WORLD TRADE WT/TC/NOTIF/MA/1
15October 1996
ORGANIZATION(96-4345)
Original: English
TECHNICAL COOPERATION HANDBOOK ONNOTIFICATION REQUIREMENTS
Tariffs andNon-Tariff Measures
1. Thissection oftheHandbook onNotification Requirements covers thenotification obligations
related totariffs andnon-tariff measures (MA). Itconsists ofthefollowing fiveparts:
PartI: Overview ofnotification requirements
PartII: Listing ofthenotification obligations
PartIII: Document(s) concerning guidelines andformats
PartIV: "Mock" examples ofnotifications
PartV: Textofthelegalprovisions
2. Foracceding countries, thedeadlines forthesubmission oftheirnotifications willbegoverned
bytheirrespective Protocols ofAccession.
Note: TheHandbook onNotification Requirements doesnotconstitute alegalinterpretation of
thenotification obligations under therespective Agreement(s). Ithasbeen prepared bythe
Secretariat toassist Members incomplying withtheirnotification obligations.MA-I -Page1
MA-I
DECISIONS ONNOTIFICATION PROCEDURES IN
THE AREA OFMARKET ACCESS
OVERVIEW OFNOTIFICATION OBLIGATIONSMA-I -Page2
OVERVIEW OFNOTIFICATION REQUIREMENTS RELATED TO
TARIFFS AND NON-TARIFF MEASURES
1. Tariffs
Bound tariff ratescanonlybeincreased (orwithdrawn) under certain rules, which arespecified
inArticle XXVIII. Thebasic principle ofmodifications oftariff concessions (paragraph 2)isthata
compensatory adjustment should bemade withrespect toother products, andthat"(...) themembers
concernedshallendeavourtomaintainagenerallevelofreciprocalandmutuallyadvantageousconcessions",
thuspreserving atleastthesame favourable tradeenvironment. Theprovisions ofArticle XXVIII relate
to:
- theperiod tonegotiate awithdrawal oramodification ofaconcession;
- themembers thatareinvolved innegotiations and/or consultations;
- theactions thatshould betaken afterthenegotiations, whether anagreement isreached
ornotamong theinterested members.
ThisArticle alsoforesees thatnegotiations andconsultations should beconducted with"(...) the
greatest possible secrecy inorder toavoid premature disclosure ofdetails ofprospective tariff changes
(Ad.Article XXVIII), andthatonlytheresults ofthese negotiations needtobecommunicated tothe
WTO Members.
a) Procedures forNotification andRenegotiation
Theoriginal Article XXVIII provided thaton1January 1951 orthereafter, anymember could
renegotiate itsconcessions according tocertain rules. Thisprovision, which made theschedules and
therenegotiation rights temporary, wasextended twomore times. In1955, attheGATT Review Session,
anewArticleXXVIIIandanArticleXXVIIIbiswereadoptedgivingtheschedulesanindefiniteapplication,
andestablishing fixed periods forrenegotiations, while thelatter settles rulesformultilateral rounds of
tariff negotiations.
Periods ofthree years, thefirstperiod beginning on1.1.1958, constitute thelegaltime-frame
torenegotiate modifications ofschedules. Members canalsorenegotiate atanyother timerequesting
authorization fromtheCouncil. Inpractice, aMember wanting towithdraw ormodify itsSchedule should,
according to:
- "Article XXVIII, para.1 (Ad.Article XXVIII) ,notify theMembers ofitsintention
notearlier thansixmonths, norlaterthanthree months prior tothetermination dateofalegalperiod
(forexample, between 1.7.87 and30.9.87 before athree-year period starts, i.e.1January), or,
- ArticleXXVIII,para.4,requestanauthorizationtotheMemberstoenterintonegotiations
atanyother timethanthelegalperiod; or,
- Article XXVIII, para.5 ,reserves itsright todosointhenextlegal period bya
notification totheMembers before theendofathree-year period (forthelastperiod
thatstarted on1.1.94, thirty-seven contracting parties reserved theirrights)."
Thenotification should indicate theitemandthetariff linenumber forwhich modifications are
envisaged inbound tariffs, andthecountries thathaveinitial negotiating rights regarding thisproduct.
Itshould beindicated whether theintention istowithdraw ormodify aconcession. Ifaconcession is
tobemodified, theproposed modification should bealsostated inthenotification (orcirculated assoon
aspossible totheconcerned contracting parties). Statistics regarding theimports byorigin oftheproduct
forthelastthree years forwhich statistics areavailable should beannexed tothenotification, asthe
countries tobeinvolved innegotiations and/or consultations should beidentified through import data.MA-I -Page3
(Ifrelevant import statistics cannot besupplied bytheapplicant contracting party, itshall givedue
consideration toexport statistics provided bycontracting parties claiming aninterest intheconcession
concerned.) Also, ifspecific ormixed duties areaffected, bothvalues andquantities should beindicated,
ifpossible. From thedateofcirculation ofstatistics, other countries haveninety daystonotify their
interest torenegotiate.
Paragraph 1ofthisArticle indicates thattheapplicant member should (a)negotiate withmembers
thathaveinitial negotiating rights (INRs) andwiththose thathavea"principal supplying interest",
thisgroup being called "contracting parties primarily concerned" and(b)enter intoconsultation with
anyother member thathasa"substantial interest" ontheconcession. Thedefinitions oftheseexpressions
areasfollows:
- Initial negotiating rights aregenerally theresults ofbilateral negotiations -thusbeing
determined bereference tonegotiation records -andshould bespecified intheSchedules -
aswellastomultilateral negotiations (floating INRs). Inthelattercase,when thequestion
arises, themember deemed tohaveinitial negotiator rights shallbetheonethathad,
during arepresentative period prior tothetimewhen thequestion arises, aprincipal
supplying interest intheproduct concerned. (Aperiod ofthree years isconsidered to
bea"representative" ora"reasonable" period oftime).
- Amember hasaprincipal supplying interest inaconcession ifithashad,overa
reasonable period oftimeprior tothenegotiations, alarger share inthemarket ofthe
applicant member thananother party withwhich theconcession wasinitially negotiated,
orwould havehaditintheabsence ofdiscriminatory quantitative restrictions. The
Members canexceptionally determine thatanadditional supplying country canbe
recognized tobeaprincipal supplier iftothiscontracting party theconcession inquestion
affects tradewhich constitutes amajor partofthetotalexports ofsuchparty (Paragraph 7
ofAd.Article XXVIII p.74)
- Amember hasasubstantial interest inaconcession onlyifithas,orcould beexpected
tohaveintheabsence ofdiscriminatory quantitative restrictions, asignificant share in
themarket oftheapplicant contracting party. IntheGATT, a10percentshare rule
hasbeengenerally applied forthedefinition ofa"substantial supplier".
Anymember which considers thatithasaprincipal orasubstantial interest intheconcession
inquestion andwanting tonegotiate orconsult under Article XXVIII should, inaperiod ofninety days
following thecirculation ofthestatistics, communicate itsclaim inwriting totheapplicant contracting
party andinform theGATT secretariat. Iftheclaim isaccepted bytheapplicant member, theparties
involved intheArticle XXVIII negotiations aredetermined, otherwise themember making theclaim
mayreferthematter totheCouncil.
Regarding theresults ofthenegotiations, different cases could occur:
(1) Themembers primarily concerned andthemembers having asubstantial interest reach an
agreement: theMembers aretheninformed oftheconclusions andtheSchedules aremodified.
Thenegotiations under Article XXVIII need tobeconcluded before thenewrates canbe
implemented.
(2) Themembers primarily concerned reach anagreement, buttheparties having asubstantial interest
arenotsatisfied; thelatter arethenfree,notlaterthansixmonths aftertheconclusion ofthe
agreement,toretaliatebywithdrawing"(...)substantiallyequivalentconcessionsinitiallynegotiated
withtheapplicant contracting party" (Article XXVIII:3(b) ).
(3) Themembers primarily concerned cannot reach anagreement before theexpiry ofthelegalperiod
forrenegotiation (under para.1); theapplicant member isnevertheless freetowithdraw ormodify
itsconcession, butallother members thatwereinvolved inthenegotiations and/or consultationsMA-I -Page4
arealsoallowed, notlaterthansixmonths aftertheaction istaken, torespond bythewithdrawal
of"(...) substantially equivalent concessions initially negotiated withtheapplicant contracting
party" (Article XXVIII:3(a)).
b) Understanding ontheinterpretation ofArticle XXVIII oftheGATT 1994
Some newprovisions and/or clarifications ofArticle XXVIII werediscussed intheGATT Articles
Group intheUruguay Round. They referto(a)theadditional definition ofmembers having aprincipal
supplyinginterest,(b)thebasisoftradebetweentheaffectedmembers,(c)themodificationsofconcessions
relating tonewproducts, (d)thereplacement ofatariff concession byatariff ratequota, and(e)the
granting ofinitial negotiating rights. Agreement wasreached inallthefollowing items:
(i) Additional principal supplying interest -Anadditional principal supplying interest
isaccorded totheMember which hasthehighest ratio ofexports affected bythe
concession (i.e.exports oftheproduct tothemarket oftheMember modifying or
withdrawing theconcession) toitstotalexports ifitdoesnotalready haveaninitial
negotiating rightoraprincipal supplying interest asprovided forinparagraph 2ofArticle
XXVIII. Theobjective ofthis"supplementary" rightistoallow access tonegotiating
rights forawider range ofcountries, particularly thesmall andmedium-sized exporting
contracting parties.
(ii) MFN trade -onlytradeonaMFN basisshould betaken intoaccount inthedetermination
ofcountries withaprincipal supplying interest. Thisprovision should notapply if,at
thetimeoftherenegotiation, thetrade between concerned members (a)hasceased to
benefit from preferential treatment or(b)willdosobyitsconclusion.
(iii) Newproducts -when atariffconcession ismodified orwithdrawn onaproduct forwhich
three years'trade statistics arenotavailable, initial negotiating rights should begiven
thecountry thathaditwhen theprevious classification wasused: some clarification is
alsogiven inorder toestablish countries having principal supplying andsubstantial
interests intheconcession.
(iv) Tariff ratequota -when atariff isreplaced byatariff ratequota, theamount of
compensation should exceed theamount oftrade actually affected bythisreplacement,
butitshould notexceed theamount ofcompensation entailed bycomplete withdrawal
oftheconcession.
(v) Newinitial negotiating rights -amember having aprincipal supplying interest ina
concession which ismodified orwithdrawn shallbeaccorded aninitial negotiating right
inthecompensatory concessions, unless some other kindofcompensation isagreed
between themembers involved.MA-I -Page5
2. Quantitative Restrictions
Atitsmeeting on1December 1995, theCouncil forTrade inGoods adopted the"Decision on
Notification Procedures forQuantitative Restrictions" contained indocument G/L/59. ThisDecision
wastransmitted totheCouncil forTrade inGoods from theCommittee onMarket Access which has
amandate "toconduct theupdating andanalysis ofthedocumentation onquantitative restrictions and
othernon-tariffmeasures,inaccordancewiththetimetableandproceduresagreedbytheCONTRACTING
PARTIES in1984 and1985."
TheDecision onQRsrequires WTO Members tonotify, by31January 1996, QRswhich they
maintain andanychanges totheir QRsasandwhen these changes occur. They shall make such
notifications attwo-yearly intervals thereafter. Thenotifications mustcontain thefollowing information:
- afulldescription oftheproducts andtariff lines(orparts oftariff lines) affected and
therelevant heading orsub-heading intheHarmonised System nomenclature,
- aprecise indication ofthetypeofrestriction, using thesymbols agreed intheannex to
theDecision;
- anindication ofthegrounds andWTO justification forthemeasures, including citation
oftheprecise provisions forjustification;
- astatement onthetrade effects ofthemeasure, including information onthequantity
ofpermissible imports, onthedegree ofquota utilization (inthecaseofexisting quotas)
and,onthelevelofproduction orconsumption where available.
With respect tothelastitem, thenotification should include adescription oftheadministrative
mechanism associated withthemeasure, unless themechanism hasbeennotified under another WTO
Agreement.WithrespecttonotificationsofQRsmadeunderotherWTOprovisions(suchastheAgreement
onImport Licensing Procedures ortheGATT Technical Group onQRsandOther Non-Tariff Measures)
which areup-to-date, Members mustnotify thisfacttotheMarket Access Division sothattheSecretariat
willinput suchnotifications intotheQRdatabase. Thisdatabasewillbenewly created, identical to
theexisting QRdatabasewhich officially ceased toexistwhen theGATT 1947wasterminated. However,
onrequest, theSecretariat canprovide extracts from theolddatabasepertaining toMembers 'own
restrictions toassist them inpreparing theirnotifications. Members arealsoallowed tomake reverse
notifications, inother words, notifications ofthirdparty QRs, where theydeem appropriate.
According totheDecision, theSecretariat willpublish periodically adocument listing theWTO
Members having made anotification. Members arefreetorequest fromtheSecretariat atanytimedetailed
extracts, either printouts orondisk, oftheQRdatabase, andthenotifications willbeavailable for
consultation intheSecretariat. TheCommittee onMarket Access will,attwo-yearly intervals afterreceipt
ofthecomplete notifications, review them onthebasis ofsummaries tobeprepared bytheSecretariat.MA-I -Page6
3. Reverse Notification ofNon-Tariff Measures
Atitsmeeting on1December 1995, theCouncil forTrade inGoods adopted the"Decision on
Reverse Notification ofNon-Tariff Measures" contained indocument G/L/60. ThisDecision was
transmitted totheCouncil forTrade inGoods fromtheCommittee onMarket Access which hasamandate
"toconduct theupdating andanalysis ofthedocumentation onquantitative restrictions andothernon-tariff
measures, inaccordance withthetimetable andprocedures agreed bytheCONTRACTING PARTIES
in1984 and1985."
ThisDecision allows WTO Members thepossibility ofmaking notifications ofnon-tariff measures
maintained byother Members insofarassuchmeasures areneither subject toanyexisting WTO
notification obligations nortoanyother reverse notification possibilities under theWTO Agreement.
Thisdiffers fromtheDecision onQRswhich requires Members tonotify theirownQRsandallows them
thepossibility tomake reverse notifications where theydeem appropriate. Here, provision ismade for
onlyreverse notification procedures.
Thereverse notifications shallcontain thefollowing information:
- anindication oftheprecise nature ofthemeasures;
- where applicable, afulldescription oftheproducts affected, including thecorresponding
HSheadings orsub-headings;
- where appropriate, areference totherelevant WTO provisions; and
- astatement onthetrade effects ofthemeasure.
TheMember maintaining themeasures isrequired tocomment oneachpoint contained inthe
notification. These comments andthenotification willbeincluded inanewInventory ofNon-Tariff
Measures which willreplace theexisting Inventory ofNTMs which ceased toexistwhen theGATT 1947
wasterminated. Itisimportant tonotethatthenewInventory willcover allnon-tariff measures relating
toallproducts (chapters 1-97oftheHSnomenclature) whereas theoldInventory related onlytoindustrial
products. Incaseswhere theinclusion orthecontents ofthenotification ischallenged, further information
willbesought fromthenotifying Member. Inthese cases, theMembers concerned might holdbilateral
consultations withtheaimofverifying theexistence ofthemeasure anditsprecise andcomplete
description. Theresult ofthese consultations shallbetransmitted totheSecretariat toinform whether
ornottoinclude theinformation intheInventory.
Additionally, when ameasure which hasbeenthesubject ofareverse notification isnotified
bythemaintaining Member under another WTO provision, themaintaining Member shallsonotify the
Secretariat. Upon receipt ofsuchnotification, theSecretariat, satisfied thatthesubject ofthetwo
notifications isthesame, delete thereverse notification fromtheInventory andinform Members ofthe
action taken.
TheInventory ofNTMs willbemade available toWTO Members inaloose-leaf format inthe
threeWTOlanguagesandamendmentswillbecirculatedtoallMembersbytheSecretariat.TheCommittee
onMarket Access shall, attwo-yearly intervals ontheoccasion ofthereview ofthenotifications ofQRs,
review thereverse notifications ofNTMs received, onthebasisofSecretariat analyses similar tothose
prepared fortheGATT Technical Group onQRsandOther NTMs.MA-II -Page1
MA-II
DECISIONS ONNOTIFICATION PROCEDURES IN
THE AREA OFMARKET ACCESS
NOTIFICATION OBLIGATIONSMA-II -Page2
TARIFFS AND NON-TARIFF MEASURES
NOTIFICATION OBLIGATIONS
Item Notification requirement Type ofMeasure Periodicity Format Members notifying ToWhom
1. Tariffs -waivers Any Adhoc NO WTO Members - Council for
adhoc Trade inGoods
GATT 1994, Art.XXV:5
2. Tariffs Modification ofschedules Adhoc NO WTO Members - WTO Secretariat
(modification orwithdrawal adhoc
GATT 1994, Art.XXVIII:1 ofaconcession)
3. Tariffs Modification ofschedules Adhoc NO WTO Members - WTO Secretariat
(modification orwithdrawal of adhoc
GATT 1994, Art.XXVIII:3 aconcession asaretaliatory
measure)
4. Tariffs Modification ofschedules Adhoc NO WTO Members - WTO Secretariat
(modification orwithdrawal of adhoc
GATT 1994, Art.XXVIII:4 aconcession -request for
authorization)
5. Tariffs Modification ofschedules Adhoc NO WTO Members - WTO Secretariat
(reservation oftheright to adhoc
GATT 1994, Art.XXVIII:5 modify schedules fora3year
period)
6. Decisions onNotification Quantitative Restrictions Every second NO WTO Members Committee on
Procedures forQuantitative andother non-tariff year(first done Market Access
Restrictions measures by31January 1996)MA-II -Page3
TARIFFS AND NON-TARIFF MEASURES
NOTIFICATION OBLIGATIONS
Item Notification requirement Type ofMeasure Periodicity Format Members notifying ToWhom
7. Decision onNotification Quantitative Restrictions Adhoc NO WTO Members - Committee on
Procedures forQuantitative andother non-tariff adhoc Market Access
Restrictions (G/L/59) measures (changes)
8. Decision onReverse Non-tariff Measures Adhoc NO WTO Members - Committee on
Notification ofNon-Tariff maintained byother adhoc Market Access
Measures (G/L/60) Members1
1Onlyifsuchmeasures areneither subject toanyexisting WTO notification obligations nortoanyother reverse notification possibilities under theWTO
AgreementMA-III -Page1
MA-III
DECISIONS ONNOTIFICATION PROCEDURES IN
THE AREA OFMARKET ACCESS
DOCUMENT(S)
BISD, 27S/26MA-III -Page2
PROCEDURES FOR NEGOTIATIONS UNDER ARTICLE XXVIII
Guidelines adopted on10November 1980
(C/113 andCorr.1)
1. Acontracting party intending tonegotiate forthemodification orwithdrawal ofconcessions in
accordance withtheprocedures ofArticle XXVIII, paragraph 1-which arealsoapplicable tonegotiations
under paragraph 5ofthatArticle -should transmit anotification tothateffect tothesecretariat which
willdistribute thenotification toallother contracting parties inasecret document.1Inthecaseof
negotiations under paragraph 4ofArticle XXVIII therequest forauthority toenterintonegotiations should
betransmitted tothesecretariat tobecirculated inasecret document andincluded intheagenda ofthe
nextmeeting oftheCouncil.
2. Thenotification orrequest should include alistofitems, withcorresponding tarifflinenumbers,
which itisintended tomodify orwithdraw indicating foreachitemthecontracting parties, ifany,with
which theitemwasinitially negotiated. Itshould beindicated whether theintention istomodify a
concession orwithdraw it,inwhole orinpart,from theschedule. Ifaconcession istobemodified,
theproposed modification should bestated inthenotification orcirculated assoonaspossible thereafter
tothose contracting parties withwhich theconcession wasoriginally negotiated andthose which are
recognized, inaccordance withparagraph 4below, tohaveaprincipal orasubstantial supplying interest.
Thenotification orrequest should beaccompanied bystatistics ofimports oftheproducts involved, by
country oforigin, forthelastthree years forwhich statistics areavailable. Ifspecific ormixed duties
areaffected, bothvalues andquantities should beindicated, ifpossible.
3. Atthesame timeasthenotification istransmitted tothesecretariat orwhen theauthorization
toenter intonegotiations hasbeen granted bytheCouncil -orassoon aspossible thereafter -the
contracting party referred toinparagraph 1above should communicate tothose contracting parties, with
which concessions were initially negotiated, andthose which haveaprincipal supplying interest, the
compensatory adjustments which itisprepared tooffer.
4. Anycontracting party which considers thatithasaprincipal orasubstantial supplying interest
inaconcession which istobethesubject ofnegotiation andconsultation under Article XXVIII should
communicate itsclaim inwriting tothecontracting party referred toinparagraph 1above andatthe
same timeinform thesecretariat. Ifthecontracting party referred toinparagraph 1above recognizes
theclaim, therecognition willconstitute adetermination bytheCONTRACTING PARTIES ofinterest
inthesense ofArticle XXVIII:1.2Ifaclaim ofinterest isnotrecognized, thecontracting party making
theclaim mayrefer thematter totheCouncil. Claims ofinterest should bemade within ninety days
following thecirculation oftheimport statistics referred toinparagraph 2above.
1Thedateforsubmission ofanotification fornegotiation under Article XXVIII, paragraph 1,shallcomply
withtheprovisions ofinterpretative note3toparagraph 1ofArticle XXVIII.
2If,inexceptional circumstances, thecontracting party referred toinparagraph 1above isnotinaposition
tosupply relevant import statistics, itshallgivedueconsideration toexport statistics provided bycontracting parties
claiming aninterest intheconcession orconcessions concerned.MA-III -Page3
5. Upon completion ofeachbilateral negotiation thecontracting party referred toinparagraph 1
above should sendtothesecretariat ajointletter onthelinesofthemodel inAnnex A3attached hereto
signed bybothparties. Tothisletter shallbeattached areport onthelinesofthemodel inAnnex B3
attached hereto. Thereport should beinitialled bybothparties. Thesecretariat willdistribute theletter
andthereport toallcontracting parties inasecret document.
6. Upon completion ofallitsnegotiations thecontracting party referred toinparagraph 1above
should sendtothesecretariat, fordistribution inasecret document, afinalreport onthelinesofthe
model inAnnex Cattached hereto .3
7. Contracting parties willbefreetogiveeffect tothechanges agreed upon inthenegotiations as
from thefirstdayoftheperiod referred toinArticle XXVIII:1, or,inthecaseofnegotiations under
paragraph 4or5ofArticle XXVIII, asfrom thedateonwhich theconclusion ofallthenegotiations
havebeennotified assetoutinparagraph 6above. Anotification shallbesubmitted tothesecretariat,
forcirculation tocontracting parties, ofthedateonwhich these changes willcome intoforce.
8. FormaleffectwillbegiventothechangesintheschedulesbymeansofCertificationsinaccordance
withtheDecision oftheCONTRACTING PARTIES of26March 1980.4
9. Thesecretariat willbeavailable atallstages toassist thegovernments involved inthenegotiations
andconsultations.
10. These procedures areinrelevant parts alsovalid forrenegotiations under Article XVIII,
paragraph 7,andArticle XXIV, paragraph 6.
3TheAnnexes arenotreproduced.
4Seepage 25.MA-IV -Page1
MA-IV
DECISIONS ONNOTIFICATION PROCEDURES IN
THE AREA OFMARKET ACCESS
EXAMPLESMA-IV -Page2
RE: Notification under theDecision onNotification Procedures forQuantitative Restrictions
Inaccordance withtheDecision onNotification Procedures forQuantitative Restrictions, Ihave
thehonour toprovide theSecretariat withthefollowing information onquantitative restrictions maintained
bytheGovernment of[Member 'sname].
[Theinformation should beprepared intabular form andshallinclude thefollowing:
- afulldescription oftheproducts andtariff lines(orparts oftariff lines) affected and
therelevant heading ofsub-heading intheHarmonized System nomenclature;
- aprecise indication ofthetypeofrestriction, using thesymbols agreed intheannex to
theDecision;
- anindication ofthegrounds andWTO justification forthemeasures, including citation
oftheprecise provisions forjustification;
- astatement onthetrade effects ofthemeasure, including information onthequantity
ofpermissible imports, onthedegree ofquota utilization (inthecaseofexisting quotas)
and,onthelevelofproduction orconsumption where available.
With respect tothislastitem, thenotification should include adescription oftheadministrative
mechanism associated withthemeasure, unless themechanism hasbeennotified under another WTO
Agreement.WithrespecttonotificationsofQRsmadeunderotherWTOprovisions(suchastheAgreement
onImport Licensing Procedures, theGATT Technical Group onQRsandOther Non-Tariff Measures,
theAgreement onAgriculture, ortheAgreement onTextiles, which areup-to-date, Members mustnotify
thisfacttotheMarket Access Division.]
[IftheMember doesnotmaintain anyQRs, theabove paragraph should beusedandchanged
asfollows "...honour toinform theSecretariat thattheGovernment of[Member 'sname] doesnotmaintain
anyquantitative restrictions."]MA-IV -Page3
RE: Notification under theDecision onReverse Notification onNon-Tariff Measures
Inaccordance withtheDecision onReverse Notification ofNon-Tariff Measures, Ihavethe
honour toprovide theSecretariat withthefollowing information onnon-tariff measures maintained by
theGovernment of[name ofMember maintaining thenon-tariff measure].
[Itshould benoted thatthenon-tariff measure being notified mustnotbesubject toanyexisting
WTO notification obligations nottoanyotherreverse notification possibilities under theWTO Agreement.
Thenotification shallcontain thefollowing information:
- anindication oftheprecise nature ofthemeasures;
- where applicable, afulldescription oftheproducts affected, including thecorresponding
HSheadings orsub-headings;
- where appropriate, areference totherelevant WTO provisions; and
- astatement onthetrade effects ofthemeasure.]MA-V -Page1
MA-V
DECISIONS ONNOTIFICATION PROCEDURES IN
THE AREA OFMARKET ACCESS
TEXTS OFTHE LEGAL PROVISIONS
UNDERSTANDING ONTHE INTERPRETATION OF
ARTICLE XXVIII OFGATT 1994
G/L/59
G/L/60MA-V -Page2
UNDERSTANDING ONTHE INTERPRETATION OFARTICLE XXVIII
OFTHE GENERAL AGREEMENT ONTARIFFS AND TRADE 1994
Members hereby agree asfollows:
1. Forthepurposes ofmodification orwithdrawal ofaconcession, theMember which hasthehighest
ratioofexports affected bytheconcession (i.e.exports oftheproduct tothemarket oftheMember
modifying orwithdrawing theconcession) toitstotalexports shallbedeemed tohaveaprincipal supplying
interest ifitdoesnotalready haveaninitial negotiating rightoraprincipal supplying interest asprovided
forinparagraph 1ofArticle XXVIII. Itishowever agreed thatthisparagraph willbereviewed bythe
Council forTrade inGoods fiveyears from thedateofentry intoforce oftheWTO Agreement with
aviewtodecidingwhetherthiscriterionhasworkedsatisfactorilyinsecuringaredistributionofnegotiating
rights infavour ofsmall andmedium-sized exporting Members. Ifthisisnotthecase, consideration
willbegiven topossible improvements, including, inthelightoftheavailability ofadequate data, the
adoption ofacriterion based ontheratioofexports affected bytheconcession toexports toallmarkets
oftheproduct inquestion.
2. Where aMember considers thatithasaprincipal supplying interest interms ofparagraph 1,
itshould communicate itsclaim inwriting, withsupporting evidence, totheMember proposing tomodify
orwithdraw aconcession, andatthesame timeinform theSecretariat. Paragraph 4ofthe"Procedures
forNegotiations under Article XXVIII" adopted on10November 1980 (BISD 27S/26-28) shallapply
inthese cases.
3. Inthedetermination ofwhich Members haveaprincipal supplying interest (whether asprovided
forinparagraph 1above orinparagraph 1ofArticle XXVIII) orsubstantial interest, onlytrade inthe
affected product which hastaken place onanMFN basis shallbetaken intoconsideration. However,
tradeintheaffected product which hastaken place under non-contractual preferences shallalsobetaken
intoaccount ifthetradeinquestion hasceased tobenefit fromsuchpreferential treatment, thusbecoming
MFN trade, atthetimeofthenegotiation forthemodification orwithdrawal oftheconcession, orwill
dosobytheconclusion ofthatnegotiation.
4. When atariff concession ismodified orwithdrawn onanewproduct (i.e.aproduct forwhich
threeyears'tradestatistics arenotavailable) theMember possessing initial negotiating rights onthetariff
linewhere theproduct isorwasformerly classified shallbedeemed tohaveaninitial negotiating right
intheconcession inquestion. Thedetermination ofprincipal supplying andsubstantial interests and
thecalculation ofcompensation shalltakeintoaccount, interalia,production capacity andinvestment
intheaffected product intheexporting Member andestimates ofexport growth, aswellasforecasts
ofdemand fortheproduct intheimporting Member. Forthepurposes ofthisparagraph, "new product"
isunderstood toinclude atariff itemcreated bymeans ofabreakout from anexisting tariff line.
5. Where aMember considers thatithasaprincipal supplying orasubstantial interest interms
ofparagraph 4,itshould communicate itsclaim inwriting, withsupporting evidence, totheMember
proposing tomodify orwithdraw aconcession, andatthesametimeinform theSecretariat. Paragraph 4
oftheabove-mentioned "Procedures forNegotiations under Article XXVIII" shallapply inthese cases.
6. When anunlimited tariffconcession isreplaced byatariffratequota, theamount ofcompensation
provided should exceed theamount ofthetrade actually affected bythemodification oftheconcession.
Thebasisforthecalculation ofcompensation should betheamount bywhich future tradeprospects exceed
thelevel ofthequota. Itisunderstood thatthecalculation offuture trade prospects should bebased
onthegreater of:
(a) theaverage annual trade inthemostrecent representative three-year period, increased
bytheaverage annual growth rateofimports inthatsame period, orby10percent,
whichever isthegreater; orMA-V -Page3
(b) trade inthemost recent yearincreased by10percent.
InnocaseshallaMember 'sliability forcompensation exceed thatwhich would beentailed bycomplete
withdrawal oftheconcession.
7. AnyMember having aprincipal supplying interest, whether asprovided forinparagraph 1above
orinparagraph 1ofArticle XXVIII, inaconcession which ismodified orwithdrawn shallbeaccorded
aninitial negotiating rightinthecompensatory concessions, unless another formofcompensation isagreed
bytheMembers concerned.WORLD TRADE G/L/59
10January 1996
ORGANIZATION(96-0072)
DECISION ONNOTIFICATION PROCEDURES FOR
QUANTITATIVE RESTRICTIONS
Adopted bytheCouncil forTrade inGoods on1December 1995
TheCommittee, inpursuance ofitsmandate (paragraph (d)ofdocument WT/L/472),agrees that:
- Members shallmake complete notifications ofthequantitative restrictions which theymaintain
by31January 1996 andattwo-yearly intervals thereafter, andshall notify changes totheir
quantitative restrictions asandwhen these changes occur;
- suchnotifications shallcontain:
- afulldescription oftheproducts andtarifflines(orpartsoftarifflines) affected together
withtherelevant heading orsub-heading intheHarmonised System nomenclature;
- aprecise indication ofthetypeofrestriction, using theagreed symbols (BISD 32S/108)
asannexed;
- anindication ofthegrounds andWTO justification forthemeasures maintained, including
theprecise provisions which theyciteasajustification;
- astatement onthetrade effects ofthemeasure; inorder toensure fulltransparency,
thenotification should include adescription oftheadministrative mechanism associated
withthemeasure, unless thismechanism hasbeennotified under theAgreement onImport
Licensing Procedures oranother WTO Agreement. Also under trade effects, the
notification should include information onthequantity ofpermissible imports, onthe
degree ofquota utilization (inthecaseofexiting quotas) and,where available, onthe
levelofproduction orconsumption.
- Members which havemade, under otherWTO provisions, notifications ofquantitative restrictions
(including notifications totheGATT Technical Committee onQuantitative Restrictions andOther
Non-Tariff Measures) which fulfiltherequirements forquantitative restrictions notifications under
the1984 and1985 decisions andwhich areup-to-date, shall notify thefact; thereupon, the
Secretariat shallinput suchnotifications intothequantitative restrictions database;
- itwillbeopentoMembers tomake reverse notifications where theydeem appropriate;
2Thestatement orunderstanding contained indocument PC/IPL/M/9, paragraphs 6,7and8applies
alsotothisDecision.G/L/59
Page2
- theSecretariat shallprovide, toassist delegations inthepreparation oftheirnotifications, on
request, theextract ofthequantitative restrictions databasepertaining toitsownrestrictions;
- thenotifications shallbestored inanewdatabase,identical totheexisting quantitative restrictions
database. Thelatter shallcease toexistwhen theGATT 1947 isterminated;
- theSecretariat shallpublish periodically adocument listing theWTO Members having made
anotification. TheSecretariat shallmake available toMembers, asandwhen requested, onpaper
orcomputer tape, detailed extracts ofthequantitative restrictions database. Thenotifications
themselves shallbeavailable forconsultation intheSecretariat;
- theCommittee shall, attwo-yearly intervals afterreceipt ofthecomplete notifications, review
thenotifications received, onthebasisofSecretariat summaries similar tothesummaries prepared
fortheGATT Technical Group onQuantitative Restrictions andOther Non-Tariff Measures.G/L/59
Page3
ANNEX TOTHE DECISION ONNOTIFICATION OF
QUANTITATIVE RESTRICTIONS
Symbols tobeusedinnotifications ofquantitative restrictions3
P Prohibition
CP Prohibition except under defined conditions
GQ Global quota
GQC Global quota allocated bycountry
BQ Bilateral quota (i.e.anything lessthanaglobal quota)
AL Automatic licensing
NAL Non-automatic licensing
STR Quantitative restriction made effective through state-trading operations
MXR Mixing regulation
MPR Minimum price, triggering aquantitative restriction
VER "Voluntary" export restraint
addthefollowing suffixes totheabove asappropriate:
-S Seasonal restriction
-X Export restriction
3BISD 32S/108WORLD TRADE G/L/60
10January1996
ORGANIZATION(96-0073)
DECISION ONREVERSE NOTIFICATION
OFNON-TARIFF MEASURES
Adopted bytheCouncil forTrade inGoods on1December 1995
TheCommittee, inpursuance ofitsmandate (paragraph (d)ofdocument WT/L/474),agrees that:
- Members shallhavethepossibility ofmaking notifications ofnon-tariff measures maintained
byother Members insofarassuchmeasures areneither subject toanyexisting WTO notification
obligations nortoanyother reverse notification possibilities under theWTO Agreement;
- suchnotifications shallcontain:
- anindication oftheprecise nature ofthemeasure;
- where applicable, afulldescription oftheproducts affected, including thecorresponding
HSheadings orsub-headings;
- where appropriate, areference totherelevant WTO provisions;
- astatement onthetrade effects ofthemeasure;
- theMember maintaining themeasures shallcomment oneachofthese points; suchcomments
shallbeincluded intheInventory together withthenotification;
- incases where theinclusion orthecontents ofthenotification ischallenged, further information
willbesought fromthenotifying Member. Inthese cases, theMembers concerned might hold
bilateral consultations withtheaimofverifying theexistence ofthemeasure anditsprecise and
complete description. Theresult ofthese consultations shallbetransmitted totheSecretariat
forappropriate action (thatis,whether ornottoinclude thenotification intheInventory);
- thenewInventory ofNon-Tariff Measures shallbeopenfornotification asfromthedateofthis
Decision. Theexisting Inventory ofNon-Tariff Measures (Industrial Products) shallcease to
existwhen theGATT 1947 isterminated;
- theInventory ofNon-Tariff Measures shallcover allnon-tariff measures relating toallproducts
(Chapters 1-97oftheHSnomenclature);
./.
4Thestatement orunderstanding contained indocument PC/IPL/M/9, paragraphs 6,7and8applies
alsotothisDecisionG/L/60
Page2
- theInventory shallbemade available toMembers inaloose-leaf format inthe3WTO languages;
amendments totheInventory (including additions anddeletions) shallbecirculated toallMembers
bytheSecretariat;
- when ameasure which hasbeenthesubject ofareverse notification isnotified bythemaintaining
Member under another WTO provision, themaintaining Member shallsonotify theSecretariat.
Upon receipt ofsuchnotification, theSecretariat shall, having satisfied itself thatthesubject
ofthetwonotifications isthesame, delete thereverse notification fromtheInventory andinform
Members oftheaction taken;
- theCommittee shall, attwo-yearly intervals ontheoccasion ofthereview ofthenotifications
ofquantitative restrictions, review thereverse notifications ofnon-tariff measures received, on
thebasisofSecretariat analyses similar totheanalyses prepared fortheGATT Technical Group
onQuantitative Restrictions andOther Non-Tariff Measures.