UNITED KINGDOM - CUSTOMS CLASSIFICATION OF CERTAIN COMPUTER EQUIPMENT
Document: Original: English UNITED KINGDOM - CUSTOMS CLASSIFICATION OF CERTAIN COMPUTER EQUIPMENT Request for Consultations by the United States
Date: 20 February 1997
Document codes: WT/DS67/1; G/L/152
Complainant: U.S.
Respondent: United Kingdom
Third parties: India, Japan, South Korea, Singapore
Dispute stage: Appellate Body
Agreements cited: Art. II, XXIII  GATT 1994

UNITED KINGDOM - CUSTOMS CLASSIFICATION
OF CERTAIN COMPUTER EQUIPMENT
Request for Consultations by the United States
The following communication, dated 14 February 1997, from the Permanent Mission of the
United States to the Permanent Mission of the United Kingdom and to the Dispute Settlement Body,
is circulated in accordance with Article 4.4 of the DSU.
My authorities have instructed me to request consultations with the Government of the United
Kingdom pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement
of Disputes and Article XXII of the General Agreement on Tariffs and Trade 1994 (“ GATT 1994")
regardingtariffreclassificationbythe customsauthoritiesofthe UnitedKingdomofLocal AreaNetwork
(“ LAN” ) equipment and personal computers (“ PCs” ) with multimedia capability.
Since June 1995, customs authorities in the United Kingdom have been applying tariffs to imports
of LAN equipment in excess of those provided for in the European Communities’ Schedules (“ EC
Schedules” ) under the GATT 1994. Those products were previously dutiable as automatic data
processing equipment under category 8471, but, as a result of the customs authorities’ actions, are
now subject to the higher tariff rates applicable to category 8517, “ telecommunications apparatus” .
The result has been to raise the tariff applied to imports of such products into the United Kingdom
from 3.5 per cent to 7.5 per cent, which is above the rate provided for in the EC Schedules.
In addition, since 1995, customs authorities in the United Kingdom have increased tariffs on
imports of certain personal computers from 3.5 per cent to 14 per cent, which is above the rate provided
for in the EC Schedules. These increases have resulted from the reclassification of PCs with multimedia
capability from category 8471 to other categories with higher duty rates. For example, PCs that have
a CD-ROM drive have been reclassified to be dutiable under category 8521, “ video apparatus” , and
PCs that have video tuner cards or printed circuit boards allowing television capability have been
reclassified to be dutiable under category 8528, “ televisions” .
As a result of these measures, the United States considers that its commerce has been accorded
treatment less favourable than that provided for in the EC Schedules, in contravention of the obligations
of the United KingdomunderArticleII of the GATT1994. In addition,the applicationof these measures
by the United Kingdom nullifies or impairs, within the meaning of GATT Article XXIII:1, benefits
accruing to the United States directly or indirectly under the GATT 1994. The United States reserves
the right to raise additional factual claims and legal matters during the course of the consultations.
We look forward to receiving your reply to this request and fixing a mutually convenient time
for consultations.