WORLD TRADE
ORGANIZATIONG/IT/14/Rev.1/Add.1
15 April 2003
(03-2066)
Committee of Participants on the Expansion of Trade in
Information Technology Products
INFORMAL MEETING OF CUSTOMS EXPERTS FROM ITA PARTICIPANTS
TO DISCUSS CLASSIFICATION DIVERGENCES
6-8 MAY 2002
Addendum
The following communication has been transmitted to the ITA Chairperson.
_______________
The group of customs classification experts and other interested delegates met informally in
Geneva during 6-8 May 2002 to discuss classification divergences of ITA products (Attachment Bitems), and have hereby submitted the outcome of the work during those meetings.  The group
believed they had gone as far as possible at this point in time at the technical level and therefore
thought this should now be taken up actively in the formal Committee.  It was noted that the
remaining matters were for decision-making by the Committee, as some issues may involve
interpretation of the existing Ministerial Declaration text. The group remained committed to makingsure this work reaches its completion, and should the Committee have any further questions of
clarifications, these would gladly be addressed.  However, no further meetings were envisioned at this
point in time.
During the meetings, classification divergences of ITA Attachment B items were discussed,
continuing where the experts left off at the previous meeting in December 2000, as summarized in the
report (G/IT/14/Rev.1).  All items in Attachment A- Section 2 that were indicated “for Attachment B”,
as well as Attachment B items were examined.  T hus, all the ITA Attachment B items were addressed.
The specific work accomplished can be summarized as follows:
• The majority attachment B items' classification divergences were agreed by the group and
narrowed to one or more HS classifications.
• In a one case, a recommendation that the matter be referred to the WCO HSC for their opinion.
• In a few cases, the group recommends the formal Committee of Participants on the Expansion of
Trade in Information Technology Products take up the matter, as it concerned a question on whatthe ITA definition was meant to cover; the technical group could not deliberate further.
• In a number of instances, the classification divergences remained unresolved by the customs
experts due to various situations, i.e. pending court cases, pending WCO HSC opinion, need foradditional information, etc…
During the meetings, the experts present were able to indicate instances where they were
prepared to reconsider the HS headings reported by their administrations, either by adding potential
classifications or by deleting references to specific HS headings considered to be inappropriate.
However, the group recognized the importance of having all ITA participants examine the result of
the work and for that reason those HS headings which the group considered as inappropriate were putinto square brackets.  The group was aware that it could not change the  positions of others not in
attendance who may still support the classifications questioned as inappropriate.G/IT/14/Rev.1/Add.1
Page 2
The group recalled the mandate of the work on classification divergences, as noted in
paragraph 5 of the Annex to the Ministerial Declaration.  Thus, it was noted that the work
accomplished goes a long way in reducing classification divergences, but it was the full Committee
which must decide on the classifications proposed or make amendments as necessary.  It was
suggested that this report be taken up in detail at the next formal meeting of the Committee with aview to having all participants endorse the classifications indicated as probable, while agreeing that
the bracketed items were inappropriate.
   From the feedback received thus far, it appeared that there
was broad agreement to the classification suggestions made by the group.  It was noted that a process
or mechanism would also have to be decided upon by the Committee for the eventual changes that
this classification work may entail, and that technica l assistance may be needed in this area for some
participants.
Furthermore, it was emphasized that this report should be considered with the work already
completed and circulated in document G/IT/14/Rev.1, as it updates and compliments the information
presented there.  Past discussions were not repeated nor reproduced in this document.  The group
looked forward to the positive eventual outcome on this matter, and encouraged other participants to
contribute to the process.
SUMMARY OF DISCUSSIONS
1. Customs experts and other interested delegates from the following ITA participants met on 6-
8 May 2002 to discuss classification divergences:  Canada; Chinese Taipei; European Communities;Korea; India; Japan; Norway; Switzerland; Thailand; and the United States.
2. Those present discussed the classification divergences and noted the main issues at hand for
each Attachment B item; these are explained in the attached Rapporteur's Summary.  The group noted
that there was a convergence of opinion on many classification possibilities, while other classificationpossibilities were considered doubtful and were indicated in square brackets in the attached
Rapporteur's Summary.
3. It was noted that the discussions and ensuing outcome did neither prejudice the rights of any
participant with respect to their classification of At tachment B items in the ITA nor modify their tariff
commitments under the ITA itself.  It was only a technical discussion by customs experts to share
information and highlight classifications that seemed appropriate, or alternatively, not appropriategiven the discussions and shared experiences. As a technical exercise, the group confirmed that the
exercise was only to examine classification divergences that existed and in no way should involve an
expansion or reduction in the ITA product coverage.
4.  In the attached Rapporteur's Summary, the wording "add" or "delete" was used to show where
delegations indicated their preparedness to change their initial classifications of Attachment B items.
Hence, at this point in time, there had been no official changes to the schedules of commitments of
ITA participants.
5. The group noted that it is important that all delegations examine the outcome fully, especially
those participants not represented at the meetings.  Therefore, we encourage all participants that have
classifications in the square bracketed classifications to consider whether these classifications remain
valid.
6.  We would suggest that this report be taken up in detail at the next formal meeting of the
Committee with a view to having all participants endorse the classifications indicated as probable,
while agreeing that the bracketed items are inappropriate.
7. There was no change in the position of India with respect to its classification under various
items.  India noted that the attached Rapporteur's summary did not have a legal basis.  Furthermore,G/IT/14/Rev.1/Add.1
Page 3
the scope of the work by the Experts had been clea rly indicated in paragraph 5 of the Annex to the
Ministerial Declaration and hence the work was clearly confined to this mandate.  The mandates of
paragraph 3 and paragraph 5 of this Annex were different and separate and should not be mixed up.
Common Abbreviations and Phrases used in the text:
ADP Automatic Data Processing
Explanatory Notes WCO publication containing Explanatory Notes to the HS nomenclature;
used in conjunction with the HS to further clarify issues of classification
under the HS
HS Harmonized System nomenclature
HSC Harmonized System CommitteeWCO World Customs Organization
RAPPORTEUR'S SUMMARY
Please note that the information produced here supplements the findings already reported in
G/IT/14/Rev.1, and therefore this report should be read in conjunction with that document.
113- Quartz reactor tubes and holders designed for insertion into diffusion and oxidation
furnaces for production of  semiconductor wafers
Reference was made to the reply from the WCO (G/IT/20) whereby the HSC agreed to classification
under 702000 for this product.  Therefore, classification under 701710 was not appropriate.
[681599]
[701710]
702000
114- Chemical vapour deposition apparatus for semiconductor production
The respective parts items is # 115.
Classification under 841989 was the appropriate classification agreed by the group; see discussions
held in the previous session.
841989
[847989]
115- Parts of chemical vapour deposition apparatus for semiconductor production
The respective host apparatus is # 114.
The group noted that since the host apparatus was appropriately classified in 841989, the respective
parts classification was 841990.
Chinese Taipei deletes 847990.
841990
[847990]
122- Apparatus for stripping or cleaning semiconductor wafers
The respective parts item is # 135.G/IT/14/Rev.1/Add.1
Page 4
The group referred this item to the formal Committee for what was meant to be covered by the
Ministerial Declaration text.  The issue concerned 'wet' versus 'dry' processes.   It was noted that the
description of item # 142 specifically noted 'wet' processes, so some thought that implied this item
was to include only 'dry' processes.   Also, there was concern that ‘etching’ was synonymous with
‘stripping’, and thus were they two separate processes or one in the same?  One of the outstandingquestions was whether the description would cover etching, and thus 845691 would need to be
considered.  The interpretation of whether ‘wet and dry’ processes or only ‘dry’ processes were
covered by the description would determine the possible classifications, and this is what was asked of
the Committee.
The group noted that 845699 and 847989 were appropriate, but remained undecided as to the
inclusion of 845691 or not.  Discussions noted that subheading 8456 covered stripping processes, and8479 covered cleaning processes.  It was noted that 842489 and 854330 did not seem to be
appropriate classifications.
[842430]
[842489][845610]
[845620]
845691845699847989[854330]
125- Lasercutters for cutting contacting tracks in semiconductor production by laser beam
The respective parts item is # 133.
Classification under 845610 was the appropriate classification agreed by the group; see discussions
held in the previous session.
845610
[845690][845691]
[845699]
[8462][851580]
126- Machines for sawing monocrystal semiconductor boules into slices, or wafers into chips
The respective parts item is # 129.
Classification under 846410 was the appropriate classification agreed and by the group; see
discussions held in the previous sessions.
[820890]
[8463]
846410[846420][846490][846691][847989]
[847990]G/IT/14/Rev.1/Add.1
Page 5
129- Parts for machines for sawing monocrystal semiconductor boules into slices, or wafers
into chips
The respective host apparatus is # 126.
The US further explained their reasoning for classifications under 846610, 846620, and 846630.
Discussions continued on the issue of 'parts' versus 'accessories'.   The group reached a consensus thatthis item would be classified in 846691, but there was no consensus on 846610, 846620, and 846630.
Furthermore, it is recalled that this issue of 'parts' versus 'accessories' was sent to the WCO HSC for
their opinion, and the reply received indicated that there were no legal definitions in the HS
nomenclature for 'parts' and 'accessories.  Thus, no definitive answer was received and the same issue
remained before the customs experts.  It is noted that the HS heading for 8466 refers to "parts and
accessories" with the first three 4-digit headings (846610, 846620, and 846630) referring to toolholders and self-opening dieheads; work holders; a nd dividing heads and other special attachments for
machine-tools.  The group remained divided on whether items could be classified in 846610, 846620,
and 846630 because the description of these HS classifications referred to specific items, in which
some thought were accessories to the machines and not parts of the machines.  The United States
believed that 846610, 846620, and 846630 remained applicable, and they noted that this wasreinforced by recent discussions in the WCO that addressed certain workholders.  Others did not
support this view.
This outstanding issue (same for ID's 130, 133, 135, 153, and 157) should be referred to the formal
Committee.  The question to be asked is whether there were items meeting the ITA description thatwould be classified in 846610, 846620, and 846630.  The question put forth to examine this was:
--Whether tool holders/work holders/dividing head s and other special attachments for machines for
sawing monocrystal semiconductor boules into slices or wafers into chips should be covered under the
ITA?
[82089]
[820890]846610846620
846630
846691[847990]
130- Parts of dicing machines for scribing or scoring semiconductor wafers
The respective host apparatus was in Attachment A, Section 2, and classified in 846490.  Thus,
846691 was the appropriate classification here. See item #129 for discussion on 846610, 846620 and846630.
[820890]
846610
846620
846630846691[846693]
[847990]
133- Parts of lasercutters for cutting contacting tracks in semiconductor production by laser
beam
The respective host apparatus is # 125.G/IT/14/Rev.1/Add.1
Page 6
The group noted that 846693 was the appropriate classification.  See item #129 for discussion on
846610, 846620 and 846630.
846610
846620846630846693[851590]
135- Parts of apparatus for stripping or cleaning semiconductor wafers
The respective host apparatus is # 122.
The group noted that 846693 and 847990 were appropriate classifications.  See item #129 for
discussion on 846620 and 846630.
Norway adds 847990.
[842490]
846620846630
846693
847990
137 (same description as 144)- Encapsulation equipment for assembly of semiconductors
The respective parts are # 138 and # 155.
Discussions continued on what was meant by "encapsulation".  There was the issue of whether
encapsulation was determined by the type of material—i.e. plastic, rubber, glass, ceramic, epoxy,
etc…  The classifications given by participants were linked to the type of process for encapsulation,for example, 847710 for injection molding, 847740 for vacuum molding or thermoforming, and
847759 for liquid encapsulating molding, and this in turn was linked to the type of material used for
encapsulation.  Some noted that there was a difference between encapsulation and sealing, and
perhaps the group was referring to different things.  With respect to the possibility of encapsulation
with metal (i.e. welding), the group preferred to seek more information on the process.  In this respect,a literature was circulated on the subject.  However no agreeable definition was found and
classifications under 847989 and the three classifications of 8477 remained problematic.  The group
did not reach a consensus at this time with respect to this item.
[842230]
[846599]
847710
847740
847759[847780][847980]847989[854389] (by synchronisation with item # 144, where EC and JA deleted this code)
138- Parts of encapsulation equipment
The respective host apparatus are # 137 and # 144.G/IT/14/Rev.1/Add.1
Page 7
See discussion under item #137; the outcome of that discussion will determine the 'parts'
classification.
[842290]
[846692]
847790847990
139- Automated machines for transport, handling and storage of semiconductor wafers,
wafer cassettes, wafer boxes and other material for semiconductor devices
The respective parts item is # 154.
Discussions focused on whether the machines covered by this description were a complete machine or
involved separate processes in modular form.  There were certain HS classifications that were
included as they referred to one specific function of the definition, e.g. handling, whereas other
classifications would cover a product that did multiple functions.  The group was not sure if the ITA
description as drafted was meant to cover machines that only performed one or more function listed,
or whether it had to perform all functions.
This item should be referred to the formal Comm ittee.  The question was a matter or interpretation of
the definition—whether it was one machine that had to perform all the specific functions (transport,
handling, and storage), or was it appropriate if the machine only performed one or two functions.
This would determine the appropriate classification or classifications.
Norway deletes 847950 and adds 842839.
[842820]
[842833]
842839842890847950847989
[847990]
141- Apparatus for physical deposition by sputtering on semiconductor wafers
The respective parts item is # 149.
The group referred to the WTO HSC classification opinion, in which HS 854389 was given and which
would cover the goods described by this definition.
Chinese Taipei deletes 847989 and 854311, and adds 854389.  Canada adds 854389 and deletes
847989.  Switzerland adds854389.
[841989]
[847989]
[854311]
854389
142 (same description as 168)- Apparatus for wet etching, developing, stripping or cleaning
semiconductor wafers and flat panel displays
The discussions focused on whether this was one apparatus that performed these operations in
continuous function, or were they separate modules of machines.  It was noted that the firstclassification listed involved processes for etching, stripping, or cleaning by spraying; while theG/IT/14/Rev.1/Add.1
Page 8
second classification was for wet stripping/etching.  The third classification was to encompass other
wet processes.  Thus, the classification was dependent on whether the description covered a complete
machine or individual modules that performed separate functions.
Classification under 854330 was doubtful as this classification involved electroplating, which was not
covered by the description.
The group believed that there were three possible classifications ( 842489, 846490, 847989 ) based on the
description of the goods in the ITA.
842489
846490
847989[849889][854330] (by synchronisation with item # 168)
[901049]
143- Die attach apparatus, tape automated bonders,  and wire bonders for assembly of
semiconductors
The group agreed on two possible classifications (847989, 851580) for the items covered by this
description.
Chinese Taipei adds 851580.
[846599]
847989
851580[851590][8517]
144 (same description as 137)- Encapsulation equipment for assembly of semiconductors
The respective parts items are  # 155 and # 138.
Discussions continued on what was meant by "encapsulation".  There was the issue of whether
encapsulation was determined by the type of material—i.e. plastic, rubber, glass, ceramic, epoxy,
etc…  The classifications given by participants were linked to the type of process for encapsulation,
for example, 847710 for injection molding, 847740 for vacuum molding or thermoforming, and847759 for liquid encapsulating molding, and this in tu rn was linked to the type of material used for
encapsulation.  Some noted that there was a difference between encapsulation and sealing, and
perhaps the group was referring to different things.  With respect to the possibility of encapsulation
with metal (i.e. welding), the group preferred to seek more information on the process.  There was
emerging consensus on 847989, but the three classifications of 8477 remained problematic.  The
group did not reach a consensus at this time with respect to this item.
[842230]
[846599]
847710
847740847759[847780]847989[847990]
[854389]G/IT/14/Rev.1/Add.1
Page 9
146- Machines for bending, folding and straightening semiconductor leads
The respective parts item is # 157.
The group agreed on two possible classifications (846221, 846229) for the items covered by this
description.
[8462]
846221
846229
[8463][846390][847989]
147- (some relationship to 141) Physical deposition apparatus for semiconductor production
The respective parts item is # 158.
The group agreed that 854389 was the appropriate classification as it would cover the products in the
ITA description.  They noted the HSC opinion referred to in item #141.
Chinese Taipei adds 854389 and deletes 847989.
[841989]
[847989][851410][851420]
[851430]
[851440]
854389
148- Spinners for coating photographic emulsions on semiconductor wafers
The respective parts item is # 151.
The group agreed that 847989 was the appropriate classification as it would cover the products
described in the ITA description.
[842119]
[842489]
847989
149- Part of apparatus for physical deposition by sputtering on semiconductor wafers
The respective host apparatus item is # 141.
The group agreed that 854390 was the appropriate classification based on the classification of the host
apparatus.
[841990]
[847990]
854390
150- Parts for die attach apparatus, tape automated bonders, and wire bonders for assembly
of semiconductors
The respective host apparatus item is # 143.G/IT/14/Rev.1/Add.1
Page 10
The group agreed two possible classifications (847990, 851590) based on the classification of the host
apparatus.
[846692]
847990851590
151- Parts for spinners for coating photographic emulsions on semiconductor wafers
The respective host apparatus item is # 148.
The group agreed that 847990 was the appropriate classification based on the classification of the host
apparatus.
[842119]
[842191]
[842199][842490]847990
153 (same description as 169)-Parts of apparatus for wet etching, developing, stripping or
cleaning semiconductor wafers and flat panel displays
The respective host apparatus items are # 142 and # 168.1
The group agreed on three possible classifications (842490, 846691, 847990) for the items covered by
this description. See item #129 for discussion on 846620 and 846630.
842490
[845390] (by synchronisation with item # 169)
846620
846630846691847990
[854390]
[901090]
154- Parts of automated machines for transport, handling and storage of semiconductor
wafers, wafer cassettes, wafer boxes and other material for semiconductor devices
The respective host apparatus item is # 139.
See discussion under item #139; the outcome of that discussion will determine the 'parts'
classification.
Chinese Taipei adds 843139 and deletes 847990.
843139
847990
155- Parts of encapsulation equipment for assembly of semiconductors
The respective host apparatus items are # 137 and # 144.
                                                     
1 It was pointed out that codes notified under #142 and #168 should be the same, and that the
corresponding "parts" classification would then be notified here.G/IT/14/Rev.1/Add.1
Page 11
See discussion under items #137/#144; the outcome of that discussion will determine the 'parts'
classification.
[842290]
[846692]847790847990[854390]
157- Parts of machines for bending, folding and straightening semiconductor leads
The respective host apparatus item is # 146.
Based on the classification of the host apparatus, the appropriate classification is 846694. See item
#129 for discussion on 846610, 846620 and 846630.
846610
846620846630
[846690]
846694[847990][847998]
158- Parts of physical deposition apparatus for semiconductor production
The respective host apparatus item is # 147.
The group agreed that 854390 was the appropriate classification based on the classification of the host
apparatus.
[841690]
[841990][847990]
[851490]
854390
162- Apparatus for rapid heating of semiconductor wafers
The respective parts item is # 164.
The group agreed that 851430 was the appropriate classification as it would cover the products in the
ITA description.  See discussions from previous sessions.
[841989]
851430
[854389]
164- Parts of apparatus for rapid heating of wafers
The respective host apparatus is # 162.
The group agreed that 851490 was the appropriate classification based on the classification of the host
apparatus.
[841990]
851490[854390]G/IT/14/Rev.1/Add.1
Page 12
166- Wafer probers
Discussions continued on whether the products cove red by this description were the wafer prober
apparatus, or just the tip.  If the whole apparatus was meant to be covered by the ITA description, then
the appropriate classification would be 903082.  Altern atively, if just the "tip" of the prober was
covered, the classification would be 853690.
This item should be referred to the formal Comm ittee.  The question was a matter or interpretation of
the definition—whether it was the entire apparatus that was meant to be covered, or was it just the tip
of the apparatus that was used to probe (usually in conjunction with other measuring device).  This
would determine the appropriate classification.
[847989]
853690
903082
[903090]
[903141]
168 (same description as 142)- Apparatus for wet etching, developing, stripping or cleaning
semiconductor wafers and flat panel displays
The respective parts are # 169 and # 153.
The discussions focused on whether this was one apparatus that performed these operations in
continuous function, or were they separate modules of machines.  It was noted that the first
classification listed involved processes for etching, stripping, or cleaning by spraying; while the
second classification was for wet stripping/etching.  The third classification was to encompass other
wet processes.  Thus, the classification was dependent on whether the description covered a completemachine or individual modules that performed separate functions.
Classification under 854330 was doubtful as this classification involved electroplating, which was not
covered by the description.
The group believed that there were three possible classifications (
842489, 846490, 847989 ) based on the
description of the goods in the ITA.
842489
846490
847989[854330][901049]
169 (same description as 153)-Parts of apparatus for wet etching, developing, stripping or
cleaning semiconductor wafers and flat panel displays
The respective host apparatus items are # 168 and # 142.2
The group believed that there were three possible classifications ( 842490, 846691, 847990 ) based on the
classification of the host apparatus.
842490
[845390]846620
                                                     
2 It was pointed out that codes notified under #142 and #168 should be the same, and that the
corresponding "parts" classification would then be notified here.G/IT/14/Rev.1/Add.1
Page 13
846630
846691
847990[854390][901090]
175- Optical stereoscopic microscopes fitted wi th equipment specifically designed for the
handling and transport of semiconductor wafers or reticles
The respective parts item is # 177.
Discussions on this item, and for #176-#180 remained complicated as there were some products
covered here that remained before the US courts.  As the outcome had still not been decided, the
group could not agree on the appropriate classification(s) at this time.  If developments in the situationchanged, the group would be updated accordingly and could revert to the matter in the future.  From
the preliminary discussion, it was noted that many supported classification under 901110, but because
of the outstanding issue, no consensus could be reached at this time.
901110
903141
176- Photomicrographic microscopes fitted with  equipment specifically designed for the
handling and transport of semiconductor wafers or reticles
See discussion under #175. The respective parts item is # 178.
901120
[901190]903141
177- Parts and accessories  of optical stereoscopic microscopes fitted with equipment
specifically designed for the handling and transport of semiconductor wafers or reticles
See discussion under #175. The respective host apparatus is # 175.
901190
903190
178- Parts and accessories of photomicrographic microscopes fitted with equipment
specifically designed for the handling and transport of semiconductor wafers or reticles
See discussion under #175. The respective host apparatus is # 176.
901190
903190
179- Electron beam microscopes fitted with equi pment specifically designed for the handling
and transport of semiconductor wafers or reticles
See discussion under #175. The respective parts item is # 180.
901210
903180G/IT/14/Rev.1/Add.1
Page 14
180- Parts and accessories of electron beam microscopes fitted with equipment specifically
designed for the handling and transport of  semiconductor wafers or reticles
See discussion under #175. The respective host apparatus item is # 179.
901290
903190
181- Pattern generating apparatus of a kind used for producing masks or reticles from
photoresist coated substrates
The respective parts item is # 182.
The group agreed that 901720 was the appropriate classification as it would cover the products in the
ITA description.
[847989]
[854320]
[854389][900610][901041]
[901042]
[901049]901720
182- Parts and accessories for pattern generating apparatus of a kind used for producing
masks or reticles from photoresist coated substrates
The respective host apparatus item is # 181.
The group agreed that 901790 was the appropriate classification based on the classification of the host
apparatus.
[847990]
[854390][900699][901090]
901790
183- Parts of such pattern generating apparatus
The respective host apparatus item is # 181.
The group agreed that 901790 was the appropriate classification based on the classification of the host
apparatus.
[847990]
[854390]
[901090]
[901190]901790G/IT/14/Rev.1/Add.1
Page 15
191- Computers: automatic data processing machines capable of 1) storing the processing
program or programs and at least the data immediately necessary for the execution of
the program; 2) being freely programmed in  accordance with the requirements of the
user; 3) performing arithmetical computations specified by the user; and 4) executing,
without human intervention, a processing pr ogram which requires them to modify their
execution, by logical decision during the processing run.  The agreement covers suchautomatic data processing machines whether or  not they are able to receive and process
with the assistance of central processing unit telephony signals, television signals, or
other analogue or digitally processed audio or video signals.  Machines performing a
specific function other than data processing , or incorporating or working in conjunction
with an automatic data processing machine, and not otherwise specified under
Attachment A or B, are not covered by this agreement.
The group agreed on four possible classifications (847110, 847130, 847141, 847149)
 based on the
ITA description.
It was noted that 847150 was not appropriate as it covered units.
[8471]
847110
847130
[847140]847141847149[847150]
[847160]
[847170][847180][847190][852190][852812]
[852813]
[854389]
192- Electric amplifiers when used as repeaters in line telephony produc ts falling within this
agreement, and parts thereof
Discussions continued on the issue of amplifiers, especially audio-frequency versus electric
amplifiers.  It was noted that one participant had an ongoing court case with respect to some of theproducts covered by this description.  Furthermore, it was noted that the WCO HSC would soon be
taking up the issue of certain repeaters, and this would likely have relevance here.  It was noted that
one could not distinguish repeaters that were used in telephony only.  Without imposing an end-use
criteria, it would be difficult to identify only those products used in line telephony.
Thus, the group noted there were likely 5 possible alternatives, including parts, (851750, 851780,
851790, 851840, 851890), but could not reach agreement at this time on the matter.  They awaited forthe outcomes of relevant decisions in other fora before definitive classifications could be agreed.
851750
851780851790
[8518]
[851810][851821][851822]
[851829]
[851830]G/IT/14/Rev.1/Add.1
Page 16
851840
[851850]
851890[854320][854389]
[854390]
193- Flat panel display devices (including LCD, Electro Luminescence, Plasma, Vacuum-
Fluorescence and other technologies) for pro ducts falling within this agreement, and
parts thereof.
Discussions continued on the various types of  display devices and their various classifications in the
HS.  It was pointed out that monitors were covered separately in the ITA, and some thought thisdescription was to cover the intermediate products, i.e. those semi-finished goods.  There was
discussions on which HS numbers covered particular items but the real question remained one ofinterpretation as to what was meant to be covered by the description.
This item should be referred to the formal Comm ittee.  The question was a matter or interpretation of
the definition—whether it was to cover the complete monitors, flat panels, and/or only display
units/devices.  If the description was meant to cover finished products, or if it also was meant to cover
items in the semi-finished/component state was the question.  This would determine the appropriate
classification.
[842490]
847149847160[847310][847321]
[847329]
847330[847340][847350][851790][852290]
[852821]
[852822][852990]853120853180853190
[854190]
854389854390854890[901320]901380
901390
[901790]
194- Network equipment: Local Area Netw ork (LAN) and Wide Area Network (WAN)
apparatus, including those products dedicated for use solely or principally to permit the
interconnection of automatic data processing machines and units thereof for a networkthat is used primarily for the sharing of resources such as central processor units, data
storage devices and input or output units - including adapters, hubs, in-line repeaters,
converters, concentrators, bridges and routers, and printed circuit assemblies for
physical incorporation into automatic data processing machines and units thereof.
The group agreed on two possible classifications (847180, 851750)
 based on the ITA description.G/IT/14/Rev.1/Add.1
Page 17
Discussions focussed on the HS categories of classifications of 8471, 8517, and 8543.  Reference was
made to numerous WCO opinions, as well as some dom estic legal proceedings (see discussions at last
session).  After further discussions, the group agreed that there were two possible classifications.
It was also noted that there was a question posed as to whether wireless network equipment was
intended to be covered by this description or not.
The US adds 851750 and 847180.  Chinese Taipei adds 851750.  The EC deletes 847150, 847160, and
adds 847180.  Norway deletes 847150 and 847160, and adds 851750.
[847110]
[847130][847141]
[847149]
[847150][847160][847170]847180
[847190]
[8473][847330]851750[851780][851790]
[854389]
[854390]
195- Monitors : display units of automatic data processing machines with a cathode ray tube
with a dot screen pitch smaller than 0,4 mm not capable of receiving and processing
television signals or other analogue or digita lly processed audio or video signals without
assistance of a central processing unit of a computer as defined in this agreement.  The
agreement does not, therefore, cover televisi ons, including high definition televisions.
 The group agreed that 847160 was the appropriate classification as it would cover the products in the
ITA description.3
[847149]
847160
[852821]
[852822]
[854011]
[854012]
[854020][854040][854050][854060]
196- Optical disc storage units, for automatic data processing machines (including CD drives
and DVD-drives),  whether or not having the capability of writing/recording as well as
reading, whether or not in their own housings.
The group agreed that 847170 was the appropriate classification as it would cover the products in the
                                                     
3 For reasons of a domestic tariff provision that remained a unique matter only to the United States;
they noted they also used HS 847149 to cover components of a system.  Furthermore, as this matter remainedunique to the United States, there was no intention to have others use this classification.G/IT/14/Rev.1/Add.1
Page 18
ITA description.4
[847149]
847170
[847190][847330]
[852430]
197- Paging alert devices, and parts thereof.
Discussions continued on the subject of pagers, and consensus was reached on three classifications for
pagers (one-way) (852790,852910, 852990).  However, discussions did not reach agreement on the
issue of a product called two-way pagers.  The group could not come to agreement on whether two-
way pagers (ones that could send and receive me ssages) were covered by the ITA description.
This item should be referred to the formal Comm ittee.  The question was a matter or interpretation of
the definition—on whether the description covering "paging alert devices" was meant to cover items
that were called "two-way pagers".  Some argued that by definition, pagers involved one-way
communication, and thus this product was not covered.  Others noted that according to theinformation on the product concerned, it would be covered in the ITA.  The issue involved
classification 852520, and whether this should be included to cover two-way pagers or not.
Furthermore, it was noted that this HS classification was already covered in Attachment A, Section I
of the ITA.
[852510]
852520
[852719]
852790852910852990[853180][853190]
198- Plotters whether input or output units of HS heading No 8471 or drawing or drafting
machines of HS heading No 9017.
The group agreed that 847160, 901710, and 901720 were the appropriate classifications as they would
cover the products in the ITA description.5
Chinese Taipei deletes 847150.
[847149]
[847150]
847160
[847180]
[847330]
[901000]901710901720
                                                     
4 Ibid.
5 Ibid.G/IT/14/Rev.1/Add.1
Page 19
199- Printed Circuit Assemblies for products falling within this agreement, including such
assemblies for external connections such  as cards that conform to the PCMCIA
standard.  Such printed circuit assemblies consist of one or more printed circuits of
heading 8534 with one or more active elem ents assembled thereon, with or without
passive elements "Active elements" me ans diodes, transistors, and similar
semiconductor devices, whether or not photosensitive, of heading 8541, and integrated
circuits and micro assemblies of heading 8542.
 Discussions continued and many took the opportunity to explain their approach to providing
classifications to this complex description.  Some took the view that only PCAs not coveredelsewhere would be covered, whereas others were of the view that this description should be
comprehensive and list all PCAs regardless of the coverage elsewhere in the ITA.  As part of the
discussion, the group identified for the relevant HS items where PCAs would be classified.  For some
items, PCAs were not relevant, whereas for others, the respective parts classification was typically theclassification to use.
However, in conclusion this item should be referred to the formal Committee.  The question was a
matter or interpretation of what was meant to be covered with this description.  Some were not sure if
the more comprehensive approach, i.e. identifying classifications of PCAs for all ITA products was
necessary, or a more limited approach, i.e. identify ing only items that were not already covered by the
ITA elsewhere.
Japan deletes 843149 and 846692, and adds 852390 and 852491. US  deletes 852020 and adds
852812.  Norway deletes 854389.  Canada deletes 852910 and 854190.
841990
842191842490843139
[843149]
[8463][846390]846691
[846692]
846693
846694
847150
847180
847310
847321
847329
847330847340847350
847790
847990[850440]850490
851440
[851450]851490851590
851750
851780
851790
851890
[852020]
852290
852390G/IT/14/Rev.1/Add.1
Page 20
852491
852812
[852910]852990
[853120]
[853180]
853190
[8534]
[853400]
853890
[854190]
[854212]
[854213]
[854214][854219][854230]
[854240]
[854250]
[854290]
854389
854390
854890
900990901090
901190901290901390901790902690
902790
903090903190
200-Projection type flat panel display units used with automatic data processing machines
which can display digital information generated by the central processing unit.
The group agreed that 847160 and 852830 were the appropriate classifications as they would cover
the products in the ITA description.6
[847149]
847160
[847180][852540]
852830
[853120][853180][854389]
201- Proprietary format storage devices including media therefor for automatic data
processing machines, with or without removable  media and whether magnetic, optical or other
technology, including Bernoulli Box, Syquest, or Zipdrive cartridge storage units
Discussions continued on proprietary storage devices  and it was noted that this description could
cover a wide range of products.  The group was not sure about the coverage of the media, as coveredif separate from the apparatus or not.  As for tape streamers, some pointed out that these would not be
considered proprietary, and thus not covered.  Some noted that 852499 was beyond the scope of the
agreement.
                                                     
6 Ibid.G/IT/14/Rev.1/Add.1
Page 21
This item should be referred to the formal Comm ittee.  The question was a matter or interpretation of
the definition—on what was meant to be covered.  Was the associated media meant to be covered
whether or not it was included in the device.  If media was meant to be covered, the classifications of
8523 and 8524 would need to be examined.  Alternatively, some thought these would not be
applicable to the description.
Norway deletes 847160.
[847110]
[847130]
[847141]
[847149]
[847150]
[847160]847170[847180]
[847190]
[847330]
852311
852312852313852320
[852330]
852390[852410]852431
[852432]
852439
852440
[852451]
[852452][852453]
[852460]852491852499
[854212]
[854250][854290]
202- Multimedia upgrade kits for automatic data processing machines, and units thereof, put
up for retail sale, consisting of, at least, speakers and/or microphones as well as a
printed circuit assembly that enables the ADP machines and units thereof to process
audio signals (sound cards).
The EC updated the group that they now supported classification in 8471, and no longer supported
classifications in 8543, noting a case with respect to sound cards.  Thus, the outstanding matter relatedto whether classification 847330 should be included or not.  The same arguments remained from the
last session, i.e. the discussion on sets/kits and whether the items were classified by their essential
character in the HS or not.  The group remained divided because of the differing ways they classified
products in the HS.
There was converging views with respect to two classifications—847180 and 847330.  However,
while the group supported 847180, there were differing views with respect to 847330.  Thus, the
matter remained outstanding without consensus on whether 847330 was appropriate or not.  The issue
stemmed from varying approaches customs administrati ons took with respect to classifying "kits" or
"sets" is the HS.  Because of a pending court case and an opinion to be taken in the WCO HSC, the
group preferred to wait until the outcome of these relevant decisions before taking a definitive view
on the classification.G/IT/14/Rev.1/Add.1
Page 22
US deletes 847330 and adds 847180. Japan adds 847330 and 847180, and deletes 851821. Canada
deletes 847170 and 847330, and adds 847180.  Norway adds 847330 and 847180, and deletes 854389.
EC deletes 854389 and adds 847180. Switzerland adds 847180.
[847170]
847180[847190]
847330
[851750][851810]
[851821]
[851822][851829]
[851830]
[851850]
[851890]
[852499]
[8543]
[854389]
203- Set top boxes which have a communication function:  a microprocessor-based device
incorporating a modem for gaining access to the In ternet, and having a function of interactive
information exchange.
Discussions continued on the various types of set-t op boxes.  Some noted that these products could
use radiowaves and might not just involve line equipment anymore, others were of the opinion that
line equipment was the only possibility.  Some noted that if the apparatus had a tuner or not, would
determine its coverage/classification.  Whether the machine could both transmit and receive(interactive information exchange) was also relevant.
The group agreed on two classifications (851750, 852812)  but wanted to refer the remaining issue to
the WCO HSC.  There was a difference of opinion on whether a product could be classified in 852510
or 852520, and which one was the appropriate classification.
EC adds 852520 and 852812.  Chinese Taipei added 852812.
[847141]
[847190]
851750
[851780]
852510
852520
852812
[854389]
__________