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ITA Products and Harmonized System. J ü rgen Richtering Chief, Integrated Data Base Section Economic Research and Statistics Division WTO Secretariat. WTO Information Technology Symposium, 29 March 2007. Scope of Presentation. ITA product coverage Harmonized System Amendments
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ITA Products and Harmonized System Jürgen RichteringChief, Integrated Data Base SectionEconomic Research and Statistics Division WTO Secretariat WTO Information Technology Symposium, 29 March 2007
Scope of Presentation • ITA product coverage • Harmonized System Amendments • Transposing ITA products • Product lists • WTO Schedules
Product Coverage of ITA • Attachment A, Section 1Major IT products (112 items related to 110 HS6d including 24 ex) • Attachment A, Section 2Semiconductor manufacturing and testing equipment and parts (78 items related to 45 HS6d including 71 ex, incl. Att. B items) • Attachment BList of specific ITA products (13 items without codes, most of them are already covered by Attachment A)
ITA Products in WTO Schedules • ITA Annex Paragraph 1 Each participant shall incorporate the measures described in paragraph 2 of the Declaration into its schedule to the General Agreement on Tariffs and Trade 1994, … • ITA commitments became legal bindings reflected in participants’ WTO Schedules
ITA Products in WTO Schedules • Most participants have made ratifications to their Schedule by including ITA commitments at national tariff line level (more detailed than HS) • Following the ITA product lists but with divergences for Attachment B products • Included in the WTO Consolidated Tariff Schedule (CTS) database with ITA flag
Harmonized System Amendments A nomenclature used by most countries since 1988. Maintained by the World Customs Organization (WCO), revised every four or five years • 1992 Amendment (5018 HS codes) Mainly editorial • 1996 Amendment (5113 HS codes) 393 amendments • 2002 Amendment (5224 HS codes) 374 amendments • 2007 Amendment (5052 HS codes) 354 amendments • 2012 Amendment already started
Coverage of HS Amendments Percentage HS subheadings involved in each HS amendment
Implementation of HS Amendments for ITA When HS amended, HS structure and codes for ITA products need to be updated in … • WTO Schedules (Bound duties) • Done by WTO Members / Secretariat • ITA product lists: Attachment A and B to ITA • Done by ITA participants / ITA Committee / Secretariat • Schedules of applied tariff (Applied duties) • Done by WTO Members themselves
Relationship between the three transpositions: bound, applied and ITA list • Could be done independently • Applied should conform to bound • Applied/bound should conform to ITA product lists But … • Divergences between ITA list and bound/applied already exist because of Attachment B products • Change of the product list may result in amendment of bound or applied coverage
Roadmap • WTO Schedules • Will be transposed with existing CMA procedures • May be reviewed by ITA Committee • ITA lists will be transposed by ITA Committee • Ratification of bound Schedules may be needed when the new ITA lists are agreed
ITA Products and HS 2002 • 8 subheadings have been affected by HS2002 (8542.12 to 8542.50 and 9009.90) • Transposition of WTO Schedules have been done for most Participants • Following procedure and methods specified in WT/L/605 • Document G/IT/W/22 describes these changes in detail
ITA Products and HS 2007 • Major changes on ITA products • Changes on printing machinery (84.43), ADP machines (84.71), semiconductor manufacture equipment (84.86), telecommunication products (85.17), media for recorded data (85.23), monitors (85.28) • 158 of 241 subheadings have been affected 54 of 111 in Attachment A-1, 53 of 58 in A-2, and 51 of 71 in B • Non-consensus correlations for printers (84.43), semiconductor equipments(84.86)
HS 2007 Transposition of Schedules • Under CMA framework • Same methodologies as HS 2002 for Schedule • Starting Second half of this year • Methodology documents : WT/L/673
HS 2007 Transposition of ITA Lists • Technical transposition by following WCO standard correlation table • Potentially increase “ex” items • Classification divergence of Attachment B products more complicated • Redefine ITA product coverage in HS2007 nomenclature • May reduce “ex” items, cleaner list • May make it easier for discussions on Attachment B items (e.g. agree full heading 84.86 as ITA) • Needs to be negotiated
Example of 84.43 Printers – Schedule Correlation Table ITA Attachment A Section 1 Note: * No concensus for these correlations Member A’s Schedule in HS 2002 Member A’s Schedule in HS 2007
Example of 84.43 Printers – ITA List ITA Attachment A Section 1 Correlation Table Note: * No concensus for these correlations ITA Product List in HS 2002 ITA Product List in HS 2007
Conclusion • HS amendments have great impact to ITA products • Both WTO Schedules and ITA lists need to be updated • Transposition is complicated process
Thank You! WTO Information Technology Symposium, 29 March 2007