1. What is market access? What kind of measures can prevent or limit market access?

- Market access is about getting the right treatment to the right patient at the right time, and
possibly even at the right price.
- The most common barriers to market access are customs duties, quantitative restrictions,
technical requirements, lack of transparency of national trade regulation, unfair application
of customs formalities and procedures.
2. How does the GATT 1994 regulate tariffs? Illustrate the WTO principles regarding
tariffs reduction?
- The contracting parties recognize that customs duties often constitute serious obstacles to
trade; thus negotiations on a reciprocal and mutually advantageous basis, directed to the
substantial reduction of the general level of tariffs and other charges on imports and
exports and in particular to the reduction of such high tariffs as discourage the importation
even of minimum quantities, and conducted with due regard to the objectives of this
Agreement and the varying needs of individual contracting parties, are of great importance
to the expansion of international trade. The CONTRACTING PARTIES may therefore
sponsor such negotiations from time to time.
- Negotiations under this Article may be carried out on a selective product-by-product basis
or by the application of such multilateral procedures as may be accepted by the contracting
parties concerned. Such negotiations may be directed towards the reduction of duties, the
binding of duties at then existing levels or undertakings that individual duties or the
average duties on specified categories of products shall not exceed specified levels. The
binding against increase of low duties or of duty-free treatment shall, in principle, be
recognized as a concession equivalent in value to the reduction of high duties.
- The contracting parties recognize that in general the success of multilateral negotiations
would depend on the participation of all contracting parties which conduct a substantial
proportion of their external trade with one another.
3. What is a Schedule of Concessions? What is the relationship between a Schedule of
Concessions and GATT 1994? What was Viet Nam’s market access commitment
regarding smartphones?
- WTO schedules of concessions, often referred to as “goods schedules”, are legal
instruments that form an integral part of the General Agreement on Tariffs and Trade
(GATT) and the WTO Agreement. These schedules describe the treatment a WTO member
must provide to traded goods of other WTO members.
- Schedule of Members are an integral part of GATT 1994 (Article II:7), including:
 + Part I: MFN concessions with respect to agricultural products and non-agricultural
products;
+ Part II: Preferential Concession;
+ Part III: Concession on non tariff measures;
+ Part IV: specific commitments on domestic support and export subsidies on
agricultural products.
- GATT 1994 provides a framework for the negotiation and implementation of trade
agreements, and it is based on the principles of non-discrimination, most-favored-nation
treatment, and the reduction of trade barriers. The Schedule of Concessions is an essential
component of GATT 1994 as it sets out the specific commitments made by each member
country to reduce and eliminate trade barriers in specific sectors and products.
- Viet Nam is a member of the World Trade Organization (WTO) and has made specific
commitments regarding market access for various goods and services, including
smartphones. According to Viet Nam's Schedule of Concessions, the country has
committed to gradually reduce its tariffs on smartphones over time.
As of January 2021, Viet Nam imposes a tariff rate of 10% on smartphones. However,
under its Schedule of Concessions, Viet Nam has committed to reducing the tariff to 0% by
January 1, 2022, for smartphones with a value not exceeding $500. For smartphones with a
value exceeding $500, the tariff rate will be reduced to 5% by January 1, 2022.
4. What are the elements to determine specific tariffs’ obligations (the amount of
money submittable to the government) of an imported good?
- Specific tariffs are computed on the physical quantity of the goods being imported, e.g.,
Australia's 2005 schedule includes a tariff of $1.22/kg on certain types of cheeses and the
United States charges $0.68 per live goat. The physical quantity may be expressed in ways
that are difficult to determine without laboratory equipment. The European Union charges
duties on certain dairy products based on the weight of lactic matter in the product, and the
United States charges a tariff on raw cane sugar that varies with the sucrose content of sugar:
1.4606 cents/kg less 0.020668 cents/kg for each degree under 100 degrees (and fractions of a
degree in proportion) but not less than 0.943854 cents/kg.
- Mixed tariffs are expressed as either a specific or an ad valorem rate, depending on which
generates the most (or sometimes least) revenue. For example, Indian duties on certain rayon
fabrics are either 15 percent ad valorem or Rs. 87 per square meter, whichever is higher.
- Compound tariffs include both ad valorem and a specific component. For example,
Pakistan charges Rs. 0.88 per liter of some petroleum products plus 25 percent ad valorem.
- Tariff rate quotas are made up of a low tariff rate on an initial increment of imports (the
within-quota quantity) and a very high tariff rate on imports entering above that initial
amount.
5. What is tariffs’ classification and how does WTO regulate this matter? What is an
HS Code, what organization published it and how was it published? Can WTO
members use HS Code to classify their tariffs? Why?
- Tariff Classification is the process of determining the correct tariff code for imported and
exported goods. Classification of goods is relevant from a customs point of view. It has an
impact on customs duties, excise duties, import VAT, origin management, preferential
duties and import and export restrictions.
- The GATT contains no rules regarding tariff classifications. In the past, countries had
their own individual systems. However, as trade expanded, countries recognized the need
for more uniform classifications, which resulted in the drafting in 1988 of the “Harmonized
Commodity Description and Coding System” or “HS” system. Today, most countries use a
harmonized system of six-digit tariff numbers.
- The Harmonized System is a standardized numerical method of classifying traded
products. It is used by customs authorities around the world to iden.
- The HS is administered by the World Customs Organization (WCO) and is updated
every five years. It serves as the foundation for the import and export classification systems
used in the United States and by many trading partners.
- The HS assigns specific six-digit codes for varying classifications and commodities.
Countries are allowed to add longer codes to the first six digits for further classification.
- The United States uses a 10-digit code to classify products for export, known as a
Schedule B number, with the first six digits being the HS number. There is a Schedule B
number for every physical product, from paper clips to airplanes. Schedule B is
administered by the U.S. Census Bureau’s Foreign Trade Division.
- The HS has played a critical role in allowing WTO Members to define the product
coverage or scope of certain agreements and has facilitated the conduct of negotiations on
tariffs and rules of origin.
- WTO Members have used the HS to define the product coverage of certain agreements,
including multilateral agreements (e.g. the Agreement on Agriculture) and plurilateral
sectoral initiatives.
6. Why do customs officers have to determine the value of imported goods? What is
the most relevant and common method to determine the customs value of imported
goods?
- The customs value is essential to determine the duty to be paid on an imported good.
- Method 1 — Transaction value: The price actually paid or payable is the total payment
made or to be made by the buyer to or for the benefit of the seller for the imported goods,
and includes all payments made as a condition of sale of the imported goods by the buyer
to the seller, or by the buyer to a third party to satisfy an obligation of the seller.
- Method 2 — Transaction value of identical goods (Article 2): The transaction value is
calculated in the same manner on identical goods if the goods are: the same in all respects
including physical characteristics, quality, and reputation;produced in the same country as
the goods being valued; and produced by the producer of the goods being valued. For this
method to be used, the goods must be sold for export to the same country of importation as
the goods being valued. The goods must also be exported at or about the same time as the
goods being valued.
- Method 3 — Transaction value of similar goods: goods closely resembling the goods
being valued in terms of component materials and characteristics, goods which are capable
of performing the same functions and are commercially interchangeable with the goods
being valued, goods which are produced in the same country as and by the producer of the
goods being valued. For this method to be used, the goods must be sold to the same country
of importation as the goods being valued. The goods must be exported at or about the same
time as the goods being valued.
- Method 4 — Deductive value: The Agreement provides that when customs value cannot
be determined on the basis of the transaction value of the imported goods or identical or
similar goods, it will be determined on the basis of the unit price at which the imported
goods or identical or similar goods are sold to an unrelated buyer in the greatest aggregate
quantity in the country of importation. The buyer and the seller in the importing country
must not be related and the sale must take place at or about the time of importation of the
goods being valued. If no sale took place at or about the time of importation, it is permitted
to use sales up to 90 days after importation of the goods being valued.
- Method 5 — Computed value: Production cost and profits and expenses
- Method 6 — Fall-back method: Customs value determination based on “reasonable
means consistent with the principles and general provisions of the Agreement, Article VII
GATT and on the basis of available data”.
7. What is the Rule of Origin? How does the WTO regulate this Rule? Distinguish
between wholly-obtained Rule of Origin and not wholly-obtained Rule of Origin.
- Rules of origin are the criteria needed to determine the national source of a product. Their
importance is derived from the fact that duties and restrictions in several cases depend
upon the source of imports.
- Agreement on Rules of Origin makes a distinction between (1) non-preferential rules of
origin; and (2) preferential rules of origin;
- The agreement provides a work program to harmonize non-preferential rules of origin.
However, Members failed to meet the deadline in 1998.
- Distinguish between wholly-obtained Rule of Origin and not wholly-obtained Rule of
Origin:
+ Wholly-obtained ROO: Wholly-obtained ROO applies to products that are entirely
produced or obtained within a particular country. In other words, the product must
be entirely grown, extracted, or harvested in the country, or a product that is made
entirely from materials that are sourced within the country. Such products are
considered to have a high degree of economic integration with the producing
country and, therefore, qualify for preferential treatment. Examples of wholly-
obtained products include agricultural produce grown in a particular country,
minerals and other natural resources extracted within a country, and live animals
born and raised within a country.
+ Not wholly-obtained ROO: Not wholly-obtained ROO applies to products that are
not entirely produced or obtained within a particular country. In other words, the
product must have undergone some form of processing or manufacturing in the
country of export. These products are considered to have a lower degree of
economic integration with the producing country and, therefore, must meet more
stringent ROO criteria. Examples of not wholly-obtained products include
manufactured goods that are assembled in a particular country but whose
components are sourced from different countries, and products that have undergone
some form of processing, such as refining or milling, within a particular country.
In conclusion, the difference between wholly-obtained and not wholly-obtained
ROO lies in the degree of economic integration between the producing country and
the product. While wholly-obtained products are entirely produced in a particular
country, not wholly-obtained products have undergone some processing or
manufacturing in the country of export.
 8. What are Quotas, How does the WTO regulate these measures?
- A quota is a government-imposed trade restriction that limits the number or monetary
value of goods that a country can import or export during a particular period.
- No prohibitions or restrictions other than duties, taxes or other charges, whether made
effective through quotas, import or export licenses 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.
9. Summary the case law EC - Chicken Cut (2005), Appellate Body Report at the
issues concerning "Salted" in Heading 02.10 of the EC Schedule.
- CASE: EU – Chicken Cut (2005)
- Complainant: Brazil, Thailand
- Respondent: EU
- Product: frozen salted chicken cuts 1-2%.
- Descriptions of goods:
+ Boneless chicken cut, frozen and impregnated with salt in all parts. They have a salt
content by weight of 1.2% to 1.9%. The product is deep-frozen and has to be stored at a
temperature of lower than -18 celsius degree to ensure a shelf life of at least one year.
+ Reasons: the product is chicken meat frozen for long - term conservation. The addition
of salt does not alter the character of the product as frozen meat of heading 0207.