World trade organization

• Pages: 102-103

On August 16, 2010, a Dispute Settlement Panel of the World Trade Organization (WTO) circulated its report in U.S.-EU Dispute over tariffs on certain high-tech products. The products at issue include flat panel computer monitors, multifunction printers, and certain cable and satellite set-top boxes.

The dispute came before the WTO in May 2008 when the U.S., as well as various third parties such as Brazil and China (jointly U.S.), asked for consultations with the European Communities and its member States (jointly EU) about their tariff treatment of specified information technology products. The U.S. claimed that the EU has been collecting duties as high as 14% while there should be zero duties on such products.

The U.S. argued that EU tariffs for such technology products disregard the commitments to provide duty-free treatment under the Information Technology Agreement (ITA). The EU allegedly imposes duties that are contrary to the scheduled duty-free tariff concessions of the ITA.

In particular, several EU customs classifications, alone or in combination with Council Regulation (EEC) No. 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff, are allegedly inconsistent with the EU obligations under Article II:1(a) and II:1(b) of the GATT 1994 and the applicable Schedules. As a result, these customs classifications nullify or impair benefits accruing to the U.S.

In September 2008, the WTO Dispute Settlement Body set up a Panel to resolve the dispute. The Panel’s report of August 2010 finds that:

[1] As for FPDs (Flat-Panel Display Devices) within the scope of the CN code 8471 60 90: Because the concessions call for duty-free treatment of products falling within their scope, this dutiable treatment is inconsistent with Article II:1(b) of the GATT 1994. The Panel notes, however, that the duties are currently suspended for some of these FPDs. For FPDs not subject to the duty suspension, the dutiable treatment is inconsistent with Article II:1(b) of the GATT 1994. The European Communities fails to accord treatment that is no less favorable.

[2] As for STBCs (set-top boxes which have a communication function), the rules require dutyfree treatment of such...