the construction of the apec list john deng deputy permanent representative the separate customs...
TRANSCRIPT
The construction of the APEC list
John Deng
Deputy Permanent Representative
The Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu
Outline Mandates to construct APEC list - Sectors nominated for EVSL
EVSL results APEC environmental goods list
- Aims
- Approach
- Comparison between APEC and OECD lists
Lessons learned from the APEC list
Mandates to construct APEC list 1995 (Osaka, Japan): Call by Leaders to identify industries for tariff reduction
1996 (Subic Bay, Philippines): Trade Ministers directed to submit recommendations
1997 May (Montreal, Canada): Trade Ministers directed to identify candidate sectors for EVSL;
Environmental goods proposed as distinct category by 4 economies
1997 November (Vancouver, Canada): Environmental goods identified as 1st tier fast-track sector
Sectors nominated for EVSL
“A+” (Fast-Track sectors): Environmental goods and services, fish and fish produ
cts, forest products, medical equipment and instruments, energy, toys, gems and jewellery, chemicals, and a telecommunications mutual-recognition agreement. (9 sectors)
“A” sectors: Oilseeds and oilseed products, food, rubber, fertilizers,
automotive and civil aircraft. (6 sectors)
EVSL results 1998 June (Kuching and Kuantan, Malaysia): consolidated environmental goods list finalized
1998 November (Kuala Lumpur, Malaysia): Resultant proposal: a comprehensive package including u
ndertakings on four elements
- Tariffs - Services - Non-tariff measures - Economic and technical co-operation (Ecotech)
EVSL tariff proposal referred to WTO
APEC environmental goods list• Aims
• Approach
• Comparison between APEC and OECD lists
Aims of APEC list
Obtain more favourable tariff treatment for environmental goods
Promote sustainable economic growth
APEC approach
Started with nominations
Compiled list of goods
Experts discussion to determine product coverage and tariff classification
Benefits to include environmental sector in EVSL:
Dual benefits being sought
- Economic benefits
- Environmental benefits
Participation of developing countries
APEC approach
Economic benefits:
APEC approach
Importing members can acquire environmental goods and technologies at lower cost
Both developing and developed exporting countries can enjoy expanded market opportunity
Environmental benefits:
APEC approach
Improving the effectiveness of environmental investment programmes undertaken by business and government
Direct quality of life benefits
APEC approach
• 10 categories: APC = Air Pollution Control
H/E = Heat/Energy ManagementM/A= Monitoring/AnalysisN/V = Noise/vibration abatementORS = Other Recycling Systems PWT = Potable Water TreatmentR/C = Remediation/cleanupS/H = Solid/Hazardous Waste WWM = Waste Water ManagementREP = Renewable Energy Plant
APEC approach
Challenges:Classification
Can product distinctions be practically implemented by customs officials?
Dual useParts & Components WTO legal issues
APEC approach
Classification issues (1)
End-use certificate method was not adopted
Goods designated as environmental on the basis of their PPMs were not included
APEC approachClassification issues (2):
Many HS headings contain more than just
environmental goodsFew HS headings are comprised uniquely of
goods that could be considered part of the environmental industry
Consideration was based both upon the prevalence and importance of the environmental goods in a given tariff heading
Core environmental products at the 6-digit HS category
APEC approach
Classification issues (3) National HS tariff lines are not uniform
below 6-digit levelA product was included with a detailed
break-outs in their own tariff scheduleExample: solar cells
APEC approach
• Solutions:
– Practical approach
– Bottom-upBottom-up
– ““Ex-out” headingEx-out” heading
APEC approach
• Other points:
– Chemicals excluded
– Medical equipment and instruments + energy sectors also excluded, but there are overlaps
Comparison between APEC and OECD listsComparison between APEC and OECD lists
Reasons for the lack of overlap:• Some goods on APEC list assigned to different
categories on OECD list• Difference of emphasis• In several cases, APEC list provides greater
specificity
Lessons learned from APEC listLessons learned from APEC list
1. EVSL negotiation failed on:
- Tariff elements
- Forest and Fisheries sectors
2. Broad coverage and sector segmentation of EVSL enabled APEC to focus on environmental goods listing
3. APEC list limited only to goods readily distinguished by customs agents and treated differently for tariff purposes
4. APEC approach is practical
Lessons learned from APEC listLessons learned from APEC list
5. Negotiators may have to consider how to treat goods that have “dual uses”, but if there’s a will to include goods within these categories, there’s usually a way.