WORLD TRADE

13 December 1996

ORGANIZATION

(96-5438)

SINGAPORE, 13 DECEMBER 1996

the following Members of the World Trade Organization (“WTO”), and States

or separate customs territories in the process of acceding to the WTO, which have agreed in Singapore

on the expansion of world trade in information technology products and which account for well over

80 per cent of world trade in these products ("parties"):

Australia

Norway

Canada

Separate Customs Territory of Taiwan,

European Communities

Penghu, Kinmen and Matsu

Hong Kong

Singapore

Iceland

Switzerland

1

Indonesia

Turkey

Japan

United States

Korea

the key role of trade in information technology products in the development of

information industries and in the dynamic expansion of the world economy,

the goals of raising standards of living and expanding the production of and trade

in goods;

to achieve maximum freedom of world trade in information technology products;

to encourage the continued technological development of the information technology

industry on a world-wide basis;

of the positive contribution information technology makes to global economic growth

and welfare;

1

On behalf of the customs union Switzerland and Liechtenstein.

Page 2

to put into effect the results of these negotiations which involve concessions

additional to those included in the Schedules attached to the Marrakesh Protocol to the General Agreement

on Tariffs and Trade 1994, and

that the results of these negotiations also involve some concessions offered in

negotiations leading to the establishment of Schedules annexed to the Marrakesh Protocol,

as follows:

1.

Each party's trade regime should evolve in a manner that enhances market access opportunities

for information technology products.

2.

Pursuant to the modalities set forth in the Annex to this Declaration, each party shall bind and

eliminate customs duties and other duties and charges of any kind, within the meaning of Article II:1(b)

of the General Agreement on Tariffs and Trade 1994, with respect to the following:

(a)

allproducts classified(or classifiable) with HarmonizedSystem (1996) (“HS”) headings

listed in Attachment A to the Annex to this Declaration; and

(b)

all products specified in Attachment B to the Annex to this Declaration, whether or

not they are included in Attachment A;

through equal rate reductions of customs duties beginning in 1997 and concluding in 2000, recognizing

that extended staging of reductions and, before implementation, expansion of product coverage may

be necessary in limited circumstances.

3.

Ministers express satisfaction about the large product coverage outlined in the Attachments

to the Annex to this Declaration. They instruct their respective officials to make good faith efforts

to finalize plurilateral technical discussions in Geneva on the basis of these modalities, and instruct

these officials to complete this work by 31 January 1997, so as to ensure the implementation of this

Declaration by the largest number of participants.

4.

Ministers invite the Ministers of other Members of the WTO, and States or separate customs

territories in the process of acceding to the WTO, to provide similar instructions to their respective

officials, so that they may participate in the technical discussions referred to in paragraph 3 above and

participate fully in the expansion of world trade in information technology products.

Annex:

Modalities and Product Coverage

Attachment A: list of HS headings

Attachment B: list of products

Page 3

ANNEX

Modalities and Product Coverage

Any Member of the World Trade Organization, or State or separate customs territory in the

process of acceding to the WTO, may participate in the expansion of world trade in information

technology products in accordance with the following modalities:

1.

Each participant shall incorporate the measures described in paragraph 2 of the Declaration

into its schedule to the General Agreement on Tariffs and Trade 1994, and, in addition, at either its

own tariff line level or the Harmonized System (1996) (“HS”) 6-digit level in either its official tariff

or any other published versions of the tariff schedule, whichever is ordinarily used by importers and

exporters. Each participant that is not a Member of the WTO shall implement these measures on an

autonomous basis, pending completion of its WTO accession, and shall incorporate these measures

into its WTO market access schedule for goods.

2.

To this end, as early as possible and no later than 1 March 1997 each participant shall provide

all other participants a document containing (a) the details concerning how the appropriate duty treatment

will be provided in its WTO schedule of concessions, and (b) a list of the detailed HS headings involved

for products specified in Attachment B. These documents will be reviewed and approved on a consensus

basis and this review process shall be completed no later than 1 April 1997. As soon as this review

process has been completed for any such document, that document shall be submitted as a modification

to the Schedule of the participant concerned, in accordance with the Decision of 26 March 1980 on

Procedures for Modification and Rectification of Schedules of Tariff Concessions (BISD 27S/25) .

(a)

The concessions to be proposed by each participant as modifications to its Schedule

shall bind and eliminate all customs duties and other duties and charges of any kind

on information technology products as follows:

(i)

elimination of such customs duties shall take place through rate reductions in

equal steps, except as may be otherwise agreed by the participants. Unless

otherwise agreed by the participants, each participant shall bind all tariffs on

items listed in the Attachments no later than 1 July 1997, and shall make the

first such rate reduction effective no later than 1 July 1997, the second such

rate reduction no later than 1 January 1998, and the third such rate reduction

no later than 1 January 1999, and the elimination of customs duties shall be

completed effective no later than 1 January 2000. The participants agree to

encourage autonomous elimination of customs duties prior to these dates. The

reduced rate should in each stage be rounded off to the first decimal; and

(ii)

elimination of such other duties and charges of any kind, within the meaning

of Article II:1(b) of the General Agreement, shall be completed by 1 July 1997,

except as may be otherwise specified in the participant’s document provided

to other participants for review.

(b)

The modifications to its Schedule to be proposed by a participant in order to implement

its binding and elimination of customs duties on information technology products shall

achieve this result:

(i)

in the case of the HS headings listed in Attachment A, by creating

where

appropriate

sub-divisions in its Schedule at the national tariff line level; and

Page 4

(ii)

in the case of the products specified in Attachment B, by attaching an annex

to its Schedule including all products in Attachment B, which is to specify the

detailed HS headings for those products at either the national tariff line level

or the HS 6-digit level.

Each participant shall promptly modify its national tariff schedule to reflect the modifications

it has proposed, as soon as they have entered into effect.

3.

Participants shall meet periodically under the auspices of the Council on Trade in Goods to

review the product coverage specified in the Attachments, with a view to agreeing, by consensus, whether

in the light of technological developments, experience in applying the tariff concessions, or changes

to the HS nomenclature, the Attachments should be modified to incorporate additional products, and

to consult on non-tariff barriers to trade in information technology products. Such consultations shall

be without prejudice to rights and obligations under the WTO Agreement.

4.

Participants shall meet as soon as practicable and in any case no later than 1 April 1997 to

review the state of acceptances received and to assess the conclusions to be drawn therefrom.

Participants will implement the actions foreseen in the Declaration provided that participants representing

approximately 90 per cent of world trade

2

in information technology products have by then notified

their acceptance, and provided that the staging has been agreed to the participants’ satisfaction. In

assessing whether to implement actions foreseen in the Declaration, if the percentage of world trade

represented by participants falls somewhat short of 90 per cent of world trade in information technology

products, participants may take into account the extent of the participation of States or separate customs

territories representing for them the substantial bulk of their own trade in such products. At this meeting

the participants will establish whether these criteria have been met.

5.

Participants shall meet as often as necessary and no later than 30 September 1997 to consider

any divergence among them in classifying information technology products, beginning with the products

specified in Attachment B. Participants agree on the common objective of achieving, where appropriate,

a common classification for these products within existing HS nomenclature, giving consideration to

interpretations and rulings of the Customs Co-operation Council (also known as the World Customs

Organization or “WCO”) . In any instance in which a divergence in classification remains, participants

will consider whether a joint suggestion could be made to the WCO with regard to updating existing

HS nomenclature or resolving divergence in interpretation of the HS nomenclature.

6.

The participants understand that Article XXIII of the General Agreement will address nullification

or impairment of benefits accruing directly or indirectly to a WTO Member participant through the

implementation of this Declaration as a result of the application by another WTO Member participant

of any measure, whether or not that measure conflicts with the provisions of the General Agreement.

7.

Each participant shall afford sympathetic consideration to any request for consultation from

any other participant concerning the undertakings set out above. Such consultations shall be without

prejudice to rights and obligations under the WTO Agreement.

8.

Participants acting under the auspices of the Council for Trade in Goods shall inform other

Members of the WTO and States or separate customs territories in the process of acceding to the WTO

of these modalities and initiate consultations with a view to facilitate their participation in the expansion

of trade in information technology products on the basis of the Declaration.

2

This percentage shall be calculated by the WTO Secretariat on the basis of the most recent data available

at the time of the meeting.

Page 5

9.

As used in these modalities, the term "participant" shall mean those Members of the WTO,

or States or separate customs territories in the process of acceding to the WTO, that provide the document

described in paragraph 2 no later than 1 March 1997.

10.

This Annex shall be open for acceptance by all Members of the WTO and any State or any

separate customs territory in the process of acceding to the WTO. Acceptances shall be notified in

writing to the Director-General who shall communicate them to all participants.

Page 6

There are two attachments to the Annex.

Attachment A lists the HS headings or parts thereof to be covered.

Attachment B lists specific products to be covered by an ITA wherever they are classified in the

HS .

Attachment A, Section 1

HS96

HS description

8470

10

Electronic calculators capable of operating without an external source of electric power and

pocket size data recording, reproducing and displaying machines with calculating functions

8470

21

Other electronic calculating machines incorporating a printing device

8470

29

Other

8470

30

Other calculating machines

8470

40

Accounting machines

8470

50

Cash registers

8470

90

Other

8471

10

Analogue or hybrid automatic data processing machines

8471

30

Portable digital automatic data processing machines, weighing no more than 10 kg,

consisting of at least a central processing unit, a keyboard and a display

8471

41

Other digital automatic data processing machines comprising in the same housing at least a

central processing unit and an input and output unit, whether or not combined

8471

49

Other digital automatic data processing machines presented in the form of systems

8471

50

Digital processing units other than those of subheading 8471 41 and 8471 49, whether or

not in the same housing one or two of the following types of units : storage units, input

units, output units

8471

60

Input or output units, whether or not containing storage units in the same housing

8471

70

Storage units, including central storage units, optical disk storage units, hard disk drives and

magnetic tape storage units

8471

80

Other units of automatic data processing machines

8471

90

Other

Page 7

8517

11

Line telephone sets with cordless handsets

8517

19

Other telephone sets and videophones

8517

21

Facsimile machines

8517

22

Teleprinters

8517

30

Telephonic or telegraphic switching apparatus

8517

50

Other apparatus, for carrier-current line systems or for digital line systems

8517

80

Other apparatus including entry-phone systems

8517

90

Parts of apparatus of heading 8517

Page 8

8532

10

Fixed capacitors designed for use in 50/60 Hz circuits and having a reactive power handling

capacity of not less than 0,5 kvar (power capacitors)

8532

21

Tantalum fixed capacitors

8532

22

Aluminium electrolytic fixed capacitors

8532

23

Ceramic dielectric, single layer fixed capacitors

8532

24

Ceramic dielectric, multilayer fixed capacitors

8532

25

Dielectric fixed capacitors of paper or plastics

8532

29

Other fixed capacitors

8532

30

Variable or adjustable (pre-set) capacitors

8532

90

Parts

8533

10

Fixed carbon resistors, composition or film types

8533

21

Other fixed resistors for a power handling capacity not exceeding 20 W

8533

29

Other fixed resistors for a power handling capacity of 20 W or more

8533

31

Wirewound variable resistors, including rheostats and potentiometers, for a power handling

capacity not exceeding 20 W

8533

39

Wirewound variable resistors, including rheostats and potentiometers, for a power handling

capacity of 20 W or more

8533

40

Other variable resistors, including rheostats and potentiometers

8533

90

Parts

8541

10

Diodes, other than photosensitive or light-emitting diodes

8541

21

Transistors, other than photosensitive transistors, with a dissipation rate of less than 1 W

8541

29

Transistors, other than photosensitive transistors, with a dissipation rate of 1 W or more

Page 9

8541

30

Thyristors, diacs and triacs, other than photosensitive devices

8541

40

Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled

in modules or made up into panels; light emitting diodes

8541

50

Other semiconductor devices

8541

60

Mounted piezo-electric crystals

8541

90

Parts

8542

12

Cards incorporating an electronic integrated circuit ('smart' cards)

8542

13

Metal oxide semiconductors (MOS technology)

8542

14

Circuits obtained by bipolar technology

8542

19

Other monolithic digital integrated circuits, including circuits obtained by a combination of

bipolar and MOS technologies (BIMOS technology)

8542

30

Other monolithic integrated circuits

8542

40

Hybrid integrated circuits

8542

50

Electronic microassemblies

8542

90

Part

9026

10

Instruments for measuring or checking the flow or level of liquids

9026

20

Instruments and apparatus for measuring or checking pressure

9026

80

Other instruments and apparatus for measuring or checking of heading 9026

9026

90

Parts and accessories of instruments and apparatus of heading 9026

Page 10

Page 11

Attachment A, Section 2

Semiconductor manufacturing and testing equipment and parts thereof

HS Code

Description

Comments

ex

7017 10

Quartz reactor tubes and holders designed for insertion into diffusion and

oxidation furnaces for production of semiconductor wafers

For Attachment B

ex

8419 89

Chemical vapor deposition apparatus for semiconductor production

For Attachment B

ex

8419 90

Parts of chemical vapor deposition apparatus for semiconductor

production

For Attachment B

ex

8421 19

Spin dryers for semiconductor wafer processing

ex

8421 91

Parts of spin dryers for semiconductor wafer processing

ex

8424 89

Deflash machines for cleaning and removing contaminants from the

metal leads of semiconductor packages prior to the electroplating process

ex

8424 89

Spraying appliances for etching, stripping or cleaning semiconductor

wafers

ex

8424 90

Parts of spraying appliances for etching, stripping or cleaning

semiconductor wafers

ex

8456 10

Machines for working any material by removal of material, by laser or

other light or photo beam in the production of semiconductor wafers

ex

8456 91

Apparatus for stripping or cleaning semiconductor wafers

For Attachment B

8456 91

Machines for dry-etching patterns on semiconductor materials

ex

8456 99

Focused ion beam milling machines to produce or repair masks and

reticles for patterns on semiconductor devices

ex

8456 99

Lasercutters for cutting contacting tracks in semiconductor production by

laser beam

For Attachment B

ex

8464 10

Machines for sawing monocrystal semiconductor boules into slices, or

wafers into chips

For Attachment B

ex

8464 20

Grinding, polishing and lapping machines for processing of semiconductor

wafers

ex

8464 90

Dicing machines for scribing or scoring semiconductor wafers

ex

8466 91

Parts for machines for sawing monocrystal semiconductor boules into

slices, or wafers into chips

For Attachment B

ex

8466 91

Parts of dicing machines for scribing or scoring semiconductor wafers

For Attachment B

ex

8466 91

Parts of grinding, polishing and lapping machines for processing of

semiconductor wafers

ex

8466 93

Parts of focused ion beam milling machines to produce or repair masks

and reticles for patterns on semiconductor devices

ex

8466 93

Parts of lasercutters for cutting contacting tracks in semiconductor

production by laser beam

For Attachment B

ex

8466 93

Parts of machines for working any material by removal of material, by

laser or other light or photo beam in the production of semiconductor

wafers

ex

8456 93

Parts of apparatus for stripping or cleaning semiconductor wafers

For Attachment B

ex

8466 93

Parts of machines for dry-etching patterns on semiconductor materials

ex

8477 10

Encapsulation equipment for assembly of semiconductors

For Attachment B

ex

8477 90

Parts of encapsulation equipment

For Attachment B

Page 12

ex

8479 50

Automated machines for transport, handling and storage of semiconductor

wafers, wafer cassettes, wafer boxes and other material for semiconductor

devices

For Attachment B

ex

8479 89

Apparatus for growing or pulling monocrystal semiconductor boules

ex

8479 89

Apparatus for physical deposition by sputtering on semiconductor wafers

For Attachment B

ex

8479 89

Apparatus for wet etching, developing, stripping or cleaning

semiconductor wafers and flat panel displays

For Attachment B

ex

8479 89

Die attach apparatus, tape automated bonders, and wire bonders for

assembly of semiconductors

For Attachment B

ex

8479 89

Encapsulation equipment for assembly of semiconductors

For Attachment B

ex

8479 89

Epitaxial deposition machines for semiconductor wafers

ex

8479 89

Machines for bending, folding and straightening semiconductor leads

For Attachment B

ex

8479 89

Physical deposition apparatus for for semiconductor production

For Attachment B

ex

8479 89

Spinners for coating photographic emulsions on semiconductor wafers

For Attachment B

ex

8479 90

Part of apparatus for physical deposition by sputtering on semiconductor

wafers

For Attachment B

ex

8479 90

Parts for die attach apparatus, tape automated bonders, and wire bonders

for assembly of semiconductors

For Attachment B

ex

8479 90

Parts for spinners for coating photographic emulsions on semiconductor

wafers

For Attachment B

ex

8479 90

Parts of apparatus for growing or pulling monocrystal semiconductor

boules

ex

8479 90

Parts of apparatus for wet etching, developing, stripping or cleaning

semiconductor wafers and flat panel displays

For Attachment B

ex

8479 90

Parts of automated machines for transport, handling and storage of

semiconductor wafers, wafer cassettes, wafer boxes and other material for

semiconductor devices

For Attachment B

ex

8479 90

Parts of encapsulation equipment for assembly of semiconductors

For Attachment B

ex

8479 90

Parts of epitaxial deposition machines for semiconductor wafers

ex

8479 90

Parts of machines for bending, folding and straightening semiconductor

leads

For Attachment B

ex

8479 90

Parts of physical deposition apparatus for for semiconductor production

For Attachment B

ex

8480 71

Injection and compression moulds for the manufacture of semiconductor

devices

ex

8514 10

Resistance heated furnaces and ovens for the manufacture of

semiconductor devices on semiconductor wafers

ex

8514 20

Inductance or dielectric furnaces and ovens for the manufacture of

semiconductor devices on semiconductors wafers

ex

8514 30

Apparatus for rapid heating of semiconductor wafers

For Attachment B

ex

8514 30

Parts of resistance heated furnaces and ovens for the manufacture of

semiconductor devices on semiconductor wafers

ex

8514 90

Parts of apparatus for rapid heating of wafers

For Attachment B

ex

8514 90

Parts of furnaces and ovens of Headings No 8514 10 to No 8514 30

ex

8536 90

Wafer probers

For Attachment B

8543 11

Ion implanters for doping semiconductor materials

ex

8543 30

Apparatus for wet etching, developing, stripping or cleaning

semiconductor wafers and flat panel displays

For Attachment B

Page 13

ex

8543 90

Parts of apparatus for wet etching, developing, stripping or cleaning

semiconductor wafers and flat panel displays

For Attachment B

ex

8543 90

Parts of ion implanters for doping semiconductor materials

9010 41 to

9010 49

Apparatus for projection, drawing or plating circuit patterns on sensitized

semiconductor materials and flat panel displays

ex

9010 90

Parts and accessories of the apparatus of Headings No 9010 41 to 9010 49

ex

9011 10

Optical stereoscopic microscopes fitted with equipment specifically

designed for the handling and transport of semiconductor wafers or

reticles

For Attachment B

ex

9011 20

Photomicrographic microscopes fitted with equipment specifically

designed for the handling and transport of semiconductor wafers or

reticles

For Attachment B

ex

9011 90

Parts and accessories of optical stereoscopic microscopes fitted with

equipment specifically designed for the handling and transport of

semiconductor wafers or reticles

For Attachment B

ex

9011 90

Parts and accessories of photomicrographic microscopes fitted with

equipment specifically designed for the handling and transport of

semiconductor wafers or reticles

For Attachment B

ex

9012 10

Electron beam microscopes fitted with equipment specifically designed for

the handling and transport of semiconductor wafers or reticles

For Attachment B

ex

9012 90

Parts and accessories of electron beam microscopes fitted with equipment

specifically designed for the handling and transport of semiconductor

wafers or reticles

For Attachment B

ex

9017 20

Pattern generating apparatus of a kind used for producing masks or

reticles from photoresist coated substrates

For Attachment B

ex

9017 90

Parts and accessories for pattern generating apparatus of a kind used for

producing masks or reticles from photoresist coated substrates

For Attachment B

ex

9017 90

Parts of such pattern generating apparatus

For Attachment B

9030 82

Instruments and apparatus for measuring or checking semiconductor

wafers or devices

ex

9030 90

Parts and accessories of instruments and apparatus for measuring or

checking semiconductor wafers or devices

ex

9030 90

Parts of instruments and appliances for measuring or checking

semiconductor wafers or devices

9031 41

Optical instruments and appliances for inspecting semiconductor wafers

or devices or for inspecting masks, photomasks or reticles used in

manufacturing semiconductor devices

ex

9031 49

Optical instruments and appliances for measuring surface particulate

contamination on semiconductor wafers

ex

9031 90

Parts and accessories of optical instruments and appliances for inspecting

semiconductor wafers or devices or for inspecting masks, photomasks or

reticles used in manufacturing semiconductor devices

ex

9031 90

Parts and accessories of optical instruments and appliances for measuring

surface particulate contamination on semiconductor wafers

Page 14

Attachment B

Positive list of specific products to be covered by this agreement wherever they are

classified in the HS.

Where parts are specified, they are to be covered in accordance with HS Notes 2(b) to

Section XVI and Chapter 90, respectively.

automatic data processing machines capable of 1) storing the processing program or programs and at

least the data immediately necessary for the execution of the program; 2) being freely programmed in accordance

with the requirements of the user; 3) performing arithmetical computations specified by the user; and 4) executing,

without human intervention, a processing program which requires them to modify their execution, by logical

decision during the processing run.

The agreement covers such automatic data processing machines whether or not they are able to receive and process

with the assistance of central processing unit telephony signals, television signals, or other analogue or digitally

processed audio or video signals. Machines performing a specific function other than data processing, or

incorporating or working in conjunction with an automatic data processing machine, and not otherwise specified

under Attachment A or B, are not covered by this agreement.

when used as repeaters in line telephony products falling within this agreement, and parts

thereof

(including LCD, Electro Luminescence, Plasma and other technologies) for products falling

within this agreement, and parts thereof.

Local Area Network (LAN) and Wide Area Network (WAN) apparatus, including those

products dedicated for use solely or principally to permit the interconnection of automatic data processing machines

and units thereof for a network that is used primarily for the sharing of resources such as central processor units,

data storage devices and input or output units - including adapters, hubs, in-line repeaters, converters, concentrators,

bridges and routers, and printed circuit assemblies for physical incorporation into automatic data processing

machines and units thereof.

display units of automatic data processing machines with a cathode ray tube with a dot screen pitch

smaller than 0,4 mm not capable of receiving and processing television signals or other analogue or digitally

processed audio or video signals without assistance of a central processing unit of a computer as defined in this

agreement.

The agreement does not, therefore, cover televisions, including high definition televisions.

3

for automatic data processing machines (including CD drives and DVD-drives), whether

or not having the capability of writing/recording as well as reading, whether or not in their own housings.

, and parts thereof .

whether input or output units of HS heading No 8471 or drawing or drafting machines of HS heading No

9017.

for products falling within this agreement, including such assemblies for external

connections such as cards that conform to the PCMCIA standard.

Such printed circuit assemblies consist of one or more printed circuits of heading 8534 with one or more active

elements assembled thereon, with or without passive elements "Active elements" means diodes, transistors, and

similar semiconductor devices, whether or not photosensitive, of heading 8541, and integrated circuits and micro

assemblies of heading 8542.

used with automatic data processing machines which can display digital

information generated by the central processing unit.

3

Participants will conduct a review of this product description in January 1999 under the consultation

provisions of paragraph 3 of the Declaration

Page 15

including media therefor for automatic data processing machines, with or

without removable media and whether magnetic, optical or other technology, including Bernoulli Box, Syquest, or

Zipdrive cartridge storage units.

for automatic data processing machines, and units thereof, put up for retail sale,

consisting of, at least, speakers and/or microphones as well as a printed circuit assembly that enables the ADP

machines and units thereof to process audio signals (sound cards) .

: a microprocessor-based device incorporating a modem for

gaining access to the Internet, and having a function of interactive information exchange