INTRODUCTION OF HARMONIZED SYSTEM 2022 CHANGES INTO
WTO SCHEDULES OF CONCESSIONS

Draft Waiver Decision

Revision

The General Council,

Having regard to Articles IV:2 and IX:3 of the Marrakesh Agreement establishing the World Trade Organization (the "WTO Agreement");

Recognizing that the adoption of the Harmonized Commodity Description and Coding System (hereinafter referred to as the "Harmonized System") has, in addition to facilitating international trade and the analysis of trade statistics, ensured greater uniformity in countries' customs classification, thus enabling them to monitor and protect the value of tariff concessions;

Noting that, in accordance with Article 16 of the Harmonized System Convention, the Council of the World Customs Organization adopted a Recommendation on 29 June 2019 concerning amendments to the Harmonized System which came into force on 1 January 2022 ("HS2022"), and that complementary amendments to the HS2022 nomenclature have been accepted as a result of the Council Recommendations of 25 June 2020 and 24 June 2021;

Considering that the General Council by its decision of 20 December 2022[1] acting pursuant to the provisions of Articles IV:2 and IX:3 of the WTO Agreement, suspended the application of the provisions of Article II of GATT 1994 for certain Members, from the date of implementation of HS2022 changes for those Members until 31 December 2023, to the extent necessary to implement domestically the HS2022 changes pending incorporation of such changes into their Schedules of Concessions, subject to certain conditions;

Noting the procedure adopted by the General Council to introduce HS2022 changes to Schedules of Concessions[2], which in certain cases may require negotiations and/or consultations under Article XXVIII of GATT 1994;

Considering that the Members listed in the Annex[3] to this Decision would need more time to proceed with consultations or possible Article XXVIII negotiations;

Considering that other Members not listed in the Annex to this Decision may already have domestically implemented HS2022 changes, or may intend to do so, pending incorporation of such changes into their Schedules of Concessions, and may also desire to be covered by this waiver;

Decides, in view of the exceptional circumstances, to suspend the application of the provisions of Article II of GATT 1994:

a)_    for those Members listed in the Annex, until 31 December 2024; and

b)_    for any other Member not listed in the Annex that notifies the Committee on Market Access of its wish to be included in the waiver decision from the date of implementation of the HS2022 changes for that Member until 31 December 2024;

to the extent necessary for the purpose of enabling such Members to domestically implement the recommended amendments to the Harmonized System nomenclature pending incorporation of such changes into their Schedules of Concessions, subject to the following conditions:

_                             i._        Members covered by paragraphs (a) and (b) of this Decision shall, where necessary, promptly enter into negotiations and/or consultations with interested Members pursuant to paragraphs 1-3 of Article XXVIII of GATT 1994;

_                            ii._        The negotiations and/or consultations mentioned above shall, to the extent possible, be completed by 31 December 2024; and

_                           iii._        In accordance with the provisions of Article XXVIII:3 of GATT 1994, applied mutatis mutandis to the present waiver, pending the entry into force of the results of the negotiations and/or consultations mentioned above, the other Members will be free to suspend concessions initially negotiated with the Member concerned to the extent that they consider that adequate compensation is not offered by the Member concerned.

ANNEX

Members which have requested to be covered by the waiver
under the above decision

__________