RESTRICTED
WORLD TRADE WT/GC/W/56
G/C/W/79
ORGANIZATION 14April 1997
(97-1577)
Original: English General Council
Council forTrade inGoods
HS96 CHANGES AND ARTICLE IIOFGATT 1994
Communication from Switzerland
Thefollowing communication dated 11April 1997 isbeing circulated attherequest ofthe
Swiss Delegation inconnection withtheforthcoming meetings oftheCouncil forTrade inGoods
(14April 1997) andtheGeneral Council (24April 1997).
_____________
HS96 changes andArticle IIofGATT 1994
1. Asoftoday, onlytwogoods schedules containing modifications pertaining totheintroduction
ofHS96changes havebeencertified.
2. Following thedecision ontheintroduction ofHSchanges intoWTO schedules oftariff
concessions, individual waivers, foroperational reasons grouped intoonesingle decision, were
grantedtwicetosuspendtheapplicationoftheprovisionsofArticleIIofGATT1994(WT/L/124
+Corr.1 andWT/L/173).
3. By30April 1997 allofthese waivers buttwohavetobegranted forthethirdtime. Some
Members havetobecovered byawaiver, because reservations weremade withregard tothe
transposition oftheir schedules intoHS96 nomenclature. Other Members have technical
difficulties totranspose theirschedules intoHS96 nomenclature.
4. Thepurpose ofthiscommunication istosuggest asolution totheproblem (I)ofgeneral
reservations and(II)ofdelays intransposition.
(I) General Reservations
5. SomeMembershavedevelopedapracticetomakereservationswithinthe90daylimit,however,
without further specifying thesereservations andwithout subsequently entering intonegotiations
under Article XXVIII ofGATT 1994. Some Members havereceived suchgeneral reservations
more thanoneyearago,butnofollow-up -interms ofspecification ofthereservation -has
beenmade since thenbytheMember making thereservation.
6. Bymakingsuchgeneralreservationswithoutfurtherspecifyingtheproblemandwithoutentering
intonegotiations under Article XXVIII ofGATT 1994, thatMember extends defactothe90day
period fortheverification oftheproposed transposition ofschedules oftariff concessions into
HS96 nomenclature foranindefinite period oftime. Thispractice isextremely worrying and
creates unnecessary legaluncertainty. Itseriously putsintoquestion thepredictability ofrights
andobligations ofWTO Members aswellasthecredibility oftheWTO itself. Theissuewas
already discussed intheCommittee onMarket Access forseveral times, however, withoutWT/GC/W/56
G/C/W/79
Page2
success. Inourviewitisnecessary thatthismatter isdiscussed bytheCouncil forTrade in
Goods andtransmitted totheGeneral Council fordecision.
7. Switzerland proposes thefollowing elements foraDecision inorder tofacilitate theprocess
ofintroduction ofHSchanges intoWTO Schedules oftariff concessions:
"TheGeneral Council,
Withregard tothedecision ontheextension ofthetime-limit pertaining totheintroduction
ofHSchangesintoWTOSchedulesoftariffconcessions(WT/L/124+Corr.1andWT/L/173andWT/L/...)
andthedecision of26March 1980 onprocedures formodification andrectification ofSchedules of
tariff concessions (BISD 27S/25),
Having deliberated onsuitable procedures toensure acorrect andspeedy transposition,
Decides that:
a) HSchanges transposed intoWTO Schedules aredeemed tobeverified andwillbe
certified unless reservations aremade byMembers within 90days.
b) Reservations ofageneral nature willbeconsidered tobewithdrawn aftertheyare
clearly specified within [60days] aftertheyhavebeenlodged.
c) Suchspecificationsshallcontainatleastthetarifflineswhosetranspositionisquestioned
aswellasthereasons fortheobjection totheintroduction oftheproposed HSchanges
intoWTO Schedules oftariff concessions and/or theproposed rectification and
modification ofSchedules inorder toallow forconsultations soastoarrive ata
satisfactory solution oftheproblem. "
8. Specifically inthecontext oftheintroduction ofHS96 changes intoWTO Schedules oftariff
concessions, Switzerland proposes thefollowing sentence tobeincluded intotheDecision on
Extension ofTime-Limit (WT/L/...).
"Withregard tothedecision ontheintroduction ofHS96 changes intoWTO Schedules oftariff
concessions (WT/L/...), WTO Schedules aredeemed tobeverified andwillbecertified, as
farastheHS96 transposition isconcerned, ifreservations ofageneral nature arenotspecified
by[31October 1997]. "
(II)Delayed Transposition
9. Withregard toSchedules which havenotyetbeentransposed intoHS96, oreventoprevious
nomenclatures (HS89, HS92), itisproposed thattheSecretariat circulate toallMembers the
waiver applications, including thereasons fordelaying suchtransposition. TheCouncil will
thenbeabletodecide ineachandevery casewhether andforhowlongawaiver willbegranted.
Dueaccount should betaken ofimplementation problems indeveloping country Members.
10. Inthecontext oftheintroduction ofHS96 changes intotheWTO Schedules oftariffconcessions,
Switzerland proposes thefollowing elements tobealsoincluded intotheDecision onExtension
ofTime-Limit (WT/L/...):WT/GC/W/56
G/C/W/79
Page3
a) "Members failing tosubmit detailed explanations ofthereasons preventing themfrom
submitting therequired information orHSdocumentation willnolonger beeligible
forawaiver suspending theapplication ofArticle IIofGATT 1994.
Suchexplanations shall becirculated bytheSecretariat together withtheMember 's
request forawaiver.
b) Dueaccount should betaken ofimplementation problems indeveloping country
Members. "