EUROPEAN COMMUNITIES AND ITS MEMBER STATES – TARIFF TREATMENT OF CERTAIN INFORMATION TECHNOLOGY PRODUCTS
Document: Understanding between the European Union 1 and Chinese Taipei Regarding Procedures under Articles 21 and 22 of the DSU
Date: 11 July 2011
Document codes: WT/DS377/15
Complainant: Taiwan
Respondent: EU
Third parties: Australia, Brazil, China, Costa Rica, Hong Kong, India, Japan, South Korea, Philippines, Singapore, Thailand, Turkey, U.S., Vietnam
Dispute stage: Panel
Agreements cited: Art. II:1, X:1, X:2, XXIII  GATT 1994

EUROPEAN COMMUNITIES AND ITS MEMBER STATES – TARIFF TREATMENT
OF CERTAIN INFORMATION TECHNOLOGY PRODUCTS

Understanding between the European Union
1 and Chinese Taipei
Regarding Procedures under Articles 21 and 22 of the DSU

 The following communication, dated 6 July 2011, from the delegation of the European Union
and the delegation of Chinese Taipei to the Chairper son of the Dispute Settleme nt Body, is circulated
at the request of these delegations.

 The European Union and the Separate Cust oms Territory of Taiwan, Penghu, Kinmen and
Matsu would like to inform the Dispute Settlement Body of the attached "Agreed Procedures under
Articles 21 and 22 of the Dispute Settlement Unde rstanding" between the European Union and the
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu with respect to the dispute EC
and its Member States – Tariff Treatment of Certain Information Technology Products (WT/DS377).

We request that you please circulate the attached agreement to the Members of the Dispute
Settlement Body.

November 2009, the WTO received a Verbal Note (WT/L/779) from the Council of the European Union and the
Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 1 December
2009, the European Union replaces and succeeds the European Community.

EC and its Member States – Tariff Treatment of Certain Information Technology Products
(WT/DS377)

Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding
The Dispute Settlement Body ("DSB") adopted its recommendations and rulings in the
dispute EC and its Member States – Tariff Treatment of Certain Information Technology Products
(WT/DS377) on 21 September 2010.
Pursuant to Article 21.3(b) of the Unders tanding on Rules and Procedures Governing the
Settlement of Disputes ("DSU") the Separate Cu stoms Territory of Taiwan, Penghu, Kinmen and
Matsu and the European Union ("EU") agreed that the reasonable period of time to implement the
DSB recommendations and rulings would be nine (9) months and nine (9) days, expiring on 30 June
2011 (WT/DS377/14).
The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu and the EU ("the parties to
the dispute") have agreed on the following procedur es for the exclusive purposes of this dispute.
They are designed to facilitate the resolution of the dispute and reduce the scope for procedural
disputes and are without prejudice to either party's views on the correct interpretation of the DSU:
1. Should the Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu consider that
the situation described in Article 21.5 of the DSU exists, the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu will request that the EU enter into consultations with the
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu. The Parties agree to
hold such consultations within 15 days from the date of receipt of the request. After this 15-
day period has elapsed, the Separate Custom s Territory of Taiwan, Penghu, Kinmen and
Matsu may request the establishment of a panel pursuant to Article 21.5 of the DSU at any
time.
2. At the first DSB meeting at which the Sepa rate Customs Territory of Taiwan, Penghu,
Kinmen and Matsu's request for the establishm ent of an Article 21.5 panel appears on the
agenda, the EU shall accept the establishment of that panel.
3. The parties to the dispute shall cooperate to enable the Article 21.5 panel to circulate its report
within 90 days of the panel's establishment, excluding such time during which the panel's
work may be suspended pursuant to Article 12.12 of the DSU.
4. Either party to the dispute may request the DSB to adopt the report of the Article 21.5 panel at
a DSB meeting held at least 20 days after the circulation of the report to the Members unless
either party appeals the report.
5. In the event of an appeal of the Article 21.5 panel report, the parties to the dispute shall
cooperate to enable the Appellate Body to circ ulate its report to the Members within 90 days
from the date of notification of the appeal to th e DSB. Further, either party to the dispute
may request the DSB to adopt its recommendations and rulings at a DSB meeting held within
30 days of the circulation of the Appellate Body report to the Members.
6. The Separate Customs Territory of Taiw an, Penghu, Kinmen and Matsu may request
authorization to suspend concessions or other ob ligations pursuant to Article 22.2 of the DSU
in the event that the DSB rules as a result of a proceeding under Article 21.5 of the DSU that
a measure taken to comply does not exist or is inconsistent with a c overed agreement. The
EU shall not assert that the Separate Cust oms Territory of Taiwan, Penghu, Kinmen and
Matsu is precluded from obtaining such DSB authorization because its request was made

outside the time period specified in the first sen tence of Article 22.6 of the DSU. This is
without prejudice to the EU's right to have the matter referred to arbitration in accordance
with Article 22.6 of the DSU.
7. If the Separate Customs Territory of Ta iwan, Penghu, Kinmen and Matsu requests
authorization to suspend concessions or other obligations pursuant to Article 22.2 of the DSU,
the EU shall have the right to object under Ar ticle 22.6 of the DSU to the level of suspension
of concessions or other obligations and/or claim that the principles and procedures set forth in
Article 22.3 of the DSU have not been followed. In the event of such objection, the matter
will be referred to arbitration pursuant to Article 22.6 of the DSU.
8. The parties to the dispute will cooperate to enable the arbitrator under Article 22.6 of the DSU
to circulate its decision within 60 days of the referral to arbitration.
9. If any of the original panelists is not availabl e for either the Article 21.5 compliance panel or
the Article 22.6 arbitration (or both), or an y person serving in such proceeding becomes
unavailable to serve, the parties to the dispute will promptly consult on a replacement, and
either party may request the Director-General of the WTO to appoint, within ten days of
being so requested, a replacement for the proceeding or proceedings in which a replacement is
required. If an original panelist is unavailable to serve in either of the proceedings, or a
person serving in such proceeding becomes unavailable to serve, the parties to the dispute will
further request that, in making this appointmen t, the Director-General seek a person who will
be available to act in both proceedings.
10. The parties to this dispute will continue to cooperate in a ll matters related to these agreed
procedures and agree not to raise any procedural objec tion to any of the steps set out herein.
If, during the application of these procedures, the parties to the dispute consider that a
procedural aspect has not been properly addressed in these procedures, they will endeavor to
find a solution within the shortest time possible that will not affect the other aspects and steps
agreed herein.

Signed in Geneva, 6 July 2011

For the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu

Mr. Yi-fu Lin
Permanent Representative to the WTO
For the European Union

H.E. Mr. Angelos Pangratis
Ambassador
Permanent Representative to the WTO