./.WORLD TRADE
ORGANIZATIONS/L/106
11 June 2002
(02-3224)
Trade in Services
PROCEDURES FOR THE CERTIFICATION OF TERMINATIONS, REDUCTIONS AND
RECTIFICATIONS OF ARTICLE II (MFN) EXEMPTIONS
Adopted by the Council for Trade in Services on 5 June 2002
1. Modifications in the authentic texts of lists of Article II exemptions which consist of
terminations, reductions of the scope or level of existing exemptions, or rectifications or changes of a
purely technical character that do not alter the substance of the existing exemptions, shall take effect
by means of certification.
Terminations of Article II (MFN) exemptions
2. A Member intending to terminate any of its Artic le II exemptions prior to its termination date
shall notify the Council for Trade in Services.  Such a notification shall contain information on the
reasons for the intended termination, as well as the da te of entry into force of the termination.  The
Secretariat shall issue a communication to all Members to the effect that the termination of the Article
II exemption has been certified, indicating the date of entry into force of the termination.
Reductions and Rectifications of Article II (MFN) exemptions
3. A Member intending to reduce the scope or level of its existing exemptions, or to rectify or
make changes of a purely technical character that do not alter the substance of such exemptions, shall
submit to the Secretariat for circulation to all Members a draft list of Article II Exemptions clearlyindicating the details of the modifications.  The draft list containing the modifications shall enter into
force upon the conclusion of a period of 45 days from the date of its circulation by the Secretariat,  or
on a later date specified or to be specified by the modifying Member provided no objection has been
raised by any other Member.  At the end of the 45-day period, if no objection has been raised, the
Secretariat shall issue a communication to all Members to the effect that the certification procedurehas been concluded, indicating the date of entry into force of the modifications.
4. Any Member wishing to object to the proposed modifications shall submit a notification to
that effect to the Secretariat for circulation to all Members.  A Member making an objection should
identify the specific elements of the modifications which gave rise to that objection.  A Member shall
not cite loss of preferential treatment as the basis for objection.  The objecting Member(s) and themodifying Member shall enter into consultation as soon as possible and shall endeavour to reach a
satisfactory solution of the matter within 45 days after the expiry of the period in which objections
may be made.  When an objection has been notified, this procedure shall be deemed concluded upon
the withdrawal of the objection by the objecting Member or the expiry of the period in which
objections may be made, whichever comes later. When more than one objection has been notified,this procedure shall be deemed concluded upon the withdrawal of the objections by all objecting
Members or the expiry of the period in which objections may be made, whichever comes later.  The
withdrawal of any objection shall be communicated to the Secretariat, which shall issue aS/L/106
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communication informing all Members of the withdrawal of the objection(s) and the conclusion of the
certification procedure, indicating the date of entry into force of the modifications.
5. If as a result of the consultations mentioned in paragraph 4, the draft list of Article II
Exemptions originally submitted for certification were to be modified, the modifying Member shall
reinitiate the procedure described in paragraph 3.
Review
6. Following the lapse of three years from the date of entry into force of these procedures, the
Council for Trade in Services shall, at the reque st of any Member, review the operation of these
procedures.  In such a review, the Council for Trade in Services may agree to amend these
procedures.
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