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1.Signed on July 6, 2011; Entered into Force on July 6, 2011.
 
The Dispute Settlement Body (“ DSB ” )adopted its
recommendations and rulings in the dispute EC and its Member
States – Tariff Treatment of Certain Information Technology
Products (WT/DS377) on 21 September 2010.

Pursuant to Article 21.3(b) of the Understanding on Rules and
Procedures Governing the Settlement of Disputes (“ DSU ” )the
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu
and the European Union (“ EU ” )agreed that the reasonable
period of time to implement the DSB recommendations and rulings
would be nine (9) months and nine (9) days, expiring on 30 June
2011 (WT/DS377/14).

The Separate Customs Territory of Taiwan, Penghu, Kinmen and
Matsu and the EU (“ the parties to the dispute ” )have agreed
on the following procedures for the exclusive purposes of this
dispute. They are designed to facilitate the resolution of the
dispute and reduce the scope for procedural disputes and are
without prejudice to either party ’ s views on the correct
interpretation of the DSU:

1. Should the Separate Customs Territory of Taiwan, Penghu,
Kinmen and Matsu consider that the situation described in
Article 21.5 of the DSU exists, the Separate Customs
Territory of Taiwan, Penghu, Kinmen and Matsu will request
that the EU enter into consultations with the Separate
Customs Territory of Taiwan, Penghu, Kinmen and Matsu. The
Parties agree to hold such consultations within 15 days from
the date of receipt of the request. After this 15-day period
has elapsed, the Separate Customs Territory of Taiwan,
Penghu, Kinmen and Matsu may request the establishment of a
panel pursuant to Article 21.5 of the DSU at any time.
2. At the first DSB meeting at which the Separate Customs
Territory of Taiwan, Penghu, Kinmen and Matsu ’ s request
for the establishment of an Article 21.5 panel appears on the
agenda, the EU shall accept the establishment of that panel.
3. The parties to the dispute shall cooperate to enable the
Article 21.5 panel to circulate its report within 90 days of
the panel ’ s establishment, excluding such time during
which the panel ’ s work may be suspended pursuant to
Article 12.12 of the DSU.
4. Either party to the dispute may request the DSB to adopt the
report of the Article 21.5 panel at a DSB meeting held at
least 20 days after the circulation of the report to the
Members unless either party appeals the report.
5. In the event of an appeal of the Article 21.5 panel report,
the parties to the dispute shall cooperate to enable the
Appellate Body to circulate its report to the Members within
90 days from the date of notification of the appeal to the
DSB. Further, either party to the dispute may request the DSB
to adopt its recommendations and rulings at a DSB meeting
held within 30 days of the circulation of the Appellate Body
report to the Members.
6. The Separate Customs Territory of Taiwan, Penghu, Kinmen and
Matsu may request authorization to suspend concessions or
other obligations pursuant to Article 22.2 of the DSU in the
event that the DSB rules as a result of a proceeding under
Article 21.5 of the DSU that a measure taken to comply does
not exist or is inconsistent with a covered agreement. The EU
shall not assert that the Separate Customs Territory of
Taiwan, Penghu, Kinmen and Matsu is precluded from obtaining
such DSB authorization because its request was made outside
the time period specified in the first sentence of Article
22.6 of the DSU. This is without prejudice to the EU ’ s
right to have the matter referred to arbitration in
accordance with Article 22.6 of the DSU.
7. If the Separate Customs Territory of Taiwan, Penghu, Kinmen
and Matsu requests authorization to suspend concessions or
other obligations pursuant to Article 22.2 of the DSU, the EU
shall have the right to object under Article 22.6 of the DSU
to the level of suspension of concessions or other
obligations and/or claim that the principles and procedures
set forth in Article 22.3 of the DSU have not been followed.
In the event of such objection, the matter will be referred
to arbitration pursuant to Article 22.6 of the DSU.
8. The parties to the dispute will cooperate to enable the
arbitrator under Article 22.6 of the DSU to circulate its
decision within 60 days of the referral to arbitration.
9. If any of the original panelists is not available for either
the Article 21.5 compliance panel or the Article 22.6
arbitration (or both), or any person serving in such
proceeding becomes unavailable to serve, the parties to the
dispute will promptly consult on a replacement, and either
party may request the Director-General of the WTO to appoint,
within ten days of being so requested, a replacement for the
proceeding or proceedings in which a replacement is required.
If an original panelist is unavailable to serve in either of
the proceedings, or a person serving in such proceeding
becomes unavailable to serve, the parties to the dispute will
further request that, in making this appointment, the
Director-General seek a person who will be available to act
in both proceedings.
10. The parties to this dispute will continue to cooperate in
all matters related to these agreed procedures and agree not
to raise any procedural objection to any of the steps set
out herein. If, during the application of these procedures,
the parties to the dispute consider that a procedural aspect
has not been properly addressed in these procedures, they
will endeavor to find a solution within the shortest time
possible that will not affect the other aspects and steps
agreed herein.

Signed in Geneva, 6 July 2011


For the Separate For the European Union
Customs Territory of
Taiwan, Penghu, H.E. Mr. Angelos
Kinmen and Matsu Pangratis
Mr. Yi-fu Lin Ambassador
Permanent Permanent
Representative to the Representative to the
WTO WTO