Transcript Market Access: Tariffs ad other Charges - uni

Market Access: Tariffs and other Charges
WTO Law V.1
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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TRADE BARRIERS
1.
2.
•Tariff Barriers
•Tariffs and Charges
•Non-Tariff-Barriers
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Tariff Reduction and its impact
Customs Unions and
Free Trade zones
Development
preferences
Tariffs go down
since 1947 from
average 47 % to
3.9 %
Non Tariff Barriers
Agriculture?
NAMA negotiations ?
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Function of Tariffs
State income
Protectionist tool/Currency measure
Balancing against unfairness
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Tariff Schedule of a Country - 1
Part I : Most-favoured-nation or MFN concessions,
maximum tariffs to goods from other WTO members. Part
I is further divided into:
- Section 1A — tariffs on agricultural products
- Section 1B — tariff quotas on agricultural products
- Section II — Other products
Part II: Preferential concessions (tariffs relating to trade
arrangements listed in GATT Article I)
Part III: Concessions on non-tariff measures (NTMs)
Part IV: Specific commitments on domestic support and
export subsidies on agricultural products
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Tariff Schedule of a country - 2
Tariff item number
Description of the product
Rate of duty
Present concession established
Initial Negotiation Rights (or INR, such as main
suppliers of product)
Concession first incorporated in a GATT Schedule
INR on earlier occasions
Other duties and charges
For agricultural products special safeguards may
also be defined
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Harmonized System Classification
Section I (Chapters 1-5, live animals
and animal products);
Section II (Chapters 6-14, vegetable
products);
Section III (Chapter 15, animal or
vegetable fats and oils);
Section IV (Chapters 16-24, prepared
foodstuffs, beverages and spirits,
tobacco);
Section V (Chapters 25-27, mineral
products);
Section VI (Chapters 28-38, chemical
products);
Section VII (Chapters 39-40, plastics
and rubber);
Section VIII (Chapters 41-43, leather
and travel goods);
Section IX (Chapters 44-46, wood,
charcoal, cork);
Section X (Chapters 47-49, wood pulp,
paper and paperboard articles);
Section XI (Chapters 50-63, textiles and
textile products);
Section XII (Chapters 64-67, footwear,
umbrellas, artificial flowers);
Section XIII (Chapters 68-70, stone,
cement, ceramic, glass);
Section XIV (Chapter 71, pearls,
precious metals);
Section XV (Chapters 72-83, base
metals);
Section XVI (Chapters 84-85, electrical
machinery);
Section XVII (Chapters 86-89, vehicles,
aircraft, vessels);
Section XVIII (Chapters 90-92, optical
instruments, clocks and watches,
musical instruments);
Section XIX (Chapter 93, arms and
ammunition);
Section XX (Chapters 94-96, furniture,
toys, miscellaneous manufactured
articles);
Section XXI (Chapter 97, works of art,
antiques).
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Aspects of Calculating Tariffs
Classification
•Tariff Rate
Customs Valuation
•Origin of the Goods
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Classification of Goods
Most States: Harmonized
System of the WCO
H.S. Codes
Regularly Revised
General Rules for Interpretation
Explanatory notes (authentic
interpretation)
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Tariff Rates
Specific
Ad
Valorem
Mixed
•Quantity
•Value of goods
•Partly Quantity
•Partly Volume
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Customs Valuation
See Art. VII GATT and the „AGREEMENT ON IMPLEMENTATION OF
ARTICLE VII OF THE GENERAL AGREEMENT ON TARIFFS AND
TRADE 1994”
Different Methods of Calculation:
1.Transaction Value of the actual good
2.Transaction Value of identical goods
3.Transaction Value of similar goods
4.Deductive Value Method
5.Computed Value Method
6.Fall – Back Method
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Origin of the Goods
Relevance
• Preferential Treatment or Trade Measures
• Different steps of production in different
countries
• Possible Criteria
Last Substantial Transformation
Change of Tariff Classification
Value Added
Manufacturing or processing operation
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Tariff Regime in GATT
Tariffication -> Elimination of NTBs (XI GATT)
Reduction of Tariffs through negotiation Rounds
Geneva, Annecy, Torquay, Geneva, Dillon, Kennedy,
Tokyo, Uruguay, Doha (47 to 3,9 %)
Changing Approaches
Product-By-Product -> MFN
Linear Reduction Approach -> Different Levels of
reduction
Harmonization Formula -> differentiated reductions
Sector Approach: different formula in different sectors
Result
Country Schedules
Part of the GATT
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Bound Tariffs
Upper Ceiling of tariff duties on specific goods
(II.1 GATT)
Flexible by Renegotiation Rights (XXVIII GATT)
After 3 Years
With INR countries or member countries having a
„principal supplying Interest“ and other „substantial
interests“
Goal: to "endeavor to maintain a general level of
reciprocal and mutually advantageous concessions not
less favorable to trade than that provided for in this
agreement prior to such negotiations."
If no agreement – unilateral action and
countermeasure
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Other Border Charges
Other duties and charges (II.2 and VII GATT)
No ordinary duties
Administrative Services, Fees for Statistics, Security
Deposits
Generally a Standstill: notified in the schedule
Exceptions
Border Tax adjustment
AD and CV Duties
Commensurate Service Fees (VII.4 GATT)
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Freedom of Transit
Art. V GATT
Traffic in Transit
No discrimination
MFN treatment
No unreasonable charges,
regulations and delays
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Transparency and legal protection
Art. X GATT
Publication (1)
In advance (2)
Uniform, impartial and
reasonable administration (3 a)
Judicial Review (3 b, c)
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Non-tariff Barriers (NTBs)
„Prohibitions and restrictions other than
duties, taxes and other charges“
Legal or factual
Potential for restrictions is sufficient
Quantitative Restrictions
Import Licenses
Other NTBs
Tariff quotas ?
Import bans ?
Border measures
Border adjustment? Asbestos Case!
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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NTBs
Non-Tariff Barriers
Border Measures
QRs
Quota
Other NTBs
Import/ Export Bans
Import Licenses
Customs Formalities
Maximum/Minimum Prices
Preshipment I
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Applicable Norms: General (GATT)
General Rules
XI.1, XIII GATT
VIII GATT for fees and charges
IX. marks of origin (see also 22-24 TRIPS)
Exceptions
XI.2 are specific exceptions
XIX, XX, XXI GATT, XXIV, XXV are general exceptions
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Principles
Prohibition of all NTBs
Except for art. XI.2
If not justified under XX, XI, XXIV, XXV
And not in violation of art XIII (no discriminatory
application)
If not covered by special rules
TBT, SPS, Government Procurement Agreement,
Import Licenses Agreement
Agriculture: XI:2 and the Agreement on Agriculture
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Applicable Rules: Specific
Specific rules
TBT
SPS (see XX (b) GATT)
GPA
11 Safeguards Agreement (OMAs, VERs etc.)
4.2 Agriculture Agreement
Import Licensing Agreement
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Technical Standards
SPS
Annex A SPS
TBT (art. 1 and Annex 1)
Technical Regulation
Technical Standard
Not covered by the SPS (art. 1.5 TBT)
General Features
Promoting international harmonisation (3.1 SPS, 2.4 TBT)
Rebuttable Presumption in favor (2.5 TBT, 3.2 SPS
Additional obligations (3.3 SPS, 2.4 TBT
Notification (2.11 TBT, 7 SPS)
Explanation (2.5 TBT, 5.8 SPS)
Recognition of foreign standards
Limite duty (4 SPS, 2.7 TBT)
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Hierarchy of Norms
The MTAs prevail over GATT 1994 (Annex I a to
the WTOA) to the extent of possible conflicts
SPS prevail over TBT (1.5 TBT)
Important because of the difference between 3.3 SPS
and 2.4 TBT
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Divergence from international standards - SPS
SPS
Basis 3.1
Conformity 3.2
Divergence 3.3
Risk Assessment 5
Science and Economic factors (5.2 and 3)
 Actual risks
 Actual potential in the real world
 Particular type of risk
 Quantitative or qualitative assessment
 Own or foreign assessment
Necessity (5.4 and 5.6)
No arbitrary or unjustifiable distinctions (5.5.)
Preliminary risk determination (5.7)
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Divergence from international standards - TBT
Scope of application 1.3
MFN (2.1)
Necessity (2.2 and 2.3)
Legitimate objective
Harmonization (2.4)
Divergence if international standards are ineffective or
inappropriate
Conformity – Rebuttable Presumption (2.5), but only
duty to consider as principal constituent or
fundamental principle
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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GPA
Plurilateral Agreement (37 and the EU)
Procurement of central and sub-central government entities
Exceeding certain threshold limit values
Annex 5: 5 mio SDR
Supply and service: 400.000 or 200.000 SDR
Exceptions: Security and other legitimate public concerns, see art.
XXIII.2 GPA
Allowed Procedures
Open, non-open, limited
Transparency
Limited Acceptance
Dispute settlement
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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GATS
Market Access Rules (XVI) and other barriers
Freedom to exclude
Quantitative restricitions (XVI.2 a-d)
Company Law (XVI.2 e)
Investment Restrictions (XVI.2 f)
Concessions
Liberalization in the Commitments (Schedules) (XX)
Application of MFN (XVI.1)
Application of NT (XVII)
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Service Schedule
Four colums
Sector (12 classes with 150 sub-sectors) and
service mode (art. 1)
Terms, limitation and conditions on market access
Conditions and qualifications on national
treatment
Undertakings concerning additional commitments
Bound, Conditionally Bound, Unbound
Including intl. Transfers and Payments for
services
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Changes of Commitments
Rounds of Negotiation (XIX)
So far sucessful: telecommunications, financial services
and only partly movement of persons
Doha Round ?
Modification or withdrawal (XXI GATS)
Compensation
Arbitration
Countermeasures
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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Other trade barriers for services
Lacking transparency – see art. III
Unreasonable, subjective or partisan administration – see art. VI.1
Licensing, qualification requirements and technical standards as
nullification or impairment of market access commitments – see art.
VI.5 (a)
Non – recognition of foreign diplomas and certificates – see art. VII.1
Service monopolies – see art. VIII.1
Restrictive business practices – see art. IX
Restraints of international transfers and payments for services – see
art. XI
Government procurement – see art. XIII.1 and the GPA as a PTA
Univ. - Prof. Dr. Werner Meng, Europa Institut, Saarland University, Germany
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