderer;
the value of the winning award or the highest and lowest offer taken into account in the award of the contract;
where appropriate, means of identifying the notice issued under paragraph 1 of Article IX or justification according to Article XV for the use of such procedure; and
the type of procedure used.
Each entity shall, on request from a supplier of a Party, promptly provide:
an explanation of its procurement practices and procedures;
pertinent information concerning the reasons why the supplier's application to qualify was rejected, why its existing qualification was brought to an end and why it was not selected; and
to an unsuccessful tenderer, pertinent information concerning the reasons why its tender was not selected and on the characteristics and relative advantages of the tender selected as well as the name of the winning tenderer.
Article XIX
Information and Review as Regards Obligations of Parties
Each Party shall collect and provide to the Committee on an annual basis statistics on its procurements covered by this Agreement. Such reports shall contain the following information with respect to contracts awarded by all procurement entities covered under this Agreement:
for entities in Annex 1, statistics on the estimated value of contracts awarded, both above and below the threshold value, on a global basis and broken down by entities; for entities in Annexes 2 and 3, statistics on the estimated value of contracts awarded above the threshold value on a global basis and broken down by categories of entities;
for entities in Annex 1, statistics on the number and total value of contracts awarded above the threshold value, broken down by entities and categories of products and services according to uniform classification systems; for entities in Annexes 2 and 3, statistics on the estimated value of contracts awarded above the threshold value broken down by categories of entities and categories of products and services;
for entities in Annex 1, statistics, broken down by entity and by categories of products and services, on the number and total value of contracts awarded under each of the cases of Article XV; for categories of entities in Annexes 2 and 3, statistics on the total value of contracts awarded above the threshold value under each of the cases of Article XV; and
for entities in Annex 1, statistics, broken down by entities, on the number and total value of contracts awarded under derogations to the Agreement contained in the relevant Annexes; for categories of entities in Annexes 2 and 3, statistics on the total value of contracts awarded under derogations to the Agreement contained in the relevant Annexes.
To the extent that such information is available, each Party shall provide statistics on the country of origin of products and services purchased by its entities. With a view to ensuring that such statistics are comparable, the Committee shall provide guidance on methods to be used. With a view to ensuring effective monitoring of procurement covered by this Agreement, the Committee may decide unanimously to modify the requirements of subparagraphs (a) through (d) as regards the nature and the extent of statistical information to be provided and the breakdowns and classifications to be used.
Article XX
Challenge Procedures
Consultations
Challenge
Challenges shall be heard by a court or by an impartial and independent review body with no interest in the outcome of the procurement and the members of which are secure from external influence during the term of appointment. A review body which is not a court shall either be subject to judicial review or shall have procedures which provide that:
participants can be heard before an opinion is given or a decision is reached;
participants can be represented and accompanied;
participants shall have access to all proceedings;
preceedings can take place in public;
opinions or decisions are given in writing with a statement describing the basis for the opinions or decisions;
witnesses can be presented;
documents are disclosed to the review body.
Challenge procedures shall provide for:
rapid interim measures to correct breaches of the Agreement and to preserve commercial opportunities. Such action may result in suspension of the procurement process. However, procedures may provide that overriding adverse consequences for the interests concerned, including the public interest, may be taken into account in deciding whether such measures should be applied. In such circumstances, just cause for not acting shall be provided in writing;
an assessment and a possbility for a decision on the justification of the challenge;
correction of the breach of the Agreement or compensation for the loss or damages suffered, which may be limited to costs for tender preparation or protest.
Article XXI
Institutions
Article XXII
Consultations and Dispute Settlement
Panels shall have the following terms of reference unless the parties to the dispute agree otherwise within 20 days of the establishment of the panel:
‘To examine, in the light of the relevant provisions of this Agreement and of (name of any other covered Agreement cited by the parties to the dispute), the matter referred to the DSB by (name of party) in document ... and to make such findings as will assist the DSB in making the recommendations or in giving the rulings provided for in this Agreement.’
In the case of a dispute in which provisions both of this Agreement and of one or more other Agreements listed in Appendix 1 of the Dispute Settlement Understanding are invoked by one of the parties to the dispute, paragraph 3 shall apply only to those parts of the panel report concerning the interpretation and application of this Agreement.
Article XXIII
Exceptions to the Agreement
Article XXIV
Final Provisions
1. Acceptance and Entry into Force
This Agreement shall enter into force on 1 January 1996 for those governments ( 218 ) whose agreed coverage is contained in Annexes 1 through 5 of Appendix I of this Agreement and which have, by signature, accepted the Agreement on 15 April 1994 or have, by that date, signed the Agreement subject to ratification and subsequently ratified the Agreement before 1 January 1996.
2. Accession
Any government which is a Member of the WTO, or prior to the date of entry into force of the WTO Agreement which is a contracting party to GATT 1947, and which is not a Party to this Agreement may accede to this Agreement on terms to be agreed between that government and the Parties. Accession shall take place by deposit with the Director-General of the WTO of an instrument of accession which states the terms so agreed. The Agreement shall enter into force for an acceding government on the 30th day following the date of its accession to the Agreement.
3. Transitional Arrangements
Hong Kong and Korea may delay application of the provisions of this Agreement, except Articles XXI and XXII, to a date not later than 1 January 1997. The commencement date of their application of the provisions, if prior to 1 January 1997, shall be notified to the Director-General of the WTO 30 days in advance.
During the period between the date of entry into force of this Agreement and the date of its application by Hong Kong, the rights and obligations between Hong Kong and all other Parties in this Agreement which were on 15 April 1994 Parties to the Agreement on Government Procurement done at Geneva on 12 April 1979 as amended on 12 February 1987 (the ‘1988 Agreement’) shall be governed by the substantive ( 219 ) provisions of the 1988 Agreement, including its Annexes as modified or rectified, which provisions are incorporated herein by reference for that purpose and shall remain in force until 31 December 1996.
Between Parties to this Agreement which are also Parties to the 1988 Agreement, the rights and obligations of this Agreement shall supersede those under the 1988 Agreement.
Article XXII shall not enter into force until the date of entry into force of the WTO Agreement. Until such time, the provisions of Article VII of the 1988 Agreement shall apply to consultations and dispute settlement under this Agreement, which provisions are hereby incorporated in the Agreement by reference for that purpose. These provisions shall be applied under the auspices of the Committee under this Agreement.
Prior to the date of entry into force of the WTO Agreement, references to WTO bodies shall be construed as referring to the corresponding GATT body and references to the Director-General of the WTO and to the WTO Secretariat shall be construed as references to, respectively, the Director-General to the CONTRACTING PARTIES to GATT 1947 and to the GATT Secretariat.
4. Reservations
Reservations may not be entered in respect of any of the provisions of this Agreement.
5. National Legislation
Each government accepting or acceding to this Agreement shall ensure, not later than the date of entry into force of this Agreement for it, the conformity of its laws, regulations and administrative procedures, and the rules, procedures and practices applied by the entities contained in its lists annexed hereto, with the provisions of this Agreement.
Each Party shall inform the Committee of any changes in its laws and regulations relevant to this Agreement and in the administration of such laws and regulations.
6. Rectifications or Modifications
Rectifications, transfers of an entity from one Annex to another or, in exceptional cases, other modifications relating to Appendices I through IV shall be notified to the Committee, along with information as to the likely consequences of the change for the mutually agreed coverage provided in this Agreement. If the rectifications, transfers or other modifications are of a purely formal or minor nature, they shall become effective provided there is no objection within 30 days. In other cases, the Chairman of the Committee shall promptly convene a meeting of the Committee. The Committee shall consider the proposal and any claim for compensatory adjustments, with a view to maintaining a balance of rights and obligations and a comparable level of mutually agreed coverage provided in this Agreement prior to such notification. In the event of agreement not being reached, the matter may by pursued in accordance with the provisions contained in Article XXII.
Where a Party wishes, in exercise of its rights, to withdraw an entity from Appendix I on the grounds that government control or influence over it has been effectively eliminated that Party shall notify the Committee. Such modification shall become effective the day after the end of the following meeting of the Committee, provided that the meeting is no sooner than 30 days from the date of notification and no objection has. been made. In the event of an objection, the matter may be pursued in accordance with the procedures on consultations and dispute settlement contained in Article XXII. In considering the proposed modification to Appendix I and any consequential compensatory adjustment, allowance shall be made for the market-opening effects of the removal of government control or influence.
7. Reviews, Negotiations and Future Work
The Committee shall review annually the implementation and operation of this Agreement taking into account the objectives thereof. The Committee shall annually inform the General Council of the WTO of developments during the periods covered by such reviews.
Not later than the end of the third year from the date of entry into force of this Agreement and periodically thereafter, the Parties thereto shall undertake further negotiations, with a view to improving this Agreement and achieving the greatest possible extension of its coverage among all Parties on the basis of mutual reciprocity, having regard to the provisions of Article V relating to developing countries.
Parties shall seek to avoid introducing or prolonging discriminatory measures and practices which distort open procurement and shall, in the context of negotiations under subparagraph (b), seek to eliminate those which remain on the date of entry into force of this Agreement.
8. Information Technology
With a view to ensuring that the Agreement does not constitute an unnecessary obstacle to technical progress, Parties shall consult regularly in the Committee regarding developments in the use of information technology in government procurement and shall, if necessary, negotiate modifications to the Agreement. These consultations shall in particular aim to ensure that the use of information technology promotes the aims of open, non-discriminatory and efficient government procurement through transparent procedures, that contracts covered under the Agreement are clearly identified and that all available information relating to a particular contract can be identified. When a Party intends to innovate, it shall endeavour to take into account the views expressed by other Parties regarding any potential problems.
9. Amendments
Parties may amend this Agreement having regard inter alia to the experience gained in its implementation. Such an amendment, once the Parties have concurred in accordance with the procedures established by the Committee, shall not enter into force for any Party until it has been accepted by such Party.
10. Withdrawal
Any Party may withdraw from this Agreement. The withdrawal shall take effect upon the expiration of 60 days from the date on which written notice of withdrawal is received by the Director-General of the WTO. Any Party may upon such notification request an immediate meeting of the Committee.
If a Party to this Agreement does not become a Member of the WTO within one year of the date of entry into force of the WTO Agreement or ceases to be a Member of the WTO, it shall cease to be a Party to this Agreement with effect from the same date.
11. Non-application of this Agreement between Particular Parties
This Agreement shall not apply as between any two Parties if either of the Parties, at the time either accepts or accedes to this Agreement, does not consent to such application.
12. Notes, Appendices and Annexes
The Notes, Appendices and Annexes to this Agreement constitute an integral part thereof.
13. Secretariat
This Agreement shall be serviced by the WTO Secretariat.
14. Deposit
This Agreement shall be deposited with the Director-General of the WTO, who shall promptly furnish to each Party a certified true copy of this Agreement, of each rectification or modification thereto pursuant to paragraph 6 and of each amendment thereto pursuant to paragraph 9, and a notification of each acceptance thereof or accession thereto pursuant to paragraphs 1 and 2 and of each withdrawal therefrom pursuant to paragraph 10 of this Article.
15. Registration
This Agreement shall be registered in accordance with the provisions of Article 102 of the Charter of the United Nations.
Done at Marrakesh this fifteenth day of April one thousand nine hundred and ninety-four in a single copy, in the English, French and Spanish languages, each text being authentic, except as otherwise specified with respect to the Appendices hereto.
NOTES
The Terms ‘country’ or ‘countries’ as used in this Agreement, including the Appendices, are to be understood to include any separate customs territory Party to this Agreement.
In the case of a separate customs territory Party to this Agreement, where an expression in this Agreement is qualified by the term ‘national’, such expression shall be read as pertaining to that customs territory, unless otherwise specified.
Article 1, paragraph 1
Having regard to general policy considerations relating to tied aid, including the objective of developing countries with respect to the untying of such aid, this Agreement does not apply to procurement made in furtherance of tied aid to developing countries so long as it is practised by Parties.
INTERNATIONAL DAIRY ARRANGEMENT
PREAMBLE
Recognizing the importance of milk and dairy products to the economy of many countries ( 220 ) in terms of production, trade and consumption;
Recognizing the need, in the mutual interests of producers and consumers, and of exporters and importers, to avoid surpluses and shortages, and to maintain prices at an equitable level;
Noting the diversity and interdependence of dairy products;
Noting the situation in the dairy products market, which is characterized by very wide fluctuations and the proliferation of export and import measures;
Considering that improved cooperation in the dairy products sector contributes to the attainment of the objectives of expansion and liberalization of world trade, and the implementation of the principles and objectives concerning developing countries agreed upon in the Tokyo Declaration of Ministers dated 14 September 1973 concerning the Multilateral Trade Negotiations;
Determined to respect the principles and objectives of the General Agreement on Tariffs and Trade (hereinafter referred to as ‘General Agreement’ or ‘GATT’) ( 221 ) and, in carrying out the aims of this Arrangement, effectively to implement the principles and objectives agreed upon in the said Tokyo Declaration;
The participants to the present Arrangement have, through their representatives, agreed as follows:
PART ONE
GENERAL PROVISIONS
Article I
Objectives
The objectives of this Arrangement shall be, in accordance with the principles and objectives agreed upon in the Tokyo Declaration of Ministers dated 14 September 1973 concerning the Multilateral Trade Negotiations,
Article II
Products Coverage
This Arrangement applies to the dairy products sector. For the purpose of this Arrangement, the term ‘dairy products’ is deemed to include the following products, as defined in the Customs Cooperation Council Nomenclature:
CCCN |
|
(a) Milk and cream, fresh, not concentrated or sweetened |
04.01 |
(b) Milk and cream, preserved, concentrated or sweetened |
04.02 |
(c) Butter |
04.03 |
(d) Cheese and curd |
04.04 |
(e) Casein |
ex 35.01 |
Article III
Information
The information that the participants undertake to provide pursuant to paragraph 1 of this Article, according to the modalities that the Council shall establish, shall include data on past performance, current situation and outlook regarding production, consumption, prices, stocks and trade, including transactions other than normal commercial transactions, in respect of the products referred to in Article II of this Arrangement, and any other information deemed necessary by the Council. Participants shall also provide information on their domestic policies and trade measures, and on their bilateral, plurilateral or multilateral commitments, in the dairy sector and shall make known, as early as possible, any changes in such policies and measures that are likely to affect international trade in dairy products. The provisions of this paragraph shall not require any participant to disclose confidential information which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of particular enterprises, public or private.
Note: It is understood that under the provisions of this Article, the Council instructs the secretariat to draw up, and keep up to date, an inventory of all measures affecting trade in dairy products, including commitments resulting from bilateral, plurilateral and multilateral negotiations.
Article IV
Functions of the International Dairy Products Council and Cooperation between the Participants to this Arrangement
The Council shall meet in order to:
make an evaluation of the situation in and outlook for the world market for dairy products, on the basis of a status report prepared by the secretariat with the documentation furnished by participants in accordance with Article III of this Arrangement, information arising from the operation of the Protocols covered by Article VI of this Arrangement, and any other information available to it;
review the functioning of this Arrangement.
Article V
Food Aid and Transactions other than Normal Commercial Transactions
The participants agree:
In cooperation with FAO and other interested organizations, to foster recognition of the value of dairy products in improving nutritional levels and of ways and means through which they may be made available for the benefit of developing countries.
In accordance with the objectives of this Arrangement, to furnish, within the limits of their possibilities, dairy products to developing countries by way of food aid. Participants should notify the Council in advance each year, as far as practicable, of the scale, quantities and destinations of their proposed contributions of such food aid. Participants should also give, if possible, prior notification to the Council of any proposed amendments to the notified programme. It would be understood that contributions could be made bilaterally or through joint projects or through multilateral programmes, particularly the World Food Programme.
Recognizing the desirability of harmonizing their efforts in this field, as well as the need to avoid harmful interference with normal patterns of production, consumption and international trade, to exchange views in the Council on their arrangements for the supply and requirements of dairy products as food aid or on concessional terms.
PART TWO
SPECIFIC PROVISIONS
Article VI
Protocols
Without prejudice to the provisions of Articles I to V of this Arrangement, the products listed below shall be subject to the provisions of the Protocols annexed to this Arrangement:
PART THREE
Article VII
Administration of the Arrangement
1. International Dairy Products Council
(a) An International Dairy Products Council shall be established within the framework of the GATT. The Council shall comprise representatives of all participants to the Arrangement and shall carry out all the functions which are necessary to implement the provisions of the Arrangement. The Council shall be serviced by the GATT secretariat. The Council shall establish its own rules of procedure.
(b)
The Council shall normally meet at least twice each year. However, the Chairman may call a special meeting of the Council either on his own initiative, at the request of the Committees established under paragraph 2 (a) of this Article, or at the request of a participant to this Arrangement.
(c)
The Council shall reach its decisions by consensus. The Council shall be deemed to have decided on a matter submitted for its consideration if no member of the Council formally objects to the acceptance of a proposal.
(d)
The Council shall make whatever arrangements are appropriate for consultation or cooperation with inter-governmental and non-governmental organizations.
(e)
The Council may invite any non-participating country to be represented at any meeting as an observer.
The Council may also invite any of the organizations referred to in paragraph 1 (d) of this Article to attend any meeting as an observer.
2. Committees
(a) The Council shall establish a Committee to carry out all the functions which are necessary to implement the provisions of the Protocol Regarding Certain Milk Powders, a Committee to carry out all the functions which are necessary to implement the provisions of the Protocol Regarding Milk Fat and a Committee to carry out all the functions which are necessary to implement the provisions of the Protocol Regarding Certain Cheeses. Each of these Committees shall comprise representatives of all participants to the relevant Protocol. The Committees shall be serviced by the GATT secretariat. They shall report to the Council on the exercise of their functions.
(b)
The Council shall make the necessary arrangements, determining the modalities for the information to be furnished under Article III of this Arrangement, so that
(c)
Each Committee shall normally meet at least once each quarter. However, the Chairman of each Committee may call a special meeting of the Committee on his own initiative or at the request of any participant.
(d)
Each Committee shall reach its decisions by consensus. A committee shall be deemed to have decided on a matter submitted for its consideration if no member of the Committee formally objects to the acceptance of a proposal.
PART FOUR
Article VIII
Final Provisions
1. Acceptance ( 223 )
This Arrangement is open for acceptance, by signature or otherwise, by governments members of the United Nations, or of one of its specialized agencies and by the European Economic Community.
Any government ( 224 ) accepting this Arrangement may at the time of acceptance make a reservation with regard to its acceptance of any of the Protocols annexed to the Arrangement. This reservation is subject to the approval of the participants.
This Arrangement shall be deposited with the Director-General to the CONTRACTING PARTIES to the GATT who shall promptly furnish a certified copy thereof and a notification of each acceptance thereof to each participant. The texts of this Arrangements in the English, French and Spanish languages shall all be equally authentic.
Acceptance of this Arrangement shall carry denunciation of the Arrangement Concerning Certain Dairy Products, done at Geneva on 12 January 1970 which entered into force on 14 May 1970, for participants having accepted that Arrangement and denunciation of the Protocol Relating to Milk Fat, done at Geneva on 2 April 1973 which entered into force on 14 May 1973, for participants having accepted that Protocol. Such denunciation shall take effect on the date of entry into force of this Arrangement.
2. Provisional application
Any government may deposit with the Director-General to the CONTRACTING PARTIES to the GATT a declaration of provisional application of this Arrangement. Any government depositing such a declaration shall provisionally apply this Arrangement and be provisionally regarded as participating in this Arrangement.
3. Entry into force
This Arrangement shall enter into force, for those participants having accepted it, on 1 January 1980. For participants accepting this Arrangement after that date, it shall be effective from the date of their acceptance.
The validity of contracts entered into before the date of entry into force of this Arrangement is not affected by this Arrangement.
4. Validity
This Arrangement shall remain in force for three years. The duration of this Arrangement shall be extended for further periods of three years at a time, unless the Council at least eighty days prior to each date of expiry, decides otherwise.
5. Amendment
Except where provision for modification is made elsewhere in this Arrangement the Council may recommend an amendment to the provisions of this Arrangement. The proposed amendment shall enter into force upon acceptance by the governments of all participants.
6. Relationship between the Arrangement and the Annexes
The following shall be deemed to be an integral part of this Arrangement, subject to the provisions of paragraph l(b) of this Article:
7. Relationship between the Arrangement and the GATT
Nothing in this Arrangement shall affect the rights and obligations of participants under the GATT ( 225 ).
8. Withdrawal
Any participant may withdraw from this Arrangement. Such withdrawal shall take effect upon the expiration of sixty days from the day on which written notice of withdrawal is received by the Director-General to the CONTRACTING PARTIES to the GATT.
Subject to such conditions as may be agreed upon by the participants, any participant may withdraw from any of the Protocols annexed to this Arrangement. Such withdrawal shall take effect upon the expiration of sixty days from the day on which written notice of withdrawal is received by the Director-General to the CONTRACTING PARTIES to the GATT.
Done at Geneva this twelfth day of April nineteen hundred and seventy-nine.
ANNEX I
PROTOCOL REGARDING CERTAIN MILK POWDERS
PART ONE
Article 1
Product Coverage
PART TWO
Article 2
Pilot Products
For the purpose of this Protocol, minimum export prices shall be established for the pilot products of the following description:
Designation: Skimmed-milk powder
Milk fat content: less than or equal to 1,5 per cent by weight Water content: less than or equal to 5 per cent by weight
Designation: Whole milk powder
Milk fat content: 26 per cent by weight
Water content: less than or equal to 5 per cent by weight
Designation: Buttermilk powder ( 226 )
Milk fat content: less than or equal to 11 per cent by weight Water content: less than or equal to 5 per cent by weight
Packaging: in packages normally used in the trade, of a net content by weight of not less than 25 kg, or 50 Ibs, as appropriate
Terms of sale: f.o.b. ocean-going vessels from the exporting country or free-at-frontier exporting country.
By derogation from this provision, reference points are designated for the countries listed in Annex I (a) ( 227 ). The Committee established in pursuance of Article VII: 2 (a) of the Arrangement (hereinafter referred to as the Committee) may amend the contents of that Annex.
Prompt payment against documents.
Article 3
Minimum Prices
Level and observance of minimum prices
The minimum price levels set in the present Article take account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.
The minimum prices provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol are fixed at:
US$ 425 ( 228 ) per metric ton for the skimmed-milk powder defined in Article 2 of this Protocol.
US $ 725 ( 229 ) per metric ton for the whole milk powder defined in Article 2 of this Protocol.
US $ 425 ( 230 ) per metric ton for the buttermilk powder defined in Article 2 of this Protocol.
The levels of the minimum prices specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.
The levels of the minimum prices specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by products, other relevant economic factors of the world market, the need to maintain a long-term minimum return to the most economic producers, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the levels of the minimum prices set out in paragraph 2(b) of the present Article and the dairy support levels in the major producing participants.
Adjustment of minimum prices
If the products actually exported differ from the pilot products in respect of the fat content, packaging or terms of sale, the minimum prices shall be adjusted so as to protect the minimum prices established in this Protocol for the products specified in Article 2 of this Protocol according to the following provisions:
Exports and imports of skimmed-milk powder and buttermilk powder for purposes of animal feed
Special conditons of sales
Field of application
Transactions other than normal commercial transactions
Article 4
Provision of Information
Article 5
Obligations of Exporting Participants
Article 6
Cooperation of Importing Participants
Participants which import products coveral by Article 1 of this Protocol undertake in particular:
to cooperate in implementing the minimum prices objective of this Protocol and to ensure, as far as possible, that the products covered by Article 1 of this Protocol are not imported at less than the appropriate customs valuation equivalent to the prescribed minimum prices;
without prejudice to the provisions of Article III of the Arrangement and Article 4 of this Protocol, to supply information concerning imports of products covered by Article 1 of this Protocol from non-participants;
to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum prices threaten the operation of this Protocol.
PART THREE
Article 7
Derogations
Article 8
Emergency Action
ANNEX II
PROTOCOL REGARDING MILK FAT
PART ONE
Article 1
Product Coverage
PART TWO
Article 2
Pilot Products
For the purpose of this Protocol, minimum export prices shall be established for the pilot products of the following descriptions:
Designation: Anhydrous milk fat
Milk fat content: 99,5 per cent by weight
Designation: Butter
Milk fat content: 80 per cent by weight
Prompt payment against documents.
Article 3
Minimum Prices
Level and observance of minimum prices
The minimum price levels set out in the present Article take account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.
The minimum prices provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol are fixed at:
US$ 1 100 ( 236 ) per metric ton for the anhydrous milk fat defined in Article 2 of this Protocol.
US $ 925 ( 237 ) per metric ton for the butter defined in Article 2 of this Protocol.
The levels of the minimum prices specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.
The levels of the minimum prices specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by producers, other relevant economic factors of the world market, the need to maintain a long-term minimum return to the most economic producers, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the levels of the minimum prices set out in paragraph 2(b) of the present Article and the dairy support levels in the major producing participants.
Adjustment of minimum prices
If the products actually exported differ from the pilot products in respect of the fat content, packaging or terms of sale, the minimum prices shall be adjusted so as to protect the minimum prices established in this Protocol for the products specified in Article 2 of this Protocol according to the following provisions:
Special conditions of sales
Field of application
Transactions other than normal commercial transactions
The provisions of paragraphs 1 to 6 of this Article shall not be regarded as applying to donated exports to developing countries or to exports destined for relief purposes of food-related development purposes or welfare purposes in developing countries.
Article 4
Provision of Information
Article 5
Obligations of Exporting Participants
Article 6
Cooperation of Importing Participants
Participants which import products covered by Article 1 of this Protocol undertake in particular:
to cooperate in implementing the minimum prices objective of this Protocol and to ensure, as far as possible, that the products covered by Article 1 of this Protocol are not imported at less than the appropriate customs valuation equivalent to the prescribed minimum prices;
without prejudice to the provisions of Article III of the Arrangement and Article 4 of this Protocol, to supply information concerning imports of products covered by Article 1 of this Protocol from non-participants;
to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum prices threaten the operation of this Protocol.
PART THREE
Article 7
Derogations
Article 8
Emergency Action
ANNEX III
PROTOCOL REGARDING CERTAIN CHEESES
PART ONE
Article 1
Product Coverage
PART TWO
Article 2
Pilot Product
For the purpose of this Protocol, a minimum export price shall be established for the pilot product of the following description:
By derogation from this provision, reference points are designated for the countries listed in Annex III(a) ( 239 ). The Committee established in pursuance of Article VII:2(a) of the Arrangement (hereinafter referred to as the Committee) may amend the contents of that Annex.
Prompt payment against documents.
Article 3
Minimum Price
Level and observance of minimum price
The minimum price level set out in the present Article takes account, in particular, of the current market situation, dairy prices in producing participants, the need to ensure an appropriate relationship between the minimum prices established in the Protocols to the present Arrangement, the need to ensure equitable prices to consumers, and the desirability of maintaining a minimum return to the most efficient producers in order to ensure stability of supply over the longer term.
The minimum price provided for in paragraph 1 of the present Article applicable at the date of entry into force of this Protocol is fixed at US $ 800 ( 240 ) per metric ton.
The level of the minimum price specified in the present Article can be modified by the Committee, taking into account, on the one hand, the results of the operation of the Protocol and, on the other hand, the evolution of the situation of the international market.
The level of the minimum price specified in the present Article shall be subject to review at least once a year by the Committee. The Committee shall meet in September of each year for this purpose. In undertaking this review the Committee shall take account in particular, to the extent relevant and necessary, of costs faced by producers, other relevant economic factors of the world market, the need to maintain a long-term minimum return to the most economic producers, the need to maintain stability of supply and to ensure acceptable prices to consumers, and the current market situation and shall have regard to the desirability of improving the relationship between the level of the minimum price set out in paragraph 2(b) of the present Article and the dairy support levels in the major producing participants.
Adjustment of minimum price
If the products actually exported differ from the pilot products in respect or the packaging or terms of sale, the minimum price shall be adjusted so as to protect the minimum price established in this Protocol according to the following provisions:
Special conditions of sale
Field of application
Transactions other than normal commercial transactions
Article 4
Provision of Information
Article 5
Obligations of Exporting Participants
Article 6
Cooperation of Importing Participants
Participants which import products. covered by Article 1 of this Protocol undertake in particular:
to cooperate in implementing the minimum price objective of this Protocol and to ensure, as far as possible, that the products covered by Article 1 of this Protocol are not imported at less than the appropriate customs valuation equivalent to the prescribed minimum price;
without prejudice to the provisions of Article III of the Arrangement and Article 4 of this Protocol, to supply information concerning imports of products covered by Article 1 of this Protocol from non-participants;
to consider sympathetically proposals for appropriate remedial action if imports at prices inconsistent with the minimum price threaten the operation of this Protocol.
PART THREE
Article 7
Derogations
Article 8
Emergency Action
ARRANGEMENT REGARDING BOVINE MEAT
PREAMBLE
Convinced that increased international cooperation should be carried out in such a way as to contribute to the achievement of greater liberalization, stability and expansion in international trade in meat and live animals;
Taking into account the need to avoid serious disturbances in international trade in bovine meat and live animals;
Recognizing the importance of production and trade in bovine meat and live animals for the economies of many countries, especially for certain developed and developing countries;
Mindful of their obligations to the principles and objectives of the General Agreement on Tariffs and Trade (hereinafter referred to as ‘General Agreement’ or ‘GATT’) ( 242 ):
Determined, in carrying out the aims of this Arrangement to implement the principles and objectives agreed upon in the Tokyo Declaration of Ministers, dated 11 September 1973 concerning the Multilateral Trade Negotiations, in particular as concerns special and more favourable treatment for developing countries;
The participants in the present Arrangement have, through their representatives, agreed as follows:
PART ONE
GENERAL PROVISIONS
Article I
Objectives
The objectives of this Arrangement shall be:
to promote the expansion, ever greater liberalization and stability of the international meat and livestock market by facilitating the progressive dismantling of obstacles and restrictions to world trade in bovine meat and live animals, including those which compartmentalize this trade, and by improving the international framework of world trade to the benefit of both consumer and producer, importer and exporter;
to eucourage greater international cooperation in all aspects affecting the trade in bovine meat and live animals with a view in particular to greater rationalization and more efficient distribution of resources in the international meat economy;
to secure additional benefits for the international trade of developing countries in bovine meat and live animals through an improvement in the possibilities for these countries to participate in the expansion of world trade in these products by means of inter alia:
promoting long-term stability of prices in the context of an expanding world market for bovine meat and live animals; and
promoting the maintenance and improvement of the earnings of developing countries that are exporters of bovine meat and live animals;
the above with a view thus to deriving additional earnings, by means of securing long-term stability of markets for bovine meat and live animals;
to further expand trade on a competitive basis taking into account the traditional position of efficient producers.
Article II
Product Coverage
This Arrangement applies to bovine meat. For the purpose of this Arrangement, the term ‘bovine meat’ is considered to include:
CCCN |
|
(a) Live bovine animals |
01.02 |
(b) Meat and edible offals of bovine animals, fresh, chilled or frozen |
ex 02.01 |
(c) Meat and edible offals of bovine animals, salted, in brine, dried or smoked |
ex 02.06 |
(d) Other prepared or preserved meat or offal of bovine animals |
ex 16.02 |
and any other product that may be added by the International Meat Council, as established under the terms of Article V of this Arrangement, in order to accomplish the objectives and provisions of this Arrangement.
Article III
Information and Market Monitoring
Thesecretariat of the Arrangement shall monitor variations in market data, in particular herd sizes, stocks, slaughterings and domestic and international prices, so as to permit early detection of the symptoms of any serious imbalance in the supply and demand situation. The secretariat shall keep the Council apprized of significant developments on world markets, as well as prospects for production, consumption, exports and imports.
Note: It is understood that under the provisions of this Article, the Council instructs the secretariat to draw up, and keep up to date, an inventory of all measures affecting trade in bovine meat and live animals, including commitments resulting from bilateral, plurilateral and multilateral negotiations.
Article IV
Functions of the International Meat Council and Cooperation between the Participants to this Arrangement
The Council shall meet in order to
evaluate the world supply and demand situation and outlook on the basis of an interpretative analysis of the present situation and of probable developments drawn up by the secretariat of the Arrangement, on the basis of documentation provided in conformity with Article III of the present Arrangement, including that relating to the operation of domestic and trade policies and of any other information available to the secretariat:
proceed to a comprehensive examination of the functioning of the present Arrangement,
provide an opportunity for regular consultation on all matters affecting international trade in bovine meat.
PART TWO
Article V
Administration of the Arrangement
1. International Meat Council
An International Meat Council shall be established within the framework of the GATT. The Council shall comprise representatives of all participants to the Arrangement and shall carry out all the functions which are necessary to implement the provisions of the Arrangement. The Council shall be serviced by the GATT secretariat. The Council shall establish its own rules of procedure, in particular the modalities for consultations provided for in Article IV.
2. Regular and special meetings
The Council shall normally meet at least twice each year. However the Chairman may call a special meeting of the Council either on his own initiative, or at the request of a participant to this Arrangement.
3. Decisions
The Council shall reach its decisions by consensus. The Council shall be deemed to have decided on a matter submitted for its consideration if no member of the Council formally objects to the acceptance of a proposal.
4. Cooperation whith other organizations
The Council shall make whatever arrangements are appropriate for consultation or cooperation with intergovernmental and non-governmental organizations.
5. Admission of observers
The Council may invite any non-participating country to be represented at any of its meetings as an observer.
The Council may also invite any of the organizations referred to in paragraph 4 of this Article to attend any of its meetings as an observer.
PART THREE
Article VI
Final Provisions
1. Acceptance ( 244 )
This Arrangement is open for acceptance, by signature or otherwise by governments members of the United Nations or of one of its specialized agencies and by the European Economic Community.
Any government ( 245 ) accepting this Arrangement may at the time of acceptance make a reservation with regard to its acceptance of any of the provisions in the present Arrangement. This reservation is subject to the approval of the participants.
This Arrangement shall be deposited with the Director-General to the CONTRACTING PARTIES to the GATT who shall promptly furnish a certified copy thereof and a notification of each acceptance thereof to each participant. The texts of this Arrangement in the English, French and Spanish languages shall all be equally authentic.
The entry into force of this Arrangement shall entail the aboliton of the International Meat Consultative Group.
2. Provisional application
Any government may deposit with the Director-General to the CONTRACTING PARTIES to the GATT a declaration of provisional application of this Arrangement. Any government depositing such a declaration shall provisonally apply this Arrangement and be provisonally regarded as participating in this Arrangement.
3. Entry into force
This Arrangement shall enter into force, for those participants having accepted it, on 1 January 1980. For participants accepting this Arrangement after that date, it shall be effective from the date of their acceptance.
4. Validity
This Arrangement shall remain in force for three years. The duration of this Arrangement shall be extended for further periods of three years at a time, unless the Council, at least eighty days prior to each date of expiry, decides otherwise.
5. Amendment
Except where provision for modification is made elsewhere in this Arrangement the Council may recommend an amendment to the provisions of this Arrangement. The proposed amendment shall enter into force upon acceptance by the governments of all participants.
6. Relationship between the Arrangement and the GATT
Nothing in this Arrangement shall affect the rights and obligations of participants under the GATT ( 246 ).
7. Withdrawal
Any participant may withdraw from this Arrangement. Such withdrawal shall take effect upon the expiration of sixty days from the date on which written notice of withdrawal is received by the Director-General to the CONTRACTING PARTIES to the GATT.
ANNEX 1
DRAFT EXCHANGE OF LETTERS BETWEEN URUGUAY AND THE EUROPEAN COMMUNITY
The European Community agrees to include in its final offer on market access under the Uruguay Round an additional quantity of two thousand metric tonnes of high-quality beef (0201.30.00 — 0206.10.85 meat of bovine animals, fresh or chilled: 0202.30.90 — 206 29.91 meat of bovine animals, frozen) from Uruguay.
The European Community and Uruguay agree that the provision contained in the Tokyo Round agreement according to which the European Community was prepared to envisage the possibility of Uruguay being able to export additional annual quantities of high-quality beef if the overall quota for such cuts was not fully used by other beneficiary countries shall cease to apply.
The abovementioned provision shall cease to apply on the same date that the additional quantity of two thousand metric tonnes is implemented.
( ) The body concerned shall be deemed to have decided by consensus on a matter submitted for its consideration, if no Member, present at the meeting when the decision is taken, formally objects to the proposed decision.
( ) The number of votes of the European Communities and their Member States shall in no case exceed the number of the Member States of the European Communities.
( ) Decisions by the General Council when convened as the Dispute Settlement Body shall be taken only in accordance with the provisions of paragraph 4 of Article 2 of the Dispute Settlement Understanding.
( ) A decision to grant a waiver in respect of any obligation subject to a transition period or a period for staged implementation that the requesting Member has not performed by the end of the relevant period shall be taken only by consensus.
( ) The waivers covered by this provision are listed in footnote 7 on pages 11 and 12 in Part II of document MTN/FA of 15 December 1993 and in MTN/FA/Corr.6 of 21 March 1994. The Ministerial Conference shall establish at its first session a revised list of waivers covered by this provision that adds any waivers granted under GATT 1947 after 15 December 1993 and before the date of entry into force of the WTO Agreement, and deletes the waivers which will have expired by that time.
( ) The activities of this working party shall be coordinated with those of the working group provided for in Section III of the Ministerial Decision on Notification Procedures adopted on 15 April 1994.
( ) Nothing in this Understanding is intended to modify the rights and obligations of Members under Articles XII or XVIII:B of GATT 1994. The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding may be invoked with respect to any matters arising from the application of restrictive import measures taken for balance-of-payments purposes.
( ) These measures include quantitative import restrictions, variable import levies, minimum import prices, discretionary import licensing, non-tariff measures maintained through State-trading enterprises, voluntary export restraints, and similar border measures other than ordinary customs duties, whether or not the measures are maintained under country-specific derogations from the provisions of GATT 1947, but not measures maintained under balance-of-payments provisions or under other general, non-agriculture-specific provisions of GATT 1994 or of the other Multilateral Trade Agreements in Annex 1A to the WTO Agreement.
( ) The reference price used to invoke the provisions of this subparagraph shall, in general, be the average c.i.f. unit value of the product concerned, or otherwise shall be an appropriate price in terms of the quality of the product and its stage of processing. It shall, following its initial use, be publicly specified and available to the extent necessary to allow other Members to assess the additional duty that may be levied.
( ) Where domestic consumption is not taken into account, the base trigger level under subparagraph 46(a) shall apply.
( ) ‘Countervailing duties’ where referred to in this Article are those covered by Article VI of GATT 1994 and Part V of the Agreement on subsidies and Countervailing Measures.
( *1 ) The product descriptions in round brackets are not necessarily exhaustive.
( ) For the purposes of paragraph 3 of this Annex, governmental stock-holding programmes for food security purposes in developing countries whose operation is transparent and conducted in accordance with officially published objective criteria or guidelines shall be considered to be in conformity with the provisions of this paragraph, including programmes under which stocks of foodstuffs for food security purposes are acquired and released at administered prices, provided that the difference between the acquisition price and the external reference price is accounted for in the AMS.
( ) For the purposes of paragraphs 3 and 4 of this Annex, the provision of foodstuffs at subsidized prices with the objective of meeting food requirements of urban and rural poor in developing countries on a regular basis at reasonable prices shall be considered to be in conformity with the provisions of this paragraph.
( ) In this Agreement, reference to Article XX(b) includes also the chapeau of that Article.
( ) For the purposes of paragraph 3 of Article 3, there is a scientific justification if, on the basis of an examination and evaluation of available scientific information in conformity with the relevant provisions of this Agreement, a Member determines that the relevant international standards, guidelines or recommendations are not sufficient to achieve its appropriate level of sanitary or phytosanitary protection.
( ) For purposes of paragraph 6 of Article 5, a measure is not more trade-restrictive than required unless there is another measure, reasonably available taking into account technical and economic feasibility, that achieves the appropriate level of sanitary or phytosanitary protection and is significantly less restrictive to trade.
( ) For the purpose of these definitions, ‘animal’ includes fish and wild fauna; ‘plant’ includes forests and wild flora; ‘pests’ include weeds; and ‘contaminants’ include pesticide and veterinary drug residues and extraneous matter.
( ) Sanitary and phytosanitary measures such as laws, decrees or ordinances which are applicable generally.
( ) When ‘nationals’ are referred to in this Agreement, the term shall be deemed, in the case of a separate customs territory Member of the WTO, to mean persons, natural or legal, who are domiciled or who have a real and effective industrial or commercial establishment in that customs territory.
( ) Control, inspection and approval procedures include inter alia procedures for sampling, testing and certification.
( ) To the extent possible, exports from a least-developed country Member may also benefit from this provision.
( ) The ‘agreement year’ is defined to mean a 12-month period beginning from the date of entry into force of the WTO Agreement and at the subsequent 12-month intervals.
( ) The relevant GATT 1994 provisions shall not include Article XIX in respect of products not yet integrated into GATT 1994, except as specifically provided in paragraph 3 of the Annex.
( ) Restrictions denote all unilateral quantitative restrictions, bilateral arrangements and other measures having a similar effect.
( ) A customs union may apply a safeguard measure as a single unit or on behalf of a Member State. When a customs union applies a safeguard measure as a single unit, all the requirements for the determination of serious damage or actual threat thereof under this Agreement shall be based on the conditions existing in the customs union as a whole. When a safeguard measure is applied on behalf of a Member State, all the requirements for the determination of serious damage, or actual threat thereof, shall be based on the conditions existing in that Member State and the measure shall be limited to that Member State.
( ) Such an imminent increase shall be a measurable one and shall not be determined to exist on the basis of allegation, conjecture or mere possibility arising, for example, from the existence of production capacity in the exporting Members.
( ) ‘Nationals’ here shall be deemed, in the case of a separate customs territory Member of the WTO, to mean persons, natural or legal, who are domiciled or who have a real and effective industrial or commercial establishment in that customs territory.
( ) In the case of TRIMs applied under discretionary authority, each specific application shall be notified. Information that would prejudice the legitimate commercial interests of particular enterprises need not be disclosed.
( ) The term ‘initiated’ as used in this Agreement means the procedural action by which a Member formally commences an investigation as provided in Article 5.
( ) Sales of the like product destined for consumption in the domestic market of the exporting country shall normally be considered a sufficient quantity for the determination of the normal value if such sales constitute 5 per cent or more of the sales of the product under consideration to the importing Member, provided that a lower ratio should be acceptable where the evidence demonstrates that domestic sales at such lower ratio are nonetheless of sufficient magnitude to provide for a proper comparison.
( ) When in this Agreement the term ‘authorities’ is used, it shall be interpreted as meaning authorities at an appropriate senior level.
( ) The extended period of time should normally be one year but shall in no case be less than six months.
( ) Sales below per unit costs are made in substantial quantities when the authorities establish that the weighted average selling price of the transactions under consideration for the determination of the normal value is below the weighted average per unit costs, or that the volume of sales below per unit costs represents not less than 20 per cent of the volume sold in transactions under consideration for the determination of the normal value.
( ) The adjustment made for start-up operations shall reflect the costs at the end of the start-up period or, if that period extends beyond the period of investigation, the most recent costs which can reasonably be taken into account by the authorities during the investigation.
( ) It is understood that some of the above factors may overlap, and authorities shall ensure that they do not duplicate adjustments that have been already made under this provision.
( ) Normally, the date of sale would be the date of contract, purchase order, order confirmation, or invoice, whichever establishes the material terms of sale.
( ) Under this Agreement the term ‘injury’ shall, unless otherwise specified, be taken to mean material injury to a domestic industry, threat of material injury to a domestic industry or material retardation of the establishment of such an industry and shall be interpreted in accordance with the provisions of this Article.
( ) One example, though not an exclusive one, is that there is convincing reason to believe that there will be, in the near future, substantially increased importation of the product at dumped prices.
( ) For the purpose of this paragraph, producers shall be deemed to be related to exporters or importers only if (a) one of them directly or indirectly controls the other; or (b) both of them are directly or indirectly controlled by a third person; or (c) together they directly or indirectly control a third person, provided that there are grounds for believing or suspecting that the effect of the relationship is such as to cause the producer concerned to behave differently from non-related producers. For the purpose of this paragraph, one shall be deemed to control another when the former is legally or operationally in a position to exercise restraint or direction over the latter.
( ) As used in this Agreement ‘levy’ shall mean the definitive or final legal assessment or collection of a duty or tax.
( ) In the case of fragmented industries involving an exceptionally large number of producers, authorities may determine support and opposition by using statistically valid sampling techniques.
( ) Members are aware that in the territory of certain Members employees of domestic producers of the like product or representatives of those employees may make or support an application for an investigation under paragraph 1.
( ) As a general rule, the time-limit for exporters shall be counted from the date of receipt of the questionnaire, which for this purpose shall be deemed to have been received one week from the date on which it was sent to the respondent or transmitted to the appropriate diplomatic representative of the exporting Member or, in the case of a separate customs territory Member of the WTO, an official representative of the exporting territory.
( ) It being understood that, where the number of exporters involved is particularly high, the full text of the written application should instead be provided only to the authorities of the exporting Member or to the relevant trade association.
( ) Members are aware that in the territory of certain Members disclosure pursuant to a narrowly-drawn protective order may be required.
( ) Members agree that requests for confidentiality should not be arbitrarily rejected.
( ) The word ‘may’ shall not be interpreted to allow the simultaneous continuation of proceedings with the implementation of price undertakings except as provided in paragraph 4.
( ) It is understood that the observance of the time-limits mentioned in this subparagraph and in subparagraph 3.2 may not be possible where the product in question is subject to judicial review proceedings.
( ) A determination of final liability for payment of anti-dumping duties, as provided for in paragraph 3 of Article 9, does not by itself constitute a review within the meaning of this Article.
( ) When the amount of the anti-dumping duty is assessed on a retrospective basis, a finding in the most recent assessment proceeding under subparagraph 3.1 of Article 9 that no duty is to be levied shall not by itself require the authorities to terminate the definitive duty.
( ) Where authorities provide information and explanations under the provisions of this Article in a separate report, they shall ensure that such report is readily available to the public.
( ) This is not intended to preclude action under other relevant provisions of GATT 1994, as appropriate.
( ) It is understood that this provision does not obligate Members to allow government entities of other Members to conduct preshipment inspection activities on their territory.
( ) An international standard is a standard adopted by a governmental or non-governmental body whose membership is open to all Members, one of whose recognized activities is in the field of standardization.
( ) It is understood that, for the purposes of this Agreement, ‘ force majeure ’ shall mean ‘ irresistible compulsion or coercion, unforeseeable course of events excusing from fulfilment of contract’.
( ) The obligations of user Members with respect to the services of preshipment inspection entities in connection with customs valuation shall be the obligations which they have accepted in GATT 1994 and the other Multilateral Trade Agreements included in Annex 1A of the WTO Agreement.
( ) It is understood that such technical assistance may be given on a bilateral, plurilateral or multilateral basis.
( ) It is understood that this provision is without prejudice to those determinations made for purposes of defining ‘domestic industry’ or ‘like products of domestic industry’ or similar terms wherever they apply.
( ) With respect to rules of origin applied for the purposes of government procurement, this provision shall not create obligations additional to those already assumed by Members under GATT 1994.
( ) In respect of requests made during the first year from the date of entry into force of the WTO Agreement, Members shall only be required to issue these assessments as soon as possible.
( ) If the ad valorem criterion is prescribed, the method for calculating this percentage shall also be indicated in the rules of origin.
( ) If the criterion of manufacturing or processing operation is prescribed, the operation that confers origin on the product concerned shall be precisely specified.
( ) At the same time, consideration shall be given to arrangements concerning the settlement of disputes relating to customs classification.
( ) In respect of requests made during the first year from entry into force of the WTO Agreement, Members shall only be required to issue these assessments as soon as possible.
( ) Those procedures referred to as ‘licensing’ as well as other similar administrative procedures.
( ) Nothing in this Agreement shall be taken as implying that the basis, scope or duration of a measure being implemented by a licensing procedure is subject to question under this Agreement.
( ) For the purpose of this Agreement, the term ‘governments’ is deemed to include the competent authorities of the European Communities.
( ) Those import licensing procedures requiring a security which have no restrictive effects on imports are to be considerd as falling within the scope of paragraphs 1 and 2.
( ) A developing country Member, other than a developing country Member which was a Party to the Agreement on Import Licensing Procedures done on 12 April 1979, which has specific difficulties with the requirements of subparagraphs (a)(ii) and (a)(iii) may, upon notification to the Committee, delay the application of these subparagraphs by not more than two years from the date of entry into force of the WTO Agreement for such Member.
( ) Sometimes referred to as ‘quota holders’.
( ) Originally circulated as GATT 1947 document L/3515 of 23 March 1971.
( ) In accordance with the provisions of Article XVI of GATT 1994 (Note to Article XVI) and the provisions of Annexes I through III of this Agreement, the exemption of an exported product from duties or taxes borne by the like product when destined for domestic consumption, or the remission of such duties or taxes in amounts not in excess of those which have accrued, shall not be deemed to be a subsidy.
( ) Objective criteria or conditions, as used herein, mean criteria or conditions which are neutral, which do not favour certain enterprises over others, and which are economic in nature and horizontal in application, such as number of employees or size of enterprise.
( ) In this regard, in particular, information on the frequency with which applications for a subsidy are refused or approved and the reasons for such decisions shall be considered.
( ) This standard is met when the facts demonstrate that the granting of a subsidy, without having been made legally contingent upon export performance, is in fact tied to actual or anticipated exportation or export earnings. The mere fact that a subsidy is granted to enterprises which export shall not for that reason alone be considered to be an export subsidy within the meaning of this provision.
( ) Measures referred to in Annex I as not constituting export subsidies shall not be prohibited under this or any other provision of this Agreement.
( ) Any time periods mentioned in this Article may be extended by mutual agreement.
( ) As established in Article 24.
( ) If a meeting of the DSB is not scheduled during this period, such a meeting shall be held for this purpose.
( ) This expression is not meant to allow counter-measures that are disproportionate in light of the fact that the subsidies dealt with under these provisions are prohibited.
( ) This expression is not meant to allow counter-measures that are disproportionate in light of the fact that the subsidies dealt with under these provisions are prohibited.
( ) The term ‘injury to the domestic industry’ is used here in the same sense as it is used in Part V.
( ) The term ‘nullification or impairment’ is used in this Agreement in the same sense as it is used in the relevant provisions of GATT 1994, and the existence of such nullification or impairment shall be established in accordance with the practice of application of these provisions.
( ) The term ‘serious prejudice to the interests of another Member’ is used in this Agreement in the same sense as it is used in paragraph 1 of Article XVI of GATT 1994, and includes threat of serious prejudice.
( ) The total ad valorem subsidization shall be calculated in accordance with the provisions of Annex IV.
( ) Since it is anticipated that civil aircraft will be subject to specific multilateral rules, the threshold in this subparagraph does not apply to civil aircraft.
( ) Members recognize that where royalty-based financing for a civil aircraft programme is not being fully repaid due to the level of actual sales falling below the level of forecast sales, this does not in itself constitute serious prejudice for the purpose of this subparagraph.
( ) Unless other multilaterally agreed specific rules apply to the trade in the product or commodity in question.
( ) The fact that certain circumstances are referred to in this paragraph does not, in itself, confer upon them any legal status in terms of either GATT 1994 or this Agreement. These circumstances must not be isolated, sporadic or otherwise insignificant.
( ) In the event that the request relates to a subsidy deemed to result in serious prejudice in terms of paragraph 1 of Article 6, the available evidence of serious prejudice may be limited to the available evidence as to whether the conditions of paragraph 1 of Article 6 have been met or not.
( ) Any time periods mentioned in this Article may be extended by mutual agreement.
( ) If a meeting of the DSB is not scheduled during this period, such a meeting shall be held for this purpose.
( ) It is recognized that government assistance for various purposes is widely provided by Members and that the mere fact that such assistance may not qualify for non-actionable treatment under the provisions of this Article does not in itself restrict the ability of Members to provide such assistance.
( ) Since it is anticipated that civil aircraft will be subject to specific multilateral rules, the provisions of this subparagraph do not apply to that product.
( ) Not later than 18 months after the date of entry into force of the WTO Agreement, the Committee on Subsidies and Countervailing Measures provided for in Article 24 (referred to in this Agreement as ‘the Committee’) shall review the operation of the provisions of subparagraph 2(a) with a view to making all necessary modifications to improve the operation of these provisions. In its consideration of possible modifications, the Committee shall carefully review the definitions of the categories set forth in this subparagraph in the light of the experience of Members in the operation of research programmes and the work in other relevant international institutions.
( ) The provisions of this Agreement do not apply to fundamental research activities independently conducted by higher education or research establishments. The term ‘fundamental research’ means an enlargement of general scientific and technical knowledge not linked to industrial or commercial objectives.
( ) The allowable levels of non-actionable assistance referred to in this subparagraph shall be established by reference to the total eligible costs incurred over the duration of an individual project.
( ) The term ‘industrial research’ means planned search or critical investigation aimed at discovery of new knowledge, with the objective that such knowledge may be useful in developing new products, processes or services, or in bringing about a significant improvement to existing products, processes or services.
( ) The term ‘pre-competitive development activity’ means the translation of industrial research findings into a plan, blueprint or design for new, modified or improved products, processes or services whether intended for sale or use, including the creation of a first prototype which would not be capable of commercial use. It may further include the conceptual formulation and design of products, processes or services alternatives and initial demonstration or pilot projects, provided that these same projects cannot be converted or used for industrial application or commercial exploitation. It does not include routine or periodic alterations to existing products, production lines, manufacturing processes, services, and other on-going operations even though those alterations may represent improvements.
( ) In the case of programmes which span industrial research and pre-competitive development activity, the allowable level of non-actionable assistance shall not exceed the simple average of the allowable levels of non-actionable assistance applicable to the above two categories, calculated on the basis of all eligible costs as set forth in items (i) to (v) of this subparagraph.
( ) A ‘general framework of regional development’ means that regional subsidy programmes are part of an internally consistent and generally applicable regional development policy and that regional development subsidies are not granted in isolated geographical points having no, or virtually no, influence on the devlopment of a region.
( ) ‘Neutral and objective criteria’ means criteria which do not favour certain regions beyond what is appropriate for the elimination or reduction of regional disparities within the framework of the regional development policy. In this regard, regional subsidy programmes shall include ceilings on the amount of assistance which can be granted to each subsidized project. Such ceilings must be differentiated according to the different levels of development of assisted regions and must be expressed in terms of investment costs or cost of job creation. Within such ceilings, the distribution of asisstance shall be sufficiently broad and even to avoid the predominant use of a subsidy by, or the granting of disproportionately large amounts of subsidy to, certain enterprises as provided for in Article 2.
( ) The term ‘existing facilities’ means facilities which have been in operation for at least two years at the time when new environmental requirements are imposed.
( ) It is recognized that nothing in this notification provision requires the provision of confidential information, including confidential business information.
( ) The provisions of Part II or III may be invoked in parallel with the provisions of Part V; however, with regard to the effects of a particular subsidy in the domestic market of the importing Member, only one form of relief (either a countervailing duty, if the requirements of Part V are met, or a counter-measure under Articles 4 or 7) shall be available. The provisions of Parts III and V shall not be invoked regarding measures considered non-actionable in accordance with the provisions of Part IV. However, measures referred to in paragraph l(a) of Article 8 may be investigated in order to determine whether or not they are specific within the meaning of Article 2. In addition, in the case of a subsidy referred to in paragraph 2 of Article 8 conferred pursuant to a programme which has not been notified in accordance with paragraph 3 of Article 8, the provisions of Part III or V may be invoked, but such subsidy shall be treated as non-actionable if it is found to conform to the standards set forth in paragraph 2 of Article 8.
( ) The term ‘countervailing duty’ shall be understood to mean a special duty levied for the purpose of offsetting any subsidy bestowed directly or indirectly upon the manufacture, production or export of any merchandise, as provided for in paragraph 3 of Article VI of GATT 1994.
( ) The term ‘initiated’ as used hereinafter means procedural action by which a Member formally commences an investigation as provided in Article 11.
( ) In the case of fragmented industries involving an exceptionally large number of procedures, authorities may determine support and opposition by using statistically valid sampling techniques.
( ) Members are aware that in the territory of certain Members employees of domestic producers of the like product or representatives of those employees may make or support an application for an investigation under paragraph 1.
( ) As a general rule, the time limit for exporters shall be counted from the date of receipt of the questionnaire, which for this purpose shall be deemed to have been received one week from the date on which it was sent to the respondent or transmitted to the appropriate diplomatic representatives of the exporting Member or, in the case of a separate customs territory Member of the WTO, an official representative of the exporting territory.
( ) It being understood that where the number of exporters involved is particularly high, the full text of the application should instead be provided only to the authorities of the exporting Member or to the relevant trade association who then should forward copies to the exporters concerned.
( ) Members are aware that in the territory of certain Members disclosure pursuant to a narrowly drawn protective order may be required.
( ) Members agree that requests for confidentiality should not be arbitrarily rejected. Members further agree that the investigating authority may request the waiving of confidentiality only regarding information relevant to the proceedings.
( ) It is particularly important, in accordance with the provisions of this paragraph, that no affirmative determination whether preliminary or final be made without reasonable opportunity for consultations having been given. Such consultations may establish the basis for proceeding under the provisions of Part II, III or X.
( ) Under this Agreement the term ‘injury’ shall, unless otherwise specified, be taken to mean material injury to a domestic industry, threat of material injury to a domestic industry or material retardation of the establishment of such an industry and shall be interpreted in accordance with the provisions of this Article.
( ) Throughout this Agreement the term ‘like product’ (‘produit similaire’) shall be interpreted to mean a product which is identical, i.e. alike in all respects to the product under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration.
( ) As set forth in paragraphs 2 and 4.
( ) For the purpose of this paragraph, producers shall be deemed to be related to exporters or importers only if (a) one of them directly or indirectly controls the other; or (b) both of them are directly or indirectly controlled by a third person; or (c) together they directly or indirectly control a third person, provided that there are grounds for believing or suspecting that the effect of the relationship is such as to cause the producer concerned to behave differently from non-related producers. For the purpose of this paragraph, one shall be deemed to control another when the former is legally or operationally in a position to exercise restraint or direction over the latter.
( ) The word ‘may’ shall not be interpreted to allow the simultaneous continuation of proceedings with the implementation of undertakings, except as provided in paragraph 4.
( ) For the purpose of this paragraph, the term ‘domestic interested parties’ shall include consumers and industrial users of the imported product subject to investigation.
( ) As used in this Agreement ‘levy’ shall mean the definitive or final legal assessment or collection of a duty or tax.
( ) When the amount of the countervailing duty is assessed on a retrospective basis, a finding in the most recent assessment proceeding that no duty is to be levied shall not by itself require the authorities to terminate the definitive duty.
( ) Where authorities provide information and explanations under the provisions of this Article in a separate report, they shall ensure that such report is readily available to the public.
( ) The Committee shall establish a Working Party to review the contents and form of the questionnaire as contained in BISD 9S/193—194.
( ) For a developing country Member not granting export subsidies as of the date of entry into force of the WTO Agreement, this paragraph shall apply on the basis of the level of export subsidies granted in 1986.
( ) This paragraph is not intended to preclude action under other relevant provisions of GATT 1994, where appropriate.
( ) The term ‘commercially available’ means that the choice between domestic and imported products is unrestricted and depends only on commercial considerations.
( ) For the purpose of this Agreement:
The term ‘direct taxes’ shall mean taxes on wages, profits, interests, rents, royalties, and all other forms of income, and taxes on the ownership of real property;
The term ‘import charges’ shall mean tariffs, duties, and other fiscal charges not elsewhere enumerated in this note that are levied on imports;
The term ‘indirect taxes’ shall mean sales, excise, turnover, value added, franchise, stamp, transfer, inventory and equipment taxes, border taxes and all taxes other than direct taxes and import charges;
‘Prior-stage’ indirect taxes are those levied on goods or services used directly or indirectly in making the product; ‘Cumulative’ indirect taxes are multi-staged taxes levied where there is no mechanism for subsequent crediting of the tax if the goods or services subject to tax at one stage of production are used in a succeeding stage of production;
‘Remission’ of taxes includes the refund or rebate of taxes;
‘Remission or drawback’ includes the full or partial exemption or deferral of import charges.
( ) The Members recognize that deferral need not amount to an export subsidy where, for example, appropriate interest charges are collected. The Members reaffirm the principle that prices for goods in transactions between exporting enterprises and foreign buyers under their or under the same control should for tax purposes be the prices which would be charged between independent enterprises acting at arm's length. Any Member may draw the attention of another Member to administrative or other practices which may contravene this principle and which result in a significant saving of direct taxes in export transactions. In such circumstances the Members shall normally attempt to resolve their differences using the facilities of existing bilateral tax treaties or other specific international mechanisms, without prejudice to the rights and obligations of Members under GATT 1994, including the right of consultation created in the preceding sentence.
Paragraph (e) is not intended to limit a Member from taking measures to avoid the double taxation of foreign-source income earned by its enterprises or the enterprises of another Member.
( ) Paragraph (h) does not apply to value-added tax systems and border-tax adjustment in lieu thereof; the problem of the excessive remission of value-added taxes is exclusively covered by paragraph (g).
( ) Inputs consumed in the production process are inputs physically incorporated, energy, fuels and oil used in the production process and catalysts which are consumed in the course of their use to obtain the exported product.
( ) An understanding among Members should be developed, as necessary, on matters which are not specified in this Annex or which need further clarification for the purposes of paragraph l(a) of Article 6.
( ) The recipient firm is a firm in the territory of the subsidizing Member.
( ) In the case of tax-related subsidies the value of the product shall be calculated as the total value of the recipient firm's sales in the fiscal year in which the tax-related measure was earned.
( ) Start-up situations include instances where financial commitments for product development or construction of facilities to manufacture products benefiting from the subsidy have been made, even though production has not begun.
( ) In cases where the existence of serious prejudice has to be demonstrated.
( ) The information-gathering process by the DSB shall take into account the need to protect information which is by nature confidential or which is provided on a confidential basis by any Member involved in this process.
( ) The inclusion of developing country Members in the list in paragraph (b) is based on the most recent data from the World Bank on GNP per capita.
( 1 ) For greater certainty, aquaculture and inland fisheries are excluded from the scope of this Agreement.
( 2 ) For greater certainty, government-to-government payments under fisheries access agreements shall not be deemed to be subsidies within the meaning of this Agreement.
( 3 ) For greater certainty, for the purposes of this Agreement, a subsidy shall be attributable to the Member conferring it, regardless of the flag or registry of any vessel involved or the nationality of the recipient.
( 4 ) ‘Illegal, unreported and unregulated (IUU) fishing’ refers to activities set out in paragraph 3 of the International Plan of Action to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated Fishing adopted by the UN Food and Agriculture Organization (FAO) in 2001.
( 5 ) For the purpose of Article 3, the term ‘operator’ means the operator within the meaning of Article 2(e) at the time of the IUU fishing infraction. For greater certainty, the prohibition on granting or maintaining subsidies to operators engaged in IUU fishing applies to subsidies provided to fishing and fishing related activities at sea.
( 6 ) Nothing in this Article shall be interpreted to obligate Members to initiate IUU fishing investigations or make IUU fishing determinations.
( 7 ) Nothing in this Article shall be interpreted as affecting the competence of the listed entities under relevant international instruments or granting new rights to the listed entities in making IUU fishing determinations.
( 8 ) Nothing in this Article shall be interpreted to delay, or affect the validity or enforceability of, an IUU fishing determination.
( 9 ) For example, this may include an opportunity to dialogue or for written exchange of information if requested by the flag State or subsidizing Member.
( 10 ) Termination of sanctions is as provided for under the laws or procedures of the authority having made the determination referred to in Article 3.2.
( 11 ) For the purpose of this paragraph, a biologically sustainable level is the level determined by a coastal Member having jurisdiction over the area where the fishing or fishing related activity is taking place, using reference points such as maximum sustainable yield (MSY) or other reference points, commensurate with the data available for the fishery; or by a relevant RFMO/A in areas and for species under its competence.
( 12 ) For the purpose of Article 8.1, Members shall provide this information in addition to all the information required under Article 25 of the SCM Agreement and as stipulated in any questionnaire utilized by the SCM Committee, for example G/SCM/6/Rev.1.
( 13 ) For LDC Members, and developing country Members with an annual share of the global volume of marine capture production not exceeding 0.8 per cent as per the most recent published FAO data as circulated by the WTO Secretariat, the notification of the additional information in this subparagraph may be made every four years.
( 14 ) The term ‘shared stocks’ refers to stocks that occur within the EEZs of two or more coastal Members, or both within the EEZ and in an area beyond and adjacent to it.
( 15 ) For multispecies fisheries, a Member instead may provide other relevant and available catch data.
( 16 ) This obligation can be met by providing an up-to-date electronic link to the notifying Member's or other appropriate official web page that sets out this information.
( 17 ) Subparagraphs 1(b) and 1(c) of Article XXIII of the GATT 1994 and Article 26 of the DSU shall not apply to the settlement of disputes under this Agreement.
( 18 ) For purposes of this Article, the term ‘prohibited subsidy’ in Article 4 of the SCM Agreement refers to subsidies subject to prohibition in Article 3, Article 4 or Article 5 of this Agreement.
( 19 ) For greater certainty, this provision does not apply to economic or financial crises.
( 20 ) This limitation shall also apply to an arbitrator established pursuant to Article 25 of the Dispute Settlement Understanding.
( 21 ) Including rules and procedures of RFMO/As.
( 21 ) A customs union may apply a safeguard measure as a single unit or on behalf of a member State. When a customs union applies a safeguard measure as a single unit, all the requirements for the determination of serious injury or threat thereof under this Agreement shall be based on the conditions existing in the customs union as a whole. When a safeguard measure is applied on behalf of a member State, all the requirements for the determination of serious injury or threat thereof shall be based on the conditions existing in that member State and the measure shall be limited to that member State. Nothing in this Agreement prejudges the interpretation of the relationship between Article XIX and paragraph 8 of Article XXIV of GATT 1994.
( 21 ) A Member shall immediately notify an action taken under paragraph 1 of Article 9 to the Committee on Safeguards.
( 21 ) An import quota applied as a safeguard measure in conformity with the relevant provisions of GATT 1994 and this Agreement may, by mutual agreement, be administered by the exporting Member.
( 21 ) Examples of similar measures include export moderation, export-price or import-price monitoring systems, export or import surveillance, compulsory import cartels and discretionairy export or import licensing schemes, any of which afford protection.
( 21 ) The only such exception to which the European Communities is entitled is indicated in the Annex to this Agreement.
( 21 ) This condition is understood in terms of number of sectors, volume of trade affected and modes of supply. In order to meet this condition, agreements should not provide for the a priori exclusion of any mode of supply.
( 21 ) Typically, such integration provides citizens of the parties concerned with a right of free entry to the employment markets of the parties and includes measures concerning conditions of pay, other conditions of employment and social benefits.
( 21 ) The term ‘relevant international organization’ refers to international bodies whose membership is open to the relevant bodies of at least all Members of the WTO.
( 21 ) It is understood that the procedures under paragraph 5 shall be the same as the GATT 1994 procedures.
( 21 ) The public order exception may be invoked, only where a genuine and sufficiently serious threat is posed to one of the fundamental interests of society.
( 21 ) Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include measures taken by a Member under its taxation system which:
apply to non-resident service suppliers in recognition of the fact that the tax obligation of non-residents is determined with respect to taxable items sourced or located in the Member's territory; or
apply to non-residents in order to ensure the imposition or collection of taxes in the Member's territory; or
apply to non-residents or residents in order to prevent the avoidance or evasion of taxes, including compliance measures; or
apply to consumers of services supplied in or from the territory of another Member in order to ensure the imposition or collection of taxes on such consumers derived from sources in the Member's territory; or
distinguish service suppliers subject to tax on worldwide taxable items from other service suppliers, in recognition of the difference in the nature of the tax base between them; or
determine, allocate or apportion income, profit, gain, loss, deduction or credit of resident persons or branches, or between related persons or branches of the same person, in order to safeguard the Member's tax base.
Tax terms or concepts in paragraph (d) of Article XIV and in this footnote are determined according to tax definitions and concepts, or equivalent or similar definitions and concepts, under the domestic law of the Member taking the measure.
( 21 ) A future work programme shall determine how, and in what time-frame, negotiations on such multilateral disciplines will be conducted.
( 21 ) If a Member undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in subparagraph 2(a) of Article I and if the cross-border movement of capital is an essential part of the service itself, that Member is thereby committed to allow such movement of capital. If a Member undertakes a market-access commitment in relation to the supply of a service through the mode of supply referred to in subparagraph 2(c) of Article I, it is thereby committed to allow related transfers of capital into its territory.
( 21 ) Subparagraph 2(c) does not cover measures of a Member which limit inputs for the supply of services.
( 21 ) Specific commitments assumed under this Article shall not be construed to require any Member to compensate for any inherent competitive disadvantages which result from the foreign character of the relevant services or service suppliers.
( 21 ) With respect to agreements on the avoidance of double taxation which exist on the date of entry into force of the WTO Agreement, such a matter may be brought before the Council for Trade in Services only with the consent of both parties to such an agreement.
( 21 ) Where the service is not supplied directly by a juridical person but through other forms of commercial presence such as a branch or a representative office, the service supplier (i.e. the juridical person) shall, nonetheless, through such presence be accorded the treatment provided for service suppliers under the Agreement. Such treatment shall be extended to the presence through which the service is supplied and need not be extended to any other parts of the supplier located outside the territory where the service is supplied.
( 21 ) The sole fact of requiring a visa for natural persons of certain Members and not for those of others shall not be regarded as nullifying or impairing benefits under a specific commitment.
( 21 ) This paragraph is understood to mean that each Member shall ensure that the obligations of this Annex are applied with respect to suppliers of public telecommunications transport networks and services by whatever measures are necessary.
( 21 ) The term ‘non-discriminatory’ is understood to refer to most-favoured-nation and national treatment as defined in the Agreement, as well as to reflect sector-specific usage of the ‘term to mean terms and conditions no less favourable than those accorded to any other user of like public telecommunications transport networks or services under like circumstances’.
( 21 ) When ‘nationals’ are referred to in this Agreement, they shall be deemed, in the case of a separate customs territory Member of the WTO, to mean persons, natural or legal, who are domiciled or who have a real and effective industrial, or commercial establishment in that customs territory.
( 21 ) In this Agreement, ‘Paris Convention’ refers to the Paris Convention for the Protection of Industrial Property; ‘Paris Convention (1967)’ refers to the Stockholm Act of this Convention of 14 July 1967. ‘Berne Convention’ refers to the Berne Convention for the Protection of Literary and Artistic Works; ‘Berne Convention (1971)’ refers to the Paris Act of this Convention of 24 July 1971. ‘Rome Convention’ refers to the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations, adopted at Rome on 26 October 1961. ‘Treaty on Intellectual Property in Respect of Integrated Circuits’ (IPIC Treaty) refers to the Treaty on Intellectual Property in Respect of Integrated Circuits, adopted at Washington on 26 May 1989. ‘WTO Agreement’ refers to the Agreement Establishing the WTO.
( 21 ) For the purposes of Articles 3 and 4, ‘protection’ shall include matters affecting the availability, acquisition, scope, maintenance and enforcement of intellectual property rights as well as those matters affecting the use of intellectual property rights specifically addressed in this Agreement.
( 21 ) Notwithstanding the first sentence of Article 42, Members may, with respect to these obligations, instead provide for enforcement by administrative action.
( 21 ) For the purposes of this Article, the terms ‘inventive step’ and ‘capable of industrial application’ may be deemed by a Member to be synonymous with the terms ‘non-obvious’ and ‘useful’ respectively.
( 21 ) This right, like all other rights conferred under this Agreement in respect of the use, sale, importation or other distribution of goods, is subject to the provisions of Article 6.
( 21 ) ‘Other use’ refers to use other than that allowed under Article 30.
( 21 ) It is understood that those Members which do not have a system of original grant may provide that the term of protection shall be computed from the filing date in the system of original grant.
( 21 ) The term ‘right holder’ in this Section shall be understood as having the same meaning as the term ‘holder of the right’ in the IPIC Treaty.
( 21 ) For the purpose of this provision, ‘a manner contrary to honest commercial practices’ shall mean at least practices such as breach of contract, breach of confidence and inducement to breach, and includes the acquisition of undisclosed information by third parties who knew, or were grossly negligent in failing to know, that such practices were involved in the acquisition.
( 21 ) For the purpose of this Part, the term ‘right holder’ includes federations and associations having legal standing to assert such rights.
( 21 ) Where a Member has dismantled substantially all controls over movement of goods across its border with another Member with which it forms part of a customs union, it shall not be required to apply the provisions of this Section at that border.
( 21 ) It is understood that there shall be no obligation to apply such procedures to imports of goods put on the market in another country by or with the consent of the right holder, or to goods in transit.
( 21 ) For the purposes of this Agreement:
‘counterfeit trademark goods’ shall mean any goods, including packaging, bearing without authorization a trademark which is identical to the trademark validly registered in respect of such goods, or which cannot be distinguished in its essential aspects from such a trademark, and which thereby infringes the rights of the owner of the trademark in question under the law of the country of importation;
‘pirated copyright goods’ shall mean any goods which are copies made without the consent of the right holder or person duly authorized by the right holder in the country of production and which are made directly or indirectly from an article where the making of that copy would have constituted an infringement of a copyright or a related right under the law of the country of importation.
( 21 ) The DSB shall be deemed to have decided by consensus on a matter submitted for its consideration, if no Member, present at the meeting of the DSB when the decision is taken, formally objects to the proposed decision.
( 21 ) This paragraph shall also be applied to disputes on which panel reports have not been adopted or fully implemented.
( 21 ) Where the provisions of any other covered agreement concerning measures taken by regional or local governments or authorities within the territory of a Member contain provisions different from the provisions of this paragraph, the provisions of such other covered agreement shall prevail.
( 21 ) The corresponding consultation provisions in the covered agreements are listed hereunder: Agreement on Agriculture, Article 19; Agreement on the Application of Sanitary and Phytosanitary Measures, paragraph 1 of Article 11; Agreement on Textiles and Clothing, paragraph 4 of Article 8; Agreement on Technical Barriers to Trade, paragraph 1 of Article 14; Agreement on Trade-Related Investment Measures, Article 8; Agreement on Implementation of Article VI of GATT 1994, paragraph 2 of Article 17; Agreement on Implementation of Article VII of GATT 1994, paragraph 2 of Article 19; Agreement on Preshipment Inspection, Article 7; Agreement on Rules of Origin, Article 7; Agreement on Import Licensing Procedures, Article 6; Agreement on Subsidies and Countervailing Measures, Article 30; Agreement on Safeguards, Article 14; Agreement on Trade-Related Aspects of Intellectual Property Rights, Article 64.1; and any corresponding consultation provisions in Plurilateral Trade Agreements as determined by the competent bodies of each Agreement and as notified to the DSB.
( 21 ) If the complaining party so requests, a meeting of the DSB shall be convened for this purpose within 15 days of the request, provided that at least 10 days' advance notice of the meeting is given.
( 21 ) In the case where customs unions or common markets are parties to a dispute, this provision applies to citizens of all member countries of the customs unions or common markets.
( 21 ) If a meeting of the DSB is not scheduled within this period at a time that enables the requirements of paragraphs 1 and 4 of Article 16 to be met, a meeting of the DSB shall be held for this purpose.
( 21 ) If a meeting of the DSB is not scheduled during this period, such a meeting of the DSB shall be held for this purpose.
( 21 ) The ‘Member concerned’ is the party to the dispute to which the panel or Appellate Body recommendations are directed.
( 21 ) With respect to recommendations in cases not involving a violation of GATT 1994 or any other covered agreement, see Article 6.
( 21 ) If the parties cannot agree on an arbitrator within ten days after referring the matter to arbitration, the arbitrator shall be appointed by the Director-General within ten days, after consulting the parties.
( 21 ) The expression ‘arbitrator’ shall be interpreted as referring either to an individual or a group.
( 21 ) The list in document MTN.GNS/W/120 identifies eleven sectors.
( 21 ) The expression ‘arbitrator’ shall be interpreted as referring either to an individual or a group.
( 21 ) The expression ‘arbitrator’ shall be interpreted as referring either to an individual or a group or to the members of the original panel when serving in the capacity of arbitrator.
( 21 ) Where the provisions of any covered agreement concerning measures taken by regional or local governments or authorities within the territory of a Member contain provisions different from the provisions of this paragraph, the provisions of such covered agreement shall prevail.
( 21 ) This list does not alter existing notification requirements in the Multilateral Trade Agreements in Annex 1A to the WTO Agreement or, where applicable, the Plurilateral Trade Agreements in Annex 4 of the WTO Agreement.
( 21 ) For each Party, Appendix I is divided into five Annexes:
Relevant thresholds are specified in each Party's Annexes.
( 21 ) This Agreement shall apply to any procurement contract for which the contract value is estimated to equal or exceed the threshold at the time of publication of the notice in accordance with Article IX.
( 21 ) For the purpose of this Agreement, a technical regulation is a document which lays down characteristics of a product or a service or their related processes and production methods, including the applicable administrative provisions, with which compliance is mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, service, process or production method.
( 21 ) For the purpose of this Agreement, a standard is a document approved by a recognized body, that provides, for common and repeated use, rules, guidelines or characteristics for products or services or related processes and production methods, with which compliance is not mandatory. It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling requirements as they apply to a product, service, process or production method.
( 21 ) It is the understanding that ‘existing equipment’ includes software to the extent that the initial procurement of the software was covered by the Agreement.
( 21 ) Original development of a first product or service may include limited production or supply in order to incorporate the results of field testing and to demonstrate that the product or service is suitable for production or supply in quantity to acceptable quality standards. It does not extend to quantity production or supply to establish commercial viability or to recover research and development costs.
( 21 ) Offsets in government procurement are measures used to encourage local development or improve the balance-of-payments accounts by means of domestic content, licensing of technology, investment requirements, counter-trade or similar requirements.
( 21 ) For the purpose of this Agreement, the term ‘government’ is deemed to include the competent authorities of the European Communities.
( 21 ) All provisions of the 1988 Agreement except the Preamble, Article VII and Article IX other than paragraphs 5(a) and (b) and paragraph 10.
( 21 ) In this Arrangement and in the Protocols annexed thereto, the term ‘country’ is deemed to include the European Economic Community.
( 21 ) This preambular provision applies only among participants that are Contracting Parties to the GATT.
( 21 ) It is confirmed that the term ‘matter’ in this paragraph includes any matter which is covered by multilateral agreements negotiated within the framework of the Multilateral Trade Negotiations, in particular those bearing on export and import measures. It is further confirmed that the provisions of Article IV:5 and this footnote are without prejudice to the rights and obligations of the parties to such agreements.
( 21 ) The terms ‘acceptance’ or ‘accepted’ as used in this Article include the completion of any domestic procedures necessary to implement the provisions of this Arrangement.
( 21 ) For the purpose of this Arrangement, the term ‘government’ is deemed to include the competent authorities of the European Economic Community.
( 21 ) This provision applies only among participants that are Contracting Parties to the GATT.
( 21 ) Derived from the manufacture of butter and anhydrous milk fat.
( 21 ) Annex I (1) is not reproduced.
( 21 ) US$ 600 per metric ton since 1 October 1981.
( 21 ) US$ 830 per metric ton since 5 June 1985.
( 21 ) US$ 600 per metric ton since 1 October 1981.
( 21 ) As defined in Article 2.1 (c) of this Procotol.
( 21 ) See Annex l(b), ‘Schedule of price differentials according to milk fat content’. (Annex 1 (b) is not reproduced).
( 21 ) See Article 2.
( 21 ) See Annex I(c), ‘Register of Processes and Control Measures’. It is understood that exporters would be permitted to ship skimmed-milk powder and buttermilk powder for animal feed purposes in an unaltered state to importers which have nad their processes and control measures inserted in the Register. In this case, exporters world inform the Committee of their intention to ship unaltered skimmed-milk powder and or buttermilk powder for animal feed purposes to those importers which have their processes and control measures registered. (Annex I (c) is not reproduced).
( 21 ) Annex II(a) is not reproduced.
( 21 ) US$ 1 200 per metric ton since 5 June 1985.
( 21 ) US$ 1 000 per metric ton since 5 June 1985.
( 21 ) See Article 2.
( 21 ) Annex III(a) is not reproduced.
( 21 ) US$ 1 000 per metric ton since 1 October 1981.
( 21 ) See Article 2.
( 21 ) This provision applies only among GATT Contracting Parties.
( 21 ) Note: It is confirmed that the term ‘matter’ in this paragraph includes any matter which is covered by multilateral agreements negotiated within the framework of the Multilateral Trade Negotiations, in particular those bearing on export and import measures. It is further confirmed that the provisions of Article IV, paragraph 6, and this footnote are without prejudice to the rights and obligations of the Parties to such agreements.
( 21 ) The terms ‘acceptance’ or ‘accepted’ as used in this Article include the completion of any domestic procedures necessary to implement the provisions of this Arrangement.
( 21 ) For the purpose of this Arrangement the term ‘government’ is deemed to include the competent authorities of the European Economic Community.
( 21 ) This provision applies only among GATT contracting parties.