This Appendix contains the complete text of the General Agreement together
with all the amendments which became effective since its entry into force. For
the convenience of the reader, asterisks mark the portions of the text which
should be read in conjunction with notes and supplementary provisions in Annex
I of the Agreement.
The Governments of the Commonwealth of Australia, the Kingdom of Belgium, the
United States of Brazil, Burma, Canada, Ceylon, the Republic of Chile, the Republic
of China, the Republic of Cuba, the Czechoslovak Republic, the French Republic,
India, Lebanon, the Grand-Duchy of Luxemburg, the Kingdom of the Netherlands,
New Zealand, the Kingdom of Norway, Pakistan, Southern Rhodesia, Syria, the
Union of South Africa, the United Kingdom of Great Britain and Northern Ireland,
and the United States of America:
Recognizing that their relations in the field of trade and economic endeavour
should be conducted with a view to raising standards of living, ensuring full
employment and a large and steadily growing volume of real income and effective
demand, developing the full use of the resources of the world and expanding
the production and exchange of goods,
Being desirous of contributing to these objectives by entering into reciprocal
and mutually advantageous arrangements directed to the substantial reduction
of tariffs and other barriers to trade and to the elimination of discriminatory
treatment in international commerce,
1. With respect to customs duties and charges of any kind imposed on or in
connection with importation or exportation or imposed on the international transfer
of payments for imports or exports, and with respect to the method of levying
such duties and charges, and with respect to all rules and formalities in connection
with importation and exportation, and with respect to all matters referred to
in paragraphs 2 and 4 of Article III,* any advantage, favour, privilege or immunity
granted by any contracting party to any product originating in or destined for
any other country shall be accorded immediately and unconditionally to the like
product originating in or destined for the territories of all other contracting
parties.
2. The provisions of paragraph 1 of this Article shall not require the elimination
of any preferences in respect of import duties or charges which do not exceed
the levels provided for in paragraph 4 of this Article and which fall within
the following descriptions:
(a) Preferences in force exclusively between two or more of the territories listed in Annex A, subject to the conditions set forth therein;
(b) Preferences in force exclusively between two or more territories which on July 1, 1939, were connected by common sovereignty or relations of protection or suzerainty and which are listed in Annexes B, C and D, subject to the conditions set forth therein;
(c) Preferences in force exclusively between the United States of America and the Republic of Cuba;
(d) Preferences in force exclusively between neighbouring countries listed in Annexes E and F.
3. The provisions of paragraph 1 shall not apply to preferences between the
countries formerly a part of the Ottoman Empire and detached from it on July
24, l923, provided such preferences are approved under paragraph 5 1 of Article
XXV, which shall be applied in this respect in the light of paragraph 1 of Article
XXIX.
4. The margin of preference* on any product in respect of which a preference is permitted under paragraph 2 of this Article but is not specifically set forth as a maximum margin of preference in the appropriate Schedule annexed to this Agreement shall not exceed:
(a) in respect of duties or charges on any product described in such Schedule, the difference between the most-favoured-nation and preferential rates provided for therein; if no preferential rate is provided for, the preferential rate shall for the purposes of this paragraph be taken to be that in force on April 10, l947, and, if no most-favoured-nation rate is provided for, the margin shall not exceed the difference between the most-favoured-nation and preferential rates existing on April 10, 1947;
(b) in respect of duties or charges on any product not described in the appropriate Schedule, the difference between the most-favoured-nation and preferential rates existing on April 10, 1947.
In the case of the contracting parties named in Annex G, the date of April
10, 1947, referred to in subparagraph (a) and (b) of this paragraph shall be
replaced by the respective dates set forth in that Annex.
1.
(a) Each contracting party shall accord to the commerce of the other contracting parties treatment no less favourable than that provided for in the appropriate Part of the appropriate Schedule annexed to this Agreement.
(b) The products described in Part I of the Schedule relating to any contracting party, which are the products of territories of other contracting parties, shall, on their importation into the territory to which the Schedule relates, and subject to the terms, conditions or qualifications set forth in that Schedule, be exempt from ordinary customs duties in excess of those set forth and provided therein. Such products shall also be exempt from all other duties or charges of any kind imposed on or in connection with the importation in excess of those imposed on the date of this Agreement or those directly and mandatorily required to be imposed thereafter by legislation in force in the importing territory on that date.
(c) The products described in Part II of the Schedule relating to any contracting party which are the products of territories entitled under Article I to receive preferential treatment upon importation into the territory to which the Schedule relates shall, on their importation into such territory, and subject to the terms, conditions or qualifications set forth in that Schedule, be exempt from ordinary customs duties in excess of those set forth and provided for in Part II of that Schedule. Such products shall also be exempt from all other duties or charges of any kind imposed on or in connection with importation in excess of those imposed on the date of this Agreement or those directly or mandatorily required to be imposed thereafter by legislation in force in the importing territory on that date. Nothing in this Article shall prevent any contracting party from maintaining its requirements existing on the date of this Agreement as to the eligibility of goods for entry at preferential rates of duty.
2. Nothing in this Article shall prevent any contracting party from imposing
at any time on the importation of any product:
(a) a charge equivalent to an internal tax imposed consistently with the provisions of paragraph 2 of Article III* in respect of the like domestic product or in respect of an article from which the imported product has been manufactured or produced in whole or in part;
(b) any anti-dumping or countervailing duty applied consistently with the provisions of Article VI;*
(c) fees or other charges commensurate with the cost of services rendered.
3. No contracting party shall alter its method of determining dutiable value
or of converting currencies so as to impair the value of any of the concessions
provided for in the appropriate Schedule annexed to this Agreement.
4. If any contracting party establishes, maintains or authorizes, formally or in effect, a monopoly of the importation of any product described in the appropriate Schedule annexed to this Agreement, such monopoly shall not, except as provided for in that Schedule or as otherwise agreed between the parties which initially negotiated the concession, operate so as to afford
protection on the average in excess of the amount of protection provided for
in that Schedule. The provisions of this paragraph shall not limit the use by
contracting parties of any form of assistance to domestic producers permitted
by other provisions of this Agreement.*
5. If any contracting party considers that a product is not receiving from
another contracting party the treatment which the first contracting party believes
to have been contemplated by a concession provided for in the appropriate Schedule
annexed to this Agreement, it shall bring the matter directly to the attention
of the other contracting party. If the latter agrees that the treatment contemplated
was that claimed by the first contracting party, but declares that such treatment
cannot be accorded because a court or other proper authority has ruled to the
effect that the product involved cannot be classified under the tariff laws
of such contracting party so as to permit the treatment contemplated in this
Agreement, the two contracting parties, together with any other contracting
parties substantially interested, shall enter promptly into further negotiations
with a view to a compensatory adjustment of the matter.
6.
(a) The specific duties and charges included in the Schedules relating to contracting parties members of the International Monetary Fund, and margins of preference in specific duties and charges maintained by such contracting parties, are expressed in the appropriate currency at the par value accepted or provisionally recognized by the Fund at the date of this Agreement. Accordingly, in case this par value is reduced consistently with the Articles of Agreement of the International Monetary Fund by more than twenty per centum, such specific duties and charges and margins of preference may be adjusted to take account of such reduction; provided that the CONTRACTING PARTIES (i.e., the contracting parties acting jointly as provided for in Article XXV) concur that such adjustments will not impair the value of the concessions provided for in the appropriate Schedule or elsewhere in this Agreement, due account being taken of all factors which may influence the need for, or urgency of, such adjustments.
(b) Similar provisions shall apply to any contracting party not a member of the Fund, as from the date on which such contracting party becomes a member of the Fund or enters into a special exchange agreement in pursuance of Article XV.
7. The Schedules annexed to this Agreement are hereby made an integral part
of Part I of this Agreement.
1. The contracting parties recognize that internal taxes and other internal
charges, and laws, regulations and requirements affecting the internal sale,
offering for sale, purchase, transportation, distribution or use of products,
and internal quantitative regulations requiring the mixture, processing or use
of products in specified amounts or proportions, should not be applied to imported
or domestic products so as to afford protection to domestic production.*
2. The products of the territory of any contracting party imported into the
territory of any other contracting party shall not be subject, directly or indirectly,
to internal taxes or other internal charges of any kind in excess of those applied,
directly or indirectly, to like domestic products. Moreover, no contracting
party shall otherwise apply internal taxes or other internal charges to imported
or domestic products in a manner contrary to the principles set forth in paragraph
1.*
3. With respect to any existing internal tax which is inconsistent with the
provisions of paragraph 2, but which is specifically authorized under a trade
agreement, in force on April 10, l947, in which the import duty on the taxed
product is bound against increase, the contracting party imposing the tax shall
be free to postpone the application of the provisions of paragraph 2 to such
tax until such time as it can obtain release from the obligations of such trade
agreement in order to permit the increase of such duty to the extent necessary
to compensate for the elimination of the protective element of the tax.
4. The products of the territory of any contracting party imported into the
territory of any other contracting party shall be accorded treatment no less
favourable than that accorded to like products of national origin in respect
of all laws, regulations and requirements affecting their internal sale, offering
for sale, purchase, transportation, distribution or use. The provisions of this
paragraph shall not prevent the application of differential internal transportation
charges which are based exclusively on the economic operation of the means of
transport and not on the nationality of the product.
5. No contracting party shall establish or maintain any internal quantitative
regulation relating to the mixture, processing or use of products in specified
amounts or proportions which requires, directly or indirectly, that any specified
amount or proportion of any product which is the subject of the regulation must
be supplied from domestic sources. Moreover, no contracting party shall otherwise
apply internal quantitative regulations in a manner contrary to the principles
set forth in paragraph 1.*
6. The provisions of paragraph 5 shall not apply to any internal quantitative
regulation in force in the territory of any contracting party on July 1, 1939,
April 10, 1947, or March 24, l948, at the option of that contracting party;
Provided that any such regulation which is contrary to the provisions of paragraph
5 shall not be modified to the detriment of imports and shall be treated as
a customs duty for the purpose of negotiation.
7. No internal quantitative regulation relating to the mixture, processing
or use of products in specified amounts or proportions shall be applied in such
a manner as to allocate any such amount or proportion among external sources
of supply.
8.
(a) The provisions of this Article shall not apply to laws, regulations or requirements governing the procurement by governmental agencies of products purchased for governmental purposes and not with a view to commercial resale or with a view to use in the production of goods for commercial sale.
(b) The provisions of this Article shall not prevent the payment of subsidies exclusively to domestic producers, including payments to domestic producers derived from the proceeds of internal taxes or charges applied consistently with the provisions of this Article and subsidies effected through governmental purchases of domestic products.
9. The contracting parties recognize that internal maximum price control measures,
even though conforming to the other provisions of this Article, can have effects
prejudicial to the interests of contracting parties supplying imported products.
Accordingly, contracting parties applying such measures shall take account of
the interests of exporting contracting parties with a view to avoiding to the
fullest practicable extent such prejudicial effects.
10. The provisions of this Article shall not prevent any contracting party
from establishing or maintaining internal quantitative regulations relating
to exposed cinematograph films and meeting the requirements of Article IV.
If any contracting party establishes or maintains internal quantitative regulations
relating to exposed cinematograph films, such regulations shall take the form
of screen quotas which shall conform to the following requirements:
(a) Screen quotas may require the exhibition of cinematograph films of national origin during a specified minimum proportion of the total screen time actually utilized, over a specified period of not less than one year, in the commercial exhibition of all films of whatever origin, and shall be computed on the basis of screen time per theatre per year or the equivalent thereof;
(b) With the exception of screen time reserved for films of national origin under a screen quota, screen time including that released by administrative action from screen time reserved for films of national origin, shall not be allocated formally or in effect among sources of supply;
(c) Notwithstanding the provisions of subparagraph (b) of this Article, any contracting party may maintain screen quotas conforming to the requirements of subparagraph (a) of this Article which reserve a minimum proportion of screen time for films of a specified origin other than that of the contracting party imposing such screen quotas; Provided that no such minimum proportion of screen time shall be increased above the level in effect on April 10, 1947; (d) Screen quotas shall be subject to negotiation for their limitation, liberalization or elimination.
1. Goods (including baggage), and also vessels and other means of transport,
shall be deemed to be in transit across the territory of a contracting party
when the passage across such territory, with or without trans-shipment, warehousing,
breaking bulk, or change in the mode of transport, is only a portion of a complete
journey beginning and terminating beyond the frontier of the contracting party
across whose territory the traffic passes. Traffic of this nature is termed
in this article "traffic in transit".
2. There shall be freedom of transit through the territory of each contracting
party, via the routes most convenient for international transit, for traffic
in transit to or from the territory of other contracting parties. No distinction
shall be made which is based on the flag of vessels, the place of origin, departure,
entry, exit or destination, or on any circumstances relating to the ownership
of goods, of vessels or of other means of transport.
3. Any contracting party may require that traffic in transit through its territory
be entered at the proper custom house, but, except in cases of failure to comply
with applicable customs laws and regulations, such traffic coming from or going
to the territory of other contracting parties shall not be subject to any unnecessary
delays or restrictions and shall be exempt from customs duties and from all
transit duties or other charges imposed in respect of transit, except charges
for transportation or those commensurate with administrative expenses entailed
by transit or with the cost of services rendered.
4. All charges and regulations imposed by contracting parties on traffic in
transit to or from the territories of other contracting parties shall be reasonable,
having regard to the conditions of the traffic.
5. With respect to all charges, regulations and formalities in connection with
transit, each contracting party shall accord to traffic in transit to or from
the territory of any other contracting party treatment no less favourable than
the treatment accorded to traffic in transit to or from any third country.*
6. Each contracting party shall accord to products which have been in transit
through the territory of any other contracting party treatment no less favourable
than that which would have been accorded to such products had they been transported
from their place of origin to their destination without going through the territory
of such other contracting party. Any contracting party shall, however, be free
to maintain its requirements of direct consignment existing on the date of this
Agreement, in respect of any goods in regard to which such direct consignment
is a requisite condition of eligibility for entry of the goods at preferential
rates of duty or has relation to the contracting party's prescribed method of
valuation for duty purposes.
7. The provisions of this Article shall not apply to the operation of aircraft
in transit, but shall apply to air transit of goods (including baggage).
1. The contracting parties recognize that dumping, by which products of one
country are introduced into the commerce of another country at less than the
normal value of the products, is to be condemned if it causes or threatens material
injury to an established industry in the territory of a contracting party or
materially retards the establishment of a domestic industry. For the purposes
of this Article, a product is to be considered as being introduced into the
commerce of an importing country at less than its normal value, if the price
of the product exported from one country to another
(a) is less than the comparable price, in the ordinary course of trade, for the like product when destined for consumption in the exporting country, or,
(b) in the absence of such domestic price, is less than either
(i) the highest comparable price for the like product for export to any third country in the ordinary course of trade, or
(ii) the cost of production of the product in the country of origin plus a reasonable addition for selling cost and profit.
Due allowance shall be made in each case for differences in conditions and
terms of sale, for differences in taxation, and for other differences affecting
price comparability.*
2. In order to offset or prevent dumping, a contracting party may levy on any
dumped product an anti-dumping duty not greater in amount than the margin of
dumping in respect of such product. For the purposes of this Article, the margin
of dumping is the price difference determined in accordance with the provisions
of paragraph 1.*
3. No countervailing duty shall be levied on any product of the territory of
any contracting party imported into the territory of another contracting party
in excess of an amount equal to the estimated bounty or subsidy determined to
have been granted, directly or indirectly, on the manufacture, production or
export of such product in the country of origin or exportation, including any
special subsidy to the transportation of a particular product. The term "countervailing
duty" shall be understood to mean a special duty levied for the purpose of offsetting
any bounty or subsidy bestowed, directly, or indirectly, upon the manufacture,
production or export of any merchandise.*
4. No product of the territory of any contracting party imported into the territory
of any other contracting party shall be subject to anti-dumping or countervailing
duty by reason of the exemption of such product from duties or taxes borne by
the like product when destined for consumption in the country of origin or exportation,
or by reason of the refund of such duties or taxes.
5. No product of the territory of any contracting party imported into the territory of any other contracting party shall be subject to both anti-dumping and countervailing duties to compensate for the same situation of dumping or export subsidization.
6.
(a) No contracting party shall levy any anti-dumping or countervailing duty on the importation of any product of the territory of another contracting party unless it determines that the effect of the dumping or subsidization, as the case may be, is such as to cause or threaten material injury to an established domestic industry, or is such as to retard materially the establishment of a domestic industry.
(b) The CONTRACTING PARTIES may waive the requirement of subparagraph (a) of this paragraph so as to permit a contracting party to levy an anti-dumping or countervailing duty on the importation of any product for the purpose of offsetting dumping or subsidization which causes or threatens material injury to an industry in the territory of another contracting party exporting the product concerned to the territory of the importing contracting party. The CONTRACTING PARTIES shall waive the requirements of subparagraph (a) of this paragraph, so as to permit the levying of a countervailing duty, in cases in which they find that a subsidy is causing or threatening material injury to an industry in the territory of another contracting party exporting the product concerned to the territory of the importing contracting party.*
(c) In exceptional circumstances, however, where delay might cause damage which would be difficult to repair, a contracting party may levy a countervailing duty for the purpose referred to in subparagraph (b) of this paragraph without the prior approval of the CONTRACTING PARTIES; Provided that such action shall be reported immediately to the CONTRACTING PARTIES and that the countervailing duty shall be withdrawn promptly if the CONTRACTING PARTIES disapprove.
7. A system for the stabilization of the domestic price or of the return to domestic producers of a primary commodity, independently of the movements of export prices, which results at times in the sale of the commodity for export at a price lower than the comparable price charged for the like commodity to buyers in the domestic market, shall be presumed not to result in material injury within the meaning of paragraph 6 if it is determined by consultation among the contracting parties substantially interested in the commodity concerned that:
(a) the system has also resulted in the sale of the commodity for export at a price higher than the comparable price charged for the like commodity to buyers in the domestic market, and
(b) the system is so operated, either because of the effective regulation of production, or otherwise, as not to stimulate exports unduly or otherwise seriously prejudice the interests of other contracting parties.
1. The contracting parties recognize the validity of the general principles
of valuation set forth in the following paragraphs of this Article, and they
undertake to give effect to such principles, in respect of all products subject
to duties or other charges* or restrictions on importation and exportation based
upon or regulated in any manner by value. Moreover, they shall, upon a request
by another contracting party review the operation of any of their laws or regulations
relating to value for customs purposes in the light of these principles. The
CONTRACTING PARTIES may request from contracting parties reports on steps taken
by them in pursuance of the provisions of this Article.
2.
(a) The value for customs purposes of imported merchandise should be based on the actual value of the imported merchandise on which duty is assessed, or of like merchandise, and should not be based on the value of merchandise of national origin or on arbitrary or fictitious values.*
(b) "Actual value" should be the price at which, at a time and place determined by the legislation of the country of importation, such or like merchandise is sold or offered for sale in the ordinary course of trade under fully competitive conditions. To the extent to which the price of such or like merchandise is governed by the quantity in a particular transaction, the price to be considered should uniformly be related to either (i) comparable quantities, or (ii) quantities not less favourable to importers than those in which the greater volume of the merchandise is sold in the trade between the countries of exportation and importation.*
(c) When the actual value is not ascertainable in accordance with subparagraph (b) of this paragraph, the value for customs purposes should be based on the nearest ascertainable equivalent of such value.*
3. The value for customs purposes of any imported product should not include
the amount of any internal tax, applicable within the country of origin or export,
from which the imported product has been exempted or has been or will be relieved
by means of refund.
4.
(a) Except as otherwise provided for in this paragraph, where it is necessary for the purposes of paragraph 2 of this Article for a contracting party to convert into its own currency a price expressed in the currency of another country, the conversion rate of exchange to be used shall be based, for each currency involved, on the par value as established pursuant to the Articles of Agreement of the International Monetary Fund or on the rate of exchange recognized by the Fund, or on the par value established in accordance with a special exchange agreement entered into pursuant to Article XV of this Agreement.
(b) Where no such established par value and no such recognized rate of exchange exist, the conversion rate shall reflect effectively the current value of such currency in commercial transactions.
(c) The CONTRACTING PARTIES, in agreement with the International Monetary Fund, shall formulate rules governing the conversion by contracting parties of any foreign currency in respect of which multiple rates of exchange are maintained consistently with the Articles of Agreement of the International Monetary Fund. Any contracting party may apply such rules in respect of such foreign currencies for the purposes of paragraph 2 of this Article as an alternative to the use of par values. Until such rules are adopted by the Contracting Parties, any contracting party may employ, in respect of any such foreign currency, rules of conversion for the purposes of paragraph 2 of this Article which are designed to reflect effectively the value of such foreign currency in commercial transactions.
(d) Nothing in this paragraph shall be construed to require any contracting party to alter the method of converting currencies for customs purposes which is applicable in its territory on the date of this Agreement, if such alteration would have the effect of increasing generally the amounts of duty payable.
5. The bases and methods for determining the value of products subject to duties
or other charges or restrictions based upon or regulated in any manner by value
should be stable and should be given sufficient publicity to enable traders
to estimate, with a reasonable degree of certainty, the value for customs purposes.
1.
(a) All fees and charges of whatever character (other than import and export duties and other than taxes within the purview of Article III) imposed by contracting parties on or in connection with importation or exportation shall be limited in amount to the approximate cost of services rendered and shall not represent an indirect protection to domestic products or a taxation of imports or exports for fiscal purposes.
(b) The contracting parties recognize the need for reducing the number and diversity of fees and charges referred to in subparagraph (a).
(c) The contracting parties also recognize the need for minimizing the incidence and complexity of import and export formalities and for decreasing and simplifying import and export documentation requirements.*
2. A contracting party shall, upon request by another contracting party or
by the CONTRACTING PARTIES, review the operation of its laws and regulations
in the light of the provisions of this Article.
3. No contracting party shall impose substantial penalties for minor breaches
of customs regulations or procedural requirements. In particular, no penalty
in respect of any omission or mistake in customs documentation which is easily
rectifiable and obviously made without fraudulent intent or gross negligence
shall be greater than necessary to serve merely as a warning.
4. The provisions of this Article shall extend to fees, charges, formalities and requirements imposed by governmental authorities in connection with importation and exportation, including those relating to:
(a) consular transactions, such as consular invoices and certificates;
(b) quantitative restrictions;
(c) licensing;
(d) exchange control;
(e) statistical services;
(f) documents, documentation and certification;
(g) analysis and inspection; and
(h) quarantine, sanitation and fumigation.
1. Each contracting party shall accord to the products of the territories of
other contracting parties treatment with regard to marking requirements no less
favourable than the treatment accorded to like products of any third country.
2. The contracting parties recognize that, in adopting and enforcing laws and
regulations relating to marks of origin, the difficulties and inconveniences
which such measures may cause to the commerce and industry of exporting countries
should be reduced to a minimum, due regard being had to the necessity of protecting
consumers against fraudulent or misleading indications.
3. Whenever it is administratively practicable to do so, contracting parties
should permit required marks of origin to be affixed at the time of importation.
4. The laws and regulations of contracting parties relating to the marking
of imported products shall be such as to permit compliance without seriously
damaging the products, or materially reducing their value, or unreasonably increasing
their cost.
5. As a general rule, no special duty or penalty should be imposed by any contracting
party for failure to comply with marking requirements prior to importation unless
corrective marking is unreasonably delayed or deceptive marks have been affixed
or the required marking has been intentionally omitted.
6. The contracting parties shall co-operate with each other with a view to
preventing the use of trade names in such manner as to misrepresent the true
origin of a product, to the detriment of such distinctive regional or geographical
names of products of the territory of a contracting party as are protected by
its legislation. Each contracting party shall accord full and sympathetic consideration
to such requests or representations as may be made by any other contracting
party regarding the application of the undertaking set forth in the preceding
sentence to names of products which have been communicated to it by the other
contracting party.
1. Laws, regulations, judicial decisions and administrative rulings of general
application, made effective by any contracting party, pertaining to the classification
or the valuation of products for customs purposes, or to rates of duty, taxes
or other charges, or to requirements, restrictions or prohibitions on imports
or exports or on the transfer of payments therefor, or affecting their sale,
distribution, transportation, insurance, warehousing inspection, exhibition,
processing, mixing or other use, shall be published promptly in such a manner
as to enable governments and traders to become acquainted with them. Agreements
affecting international trade policy which are in force between the government
or a governmental agency of any contracting party and the government or governmental
agency of any other contracting party shall also be published. The provisions
of this paragraph shall not require any contracting party to disclose confidential
information which would impede law enforcement or otherwise be contrary to the
public interest or would prejudice the legitimate commercial interests of particular
enterprises, public or private.
2. No measure of general application taken by any contracting party effecting
an advance in a rate of duty or other charge on imports under an established
and uniform practice, or imposing a new or more burdensome requirement, restriction
or prohibition on imports, or on the transfer of payments therefor, shall be
enforced before such measure has been officially published.
3.
(a) Each contracting party shall administer in a uniform, impartial and reasonable manner all its laws, regulations, decisions and rulings of the kind described in paragraph 1 of this Article.
(b) Each contracting party shall maintain, or institute as soon as practicable, judicial, arbitral or administrative tribunals or procedures for the purpose, inter alia, of the prompt review and correction of administrative action relating to customs matters. Such tribunals or procedures shall be independent of the agencies entrusted with administrative enforcement and their decisions shall be implemented by, and shall govern the practice of, such agencies unless an appeal is lodged with a court or tribunal of superior jurisdiction within the time prescribed for appeals to be lodged by importers; Provided that the central administration of such agency may take steps to obtain a review of the matter in another proceeding if there is good cause to believe that the decision is inconsistent with established principles of law or the actual facts.
(c) The provisions of subparagraph (b) of this paragraph shall not require the elimination or substitution of procedures in force in the territory of a contracting party on the date of this Agreement which in fact provide for an objective and impartial review of administrative action even though such procedures are not fully or formally independent of the agencies entrusted with administrative enforcement. Any contracting party employing such procedures shall, upon request, furnish the CONTRACTING PARTIES with full information thereon in order that they may determine whether such procedures conform to the requirements of this subparagraph.
1. No prohibitions or restrictions other than duties, taxes or other charges,
whether made effective through quotas, import or export licences or other measures,
shall be instituted or maintained by any contracting party on the importation
of any product of the territory of any other contracting party or on the exportation
or sale for export of any product destined for the territory of any other contracting
party.
2. The provisions of paragraph 1 of this Article shall not extend to the following:
(a) Export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages of foodstuffs or other products essential to the exporting contracting party;
(b) Import and export prohibitions or restrictions necessary to the application of standards or regulations for the classification, grading or marketing of commodities in international trade;
(c) Import restrictions on any agricultural or fisheries product, imported in any form,* necessary to the enforcement of governmental measures which operate:
(i) to restrict the quantities of the like domestic product permitted to be marketed or produced, or, if there is no substantial domestic production of the like product, of a domestic product for which the imported product can be directly substituted; or
(ii) to remove a temporary surplus of the like domestic product, or, if there is no substantial domestic production of the like product, of a domestic product for which the imported product can be directly substituted, by making the surplus available to certain groups of domestic consumers free of charge or at prices below the current market level; or
(iii) to restrict the quantities permitted to be produced of any animal product the production of which is directly dependent, wholly or mainly, on the imported commodity, if the domestic production of that commodity is relatively negligible.
Any contracting party applying restrictions on the importation of any product
pursuant to subparagraph (c) of this paragraph shall give public notice of the
total quantity or value of the product permitted to be imported during a specified
future period and of any change in such quantity or value. Moreover, any restrictions
applied under (i) above shall not be such as will reduce the total of imports
relative to the total of domestic production, as compared with the proportion
which might reasonably be expected to rule between the two in the absence of
restrictions. In determining this proportion, the contracting party shall pay
due regard to the proportion prevailing during a previous representative period
and to any special factors* which may have affected or may be affecting the
trade in the product concerned.
1. Notwithstanding the provisions of paragraph 1 of Article XI, any contracting
party, in order to safeguard its external financial position and its balance
of payments, may restrict the quantity or value of merchandise permitted to
be imported, subject to the provisions of the following paragraphs of this Article.
2.
(a) Import restrictions instituted, maintained or intensified by a contracting party under this Article shall not exceed those necessary:
(i) to forestall the imminent threat of, or to stop, a serious decline in its monetary reserves, or
(ii) in the case of a contracting party with very low monetary reserves, to achieve a reasonable rate of increase in its reserves.
Due regard shall be paid in either case to any special factors which may be affecting the reserves of such contracting party or its need for reserves, including, where special external credits or other resources are available to it, the need to provide for the appropriate use of such credits or resources.
(b) Contracting parties applying restrictions under sub-paragraph (a) of this paragraph shall progressively relax them as such conditions improve, maintaining them only to the extent that the conditions specified in that subparagraph still justify their application. They shall eliminate the restrictions when conditions would no longer justify their institution or maintenance under that subparagraph.
3.
(a) Contracting parties undertake, in carrying out their domestic policies, to pay due regard to the need for maintaining or restoring equilibrium in their balance of payments on a sound and lasting basis and to the desirability of avoiding an uneconomic employment of productive resources. They recognize that, in order to achieve these ends, it is desirable so far as possible to adopt measures which expand rather than contract international trade.
(b) Contracting parties applying restrictions under this Article may determine the incidence of the restrictions on imports of different products or classes of products in such a way as to give priority to the importation of those products which are more essential.
(c) Contracting parties applying restrictions under this Article undertake:
(i) to avoid unnecessary damage to the commercial or economic interests of any other contracting party;*
(ii) not to apply restrictions so as to prevent unreasonably the importation of any description of goods in minimum commercial quantities the exclusion of which would impair regular channels of trade; and
(iii) not to apply restrictions which would prevent the importations of commercial samples or prevent compliance with patent, trade mark, copyright, or similar procedures.
(d) The contracting parties recognize that, as a result of domestic policies directed towards the achievement and maintenance of full and productive employment or towards the development of economic resources, a contracting party may experience a high level of demand for imports involving a threat to its monetary reserves of the sort referred to in paragraph 2 (a) of this Article. Accordingly, a contracting party otherwise complying with the provisions of this Article shall not be required to withdraw or modify restrictions on the ground that a change in those policies would render unnecessary restrictions which it is applying under this Article.
4.
(a) Any contracting party applying new restrictions or raising the general level of its existing restrictions by a substantial intensification of the measures applied under this Article shall immediately after instituting or intensifying such restrictions (or, in circumstances in which prior consultation is practicable, before doing so) consult with the CONTRACTING PARTIES as to the nature of its balance of payments difficulties, alternative corrective measures which may be available, and the possible effect of the restrictions on the economies of other contracting parties.
(b) On a date to be determined by them,* the CONTRACTING PARTIES shall review all restrictions still applied under this Article on that date. Beginning one year after that date, contracting parties applying import restrictions under this Article shall enter into consultations of the type provided for in subparagraph (a) of this paragraph with the CONTRACTING PARTIES annually.
(c)
(i) If, in the course of consultations with a contracting party under subparagraph (a) or (b) above, the CONTRACTING PARTIES find that the restrictions are not consistent with provisions of this Article or with those of Article XIII (subject to the provisions of Article XIV), they shall indicate the nature of the inconsistency and may advise that the restrictions be suitably modified.
(ii) If, however, as a result of the consultations, the CONTRACTING PARTIES determine that the restrictions are being applied in a manner involving an inconsistency of a serious nature with the provisions of this Article or with those of Article XIII (subject to the provisions of Article XIV) and that damage to the trade of any contracting party is caused or threatened thereby, they shall so inform the contracting party applying the restrictions and shall make appropriate recommendations for securing conformity with such provisions within the specified period of time. If such contracting party does not comply with these recommendations within the specified period, the CONTRACTING PARTIES may release any contracting party the trade of which is adversely affected by the restrictions from such obligations under this Agreement towards the contracting party applying the restrictions as they determine to be appropriate in the circumstances.
(d) The CONTRACTING PARTIES shall invite any contracting party which is applying restrictions under this Article to enter into consultations with them at the request of any contracting party which can establish a prima facie case that the restrictions are inconsistent with the provisions of this Article or with those of Article XIII (subject to the provisions of Article XIV) and that its trade is adversely affected thereby. However, no such invitation shall be issued unless the CONTRACTING PARTIES have ascertained that direct discussions between the contracting parties concerned have not been successful. If, as a result of the consultations with the CONTRACTING PARTIES, no agreement is reached and they determine that the restrictions are being applied inconsistently with such provisions, and that damage to the trade of the contracting party initiating the procedure is caused or threatened thereby, they shall recommend the withdrawal or modification of the restrictions. If the restrictions are not withdrawn or modified within such time as the CONTRACTING PARTIES may prescribe, they may release the contracting party initiating the procedure from such obligations under this Agreement towards the contracting party applying the restrictions as they determine to be appropriate in the circumstances.
(e) In proceeding under this paragraph, the CONTRACTING PARTIES shall have due regard to any special external factors adversely affecting the export trade of the contracting party applying the restrictions.*
(f) Determinations under this paragraph shall be rendered expeditiously and, if possible, within sixty days of the initiation of the consultations.
5. If there is a persistent and widespread application of import restrictions
under this Article, indicating the existence of a general disequilibrium which
is restricting international trade, the CONTRACTING PARTIES shall initiate discussions
to consider whether other measures might be taken, either by those contracting
parties the balance of payments of which are under pressure or by those the
balance of payments of which are tending to be exceptionally favourable, or
by any appropriate intergovernmental organization, to remove the underlying
causes of the disequilibrium. On the invitation of the CONTRACTING PARTIES,
contracting parties shall participate in such discussions.
1. No prohibition or restriction shall be applied by any contracting party
on the importation of any product of the territory of any other contracting
party or on the exportation of any product destined for the territory of any
other contracting party, unless the importation of the like product of all third
countries or the exportation of the like product to all third countries is similarly
prohibited or restricted.
2. In applying import restrictions to any product, contracting parties shall
aim at a distribution of trade in such product approaching as closely as possible
the shares which the various contracting parties might be expected to obtain
in the absence of such restrictions and to this end shall observe the following
provisions:
(a) Wherever practicable, quotas representing the total amount of permitted imports (whether allocated among supplying countries or not) shall be fixed, and notice given of their amount in accordance with paragraph 3 (b) of this Article;
(b) In cases in which quotas are not practicable, the restrictions may be applied by means of import licences or permits without a quota;
(c) Contracting parties shall not, except for purposes of operating quotas allocated in accordance with subparagraph (d) of this paragraph, require that import licences or permits be utilized for the importation of the product concerned from a particular country or source;
(d) In cases in which a quota is allocated among supplying countries the contracting party applying the restrictions may seek agreement with respect to the allocation of shares in the quota with all other contracting parties having a substantial interest in supplying the product concerned. In cases in which this method is not reasonably practicable, the contracting party concerned shall allot to contracting parties having a substantial interest in supplying the product shares based upon the proportions, supplied by such contracting parties during a previous representative period, of the total quantity or value of imports of the product, due account being taken of any special factors which may have affected or may be affecting the trade in the product. No conditions or formalities shall be imposed which would prevent any contracting party from utilizing fully the share of any such total quantity or value which has been allotted to it, subject to importation being made within any prescribed period to which the quota may relate.*
3.
(a) In cases in which import licences are issued in connection with import restrictions, the contracting party applying the restrictions shall provide, upon the request of any contracting party having an interest in the trade in the product concerned, all relevant information concerning the administration of the restrictions, the import licences granted over a recent period and the distribution of such licences among supplying countries; Provided that there shall be no obligation to supply information as to the names of importing or supplying enterprises.
(b) In the case of import restrictions involving the fixing of quotas, the contracting party applying the restrictions shall give public notice of the total quantity or value of the product or products which will be permitted to be imported during a specified future period and of any change in such quantity or value. Any supplies of the product in question which were en route at the time at which public notice was given shall not be excluded from entry; Provided that they may be counted so far as practicable, against the quantity permitted to be imported in the period in question, and also, where necessary, against the quantities permitted to be imported in the next following period or periods; and Provided further that if any contracting party customarily exempts from such restrictions products entered for consumption or withdrawn from warehouse for consumption during a period of thirty days after the day of such public notice, such practice shall be considered full compliance with this subparagraph.
(c) In the case of quotas allocated among supplying countries, the contracting party applying the restrictions shall promptly inform all other contracting parties having an interest in supplying the product concerned of the shares in the quota currently allocated, by quantity or value, to the various supplying countries and shall give public notice thereof.
4. With regard to restrictions applied in accordance with paragraph 2 (d) of
this Article or under paragraph 2 (c) of Article XI, the selection of a representative
period for any product and the appraisal of any special factors* affecting the
trade in the product shall be made initially by the contracting party applying
the restriction; Provided that such contracting party shall, upon the request
of any other contracting party having a substantial interest in supplying that
product or upon the request of the CONTRACTING PARTIES, consult promptly with
the other contracting party or the CONTRACTING PARTIES regarding the need for
an adjustment of the proportion determined or of the base period selected, or
for the reappraisal of the special factors involved, or for the elimination
of conditions, formalities or any other provisions established unilaterally
relating to the allocation of an adequate quota or its unrestricted utilization.
5. The provisions of this Article shall apply to any tariff quota instituted
or maintained by any contracting party, and, in so far as applicable, the principles
of this Article shall also extend to export restrictions.
1. A contracting party which applies restrictions under Article XII or under
Section B of Article XVIII may, in the application of such restrictions, deviate
from the provisions of Article XIII in a manner having equivalent effect to
restrictions on payments and transfers for current international transactions
which that contracting party may at that time apply under Article VIII or XIV
of the Articles of Agreement of the International Monetary Fund, or under analogous
provisions of a special exchange agreement entered into pursuant to paragraph
6 of Article XV.*
2. A contracting party which is applying import restrictions under Article
XII or under Section B of Article XVIII may, with the consent of the CONTRACTING
PARTIES, temporarily deviate from the provisions of Article XIII in respect
of a small part of its external trade where the benefits to the contracting
party or contracting parties concerned substantially outweigh any njury which
may result to the trade of other contracting parties.*
3. The provisions of Article XIII shall not preclude a group of territories
having a common quota in the International Monetary Fund from applying against
imports from other countries, but not among themselves, restrictions in accordance
with the provisions of Article XII or of Section B of Article XVIII on condition
that such restrictions are in all other respects consistent with the provisions
of Article XIII.
4. A contracting party applying import restrictions under Article XII or under
Section B of Article XVIII shall not be precluded by Articles XI to XV or Section
B of Article XVIII of this Agreement from applying measures to direct its exports
in such a manner as to increase its earnings of currencies which it can use
without deviation from the provisions of Article XIII.
5. A contracting party shall not be precluded by Articles XI to XV, inclusive,
or by Section B of Article XVIII, of this Agreement from applying quantitative
restrictions:
(a) having equivalent effect to exchange restrictions authorized under Section 3 (b) of Article VII of the Articles of Agreement of the International Monetary Fund, or
(b) under the preferential arrangements provided for in Annex A of this Agreement, pending the outcome of the negotiations referred to therein.
1. The CONTRACTING PARTIES shall seek co-operation with the International Monetary
Fund to the end that the CONTRACTING PARTIES and the Fund may pursue a co-ordinated
policy with regard to exchange questions within the jurisdiction of the Fund
and questions of quantitative restrictions and other trade measures within the
jurisdiction of the CONTRACTING PARTIES.
2. In all cases in which the CONTRACTING PARTIES are called upon to consider
or deal with problems concerning monetary reserves, balances of payments or
foreign exchange arrangements, they shall consult fully with the International
Monetary Fund. In such consultations, the CONTRACTING PARTIES shall accept all
findings of statistical and other facts presented by the Fund relating to foreign
exchange, monetary reserves and balances of payments, and shall accept the determination
of the Fund as to whether action by a contracting party in exchange matters
is in accordance with the Articles of Agreement of the International Monetary
Fund, or with the terms of a special exchange agreement between that contracting
party and the CONTRACTING PARTIES. The CONTRACTING PARTIES in reaching their
final decision in cases involving the criteria set forth in paragraph 2 (a)
of Article XII or in paragraph 9 of Article XVIII, shall accept the determination
of the Fund as to what constitutes a serious decline in the contracting party's
monetary reserves, a very low level of its monetary reserves or a reasonable
rate of increase in its monetary reserves, and as to the financial aspects of
other matters covered in consultation in such cases.
3. The CONTRACTING PARTIES shall seek agreement with the Fund regarding procedures
for consultation under paragraph 2 of this Article.
4. Contracting parties shall not, by exchange action, frustrate* the intent
of the provisions of this Agreement, nor, by trade action, the intent of the
provisions of the Articles of Agreement of the International Monetary Fund.
5. If the CONTRACTING PARTIES consider, at any time, that exchange restrictions
on payments and transfers in connection with imports are being applied by a
contracting party in a manner inconsistent with the exceptions provided for
in this Agreement for quantitative restrictions, they shall report thereon to
the Fund.
6. Any contracting party which is not a member of the Fund shall, within a time to be determined by the CONTRACTING PARTIES after consultation with the Fund, become a member of the Fund, or, failing that, enter into a special exchange agreement with the CONTRACTING PARTIES. A contracting party which ceases to be a member of the Fund shall forthwith enter into a special exchange agreement with the CONTRACTING PARTIES. Any special exchange agreement entered into by a contracting party under this paragraph shall thereupon become part of its obligations under this Agreement.
7.
(a) A special exchange agreement between a contracting party and the CONTRACTING PARTIES under paragraph 6 of this Article shall provide to the satisfaction of the CONTRACTING PARTIES that the objectives of this Agreement will not be frustrated as a result of action in exchange matters by the contracting party in question.
(b) The terms of any such agreement shall not impose obligations on the contracting party in exchange matters generally more restrictive than those imposed by the Articles of Agreement of the International Monetary Fund on members of the Fund.
8. A contracting party which is not a member of the Fund shall furnish such
information within the general scope of section 5 of Article VIII of the Articles
of Agreement of the International Monetary Fund as the CONTRACTING PARTIES may
require in order to carry out their functions under this Agreement.
9. Nothing in this Agreement shall preclude:
(a) the use by a contracting party of exchange controls or exchange restrictions in accordance with the Articles of Agreement of the International Monetary Fund or with that contracting party's special exchange agreement with the CONTRACTING PARTIES, or
(b) the use by a contracting party of restrictions or controls in imports or exports, the sole effect of which, additional to the effects permitted under Articles XI, XII, XIII and XIV, is to make effective such exchange controls or exchange restrictions.
1. If any contracting party grants or maintains any subsidy, including any form of income or price support, which operates directly or indirectly to increase exports of any product from, or to reduce imports of any product into, its territory, it shall notify the CONTRACTING PARTIES in writing of the extent and nature of the subsidization, of the estimated effect of the subsidization on the quantity of the affected product or products imported into or exported from its territory and of the circumstances making the subsidization necessary. In any case in which it is determined that serious prejudice to the interests of any other contracting party is caused or threatened by any such subsidization, the contracting party granting the subsidy shall, upon request, discuss with the other contracting party or parties concerned, or with the CONTRACTING PARTIES, the possibility of limiting the subsidization.
2. The contracting parties recognize that the granting by a contracting party
of a subsidy on the export of any product may have harmful effects for other
contracting parties, both importing and exporting, may cause undue disturbance
to their normal commercial interests, and may hinder the achievement of the
objectives of this Agreement.
3. Accordingly, contracting parties should seek to avoid the use of subsidies
on the export of primary products. If, however, a contracting party grants directly
or indirectly any form of subsidy which operates to increase the export of any
primary product from its territory, such subsidy shall not be applied in a manner
which results in that contracting party having more than an equitable share
of world export trade in that product, account being taken of the shares of
the contracting parties in such trade in the product during a previous representative
period, and any special factors which may have affected or may be affecting
such trade in the product.*
4. Further, as from 1 January 1958 or the earliest practicable date thereafter,
contracting parties shall cease to grant either directly or indirectly any form
of subsidy on the export of any product other than a primary product which subsidy
results in the sale of such product for export at a price lower than the comparable
price charged for the like product to buyers in the domestic market. Until 31
December 1957 no contracting party shall extend the scope of any such subsidization
beyond that existing on 1 January 1955 by the introduction of new, or the extension
of existing, subsidies.*
5. The CONTRACTING PARTIES shall review the operation of the provisions of
this Article from time to time with a view to examining its effectiveness, in
the light of actual experience, in promoting the objectives of this Agreement
and avoiding subsidization seriously prejudicial to the trade or interests of
contracting parties.
1.*
(a) Each contracting party undertakes that if it establishes or maintains a State enterprise, wherever located, or grants to any enterprise, formally or in effect, exclusive or special privileges,* such enterprise shall, in its purchases or sales involving either imports or exports, act in a manner consistent with the general principles of non-discriminatory treatment prescribed in this Agreement for governmental measures affecting imports or exports by private traders.
(b) The provisions of subparagraph (a) of this paragraph shall be understood to require that such enterprises shall, having due regard to the other provisions of this Agreement, make any such purchases or sales solely in accordance with commercial considerations,* including price, quality, availability, marketability, transportation and other conditions of purchase or sale, and shall afford the enterprises of the other contracting parties adequate opportunity, in accordance with customary business practice, to compete for participation in such purchases or sales.
(c) No contracting party shall prevent any enterprise (whether or not an enterprise described in subparagraph (a) of this paragraph) under its jurisdiction from acting in accordance with the principles of subparagraphs (a) and (b) of this paragraph.
2. The provisions of paragraph 1 of this Article shall not apply to imports
of products for immediate or ultimate consumption in governmental use and not
otherwise for resale or use in the production of goods* for sale. With respect
to such imports, each contracting party shall accord to the trade of the other
contracting parties fair and equitable treatment.
3. The contracting parties recognize that enterprises of the kind described
in paragraph 1 (a) of this Article might be operated so as to create serious
obstacles to trade; thus negotiations on a reciprocal and mutually advantageous
basis designed to limit or reduce such obstacles are of importance to the expansion
of international trade.*
4.
(a) Contracting parties shall notify the CONTRACTING PARTIES of the products which are imported into or exported from their territories by enterprises of the kind described in paragraph 1 (a) of this Article.
(b) A contracting party establishing, maintaining or authorizing an import monopoly of a product, which is not the subject of a concession under Article II, shall, on the request of another contracting party having a substantial trade in the product concerned, inform the CONTRACTING PARTIES of the import mark-up* on the product during a recent representative period, or, when it is not possible to do so, of the price charged on the resale of the product.
(c) The CONTRACTING PARTIES may, at the request of a contracting party which has reason to believe that its interest under this Agreement are being adversely affected by the operations of an enterprise of the kind described in paragraph 1 (a), request the contracting party establishing, maintaining or authorizing such enterprise to supply information about its operations related to the carrying out of the provisions of this Agreement.
(d) The provisions of this paragraph shall not require any contracting party to disclose confidential information which would impede law enforcement or otherwise be contrary to the public interest or would prejudice the legitimate commercial interests of particular enterprises.
1. The contracting parties recognize that the attainment of the objectives
of this Agreement will be facilitated by the progressive development of their
economies, particularly of those contracting parties the economies of which
can only support low standards of living* and are in the early stages of development.*
2. The contracting parties recognize further that it may be necessary for those
contracting parties, in order to implement programmes and policies of economic
development designed to raise the general standard of living of their people,
to take protective or other measures affecting imports, and that such measures
are justified in so far as they facilitate the attainment of the objectives
of this Agreement. They agree, therefore, that those contracting parties should
enjoy additional facilities to enable them (a) to maintain sufficient flexibility
in their tariff structure to be able to grant the tariff protection required
for the establishment of a particular industry* and (b) to apply quantitative
restrictions for balance of payments purposes in a manner which takes full account
of the continued high level of demand for imports likely to be generated by
their programmes of economic development.
3. The contracting parties recognize finally that, with those additional facilities
which are provided for in Sections A and B of this Article, the provisions of
this Agreement would normally be sufficient to enable contracting parties to
meet the requirements of their economic development. They agree, however, that
there may be circumstances where no measure consistent with those provisions
is practicable to permit a contracting party in the process of economic development
to grant the governmental assistance required to promote the establishment of
particular industries* with a view to raising the general standard of living
of its people. Special procedures are laid down in Sections C and D of this
Article to deal with those cases.
4.
(a) Consequently, a contracting party, the economy of which can only support low standards of living* and is in the early stages of development,* shall be free to deviate temporarily from the provisions of the other Articles of this Agreement, as provided in Sections A, B and C of this Article.
(b) A contracting party, the economy of which is in the process of development, but which does not come within the scope of subparagraph (a) above, may submit applications to the CONTRACTING PARTIES under Section D of this Article.
5. The contracting parties recognize that the export earnings of contracting
parties, the economies of which are of the type described in paragraph 4 (a)
and (b) above and which depend on exports of a small number of primary commodities,
may be seriously reduced by a decline in the sale of such commodities. Accordingly,
when the exports of primary commodities by such a contracting party are seriously
affected by measures taken by another contracting party, it may have resort
to the consultation provisions of Article XXII of this Agreement.
6. The CONTRACTING PARTIES shall review annually all measures applied pursuant
to the provisions of Sections C and D of this Article.
7.
(a) If a contracting party coming within the scope of paragraph 4 (a) of this Article considers it desirable, in order to promote the establishment of a particular industry* with a view to raising the general standard of living of its people, to modify or withdraw a concession included in the appropriate Schedule annexed to this Agreement, it shall notify the CONTRACTING PARTIES to this effect and enter into negotiations with any contracting party with which such concession was initially negotiated, and with any other contracting party determined by the CONTRACTING PARTIES to have a substantial interest therein. If agreement is reached between such contracting parties concerned, they shall be free to modify or withdraw concessions under the appropriate Schedules to this Agreement in order to give effect to such agreement, including any compensatory adjustments involved.
(b) If agreement is not reached within sixty days after the notification provided for in subparagraph (a) above, the contracting party which proposes to modify or withdraw the concession may refer the matter to the CONTRACTING PARTIES which shall promptly examine it. If they find that the contracting party which proposes to modify or withdraw the concession has made every effort to reach an agreement and that the compensatory adjustment offered by it is adequate, that contracting party shall be free to modify or withdraw the concession if, at the same time, it gives effect to the compensatory adjustment. If the CONTRACTING PARTIES do not find that the compensation offered by a contracting party proposing to modify or withdraw the concession is adequate, but find that it has made every reasonable effort to offer adequate compensation, that contracting party shall be free to proceed with such modification or withdrawal. If such action is taken, any other contracting party referred to in subparagraph (a) above shall be free to modify or withdraw substantially equivalent concessions initially negotiated with the contracting party which has taken the action.*
8. The contracting parties recognize that contracting parties coming within
the scope of paragraph 4 (a) of this Article tend, when they are in rapid process
of development, to experience balance of payments difficulties arising mainly
from efforts to expand their internal markets as well as from the instability
in their terms of trade.
9. In order to safeguard its external financial position and to ensure a level
of reserves adequate for the implementation of its programme of economic development,
a contracting party coming within the scope of paragraph 4 (a) of this Article
may, subject to the provisions of paragraphs 10 to 12, control the general level
of its imports by restricting the quantity or value of merchandise permitted
to be imported; Provided that the import restrictions instituted, maintained
or intensified shall not exceed those necessary:
(a) to forestall the threat of, or to stop, a serious decline in its monetary reserves, or
(b) in the case of a contracting party with inadequate monetary reserves, to achieve a reasonable rate of increase in its reserves.
Due regard shall be paid in either case to any special factors which may be
affecting the reserves of the contracting party or its need for reserves, including,
where special external credits or other resources are available to it, the need
to provide for the appropriate use of such credits or resources.
10. In applying these restrictions, the contracting party may determine their
incidence on imports of different products or classes of products in such a
way as to give priority to the importation of those products which are more
essential in the light of its policy of economic development; Provided that
the restrictions are so applied as to avoid unnecessary damage to the commercial
or economic interests of any other contracting party and not to prevent unreasonably
the importation of any description of goods in minimum commercial quantities
the exclusion of which would impair regular channels of trade; and Provided
further that the restrictions are not so applied as to prevent the importation
of commercial samples or to prevent compliance with patent, trade mark, copyright
or similar procedures.
11. In carrying out its domestic policies, the contracting party concerned
shall pay due regard to the need for restoring equilibrium in its balance of
payments on a sound and lasting basis and to the desirability of assuring an
economic employment of productive resources. It shall progressively relax any
restrictions applied under this Section as conditions improve, maintaining them
only to the extent necessary under the terms of paragraph 9 of this Article
and shall eliminate them when conditions no longer justify such maintenance;
Provided that no contracting party shall be required to withdraw or modify restrictions
on the ground that a change in its development policy would render unnecessary
the restrictions which it is applying under this Section.*
12.
(a) Any contracting party applying new restrictions or raising the general level of its existing restrictions by a substantial intensification of the measures applied under this Section, shall immediately after instituting or intensifying such restrictions (or, in circumstances in which prior consultation is practicable, before doing so) consult with the CONTRACTING PARTIES as to the nature of its balance of payments difficulties, alternative corrective measures which may be available, and the possible effect of the restrictions on the economies of other contracting parties.
(b) On a date to be determined by them* the CONTRACTING PARTIES shall review all restrictions still applied under this Section on that date. Beginning two years after that date, contracting parties applying restrictions under this Section shall enter into consultations of the type provided for in subparagraph (a) above with the CONTRACTING PARTIES at intervals of approximately, but not less than, two years according to a programme to be drawn up each year by the CONTRACTING PARTIES; Provided that no consultation under this subparagraph shall take place within two years after the conclusion of a consultation of a general nature under any other provision of this paragraph.
(c)
(i) If, in the course of consultations with a contracting party under subparagraph (a) or (b) of this paragraph, the CONTRACTING PARTIES find that the restrictions are not consistent with the provisions of this Section or with those of Article XIII (subject to the provisions of Article XIV), they shall indicate the nature of the inconsistency and may advise that the restrictions be suitably modified.
(ii) If, however, as a result of the consultations, the CONTRACTING PARTIES determine that the restrictions are being applied in a manner involving an inconsistency of a serious nature with the provisions of this Section or with those of Article XIII (subject to the provisions of Article XIV) and that damage to the trade of any contracting party is caused or threatened thereby, they shall so inform the contracting party applying the restrictions and shall make appropriate recommendations for securing conformity with such provisions within a specified period. If such contracting party does not comply with these recommendations within the specified period, the CONTRACTING PARTIES may release any contracting party the trade of which is adversely affected by the restrictions from such obligations under this Agreement towards the contracting party applying the restrictions as they determine to be appropriate in the circumstances.
(d) The CONTRACTING PARTIES shall invite any contracting party which is applying restrictions under this Section to enter into consultations with them at the request of any contracting party which can establish a prima facie case that the restrictions are inconsistent with the provisions of this Section or with those of Article XIII (subject to the provisions of Article XIV) and that its trade is adversely affected thereby. However, no such invitation shall be issued unless the CONTRACTING PARTIES have ascertained that direct discussions between the contracting parties concerned have not been successful. If, as a result of the consultations with the CONTRACTING PARTIES no agreement is reached and they determine that the restrictions are being applied inconsistently with such provisions, and that damage to the trade of the contracting party initiating the procedure is caused or threatened thereby, they shall recommend the withdrawal or modification of the restrictions. If the restrictions are not withdrawn or modified within such time as the CONTRACTING PARTIES may prescribe, they may release the contracting party initiating the procedure from such obligations under this Agreement towards the contracting party applying the restrictions as they determine to be appropriate in the circumstances.
(e) If a contracting party against which action has been taken in accordance with the last sentence of subparagraph (c) (ii) or (d) of this paragraph, finds that the release of obligations authorized by the CONTRACTING PARTIES adversely affects the operation of its programme and policy of economic development, it shall be free, not later than sixty days after such action is taken, to give written notice to the Executive Secretary 2 to the Contracting Parties of its intention to withdraw from this Agreement and such withdrawal shall take effect on the sixtieth day following the day on which the notice is received by him.
(f) In proceeding under this paragraph, the CONTRACTING PARTIES shall have due regard to the factors referred to in paragraph 2 of this Article. Determinations under this paragraph shall be rendered expeditiously and, if possible, within sixty days of the initiation of the consultations.
13. If a contracting party coming within the scope of paragraph 4 (a) of this
Article finds that governmental assistance is required to promote the establishment
of a particular industry* with a view to raising the general standard of living
of its people, but that no measure consistent with the other provisions of this
Agreement is practicable to achieve that objective, it may have recourse to
the provisions and procedures set out in this Section.*
14. The contracting party concerned shall notify the CONTRACTING PARTIES of the special difficulties which it meets in the achievement of the objective outlined in paragraph 13 of this Article and shall indicate the specific measure affecting imports which it proposes to introduce in order to remedy these difficulties. It shall not introduce that measure before the expiration of the time-limit laid down in paragraph 15 or 17, as the case may be, or if the measure affects imports of a product which is the subject of a concession included in the appropriate Schedule annexed to this Agreement, unless it has secured the concurrence of the CONTRACTING PARTIES in accordance with provisions of paragraph 18; Provided that, if the industry receiving
assistance has already started production, the contracting party may, after
informing the CONTRACTING PARTIES, take such measures as may be necessary to
prevent, during that period, imports of the product or products concerned from
increasing substantially above a normal level.*
15. If, within thirty days of the notification of the measure, the CONTRACTING
PARTIES do not request the contracting party concerned to consult with them,*
that contracting party shall be free to deviate from the relevant provisions
of the other Articles of this Agreement to the extent necessary to apply the
proposed measure.
16. If it is requested by the CONTRACTING PARTIES to do so,* the contracting
party concerned shall consult with them as to the purpose of the proposed measure,
as to alternative measures which may be available under this Agreement, and
as to the possible effect of the measure proposed on the commercial and economic
interests of other contracting parties. If, as a result of such consultation,
the CONTRACTING PARTIES agree that there is no measure consistent with the other
provisions of this Agreement which is practicable in order to achieve the objective
outlined in paragraph 13 of this Article, and concur* in the proposed measure,
the contracting party concerned shall be released from its obligations under
the relevant provisions of the other Articles of this Agreement to the extent
necessary to apply that measure.
17. If, within ninety days after the date of the notification of the proposed
measure under paragraph 14 of this Article, the CONTRACTING PARTIES have not
concurred in such measure, the contracting party concerned may introduce the
measure proposed after informing the CONTRACTING PARTIES.
18. If the proposed measure affects a product which is the subject of a concession
included in the appropriate Schedule annexed to this Agreement, the contracting
party concerned shall enter into consultations with any other contracting party
with which the concession was initially negotiated, and with any other contracting
party determined by the CONTRACTING PARTIES to have a substantial interest therein.
The CONTRACTING PARTIES shall concur* in the measure if they agree that there
is no measure consistent with the other provisions of this Agreement which is
practicable in order to achieve the objective set forth in paragraph 13 of this
Article, and if they are satisfied:
(a) that agreement has been reached with such other contracting parties as a result of the consultations referred to above, or
(b) if no such agreement has been reached within sixty days after the notification provided for in paragraph 14 has been received by the CONTRACTING PARTIES, that the contracting party having recourse to this Section has made all reasonable efforts to reach an agreement and that the interests of other contracting parties are adequately safeguarded.*
The contracting party having recourse to this Section shall thereupon be released
from its obligations under the relevant provisions of the other Articles of
this Agreement to the extent necessary to permit it to apply the measure.
19. If a proposed measure of the type described in paragraph 13 of this Article
concerns an industry the establishment of which has in the initial period been
facilitated by incidental protection afforded by restrictions imposed by the
contracting party concerned for balance of payments purposes under the relevant
provisions of this Agreement, that contracting party may resort to the provisions
and procedures of this Section; Provided that it shall not apply the proposed
measure without the concurrence* of the CONTRACTING PARTIES.*
20. Nothing in the preceding paragraphs of this Section shall authorize any
deviation from the provisions of Articles I, II and XIII of this Agreement.
The provisos to paragraph 10 of this Article shall also be applicable to any
restriction under this Section.
21. At any time while a measure is being applied under paragraph 17 of this
Article any contracting party substantially affected by it may suspend the application
to the trade of the contracting party having recourse to this Section of such
substantially equivalent concessions or other obligations under this Agreement
the suspension of which the CONTRACTING PARTIES do not disapprove;* Provided
that sixty days' notice of such suspension is given to the CONTRACTING PARTIES
not later than six months after the measure has been introduced or changed substantially
to the detriment of the contracting party affected. Any such contracting party
shall afford adequate opportunity for consultation in accordance with the provisions
of Article XXII of this Agreement.
22. A contracting party coming within the scope of subparagraph 4 (b) of this
Article desiring, in the interest of the development of its economy, to introduce
a measure of the type described in paragraph 13 of this Article in respect of
the establishment of a particular industry* may apply to the CONTRACTING PARTIES
for approval of such measure. The CONTRACTING PARTIES shall promptly consult
with such contracting party and shall, in making their decision, be guided by
the considerations set out in paragraph 16. If the CONTRACTING PARTIES concur*
in the proposed measure the contracting party concerned shall be released from
its obligations under the relevant provisions of the other Articles of this
Agreement to the extent necessary to permit it to apply the measure. If the
proposed measure affects a product which is the subject of a concession included
in the appropriate Schedule annexed to this Agreement, the provisions of paragraph
18 shall apply.*
23. Any measure applied under this Section shall comply with the provisions
of paragraph 20 of this Article.
1.
(a) If, as a result of unforeseen developments and of the effect of the obligations incurred by a contracting party under this Agreement, including tariff concessions, any product is being imported into the territory of that contracting party in such increased quantities and under such conditions as to cause or threaten serious injury to domestic producers in that territory of like or directly competitive products, the contracting party shall be free, in respect of such product, and to the extent and for such time as may be necessary to prevent or remedy such injury, to suspend the obligation in whole or in part or to withdraw or modify the concession.
(b) If any product, which is the subject of a concession with respect to a preference, is being imported into the territory of a contracting party in the circumstances set forth in subparagraph (a) of this paragraph, so as to cause or threaten serious injury to domestic producers of like or directly competitive products in the territory of a contracting party which receives or received such preference, the importing contracting party shall be free, if that other contracting party so requests, to suspend the relevant obligation in whole or in part or to withdraw or modify the concession in respect of the product, to the extent and for such time as may be necessary to prevent or remedy such injury.
2. Before any contracting party shall take action pursuant to the provisions
of paragraph 1 of this Article, it shall give notice in writing to the CONTRACTING
PARTIES as far in advance as may be practicable and shall afford the CONTRACTING
PARTIES and those contracting parties having a substantial interest as exporters
of the product concerned an opportunity to consult with it in respect of the
proposed action. When such notice is given in relation to a concession with
respect to a preference, the notice shall name the contracting party which has
requested the action. In critical circumstances, where delay would cause damage
which it would be difficult to repair, action under paragraph 1 of this Article
may be taken provisionally without prior consultation, on the condition that
consultation shall be effected immediately after taking such action.
3.
(a) If agreement among the interested contracting parties with respect to the action is not reached, the contracting party which proposes to take or continue the action shall, nevertheless, be free to do so, and if such action is taken or continued, the affected contracting parties shall then be free, not later than ninety days after such action is taken, to suspend, upon the expiration of thirty days from the day on which written notice of such suspension is received by the CONTRACTING PARTIES, the application to the trade of the contracting party taking such action, or, in the case envisaged in paragraph 1 (b) of this Article, to the trade of the contracting party requesting such action, of such substantially equivalent concessions or other obligations under this Agreement the suspension of which the CONTRACTING PARTIES do not disapprove.
(b) Notwithstanding the provisions of subparagraph (a) of this paragraph, where action is taken under paragraph 2 of this Article without prior consultation and causes or threatens serious injury in the territory of a contracting party to the domestic producers of products affected by the action, that contracting party shall, where delay would cause damage difficult to repair, be free to suspend, upon the taking of the action and throughout the period of consultation, such concessions or other obligations as may be necessary to prevent or remedy the injury.
Subject to the requirement that such measures are not applied in a manner which
would constitute a means of arbitrary or unjustifiable discrimination between
countries where the same conditions prevail, or a disguised restriction on international
trade, nothing in this Agreement shall be construed to prevent the adoption
or enforcement by any contracting party of measures:
(a) necessary to protect public morals;
(b) necessary to protect human, animal or plant life or health;
(c) relating to the importations or exportations of gold or silver;
(d) necessary to secure compliance with laws or regulations which are not inconsistent with the provisions of this Agreement, including those relating to customs enforcement, the enforcement of monopolies operated under paragraph 4 of Article II and Article XVII, the protection of patents, trade marks and copyrights, and the prevention of deceptive practices;
(e) relating to the products of prison labour;
(f) imposed for the protection of national treasures of artistic, historic or archaeological value;
(g) relating to the conservation of exhaustible natural resources if such measures are made effective in conjunction with restrictions on domestic production or consumption;
(h) undertaken in pursuance of obligations under any intergovernmental commodity agreement which conforms to criteria submitted to the CONTRACTING PARTIES and not disapproved by them or which is itself so submitted and not so disapproved;*
(i) involving restrictions on exports of domestic materials necessary to ensure essential quantities of such materials to a domestic processing industry during periods when the domestic price of such materials is held below the world price as part of a governmental stabilization plan; Provided that such restrictions shall not operate to increase the exports of or the protection afforded to such domestic industry, and shall not depart from the provisions of this Agreement relating to nondiscrimination;
(j) essential to the acquisition or distribution of products in general or local short supply; Provided that any such measures shall be consistent with the principle that all contracting parties are entitled to an equitable share of the international supply of such products, and that any such measures, which are inconsistent with the other provisions of the Agreement shall be discontinued as soon as the conditions giving rise to them have ceased to exist. The CONTRACTING PARTIES shall review the need for this subparagraph not later than 30 June 1960.
Nothing in this Agreement shall be construed
(a) to require any contracting party to furnish any information the disclosure of which it considers contrary to its essential security interests; or
(b) to prevent any contracting party from taking any action which it considers necessary for the protection of its essential security interests
(i) relating to fissionable materials or the materials from which they are derived;
(ii) relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials as is carried on directly or indirectly for the purpose of supplying a military establishment;
(iii) taken in time of war or other emergency in international relations; or
(c) to prevent any contracting party from taking any action in pursuance of its obligations under the United Nations Charter for the maintenance of international peace and security.
2. The CONTRACTING PARTIES may, at the request of a contracting party, consult
with any contracting party or parties in respect of any matter for which it
has not been possible to find a satisfactory solution through consultation under
paragraph 1.
1. If any contracting party should consider that any benefit accruing to it
directly or indirectly under this Agreement is being nullified or impaired or
that the attainment of any objective of the Agreement is being impeded as the
result of
(a) the failure of another contracting party to carry out its obligations under this Agreement, or
(b) the application by another contracting party of any measure, whether or not it conflicts with the provisions of this Agreement, or
(c) the existence of any other situation,
the contracting party may, with a view to the satisfactory adjustment of the
matter, make written representations or proposals to the other contracting party
or parties which it considers to be concerned. Any contracting party thus approached
shall give sympathetic consideration to the representations or proposals made
to it.
2. If no satisfactory adjustment is effected between the contracting parties concerned within a reasonable time, or if the difficulty is of the type described in paragraph 1 (c) of this Article, the matter may be referred to the CONTRACTING PARTIES. The CONTRACTING PARTIES shall promptly investigate any matter so referred to them and shall make appropriate recommendations to the contracting parties which they consider to be concerned, or give a ruling on the matter, as appropriate. The CONTRACTING PARTIES may consult with contracting parties, with the Economic and Social Council of the United Nations and with any appropriate inter-governmental organization in cases where they consider such consultation necessary. If the CONTRACTING PARTIES consider that the circumstances are serious enough to justify such action, they may authorize a contracting party or parties to suspend the application to any other contracting party or parties of such concessions or other obligations under this Agreement as they determine to be appropriate in the circumstances. If the application to any contracting party of any concession or other obligation is in fact suspended, that contracting party shall then be free, not later than sixty days after such action is taken, to give written notice to the Executive Secretary 3 to the Contracting Parties of its intention to withdraw from this Agreement and such withdrawal shall take effect upon the sixtieth day following the day on which such notice is received by him.
2. For the purposes of this Agreement a customs territory shall be understood
to mean any territory with respect to which separate tariffs or other regulations
of commerce are maintained for a substantial part of the trade of such territory
with other territories.
3. The provisions of this Agreement shall not be construed to prevent:
(a) Advantages accorded by any contracting party to adjacent countries in order to facilitate frontier traffic;
(b) Advantages accorded to the trade with the Free Territory of Trieste by countries contiguous to that territory, provided that such advantages are not in conflict with the Treaties of Peace arising out of the Second World War.
4. The contracting parties recognize the desirability of increasing freedom
of trade by the development, through voluntary agreements, of closer integration
between the economies of the countries parties to such agreements. They also
recognize that the purpose of a customs union or of a free-trade area should
be to facilitate trade between the constituent territories and not to raise
barriers to the trade of other contracting parties with such territories.
5. Accordingly, the provisions of this Agreement shall not prevent, as between
the territories of contracting parties, the formation of a customs union or
of a free-trade area or the adoption of an interim agreement necessary for the
formation of a customs union or of a free-trade area; Provided that:
(a) with respect to a customs union, or an interim agreement leading to a formation of a customs union, the duties and other regulations of commerce imposed at the institution of any such union or interim agreement in respect of trade with contracting parties not parties to such union or agreement shall not on the whole be higher or more restrictive than the general incidence of the duties and regulations of commerce applicable in the constituent territories prior to the formation of such union or the adoption of such interim agreement, as the case may be;
(b) with respect to a free-trade area, or an interim agreement leading to the formation of a free-trade area, the duties and other regulations of commerce maintained in each if the constituent territories and applicable at the formation of such free-trade area or the adoption of such interim agreement to the trade of contracting parties not included in such area or not parties to such agreement shall not be higher or more restrictive than the corresponding duties and other regulations of commerce existing in the same constituent territories prior to the formation of the free-trade area, or interim agreement as the case may be; and
(c) any interim agreement referred to in subparagraphs (a) and (b) shall include a plan and schedule for the formation of such a customs union or of such a free-trade area within a reasonable length of time.
6. If, in fulfilling the requirements of subparagraph 5 (a), a contracting party proposes to increase any rate of duty inconsistently with the provisions of Article II, the procedure set forth in Article XXVIII shall apply. In providing for compensatory adjustment, due account shall be taken of the compensation already afforded by the reduction brought about in the corresponding duty of the other constituents of the union.
7.
(a) Any contracting party deciding to enter into a customs union or free-trade area, or an interim agreement leading to the formation of such a union or area, shall promptly notify the CONTRACTING PARTIES and shall make available to them such information regarding the proposed union or area as will enable them to make such reports and recommendations to contracting parties as they may deem appropriate.
(b) If, after having studied the plan and schedule included in an interim agreement referred to in paragraph 5 in consultation with the parties to that agreement and taking due account of the information made available in accordance with the provisions of subparagraph (a), the CONTRACTING PARTIES find that such agreement is not likely to result in the formation of a customs union or of a free-trade area within the period contemplated by the parties to the agreement or that such period is not a reasonable one, the CONTRACTING PARTIES shall make recommendations to the parties to the agreement. The parties shall not maintain or put into force, as the case may be, such agreement if they are not prepared to modify it in accordance with these recommendations.
(c) Any substantial change in the plan or schedule referred to in paragraph 5 (c) shall be communicated to the CONTRACTING PARTIES, which may request the contracting parties concerned to consult with them if the change seems likely to jeopardize or delay unduly the formation of the customs union or of the free-trade area.
8. For the purposes of this Agreement:
(a) A customs union shall be understood to mean the substitution of a single customs territory for two or more customs territories, so that
(i) duties and other restrictive regulations of commerce (except, where necessary, those permitted under Articles XI, XII, XIII, XIV, XV and XX) are eliminated with respect to substantially all the trade between the constituent territories of the union or at least with respect to substantially all the trade in products originating in such territories, and,
(ii) subject to the provisions of paragraph 9, substantially the same duties and other regulations of commerce are applied by each of the members of the union to the trade of territories not included in the union;
(b) A free-trade area shall be understood to mean a group of two or more customs territories in which the duties and other restrictive regulations of commerce (except, where necessary, those permitted under Articles XI, XII, XIII, XIV, XV and XX) are eliminated on substantially all the trade between the constituent territories in products originating in such territories.
9. The preferences referred to in paragraph 2 of Article I shall not be affected
by the formation of a customs union or of a free-trade area but may be eliminated
or adjusted by means of negotiations with contracting parties affected.* This
procedure of negotiations with affected contracting parties shall, in particular,
apply to the elimination of preferences required to conform with the provisions
of paragraph 8 (a)(i) and paragraph 8 (b).
10. The CONTRACTING PARTIES may by a two-thirds majority approve proposals
which do not fully comply with the requirements of paragraphs 5 to 9 inclusive,
provided that such proposals lead to the formation of a customs union or a free-trade
area in the sense of this Article.
11. Taking into account the exceptional circumstances arising out of the establishment
of India and Pakistan as independent States and recognizing the fact that they
have long constituted an economic unit, the contracting parties agree that the
provisions of this Agreement shall not prevent the two countries from entering
into special arrangements with respect to the trade between them, pending the
establishment of their mutual trade relations on a definitive basis.*
12. Each contracting party shall take such reasonable measures as may be available
to it to ensure observance of the provisions of this Agreement by the regional
and local governments and authorities within its territories.
1. Representatives of the contracting parties shall meet from time to time
for the purpose of giving effect to those provisions of this Agreement which
involve joint action and, generally, with a view to facilitating the operation
and furthering the objectives of this Agreement. Wherever reference is made
in this Agreement to the contracting parties acting jointly they are designated
as the CONTRACTING PARTIES.
2. The Secretary-General of the United Nations is requested to convene the
first meeting of the CONTRACTING PARTIES, which shall take place not later than
March 1, 1948.
3. Each contracting party shall be entitled to have one vote at all meetings
of the CONTRACTING PARTIES.
4. Except as otherwise provided for in this Agreement, decisions of the CONTRACTING PARTIES shall be taken by a majority of the votes cast.
5. In exceptional circumstances not elsewhere provided for in this Agreement,
the CONTRACTING PARTIES may waive an obligation imposed upon a contracting party
by this Agreement; Provided that any such decision shall be approved by a two-thirds
majority of the votes cast and that such majority shall comprise more than half
of the contracting parties. The CONTRACTING PARTIES may also by such a vote
(i) define certain categories of exceptional circumstances to which other voting requirements shall apply for the waiver of obligations, and
(ii) prescribe such criteria as may be necessary for the application of this paragraph. 4
1. The date of this Agreement shall be 30 October 1947.
2. This Agreement shall be open for acceptance by any contracting party which,
on 1 March 1955, was a contracting party or was negotiating with a view to accession
to this Agreement.
3. This Agreement, done in a single English original and a single French original,
both texts authentic, shall be deposited with the Secretary-General of the United
Nations, who shall furnish certified copies thereof to all interested governments.
4. Each government accepting this Agreement shall deposit an instrument of
acceptance with the Executive Secretary to the Contracting Parties, who will
inform all interested governments of the date of deposit of each instrument
of acceptance and of the day on which this Agreement enters into force under
paragraph 6 of this Article.
5.
(a) Each government accepting this Agreement does so in respect of its metropolitan
territory and of the other territories for which it has international responsibility,
except such separate customs territories as it shall notify to the Executive
Secretary 5 to the CONTRACTING PARTIES at the time of its own acceptance.
(b) Any government, which has so notified the Executive Secretary 5 under
the exceptions in subparagraph (a) of this paragraph, may at any time give notice
to the Executive Secretary5 that its acceptance shall be effective in respect
of any separate customs territory or territories so excepted and such notice
shall take effect on the thirtieth day following the day on which it is received
by the Executive Secretary. 5
(c) If any of the customs territories, in respect of which a contracting party
has accepted this Agreement, possesses or acquires full autonomy in the conduct
of its external commercial relations and of the other matters provided for in
this Agreement, such territory shall, upon sponsorship through a declaration
by the responsible contracting party establishing the above-mentioned fact,
be deemed to be a contracting party.
6. This Agreement shall enter into force, as among the governments which have accepted it, on the thirtieth day following the day on which instruments of acceptance have been deposited with Executive Secretary 6 to the Contracting Parties on behalf of governments named in Annex H, the territories of which account for 85 per centum of the total external trade of the territories
of such governments, computed in accordance with the applicable column of percentages
set forth therein, The instrument of acceptance of each other government shall
take effect on the thirtieth day following the day on which such instrument
has been deposited.
7. The United Nations is authorized to effect registration of this Agreement
as soon as it enters into force.
Any contracting party shall at any time be free to withhold or to withdraw
in whole or in part any concession, provided for in the appropriate Schedule
annexed to this Agreement, in respect of which such contracting party determines
that it was initially negotiated with a government which has not become, or
has ceased to be, a contracting party. A contracting party taking such action
shall notify the CONTRACTING PARTIES and, upon request, consult with contracting
parties which have a substantial interest in the product concerned.
1. On the first day of each three-year period, the first period beginning on
1 January 1958 (or on the first day of any other period* that may be specified
by the CONTRACTING PARTIES by two-thirds of the votes cast) a contracting party
(hereafter in this Article referred to as the "applicant contracting party")
may, by negotiation and agreement with any contracting party with which such
concession was initially negotiated and with any other contracting party determined
by the CONTRACTING PARTIES to have a principal supplying interest* (which two
preceding categories of contracting parties, together with the applicant contracting
party, are in this Article hereinafter referred to as the "contracting parties
primarily concerned"), and subject to consultation with any other contracting
party determined by the CONTRACTING PARTIES to have a substantial interest*
in such concession, modify or withdraw a concession* included in the appropriate
schedule annexed to this Agreement.
2. In such negotiations and agreement, which may include provision for compensatory
adjustment with respect to other products, the contracting parties concerned
shall endeavour to maintain a general level of reciprocal and mutually advantageous
concessions not less favourable to trade than that provided for in this Agreement
prior to such negotiations.
3.
(a) If agreement between the contracting parties primarily concerned cannot be reached before 1 January 1958 or before the expiration of a period envisaged in paragraph 1 of this Article, the contracting party which proposes to modify or withdraw the concession shall, nevertheless, be free to do so and if such action is taken any contracting party with which such concession was initially negotiated, any contracting party determined under paragraph 1 to have a principal supplying interest and any contracting party determined under paragraph 1 to have a substantial interest shall then be free not later than six months after such action is taken, to withdraw, upon the expiration of thirty days from the day on which written notice of such withdrawal is received by the CONTRACTING PARTIES, substantially equivalent concessions initially negotiated with the applicant contracting party.
(b) If agreement between the contracting parties primarily concerned is reached but any other contracting party determined under paragraph 1 of this Article to have a substantial interest is not satisfied, such other contracting party shall be free, not later than six months after action under such agreement is taken, to withdraw, upon the expiration of thirty days from the day on which written notice of such withdrawal is received by the CONTRACTING PARTIES, substantially equivalent concessions initially negotiated with the applicant contracting party.
4. The CONTRACTING PARTIES may, at any time, in special circums