WORLD TRADE  
ORGANIZATION  WT/DS376/1 
G/L/852 2 June 2008 
 
(08-2566) 
 Original:   English 
  
 
EUROPEAN COMMUNITIES AND ITS MEM BER STATES – TARIFF TREATMENT  
OF CERTAIN INFORMATION TECHNOLOGY PRODUCTS 
 
Request for Consultations by Japan
 
 
 
 The following communication, dated 28 May 2008, from the delegation of Japan to the delegation of the European Communities and to th e Chairman of the Dispute Settlement Body, is 
circulated in accordance with  Article 4.4 of the DSU. 
 
_______________ 
 
  Upon instruction from my authorities, I hereby wish to convey the request of the Government of Japan for consultations with the European Comm unities and its member States (hereinafter referred 
to as "the EC") pursuant to Article 4 of the Understanding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU") and Article XXII:1 of the General Agreement on Tariffs and Trade 
1994  ("GATT 1994"), regarding the EC's tariff treatm ent of multifunctional printers ("MFPs"), liquid 
crystal display ("LCD") monitors, and set-top boxes ("STBs") with a communication function.    
As a participant in the Ministerial Declaration on Trade in Information Technology Products , 
or "ITA" (Information Technology Agreement)
1, the EC committed itself to eliminate its tariffs on 
certain information technology products, such as "i nput or output units" including printers and LCD 
monitors, facsimile machines, and STBs with a comm unication function.  Specifically, as to printers, 
the EC's ITA commitments are set forth in ITA Attachment A, Section 1 (HS96 8471.60 "input or output units") and Attachment B ("Network e quipment:  …  input or output units ….").
2  A s  t o  
facsimile machines, the EC's ITA commitments are set forth in ITA Attachment A Section 1 (HS96 
8517.21 "facsimile machines") and Attachment B ("Ne twork equipment:  …  input or output units 
…."). 3  As to LCD monitors, the EC's ITA commitments  are set forth in ITA Attachment A, Section I 
(HS96 8471.60 "input or output units") and Att achment B ("Flat panel displays (including 
LCD…)....").4  As to STBs with a communication function, the EC's ITA commitments are set forth in 
ITA Attachment B ("Set top boxes which have a communication function…").  
 
 The EC modified its Schedule of Concessions ("EC Schedule") to reflect the commitments it made under the ITA.
5  Such modifications became effective on 2 July 1997.6  Accordingly, under 
Schedule LXXX, the EC has the obligation not to  apply any customs duties and other duties and 
charges of any kind, within the meaning of Article II: 1(b) of the GATT 1994, with respect to the 
above products.  
                                                      
1 Ministerial Declaration on Tr ade in Information Technology Products, 13 December 1996 
(WT/MIN(96)/16). 
2 See id. 
3 See id. 
4 See id. 
5 G/MA/TAR/RS/16 (2 April 1997).     
6 WT/Let/156 (15 August 1997). WT/DS376/1 
G/L/852 Page 2 
 
 
   This request for consultations is intended to address current EC laws, regulations, policies and 
practices, as well as any changes or amendments to those laws, regulations, policies or practices that 
may be in process or may be implemented in the future.  MFPs  
 
 With regard to MFPs, the measures at i ssue include Commission Regulation No. 517/1999 of 
9 March 1999, Report of conclusi ons of the 360th meeting of the Committee held in Brussels from 
26 January 2005 to 28 January 2005
7, Commission Regulation No. 400/2006 of 8 March 2006, 
Commission Regulation No. 1549/2006 of 7 Oct ober 2006, Commission Regulation No. 1214/2007 of 
20 September 2007, and the EC Combined Nomenclature (CN) for 2008 ("2008 CN")8.  These 
measures provide the basis for other measures at is sue in regards to MFPs, including the past, present 
and/or future application by the EC of a six pe r cent customs duty on imports of MFPs, in excess of 
the EC's tariff commitment for "input or output units" or facsimile machines.  
 
 The 2008 CN is binding on all EC member states.  The 2008 CN established CN code 8443.31, which provides as follows:   
CN code Description Conventional rate 
of duty (%) 
1 2 3 
8443 
 Printing machinery used for printing by means of plates, cylinders 
and other printing components of  heading 8442; other printers, 
copying machines and facsimile ma chines, whether or not combined; 
parts and accessories thereof:   
8443 31  
 - - Machines which perform two or more of the functions of printing, 
copying, or facsimile transmissi on, capable of connecting to an 
automatic data-processing machine or two a network:   
8443 31 10 
 - - - Machines performing the func tions of copying and facsimile 
transmission, whether or not with a printing function, with a copying speed not exceeding 12 monochrome pages per minute  
 
Free 
 - - - Other:  
8443 31 91 
 - - - - Machines performing a copying function by scanning the original 
and printing the copies by means of  an electrostatic print engine  
6 
8443 31 99 - - -Other Free 
 
 As a result of the measures at issue, th e EC classify certain MFPs under subheading 
8443.31.91 of the CN.  The EC thus apply a six pe r cent duty on such products, which appears to be 
inconsistent with the EC's commitment not to ap ply any customs duties and other duties and charges 
of any kind, within the meaning of Article II:1 (b) of the GATT 1994, with respect to all "input or 
output units" and facsimile machines under the EC Schedule and ITA.  Japan is challenging the 
aforementioned EC measures as such, as well as the way in which those tariff schedules have been 
and will be applied so as to impose higher than permitted import duties.  
                                                     
 
7 Customs Code Committee, Tariff and Statistical Nomenclature Section (Mechanical), Report of 
conclusions of the 360th meeting of the Committee held in Brussels from 26 January 2005 and 28 January 2005, 
Brussels, March 2005, TAXUD/555/2005-EN. 
8 Commission Regulation (EC) No. 1214/2007 (20 September 2007).  The 2008 CN went into effect on 
1 January 2008.  WT/DS376/1 
 G/L/852 
 Page 3 
 
 
  LCD Monitors 
 
 With regard to LCD monitors, the measures at issue are Council Regulation No. 493/2005 of 16 March 2005, Commission Regulation No. 634/ 2005 of 26 April 2005, Commission Regulation 
No. 2171/2005 of 23 December 2005, Commission Regulation No. 1549/2006 of 7 October 2006, 
Uniform Application of the Combined Nomenclature No. 2006/C332/05 (published 
30 December 2006), Commission Regulation No. 1214/2007 of 20 September 2007, and the 2008 CN.  These measures provide the basis for other me asures at issue in regards to LCD monitors, 
including the past, present and/or future appli cation by the EC of a 14 per cent customs duty on 
imports of LCD monitors, in excess of the EC's tari ff commitment for "input or output units" or flat 
panel display devices.     Under Council Regulation No. 493/2005, Co mmission Regulations 634/2005 and 2171/2005, 
the EC classified certain LCD monitors  as dutiable "video monitors".   
 
 Furthermore, as part of the amendments inco rporated into the 2008 CN, the EC established 
CN code 8528.51 and 8528.59, both of which provide as follows:  
CN code Description Conventional rate 
of duty (%) 
1 2 3 
8528 
 Monitors and projectors, not incorporating television reception 
apparatus; reception apparatus for television, whether or not 
incorporating radio-broadcast receive rs or sound or video recording 
or reporducing apparatus:   
 …  
 -Other monitors:   
8528 51 00 
 - - Of a kind solely or principally used in an automatic data-
processing system of heading 8471   
Free 
8528 59  - - Other :   
8528 59 10  - - - Black and white or other monochrome 14 
8528 59 90  - - - Colour 14(1) 
 
(1) Customs duty autonomously suspended, until 31 December 2008, for monitors with a diagonal measurement 
of the screen of 48,5 cm or less and with an aspect ratio of 4:3 or 5:4 (TARIC code 8528 59 90 30). 
 
 As a result of the measures at issue, the EC  classify certain LCD monitors under subheading 
8528.59.10 or subheading 8528.59.90 and, thus, apply a 14 per cent duty on such products.  The application of a 14 per cent duty appears to be inc onsistent with the EC's commitment not to apply 
any customs duties and other duties and charges of an y kind, within the meaning of Article II:1 (b) of 
the GATT 1994, with respect to "input or output units" and flat panel display devices under the EC Schedule and ITA.  Japan is challenging both the fo regoing EC measures as such as well as the way in 
which those tariff schedules have been and/or w ill be applied so as to impose higher than permitted 
import duties.  WT/DS376/1 
G/L/852 Page 4 
 
 
  STBs with a communication function 
 
 With regard to STBs with a communication function, the measures at issue are Explanatory 
Notes to the Combined Nomenclature of the European Communities, 2008/C 112/03 (7 May, 2008), 
Commission Regulation  No. 1214/2007 of 20 Sept ember 2007 and the 2008 CN.  These measures 
provide the basis for other measures at issue in regards to STBs with a communication function, 
including the past and/or future application by the EC of a 13.9 per cent customs duty on imports of STBs with a communication function, in excess of  the EC's tariff commitment for STBs with a 
communication function. 
 
The EC established CN code 8521.90 and 8528. 71, both of which provide as follows: 
 
CN code Description Conventional rate of 
duty (%) 
1 2 3 
8521  Video recording or reproducing apparatus, whether or not 
incorporating a video tuner:   
 …  
8521 90 00  - - Other :  13.9 
8528  
 Reception apparatus for television, whether or not 
incorporating radio-broadcast receivers or sound or video 
recording or reproducing appa ratus: Not designed to 
incorporate a video display or screen: Video tuners:   
 ...  
8528 71 13  -- Apparatus with a microprocessor-based device 
incorporating a modem for gaining  access to the Internet, and 
having a function of interactive information exchange, capable 
of receiving television sign als ("set-top boxes with 
communication function")  Free 
 
 The measures at issue provide that the subheading 8528.71.13 does not include set top boxes with modems of certain types (e.g., Ethernet m odems) or set top boxes which incorporate a device 
performing a recording or reproducing function (e .g., a hard disk or DVD drive) and that the 
subheading 8521.90.00 includes set top boxes which incorporate a device performing a recording 
function.  As a result, the EC classify certain STBs with a communication function under subheading 
8521.90.00 of the CN.  The EC therefore apply a 13.9 per cent duty on such products, which appears 
to be inconsistent with the EC's commitment not  to apply any customs duties and other duties and 
charges of any kind, within the meaning of Article II:1 (b) of the GATT 1994, with respect to all STBs with a communication function under the EC Schedule and ITA.   WTO Inconsistency of the EC Measures at Issue    
 The Government of Japan considers the fo regoing measures at issue taken by the EC 
concerning MFPs, LCD monitors, and STBs with a co mmunication function appear to be inconsistent 
with the EC's obligations under the relevant provisions of GATT 1994 and the Marrakesh Agreement 
Establishing the World Trade Organization  (the Marrakesh Agreement) including, but not limited to, 
Article II of the GATT 1994.  The measures in question also nullify or impair , within the meaning of 
Article XXIII:1 of the GATT 1994, benefits accruing to Japan directly or indirectly under the 
GATT 1994.  WT/DS376/1 
 G/L/852 
 Page 5 
 
 
   The Government of Japan reserves the right to raise further facts and claims during the course 
of consultations.   We look forward to receiving your reply to this request and in fixing a mutually acceptable 
date for consultations. 
 
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