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WTO ANALYTICAL INDEX: AGREEMENT ON TRADE IN CIVIL AIRCRAFT

Agreement on Trade in Civil Aircraft

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The texts reproduced here do not have the legal standing of the original documents which are entrusted and kept at the WTO Secretariat in Geneva.

> General
> Preamble
> Article 1
> Article 2
> Article 3
> Article 4
> Article 5
> Article 6
> Article 7
> Article 8
> Article 9
> Annex

 

> Analytical Index main page


I. General     back to top

A. Before 1995

1.     The Aircraft Agreement was concluded on 12 April 1979 at the end of the Tokyo Round. It entered into force on 1 January 1980.(1) The Agreement consists of tariff provisions requiring bound duty-free treatment for products listed in an Annex; provisions addressing non-tariff barriers to trade in civil aircraft; and institutional and final provisions. The Agreement is administered by the Committee on Trade in Civil Aircraft.

2.     During the 1980s, the Committee agreed on expansion of the Annex’s product scope and on its transposition into the Harmonized System nomenclature. A Protocol amended the Agreement to replace the original Annex, effective 1 January 1988.

3.     The Agreement was not included within the subjects for negotiation in the Uruguay Round. In 1993–94, there were efforts to seek agreement on a replacement text for the Agreement, or on rectifications to its existing text, so that the Agreement would be aligned with the WTO institutional and dispute settlement framework. These efforts were unsuccessful. The 1979 Aircraft Agreement was included in Annex 4 of the WTO Agreement in its state as at 15 April 1994. The WTO Dispute Settlement Understanding does not apply to claims brought under the dispute settlement provisions of the Agreement; see paragraph 29 below.


B. Activities Under the WTO

4.     Since 1995, the Committee has been active in maintaining the Agreement’s tariff provisions. The Protocol (2001) Amending the Annex to the Agreement on Trade in Civil Aircraft replaced the Annex with a new Annex which aligned its tariff nomenclature with the HS2002 nomenclature and expanded the Agreement’s product coverage. A further Protocol revising the Annex to implement the HS2007 nomenclature was in preparation in 2009–2011. The Committee has also provided a forum for work by the signatories on other barriers to trade in civil aircraft.

5.     Efforts to seek agreement on rectifications to align the Agreement with the WTO institutional and dispute settlement framework continued during 1995–2000 without success.

6.     As of 30 September 2011, there were 31 signatories to the Agreement, seven of which accepted the Agreement after the entry into force of the WTO Agreement; see paragraph 30 below.


C. WTO Disputes Relating to Civil Aircraft

7.     Government support to manufacturers of civil aircraft has been the subject of a number of WTO dispute settlement proceedings. All such disputes involved claims based on the SCM Agreement, not the Aircraft Agreement. See the discussion under Article 6 below.

 

II. Preamble     back to top

A. Text of the Preamble

Signatories(1) to the Agreement on Trade in Civil Aircraft, hereinafter referred to as “this Agreement”;

 

(footnote original) (1) The term “Signatories” is hereinafter used to mean Parties to this Agreement.

 

Noting that Ministers on 12–14 September 1973 agreed the Tokyo Round of Multilateral Trade Negotiations should achieve the expansion and ever-greater liberalization of world trade through, inter alia, the progressive dismantling of obstacles to trade and the improvement of the international framework for the conduct of world trade;

 

Desiring to achieve maximum freedom of world trade in civil aircraft, parts and related equipment, including elimination of duties, and to the fullest extent possible, the reduction or elimination of trade restricting or distorting effects;

 

Desiring to encourage the continued technological development of the aeronautical industry on a world-wide basis;

 

Desiring to provide fair and equal competitive opportunities for their civil aircraft activities and for their producers to participate in the expansion of the world civil aircraft market;

 

Being mindful of the importance in the civil aircraft sector of their overall mutual economic and trade interests;

 

Recognizing that many Signatories view the aircraft sector as a particularly important component of economic and industrial policy;

 

Seeking to eliminate adverse effects on trade in civil aircraft resulting from governmental support in civil aircraft development, production, and marketing while recognizing that such governmental support, of itself, would not be deemed a distortion of trade;

 

Desiring that their civil aircraft activities operate on a commercially competitive basis, and recognizing that government-industry relationships differ widely among them;

 

Recognizing their obligations and rights under the General Agreement on Tariffs and Trade, hereinafter referred to as “the GATT”, and under other multilateral agreements negotiated under the auspices of the GATT;

 

Recognizing the need to provide for international notification, consultation, surveillance and dispute settlement procedures with a view to ensuring a fair, prompt and effective enforcement of the provisions of this Agreement and to maintain the balance of rights and obligations among them;

 

Desiring to establish an international framework governing conduct of trade in civil aircraft;

 

Hereby agree as follows:


B. Interpretation and Application of the Preamble

No jurisprudence or decision of a competent WTO body.

 

III. Article 1     back to top

A. Text of Article 1

Article 1: Product Coverage

1.1     This Agreement applies to the following products:

 

(a)     all civil aircraft,
(b)     all civil aircraft engines and their parts and components,
(c)     all other parts, components, and subassemblies of civil aircraft,
(d)     all ground flight simulators and their parts and components,

 

whether used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification or conversion of civil aircraft. (2)

 

1.2     For the purposes of this Agreement “civil aircraft” means (a) all aircraft other than military aircraft and (b) all other products set out in Article 1.1 above.


B. Interpretation and Application of Article 1

1. Article 1.2

8.     The signatories have notified their domestic entities operating military aircraft, and their domestic definitions of “civil aircraft” and “military aircraft”.(3)

9.     At its meeting of 30 November 1998, the Committee decided that the factual information regarding civil/military identification for domestic customs purposes contained in AIR/TSC/W/49 should be updated.(4)

 

IV. Article 2     back to top

A. Text of Article 2

Article 2: Customs Duties and Other Charges

2.1     Signatories agree:

 

2.1.1     to eliminate by 1 January 1980, or by the date of entry into force of this Agreement, all customs duties and other charges(1) of any kind levied on, or in connection with, the importation of products, classified for customs purposes under their respective tariff headings listed in the Annex, if such products are for use in a civil aircraft and incorporation therein, in the course of its manufacture, repair, maintenance, rebuilding, modification or conversion;

 

(footnote original) (1) “Other charges” shall have the same meaning as in Article II of the GATT.

 

2.1.2     to eliminate by 1 January 1980, or by the date of entry into force of this Agreement, all customs duties and other charges(1) of any kind levied on repairs on civil aircraft;

 

(footnote original) (1) “Other charges” shall have the same meaning as in Article II of the GATT

 

2.1.3     to incorporate in their respective GATT Schedules by 1 January 1980, or by the date of entry into force of this Agreement, duty-free or duty-exempt treatment for all products covered by Article 2.1.1 above and for all repairs covered by Article 2.1.2 above.

 

2.2     Each Signatory shall: (a) adopt or adapt an end-use system of customs administration to give effect to its obligations under Article 2.1 above; (b) ensure that its end-use system provides duty-free or duty-exempt treatment that is comparable to the treatment provided by other Signatories and is not an impediment to trade; and (c) inform other Signatories of its procedures for administering the end-use system.


B. Interpretation and Application of Article 2

1.     Elimination of customs duties and other charges on repairs

10.     On 8 March 1983, the Committee adopted an “Agreed Interpretation of Article 2.1.2 of the Agreement on Trade in Civil Aircraft”,(5) which states that:

Article 2.1.2 of the Agreement on Trade in Civil Aircraft, which provides for the elimination of ’all customs duties and other charges of any kind levied on repairs on civil aircraft’, applies only to repairs of complete civil aircraft and those civil aircraft products which are classified for customs purposes under their respective tariff headings listed in the Annex to the Aircraft Agreement.”(6)

11.     Also on 8 March 1983, the Committee agreed that every signatory would bind its duties on repairs according to Article 2.1.3 of the Agreement, and that the following text should be considered as a common guideline for binding or duties on repairs, to be inserted as a Headnote in signatories’ respective GATT Schedules. Any signatory requiring additional language would be free to include it, provided the obligation under Article 2.1.3 was fulfilled.

“Duty free or duty exempt treatment is provided for all repairs on civil aircraft in accordance with Article 2.1.2 of the Agreement on Trade in Civil Aircraft (the term ’repairs’ includes maintenance, rebuilding, modification and conversion).”(7)

2.     End-use systems

12.     The signatories to the Agreement have notified their end-use systems of customs administration, which accord duty-free treatment for dual-use products if the importer certifies that the goods are for use in a civil aircraft and incorporation therein, in the course of its manufacture, repair, maintenance, rebuilding, modification or conversion.(8)

3.     Annex to the Agreement

13.     On 7 October 1982, the Committee adopted procedures for modifications and rectifications to the Annex(9), adapting the Procedures for Modification and Rectification of Schedules adopted by the GATT Council on 26 March 1980.(10) There were two certifications of modifications or rectifications in 1983–84.(11)

14.     On 22 March 1984, the Committee adopted a decision to the effect that the text attached to its Decision would be a consolidated Annex to the Agreement, incorporating 32 new categories of products as agreed by the Committee on 6 October 1983.(12) This package was implemented through the Third Certification of Modifications and Rectifications to the Annex, certified effective 1 January 1985.(13)

15.     In 1983–1985, work took place on aligning the tariff coverage in the Annex with the Harmonized System tariff nomenclature. On 2 December 1986, the Committee adopted the Protocol (1986) Amending the Agreement on Trade in Civil Aircraft and opened it for signature.(14) The Protocol (1986) replaced the Annex as established by the Decision of 22 March 1984 and the Third Certification; its date of entry into force was 1 January 1988, or the date of entry into force of the Harmonized System Convention, whichever was later.(15)

16.     On 21 November 2001, the Committee adopted the Protocol (2001) Amending the Agreement on Trade in Civil Aircraft(16) and opened it for acceptance with an indefinite deadline for acceptance. The Protocol’s date of entry into force was 1 January 2002, to coincide with the entry into force of the 2002 changes to the Harmonized System nomenclature.(17) This Protocol again replaced the Annex with a new text incorporating the HS 1992, 1996 and 2002 nomenclature updates, and extending the product coverage of the Agreement. Paragraph 6 of the 2001 Protocol provides as follows:

“This Protocol deals only with customs duties and charges under Article 2 of the Agreement. Except with respect to requiring duty-free treatment for products covered by this Protocol, nothing in this Protocol or the Agreement, as modified thereby, changes or affects a Signatory’s rights and obligations, as they exist on the day prior to the entry into force of this Protocol, under any of the WTO Agreements referenced in Article II of the Marrakesh Agreement Establishing the World Trade Organization.”

17.     Also on 21 November 2001, the Committee agreed to extend the deadline for acceptance of the Protocol indefinitely.(18) As of 30 September 2011, four Signatories had formally notified their acceptance of the Protocol (2001) to the WTO Secretariat.

18.     Also on 21 November 2001, the Committee adopted a Decision on Aircraft Ground Maintenance Simulators. The Chairman stated his understanding that the Protocol (2001) and the Decision were adopted concurrently, with effect from 6 June 2001.(19)

“The Committee recommends that Signatories will apply, as decided during the meeting of 15 November 2000, on an interim basis, duty-free treatment for aircraft ground maintenance simulators classified under HS 9023.00. Signatories shall confirm with the Committee their interim application.”(20)

19.     In 2009–2011, work went forward in the Committee on a draft text further updating the Annex to reflect HS2007 tariff nomenclature changes.

 

V. Article 3     back to top

A. Text of Article 3

Article 3: Technical Barriers to Trade

3.1     Signatories note that the provisions of the Agreement on Technical Barriers to Trade apply to trade in civil aircraft. In addition, Signatories agree that civil aircraft certification requirements and specifications on operating and maintenance procedures shall be governed, as between Signatories, by the Provisions of the Agreement on Technical Barriers to Trade.


B. Interpretation and Application of Article 3

20.     The Committee has discussed matters under Article 3 from time to time, for instance at its meetings of 30 November 1998, 17 December 1999, 14 June 2000 and 21 November 2001.(21)

 

VI. Article 4     back to top

A. Text of Article 4

Article 4: Government-Directed Procurement, Mandatory Sub-Contracts and Inducements

4.1     Purchasers of civil aircraft should be free to select suppliers on the basis of commercial and technological factors.

 

4.2     Signatories shall not require airlines, aircraft manufacturers, or other entities engaged in the purchase of civil aircraft, nor exert unreasonable pressure on them, to procure civil aircraft from any particular source, which would create discrimination against suppliers from any Signatory.

 

4.3     Signatories agree that the purchase of products covered by this Agreement should be made only on a competitive price, quality and delivery basis. In conjunction with the approval or awarding of procurement contracts for products covered by this Agreement a Signatory may, however, require that its qualified firms be provided with access to business opportunities on a competitive basis and on terms no less favourable than those available to the qualified firms of other Signatories.(1)

 

(footnote original) 1 Use of the phrase “access to business opportunities … on terms no less favourable …” does not mean that the amount of contracts awarded to the qualified firms of one Signatory entitles the qualified firms of other Signatories to contracts of a similar amount.

 

4.4     Signatories agree to avoid attaching inducements of any kind to the sale or purchase of civil aircraft from any particular source which would create discrimination against suppliers from any Signatory.


B. Interpretation and Application of Article 4

21.     The Committee has discussed matters under Article 4 from time to time, for instance at its meetings of 21 November 2001, 12 November 2003 and 9 June 2004.(22)

 

VII. Article 5     back to top

A. Text of Article 5

Article 5: Trade Restrictions

5.1     Signatories shall not apply quantitative restrictions (import quotas) or import licensing requirements to restrict imports of civil aircraft in a manner inconsistent with applicable provisions of the GATT. This does not preclude import monitoring or licensing systems consistent with the GATT.

 

5.2     Signatories shall not apply quantitative restrictions or export licensing or other similar requirements to restrict, for commercial or competitive reasons, exports of civil aircraft to other Signatories in a manner inconsistent with applicable provisions of the GATT.


B. Interpretation and Application of Article 5

No jurisprudence or decision of a competent WTO body.

 

VIII. Article 6     back to top

A. Text of Article 6

Article 6: Government Support, Export Credits, and Aircraft Marketing

6.1     Signatories note that the provisions of the Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade (Agreement on Subsidies and Countervailing Measures) apply to trade in civil aircraft. They affirm that in their participation in, or support of, civil aircraft programmes they shall seek to avoid adverse effects on trade in civil aircraft in the sense of Articles 8.3 and 8.4 of the Agreement on Subsidies and Countervailing Measures. They also shall take into account the special factors which apply in the aircraft sector, in particular the widespread governmental support in this area, their international economic interests, and the desire of producers of all Signatories to participate in the expansion of the world civil aircraft market.

 

6.2     Signatories agree that pricing of civil aircraft should be based on a reasonable expectation of recoupment of all costs, including non-recurring programme costs, identifiable and pro-rated costs of military research and development on aircraft, components, and systems that are subsequently applied to the production of such civil aircraft, average production costs, and financial costs.


B. Interpretation and Application of Article 6

1. Application of the SCM Agreement to civil aircraft

22.     Government support to manufacturers of civil aircraft has been the subject of a number of WTO dispute settlement proceedings. All disputes involved claims based on the SCM Agreement, not the Aircraft Agreement.

23.     In the Brazil — Aircraft and Canada — Aircraft disputes, Canada and Brazil brought dispute settlement proceedings against one another regarding subsidies provided by each to their respective manufacturers of civil aircraft.(23) In both disputes, the claims were made under Article 3 of the SCM Agreement.

24.     In the EC and certain member States — Large Civil Aircraft and US — Large Civil Aircraft (2nd Complaint) disputes, the United States and the European Communities initiated dispute settlement proceedings against one another regarding subsidies provided by each to their respective manufacturers of civil aircraft.(24) In both disputes, the claims were made under Articles 3, 5 and 6 of the SCM Agreement.

 

IX. Article 7     back to top

A. Text of Article 7

Article 7: Regional and Local Governments

7.1     In addition to their other obligations under this Agreement, Signatories agree not to require or encourage, directly or indirectly, regional and local governments and authorities, non-governmental bodies, and other bodies to take action inconsistent with provisions of this Agreement.


B. Interpretation and Application of Article 7

No jurisprudence or decision of a competent WTO body.

 

X. Article 8     back to top

A. Text of Article 8

Article 8: Surveillance, Review, Consultation, and Dispute Settlement

8.1     There shall be established a Committee on Trade in Civil Aircraft (hereinafter referred to as “the Committee”) composed of representatives of all Signatories. The Committee shall elect its own Chairman. It shall meet as necessary, but not less than once a year, for the purpose of affording Signatories the opportunity to consult on any matters relating to the operation of this Agreement, including developments in the civil aircraft industry, to determine whether amendments are required to ensure continuance of free and undistorted trade, to examine any matter for which it has not been possible to find a satisfactory solution through bilateral consultations, and to carry out such responsibilities as are assigned to it under this Agreement, or by the Signatories.

 

8.2     The Committee shall review annually the implementation and operation of this Agreement taking into account the objectives thereof. The Committee shall annually inform the CONTRACTING PARTIES to the GATT of developments during the period covered by such review.

 

8.3     Not later than the end of the third year from the entry into force of this Agreement and periodically thereafter, Signatories shall undertake further negotiations, with a view to broadening and improving this Agreement on the basis of mutual reciprocity.

 

8.4     The Committee may establish such subsidiary bodies as may be appropriate to keep under regular review the application of this Agreement to ensure a continuing balance of mutual advantages. In particular, it shall establish an appropriate subsidiary body in order to ensure a continuing balance of mutual advantages, reciprocity and equivalent results with regard to the implementation of the provisions of Article 2 above related to product coverage, the end-use systems, customs duties and other charges.

 

8.5     Each Signatory shall afford sympathetic consideration to and adequate opportunity for prompt consultation regarding representations made by another Signatory with respect to any matter affecting the operation of this Agreement.

 

8.6     Signatories recognize the desirability of consultations with other Signatories in the Committee in order to seek a mutually acceptable solution prior to the initiation of an investigation to determine the existence, degree and effect of any alleged subsidy. In those exceptional circumstances in which no consultations occur before such domestic procedures are initiated, Signatories shall notify the Committee immediately of initiation of such procedures and enter into simultaneous consultations to seek a mutually agreed solution that would obviate the need for countervailing measures.

 

8.7     Should a Signatory consider that its trade interests in civil aircraft manufacture, repair, maintenance, rebuilding, modification or conversion have been or are likely to be adversely affected by any action by another Signatory, it may request review of the matter by the Committee. Upon such a request, the Committee shall convene within thirty days and shall review the matter as quickly as possible with a view to resolving the issues involved as promptly as possible and in particular prior to final resolution of these issues elsewhere. In this connection the Committee may issue such rulings or recommendations as may be appropriate. Such review shall be without prejudice to the rights of Signatories under the GATT or under instruments multilaterally negotiated under the auspices of the GATT, as they affect trade in civil aircraft. For the purposes of aiding consideration of the issues involved, under the GATT and such instruments, the Committee may provide such technical assistance as may be appropriate.

 

8.8     Signatories agree that, with respect to any dispute related to a matter covered by this Agreement, but not covered by other instruments multilaterally negotiated under the auspices of the GATT, the provisions of Articles XXII and XXIII of the General Agreement and the provisions of the Understanding related to Notification, Consultation, Dispute Settlement and Surveillance shall be applied, mutatis mutandis, by the Signatories and the Committee for the purposes of seeking settlement of such dispute. These procedures shall also be applied for the settlement of any dispute related to a matter covered by this Agreement and by another instrument multilaterally negotiated under the auspices of the GATT, should the parties to the dispute so agree.


B. Interpretation and Application of Article 8

1. Committee on Trade in Civil Aircraft

25.     The Committee on Trade in Civil Aircraft reviews annually the implementation of the Aircraft Agreement pursuant to Article 8.2 and submits an annual report to the General Council pursuant to Article IV.8 of the WTO Agreement.(25) From 1980 through 1995, the Committee submitted its annual reports to the GATT Council.(26)

2. Negotiations pursuant to Article 8.3

26.     In July 1982, the Committee began a process of examining proposals to broaden and improve the Agreement. Negotiations conducted under Article 8.3 led to a package extending the coverage of the Annex to the Agreement, which was implemented through the Third Certification of Modifications and Rectifications to the Annex, certified effective 1 January 1985.(27)

27.     On 16 July 1992, in response to a proposal by the European Communities and the United States, the Committee agreed to open negotiations under Article 8.3. The Committee agreed that these negotiations would be conducted in a Sub-committee of the Committee and would be open to signatories and to interested non-signatories.(28)

3. Subsidiary bodies

28.     At its meeting of 20 February 1980, the Aircraft Committee established a Technical Sub-Committee,(29) with the following terms of reference:

“1.     Pursuant to Article 8.4, to examine the implementation of the provisions of Article 2 related to product coverage, the end-use system, customs duties and other charges, including matters relating to aircraft tariff nomenclature, and to report to the Committee.

 

2.     In the light of the Preamble of the Agreement, to examine proposals for modifying the product coverage and to report thereon to the Committee”(30).

29.     At its meeting of 16 July 1992, the Aircraft Committee also established the Sub-Committee of the Committee on Trade in Civil Aircraft in which negotiations under Article 8.3 of the Agreement would be conducted.(31) The Sub-Committee has not met since its fourteenth meeting in November 1995.(32)

4. Dispute settlement

30.     The application of dispute settlement under the Agreement and its relation to dispute settlement under other agreements was discussed in March and April 1991.(33)

31.     The Agreement is listed as a “covered agreement” in Appendix 1 of the Dispute Settlement Understanding. Appendix 1 provides that “[t]he applicability of this Understanding to the Plurilateral Trade Agreements shall be subject to the adoption of a decision by the parties to each agreement setting out the terms for the application of the Understanding to the individual agreement, including any special or additional rules or procedures for inclusion in Appendix 2, as notified to the DSB.” In 1993 through 1997, on a number of occasions, the Committee discussed possible terms for rectification of the Agreement, including terms for application of the rules and procedures of the Dispute Settlement Understanding to disputes under the Agreement. As the Committee was unable to reach agreement on such a decision, as of 30 September 2011 the Dispute Settlement Understanding still did not apply to disputes brought under the Agreement on Trade in Civil Aircraft.

 

XI. Article 9     back to top

A. Text of Article 9

Article 9: Final Provisions

9.1     Acceptance and Accession

 

9.1.1     This Agreement shall be open for acceptance by signature or otherwise by governments contracting parties to the GATT and by the European Economic Community.

 

9.1.2     This Agreement shall be open for acceptance by signature or otherwise by governments having provisionally acceded to the GATT, on terms related to the effective application of rights and obligations under this Agreement, which take into account rights and obligations in the instruments providing for their provisional accession.

 

9.1.3     This Agreement shall be open to accession by any other government on terms, related to the effective application of rights and obligations under this Agreement, to be agreed between that government and the Signatories, by the deposit with the Director-General to the CONTRACTING PARTIES to the GATT of an instrument of accession which states the terms so agreed.

 

9.1.4     In regard to acceptance, the provisions of Article XXVI:5 (a) and (b) of the General Agreement would be applicable.

 

9.2     Reservations

 

9.2.1     Reservations may not be entered in respect of any of the provisions of this Agreement without the consent of the other Signatories.

 

9.3     Entry into Force

 

9.3.1     This Agreement shall enter into force on 1 January 1980 for the governments(1) which have accepted or acceded to it by that date. For each other government it shall enter into force on the thirtieth day following the date of its acceptance or accession to this Agreement.

 

(footnote original) (1) For the purpose of this Agreement, the term “government” is deemed to include the competent authorities of the European Economic Community.

 

9.4     National Legislation

 

9.4.1     Each government accepting or acceding to this Agreement shall ensure, not later than the date of entry into force of this Agreement for it, the conformity of its laws, regulations and administrative procedures with the provisions of this Agreement.

 

9.4.2     Each Signatory shall inform the Committee of any changes in its laws and regulations relevant to this Agreement and in the administration of such laws and regulations.

 

9.5     Amendments

 

9.5.1     The Signatories may amend this Agreement, having regard, inter alia, to the experience gained in its implementation. Such an amendment, once the Signatories have concurred in accordance with the procedures established by the Committee, shall not come into force for any Signatory until it has been accepted by such Signatory.

 

9.6     Withdrawal

 

9.6.1     Any Signatory may withdraw from this Agreement. The withdrawal shall take effect upon the expiration of twelve months from the day on which written notice of withdrawal is received by the Director-General to the CONTRACTING PARTIES to the GATT. Any Signatory may upon such notification request an immediate meeting of the Committee.

 

9.7     Non-Application of this Agreement Between Particular Signatories

 

9.7.1     This Agreement shall not apply as between any two Signatories if either of the Signatories, at the time either accepts or accedes to this Agreement, does not consent to such application.

 

9.8     Annex

 

9.8.1     The Annex to this Agreement forms an integral part thereof.

 

9.9     Secretariat

 

9.9.1     This Agreement shall be serviced by the GATT secretariat.

 

9.10     Deposit

 

9.10.1     This Agreement shall be deposited with the Director-General to the CONTRACTING PARTIES to the GATT who shall promptly furnish to each Signatory and each contracting party to the GATT a certified copy thereof and of each amendment thereto pursuant to Article 9.5 and a notification of each acceptance thereof or accession thereto pursuant to Article 9.1, or each withdrawal therefrom pursuant to Article 9.6.

 

9.11     Registration

 

9.11.1     This Agreement shall be registered in accordance with the provisions of Article 102 of the Charter of the United Nations. Done at Geneva this twelfth day of April nineteen hundred and seventy-nine in a single copy, in the English and French languages, each text being authentic, except as otherwise specified with respect to the various lists in the Annex.1


B. Interpretation and Application of Article 9

1. Acceptance and accession

32.     As of 30 September 2011, there were 31 Signatories to the Agreement: Albania, Canada, the European Union (the following 20 EU Member States are also Signatories to the Agreement on Trade in Civil Aircraft in their own right: Austria, Belgium, Bulgaria, Denmark, Estonia, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Romania, Spain, Sweden and the United Kingdom), Egypt, Georgia, Japan, Macau (China), Norway, Switzerland, Chinese Taipei and the United States.

33.     Seven of the signatories accepted the Agreement after entry into force of the WTO Agreement (Albania, Bulgaria, Georgia, Estonia, Latvia, Lithuania, Macau (China), Malta, Chinese Taipei).

34.     WTO Members with observer status in the Committee are: Argentina, Australia, Bangladesh, Brazil, Cameroon, China, Colombia, Gabon, Ghana, India, Indonesia, Israel, the Republic of Korea, Mauritius, Nigeria, Oman, Poland, the Kingdom of Saudi Arabia, Singapore, Sri Lanka, Trinidad and Tobago, Tunisia, Turkey and the Ukraine. In addition, the Russian Federation is an observer. The IMF and UNCTAD are also observers.(34)

2. Amendments

35.     The Agreement was amended for the first time by the Protocol (1986) Amending the Agreement on Trade in Civil Aircraft, done on 2 December 1986, which replaced the Annex.(35)

36.     The Agreement was amended for the second time by the Protocol (2001) Amending the Agreement on Trade in Civil Aircraft, done on 6 June 2001, which again replaced the Annex.(36)

3. Authentic texts

37.     At its first meeting, the Committee stated its willingness to authenticate a Spanish language text of the Agreement.(37) A Spanish language text of the Agreement was prepared in 1986, and the Committee agreed on 8 October 1986 that the Spanish-language text of the Agreement prepared by the Secretariat(38) was the correct translation of the Agreement.(39) On 25 March 1987, the Committee agreed that the Spanish language text of the Agreement shall also be considered authentic.(40)

 

XII. Annex     back to top

A. Text of the Annex

ANNEX: (as amended by the Protocol (2001) amending the Annexes to the Agreement on Trade in Civil Aircraft)

Product Coverage

1.     The product coverage is defined in Article 1 of the Agreement on Trade in Civil Aircraft.

 

2.     Signatories agree that products covered by the descriptions listed below and properly classified under the Harmonized System headings and subheadings shown alongside shall be accorded duty-free or duty-exempt treatment, if such products are for use in civil aircraft or ground flying trainers* and for incorporation therein, in the course of their manufacture, repair, maintenance, rebuilding, modification or conversion.

 

These products shall not include:

 

an incomplete or unfinished product, unless it has the essential character of a complete or finished part, component, sub-assembly or item of equipment of a civil aircraft or ground flying trainer*, (e.g. an article which has a civil aircraft manufacturer’s number),

 

materials in any form (e.g. sheets, plates, profile shapes, strips, bars, pipes, tubes or other shapes) unless they have been cut to size or shape and/or shaped for incorporation in civil aircraft or a ground flying trainer* (e.g. an article which has a civil aircraft manufacturer’s part number),

 

raw materials and consumable goods.

 

4.     For the purpose of this Annex, “Ex” has been included to indicate that the product description referred to does not exhaust the entire range of products within the Harmonized System headings and subheadings listed below.

 

(footnote original) * For the purpose of Article 1.1 of this Agreement “ground flight simulators” are to be regarded as ground flying trainers as provided for under 8805.20 of the Harmonized System.


B. Interpretation and Application of the Annex

38.     See above under Article 2, and at paragraphs 2, 24 and 33–34.

 

Footnotes:

1. BISD 26S/162–170. back to text
2. With respect to the coverage of this Agreement, see the Annex in Section XI. back to text
3. AIR/1; AIR/TSC/W/49; AIR/67. back to text
4. WT/L/291, para. 4. As of 15 November 2000, Bulgaria, Canada, the European Communities, Japan and the United States had provided the requisite information, TCA/M/11, para. 58. back to text
5. AIR/M/10, BISD 30S/24. back to text
6. AIR/M/10, para. 15. back to text
7. AIR/M/10, para. 24. back to text
8. See AIR/2 and Corr.1; AIR/11; AIR/18; AIR/19; AIR/21; AIR/47; AIR/59; AIR/60; TCA/W/4, TCA/M/13, TCA/M/18. back to text
9. AIR/41; see also Secretariat Note in AIR/W/33. back to text
10. BISC 27S/25. back to text
11. BISD 30S/4 (1983); 31S/4 (1984). back to text
12. AIR/45, BISD 30S/281. back to text
13. BISD 31S/5. back to text
14. BISD 34S/216. back to text
15. BISD 34S/22–24. back to text
16. TCA/4. back to text
17. TCA/M/13, paras. 11–20. back to text
18. TCA/7. back to text
19. TCA/M/13, paras. 11–17. back to text
20. TCA/6. back to text
21. TCA/M/5, TCA/M/7, TCA/M/9, TCA/M/10, TCA/M/13, TCA/M/18, TCA/M/19. back to text
22. TCA/M/13, TCA/M/19. back to text
23. As regards the cases brought by Canada, see Panel Report, Brazil — Aircraft, Appellate Body Report, Brazil — Aircraft, Panel Report, Brazil — Aircraft (Article 21.5 — Canada), Appellate Body Report, Brazil — Aircraft (Article 21.5 — Canada), and Panel Report, Brazil — Aircraft (Article 21.5 — Canada II). As regards the cases brought by Brazil, see Panel Report, Canada — Aircraft, Appellate Body Report, Canada — Aircraft, Panel Report, Canada — Aircraft (Article 21.5 — Brazil), Appellate Body Report, Canada — Aircraft (Article 21.5 — Brazil), Panel Report, Canada — Aircraft Credits and Guarantees. back to text
24. See Panel Reports in EC and certain member States — Large Civil Aircraft and US — Large Civil Aircraft (2nd Complaint), and the Appellate Body Report in EC and certain member States — Large Civil Aircraft. back to text
25. WT/L/107; WT/L/193; WT/L/247; WT/L/291; WT/L/340 and Corr.1); WT/L/374; WT/L/434; WT/L/500; WT/L/544 and Corr.1; WT/L/591; WT/L/629; WT/L/665; WT/L/701; WT/L/743; WT/L/773; WT/L/805. (See TCA/M/1, para. 20). back to text
26. BISD 27S/41, 28S/42, 29S/58, 30S/65, 31S/281, 32S/181, 33S/223, 34S/216, 35S/389, 36S/460, 37S/320, 38S/103, 39S/448, 40S/517, 41S/720, 42S/235. back to text
27. BISD 31S/5. back to text
28. AIR/M/32, paras. 25–40. Documents from these negotiations can be found in AIR/RN/1 through AIR/RN/12 and the records of the Sub-committee’s work are in AIR/70–79 and AIR/81–82. back to text
29. AIR/M/1, paras. 36–40. back to text
30. AIR/M/1, para. 38; AIR/3. back to text
31. AIR/M/32, para. 35. See also AIR/M/34, paras. 6–11. back to text
32. TCA/1. See also TCA/M/4, paras. 18–25. back to text
33. See AIR/W/80, AIR/W/81, AIR/W/82,AIR/W/84, AIR/W/85, AIR/M/29, AIR/M/30. back to text
34. The last WTO Member to have become a signatory to this Agreement was Albania in June 2008. back to text
35. AIR/65. back to text
36. TCA/4. back to text
37. AIR/M/1, para. 44. back to text
38. AIR/61 and Rev.1 back to text
39. AIR/M/18, para. 6. back to text
40. “Authentic Text in Spanish — Decision of 25 March 1987, AIR/63. back to text

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