RESTRICTED
WORLD TRADE G/C/W/97
27October 1997
ORGANIZATION(97-4697)
Original: English Council forTrade inGoods
RECTIFICATIONS AND MODIFICATIONS TOSCHEDULES OFTARIFF CONCESSIONS
INTRODUCING HS96 CHANGES AND THEIR CERTIFICATION
Communication from Switzerland
Thefollowing communication, dated 20October 1997, hasbeenreceived fromthePermanent
Mission ofSwitzerland.
_____________
Thiscommunication addresses legal issues pertaining tothecertification ofHS96 changes,
inthelightoftherelevant WTO rulesandprocedures. Switzerland invites theCouncil forTrade in
Goods totakeintoconsideration thefollowing clarification withaviewtoassist theproper andtimely
certification ofproposed Schedules ofTariff Concessions incorporating HS96 changes.
I. RELEVANT WTO RULES AND PROCEDURES
On8October 1991, theCONTRACTING PARTIES totheGATT adopted theprocedures
toimplement changes totheHarmonized System (HS)-referred toas"simplified procedures"1,having
inmind theimportant changes totheHarmonized System which were duetobeimplemented on
1January 1996 (HS96).2Subsequently, inthedecision of13December 1995 tointroduce changes
intoWTO Schedules ofTariff Concessions on1January 1996,3itwasstated thatHS96 changes have
tobeintroduced onthebasisofthesesimplified procedures. TheDecision of8October 1991constitutes
therelevant WTO rulesandprocedures pertaining bothtothepresentation ofinformation bytheMember
proposing HS96 changes toitsSchedule andtothemodalities forverification byother Members as
wellasthecertification bytheWTO oftheproposed HS96 changes.
II. RIGHTS AND OBLIGATIONS OFMEMBERS UNDER THESIMPLIFIED PROCEDURE
Astotheprovision ofinformation byaMember proposing HS96 changes toitsSchedule,
paragraph 2ofthesimplified procedures contains obligations forMembers proposing HS96 changes
totheirSchedules ofTariff Concessions. Twodifferent cases arecovered byparagraphs 2(a)and2(b)
ofthesimplified procedures:
A. Case 1(Paragraph 2(a)ofthesimplified procedures)
Incasetheproposed changes donot,intheviewofaMember adhering totheprinciples of
theWorld Customs Organization toimplement HSchanges, alterthescope ofaconcession, eachitem
1BISD 39S/300 (simplified procedures).
2SeenotebytheSecretariat dated 6October 1997 (G/L/190).
3WT/L/124 (16January 1996).G/C/W/97
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concerned should beindicated byunderlining orshading.4Noadditional information isrequested from
theMember proposing onlychanges which donotalterthescope ofaconcession provided thatthe
Secretariat hascirculated acommunication concerning theacceptance bytheCCC ofarecommendation
torevise theHarmonized System nomenclature made inaccordance withArticle 16oftheHarmonized
System Convention5,andcorrelation tables prepared bytheCCC Secretariat.6
Astothemodalities forverification oftheHS96 changes proposed byaMember, paragraph
4ofthesimplified procedures states therightforanyMember toraiseanobjection tothecertification
oftheproposed changes within 90daysontheground thattheproposed change orrectification isnot
ofapurely formal character.7Thismeans thatanobjection canberaised if,andforeachitemfor
which, theproposed change orrectification e.g.alters thescope ofaconcession intheview ofthe
"objecting" Member. Insuch asituation theprocedures fornegotiations under Article XXVIII
(BISD 27S/26) shallapply (seeCase 2below).8
Intherecent past, some Members have, within the90daysprescribed, communicated that
they"reserve theirWTO rights". Paragraph 4ofthesimplified procedures states thataMember wishing
toobject tothecertification ofproposed HSchanges hastherighttodosowithin the90daysprescribed.
"Reserving" thisrightcannot prolong thistime-limit andthedecision of8October 1991doesnotforesee
anypossibility toextend the90daystimelimit. Thus, paragraph 4limits therighttoobject tothe
certificationtothecasewherethe"objecting"Memberconsidersthattheproposedchangeorrectification
alters thescope ofaconcession. Such anassertion hastobeargued andsupported byevidence. A
contrario, acommunication ofaMember indicating that"itreserves itsWTO rights", without specifying
thenature ofitsconcerns cannot beregarded, inthecontext ofexisting relevant rulesandprocedures,
asan"objection tothecertification ofthechanges ontheground thattheproposed change orrectification
isnotofapurely formal character".
Astothecertification oftheproposed HS96 changes, since thecommunication byaMember
stating that"they reserve theirWTO rights", asmentioned above, doesnotconstitute anobjection in
thesense ofparagraph 4,thecirculation ofa"procès-verbal ofcertification oftheproposed modification
toaSchedule toimplement HS96 changes" ought tobeperformed without delay aftertheexpiring
ofthe90daysinorder toensure legalcertainty oftheSchedules ofTariff Concessions.
B. Case 2(paragraph 2(b)ofthesimplified procedures)
Incasetheproposed changes do,intheviewofaMember, alterthescope ofaconcession,
orifavalid objection ismade under theprocedure ofparagraph 4,thefollowing information shall
alsobesubmitted fortheeachitemconcerned: aconcordance table (between theexisting andthe
proposed schedule andviceversa), indication ofINRholders aswellasimport statistics.9
4Paragraph 2(a)ofthesimplified procedures.
5Paragraph 2(first sentence) ofthesimplified procedures.
6Paragraph 2(second sentence) ofthesimplified procedures.
7Paragraph 4ofthesimplified procedures.
8Paragraph 6ofthesimplified procedures.
9Paragraph 2(b)ofthesimplified procedures.G/C/W/97
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Astothemodalities forverification oftheHS96 changes proposed byaMember, paragraph 5
ofthesimplified procedures states therightforanyMember torequest, within 90daysfollowing the
circulation oftherelevant documentation, negotiations orconsultations under Article XXVIII.
Astothecertification oftheproposed HS96 changes resulting from thecompletion ofthe
Procedures forNegotiations under Article XXVIII10,acomprehensive listofallchanges andthe
corresponding amended pages oftheSchedule shall besenttotheSecretariat forcertification, as
stipulated inparagraph 6ofthesimplified procedures.
10BISD 27S/26.