THE TEXT OF THE GENERAL AGREEMENT ON TARIFFS AND …

1 THE TEXT OFTHE GENERALAGREEMENTON TARIFFSAND TRADEGENERAL AGREEMENTON TARIFFS AND TRADEText ofthe GENERAL AgreementGENEVA, JULY 1986 PREFACEThe GENERAL AGREEMENT on TARIFFS and trade came into force on 1 January 1948. This booklet contains the complete text of the GENERAL AGREEMENT together with all amendments which have become effectivesince its entry into force. The text is identical to that published, since 1969,as Volume IV in the series Basic Instruments and Selected Documents. Aguide to the legal sources of the provisions of the AGREEMENT is providedin an appendix. An Analytical Index, containing notes on the drafting,interpretation and application of the articles of the AGREEMENT has beenprepared and published by the secretariat. A second publication,complementary to this one, contains the text of the agreements reached asa result of the Tokyo Round of Multilateral trade Negotiations (1973-1979).

2 The GENERAL AGREEMENT is applied "provisionally" by all contractingparties. The original contracting parties, and also those former territoriesof Belgium, France, the Netherlands and the United Kingdom which, afterattaining independence, acceded to the GENERAL AGREEMENT under ArticleXXVI:5(c), apply the GATT under the Protocol of Provisional Application,the text of which is reproduced in this volume. Chile applies the GeneralAgreement under a Special Protocol of September 1948. The contractingparties which have acceded since 1948 apply the GENERAL Agreementunder their respective Protocols of the convenience of the reader, asterisks mark the portions of thetext which should be read in conjunction with notes and supplementaryprovisions in Annex I to the AGREEMENT . In accordance with ArticleXXXIV, Annexes A to I are an integral part of the AGREEMENT .

3 TheSchedules of tariff concessions annexed to the GENERAL AGREEMENT (nothere reproduced) are also, in accordance with Article II:7, an integral partof the the Decision of 23 March 1965, the CONTRACTING PARTIES changedthe title of the head of the GATT secretariat from "Executive Secretary" to"Director- GENERAL ". However, in the absence of an amendment to theGeneral AGREEMENT to take account of this change, the title "Executive Secretary" has been retained in the text of Articles XVIII:12(e), XXIII:2 andXXVI:4, 5 and 6. The Decision of 23 March 1965 provides that the dutiesand powers conferred upon the Executive Secretary by the GeneralAgreement "shall be exercised by the person holding the position ofDirector- GENERAL , who shall, for this purpose, also hold the position ofExecutive Secretary".TABLE OF ..iiiTEXT OF THE GENERAL AGREEMENT ON TARIFFS AND trade PREAMBLE.

4 1 PART IArticle I GENERAL Most-Favoured-Nation Treatment..2 Article IISchedules of ..3 PART IIArticle IIIN ational Treatment on Internal Taxation ..6 Article IVSpecial Provisions relating to ..8 Article VFreedom of ..8 Article VIAnti-dumping and Countervailing VIIV aluation for Customs ..12 Article VIIIFees and Formalities connected with Importationand ..14 Article IXMarks of ..15 Article XPublication and Administration of ..16 Article XIGeneral Elimination of Quantitative ..17 Article XIIR estrictions to Safeguard the Balance of ..18 Article XIIINon-discriminatory Administration of Quantita-tive ..21 Article XIVE xceptions to the rule of ..23 Article XVExchange ..24 Article ..26 Article XVIIS tate Trading ..27 Article XVIIIG overnmental Assistance to Economic ..28 Article XIXE mergency Action on Imports of Particular ..36 Article XXGeneral ..37 Article XXIS ecurity ..38 Article ..39 Article XXIIIN ullification of.

5 39 VITABLE OF CONTENTSPART IIIPageArticle XXIVT erritorial Application _ Frontier Traffic _ Cus-toms Unions and Free- trade ..41 Article XXVJ oint Action by the Contracting ..44 Article XXVIA cceptance. Entry into Force and ..45 Article XXVIIW ithholding or Withdrawal of ..46 Article XXVIIIM odification of ..46 Article XXVIII bisTariff ..48 Article XXIXThe Relation of this AGREEMENT to the ..49 Article ..50 Article ..51 Article XXXIIC ontracting ..51 Article ..51 Article ..52 Article XXXVNon-application of the AGREEMENT between Partic-ular Contracing ..52 PART IVTRADE AND DEVELOPMENTA rticle XXXVIP rinciples and ..53 Article ..55 Article XXXVIIIJ oint ..56 Annexes A to G_ Relating to Article ..58 Annexe H_ Relating to Article ..60 Annexe I_ Notes and Supplementary ..62 PROTOCOL OF PROVISIONAL ..77 APPENDIX.. and Effective Date of GATT .. to Abbreviations used in this Appendix and to Provisions inSupplementary Agreements affecting the Application of CertainPortions of the GENERAL .

6 89 THE GENERAL AGREEMENTON TARIFFS AND TRADEThe Governments of the COMMONWEALTH OF AUSTRALIA, theKKINGDOM OF BELGIUM, the UNITED STATES OF BRAZIL, BURMA, CANADA,CEYLON, the REPUBLIC OF CHILE, the REPUBLIC OF CHINA, the REPUBLIC OFCUBA, the CZECHOSLOVAK REPUBLIC, the FRENCH REPUBLIC, INDIA,LEBANON, the GRAND-DUCHY OF LUXEMBURG, the KINGDOM OF THENETHERLANDS, NEW ZEALAND, the KINGDOM OF NORWAY, PAKISTAN,SOUTHERN RHODESIA, SYRIA, the UNION OF SOUTH AFRICA, the UNITEDKINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, and the UNITEDSTATES OF AMERICA:Recognizing that their relations in the field of trade and economicendeavour should be conducted with a view to raising standards of living,ensuring full employment and a large and steadily growing volume ofreal income and effective demand, developing the full use of the resourcesof the world and expanding the production and exchange of goods,Being desirous of contributing to these objectives by entering intoreciprocal and mutually advantageous arrangements directed to thesubstantial reduction of TARIFFS and other barriers to trade and to theelimination of discriminatory treatment in international commerce,Have through their Representatives agreed as follows.

7 1 PART IArticle IGeneral Most-Favoured-Nation respect to customs duties and charges of any kind imposedon or in connection with importation or exportation or imposed on theinternational transfer of payments for imports or exports, and with respectto the method of levying such duties and charges, and with respect to allrules and formalities in connection with importation and exportation, andwith respect to all matters referred to in paragraphs 2 and 4 of Article III,*any advantage, favour, privilege or immunity granted by any contractingparty to any product originating in or destined for any other country shallbe accorded immediately and unconditionally to the like productoriginating in or destined for the territories of all other contracting The provisions of paragraph 1 of this Article shall not require theelimination of any preferences in respect of import duties or chargeswhich do not exceed the levels provided for in paragraph 4 of this Articleand which fall within the following descriptions:(a) Preferences in force exclusively between two or more of theterritories listed in Annex A, subject to the conditions set forththerein.

8 (b) Preferences in force exclusively between two or more territorieswhich on July 1, 1939, were connected by common sovereignty orrelations of protection or suzerainty and which are listed inAnnexes B, C and D, subject to the conditions set forth therein;(c) Preferences in force exclusively between the United States ofAmerica and the Republic of Cuba;(d) Preferences in force exclusively between neighbouring countrieslisted in Annexes E and provisions of paragraph 1 shall not apply to preferencesbetween the countries formerly a part of the Ottoman Empire anddetached from it on July 24, l923, provided such preferences are approvedunder paragraph 5 of Article XXV, which shall be applied in this respectin the light of paragraph 1 of Article The authentic text erroneously reads "sub-paragraph 5 (a)".2 ARTICLES I AND margin of preference* on any product in respect of which apreference is permitted under paragraph 2 of this Article but is not specifically set forth as a maximum margin of preference in theappropriate Schedule annexed to this AGREEMENT shall not exceed:(a) in respect of duties or charges on any product described in suchSchedule, the difference between the most-favoured-nation andpreferential rates provided for therein; if no preferential rate isprovided for, the preferential rate shall for the purposes of thisparagraph be taken to be that in force on April 10, l947, and, if nomost-favoured-nation rate is provided for, the margin shall notexceed the difference between the most-favoured-nation andpreferential rates existing on April 10, 1947.

9 (b) in respect of duties or charges on any product not described inthe appropriate Schedule, the difference between the most-favoured-nation and preferential rates existing on April 10, the case of the contracting parties named in Annex G, the date of April 10, 1947, referred to in sub-paragraph (a) and (b) of this paragraph shall bereplaced by the respective dates set forth in that IISchedules of Concessions1.(a) Each contracting party shall accord to the commerce of theother contracting parties treatment no less favourable than that providedfor in the appropriate Part of the appropriate Schedule annexed to thisAgreement.(b) The products described in Part I of the Schedule relating toany contracting party, which are the products of territories of othercontracting parties, shall, on their importation into the territory to whichthe Schedule relates, and subject to the terms, conditions or qualificationsset forth in that Schedule, be exempt from ordinary customs duties inexcess of those set forth and provided therein.

10 Such products shall also beexempt from all other duties or charges of any kind imposed on or inconnection with the importation in excess of those imposed on the date ofthis AGREEMENT or those directly and mandatorily required to be imposedthereafter by legislation in force in the importing territory on that date.(c) The products described in Part II of the Schedule relating toany contracting party which are the products of territories entitled underArticle I to receive preferential treatment upon importation into theterritory to which the Schedule relates shall, on their importation into suchterritory, and subject to4 ARTICLE IIthe terms, conditions or qualifications set forth in that Schedule, be exemptfrom ordinary customs duties in excess of those set forth and provided forin Part II of that Schedule. Such products shall also be exempt from allother duties or charges of any kind imposed on or in connection withimportation in excess of those imposed on the date of this AGREEMENT orthose directly or mandatorily required to be imposed thereafter bylegislation in force in the importing territory on that date.