./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/IT/M/5
28 May 1998
(98-2235)
Committee of Participants on the Expansion of Trade
in Information Technology Products
MINUTES OF THE MEETING OF 25 MARCH 1998
Chairman:  Mr. M. Harvey (New Zealand)
Agenda of the Meeting Page
1. Divergences in classifying Information Technology Products pursuant to Paragraph 5
of the Annex to the Ministerial Declaration on Trade in Information Technology
Products (WT/MI N(96)/16)............................................................................................. 1
2. Classification issues raised in the context of the Review of Product Coverage .............. 2
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Introduction
The Chairman stated that this fifth formal meeting of the Committee of Participants on the
Expansion of Trade in Information Technology Products had been convened to specifically discuss
divergences in classifying information technology products.  The proposed agenda for this meeting
was circulated in WTO/AIR/801 on 13 March 1998.  He asked if there were any other matters to be
raised under "Other Business".  Hearing no requests, the agenda was adopted.
He further noted, as background information for delegations, that at the last meeting of the
Committee on 12 February 1998, it was proposed that a meeting of technical experts be convened to
discuss the classification issues.  There seemed to be two types of such classification issues at hand,
first, those that related to what had been termed ITA I, and those that had been raised in the context of
the Review on Product Coverage in the ITA II discussions.  Therefore, this meeting had been
structured in two parts as indicated in the agenda.
1. Divergences in classifying Information Technology Products pursuant to Paragraph 5 of the
Annex to the Ministerial Declaration on Trade in Information Technology Products
(WT/MIN(96)/16)
1.1 The Chairman recalled that paragraph 5 of the Annex to the Ministerial Declaration on Trade
in Information Technology Products stated the following:
"Participants shall meet as often as necessary and no later than 30 September 1997 to
consider any divergence among them in classifying information technology products,beginning with the products specified in Attachment B.  Participants agree on the
common objective of achieving, where appropriate, a common classification for theseG/IT/M/5
Page 2
products within existing HS nomenclature, giving consideration to interpretations and
rulings of the Customs Co-operation Council (also known as the World Customs
Organization or “WCO”).  In any instance in which a divergence in classification
remains, participants will consider whethe r a joint suggestion could be made to the
WCO with regard to updating existing HS nomenclature or resolving divergence in
interpretation of the HS nomenclature."
He noted that on the basis of this mandate this issue has been on the agenda of the Committee
since its first meeting on 29 September 1997; however, so far no action or substantive decision had
been taken with respect to the matter.   To assist  delegations in this work, there were two sets of
documents prepared by the Secretariat which outl ined the divergences in classifying information
technology products.  These were contained in documents G/IT/2, G/IT/2/Corr.1, and G/IT/2/Add.1.
He also pointed to a recent communication received  from the World Customs Organization which was
circulated in G/IT/5, as this document may provide additional information for participants on whathad transpired in the WCO on these classification issues.
1.2 The delegate of the European Communities stated that it would be preferable to move to
informal mode to discuss classification divergences.  He furthermore proposed that the Committee
first discuss divergences as they related to semiconductor manufacturing and testing equipment, and
that the EC would distribute a non-paper to contribute to these discussions.
1.3 The delegates of Canada, Singapore  and Japan  stated their agreement with respect to moving
to informal mode to discuss classification divergencies.1.4 The delegate of Korea expressed interest in discussing the work conducted by the WCO with
respect to classification.1.5 The delegate of the United States stated that the acceptance procedures had been finalized; the
first and second tariff reductions had been implemented on the 31 December 1997 and on 1 January
1998 respectively, as indicated in the US schedule of commitments.
2. Classification issues raised in the context of the Review of Product Coverage
2.1 The Chairman recalled that the second item on the agenda concerned classification issues
raised by a number of participants in the context of the review of product coverage.  These questions
were raised in individual submissions contained in  the G/IT/SPEC series of documents, and were also
compiled in the consolidated list prepared by the Secretariat and contained in document
G/IT/SPEC/15.  He drew attention to a separate se ction of this document, titled "Clarifications on
Classification" beginning on page 26.
2.2 It was agreed that for the time being the Committee would conduct discussions on
classification in informal mode.
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