WORLD TRADE  
ORGANIZATION  TN/MA/NTR/1 
15 May 2006 
 (06-2363) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Non-Tariff Barriers - Requests
 
 
Communication from the European Communities  
 
  The following communication, dated 28 April 2006, is being distributed at the request of the delegation of the European Communities. 
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  TN/MA/NTR/1 
Page 2 
 
 
BILATERAL REQUESTS ON AUTOMOTIVE TAXES1 
BY THE  EUROPEAN  COMMUNITIES 
 
 
1. Member A 
 
No HS heading Product description 
 Non-tariff barriers Solution Comment 
1 8703 Automotives – 
passenger cars  Luxury tax of 25 percent over a 
certain value. Only applicable to cars. 97.6% of cars affected are imported, 93% from EU. Elimination or change in 
thresholds. Problem of practice of setting 
arbitrary thresholds. The EC has no objections to luxury taxes if general application to other luxury goods and not targeted on imports (especially, as in this case, imports 
from one trading partner). 
 
                                                      
1 These requests are without prej udice to the existing rights of the EC under the WTO Agreements and in particular under Article  III:2 of the 
GATT 1994.  
   TN/MA/NTR/1
 Page 3BILATERAL REQUESTS ON AUTOMOTIVE TAXES2 
BY THE EUROPEAN COMMUNITIES 
 
  
2. Member B 
 
No HS heading Product description Non-tariff barriers 
 Solution Comment 
1 8703 Automotives– 
passenger cars Locally assembled vehicles are 
subject to reductions for 
Commodity tax (up to 35 percent).  No less favourable treatment 
for imported cars. Problem of practice of 
discriminatory application of tax 
due to tax breaks for local manufacturers, not the tax itself. 
 
                                                      
2 These requests are without prej udice to the existing rights of the EC under the WTO Agreements and in particular under Article  III:2 of the 
GATT 1994.  
  TN/MA/NTR/1 
Page 4 
BILATERAL REQUESTS ON AUTOMOTIVE TAXES3 
BY THE EUROPEAN COMMUNITIES 
 
3. Member C 
 
No HS heading Product description Non-tariff barriers 
 Solution Comment 
1 8703 Automotives– 
passenger cars High excise taxes and national 
cars granted a 50-percent excise tax rebate. Taxes higher for cars 
than multi-purpose vehicles and 
4x4. No less favourable treatment 
for imported cars by halving of excise tax and dismantling of 
tax rebates. Same tax range for 
all forms of vehicles. Problem of discriminatory 
treatment of imported vehicles (especially cars) due to tax breaks 
for domestic cars and differential 
tax rates.  
2 8703 Automotives– 
passenger cars High and de facto prohibitive 
excise taxes for certain vehiclesReduction in excise taxes Prohibitive tax levels. 
 
 
                                                      
3 These requests are without prej udice to the existing rights of the EC under the WTO Agreements and in particular under Article  III:2 of the 
GATT 1994.  
   TN/MA/NTR/1
 Page 5BILATERAL REQUESTS ON AUTOMOTIVE TAXES4 
BY THE EUROPEAN COMMUNITIES 
  
4. Member D 
 
No HS heading Product description Non-tariff barriers Solution Comment 
 
1 8703 Automotives – 
passenger cars Capital Value Tax not charged 
for locally assembled vehicles.  No less favourable treatment 
for imported cars. Problem of practice of 
discriminatory application of tax 
due to tax breaks for local 
manufacturers, not the tax itself. 
2 8703 Automotives – 
passenger cars High and de facto prohibitive 
excise taxes for certain vehicles (accumulated with import 
duties more than 300 percent) Reduction in taxes Cumulative use of various taxes to 
the effect that the overall level is prohibitive. 
  
                                                     
 
4 These requests are without prej udice to the existing rights of the EC under the WTO Agreements and in particular under Article  III:2 of the 
GATT 1994.  
  TN/MA/NTR/1 
Page 6 
BILATERAL REQUESTS ON AUTOMOTIVE TAXES5 
BY THE EUROPEAN COMMUNITIES 
 
5. Member E 
 
No HS 
heading 
 Product description Non-tari ff barriers Solution Comment 
1 8703 Automotives – 
passenger cars Car tax base is CIF price for 
imported vehicles compared to ex-factory price for locally 
produced cars.  No less favourable treatment 
for imported cars. Problem of practice of inflated 
value for imported cars compared to local cars, upon which the tax is 
applied. 
  
 
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5 These requests are without prej udice to the existing rights of the EC under the WTO Agreements and in particular under Article  III:2 of the 
GATT 1994.