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UNDERSTANDING ONTHE INTERPRETATION OFARTICLE II:1(b)
OFTHE GENERAL AGREEMENT ONTARIFFS AND TRADE 1994
Members hereby agree asfollows:
1. Inorder toensure transparency ofthelegalrights andobligations deriving fromparagraph 1(b)
ofArticle II,thenature andlevel ofany"other duties orcharges" levied onbound tariff items, as
referred tointhatprovision, shallberecorded intheSchedules ofconcessions annexed toGATT 1994
against thetariff itemtowhich theyapply. Itisunderstood thatsuchrecording doesnotchange the
legalcharacter of"other duties orcharges".
2. Thedateasofwhich "other duties orcharges" arebound, forthepurposes ofArticle II,shall
be15April 1994. "Other duties orcharges" shalltherefore berecorded intheSchedules atthelevels
applying onthisdate. Ateachsubsequent renegotiation ofaconcession ornegotiation ofanew
concession theapplicable dateforthetariffiteminquestion shallbecome thedateoftheincorporation
ofthenewconcession intheappropriate Schedule. However, thedateoftheinstrument bywhich
aconcession onanyparticular tariffitemwasfirstincorporated intoGATT 1947orGATT 1994shall
alsocontinue toberecorded incolumn 6oftheLoose-Leaf Schedules.
3. "Other duties orcharges" shallberecorded inrespect ofalltariff bindings.
4. Where atariff itemhaspreviously beenthesubject ofaconcession, thelevelof"other duties
orcharges" recorded intheappropriate Schedule shallnotbehigher thanthelevel obtaining atthe
timeofthefirstincorporation oftheconcession inthatSchedule. ItwillbeopentoanyMember to
challenge theexistence ofan"other dutyorcharge", ontheground thatnosuch"other dutyorcharge"
existed atthetimeoftheoriginal binding oftheiteminquestion, aswellastheconsistency ofthe
recorded levelofany"other dutyorcharge" withthepreviously bound level, foraperiod ofthree
years afterthedateofentry intoforce oftheWTO Agreement orthree years afterthedateofdeposit
withtheDirector-General oftheWTO oftheinstrument incorporating theSchedule inquestion into
GATT 1994, ifthatisalaterdate.
5. Therecording of"other duties orcharges" intheSchedules iswithout prejudice totheir
consistency withrights andobligations under GATT 1994 other thanthose affected byparagraph 4.
AllMembers retain therighttochallenge, atanytime, theconsistency ofany"other dutyorcharge"
withsuchobligations.
6. ForthepurposesofthisUnderstanding,theprovisionsofArticlesXXIIandXXIIIofGATT1994
aselaborated andapplied bytheDispute Settlement Understanding shallapply.
7. "Other duties orcharges" omitted from aSchedule atthetimeofdeposit oftheinstrument
incorporating theSchedule inquestion intoGATT 1994 with, untilthedateofentry intoforce ofthe
WTOAgreement,theDirector-GeneraltotheCONTRACTINGPARTIEStoGATT1947or,thereafter,
withtheDirector-General oftheWTO, shallnotsubsequently beadded toitandany"other dutyor
charge" recorded atalevellower thanthatprevailing ontheapplicable dateshallnotberestored to
thatlevelunless suchadditions orchanges aremade within sixmonths ofthedateofdeposit ofthe
instrument.
8. Thedecision inparagraph 2regarding thedateapplicable toeachconcession forthepurposes
ofparagraph 1(b)ofArticle IIofGATT 1994 supersedes thedecision regarding theapplicable date
taken on26March 1980 (BISD 27S/24).