WORLD TRADE  
ORGANIZATION  WT/DS377/1 
G/L/853 16 June 2008 
 
(08-2788) 
 Original:   English 
  
 
EUROPEAN COMMUNITIES AND ITS MEM BER STATES – TARIFF TREATMENT  
OF CERTAIN INFORMATION TECHNOLOGY PRODUCTS 
 
Request for Consultations by Chinese Taipei
 
 
 
 The following communication, dated 12 June 20 08, from the delegation of Chinese Taipei to 
the delegation of the European Communities and to the Chairman of the Dispute Settlement Body, is 
circulated in accordance with  Article 4.4 of the DSU. 
 
_______________ 
 
  My authorities have instructed me to request  consultations with the European Communities 
(EC) and its member States 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 tariff treatment the EC and its member States accord to 
flat panel displays, set-top boxes (STBs) with a communication function, and "input or output units" 
and facsimile machines.  
As a participant to the Ministerial Declaration on Trade in Information Technology Products , 
or "ITA" (Information Technology Agreement)
1, the EC and its member States modified their 
Schedules of Concessions to the GATT 1994 (Schedul es) to reflect the commitments made under the 
ITA.2  Such modifications became effective 2 July 1997.3  Accordingly, the EC and its member States 
shall grant duty-free treatment for the aforemen tioned products.  However, as a result of the 
application of certain EC measures, the EC and its member States do impose duties on these products. 
 
This request for consultations is intended to address the EC's measures as described herein. 
This request also covers any amendments or extens ions to these measures as well as any related laws, 
regulations, practices and implementing measures.  
 The measures pursuant to which the EC and its  member States impose duties include those 
under the following headings:   
 
Flat panel displays  
On 31 March 2005, the EC published Council Re gulation (EC) No 493/2005, which provides 
that certain flat panel displays using LCD tec hnology capable of reproducing video images from a 
source other than an automatic data-processing machin e would not be covered by the ITA or by the 
                                                     
 
1 Ministerial Declaration on Tr ade in Information Technology Products, 13 December 1996 
(WT/MIN(96)/16), see also Implementation of the Minist erial Declaration on Trade in Information Technology 
Products, 2 April 1997 (G/L/160). 
2 G/MA/TAR/RS/16 (2 April 1997). 
3 WT/Let/156 (15 August 1997). WT/DS377/1 
G/L/853 Page 2 
 
 
  Communication on its implementation (Counc il Decision 97/359/EC of 24 March 1997).
4  O n  
26 April 2005, the EC published Commission Regulation (EC) No 634/2005, which provides that flat panel displays  with certain attributes would be classified as dutiable.
5  On 29 December 2005, the EC 
published Commission Regulation (EC) No 2171/2005, which also provides that certain flat panel 
displays would be classified as dutiable if they had certain attributes.6  On 30 December 2006, the EC 
published Uniform Application of the Combined No menclature (2006/C 332/05) providing that flat 
panel displays with certain attributes may not be granted duty-free and would be classified as 
dutiable.7  
 
 As a result of the measures at issue, EC member States assess duties on certain flat panel 
displays.  
Furthermore, although the EC has temporarily su spended the collection of duties on some flat 
panel displays, including certain parts thereof, it still  appears to fail to accord tariff treatment that is 
no less favourable than that pr ovided for in its Schedule. 
STBs with a communication function   
 
On 7 May 2008, the EC published an amendmen t to the Explanatory Notes to the EC's 
Combined Nomenclature (CN), which provides that the duty-free heading CN 8528 71 ("set-top boxes with a communication function") does not include  STBs with modems of certain types (e.g ., Ethernet 
modems) or STBs which incorporate a device perform ing a recording or reproducing function (e.g., a 
hard disk or DVD drive).
8  Moreover, in the same amendment, the EC added an explanatory note to 
accompany CN 8521 90 00 indicating that this subhe ading includes STBs which incorporate a device 
performing a recording or reproducing func tion (e.g., a hard disk or DVD drive).9   
 As a result of the measures at issue, EC  member States assess duties on STBs with a 
communication function.  
 
"Input or output units" and facsimile machines 
 
On 9 March 1999, the EC published Commis sion Regulation (EC) No 517/1999, which 
provides that certain "output units" would be classified as dutiable.10  Moreover, on 9 March 2006, the 
EC published Commission Regulation (EC) No 400/2006 , which provides that certain "output units" 
or facsimile machines would be classified as dutiable.11  Also, the EC Customs Code Committee 
further issued a statement indicating that if a mu ltifunctional device (fax, prin ter, scanner, copier) has 
the capability of photocopying in black and white 12 or more pages per minute (A4 format), it would 
be classified as photocopying apparatus.12  Subsequent to that statement, on 31 October 2006, the EC 
                                                      
4 Council Regulation (EC) No 493/2005 of 16 March 2005, O.J. L 82 (31 March 2005), pp. 1-2. 
5 Commission Regulation (EC) No 634/2005 of 26 April 2005, O.J. L 106 (27 April 2005), pp. 7-9. 
6 Commission Regulation (EC) No 2171/2005 of 23 December 2005, O.J. L 346 (29 December 2005), 
pp. 7-9. 
7 Uniform Application of the Combined Nomeclature (CN) (Classification of goods), 2006/C 332/05, 
O.J. C 332 (30 December 2006), pp. 7-9.   
8 Explanatory Notes to the Combined Nomenclature of the European Communities, 2008/C 112/03, 
O.J. C 112 (7 May 2008), pp. 8-9. 
9 Explanatory Notes to the Combined Nomenclature of the European Communities, 2008/C 112/03, 
O.J. C 112 (7 May 2008), pp. 8-9. 
10 Commission Regulation (EC) No 517/1999 of 9 March 1999, O.J. L 61 (10 March 1999), pp. 23-24. 
11 Commission Regulation (EC)  No 400/2006 of 8 March 2006, O.J. L 70 (9 March 2006), pp. 9-11. 
12 Customs Code Committee, Tariff and Statistical Nomenclature Section, Report of conclusions of the 
360th meeting of the Committee , TAXUD/555/2005-EN, Annex VII (March 2005).  WT/DS377/1 
 G/L/853 
 Page 3 
 
 
  published Commission Regulation (EC) No 1549/2006, which provides that certain "output units" or 
facsimile machines capable of copying more than 12 monochrome pages per minute would be 
classified as dutiable.13 
 As a result of the measures at issue, EC me mber States assess duties on certain "output units" 
or facsimile machines.  
  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu considers that the 
aforementioned measures at issue taken by the EC  concerning flat panel displays, STBs with a 
communication function, and "input or output units," and facsimile machines appear to be inconsistent 
with the EC and its member States' obligations under Articles II:1(a) and II:1(b) of the GATT 1994 
and their Schedules.  The measures in question al so nullify or impair, within the meaning of 
Article XXIII:1 of the GATT 1994, benefits accruing to the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu directly or indirectly under the GATT 1994.   
In addition, with respect to STBs, the Tariff and Statistical Nomenclature Section of the 
Customs Code Committee delivered favorable opinions with respect to the proposed amendments to 
the Explanatory Notes contained in 2008/C 112/03 in October 2006 and May 2007, respectively.  It did not publish the amended explanatory notes in  the EC Official Journal until 7 May 2008.  
Furthermore, EC member States were applying du ties to STBs  using the approach specified in 
2008/C 112/03 prior to 7 May 2008.  The Separate  Customs Territory of Taiwan, Penghu, Kinmen 
and Matsu considers that these actions appear to be inconsistent with th e EC's obligations under 
Articles X:1 and X:2 of the GATT 1994. 
 The Separate Customs Territory of Taiwan, Pe nghu, Kinmen and Matsu reserves the right to 
raise additional facts and claims regarding th e above-mentioned measures during the course of 
consultations. 
 My authorities look forward to receiving your reply to this request and to fixing a mutually 
acceptable date for consultations. 
 
__________ 
 
 
 
 
                                                     
 
13 Commission Regulation (EC)  No 1549/2006 of 17 October 2006, O.J. L 31 (31October 2006), pp. 1, 
541.