Presentation Transcript

1. Market Access: TariffsandotherCharges

   WTO Law V.1
2. TRADE BARRIERS
3. TariffReductionanditsimpact
4. Function of Tariffs
5. Tariff Schedule of a Country - 1 Part I : Most-favoured-nation or MFN concessions, maximum tariffs to goods from other WTO members. Part I is further divided into:- Section 1A — tariffs on agricultural products- Section 1B — tariff quotas on agricultural products- Section II — Other products Part II: Preferential concessions (tariffs relating to trade arrangements listed in GATT Article I) Part III: Concessions on non-tariff measures (NTMs) Part IV: Specific commitments on domestic support and export subsidies on agricultural products
6. Tariff Schedule of a country - 2 Tariff item number Description of theproduct Rate of duty Presentconcessionestablished Initial Negotiation Rights (or INR, such as main suppliers of product) Concession first incorporated in a GATT Schedule INR on earlieroccasions Other dutiesandcharges For agricultural products special safeguards may also be defined
7. Harmonized System Classification Section I (Chapters 1-5, live animals and animal products);Section II (Chapters 6-14, vegetable products);Section III (Chapter 15, animal or vegetable fats and oils);Section IV (Chapters 16-24, prepared foodstuffs, beverages and spirits, tobacco);Section V (Chapters 25-27, mineral products);Section VI (Chapters 28-38, chemical products);Section VII (Chapters 39-40, plastics and rubber);Section VIII (Chapters 41-43, leather and travel goods);Section IX (Chapters 44-46, wood, charcoal, cork);Section X (Chapters 47-49, wood pulp, paper and paperboard articles);Section XI (Chapters 50-63, textiles and textile products); Section XII (Chapters 64-67, footwear, umbrellas, artificial flowers);Section XIII (Chapters 68-70, stone, cement, ceramic, glass);Section XIV (Chapter 71, pearls, precious metals);Section XV (Chapters 72-83, base metals);Section XVI (Chapters 84-85, electrical machinery);Section XVII (Chapters 86-89, vehicles, aircraft, vessels);Section XVIII (Chapters 90-92, optical instruments, clocks and watches, musical instruments);Section XIX (Chapter 93, arms and ammunition);Section XX (Chapters 94-96, furniture, toys, miscellaneous manufactured articles);Section XXI (Chapter 97, works of art, antiques).
8. Aspects of CalculatingTariffs
9. Classification of Goods Most States: Harmonized System of the WCO H.S. Codes Regularly Revised General Rules for Interpretation Explanatory notes (authentic interpretation)
10. Tariff Rates
11. CustomsValuation See Art. VII GATT and the „AGREEMENT ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994” Different Methods of Calculation: Transaction Value of the actual good Transaction Value of identical goods Transaction Value of similar goods Deductive Value Method Computed Value Method Fall – Back Method
12. Origin of theGoods
13. Tariff Regime in GATT Tariffication -> Elimination of NTBs (XI GATT) Reduction of Tariffs through negotiation Rounds Geneva, Annecy, Torquay, Geneva, Dillon, Kennedy, Tokyo, Uruguay, Doha (47 to 3,9 %) Changing Approaches Product-By-Product -> MFN Linear Reduction Approach -> Different Levels of reduction Harmonization Formula -> differentiated reductions Sector Approach: different formula in different sectors Result Country Schedules Part of the GATT
14. BoundTariffs Upper Ceiling of tariff duties on specific goods (II.1 GATT) Flexible by Renegotiation Rights (XXVIII GATT) After 3 Years With INR countries or member countries having a „principal supplying Interest“ and other „substantial interests“ Goal: to "endeavor to maintain a general level of reciprocal and mutually advantageous concessions not less favorable to trade than that provided for in this agreement prior to such negotiations." If no agreement – unilateral action and countermeasure
15. Other BorderCharges Other duties and charges (II.2 and VII GATT) No ordinary duties Administrative Services, Fees for Statistics, Security Deposits Generally a Standstill: notified in the schedule Exceptions Border Tax adjustment AD and CV Duties Commensurate Service Fees (VII.4 GATT)
16. Freedom of Transit Art. V GATT Traffic in Transit No discrimination MFN treatment No unreasonable charges, regulations and delays
17. Transparency and legal protection Art. X GATT Publication (1) In advance (2) Uniform, impartial and reasonable administration (3 a) Judicial Review (3 b, c)
18. Non-tariffBarriers (NTBs) „Prohibitions and restrictionsotherthanduties, taxes and othercharges“ Legal orfactual Potential forrestrictionsissufficient Quantitative Restrictions Import Licenses Other NTBs Tariffquotas ? Import bans ? Bordermeasures Borderadjustment? Asbestos Case!
19. NTBs
20. ApplicableNorms: General (GATT) General Rules XI.1, XIII GATT VIII GATT forfeesandcharges IX. marksoforigin (see also 22-24 TRIPS) Exceptions XI.2 arespecificexceptions XIX, XX, XXI GATT, XXIV, XXV aregeneralexceptions
21. Principles Prohibition of all NTBs Exceptforart. XI.2 If not justifiedunder XX, XI, XXIV, XXV And not in violation of art XIII (nodiscriminatoryapplication) If not coveredbyspecialrules TBT, SPS, GovernmentProcurement Agreement, Import Licenses Agreement Agriculture: XI:2 and the Agreement on Agriculture
22. Applicable Rules: Specific Specificrules TBT SPS (see XX (b) GATT) GPA 11 Safeguards Agreement (OMAs, VERs etc.) 4.2 Agriculture Agreement Import Licensing Agreement
23. Technical Standards SPS Annex A SPS TBT (art. 1 and Annex 1) Technical Regulation Technical Standard Not coveredbythe SPS (art. 1.5 TBT) General Features Promoting international harmonisation (3.1 SPS, 2.4 TBT) RebuttablePresumption in favor (2.5 TBT, 3.2 SPS Additional obligations (3.3 SPS, 2.4 TBT Notification (2.11 TBT, 7 SPS) Explanation (2.5 TBT, 5.8 SPS) Recognition offoreignstandards Limiteduty (4 SPS, 2.7 TBT)
24. Hierarchy of Norms The MTAs prevailover GATT 1994 (Annex I a tothe WTOA) totheextent of possibleconflicts SPS prevailover TBT (1.5 TBT) Importantbecause of thedifferencebetween 3.3 SPS and 2.4 TBT
25. Divergencefrom international standards - SPS SPS Basis 3.1 Conformity 3.2 Divergence 3.3 RiskAssessment 5 Science andEconomicfactors (5.2 and 3) Actualrisks Actual potential in the real world Particular type ofrisk Quantitative or qualitative assessment Ownorforeignassessment Necessity (5.4 and 5.6) Noarbitraryorunjustifiabledistinctions (5.5.) Preliminaryriskdetermination (5.7)
26. Divergencefrom international standards - TBT Scopeofapplication 1.3 MFN (2.1) Necessity (2.2 and 2.3) Legitimateobjective Harmonization (2.4) Divergenceif international standardsareineffectiveorinappropriate Conformity – RebuttablePresumption (2.5), but onlydutytoconsiderasprincipalconstituentor fundamental principle
27. GPA Plurilateral Agreement (37 andthe EU) Procurementofcentraland sub-centralgovernmententities Exceedingcertainthresholdlimitvalues Annex 5: 5 mio SDR Supplyandservice: 400.000 or 200.000 SDR Exceptions: Security andotherlegitimatepublicconcerns, seeart. XXIII.2 GPA AllowedProcedures Open, non-open, limited Transparency Limited Acceptance Dispute settlement
28. GATS Market Access Rules (XVI) andotherbarriers Freedom toexclude Quantitative restricitions (XVI.2 a-d) Company Law (XVI.2 e) Investment Restrictions (XVI.2 f) Concessions Liberalization in theCommitments (Schedules) (XX) Applicationof MFN (XVI.1) Applicationof NT (XVII)
29. Service Schedule Fourcolums Sector (12 classeswith 150 sub-sectors) andservicemode (art. 1) Terms, limitationandconditions on marketaccess Conditionsandqualifications on national treatment Undertakingsconcerning additional commitments Bound, ConditionallyBound, Unbound Includingintl. Transfers andPaymentsforservices
30. ChangesofCommitments RoundsofNegotiation (XIX) So farsucessful: telecommunications, financialservicesandonlypartlymovementofpersons Doha Round ? Modificationorwithdrawal (XXI GATS) Compensation Arbitration Countermeasures
31. Other tradebarriersforservices Lacking transparency – see art. III Unreasonable, subjective or partisan administration – see art. VI.1 Licensing, qualification requirements and technical standards as nullification or impairment of market access commitments – see art. VI.5 (a) Non – recognition of foreign diplomas and certificates – see art. VII.1 Service monopolies – see art. VIII.1 Restrictive business practices – see art. IX Restraints of international transfers and payments for services – see art. XI Government procurement – see art. XIII.1 and the GPA as a PTA