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E3 - 1 © WTO - OMC 1999 Module 3 - Rules on NTMs Slide n° 1 Goods: Rules on NTMs Goods: Rules on NTMs Technical barriers to trade Sanitary and phytosanitary measures Customs and trade administration Customs valuation Rules of origin Pre-shipment inspection

Goods: Rules on NTMs

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Goods: Rules on NTMs. Technical barriers to trade Sanitary and phytosanitary measures Customs and trade administration Customs valuation Rules of origin Pre-shipment inspection Import licensing. TBT: Why an Agreement?. High number of technical regulations and standards - PowerPoint PPT Presentation

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Goods: Rules on NTMsGoods: Rules on NTMs

• Technical barriers to trade

• Sanitary and phytosanitary measures

• Customs and trade administration • Customs valuation

• Rules of origin

• Pre-shipment inspection

• Import licensing

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TBT: Why an Agreement?TBT: Why an Agreement?

• High number of technical regulations and standards

• Impact on international trade

• From the Tokyo Round Standards Code to the WTO

TBT Agreement

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TBT: DefinitionsTBT: Definitions

• Technical regulations and standards in the TBT

Agreement

• Difference between a technical regulation and a standard

• Conformity assessment procedures

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TBT: ObjectivesTBT: Objectives

• Protection of human safety or health

• Protection of animal and plant life or health

• Protection of the environment

• Prevention of deceptive practices

• Other objectives

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TBT: Divergent regulations - costs for exportersTBT: Divergent regulations - costs for exporters

• Loss of economies of scale

• Conformity assessment costs

• Information costs

• Surprise costs

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TBT: PrinciplesTBT: Principles

• Avoidance of unnecessary obstacles to trade

• Non-discrimination and national treatment

• Harmonization

• Equivalence of technical regulations

• Mutual recognition of conformity assessment procedures

• Transparency

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TBT: Avoidance of unnecessary obstacles to tradeTBT: Avoidance of unnecessary obstacles to trade

• What are the sources of technical barriers to trade?

• TBT provisions on technical regulations

• Avoidance of unnecessary obstacles to trade

• When is a technical regulation an unnecessary obstacle to trade?

• TBT provisions on conformity assessment procedures

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TBT: Non-discrimination and national treatmentTBT: Non-discrimination and national treatment

• Technical regulations

• Conformity Assessment Procedures

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TBT: Harmonization (1)TBT: Harmonization (1)

• Producers' benefits

• Consumers' benefits

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TBT: Harmonization (2)TBT: Harmonization (2)

• Introduction

• Harmonization and the TBT Agreement

• Participation in international standardizing bodies

• Special and differential treatment

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TBT: EquivalenceTBT: Equivalence

• What is equivalence?

• How does equivalence work?

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TBT: Mutual recognitionTBT: Mutual recognition

• Costs of multiple testing

• What is mutual recognition of conformity assessment

procedures?

• How does mutual recognition work?

• Mutual recognition and the TBT Agreement

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TBT: Transparency (1)TBT: Transparency (1)

• Notifications

• Technical regulations and conformity assessment procedures

• Statements on the implementation and administration of the Agreement

• Bilateral or plurilateral agreements

• Code of good practice

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TBT: Transparency (2)TBT: Transparency (2)

• Enquiry points

• The Committee on Technical Barriers to Trade

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TBT: The Code of Good PracticeTBT: The Code of Good Practice

• Why a Code of Good Practice?

• Who can accept the Code?

• What does membership entail?

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TBT: Technical assistanceTBT: Technical assistance

• Who has the right to technical assistance?

• What type of assistance?

• WTO Secretariat's technical assistance activities

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SPS: IntroductionSPS: Introduction

• SPS Agreement and Agreement on Agriculture

• From TBT to SPS

• GATT 1947 Article XX(b)

• Preserve Members' rights

• Reduce arbitrariness

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SPS: Scope and coverageSPS: Scope and coverage

• Scope

• Definition of SPS measures

• Case 1

• Case 2

• Case 3

• Case 4

• Types of measures

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SPS: Main featuresSPS: Main features

• Harmonization

• Equivalence

• Risk assessment

• Disease-free areas

• Transparency

• Developing countries

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SPS: HarmonizationSPS: Harmonization

• Definition

• The role of standard-setting organizations

• The Three Sister Organizations

• FAO/WHO Codex Alimentarius

• OIE

• IPPC

• Use of international standards

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SPS: EquivalenceSPS: Equivalence

• Different ways of reducing risk

• Burden of proof

• Bilateral consultations

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SPS: Risk assessmentSPS: Risk assessment

• The process

• Consistency in risk management decisions

• Selection of an SPS measure

• Exceptions

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SPS: Disease-free areasSPS: Disease-free areas

• The principle

• Burden of demonstration

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SPS: TransparencySPS: Transparency

• National Notification Authority

• National Enquiry Point

• Notification procedures

• Regular procedure

• Format

• Dual aspect: TBT/SPS

• Emergency procedure

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SPS: Developing countriesSPS: Developing countries

• Special and differential treatment

• Technical assistance

• Training activities

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SPS: Dispute settlementSPS: Dispute settlement

• Unified WTO dispute settlement procedures

• Technical and scientific advice

• Alternative dispute settlement procedures

• Cases

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SPS: The CommitteeSPS: The Committee

• Role

• Regular tasks

• Reviewing implementation

• Checking compliance

• Specific tasks

• Monitoring the harmonization process

• Drafting guidelines on consistency

• Liaison and coordination

• Recommendations on the future of the Agreement

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Customs and trade administration Customs and trade administration

• VAL: Customs valuation

• RO: Rules of origin

• PSI: Pre-shipment inspection

• LIC: Import licensing

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VAL: BackgroundVAL: Background

• Specific and ad valorem customs duties

• Definition

• Short historical overview

• Article VII GATT

• Brussels definition of value

• Tokyo Round Valuation Code

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VAL: The WTO AgreementVAL: The WTO Agreement

• The new Agreement

• Basic principle: Transaction value

• The 6 Methods

• Method 1: transaction value

• Method 2: transaction value of identical goods

• Method 3: transaction value of similar goods

• Method 4: deductive method

• Method 5: computed method

• Method 6: Fall-back method

• Other provisions

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VAL: Method 1 - Transaction valueVAL: Method 1 - Transaction value

• Definition of transaction value

• Conditions to be fulfilled

• Evidence of sale

• No restriction on the disposition or use

• Not subject to additional conditions

• Full prices, unless...

• Sufficient information for adjustments

• Buyer and seller not related, otherwise ...

• Related parties

• Cases where Customs Administrations have reasons to doubt the truth or accuracy of the declared value

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VAL: Methods 2 and 3VAL: Methods 2 and 3

• Method 2: Transaction value of identical goods (Article 2)

• Exceptions

• Method 3: Transaction value of similar goods (Article 3)

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VAL: Method 4 - Deductive valueVAL: Method 4 - Deductive value

• Deduction of value from the price of the greatest aggregate quantity sold

• Determination of the greatest aggregate quantity sold

• Deductions from the price at the greatest aggregate quantity

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VAL: Method 5 - Computed valueVAL: Method 5 - Computed value

• Definition: Production cost and profits and expenses

• Production cost = value of materials and fabrication

• Profit and general expenses

• Other expenses to be added

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VAL: Method 6 - fall-back methodVAL: Method 6 - fall-back method

• Definition

• Valuation criteria not to be used

Customs value determination based on "reasonable means consistent with the principles and general provisions of the Agreement, Article VII GATT and on the basis of available data".

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VAL: Special and differential treatmentVAL: Special and differential treatment

• Delay of application of the Agreement for five years for developing countries

• Delay of application of the computed value method for three years following the application of all other provisions of the Agreement

• Extension of the transition period

• Reservations to retain established minimum values

• Reservation against Article 4

• Special application of the deductive method

• Technical assistance

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VAL: InstitutionsVAL: Institutions

• Committee on Customs Valuation

• Technical Committee on Customs Valuation

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RO: BackgroundRO: Background

• Definition

• Where are rules of origin used?

• No specific provision in GATT

• Interest in the harmonization of rules of origin

• Increased number of preferential trading arrangements

• Increase in the number of origin disputes

• Increased use of anti-dumping laws

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RO: The UR AgreementRO: The UR Agreement

• Introduction

• Aims of the Agreement

• harmonization

• general principles

• Coverage: all non-preferential rules of origin

• Institutions

• WTO Committee on Rules of Origin

• WCO Technical Committee

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RO: HarmonizationRO: Harmonization

• The Harmonization Work Programme (HWP)

• Definitions of goods being wholly obtained

• Last substantial transformation

• Change of tariff heading

• Supplementary criteria

• Overall architectural design

• Results of the Harmonization Work Programme

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RO: Other provisionsRO: Other provisions

• Disciplines during the transition period

• Disciplines after the transition period

• Consultation and dispute settlement

• Preferential rules of origin

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RO: NotificationsRO: Notifications

• Non-preferential rules of origin

• Preferential rules of origin

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PSI: Background and overviewPSI: Background and overview

• Background

• Functions of PSI

• conformity of goods with the terms of the sales contract

• verification of invoice price

• Definitions

• Objectives

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PSI: Obligations of user MembersPSI: Obligations of user Members

• Non-discrimination (Article 2.1)

• Governmental requirements (Article 2.2)

• Site of inspection (Article 2.3)

• Standards (Article 2.4)

• Transparency (Articles 2.5 to 2.8)

• Protection of confidential business information (Articles 2.9 to 2.13)

• Conflicts of interest (Article 2.14)

• Delays (Articles 2.15 to 2.19)

• Price verification (Article 2.20)

• Appeals procedure (Article 2.21)

• Derogation (Article 2.22)

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PSI: Obligations of exporter MembersPSI: Obligations of exporter Members

• Non-discrimination (Article 3.1)

• Transparency (Article 3.2)

• Technical Assistance (Article 3.3)

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PSI: Independent review proceduresPSI: Independent review procedures

• Purpose of the Independent Review Procedures

• Independent Entity

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PSI: Other provisionsPSI: Other provisions

• Notification of laws and regulations (Article 5)

• Review (Article 6)

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LIC: Background and definitionLIC: Background and definition

• Definition

• Basic obligations

• GATT Article VIII

• GATT Article X

• From the Tokyo Round Code to the Uruguay Round Agreement

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LIC: General principlesLIC: General principles

• Main objectives

• General provisions

• Neutral application, fair and equitable administration

• Publication of rules and procedures

• Simple forms and procedures

• Other principles

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LIC: Automatic import licensingLIC: Automatic import licensing

• Definition

• Conditions

• Main provision for automatic import licensing

• Approval of application within 10 working days

• Use

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LIC: Non-automatic import licensingLIC: Non-automatic import licensing

• Definition

• Main provisions applicable to non-automatic import licensing

• No additional restrictive or distortive effects

• All relevant information to be published

• No discrimination among applicants

• Time limits for processing applications

• Validity of a licence

• Other provisions

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LIC: Other provisionsLIC: Other provisions

• Notifications

• Copies of publications and full text of laws and regulations

• Notification of changes

• Reverse notification

• Annual questionnaire (by 30 September each year)

• Committee on Import Licensing

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Module 3: FAQs (1)Module 3: FAQs (1)

• Why are harmonized rules on Customs Valuation important?

• What is the main basis for assessing the customs value?

• Can customs administration choose freely which of the six valuation

methods to apply?

• Does the Agreement on Customs Valuation apply to all WTO

Members?

• Does the Agreement allow the use of set minimum values?

• When is the use of transaction value acceptable in cases where

buyer and seller are related?

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Module 3: FAQs (2)Module 3: FAQs (2)

• In the fall-back method, where value determination must be based in

particular on "reasonable means consistent with the principles and

general provisions of the Agreement", what methods can be used?

• What can an importer do if he disagrees with a valuation

determination made by the customs administration?

• What are the Committee on Customs Valuation and Technical

Committee on Customs Valuation?

• Can acceding developing countries use the full five-year period?

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Module 3: FAQs (3)Module 3: FAQs (3)

• What are rules of origin?

• Why is it important to know the origin of a product?

• How did GATT 1947 address the issue of origin rules?

• Why did rules of origin become an area for multilateral harmonization?

• Are there also rules on preferential rules of origin in the Agreement?

• What transitory standards do Members have to observe during the period of the harmonization work programme?

• What will happen after the new harmonized rules of origin have been produced?

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Module 3: FAQs (4)Module 3: FAQs (4)

• What is the scope of the PSI Agreement?

• Does the Agreement contain direct obligations for PSI companies?

• How much world trade is subject to government-mandated PSI?

• Under what circumstances can a private party bring a case in front of

the Independent Entity (Article 4)?

• How does a party initiate a case in front of the Independent Entity?

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Module 3: FAQs (5)Module 3: FAQs (5)

• What is the difference between automatic and non-automatic import

licensing?

• What are the specific requirements of automatic licensing

procedures?

• What are the specific requirements for non-automatic licensing

procedures?

• Where does the Agreement contain special treatment provisions for

developing countries?

• Does the Agreement on Import Licensing also include rules on other

customs documentation?