They are not tangible products when received initially by customers. Accordingly, governments should avoid distorting the delivery choices of businesses by expanding tariffs regimes to digital products and creating administrative difficulties and burdens that are not easily resolved. The Internet and global electronic commerce will not advance if electronic transmissions are stopped at national borders. The WTO Moratorium on Customs Duties on Electronic Transmissions recognizes that internationally, electronic transmissions are not now considered importations subject to customs duties or border controls. The WTO's Moratorium on Customs Duties on Electronic Transmissions reflects this status quo and promotes the free flow of information that is essential to the expansion of the Internet and electronic commerce.
Electronic transmissions are typically time-sensitive and flow seamlessly across borders.
To stop these transmissions at borders to impose customs duties would unduly disrupt business economies that are inherent in electronic delivery. Greater use of global electronic commerce will create new opportunities for developing countries and assist in their economic development. Electronic commerce has the potential to radically alter some economic activities and the surrounding social environment. The combination of regulatory reform and technological innovations has progressively reduced barriers to electronic commerce for both buyers and sellers. Today, for a few thousand dollars, anyone can become a merchant and reach millions of consumers worldwide.