WORLD TRADE
ORGANIZATIONTN/S/W/6
S/CSC/W/35
24 October 2002
(02-5852)
Council for Trade in Services
Special Session
Committee on Specific CommitmentsOriginal:  English
COMMUNICATION FROM THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES
Coverage of CPC 84 – Computer and Related Services
The attached communication has been received from the delegation of the European
Communities and their Member States with the request that it be circulated to the Council for Trade in
Services in Special Session and the Committee on Specific Commitments.
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1. In July 2002, the European Communities and their Member States (hereinafter “the EC”)
tabled a Negotiating Proposal on Computer and related services (S/CSS/W/34/Add.1).  This
Negotiating Proposal was prompted by:
(i) the growing importance of the sector - Computer and related services are fundamental
for economic activity and permeate all sectors. They are a tool for economic
development because of their role in building infrastructure and creating employment
(particularly skilled jobs), in both developing economies and developed countries.
(ii) the speed of technological development  - Computer services become more and more
varied and complex. Evolved services such as web-hosting and application service
providers (ASPs), are a combination of various sub-sectors of Chapter CPC 84: it is
therefore increasingly difficult to distinguish between the different sub-headings of
CPC 84, and sometimes between services covered under CPC 84 and neighbouring
services such as telecommunications.
2. In addition to presenting the negotiating object ives of the EC, this proposal underlined the
need to clarify the scope of coverage of CPC 84, in order to avoid possible misunderstandings
amongst Members regarding the scope of the commitments made under CPC 84.
3. The EC is not seeking a re-classification of computer and related services, which is – and
should continue to be – defined as in division 84 of the provisional CPC (attached in annex forreference).
4. The EC does not think it appropriate to negotiate an annex to the GATS with a list of services
covered by CPC 84, as this list is bound to be rendered obsolete by rapid technological developments
soon.
5. The EC suggests that WTO Members reach a clear understanding on the scope of coverage of
CPC 84 on the basis of a functional definition, which should increase legal certainty and help identifyTN/S/W/6
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which services, in particular among “evolved” services, are covered by this chapter CPC 84 and
which are not.  WTO Members could indicate in the “sector” column of their schedule of
commitments, under “CPC 84 – Computer and related services” that they subscribe to the
“Understanding on the scope of coverage of CPC 84 ”, which would be attached to the schedule.
6. The EC puts forward the following text as an attempt to develop the “Understanding”
mentioned above.  The EC is prepared to discuss this text in the context of the Council for Trade in
Services in special session and of the Committee on Specific Commitments and would welcome any
suggestions from WTO Members with a view to possible improvements.
Understanding on the scope of coverage of CPC 84 - Computer and Related Services
7. CPC 84 covers the basic functions used to provide all computer and related services:
computer programs defined as the sets of instructions required to make computers work andcommunicate (including their development and impl ementation), data processing and storage, and
related services, such as consultancy and training services for staff of clients.  Technological
developments have led to the increased offering of these services as a bundle or package of related
services that can include some or all of these basic functions. For example, services such as web or
domain hosting, data mining services and grid computing each consist of a combination of basiccomputer services functions.
8. Computer and related services, regardless of whether they are delivered via a network,
including the Internet, include all services that provide:
• consulting, strategy, analysis, planning, specification, design, development, installation,
implementation, integration, testing, debugging, updating, support, technical assistance, or
management of or for comput ers or computer systems; or
• computer programs defined as the sets of instructions required to make computers work and
communicate (in and of themselves), plus consulting, strategy, analysis, planning,
specification, design, development, installation, implementation, integration, testing,
debugging, updating, adaptation, maintenance, support, technical assistance, management or
use of or for computer programs; or
• data processing, data storage, data hosting or database services; or
• maintenance and repair services for office machinery and equipment, including computers; or,
• training services for staff of clients, related to computer programs, computers or computer
systems, and not elsewhere classified.
9. Computer and related services  enable the provision of other services (e.g., banking) by both
electronic and other means.  However, there is an important distinction between the enabling service
(e.g., web-hosting or application hosting) and the content or core service that is being delivered
electronically (e.g., banking). In such cases, the content or core service is not covered by CPC 84.TN/S/W/6
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ANNEX
CPC DIVISION 84 - COMPUTER AND RELATED SERVICES
841 Consultancy services related to the installation of computer hardware8410 84100 Consultancy services related to the installation of computer hardware
Assistance services to the clients in the installation of computer hardware (i.e. physical
equipment) and computer networks.
842 Software implementation services
All services involving consultancy services on, development and implementation of software.
The term "software" may be defined as the sets of instructions required to make computers
work and communicate.  A number of different programmes may be developed for specificapplications (application software), and the customer may have a choice of using ready-made
programmes off the shelf (packaged software), developing specific programmes for particular
requirements (customized software) or using a combination of the two.
8421 84210 Systems and software consulting services
Services of a general nature prior to the development of data processing systems and
applications.  It might be management services, project planning services, etc.
8422 84220 Systems analysis services
Analysis services include analysis of the clients' needs, defining functional specification, and
setting up the team.  Also involved are project management, technical coordination and
integration and definition of the systems architecture.
8423 84230 Systems design services
Design services include technical solutions, with respect to methodology, quality-assurance,
choice of equipment software packages or new technologies, etc.
8424 84240 Programming services
Programming services include the implementation phase, i.e. writing and debugging
programmes, conducting tests, and editing documentation.
8425 84250 Systems maintenance services
Maintenance services include consulting and technical assistance services of software
products in use, rewriting or changing existing programmes or systems, and maintaining
up-to-date software documentation and manuals.  Also included are specialist work, e.g.
conversions.TN/S/W/6
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843 Data processing services
8431 84310 Input preparation services
Data recording services such as key punching, optical scanning or other methods for data
entry.
8432 84320 Data-processing and tabulation services
Services such as data processing and tabulation services, computer calculating services, and
rental services of computer time.
8433 84330 Time-sharing services
This seems to be the same type of services as 84320.  Computer time only is bought; if it is
bought from the customer's premises, telecommunications services are also bought.  Data
processing or tabulation services may also be bought from a service bureau.  In both cases the
services might be time sharing processed.  Thus, there is no clear distinction between 84320
and 84330.
8439 84390 Other data processing services
Services which manage the full operations of a customer's facilities under contract:
computer-room environmental quality control services; management services of in-placecomputer equipment combinations; and management services of computer work flows and
distributions.
844 Database services
8440 84400 Database services
All services provided from primarily struct ured databases through a communication network.
Exclusions:  Data and message transmission services (e.g. network operation services,
value-added network services) are classified in class 7523 (Data and message transmission
services).
Documentation services consisting in information retrieval from databases are classified in
subclass 96311 (Library services).
845 Maintenance and repair services of office machinery and equipment including computers
8450 84500 Maintenance and repair services of office machinery and equipment including 
computers
Repair and maintenance services of office machinery, computers and related equipment.
849 Other computer services
8491 84910 Data preparation services
Data preparation services for clients not involving data processing services.TN/S/W/6
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8499 84990 Other computer services n.e.c.
Other computer related services, not elsewhere classified, e.g. training services for staff of
clients, and other professional computer services.
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