RESTRICTED
WORLD TRADE G/RO/W/31
8May1998
ORGANIZATION(98-1836)
Committee onRules ofOrigin
PROVISIONS RELATING TORULES OFORIGIN
INTHE WTO AGREEMENTS
Note bytheSecretariat
Asagreed attheinformal meeting oftheCommittee onRules ofOrigin on22April 1998,
inconnectionwiththeproposalbyIndiacirculatedindocumentG/RO/W/28,theSecretariathascompiled
theattached document containing provisions relating torules oforigin intheWTO Agreements.G/RO/W/31
Page2
PROVISIONS RELATING TORULES OFORIGIN
INTHE WTO AGREEMENTS
1. AGREEMENT ONRULES OFORIGIN
Article 1
Rules ofOrigin
1. Forthepurposes ofParts ItoIVofthisAgreement, rulesoforigin shallbedefined asthose
laws, regulations andadministrative determinations ofgeneral application applied byanyMember to
determine thecountry oforigin ofgoods provided suchrules oforigin arenotrelated tocontractual
orautonomous traderegimes leading tothegranting oftariffpreferences going beyond theapplication
ofparagraph 1ofArticle IofGATT 1994.
2. Rules oforigin referred toinparagraph 1shallinclude allrulesoforigin usedinnon-preferential
commercial policy instruments, suchasintheapplication of:most-favoured-nation treatment under
Articles I,II,III,XIandXIIIofGATT 1994; anti-dumping andcountervailing duties under Article VI
ofGATT 1994; safeguard measures under Article XIXofGATT 1994; origin marking requirements
under Article IXofGATT 1994; andanydiscriminatory quantitative restrictions ortariff quotas.
They shallalsoinclude rules oforigin usedforgovernment procurement andtrade statistics.1
2. AGREEMENT ONTEXTILES AND CLOTHING
Article 4
2. Members agree thattheintroduction ofchanges, suchaschanges inpractices, rules, procedures
andcategorization oftextile andclothing products, including those changes relating totheHarmonized
System, intheimplementation oradministration ofthose restrictions notified orapplied under this
Agreement should not:upset thebalance ofrights andobligations between theMembers concerned
under thisAgreement; adversely affect theaccess available toaMember; impede thefullutilization
ofsuchaccess; ordisrupt trade under thisAgreement.
4. When changes mentioned inparagraphs 2and3arenecessary, however, Members agree that
theMember initiating suchchanges shallinform and,wherever possible, initiate consultations with
theaffected Member orMembers priortotheimplementation ofsuchchanges, withaviewtoreaching
amutually acceptable solution regarding appropriate andequitable adjustment. Members further agree
thatwhere consultation prior toimplementation isnotfeasible, theMember initiating suchchanges
will,attherequest oftheaffected Member, consult, within 60daysifpossible, withtheMembers
concerned withaviewtoreaching amutually satisfactory solution regarding appropriate andequitable
adjustments. Ifamutually satisfactory solution isnotreached, anyMember involved mayreferthe
matter totheTMB forrecommendations asprovided inArticle 8.Should theTSBnothavehadthe
opportunity toreview adispute concerning suchchanges introduced prior totheentry intoforce of
theWTO Agreement, itshallbereviewed bytheTMB inaccordance withtherules andprocedures
oftheMFA applicable forsuchareview.
1Itisunderstood thatthisprovision iswithout prejudice tothose determinations made forpurposes ofdefining "domestic
industry" or"like products ofdomestic industry" orsimilar terms wherever theyapply.G/RO/W/31
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3. AGREEMENT ONTECHNICAL BARRIERS TOTRADE
Article 2
Preparation, Adoption andApplication ofTechnical Regulations
byCentral Government Bodies
With respect totheircentral government bodies:
2.1 Membersshallensurethatinrespectoftechnicalregulations,productsimportedfromtheterritory
ofanyMember shallbeaccorded treatment nolessfavourable thanthataccorded tolikeproducts of
national origin andtolikeproducts originating inanyother country.
ANNEX 1
TERMS AND THEIR DEFINITIONS FOR THE
PURPOSE OFTHIS AGREEMENT
Theterms presented inthesixthedition oftheISO/IEC Guide 2:1991, General Terms and
TheirDefinitionsConcerningStandardizationandRelatedActivities,shall,whenusedinthisAgreement,
havethesame meaning asgiven inthedefinitions inthesaidGuide taking intoaccount thatservices
areexcluded from thecoverage ofthisAgreement.
Forthepurpose ofthisAgreement, however, thefollowing definitions shallapply:
1. Technical regulation
Document which laysdown product characteristics ortheirrelated processes andproduction
methods, including theapplicable administrative provisions, withwhich compliance ismandatory.
Itmayalsoinclude ordealexclusively withterminology, symbols, packaging, marking orlabelling
requirements astheyapply toaproduct, process orproduction method.
Explanatory note
Thedefinition inISO/IEC Guide 2isnotself-contained, butbased ontheso-called "building
block" system.
2. Standard
Document approved byarecognized body, thatprovides, forcommon andrepeated use,rules,
guidelines orcharacteristics forproducts orrelated processes andproduction methods, withwhich
compliance isnotmandatory. Itmayalsoinclude ordealexclusively withterminology, symbols,
packaging, marking orlabelling requirements astheyapply toaproduct, process orproduction method.
Explanatory note
Theterms asdefined inISO/IEC Guide 2cover products, processes andservices. This
Agreementdealsonlywithtechnicalregulations,standardsandconformityassessmentprocedures
related toproducts orprocesses andproduction methods. Standards asdefined byISO/IEC
Guide 2maybemandatory orvoluntary. Forthepurpose ofthisAgreement standards areG/RO/W/31
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defined asvoluntary andtechnical regulations asmandatory documents. Standards prepared
bytheinternational standardization community arebased onconsensus. ThisAgreement covers
alsodocuments thatarenotbased onconsensus.
4. AGREEMENT ONIMPLEMENTATION OFARTICLE VIOFTHE GENERAL
AGREEMENT ONTARIFFS AND TRADE 1994
Article 2
Determination ofDumping
2.2 When there arenosales ofthelikeproduct intheordinary course oftrade inthedomestic
market oftheexporting country orwhen, because oftheparticular market situation orthelowvolume
ofthesales inthedomestic market oftheexporting country2,suchsales donotpermit aproper
comparison, themargin ofdumping shallbedetermined bycomparison withacomparable price of
thelikeproduct when exported toanappropriate thirdcountry, provided thatthispriceisrepresentative,
orwiththecostofproduction inthecountry oforigin plusareasonable amount foradministrative,
selling andgeneral costs andforprofits.
2.2.2 Forthepurpose ofparagraph 2,theamounts foradministrative, selling andgeneral costsand
forprofits shallbebased onactual datapertaining toproduction andsalesintheordinary course
oftradeofthelikeproduct bytheexporter orproducer under investigation. When suchamounts
cannot bedetermined onthisbasis, theamounts maybedetermined onthebasis of:
(i) theactual amounts incurred andrealized bytheexporter orproducer inquestion in
respect ofproduction andsalesinthedomestic market ofthecountry oforigin ofthe
same general category ofproducts;
(ii) theweighted average oftheactual amounts incurred andrealized byother exporters
orproducers subject toinvestigation inrespect ofproduction andsales ofthelike
product inthedomestic market ofthecountry oforigin ;
(iii) anyother reasonable method, provided thattheamount forprofit soestablished shall
notexceed theprofit normally realized byother exporters orproducers onsales of
products ofthesamegeneral category inthedomestic market ofthecountry oforigin .
2.5 Inthecasewhere products arenotimported directly fromthecountry oforigin butareexported
totheimporting Member fromanintermediate country, thepriceatwhich theproducts aresoldfrom
thecountry ofexport totheimporting Member shallnormally becompared withthecomparable price
inthecountry ofexport. However, comparison maybemade withtheprice inthecountry oforigin ,
if,forexample, theproducts aremerely transshipped through thecountry ofexport, orsuchproducts
arenotproduced inthecountry ofexport, orthere isnocomparable price forthem inthecountry
ofexport.
2Sales ofthelikeproduct destined forconsumption inthedomestic market oftheexporting country shallnormally be
considered asufficient quantity forthedetermination ofthenormal value ifsuchsales constitute 5percentormore ofthe
sales oftheproduct under consideration totheimporting Member, provided thatalower ratioshould beacceptable where
theevidence demonstrates thatdomestic sales atsuchlower ratioarenonetheless ofsufficient magnitude toprovide fora
proper comparison.G/RO/W/31
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Article 5
Initiation andsubsequent Investigation
5.2 (i) theidentity oftheapplicant andadescription ofthevolume andvalue ofthedomestic
production ofthelikeproduct bytheapplicant. Where awritten application ismade
onbehalf ofthedomestic industry, theapplication shallidentify theindustry onbehalf
ofwhich theapplication ismade byalistofallknown domestic producers ofthelike
product (orassociations ofdomestic producers ofthelikeproduct) and,totheextent
possible, adescription ofthevolume andvalue ofdomestic production ofthelike
product accounted forbysuchproducers;
(ii) acomplete description oftheallegedly dumped product, thenames ofthecountry or
countries oforigin orexport inquestion, theidentity ofeachknown exporter orforeign
producer andalistofknown persons importing theproduct inquestion;
(iii) information onprices atwhich theproduct inquestion issoldwhen destined for
consumption inthedomestic markets ofthecountry orcountries oforigin orexport
(or,where appropriate, information ontheprices atwhich theproduct issoldfrom
thecountry orcountries oforigin orexport toathirdcountry orcountries, oronthe
constructedvalueoftheproduct)andinformationonexportpricesor,whereappropriate,
ontheprices atwhich theproduct isfirstresold toanindependent buyer intheterritory
oftheimporting Member;
5. AGREEMENT ONSUBSIDIES AND COUNTERVAILING MEASURES
Article 11
Initiation andSubsequent Investigation
11.2 Anapplication under paragraph 1shallinclude sufficient evidence oftheexistence of(a)a
subsidy and,ifpossible, itsamount, (b)injury within themeaning ofArticle VIofGATT 1994 as
interpreted bythisAgreement, and(c)acausal linkbetween thesubsidized imports andthealleged
injury. Simple assertion, unsubstantiated byrelevant evidence, cannot beconsidered sufficient tomeet
therequirements ofthisparagraph. Theapplication shallcontain suchinformation asisreasonably
available totheapplicant onthefollowing:
(i) theidentity oftheapplicant andadescription ofthevolume andvalue ofthedomestic production
ofthelikeproduct bytheapplicant. Where awritten application ismade onbehalf ofthe
domestic industry, theapplication shallidentify theindustry onbehalf ofwhich theapplication
ismade byalistofallknown domestic producers ofthelikeproduct (orassociations ofdomestic
producers ofthelikeproduct) and,totheextent possible, adescription ofthevolume andvalue
ofdomestic production ofthelikeproduct accounted forbysuchproducers;
(ii) acomplete description oftheallegedly subsidized product, thenames ofthecountry orcountries
oforigin orexport inquestion, theidentity ofeachknown exporter orforeign producer and
alistofknown persons importing theproduct inquestion;
11.8 Incases where products arenotimported directly fromthecountry oforigin butareexported
totheimporting Member fromanintermediate country, theprovisions ofthisAgreement shallbefullyG/RO/W/31
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applicable andthetransaction ortransactions shall, forthepurposes ofthisAgreement, beregarded
ashaving taken place between thecountry oforigin andtheimporting Member.
Article 27
Special andDifferential Treatment ofDeveloping Country Members
27.10 Anycountervailing dutyinvestigation ofaproduct originating inadeveloping country Member
shallbeterminated assoonastheauthorities concerned determine that:
(a) theoverall levelofsubsidies granted upontheproduct inquestion doesnotexceed 2percent
ofitsvalue calculated onaperunitbasis; or
(b) thevolume ofthesubsidized imports represents lessthan4percentofthetotalimports of
thelikeproduct intheimporting Member, unless imports fromdeveloping country Members
whose individual shares oftotalimports represent lessthan4percentcollectively account for
more than9percentofthetotalimports ofthelikeproduct intheimporting Member.
6. AGREEMENT ONSAFEGUARDS
Article 2
Conditions
2. Safeguard measures shallbeapplied toaproduct being imported irrespective ofitssource.
Article 5
Application ofSafeguard Measures
2. (a) Incases inwhich aquota isallocated among supplying countries, theMember applying
therestrictions mayseekagreement withrespect totheallocation ofshares inthequota withallother
Members having asubstantial interest insupplying theproduct concerned. Incasesinwhich thismethod
isnotreasonably practicable, theMember concerned shallallottoMembers having asubstantial interest
insupplying theproduct shares based upontheproportions, supplied bysuchMembers during aprevious
representative period, ofthetotalquantity orvalue ofimports oftheproduct, dueaccount being taken
ofanyspecial factors which mayhaveaffected ormaybeaffecting thetrade intheproduct.
Article 9
Developing Country Members
1. Safeguard measures shallnotbeapplied against aproduct originating inadeveloping country
Member aslongasitsshare ofimports oftheproduct concerned intheimporting Member doesnotG/RO/W/31
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exceed 3percent,provided thatdeveloping country Members withlessthan3percentimport share
collectively account fornotmore than9percentoftotalimports oftheproduct concerned.3
7. AGREEMENT ONGOVERNMENT PROCUREMENT
Article IV
Rules ofOrigin
1. AParty shallnotapply rulesoforigin toproducts orservices imported orsupplied forpurposes
ofgovernment procurement covered bythisAgreement fromother Parties, which aredifferent from
therules oforigin applied inthenormal course oftrade andatthetimeofthetransaction inquestion
toimports orsupplies ofthesame products orservices from thesame Parties.
2. Following theconclusion ofthework programme fortheharmonization ofrules oforigin
forgoods tobeundertaken under theAgreement onRules ofOrigin inAnnex 1AoftheAgreement
Establishing theWorld Trade Organization (hereinafter referred toas"WTO Agreement") and
negotiations regarding tradeinservices, Parties shalltaketheresults ofthatwork programme andthose
negotiations intoaccount inamending paragraph 1asappropriate.
Article XIX
Information andReview asRegards Obligations ofParties
5. Each Party shall collect andprovide totheCommittee onanannual basis statistics onits
procurements covered bythisAgreement. Suchreports shallcontain thefollowing information with
respect tocontracts awarded byallprocurement entities covered under thisAgreement:
(a) forentities inAnnex 1,statistics ontheestimated value ofcontracts awarded, bothabove and
below thethreshold value, onaglobal basis andbroken down byentities; forentities in
Annexes 2and3,statistics ontheestimated value ofcontracts awarded above thethreshold
value onaglobal basis andbroken down bycategories ofentities;
(b) forentities inAnnex 1,statistics onthenumber andtotalvalue ofcontracts awarded above
thethreshold value, broken down byentities andcategories ofproducts andservices according
touniform classification systems; forentities inAnnexes 2and3,statistics ontheestimated
value ofcontracts awarded above thethreshold value broken down bycategories ofentities
andcategories ofproducts andservices;
(c) forentities inAnnex 1,statistics, broken down byentity andbycategories ofproducts and
services, onthenumber andtotalvalue ofcontracts awarded under eachofthecases of
Article XV; forcategories ofentities inAnnexes 2and3,statistics onthetotalvalue of
contracts awarded above thethreshold value under eachofthecases ofArticle XV; and
(d) forentities inAnnex 1,statistics, broken down byentities, onthenumber andtotalvalue of
contracts awarded under derogations totheAgreement contained intherelevant Annexes;
3AMember shall immediately notify anaction taken under paragraph 1ofArticle 9totheCommittee onSafeguards.G/RO/W/31
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forcategories ofentities inAnnexes 2and3,statistics onthetotalvalue ofcontracts awarded
under derogations totheAgreement contained intherelevant Annexes.
Totheextent thatsuchinformation isavailable, eachParty shallprovide statistics onthecountry
oforigin ofproducts andservices purchased byitsentities. Withaviewtoensuring thatsuchstatistics
arecomparable, theCommittee shallprovide guidance onmethods tobeused. Withaviewtoensuring
effectivemonitoringofprocurementcoveredbythisAgreement,theCommitteemaydecideunanimously
tomodify therequirements ofsubparagraphs (a)through (d)asregards thenature andtheextent of
statistical information tobeprovided andthebreakdowns andclassifications tobeused.4
8. GENERAL AGREEMENT ONTARIFFS AND TRADE 1994
Article I
General Most-Favoured-Nation Treatment
1. With respect tocustoms duties andcharges ofanykindimposed onorinconnection with
importation orexportation orimposed ontheinternational transfer ofpayments forimports orexports,
andwithrespect tothemethod oflevying suchduties andcharges, andwithrespect toallrules and
formalities inconnection withimportation andexportation, andwithrespect toallmatters referred
toinparagraphs 2and4ofArticle III,anyadvantage, favour, privilege orimmunity granted byany
contracting party toanyproduct originating inordestined foranyother country shallbeaccorded
immediately andunconditionally tothelikeproduct originating inordestined fortheterritories of
allother contracting parties.
Article II
Schedules ofConcessions
1. (a) Each contracting party shallaccord tothecommerce oftheother contracting parties
treatment nolessfavourable thanthatprovided forintheappropriate Partoftheappropriate Schedule
annexed tothisAgreement.
4Seealsodocument GPA/8, paras. 17and18,which readasfollows:
"Statistical Reporting
17. Article XIX:5 requires Parties tocollect andprovide onanannual basis statistics ontheirprocurements
covered bytheAgreement. With aview toensuring thatsuchstatistics arecomparable, Article XIX:5 requires
theCommittee toprovide guidance onthemethods tobeused. TheInterim Committee established aWorking
Group onStatistical Reporting topropose guidelines formeeting thestatistical reporting requirements ofArticle
XIX:5, inparticular inrespect oftheadoption ofuniform classification systems andmethods tobeusedforproviding
statistics onthecountry oforigin ofproducts andservices.
18. Based onthereport ofthisWorking Group (GPA/IC/8), theCommittee agreed, atitsfirstmeeting on
27February 1996, thattherules oforigin ofproducts usedforthepurposes ofstatistical reporting inArticle XIX:5
oftheAgreement should bethesame asthose applied under Article IV,which werethose usedinthenormal course
oftrade. Asfortherequirement toreport statistics ontheorigin ofservices, theCommittee postponed application
ofthisrequirement untilpracticable rules fordetermining theorigin ofservices hadbeendefined. Atitsmeeting
on4June1996, theCommittee adopted classification systems forgoods andservices tobeusedinstatistical reporting
under theAgreement (GPA/4). Some Parties asserted thattheobjective ofestablishing statistics, i.e.toprovide
information andenable review asregards obligations ofParties, might bemore appropriately metthrough alternative
means."G/RO/W/31
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(b) Theproducts described inPartIoftheSchedule relating toanycontracting party, which
aretheproducts ofterritories ofother contracting parties, shall, ontheirimportation intotheterritory
towhich theSchedule relates, andsubject totheterms, conditions orqualifications setforth inthat
Schedule, beexempt from ordinary customs duties inexcess ofthose setforth andprovided therein.
Such products shallalsobeexempt from allother duties orcharges ofanykindimposed onorin
connection withtheimportation inexcess ofthose imposed onthedateofthisAgreement orthose
directly andmandatorily required tobeimposed thereafter bylegislation inforce intheimporting
territory onthatdate.
(c) Theproducts described inPartIIoftheSchedule relating toanycontracting partywhich
aretheproducts ofterritories entitled under Article Itoreceive preferential treatment uponimportation
intotheterritory towhich theSchedule relates shall, ontheirimportation intosuchterritory, andsubject
totheterms, conditions orqualifications setforthinthatSchedule, beexempt fromordinary customs
duties inexcess ofthose setforth andprovided forinPartIIofthatSchedule. Such products shall
alsobeexempt fromallotherduties orcharges ofanykindimposed onorinconnection withimportation
inexcess ofthose imposed onthedateofthisAgreement orthose directly ormandatorily required
tobeimposed thereafter bylegislation inforce intheimporting territory onthatdate.Nothing inthis
Article shallprevent anycontracting party from maintaining itsrequirements existing onthedateof
thisAgreement astotheeligibility ofgoods forentry atpreferential ratesofduty.
Article III
National Treatment onInternal Taxation andRegulation
1. Thecontracting parties recognize thatinternal taxes andother internal charges, andlaws,
regulations andrequirements affecting theinternal sale,offering forsale,purchase, transportation,
distribution oruseofproducts, andinternal quantitative regulations requiring themixture, processing
oruseofproducts inspecified amounts orproportions, should notbeapplied toimported ordomestic
products soastoafford protection todomestic production.
2. Theproducts oftheterritory ofanycontracting party imported intotheterritory ofanyother
contracting party shallnotbesubject, directly orindirectly, tointernal taxes orother internal charges
ofanykindinexcess ofthose applied, directly orindirectly, tolikedomestic products. Moreover,
nocontractingpartyshallotherwiseapplyinternaltaxesorotherinternalchargestoimportedordomestic
products inamanner contrary totheprinciples setforth inparagraph 1.
4. Theproducts oftheterritory ofanycontracting party imported intotheterritory ofanyother
contracting party shallbeaccorded treatment nolessfavourable thanthataccorded tolikeproducts
ofnationalorigininrespectofalllaws,regulationsandrequirementsaffectingtheirinternalsale,offering
forsale,purchase, transportation, distribution oruse.Theprovisions ofthisparagraph shallnotprevent
theapplicationofdifferentialinternaltransportationchargeswhicharebasedexclusivelyontheeconomic
operation ofthemeans oftransport andnotonthenationality oftheproduct.
5. Nocontracting party shallestablish ormaintain anyinternal quantitative regulation relating
tothemixture, processing oruseofproducts inspecified amounts orproportions which requires, directly
orindirectly,thatanyspecifiedamountorproportionofanyproductwhichisthesubjectoftheregulation
mustbesupplied fromdomestic sources. Moreover, nocontracting party shallotherwise apply internal
quantitative regulations inamanner contrary totheprinciples setforth inparagraph 1.G/RO/W/31
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Article IV
Special Provisions relating toCinematograph Films
Ifanycontracting party establishes ormaintains internal quantitative regulations relating to
exposed cinematograph films, suchregulations shalltaketheformofscreen quotas which shallconform
tothefollowing requirements:
(a) Screen quotas mayrequire theexhibition ofcinematograph films ofnational origin during a
specified minimum proportion ofthetotalscreen timeactually utilized, overaspecified period
ofnotlessthanoneyear, inthecommercial exhibition ofallfilms ofwhatever origin ,and
shallbecomputed onthebasis ofscreen timepertheatre peryearortheequivalent thereof;
(b) Withtheexception ofscreen timereserved forfilms ofnational origin under ascreen quota,
screen timeincluding thatreleased byadministrative action fromscreen timereserved forfilms
ofnational origin ,shallnotbeallocated formally orineffect among sources ofsupply;
(c) Notwithstanding theprovisions ofsub-paragraph (b)ofthisArticle, anycontracting party may
maintain screen quotas conforming totherequirements ofsub-paragraph (a)ofthisArticle
which reserve aminimum proportion ofscreen timeforfilms ofaspecified origin other than
thatofthecontracting party imposing suchscreen quotas; Provided thatnosuchminimum
proportion ofscreen timeshallbeincreased above thelevelineffect onApril 10,1947;
(d) Screen quotas shallbesubject tonegotiation fortheirlimitation, liberalization orelimination.
Article V
Freedom ofTransit
2. There shallbefreedom oftransit through theterritory ofeachcontracting party, viatheroutes
mostconvenient forinternational transit, fortraffic intransit toorfromtheterritory ofothercontracting
parties. Nodistinction shallbemade which isbased ontheflagofvessels, theplaceoforigin ,departure,
entry, exitordestination, oronanycircumstances relating totheownership ofgoods, ofvessels or
ofother means oftransport.
6. Eachcontracting party shallaccord toproducts which havebeenintransit through theterritory
ofanyother contracting party treatment nolessfavourable thanthatwhich would havebeenaccorded
tosuchproducts hadtheybeentransported fromtheirplace oforigin totheirdestination without going
through theterritory ofsuchother contracting party. Anycontracting party shall, however, befree
tomaintain itsrequirements ofdirect consignment existing onthedateofthisAgreement, inrespect
ofanygoods inregard towhich suchdirect consignment isarequisite condition ofeligibility forentry
ofthegoods atpreferential ratesofdutyorhasrelation tothecontracting party'sprescribed method
ofvaluation fordutypurposes.
Article VI
Anti-dumping andCountervailing Duties
1. Thecontractingpartiesrecognizethatdumping,bywhichproductsofonecountryareintroduced
intothecommerce ofanother country atlessthanthenormal value oftheproducts, istobecondemned
ifitcauses orthreatens material injury toanestablished industry intheterritory ofacontracting party
ormaterially retards theestablishment ofadomestic industry. Forthepurposes ofthisArticle, aproductG/RO/W/31
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istobeconsidered asbeing introduced intothecommerce ofanimporting country atlessthanitsnormal
value, iftheprice oftheproduct exported from onecountry toanother
(a) islessthanthecomparable price, intheordinary course oftrade, forthelikeproduct when
destined forconsumption intheexporting country, or,
(b) intheabsence ofsuchdomestic price, islessthaneither
(i) thehighest comparable price forthelikeproduct forexport toanythird country in
theordinary course oftrade, or
(ii) thecostofproduction oftheproduct inthecountry oforigin plusareasonable addition
forselling costandprofit.
Dueallowance shallbemade ineachcasefordifferences inconditions andterms ofsale,fordifferences
intaxation, andforother differences affecting price comparability.
3. Nocountervailing dutyshallbelevied onanyproduct oftheterritory ofanycontracting party
imported intotheterritory ofanother contracting party inexcess ofanamount equal totheestimated
bountyorsubsidydeterminedtohavebeengranted,directlyorindirectly,onthemanufacture,production
orexport ofsuchproduct inthecountry oforigin orexportation, including anyspecial subsidy tothe
transportation ofaparticular product. Theterm"countervailing duty" shallbeunderstood tomean
aspecial dutylevied forthepurpose ofoffsetting anybounty orsubsidy bestowed, directly, orindirectly,
upon themanufacture, production orexport ofanymerchandise.
4. Noproduct oftheterritory ofanycontracting party imported intotheterritory ofanyother
contracting party shallbesubject toanti-dumping orcountervailing dutybyreason oftheexemption
ofsuchproduct fromduties ortaxes borne bythelikeproduct when destined forconsumption inthe
country oforigin orexportation, orbyreason oftherefund ofsuchduties ortaxes.
5. Noproduct oftheterritory ofanycontracting party imported intotheterritory ofanyother
contracting party shallbesubject tobothanti-dumping andcountervailing duties tocompensate for
thesame situation ofdumping orexport subsidization.
6. (a) Nocontracting party shall levyanyanti-dumping orcountervailing dutyonthe
importation ofanyproduct oftheterritory ofanother contracting party unless itdetermines thatthe
effect ofthedumping orsubsidization, asthecasemaybe,issuchastocause orthreaten material
injury toanestablished domestic industry, orissuchastoretard materially theestablishment ofa
domestic industry.
(b) TheCONTRACTINGPARTIESmaywaivetherequirementofsub-paragraph(a)ofthisparagraph
soastopermit acontracting party tolevyananti-dumping orcountervailing dutyontheimportation
ofanyproduct forthepurpose ofoffsetting dumping orsubsidization which causes orthreatens material
injury toanindustry intheterritory ofanother contracting party exporting theproduct concerned to
theterritoryoftheimportingcontractingparty.TheCONTRACTING PARTIES shallwaivetherequirements
ofsub-paragraph (a)ofthisparagraph, soastopermit thelevying ofacountervailing duty, incases
inwhich theyfindthatasubsidy iscausing orthreatening material injury toanindustry intheterritory
ofanother contracting partyexporting theproduct concerned totheterritory oftheimporting contracting
party.
(c) Inexceptional circumstances, however, where delay might cause damage which would
bedifficult torepair, acontracting party maylevyacountervailing dutyforthepurpose referred toG/RO/W/31
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insub-paragraph(b)ofthisparagraphwithoutthepriorapprovaloftheCONTRACTINGPARTIES;Provided
thatsuchaction shallbereported immediately totheCONTRACTING PARTIES andthatthecountervailing
dutyshallbewithdrawn promptly iftheCONTRACTING PARTIES disapprove.
Article IX
Marks ofOrigin
1. Eachcontracting party shallaccord totheproducts oftheterritories ofother contracting parties
treatment withregard tomarking requirements nolessfavourable thanthetreatment accorded tolike
products ofanythirdcountry.
2. Thecontracting parties recognize that,inadopting andenforcing lawsandregulations relating
tomarks oforigin, thedifficulties andinconveniences which suchmeasures maycause tothecommerce
andindustry ofexporting countries should bereduced toaminimum, dueregard being hadtothe
necessity ofprotecting consumers against fraudulent ormisleading indications.
3. Whenever itisadministratively practicable todoso,contracting parties should permit required
marks oforigin tobeaffixed atthetimeofimportation.
4. Thelawsandregulations ofcontracting parties relating tothemarking ofimported products
shallbesuchastopermit compliance without seriously damaging theproducts, ormaterially reducing
theirvalue, orunreasonably increasing theircost.
5. Asageneral rule,nospecial dutyorpenalty should beimposed byanycontracting party for
failure tocomply with marking requirements prior toimportation unless corrective marking is
unreasonablydelayedordeceptivemarkshavebeenaffixedortherequiredmarkinghasbeenintentionally
omitted.
6. Thecontracting parties shallco-operate witheachother withaviewtopreventing theuseof
trade names insuchmanner astomisrepresent thetrueorigin ofaproduct, tothedetriment ofsuch
distinctive regional orgeographical names ofproducts oftheterritory ofacontracting party asare
protected byitslegislation. Each contracting party shallaccord fullandsympathetic consideration to
suchrequests orrepresentations asmaybemade byanyothercontracting partyregarding theapplication
oftheundertaking setforth inthepreceding sentence tonames ofproducts which have been
communicated toitbytheother contracting party.
Article XI
General Elimination ofQuantitative Restrictions
1. Noprohibitions orrestrictions otherthanduties, taxesorothercharges, whether made effective
through quotas, import orexport licences orother measures, shallbeinstituted ormaintained byany
contracting party ontheimportation ofanyproduct oftheterritory ofanyother contracting party or
ontheexportation orsaleforexport ofanyproduct destined fortheterritory ofanyother contracting
party.G/RO/W/31
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Article XIII
Non-discriminatory Administration ofQuantitative Restrictions
1. Noprohibition orrestriction shallbeapplied byanycontracting party ontheimportation of
anyproduct oftheterritory ofanyother contracting party orontheexportation ofanyproduct destined
fortheterritory ofanyother contracting party, unless theimportation ofthelikeproduct ofallthird
countries ortheexportation ofthelikeproduct toallthirdcountries issimilarly prohibited orrestricted.
2. Inapplying import restrictions toanyproduct, contracting parties shallaimatadistribution
oftrade insuchproduct approaching asclosely aspossible theshares which thevarious contracting
parties might beexpected toobtain intheabsence ofsuchrestrictions andtothisendshallobserve
thefollowing provisions:
(a) Wherever practicable, quotas representing thetotalamount ofpermitted imports (whether
allocated among supplying countries ornot)shallbefixed, andnotice given oftheiramount
inaccordance withparagraph 3(b)ofthisArticle;
(b) Incases inwhich quotas arenotpracticable, therestrictions maybeapplied bymeans ofimport
licences orpermits without aquota;
(c) Contracting parties shallnot,except forpurposes ofoperating quotas allocated inaccordance
withsub-paragraph (d)ofthisparagraph, require thatimport licences orpermits beutilized
fortheimportation oftheproduct concerned from aparticular country orsource;
(d) Incases inwhich aquota isallocated among supplying countries thecontracting party applying
therestrictions mayseekagreement withrespect totheallocation ofshares inthequota with
allother contracting parties having asubstantial interest insupplying theproduct concerned.
Incases inwhich thismethod isnotreasonably practicable, thecontracting party concerned
shallallottocontracting parties having asubstantial interest insupplying theproduct shares
basedupontheproportions,suppliedbysuchcontractingpartiesduringapreviousrepresentative
period, ofthetotalquantity orvalue ofimports oftheproduct, dueaccount being taken of
anyspecial factors which mayhaveaffected ormaybeaffecting thetrade intheproduct. No
conditions orformalities shallbeimposed which would prevent anycontracting party from
utilizing fullytheshare ofanysuchtotalquantity orvalue which hasbeenallotted toit,subject
toimportation being made within anyprescribed period towhich thequota mayrelate.*
3. (a) Incases inwhich import licences areissued inconnection withimport restrictions,
thecontracting party applying therestrictions shallprovide, upontherequest ofanycontracting party
having aninterest inthetrade intheproduct concerned, allrelevant information concerning the
administration oftherestrictions, theimport licences granted overarecent period andthedistribution
ofsuchlicences among supplying countries; Provided thatthere shall benoobligation tosupply
information astothenames ofimporting orsupplying enterprises.
(b) Inthecaseofimport restrictions involving thefixing ofquotas, thecontracting party
applying therestrictions shallgivepublic notice ofthetotalquantity orvalue oftheproduct orproducts
which willbepermitted tobeimported during aspecified future period andofanychange insuch
quantity orvalue. Anysupplies oftheproduct inquestion which were enroute atthetimeatwhich
public notice wasgiven shallnotbeexcluded from entry; Provided thattheymaybecounted sofar
aspracticable, against thequantity permitted tobeimported intheperiod inquestion, andalso,where
necessary, against thequantities permitted tobeimported inthenextfollowing period orperiods; and
ProvidedfurtherthatifanycontractingpartycustomarilyexemptsfromsuchrestrictionsproductsenteredG/RO/W/31
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forconsumption orwithdrawn from warehouse forconsumption during aperiod ofthirty daysafter
thedayofsuchpublic notice, suchpractice shallbeconsidered fullcompliance withthissub-paragraph.
(c) Inthecaseofquotasallocatedamongsupplyingcountries,thecontractingpartyapplying
therestrictions shallpromptly inform allother contracting parties having aninterest insupplying the
product concerned oftheshares inthequota currently allocated, byquantity orvalue, tothevarious
supplying countries andshallgivepublic notice thereof.
4. Withregard torestrictions applied inaccordance withparagraph 2(d)ofthisArticle orunder
paragraph 2(c)ofArticle XI,theselection ofarepresentative period foranyproduct andtheappraisal
ofanyspecial factors affecting thetradeintheproduct shallbemade initially bythecontracting party
applying therestriction; Provided thatsuchcontracting party shall, upon therequest ofanyother
contracting party having asubstantial interest insupplying thatproduct orupon therequest ofthe
CONTRACTINGPARTIES,consultpromptlywiththeothercontractingpartyortheCONTRACTINGPARTIESregarding
theneedforanadjustment oftheproportion determined orofthebaseperiod selected, orforthe
reappraisal ofthespecial factors involved, orfortheelimination ofconditions, formalities oranyother
provisions established unilaterally relating totheallocation ofanadequate quota oritsunrestricted
utilization.
5. Theprovisions ofthisArticle shallapply toanytariff quota instituted ormaintained byany
contracting party, and,insofarasapplicable, theprinciples ofthisArticle shallalsoextend toexport
restrictions.
Article XIX
Emergency Action onImports ofParticular Products
1. (a) If,asaresult ofunforeseen developments andoftheeffect oftheobligations
incurred byacontracting party under thisAgreement, including tariffconcessions, anyproduct isbeing
importedintotheterritoryofthatcontractingpartyinsuchincreasedquantitiesandundersuchconditions
astocause orthreaten serious injury todomestic producers inthatterritory oflikeordirectly competitive
products, thecontracting party shallbefree,inrespect ofsuchproduct, andtotheextent andforsuch
timeasmaybenecessary toprevent orremedy suchinjury, tosuspend theobligation inwhole orin
partortowithdraw ormodify theconcession.
(b) Ifanyproduct, which isthesubject ofaconcession withrespect toapreference,
isbeing imported intotheterritory ofacontracting party inthecircumstances setforthinsub-paragraph
(a)ofthisparagraph, soastocause orthreaten serious injury todomestic producers oflikeordirectly
competitive products intheterritory ofacontracting party which receives orreceived suchpreference,
theimporting contracting party shallbefree,ifthatother contracting party sorequests, tosuspend
therelevant obligation inwhole orinpartortowithdraw ormodify theconcession inrespect ofthe
product, totheextent andforsuchtimeasmaybenecessary toprevent orremedy suchinjury.
2. Before anycontracting party shalltakeaction pursuant totheprovisions ofparagraph
1ofthisArticle, itshallgivenotice inwriting totheCONTRACTING PARTIES asfarinadvance asmay
bepracticableandshallaffordtheCONTRACTINGPARTIESandthosecontractingpartieshavingasubstantial
interest asexporters oftheproduct concerned anopportunity toconsult withitinrespect oftheproposed
action. When suchnotice isgiven inrelation toaconcession withrespect toapreference, thenotice
shallname thecontracting party which hasrequested theaction. Incritical circumstances, where delay
would cause damage which itwould bedifficult torepair, action under paragraph 1ofthisArticleG/RO/W/31
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maybetaken provisionally without priorconsultation, onthecondition thatconsultation shallbeeffected
immediately aftertaking suchaction.
3. (a) Ifagreement among theinterested contracting parties withrespect totheaction
isnotreached, thecontracting party which proposes totakeorcontinue theaction shall, nevertheless,
befreetodoso,andifsuchaction istaken orcontinued, theaffected contracting parties shallthen
befree,notlaterthanninety daysaftersuchaction istaken, tosuspend, upontheexpiration ofthirty
daysfromthedayonwhich written notice ofsuchsuspension isreceived bytheCONTRACTING PARTIES ,
theapplication tothetrade ofthecontracting party taking suchaction, or,inthecaseenvisaged in
paragraph 1(b)ofthisArticle, tothetrade ofthecontracting party requesting suchaction, ofsuch
substantially equivalent concessions orother obligations under thisAgreement thesuspension ofwhich
theCONTRACTING PARTIES donotdisapprove.
(b) Notwithstanding theprovisions ofsub-paragraph (a)ofthisparagraph, where
action istaken under paragraph 2ofthisArticle without prior consultation andcauses orthreatens
serious injury intheterritory ofacontracting party tothedomestic producers ofproducts affected
bytheaction, thatcontracting party shall, where delay would cause damage difficult torepair, befree
tosuspend, upon thetaking oftheaction andthroughout theperiod ofconsultation, suchconcessions
orother obligations asmaybenecessary toprevent orremedy theinjury.
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