WORLD TRADE  
ORGANIZATION   
WT/DS377/15 
11 July 2011 
 (11-3407) 
 Original:   English 
  
 
EUROPEAN COMMUNITIES AND ITS MEM BER STATES – TARIFF TREATMENT  
OF CERTAIN INFORMATION TECHNOLOGY PRODUCTS 
 
Understanding between the European Union
1 and Chinese Taipei 
Regarding Procedures under Articles 21 and 22 of the DSU 
   The following communication, dated 6 July 2011, from the delegation of the European Union and the delegation of Chinese Taipei to the Chairper son of the Dispute Settleme nt Body, is circulated 
at the request of these delegations. 
 
_______________ 
 
  The European Union and the Separate Cust oms Territory of Taiwan, Penghu, Kinmen and 
Matsu would like to inform the Dispute Settlement  Body of the attached "Agreed Procedures under 
Articles 21 and 22 of the Dispute Settlement Unde rstanding" between the European Union and the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu with respect to the dispute EC 
and its Member States – Tariff Treatment of  Certain Information Technology Products  (WT/DS377).  
 
We request that you please circulate the attached  agreement to the Members of the Dispute 
Settlement Body.     
_______________ 
 
                                                      
1 On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on Europe an Union and the Treaty 
establishing the European Community (done at Lisbon , 13 December 2007) entere d into force.  On 29 
November 2009, the WTO received a Verbal Note (WT/L/7 79) from the Council of th e European Union and the 
Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 1 December 
2009, the European Union replaces and  succeeds the European Community. WT/DS377/15 
Page 2  
 
  EC and its Member States – Tariff Treatment of  Certain Information Technology Products 
(WT/DS377) 
 
Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding 
The Dispute Settlement Body ("DSB") adopted  its recommendations and rulings in the 
dispute EC and its Member States – Tariff Treatment of Certain Information Technology Products  
(WT/DS377) on 21 September 2010. 
Pursuant to Article 21.3(b) of the Unders tanding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU") the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and 
Matsu and the European Union ("EU") agreed that  the reasonable period of time to implement the 
DSB recommendations and rulings would be nine (9) months and nine (9) days, expiring on 30 June 
2011 (WT/DS377/14). 
The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu and the EU ("the parties to 
the dispute") have agreed on the following procedur es for the exclusive purposes of this dispute.  
They are designed to facilitate the resolution of the dispute and reduce the scope for procedural 
disputes and are without prejudice to either party's views on the correct interpretation of the DSU: 
1. Should the Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu consider that 
the situation described in Article 21.5 of the DSU exists, the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu will request that  the EU enter into consultations with the 
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.  The Parties agree to 
hold such consultations within 15 days from the date of receipt of the request. After this 15-
day period has elapsed, the Separate Custom s Territory of Taiwan, Penghu, Kinmen and 
Matsu may request the establishment of a panel pursuant to Article 21.5 of the DSU at any time.  
2. At the first DSB meeting at which the Sepa rate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu's request for the establishm ent of an Article 21.5 panel appears on the 
agenda, the EU shall accept the establishment of that panel. 
3. The parties to the dispute shall cooperate to enab le the Article 21.5 panel to circulate its report 
within 90 days of the panel's establishment, excluding such time during which the panel's 
work may be suspended pursuant to Article 12.12 of the DSU. 
4. Either party to the dispute may request the DSB to adopt the report of the Article 21.5 panel at 
a DSB meeting held at least 20 days after the circulation of the report to the Members unless 
either party appeals the report.  
5. In the event of an appeal of the Article 21.5 panel report, the parties to the dispute shall 
cooperate to enable the Appellate Body to circ ulate its report to the Members within 90 days 
from the date of notification of the appeal to th e DSB.  Further, either party to the dispute 
may request the DSB to adopt its recommendations  and rulings at a DSB meeting held within 
30 days of the circulation of the Appellate Body report to the Members. 
6. The Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu may request 
authorization to suspend concessions or other ob ligations pursuant to Article 22.2 of the DSU 
in the event that the DSB rules as a result of a proceeding under Article 21.5 of the DSU that 
a measure taken to comply does not exist or is inconsistent with a c overed agreement.  The 
EU shall not assert that the Separate Cust oms Territory of Taiwan, Penghu, Kinmen and 
Matsu is precluded from obtaining such DSB authorization because its request was made  WT/DS377/15 
 Page 3 
 
 
  outside the time period specified in the first sen tence of Article 22.6 of the DSU.  This is 
without prejudice to the EU's right to have the matter referred to arbitration in accordance 
with Article 22.6 of the DSU. 
7. If the Separate Customs Territory of Ta iwan, Penghu, Kinmen and Matsu requests 
authorization to suspend concessions or other obl igations pursuant to Article 22.2 of the DSU, 
the EU shall have the right to object under Ar ticle 22.6 of the DSU to the level of suspension 
of concessions or other obligations  and/or claim that the principles and procedures set forth in 
Article 22.3 of the DSU have not been followed.   In the event of such objection, the matter 
will be referred to arbitration pursuant to Article 22.6 of the DSU. 
8. The parties to the dispute will cooperate to enab le the arbitrator under Article 22.6 of the DSU 
to circulate its decision within 60 days of the referral to arbitration.  
9. If any of the original panelists is not availabl e for either the Article 21.5 compliance panel or 
the Article 22.6 arbitration (or both), or an y person serving in such proceeding becomes 
unavailable to serve, the parties to the dispute  will promptly consult on a replacement, and 
either party may request the Director-General of the WTO to appoint, within ten days of 
being so requested, a replacement for the proceed ing or proceedings in which a replacement is 
required.  If an original panelist is unavailable to serve in either of the proceedings, or a 
person serving in such proceeding becomes unavailabl e to serve, the parties to the dispute will 
further request that, in making this appointmen t, the Director-General seek a person who will 
be available to act in both proceedings. 
10. The parties to this dispute  will continue to cooperate in a ll matters related to these agreed 
procedures  and agree not to raise any procedural objec tion to any of the steps set out herein.  
If, during the application of these procedures, the parties to the dispute consider that a 
procedural aspect has not been properly addressed in these procedures, they will endeavor to 
find a solution within the shortest time possible that will not affect the other aspects and steps 
agreed herein.  
 
Signed in Geneva, 6 July 2011   
For the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu 
   
 
 
Mr. Yi-fu Lin 
Permanent Representative to the WTO For the European Union 
    
 
 
H.E. Mr. Angelos Pangratis 
Ambassador 
Permanent Representative to the WTO 
 
 
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