WORLD TRADE  
ORGANIZATION  G/IT/W/26 
12 January 2007 
 (07-0162) 
Committee of Participants on the Expansion of Trade in 
Information Technology Products Original:   English 
 
 
 
 COVERAGE FOR INFORMATION TECHNOLOGY PRODUCTS UNDER  
THE INFORMATION TECHNOL OGY AGREEMENT (ITA) 
 
Communication from the United States  
 
  The following communication, dated 11 January 2007, is distributed at the request of the delegation of the United States.  
_______________ 
 
 1. During the last meeting of the ITA Committee on 31 October 2006, the Chair recommended that informal consultations be scheduled to addr ess concerns raised by several Members regarding 
Information Technology Agreement (ITA) products th at are in danger of no longer receiving the tariff 
treatment provided by the ITA.  These consultati ons have been scheduled for 19 January 2007.  
Several Members also asked the United States for mo re information about some of the specific ITA 
products in question.  We are ha ppy to provide this information. 
 2. The United States is concerned about specific actions or proposals by some Members to no 
longer guarantee duty-free treatment for certain IT A products.  We understand that duties as high as 
14 percent could be applied to imports of these IT A products, products that are not only commonly 
used by millions of businesses and consumers but  are produced and exported from many developing 
countries such as China, Mexico, Malaysia, Indonesi a, Philippines, Thailand, Turkey, Costa Rica, 
Brazil, India, and South Africa.  Total expor ts of these products were valued as high as 
US$154 billion in 2005.   
 
3. In our view, these products fall under the product descriptions provided in Attachments A and 
B of the Agreement.  As such, duties on such produc ts should continue to be bound and eliminated in 
Members’ customs schedules.   
4. However, we understand that at least one Me mber is of the view that the following ITA 
products are “additional products” within the meaning of  paragraph 3 of the Annex to the Agreement.  
While these products may have additional features  or technologies  than older, less sophisticated 
versions of these products, they are not additional products .  For example, just as we would not 
consider cars with Global Positioning Satellite (GPS)  systems to no longer be cars, we find it illogical 
to interpret ITA product descriptions so that set top boxes with a hard drive are no longer set-top 
boxes or units of ADP machines that can combin e several functions as no longer units of ADP 
machines.   5. This should not be a contentious issue in our  view.  Over the past ten years, advances in 
technology have resulted in new features or have improved the efficiency of many products on the 
marketplace.  ITA products are no exception.  To claim that these products are no longer covered G/IT/W/26 
Page 2  
 
  under the Agreement simply because they incorporate a new feature or technology is an overly narrow 
interpretation of the product coverage of the ITA.   6. Our overarching concern is that if some Members choose to no longer guarantee duty-free 
treatment for technologically-sophisticated versions  of ITA products, there may be few ITA products 
left that would be eligible for duty-free treatment.  We believe that this could not only overturn the 
unqualified success of the ITA in promoting trade, jobs , and investment in the IT sector but it would 
also undermine efforts to encourage additi onal Members to become ITA participants. 
 
• Set-top boxes with a communication function (STBs)  are listed in Attachment B of the ITA 
Agreement and are defined as having “ a microprocessor-based device incorporating a 
modem for gaining access to the Internet, and ha ving a function of interactive information 
exchange.”  Almost all STBs sold today in corporate a cable or network-based modem for 
gaining access to the Internet or have a hard drive to store information received through the 
function of interactive information exchange.  However, we understand that certain Members 
may be considering no longer guaranteeing duty -free treatment for STBs with hard drives or 
with cable modems.  Total exports of STBs were as much as US$46.9 billion in 2005; these 
products were exported by WTO Members incl uding Mexico, China, South Korea, the 
European Communities, Malaysia, the Separa te Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu, Thailand, Japan, and the United States. 
 
• Flat-panel displays  are listed in Attachment B of the IT A and defined as “flat panel displays 
(including LCD, Electro Luminescence, Plasma and other technologies) for products falling 
within this agreement, and parts thereof”.  Many  LCD flat panel displays are used as monitors 
for computers or ADP machines, which are also  covered under Attachment B.  However, we 
understand that certain Members may be no longer guaranteeing duty-free treatment for 
computer flat panel displays that are capab le of supporting Digital Video Interface (DVI) 
technology, a common technology used by virt ually all monitors .  Total exports of 
input/output devices for use with computers or ADP machines including flat panel displays 
were as much as US$75.9 billion in 2005; these products were exported by WTO Members 
including China, the European Communities,  Japan, Hong Kong, South Korea, Mexico, 
Malaysia, Singapore, the Separate Customs Terr itory of Taiwan, Penghu, Kinmen and Matsu, 
and Thailand. 
 
• Digital still image video cameras  are listed in Attachment A of the ITA under HS item ex 
8525.40.  As such cameras have become cheaper  over the past ten years, they have replaced 
many if not most analog (non-digital) cameras used by both businesses and consumers.  Most of these cameras on the market also have a functio n that allows the user to record and view a 
limited amount of video for personal use; howev er, they have different uses and are easily 
distinguished in the market place from video cam eras.  However, we understand that certain 
Members may be considering no longer gua ranteeing duty-free treatment for digital still 
image video cameras.  Total exports of digita l still image video cameras were as much as 
US$31.1 billion in 2005; these products were exported by WTO Members including Japan, 
China, the European Communities, United Stat es, Indonesia, Malaysia, Singapore, Thailand, 
South Korea, Chile, Brazil, Guatemala, and Costa Rica. 
 
• Units of ADP machines are listed in Attachment A of the ITA under HS heading 8471.  
Units of ADP machines traditionally include inpu t/output devices such as printers and optical 
scanners.  Facsimile machines as well as direct process and optical copiers also covered under Attachment A.  As technology has improved,  units of ADP machines have combined the 
above functions (printing, copying scanning and faxing) into one device, sometimes called an 
“all in one” or multifunction unit, allowing bus inesses to avoid buying separate products for  G/IT/W/26 
 Page 3 
 
 
  each of these functions.  However, we unders tand that certain Members may be no longer 
providing duty-free treatment to certain multifunc tion units of ADP machines. Total exports 
of units of ADP machines were as much as US$286.1 billion in 2005; these products were 
exported by WTO Members including China, the European Commun ities, South Korea, 
Malaysia, Singapore, the Separate Customs Terr itory of Taiwan, Penghu, Kinmen and Matsu, 
Thailand, Hong Kong, Honduras, Panama, Costa Rica, South Africa, and India. 
 
__________