RESTRICTED
WORLD TRADE G/IT/SPEC/9
12January 1998
ORGANIZATION(98-0076)
Original: English Committee onParticipants ontheExpansion ofTrade
inInformation Technology Products
PROPOSED ADDITIONS TOPRODUCT COVERAGE
Submission bySingapore
Thefollowing communication, dated 29December 1997, hasbeenreceived fromthePermanent
mission ofSingapore.
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Iampleased toattach Singapore 'snon-paper ontheexpansion oftheITAproduct coverage.G/IT/SPEC/9
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Singapore non-paper ontheexpansion ofthe
Information Technology Agreement (ITA) product coverage
1. Under theITA,participants intheITAaretomeettoconsult andreview theproduct coverage
oftheITA("ITA II"). Thisprocess began inOctober 1997. Countries needtosubmit theirlistsof
requests by31December 1997, andnegotiations should becompleted byJune1998.
2. Inthisregard, theCommittee ofParticipants ontheExpansion ofTrade inInformation
Technology Products ("ITA Committee") should implement fourmeasures:
(a) Review theimplementation oftheITA;
(b) Encourage theITACommittee toincrease participation intheITA;
(c) Encourage current ITAparticipants toaccelerate theimplementation oftheir ITA
Commitments; and
(d) Broaden thescope oftheproducts covered bytheITA;
(a) Review theImplementation oftheITA
3. Altogether, 28participants representing 43countries havesigned theITA. However, notall
participants haveimplemented theITA. 6countries1haveyettosubmit theirschedules totheWTO,
modifying theirURschedules. Inaddition, Poland andTurkey haveindicated thatimplementation
would begin afterthecompletion ofdomestic procedural requirements.
4. TheWTO Secretariat alsocompleted astudy ofthedivergences inclassifying ITAproducts
inOctober 1997. Thestudy indicated thatthere were wide divergences inclassification between
countries.
5. Inorder tomonitor compliance with theITA, andtoharmonize divergences intariff
classification, eachparticipant should giveareport onthestatus ofitsimplementation oftheITA.
TheITACommittee should alsobegin work toharmonize divergences. Work onthiscould bedone
incooperation with, andwithaviewtowards incorporation intotheHS2000review exercise on-going
intheWorld Customs Organization.
(b) Increase participation intheITA
6. TheITA's28participants represent approximately 93%oftheworld 'strade inITproducts.
However, therearesome major ITtraders whoarestillnotyetparticipants, inparticular China (2.8%
ofworld ITtrade), andtheLatin American countries (e.g. Mexico (2.4%), Brazil (0.4%) and
Argentina (0.2%)).
7. TheITACommittee should encourage non-participants toparticipate intheITA. Inthisregard,
thedecision oftheITACommittee toallow observers toITACommittee proceedings isapositive
step. TheITACommittee should encourage allnon-participants intending toparticipate intheITA
toapply forobservership totheITACommittee quickly.
1Romania, Switzerland, Czech Republic, Slovak Republic, ElSalvador andNew Zealand.G/IT/SPEC/9
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(c) Encourage ITAparticipants toaccelerate theImplementation oftheirITAcommitments
8. Currently,mostITAparticipantshavetoeliminatetheirtariffsonITproductsin4equaltranches,
tobecompleted by1January 2000. Some ITAparticipants which aredeveloping countries arepermitted
upto2005 toeliminate theirtariffs.
9. Intheprocess oftariffelimination, astage iseventually reached when thetariffs become little
more thannuisance tariffs, which costmore toadminister thantherevenue theycollect (usually less
than5%). Thelowvalue ofthese tariffs alsomean thattheydonotconfer todomestic industries any
realprotection from foreign competition.
10. Asthesearenotcost-effective andareanunnecessary barrier, participants should immediately
eliminate thetariff forsuchITproducts onceitgoesbelow the5%threshold, instead ofwaiting for
thenextorsubsequent tranche toeliminate thetariff.
(d) Broaden thescope ofproducts covered bytheITA
11. Withtechnological developments, theproduct landscape forITproducts alsochanges. Hence,
products which werepreviously outside itsscope areembodying ITcharacteristics. Examples include
thedevelopment ofnewtechnologies, suchasTVsformultimedia applications (i.e.PC-TVs), and
newITusesforoldproducts, suchascameras andspeakers forvideo/tele-conferencing, andequipment
torecord suchconferences.
12. Inorder tofurther extend thebenefits oftheITA, theproduct coverage oftheITAshould
therefore befurther extended toinclude most ofHS8518-8522, 8525, 8528 and8540. Atable of
theHSlinesisenclosed atAnnex 1.
13. Thissecond tranche oftariffreductions could beundertaken in5equal stages, tobegin in1999,
andtobecompleted by2004. AswithITAI,developing countries would bepermitted alonger phase
inperiod.G/IT/SPEC/9
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Annex I
HSCode Description Whether already in
ITA
851810 Microphones andStands ex
851821 Single Loudspeakers mounted intheirenclosures
851822 Multiple Loudspeakers mounted inthesame enclosure
851829 Other loudspeakers notmounted inenclosure ex
851830 Headphones, earphones &combined microphone &
speakersex
851840 Audio Frequency electric amplifiers
851850 Electric sound amplifier sets
851921 Other record players without speakers
851929 Other Record Players withspeakers
851931 Turntables (record decks) withautomatic records
851939 Other turntables (record decks without automatic
records)
851940 Transcribing machines
851992 Pocket sized cassette players
851993 Other sound reproducing apparatus (Cassette type)
851999 Other non-cassette sound reproducing apparatus
852010 Dictating machines using onlyexternal power
852032 Digital audio typemagnetic taperecorders
852033 Cassette typemagnetic taperecorders
852039 Other non-cassette taperecorders withreproducers
852090 Other taperecorders
852110 Video recorders orreproducers, magnetic type
852190 Other video recorders orreproducers, exclmagnetic
type
852210 Pickupcartridges forrecord players
852510 Radio transmission apparatus ex
852812 Color television receivers
852813 Black andwhite andother monochrome video monitors
852821 Color video monitorsG/IT/SPEC/9
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HSCode Description Whether already in
ITA
852822 Black andwhite orother monochrome video monitors
854011 Colour television picture tubes
854012 Black andWhite ormonochrome picture tubes
854040 Data/graphic display tubes color withaphosphor dot
pitch lessthan0.4mm
854050 Data/graphic display tubes black andwhite witha
phosphor dotpitch lessthan0.4mm
854060 Other cathode raytubes
854071 Magnetrons
854072 Klystrons
854079 Other microwave tubes excluding gridcontrolled tubes
854081 Receiver oramplifiers valves andtubes
854089 Other valves andtubes
854091 Parts forcathode raytubes
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