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European Communities--Customs Classification of Certain Computer Equipment
Joel P. Trachtman
WTO Appellate Body Report:
European Communities--Customs Classification of Certain Computer
Equipment,
AB-1998-2, WT/DS62, 67, 68/AB/R (98-2271),
adopted by Dispute Settlement Body, [not yet adopted as of 30 June
1998].
European Communities, Appellant; United States, Appellee; Japan, Third
Participant.
Division: Beeby, Ehlermann and Lacarte-Muró.
Major Topics Addressed by Appellate Body: Specificity of Notice under
Article 6.2 of the DSU; Interpretation of Tariff Schedules.
1. Abstract
This decision concerns the tariff treatment of local area network
("LAN") equipment and personal computers with multimedia capability ("PCs with
multimedia capability"). At the core of this dispute was the question of
whether LAN equipment fell under heading 84.71 of the European Communities
("EC") tariff schedule, relating to automatic data processing machines and
units thereof ("ADP machines"), or whether, as the EC argued, this equipment
was properly included under heading 85.17, relating to telecommunications
equipment. Customs duties are generally higher on the latter. Indeed, this case
explores the intersection between computation and communication.
The Panel allocated the burden of clarification of these tariff
categories to the importing state--the EC--and considered the exporting state's
unilateral "legitimate expectations" as a guide to interpretation. The
Appellate Body rejected these decisions, determining that all parties share
responsibility for clarification of WTO treaty rules, and that the Vienna
Convention does not support a reference to only one side's "legitimate
expectations." However, the Appellate Body decision is troubling for several
reasons, not the least of which is that the Appellate Body, having rejected the
Panel's analysis, did not seem to engage in a complete interpretative analysis
of its own.
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This file was last modified:
Tuesday, October 14, 2003 12:50PM