INDIA – TARIFF TREATMENT ON CERTAIN GOODS IN THE INFORMATION AND COMMUNICATIONS TECHNOLOGY SECTOR REQUEST FOR CONSULTATIONS BY CHINESE TAIPEI
Document: REQUEST FOR CONSULTATIONS BY
Date: 9 September 2019
Document codes: WT/DS588/1; G/L/1323
Complainant: Taiwan
Respondent: India
Third parties: Brazil, Canada, China, EU, Indonesia, Japan, Norway, Pakistan, Russia, Singapore, South Korea, Thailand, Turkey, Ukraine, United Kingdom, U.S.
Dispute stage: Panel
Agreements cited: Art. II:1(a), II:1(b)  GATT 1994

INDIA – TARIFF TREATMENT ON CERTAIN GOODS IN THE INFORMATION AND
COMMUNICATIONS TECHNOLOGY SECTOR
REQUEST FOR CONSULTATIONS BY CHINESE TAIPEI
The following communication, dated 2 September 2019, from the delegation of the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu to the delegation of India, is circulated to
the Dispute Settlement Body in accordance with Article 4.4 of the DSU.

My authorities have instructed me to request consultations with the Government of India, pursuant
to Articles 1 and 4 of the Understanding on Rules and Procedures Governing the Settlement of
Disputes ("DSU"), and Article XXII:1 of the General Agreement on Tariff s and Trade 1994 ("GATT
1994") regarding tariff treatment India accords to certain information and communications
technology goods.

I. MEASURES AT ISSUE
India applies duties in excess of the bound rates in its Schedule of Concessions and Commitments
annexed to the GATT 1994 ("Schedule") on imports of certain information and communications
technology goods, including in particular the following categories of products:

- laboratory, hygienic or pharmaceutical glassware, glass shells, glass globes and glass
founts;
- machines and apparatus for the manufacture of semiconductor boules or wafers,
semiconductor devices, electronic integrated circuits or flat panel displays;
- electrical transformers, static converters and inductors;
- telephone sets, including telephones for cellular networks or for other wireless networks:
other apparatus for the transmission or reception of voice, images or other data, including
apparatus for communication in a wired or wireless network;
- microphones and stands therefor: loudsp eakers, headphones and earphones, sets
consisting of a microphone and one or more loudspeakers, audio -frequency electric
amplifiers, electric sound amplifier sets;
- transmission apparatus for radio -broadcasting or television, television cameras, digital
cameras and video camera recorders;
- parts suitable for use with transmission apparatus for radio -broadcasting or television,
television cameras, digital cameras and video camera recorders, radio apparatus, radio
navigational aid apparatus and radio remote con trol apparatus, reception apparatus for
radio-broadcasting, monitors and projectors;
- electronic integrated circuits;
- insulated wire, cable and other insulated electric conductors, optical fibre cables;
- oscilloscopes, spectrum analysers and other instrument s and apparatus for measuring or
checking electrical quantities, for measuring or detecting alpha, beta, gamma, X -ray,
cosmic or other ionising radiations; and
- measuring or checking instruments, appliances and machines, profile projectors.

By way of example, the applied duty rates on the tariff lines presented in the attached table clearly
exceed the bound rate in India's Schedule, which is set at 0%.
WT/DS588/1 • G/L/1323

India imposes these measures through, inter alia, the following legal instruments:

- Section 12 of the Customs Act, 1962, requiring the collection of customs duties as specified
in the Customs Tariff Act, 1975;
- Section 2 and the First Schedule of the Customs Tariff Act, 1975, as amended from time
to time, including most recently by:

• Finance Act of 2007 (2007-2008 "Union Budget");
• Finance Act of 2014 (2014-2015 "Union Budget");
• Finance Act of 2018 (2018-2019 "Union Budget");
- Notifications granting exemption from duty pursuant to Section 25 of the Customs Act,
1962 and to Section 3 of Customs Tariff Act, 1975 and setting the applicable rates for the
products concerned, including but not limited to in particular:

• No. 19/2016-Customs of 1 March 2016;
• No. 32/2016-Customs of 5 May 2016;
• No. 50/2017-Customs of 30 June 2017;
• No. 56/2017-Customs of 30 June 2017;
• No. 57/2017-Customs of 30 June 2017;
• No. 58/2017-Customs of 30 June 2017;
• No. 67/2017-Customs of 14 July 2017;
• No. 91/2017-Customs of 14 December 2017;
• No. 6/2018-Customs of 2 February 2018;
• No. 22/2018-Customs of 2 February 2018;
• No. 36/2018-Customs of 2 April 2018;
• No. 37/2018-Customs of 2 April 2018;
• No. 38/2018-Customs of 2 April 2018;
• No. 39/2018-Customs of 2 April 2018;
• No. 40/2018-Customs of 2 April 2018;
• No. 74/2018-Customs of 11 October 2018;
• No. 75/2018-Customs of 11 October 2018;
• No. 76/2018-Customs of 11 October 2018;
• No. 02/2019-Customs of 29 January 2019.
For each of the measures referred to above, this request also covers any amendments,
replacements, extensions, implementing measures or other related measures adopted by t he
legislative or executive authorities of India.
WT/DS588/1 • G/L/1323

II. LEGAL BASIS
The foregoing measures appear to be inconsistent with India’s obligations under Article II:1(a) and
(b) of the GATT 1994 because, through those measures, India accords less favorable treat ment to
the commerce of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu of certain
information and communication technology goods than provided for in its Schedule, and has failed
to exempt such goods from ordinary customs duties or othe r duties or charges in excess of those
set forth in its Schedule.

The foregoing measures appear to nullify or impair the benefits accruing to the Separate Customs
Territory of Taiwan, Penghu, Kinmen and Matsu directly or indirectly under the covered agreements.

The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu reserves the right to address
additional measures or raise additional factual claims or legal claims under other provisions of the
covered agreements regarding the above matters during the course of the consultations.

The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu looks forward to receiving
India’s reply to this request and to agreeing to a mutually acceptable date and place for
consultations.

WT/DS588/1 • G/L/1323

India WTO certified schedule India applied duties
(1)
HS2007
(2)
ex.
(3)
Description
(4)
Tariff
binding
(5)
HS2017
(6)
Description
(7)
Applied duty
7017.10 01' - - Quartz reactor tubes and holders designed
for insertion into diffusion and oxidation
furnaces for production of Semi-conductor
wafers.
0% 7017.10.00 - Of fused quartz or other fused silica 10%
7020.00 01' - Quartz reactor tubes and holders designed for
insertion into diffusion and oxidation furnaces
for production of semi conductor wafers
0% 7020.00.29
7020.00.90
- - - Other
- - Other
10%
10%
8486.10. 00 - - Machines and apparatus for the manufacture
of boules or wafers
0% 8486.10.00 - Machines and apparatus for the
manufacture of boules or wafers
7.5%
8486.20. 00 - - Machines and apparatus for the manufacture
of semiconductor devices or of electronic
integrated circuits
0% 8486.20.00 - Machines and apparatus for the
manufacture of semiconductor devices
or of electronic integrated circuits
7.5%
8486.30. 00 - - Machines and apparatus for the manufacture
of flat panel displays
0% 8486.30.00 - Machines and apparatus for the
manufacture of flat panel displays
7.5%
8486.40. 00 - - Machines and apparatus specified in Note 9
(C) to this Chapter
0% 8486.40.00 - Machines and apparatus specified in
Note 9 (C) to this Chapter
7.5%
8486.90. 00 - - Parts and accessories 0% 8486.90.00 - Parts and accessories 7.5%
8504.40 02' - - Static converters for automatic data
processing machines and units thereof, and
telecommunication apparatus
0% 8504.40.90 - - Other 15%
8504.90 01' - - Printed circuit assemblies for static
convertors for automatic data processsing
machines and units thereof, and
telecommunication apparatus; printed circuit
assemblies for other inductors for power
supplies for automatic data processing machines
and units thereof, and telecommunication
apparatus
0% 8504.90.90 - - Other 10%
8517.12 - - - Telephones for cellular networks or for other
wireless networks
0% 8517.12.10
8517.12.90
- - - Push button type
- - - Other
20%
20%
8517.61 - - - Base stations 0% 8517.61.00 - - Base stations 20%
8517.62 - - - Machines for the reception, conversion and
transmission or regeneration of voice, images or
other data, including switching and routing
apparatus
0% 8517.62.90 - - - Other 10% or
20%
WT/DS588/1 • G/L/1323

India WTO certified schedule India applied duties
8517.70

8517.70

8517.70
01'

02'

03'
- - Parts and accessories of the machines of
heading 84.71: For populated PCBs
- - Parts and accessories of the machines of
heading 84.71: Other
- - Other
0%

0%

0%
8517.70.10

8517.70.90
- - Populated, loaded or stuffed
printed circuit boards
- - Other
10%

15%
8518.10 01' - - Microphones having a frequency range of
300 Hz to 3,4 KHz with a diameter of not
exceeding 10 mm and a height not exceeding 3
mm, for telecommunication use
0% 8518.10.00 - Microphones and stands therefor 15%
8518.29

8518.29
01'

02'
- - - Loudspeakers, without housing, having a
frequency range of 300 Hz to 3,4 KHz with a
diameter of not exceeding 50mm, for
telecommunication use - cone type
- - - Loudspeakers, without housing, having a
frequency range of 300 Hz to 3,4 KHz with a
diameter of not exceeding 50mm, for
telecommunication use - Other than cone type
0%

0%
8518.29 - - Other 15%
8518.30 01' - - Line telephone handsets 0% 8518.30 - Headphones and earphones, whether
or not combined with a microphone,
and sets consisting of a microphone
and one or more loudspeakers
15%
8525.80 02' - - Still image video cameras and other video
camera recorders; digital cameras: Digital still
image video cameras
0% 8525.80.20 - - Digital cameras 15%
8529.90 01' - - Parts and accessories of the machines of
heading 84.71
0% 8529.90
8529.90.10

8529.90.20

8529.90.90
- Other:
- - For communication jamming
equipment
- - For amateur radio communication
equipment
- - Other

7.5%

7.5%

15%
8542.39 01' - - - Of monolithic and hybrid integrated circuits 0% 8542.39 - - Other 7.5%
8544.42 01' - - Of a kind used for telecommunications 0% 8544.42.91

8544.42.92

8544.42.93
- - - - Paper insulated, of a kind used
in telecommunication
- - - - Plastic insulated, of a kind used
in telecommunication
- - - - Rubber insulated, of a kind used
in telecommunication
15%

15%

15%
WT/DS588/1 • G/L/1323

India WTO certified schedule India applied duties
8544.49 01' - - - For a voltage not exceeding 80 V : Of a
kind used for telecommunications
0% 8544.49.91

8544.49.92

8544.49.93
- - - - Paper insulated, of a kind used
in telecommunication
- - - - Plastic insulated, of a kind used
in telecommunication
- - - - Rubber insulated, of a kind used
in telecommunication
15%

15%

15%
9030.90

9030.90
01'

02'
- - Parts and accessories of instruments and
apparatus for measuring or checking
semiconductor wafers or devices
- - Parts of instruments and appliances for
measuring or checking semiconductor wafers or
devices
0%

0%
9030.90.90 - - Other 7.5%
9031.49 01' - - - Optical instruments and appliances for
measuring surface particulate contamination on
semiconductor wafers
0% 9031.49.00 Other 7.5%