. /.   WORLD TRADE  
ORGANIZATION  G/IT/W/25 
24 November 2006 
 
 (06-5678) 
Committee of Participants on the Expansion of Trade in 
Information Technology Products Original:   English 
 
 
 
UPDATING THE LIST OF PRODUCTS COVERED UNDER  
THE INFORMATION TECHNOL OGY AGREEMENT (ITA) 
 
Communication from Japan  
 
  The following communication, dated 22 November 2006, is distributed at the request of the delegation of Japan. 
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I. BACKGROUND 
1. Almost ten years have passed since the Mi nisterial Declaration on Trade in Information 
Technology Products (WT/MIN(96)/16, “Informati on Technology Agreement (ITA)”) was concluded 
on 13 December 1996 at Singapore Ministerial Confer ence. During the intervening decade, significant 
development of the IT industry has taken place, in cluding globalization of the industry with their 
supply chain networks and production facilities,  and technological de velopment creating new 
products and production methods, whic h together have contributed to a better quality of life and the 
creation of new employment, including in developing countries.  2. During this first decade of the ITA, many information technology products have experienced 
dramatic technological development. New generation products are much more sophisticated than their 
predecessors; technological convergence has created new types of products with multiple functions; 
and new products have been developed. Reflec ting such technological development, while the 
original product coverage of the ITA was define d with Harmonized System (1996) (“HS”) headings, 
the HS was revised in 2002, and th e next revision is coming into effect in January 2007. Meanwhile, 
the work on Attachment B has made progress to na rrow the classification divergences on many of the 
products contained therein (G/IT/W/6/Rev.3). 
 3.  These developments have generated great uncertainty as to exactly which products are 
covered under the ITA. This uncertainty, in turn, wo uld significantly reduce the effectiveness of the 
ITA as envisioned ten years ago.  
 
II. SUGGESTED ACTIONS 
4.  In order to preserve the eff ectiveness of the ITA, in response to the recent evolution of IT 
products, it is urgently necessary to start working on  enhancing the transparency and predictability of 
the product coverage of the ITA. The Committee of  Participants on the Expansion of Trade in 
Information Technology Products (the “ITA Committee”) should develop a systematic and 
comprehensive approach as outlined below:     G/IT/W/25 
Page 2  
 
  (a) Update the ITA product list with the new HS  codes in accordance with  the following steps
:  
  (i) ITA participants should submit their own lists of ITA products under HS (2002) as 
well as HS (2007), together with the conver sion tables, to the ITA Committee as soon 
as possible, with a specific time frame decided by the ITA Committee;  
 
 (ii) The Secretariat should prepare a compil ation of the revised lists submitted by the 
participants, on which basis the ITA Co mmittee should work promptly on any 
divergences which might be found, with th e aim to preserve the integrity of the 
coverage of the ITA; and  
 
 (iii) Once the ITA Committee reaches consensus, the ITA product list should be revised 
with new HS codes. 
 (b) Accelerate the ongoing work on Attachment B, in particular List V, and complete the work as 
soon as possible  
  The products in Attachment B that have alr eady been settled should be  incorporated to the 
revision of the ITA product list in a) above , and the remaining products should be duly 
incorporated as soon as they are settled. 
 
 Throughout the process, the ITA Committee should work closely with the Customs 
Cooperation Council (“WCO”).   5.  These actions are already envisaged in the te xt of the ITA, as they are intended to give 
concrete effect to paragraph 5 of the Annex, which states the following: 
 
 “5. Participants shall meet as often as necessary … to consider any divergence among them 
classifying information technology products , beginning with the products specified in 
Attachment B. Participants agree on the comm on objective of achieving, where appropriate, a 
common classification for these products with in existing HS nomenclature, giving 
consideration to interpretations and rulings of the [WCO]. In any instance in which a 
divergence in classification remains, partici pants will consider whether a joint suggestion 
could be made to the WCO with regard to upd ating existing HS nomenclature or resolving 
divergence in interpretation of the HS nomenclature.” 
 
6.  In view of the ongoing works of introduction of harmonized system 2002 changes to 
Schedules of Concessions (G/MA/W/23/Rev.3) as well as the expected introduction of harmonized 
system 2007 changes (G/MA/W/81/Rev.1), the ITA Committee should work in cooperation with the 
Committee on Market Access so that the ITA Committ ee can provide meaningful input to the works 
of the Committee on Market Access and ensure coherence between the two.  
III. CONCLUSIONS 
7.  In view of the rapid developments witnessed during the past ten years, it is imperative for the 
ITA participants to work seriously and urgently on preserving and enhancing the effectiveness of the 
ITA as originally envisioned. Japan proposes that the ITA Committee to decide on specific actions as 
suggested above and with a precise timeframe, with a view to completing the work without further 
delay. 
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