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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.
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2. With respect to the coverage of this Agreement, see the
Annex in
Section XI.
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3. AIR/1; AIR/TSC/W/49; AIR/67.
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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.
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5. AIR/M/10, BISD 30S/24.
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6. AIR/M/10, para. 15.
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7. AIR/M/10, para. 24.
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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.
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9. AIR/41; see also Secretariat Note in AIR/W/33.
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10. BISC 27S/25.
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11. BISD 30S/4 (1983); 31S/4 (1984).
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12. AIR/45, BISD 30S/281.
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13. BISD 31S/5.
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14. BISD 34S/216.
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15. BISD 34S/22–24.
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16. TCA/4.
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17. TCA/M/13, paras. 11–20.
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18. TCA/7.
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19. TCA/M/13, paras. 11–17.
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20. TCA/6.
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21. TCA/M/5,
TCA/M/7,
TCA/M/9,
TCA/M/10,
TCA/M/13,
TCA/M/18,
TCA/M/19.
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22. TCA/M/13,
TCA/M/19.
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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.
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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.
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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).
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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.
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27. BISD 31S/5.
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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.
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29. AIR/M/1, paras. 36–40.
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30. AIR/M/1, para. 38; AIR/3.
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31. AIR/M/32, para. 35. See also AIR/M/34, paras. 6–11.
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32. TCA/1. See also
TCA/M/4, paras. 18–25.
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33. See AIR/W/80, AIR/W/81, AIR/W/82,AIR/W/84, AIR/W/85, AIR/M/29,
AIR/M/30.
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34. The last WTO Member to have become a signatory to this Agreement
was Albania in June 2008.
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35. AIR/65.
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36. TCA/4.
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37. AIR/M/1, para. 44.
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38. AIR/61 and Rev.1
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39. AIR/M/18, para. 6.
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40. “Authentic Text in Spanish — Decision of 25 March 1987,
AIR/63.
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