RESTRICTEDWORLD TRADE
ORGANIZATIONG/IT/SPEC/Q2/11
14 January 2002
(02-0175)
Committee of Participants on the Expansion of Trade in
Information Technology Products
THE NON-TARIFF MEASURES WORK PROGRAMME
Compilation of the Submissions by the Secretariat
At the Committee's meeting of 29 November 2001, it was agreed that the Secretariat would
prepare a factual overview paper, by topic, of the submissions to the Non-Tariff Measures work
programme for the benefit of participants' further analysis.  It was also noted that other studies or
reference materials would be useful to include as a reference.
The paper is divided into three sections, I.) Participants' Submissions, II.) Comments on the
Submissions, and III.) Other relevant papers or stud ies.  The Participants' Submissions were split into
subject categories, and the number of participants that mentioned that type of NTM is indicated in the
heading in parentheses.G/IT/SPEC/Q2/11
Page 2
I. OVERVIEW OF PARTICIPANTS' SUBMISSIONS
Participant Subject Document Brief Summary
A.  CONFORMITY ASSESSMENT AND TESTING/CERTIFICATION (8)
Canada Conformity
Assessment of IT
Products/Compone
nts for EMCG/IT/SPEC
/Q2/1While regulatory standards for EMC are similar and based on
international standards, the situation with respect to conformity
assessment is different among countries.  This creates extra burdens and
costs for traders in having to comply with the various conformityassessment requirements, in particular for EMC which has a low safety
risk.
Australia Lack of Acceptance
of Conformity
Assessment Test
Reports and
CertificationG/IT/SPEC
/Q2/3The lack of acceptance of conformity assessment test reports and
certification between countries/regulators can be considered an NTM;
these include disparity in the level of testing, unreasonable demands for
testing, excessive costs of destructive testing, asymmetrical functioning
of some MRAs, and lack of recognition of industry MRAs bygovernments.  This lack of acceptance causes delays in trade and adds to
its costs.
European Community Conformity
Assessment and
Testing
RequirementsG/IT/SPEC
/Q2/4The NTM is in respect of regulatory conformity assessment procedures
and test requirements that are not proportional to the risks involved,
unnecessary reliance on third party testing and certification, testing
standards not based on international standards, non-acceptance of
foreign test reports and certificates,  and non-acceptance of foreignaccreditation certificates.  These result in increased costs due to
duplicative/multiple testing and certification, prolonged time to market,
uncertainty and unpredictability related to contacting approval
authorities, certification bodies or laboratories in another country.
Hong Kong, China Cumbersome
Conformity
AssessmentProceduresG/IT/SPEC
/Q2/6Many exporters have to complete various conformity assessment
procedures before they can sell the products in that market.  The process
for applying is unduly long and costly.  The NTM results in additionaltrading costs, undue delays, uncertainty for trade, and impedes the
development of e-commerce.G/IT/SPEC/Q2/11
Page 3Participant Subject Document Brief Summary
India Interface Approvals G/IT/SPEC
/Q2/10Most countries do not accept interface approval of Indian Telecom
Engineering Center (TEC) and fresh interface approvals are insisted
upon.  Further, exports can not be cleared from the customs
administration of the importing country unless they are approved by
local Public Telegraph and Telephone (PTT).  In the SAARC region,TEC approvals are accepted.
India Electrical Safety
CertificationsG/IT/SPEC
/Q2/10Each exporter needs to take a "CE certification" from European Bodies
for electrical safety.  There is no Indian agency accredited to do so.  This
adds to the cost of exports.
India EMC/EMI Testing G/IT/SPEC
/Q2/10No agency in India has been accredited for such testing.  There are fully
equipped agencies in India like the Electronic Regional Test
Laboratories (ERTL) and Society for Applied Microwave Electronic
Engineering Research (SAMEER) under the Ministry of Information
Technology, but their certification is not accepted.
India Field Trials for
ApprovalG/IT/SPEC
/Q2/10Sometimes the approved products are required to undergo field trials for
approval, which may take several months involving manpower andmoney.
B.  STANDARDS/REGULATORY ENVIRONMENT (7)
Australia Issues in Standards
DevelopmentG/IT/SPEC
/Q2/3The development, content, and application of some standards, at the
national and international levels, can be considered an NTM.  Forexample, divergent national standards can be used to protect local
industry.  As a result, suppliers may be exposed to a variety of technical
specifications and to unnecessary duplication of testing and compliance
requirements, which add costs that are inevitably passed on to
consumers.G/IT/SPEC/Q2/11
Page 4
Participant Subject Document Brief Summary
Australia Regulatory Issues G/IT/SPEC
/Q2/3Some regulatory procedures can act as market access barriers by causing
unreasonable delay and additional costs to trade.  Regulatory procedures,
particularly type approval regimes, may mean that administrative
processes demand excessive time and cost, which is particularly
important in the case of many IT products, given their short life cycles.The main issues include lack of transparency in government regulation,
multiplicity of bodies with responsibility for administering regulations,
and deficient coordination among regulatory bodies.
European Community Regulatory
Environment and
Level of RegulationG/IT/SPEC
/Q2/4Certain aspects of regulatory systems and requirements should be
considered an NTM when they are not proportionate to risks involved,
are not based or supported by international standards, are not limited to
protecting public imperatives, lay down detailed technical requirements,or hinder innovation.  These lead to costs and delays to the market and
do not additionally protect the public or further consumer interests.
Excessive regulatory requirements can also be seen as leading to
unnecessary regulatory costs and loss in regulatory efficiency.  Further,
the EC provided their experience in forming the single market.
European Community Disparity of
National Standards,Non-use of
International
Standards and Non-
harmonised Radio
Spectrum UseG/IT/SPEC
/Q2/4The NTM includes regulatory standards that go beyond the basic
protection requirements, international standards not used to supportnational regulations, national deviations from international standards,
non-harmonised radio frequency allocations, non-transpositions of
international standards as national standards, lack of transparency,
international standards that offer different or impracticable technical
options, and market access restrictions resulting from "voluntary" but de
facto requirements.  Differing national technical regulations/standards
and frequency allocation lead to increased costs to manufacturers whichmust redesign products, carry out testing and certification against
multiple standards, prolong time to market, and create uncertainty as to
what standards, national deviations etc.. apply.  The EC experience in
this regard was further detailed.G/IT/SPEC/Q2/11
Page 5Participant Subject Document Brief Summary
Hong Kong, China Excessive
Technical
Regulation or
StandardsG/IT/SPEC
/Q2/6In some cases, the technical requirements imposed can be excessive and
well above the actual protection needed (safeguarding health and safety).
The requirements increase the burden on manufacturers and exporters
and become a market access barrier.  These excessive technical
regulations result in additional trading costs and can give a technologicaladvantage to domestic goods.
India Product Standards G/IT/SPEC
/Q2/10The rapid developments and fast changing technology of IT products
may make it difficult to have international standards, so it is important
that product standards such as for electrical safety, spectrum
compatibility, electro-magnetic compatibility (EMC) and
electro-magnetic interface (EMI) be framed and adhered to.
India Establishment,
Adoption, and
Certification ofStandardsG/IT/SPEC
/Q2/10For the establishment, adoption and certification of standards, national
agencies affiliated to international bodies must be appointed in all
developing countries.  Lack of such affiliated agencies acts as a barrierto exports and to development of exportable products in developing
countries.
C.  CUSTOMS PROCEDURES/CERTIFICATE OF ORIGIN (2)
European Community Customs
Procedures and
Related
RequirementsG/IT/SPEC
/Q2/4The NTM includes cumbersome, non-transparent and overly
bureaucratic procedures related to obtaining customs clearance and/or
marketing authorisation (e.g. compliance documents, certificates of
quality, certifications of origin, legalisation of documents, pre-shipment
inspections, import licenses, and local establishment requirements).
This results in increased costs, including indirect costs related to time,
undue delays at the border, and costs related to increased uncertainty and
unpredictability.
Japan Certificate of
OriginG/IT/SPEC
/Q2/7There is substantial time, costs, and undue burdens for exporters to
obtain a certificate of origin.  Generally it is acceptable for customs todemand a certificate of origin on condition that there is a legitimate
policy objective to determine the country of origin of the product, but as
ITA products are duty-free the requirement of a certificate of origin does
not seem to have a meaningful purpose and could be an NTM.G/IT/SPEC/Q2/11
Page 6
Participant Subject Document Brief Summary
D.  IMPORT LICENSING (1)
Canada Import Licensing of
Information
Technology
ProductsG/IT/SPEC
/Q2/2While noting this particular topic has certain provisions as covered
under the WTO Agreement on Import Licensing Procedures, there were
concerns such as  additional costs or delays  associated with the use of
import licenses.  In particular, classification issues, the number of
administrative bodies, lack of transparency, and processing/approval
times have caused delays, increased costs, or impeded trade.
E. RULES OF ORGIN (1)
Mauritius Rules of Origin G/IT/SPEC
/Q2/5Stringent rules of origin requirements constitute a barrier to IT products,
particularly in preferential trade arrangements.  While noting the work
of the Committee on Rules of Origin, it was import to emphasize thatrules of origin act as NTMs for the development of IT industries in
many developing countries.
F.  TRANSPARENCY AND AVAILABILTY OF INFORMATION (1)
Chinese Taipei Information
Regarding
Technical
Regulations on IT
Products Should be
Posted on theInternet to Ensure it
is Readily
AvailableG/IT/SPEC
/Q2/8Since most countries require that IT products meet certain technical
regulations before being allowed to be imported, it is crucial to make
information regarding those regulations readily available.  The lack of
ready access to technical regulation information can become an NTM.
Technical regulations of each country should be readily and easily
available to the business sector, and with the popularity and easy accessof the internet, this is the best way to accomplish this.  A standard
format for this information would be beneficial especially for
comparability.
G.  GOVERNMENT PROCUREMENT (1)
New Zealand Government
Procurement
Practices Which
May Act as a Non-
Tariff Measure inthe IT SectorG/IT/SPEC
/Q2/9Lack of transparency, local content, and buy national requirements cause
government procurement barriers to IT trade.  Government procurement
barriers may impose unnecessary costs to exporters because of such
provisions which often make it necessary to enter in arrangements with
local partners.  Also, typical government procurement barriers include alack of publication of tenders, rules and regulations, arbitrary
requirements for qualifying to bid, irregular “additional payments”G/IT/SPEC/Q2/11
Page 7Participant Subject Document Brief Summary
 expected to obtain tender, sole-source procurements, bid margin
preferences, and requirements for use of local labour, inputs, R&D,
offsets or countertrade.
H.  PROCESS AND PRODUCTION METHODS (1)
India Process and
Production
MethodsG/IT/SPEC
/Q2/10Some countries apply NTMs through the Process and Production
Method related to the product, environmental, emission and process
standards.  Such approvals are very costly and take a much longer time.
I.  VISA/TRAVEL/TAX RESTRICTIONS FOR IT PROFESSIONALS (1)
India On Site Service by
IT ProfessionalsG/IT/SPEC
/Q2/10For software exports, several NTMs hamper the smooth conduct of
trade.  These include restricted visa regimes, not granting visa for
adequate duration, and not granting multiple entry visa.  Travel
documents, social security and taxation requirements add to the cost
even as the short-term nature of the contracts etc.. are not considered.
II. COMMENTS RECEIVED ON THE SUBMISSIONS
A.  ANALYSIS OF THE SUBMISSIONS
Participant Subject Document Brief Summary
Australia Examination of the
Economic and
Development Impact of
Non-tariff Measures on
Trade in ITA Products
and the Benefits which
would Accrue to
Participants fromAddressing their Undue
Trade-distorting EffectsG/IT/SPEC/
Q3/1NTMs cause delays in trade and add to its costs.  There is a direct effect
on manufacturers and exporters, impeding trade, and the delays and
costs also affect consumers, government, business, and non-government
organizations.  While noting that it was not possible to quantify the level
of protection or lost market access, it was noted that the measures either
significantly limited or impeded market access.  The trade impact varied
across different markets and to varying degrees.G/IT/SPEC/Q2/11
Page 8
III. OTHER RELEVANT PAPERS OR STUDIES
Title Source Where
locatedBrief Summary
"Trade in Information
Technology Products and the
WTO Agreements:  Current
Situation and Views of Exportersin Developing Countries"International Trade
CentreInformation
on
ordering:
http://www.intracen.orgChapter 15 of this publication is most relevant providing the field views
from the government and industry, some of which could be considered
NTMs.
"Global Assessment of Standards
Barriers to Trade in the
Information Technology
Industry"U.S. International Trade
Commission, Staff
Research Studyhttp://www.
usitc.gov/w
ais/reports/
arc/w3141.
htmAs tariffs on IT products have been reduced and face elimination in
global markets, non-tariff barriers have emerged as the most important
obstacles to trade for IT producers. Among these, standards-related
barriers to trade have been identified as among the most important and
costly for producers of computer hardware, software, and
telecommunications equipment.  There are significant costs to traders tomeet duplicative and mandatory testing and certification requirements.
"Standards-related Barriers andTrade Liberalisation:
Telecommunications Sector
Study - Interim Report"Organisation for
Economic Co-operation
and Development, Trade
Directorate Working
Paperhttp://www.
olis.oecd.or
g/olis/2001
doc.nsf/link
to/td-tc-
wp(2001)11-rev1This sector specific study examines the potential costs/benefits of
international harmonisation as a means of addressing standards-related
trade barriers in the  area of telecommunications terminal equipment.
The analysis identifies three particular areas that appear to be candidates
for international harmonisation: Electrical Safety, EMC and Avoidance
of Radio Interference.
"An Assessment of the Costs forInternational Trade in Meeting
Regulatory Requirements"Organisation for
Economic Co-operation
and Development, Trade
Directorate Working
Paperhttp://www.
olis.oecd.or
g/olis/1999
doc.nsf/link
to/td-tc-
wp(99)8-finalThis study examines the costs of compliance for product standards,
conformity assessment, and the ability to export.  There is a product-
specific section for telecommunication terminal equipment.G/IT/SPEC/Q2/11
Page 9Title Source Where
locatedBrief Summary
"Potential for International  Co-
operation and Reduction of
Trade Barriers arising from
Technical Requirements and
Conformity AssessmentProcedures in the
Telecommunications Sector"GTW Associates (on
request of OECD)http://www.
gtwassociat
es.com/aler
ts/Feb6OE
CD.pdfGTW Associates prepared this report at the request of the OECD to
examine the potential for international co-operation and reduction of
trade barriers arising from technical requirements and conformity
assessment procedures in technical regulations for telecommunications
terminal equipment.  It furthermore looks into the costs and benefits ofharmonizing technical regulations.
" National Conformity
Assessment Schemes:
Non-tariff Trade Barriers in
Information Technology "CSIS Publications
(Center for Strategic and
International Studies)Information
on
ordering:
http://www.
csis.org/pubs/ITtrade_
wbgexec.ht
mlIndividual national systems of conformity assessment currently in use
regulate and restrict the entry of information technology products into
many national markets. A change to a global approach for conformity
assessment is necessary, and this change should be implemented through
a best-practices approach, benchmarking, and use of a global frameworkof principles.
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