. /.WORLD TRADE
ORGANIZATIONG/C/W/460
21 March 2003
(03-1647)
Council for Trade in Goods
INTRODUCTION OF  HARMONIZED SYSTEM 1996 CHANGES
INTO WTO SCHEDULES OF TARIFF CONCESSIONS
Malaysia – Schedule XXXIX
Draft Waiver Decision
The General Council,
Considering  that the Members of the WTO, by their Decisions of 13 December 1995,
18 July 1996, 24 April 1997, 22 October 1997, 24 April 1998, 14 October 1998, 15 June 1999,
4 November 1999, 3 May 2000, 8 December 2000, 8 May 2001 and 13 May 20021, acting pursuant to
the provisions of paragraph 3 of Article IX of th e WTO Agreement, suspended the application of the
provisions of Article II of GATT 1994 until 30 April 2003, for the purpose of enabling the Members
listed in the Annex to implement the recomm ended amendments to the Harmonized System
nomenclature;
Considering  that by their decision of 8 May 2001, Me mbers of the WTO also agreed that it
would be the last time that an extension of the HS 96 waiver would be granted on a collective basis, but
that this would not, however, preclude Members from requesting waivers on an individual basis;
Noting  that Malaysia has requested a waiver for the reasons explained in its request2;
Considering  that Malaysia would need more time  to notify the WTO Secretariat of the
corrections to its schedule,
Acting  pursuant to the provisions of paragra ph 3 of Article IX of the WTO Agreement,
Decides, in view of the exceptional circumstances, to  suspend the application of the provisions
of Article II of GATT 1994, until 30 April 2004, for the purpose of enabling Malaysia to implement the
recommended amendments to the Harmonized Sy stem nomenclature, subject to the following
conditions: 
(i) Malaysia shall, where necessary, promptly enter into negotiations and consultations
with interested Members pursuant to paragraphs 1-3 of Article XXVIII of
GATT 1994;
(ii) the negotiations and consultations mentioned above shall be completed not later than
30 April 2004;
                                                     
1WT/L/124+Corr.1, WT/L/173, WT/L/216, WT/L/243, WT/L/268, WT/L/281, WT/L/303, WT/L/338,
WT/L/351, WT/L/379, WT/L/400 and WT/L/465.
2 G/L/615.G/C/W/460
Page 2
(iii) Pending entry into force of the results of the negotiations or consultations mentioned
above, the other Members will be free, pu rsuant to Article XXVIII:3, to suspend
concessions initially negotiated with Malaysia  to the extent that they consider that
adequate compensation is not offered by Malaysia.
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