WORLD TRADE  
ORGANIZATION  TN/S/W/32 
18 February 2005 
 (05-0712) 
Council for Trade in Services 
Special Session Original:   English 
 
 
 
COMMUNICATION FROM BULGARIA, CANADA,  
THE EUROPEAN COMMUNITIES AND ROMANIA 
 
Mode 4 – A Common Approach to Scheduling  
 
  The following communication, dated 17 Februa ry 2005, from the delegations of Bulgaria, 
Canada, the European Communities and Romania is being circulated to the Members of the Council 
for Trade in Services.  
 
_______________ 
  
NB:  This paper and the suggestions made in it are not intended to be a substitute for discussions on 
market access.  Neither should re-scheduling commitments acco rding to the common approach 
suggested be used as an opportunity to reduce the le vel of commitments of an individual Member.  As 
with sector-specific classification proposals, the qu estion of how to handle the transition in schedules 
to the common approach indicate d below needs to be addressed. 
1. It can be difficult to assess (and in so me cases even understand) the market access 
opportunities offered through WTO Members' horizontal Mode 4 commitments.  This is due not least 
to the divergent ways in which these commitments have been scheduled.  A large number of Members 
have scheduled their commitments by category of  Mode 4 service supplier (e.g.  intra-company 
transfers, business visitors, contractual service supplie rs).  Others have scheduled with reference to 
the job type covered (e.g.  managers, executives, sp ecialists) without indicating what service supplier 
categories are covered.  Yet others  refer instead to general requirements for entry with no specific 
reference to any service supplier category or job t ype and a further group limit their entry to a 
reference back to national laws and regula tions without indicating what market access 
restrictions/permissions these contain.  Finally it should be noted that a small number of Members – 
mostly countries which have commi tments in only a few sectors or sub-sectors - have scheduled no 
horizontal Mode 4 commitments/restric tions, but have dealt with this issue on a sector specific basis.  
Nevertheless, for this last group, there is usually identical scheduling language for each sector specific 
commitment on Mode 4. 
2. In our view, the clarity of GATS schedules in  relation to Mode 4 w ould be improved if WTO 
Members were to follow a common approach to form atting their Mode 4 commitments.  Trade policy 
analysts and negotiators would be able to compar e and contrast offers and commitments and in the 
end more accurately assess their real "liberalizati on value".  Individual business people and companies 
of all sizes would be able to understand the comm itments better and see if and how they facilitate 
temporary entry and reduce the costs of doing business in other countries.  This paper suggests how this common formatting could be achieved and is intended to provi de a non-binding tool for Members 
as they prepare their revised (or initial) offers.   TN/S/W/32 
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 3. The lack of transparency can be a major barrier to international trade in services through 
Mode 4 and, because of inter-linkages between the m odes of supply, through the other modes as well.  
Better information in the schedules - whilst not an end in itself - will foster more trade and investment 
in services in both developing and developed countries.  
4. A common and comparatively easy to read format would be achieved if WTO Members were 
to schedule their commitments according to common categories of service providers
.  This is the 
currently the single most favoured way of schedu ling amongst WTO Members (note that all recently 
acceded WTO Members have scheduled in this way and a number of initial  offers have moved 
towards this approach) and leaves less room for ambi guity than an approach based on job type.  Using 
this approach, WTO Members would: 
i) use the same terminology for each main category and sub-category of service provider .  As 
such, commitments would be listed under five ma in headings: (a) "intra-corporate transferees 
- ICT", (b) "business visitors - BV", (c) "contractual service suppliers - CSS", (d) "independent professionals – IPs" and (e) "oth er".  These would in turn be divided where 
necessary into sub-categories such  as "senior managers" and "specialists" for ICTs, "service 
sellers" for BVs.  Annex 1 provides a summary explanation of the different categories and 
sub-categories proposed.  If some Members wished to continue to use existing names from their national temporary entry regimes, for co mparability and transparency, they could put 
that name in parenthesis next to the co mmon terminology: e.g., Business visitors (" service 
sellers ") or Contractual Service Suppliers  (" Professionals on contract" ).  Where no 
commitments are being made for a particular category or sub-category, Members would not 
list the (sub-)category in question. 
ii) list the definitional elements that are re levant for each category (or sub-category)
.  The 
Secretariat's note on "Categories of Natural Pe rsons subject to commitments under Mode 4" 
(Job (03)/195) shows that there are common definitional elements used by many WTO 
Members.  Under the common format approach , Members would be encouraged to ensure 
that their definitions incorporate as many co mmon elements of the definition as possible.  
Members would not be asked to adopt a specific definition of a particular  category, but rather 
to describe or define the categories covered by their commitments as much in conformity as possible with the illustrative list of common elemen ts.  In this way, Members would be able 
to retain flexibility to adapt the definitions to reflect their national temporary entry regimes.  
To assist Members, Annex 1 to this paper also provides an illustrative list of common 
elements in the definitions of each categor y, adapted from Job (03)/195 and taking into 
account the definitions used in the DDA offers  that have been made to date.    
iii) indicate – where applicable – the market access and national treatment conditions which are 
relevant  for each category and where necessary each sub-category.  Where there are no  
limitations to MA or NT, it would not be neces sary for Members to say so explicitly in their 
commitments.   
iv) indicate the length of temporary entry and stay permitted  for each category as well as whether 
multiple entries and extensions are possible.    
Members would continue to have the opportunity to include generic elements which are applicable to 
all categories of Mode 4 service supplier. 
  TN/S/W/32 
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 Annex 1 
Main categories and sub-categories, with common definitional elements.  
 
(a) Intra-corporate transferees (ICTs) : 
 Whether or not WTO Members have scheduled explicit commitments for this category, all 
countries facilitate the movement of intra-corporate transfers of certain personnel either in law or in 
practice to some degree.  This is because countri es recognise that – if they wish to attract and retain 
investment – they must respond to in vestors' needs.  And in an inc reasingly inter-connected and inter-
dependent work, companies – particularly those in the services sector – need to  be able to move their 
personnel internationally if they are to implemen t their global business strategy and – even more 
crucially – to respond to clients needs and to provide services effectively and efficiently. 
 The relevant sub-categories would be (i) execu tives, (ii) senior managers, (iii) specialists, 
(iv) persons entering for career development purpo ses and (v) others (for example, persons providing 
in-house services).  NB:  Some WTO Members have merged the sub-categories "executives" and 
"senior managers" in their schedules.  They would conti nue to be able to do so under this approach. 
  Definitional Elements : 
• Work within a juridical person established in the territory of another WTO Member; 
• Are temporarily transferred in the context of  the provision of a service through commercial 
presence (Mode 3) to the territory of the WTO Member taking the commitment; 
 (a).1. Executives   
- Primarily direct the management of the organisation, exercising wide latitude in decision 
making; 
- Do not perform tasks directly related to  the provision of services by the commercial 
presence. 
(a).2. Senior managers  
- Primarily direct the organisation, or a department or sub-division thereof; 
- Have discretionary control over day-to-day activities, including personnel actions; 
- Supervise and control other supervisor y, professional or managerial staff; 
- Do not include first-line managers, unless those supervised are professionals. 
(a).3. Specialists  
- Possess knowledge at an advanced level of expertise; 
- Possess proprietary knowledge  of the organisation; 
- Includes members of licensed/regulated professions. TN/S/W/32 
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 (a).4. Persons entering for career development purposes
 
- Are being transferred for career development purposes or to obtain training in business 
techniques or methods. 
(a).5. Other sub-categories  
Any type of person which does not fall into one of the sub-categories listed above, for 
example persons entering to provide services in- house, or persons who do not fall within one 
of the sub-categories listed above and who ente r to enable the commercial presence in the 
host Member to provide a specific service to a specific client. 
(b) Business Visitors:  
 As with ICTs, all WTO Members allow business visitors to enter their country, either under a 
specific regime, or through general short stay  visas which are also used by tourists. 
 Possible sub-categories would include (i) service sellers and (ii) persons responsible for 
setting up a commercial presence.  Those WTO Memb ers that have merged these sub-categories in 
their schedules would continue to be able to do so. 
Definitional Elements:  
• Are representatives of a service supplier of another WTO Member; 
• Do not engage in making direct sales to the general public or in supplying services 
themselves; 
• Do not receive remuneration from a source located within the host Member. 
(b).1. Service sellers  
- Enter to negotiate or conclude agreemen ts on the sale of services for that service 
supplier; 
- Carry out similar activities, including attending business meetings, sales fairs and 
conferences. 
 (b).2. Persons responsible fo r setting up a commercial presence  
- Are responsible for setting up a commercial presence of the service supplier in the host 
Member; 
- The service supplier has no comme rcial presence in that Member; 
- Work in a senior position within the service supplier. 
(c) Contractual service suppliers (CSS)  
 This category is also sometimes referred to in  schedules as "Professionals" or  "persons (of 
an enterprise) engaged in substantive business ac tivities".  It covers those cases where a foreign-
based service supplier has won a contract to prov ide services to a client in the Member taking the 
commitment which requires the presence of employees of the service supp lier in that Member in order 
to deliver the service.  Because there does not ha ve to be a commercial presence in the Member 
taking the commitment, the contractual service s upplier category is of particular interest to 
developing countries and to small and medium sized enterprises in any country.  TN/S/W/32 
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  Definitional Elements:   
• Enter as employees of a commercial presence based in another Member which has obtained a 
bona fide contract to provide services in the WTO Member taking the commitment, where the 
person(s) entering will not be in a dependen t working  relationship with the client;  
• Persons entering have appropriate  educational and professional qua lifications relevant to the 
service to be provided; 
• The person(s) entering can only provide services di rectly related to the service activity which 
is the subject of the contract; 
• Receives remuneration from his/her employer and not from the client. 
(d) Independent professionals (IP)  
 In this case, the service supplier is a natural person, who has won a contract to provide 
services to a client in the Member taking the comm itment which requires his/her presence in that 
Member in order to deliver the service.   
 Definitional Elements : 
• Are self-employed persons primarily based in the territory of another WTO Member; 
• Have obtained a bona fide contract to provide services in the WTO Member taking the 
commitment, where the IP will not be in a depe ndent working  relationship with the client;  
• The IP has appropriate educational and professional qualifications relevant to the service to be 
provided; 
• The IP can only provide services directly related to the service activity which is the subject of 
the contract.  
(e) Other : 
Mode 4 service suppliers which: 
• do not fit into one of the three categories e numerated above, for examp le ships crews, an 
internationally known musical or theat re troupe on tour, foreign correspondents, and/or 
athletes and their entourage (coach, physiotherapist etc) participating in a sporting event.  Without prejudice to the question of whether or not they are covered by the scope of the GATS 
by virtue of the Annex on Movement of Natural Persons, those WTO Members that have scheduled commitments for persons seeking entry on the basis of employment contracts would 
also fall within this ambit. 
or 
• a WTO Member wishes to draw special attention to, such as "Installers". 
could be included in the horizontal section of the schedule under a catch-all category "Other".  
Alternatively, where the type of service supplier is  specific to a sub-sector (or small group of sub-
sectors), WTO Members may wish to include scheduling language only in the sector specific part.   
 TN/S/W/32 
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 Nota Bene :  Whilst we suggest that the category headi ngs above are respected by all WTO Members 
to allow for easier reading and comparison of the schedules, some types of service supplier defy easy 
categorisation because of differences in national laws and practices
1.  From a domestic perspective, 
this categorisation can be important because it will determine what migration regime applies including 
– for example – whether or not a work permit is required.  WTO Members should be free to decide 
under which of the five categories outlined in this paper commitments relating to any particular type 
of service supplier would be scheduled based on th e specificities of their own national laws and 
practices.  It is not the intention of this paper to suggest that any one categorisation be imposed on 
WTO Members. 
__________ 
 
    
                                                     
 
1 A case in point is a category which we shall refer to – for the purposes of this paper - as "After-sales 
service providers".  When machinery and/or equipment is purchased, a condition of purchase may be that the installation, maintainence and/or repair of that product is carried out by the supplier or by a company which is 
sub-contracted by the supplier to do this.  The persons who undertake this installation, maintenance and/or 
repair are the "After-sales service providers".    De pending on the national migration law in question, a WTO 
Member may consider these persons to be "Business Vi sitors", "Contractual Service Suppliers" or a separate 
category altogether.