Procedure for the
Introduction of MULTIPLE CHANGES TO THE Harmonized
System to Schedules of Concessions using the Consolidated
Tariff Schedules (CTS) database
Draft DECISION
The General Council,
Having regard to Articles IV:2 and IX:1 of the WTO Agreement;
Recalling that the contracting parties to the GATT 1947, by their Decision
of 12 July 1983[1], agreed on a method to introduce the Harmonized System (HS) into
schedules of concessions;
Recalling that the contracting parties to the GATT 1947, by their Decision
of 8 October 1991[2], decided on simplified procedures to introduce HS changes to schedules
of concessions;
Noting that WTO Members established
a Consolidated Tariff Schedule (CTS) database which, although not legally
binding, could serve as a valuable tool for the
verification and certification of commitments;
Taking into account the desire of Members to facilitate and simplify the introduction of HS changes
into WTO schedules by making a better use of the CTS database;
Decides that:
1 MULTIPLE
TRANSPOSITION OF MEMBERS' SCHEDULES OF CONCESSIONS
1._
This procedure allows Members
with WTO Schedules of concessions certified in old versions of the Harmonized
System (HS) nomenclature to update them directly into the most recent
version of the HS by implementing multiple transpositions under the same
procedure, in a way that is compatible with existing individual transposition decisions.
For the purpose of this decision, the most recent version of the Harmonized
System is the seventh edition (HS 2022). This means that, for example,
Schedules of concessions which are currently certified in HS 2002 would be
transposed four times sequentially to HS 2022 under a single transposition
procedure, covering changes from HS 2002 to HS 2007, from HS 2007
to HS 2012, from HS 2012 to HS 2017 and from HS 2017 to HS 2022.
2._
The procedures, methodologies
and correlation tables of the multiple transpositions shall be based on the
previously adopted decisions for the introduction of the Harmonized System
changes of HS 2007[3], HS 2012[4], HS 2017[5] and HS 2022[6] with the modifications
provided below.
3._
This decision will enter into
force subject to the availability of resources by the Secretariat.
2 PREPARATION AND DISTRIBUTION OF THE DRAFT MULTIPLE
TRANSPOSITION FILE
4._
The Secretariat shall prepare the
material necessary for the multiple transposition of the Schedules of concerned
Members upon their request and depending on the availability of resources to
the Secretariat. Priority will be given to the Schedules of Members which are
certified in an older version of the nomenclature (e.g. HS 2002). If the
Secretariat is requested to prepare a multiple transposition file for multiple
Members whose Schedules are certified in the same older version of the
nomenclature, priority will be given to the Schedules of least developed and
developing Members as appropriate. Members wishing to undertake their own multiple
transposition shall inform the Secretariat in writing before starting this work
so that the review of their draft multiple transposition file can be planned by
the Secretariat, taking into account regular transposition work. In case
additional information is required, the Member shall promptly provide it to the
Secretariat.
5._
The multiple transposition work
shall be based on each Member's latest certified Schedule, as reflected in the
Consolidated Tariff Schedule (CTS) database.
6._
In preparing the multiple transposition
file, and to the extent possible, the scope of the concessions and other
commitments shall remain unchanged. Any tariff line for which a change in the
scope of a concession may have occurred due to the complex technical nature of
the transposition shall be clearly flagged. Paragraph 4 of Annex 2
and paragraph 17 below describe how these situations shall be addressed.
2.1 Multiple transposition work by the Secretariat
7._
The Secretariat shall introduce
into the Member's Schedule, as reflected in the CTS database, all changes resulting
from all the relevant amendments to the HS nomenclature.[7] The Secretariat shall
update all the tariff codes and descriptions that change due to the
introduction of the relevant amendments of the Harmonized System, including
those relating to tariff quotas and export subsidies, if applicable. In doing
this work, the Secretariat shall abide by the technical procedures described in
Annex 2 to this decision, which mostly reproduce those used in previous
transposition procedures. The Secretariat shall
prepare, based on the CTS database, a separate file to reflect all the
changes in the nomenclature that were introduced under each relevant HS amendment.
This separate file shall be prepared as described in Annex 1 and shall be
considered as the "draft multiple transposition file" for the purpose
of this decision. Additional information on how to prepare the draft multiple
transposition file are provided in the technical note circulated in document JOB/MA/164.
8._
The Secretariat shall send to
the Member its draft multiple transposition file for examination as soon as the
technical work has been completed. The date of this communication shall
hereinafter be referred to as the "first date for a multiple transposition
file prepared by the Secretariat". Upon receipt of this file, the Member
shall have the possibility to seek clarifications from the Secretariat and
propose changes as laid out in Section 3 of these procedures.
2.2 Members preparing their own multiple transposition
9._
Members that undertake to
prepare their own multiple transposition shall update all the tariff codes and
descriptions that change due to the introduction of relevant amendments of the Harmonized
System, including those relating to tariff quotas and export subsidies, if applicable.
In doing this work, they shall abide by the technical procedures described in
Annex 2 to this decision. These Members are expected to submit to the
Secretariat their draft multiple transposition file for examination and final
formatting. The date of receipt shall hereinafter be referred to as the
"first date for a multiple transposition file prepared by the
Member".
3 EXAMINATION OF DRAFT MULTIPLE TRANSPOSITION FILES
AND RELEASE FOR MULTILATERAL REVIEW
10._
Members for whom the
Secretariat has prepared a draft multiple transposition file are expected to
examine their file and to provide the Secretariat with a written communication
that either approves the file (case 1) or provides specific comments on
its contents (case 2). Such communications should reach the Secretariat no
later than six months following the "first date" for a file
prepared by the Secretariat.
11._
The Secretariat shall review
the draft multiple transposition file prepared by Members pursuant to
paragraph 9 before their release for multilateral review. If the
Secretariat has no comments on the file, it shall then be released for
multilateral review (case 1). If the Secretariat has comments (case 2),
these will then be transmitted to the Member concerned no later than four months
following the "first date" for a file prepared by the Member.
12._
In case 1, the Secretariat
shall release the draft multiple transposition file for multilateral review
with a headnote indicating that it has been approved by the Member.
13._
In case 2, both the Member
concerned, and the Secretariat shall endeavour to reach a common understanding
on the issue(s) raised and reflect any changes accordingly in the draft multiple
transposition file, with a view to releasing it for multilateral review no
later than six months from the appropriate "first date". In this
regard:
(a) When a common understanding is reached and no change is
required, the Secretariat shall standardize the original draft multiple
transposition file and release it for multilateral review with a headnote
indicating that the file has been approved by the Member.
(b) When a common understanding is reached and changes to the draft multiple
transposition file are required, the Secretariat shall prepare a standardized revised
file and release it for multilateral review with a headnote indicating that the
file has been approved by the Member.
(c) When a common understanding has not been reached, the
Secretariat shall prepare a standardized revised draft multiple transposition file
including the specific changes proposed by the Member and release the file for
multilateral review. The revised file shall include a headnote indicating that
the file has been approved by the Member and shall also describe the
Secretariat's observations on the file.
14._
If the Secretariat does not
receive any response from the Member concerned within six months from the
appropriate "first date", the draft multiple transposition file
will be released for multilateral review with a headnote indicating that the
Member concerned has neither provided any comments nor approved the file.
4 MULTILATERAL REVIEW PROCESS OF MULTIPLE
TRANSPOSITION FILES
15._
Multilateral review of draft multiple
transposition files released pursuant to Section 3 of these procedures
shall take place in the framework of informal dedicated sessions of the
Committee on Market Access, which shall be scheduled by the Secretariat as
required and in parallel with the regular ongoing transposition work. The
Secretariat will post the multiple transposition files on the Tariff Analysis
Online (TAO)[8] on dates that should be at least
three months prior to the informal sessions scheduled to this effect. Members
shall be notified of such postings through a communication by the Secretariat.
16._
Modifications agreed at the
multilateral review sessions shall be incorporated by the Secretariat into a
revised version of the multiple transposition file, which shall then be
resubmitted for multilateral review in accordance with paragraph 13. In
case a Member has a query or comment concerning another Member's draft multiple
transposition file but is unable to attend the meeting at which these changes
are to be reviewed, it may request the Chair to convey those queries/comments
to the other Member at the time of the multilateral review.
17._
Where the scope of a concession
is modified as a result of the transposition in a way that impairs its value,
consultations and renegotiations pursuant to Article XXVIII of the GATT 1994
shall be entered into by the Member concerned.[9] The status of discussions
and consultations between Members, including GATT Article XXVIII renegotiations,
should be reported to other Members
at the multilateral sessions to ensure full transparency.
5 CERTIFICATION OF CHANGES RESULTING FROM A MULTIPLE
TRANSPOSITION
18._
When there is no objection
remaining on a draft multiple transposition file at a multilateral review
session, such file will then be considered approved by the Committee on Market
Access. The file will be submitted for certification as provided for in
paragraph 20 below, with the exception of any draft multiple transposition
file released under paragraph 14, where the Member concerned has still
neither provided any comments nor approved the file. The latter files shall
also be submitted for certification as provided for in paragraph 20 below,
unless the Member concerned submits in writing to the Secretariat a reservation
within one month from the date of approval of its draft multiple transposition file
at the multilateral review session.
19._
Members having submitted such a
reservation shall also provide in writing to the Secretariat details of the
specific reasons no later than two months from the date of their initial
communication containing their reservation. If such specific reasons are not
provided within the deadline, the certification of their multiple transposition
file shall take place as provided for in paragraph 20 below. In case any
amendment is introduced to the multiple transposition file, the multilateral
review process provided for in Section 4 shall be resumed for such a file.
20._
The Secretariat shall prepare a
draft paper version of the changes, as contained in the approved multiple
transposition file which shall be circulated pursuant to the 1980 Decision
on Procedures for Modification and Rectification of Schedules of Tariff
Concessions (L/4962).
6 PERIODIC REPORT BY THE SECRETARIAT
21._
The Secretariat shall report on
the status of work in relation to multiple transposition, which shall include –
to the extent possible– the following information: (i) a list of the
Members that will prepare their own draft multiple transposition files and the
list of Members that have requested the Secretariat to prepare a file;
(ii) the draft multiple transposition files that have been completed by
the Secretariat and the date when they were sent to Members; (iii) the
draft multiple transposition files prepared by Members which have been reviewed
by the Secretariat and the date when the verification report was sent to
Members; (iv) the draft multiple transposition files released for
multilateral review, including a mention of any relevant explanatory note; (v) the
progress made on each draft multiple transposition file, including Members
having raised reservations; (vi) the draft multiple transposition files
that have been approved in the multilateral review and the date of circulation
pursuant to the 1980 Procedures (L/4962); and (vii) the approved multiple transposition files that
have been certified.
_______________
ANNEX 1
Draft multiple
transposition file[10]
1._
The draft multiple
transposition file shall cover all tariff lines under headings which are
affected by any amendments in all of the previous versions of the Harmonized
System since the latest certified file, as well as the corresponding
concordance tables in the relevant nomenclatures. The
Secretariat will prepare as a separate file, which will not be subject to
multilateral review, a complete draft CTS file in the latest version of
the nomenclature (HS 2022). This additional file is for reference only and
seeks to facilitate the preparation of an updated version of the CTS database
once the multiple transposition procedures are finalized and certified.
2._
The draft multiple transposition file shall contain for each bound tariff line, inter alia, the following data elements:
·_
Tariff
line codes in the latest nomenclature of the Harmonized
System, i.e., HS2022, (including suffixes or ex);
·_
Product
description;
·_
Base
duty (if the final bound duty is not fully implemented at the date of the
transposition);
·_
Final
bound duty;
·_
Implementation
period (if the final bound duty is not fully implemented at the date of the
transposition);
·_
Other
duties and charges;
·_
Special
safeguard;
·_
Legal
instrument (present and earlier);
·_
INR
(present and earlier if available in the CTS);
·_
Certification
indicator.
3._
Additional tables containing
other relevant concessions and commitments that may be affected by the multiple
transposition procedure (e.g., tariff quotas, non-tariff measures, and
agricultural export subsidies) shall also be included.
4._
Members who undertake to prepare their own multiple transposition shall submit
all the above-mentioned information to the Secretariat in electronic format.