Recalling that there exists a shared view on the duty -free
treatment of MCPs among the Members of the Government/
Authorities Meeting on Semiconductors (GAMS), which are the
European Community represented in GAMS through the European
Commission; Japan; the Republic of Korea; the United States of
America; and the Separate Customs Territory of Taiwan, Penghu,
Kinmen and Matsu, those GAMS Members have agreed as follows :
(l) For purposes of this Agreement :
(a) multi-chip integrated circuits (MCPs) means multi -chip
integrated circuits consisting of two or more
interconnected monolithic integrated cireuits combined to
all intents and purposes indivisibly, whether or not on
one or more insulating substrates, with or without lead
frames, but with no other active or passive circuit
elements ;
(b) Harmonized System means the Harmonized Commodity
Description and Coding System set out in the Annex to the
Intemational Convention on the Harmonized Commodity
Description and Coding System , as may be amended , and
as adopted and implemented by the Parties in their
respective internal laws and regulations ;
(c) Party means a GAMS Member or any Member of the World
Trade Organization (WTO) that has deposited its
instrument of acceptance with the depositary; and
(d) terms used in this Agreement that are also used in the
Marrakech Agreement Establishing the World Trade
Organization (the WTO Agreement) shall have the same
meaning as in the WTO Agreement.
(2) This Agreement shall apply to all MCPs , regardless of
where such products are classified in the Harmonized System.
(3) Each Party shall, on a most -favored -nation basis , reduce
to zero the rate of all customs duties and other duties and
charges , as such duties and charges are described in
Article II: l (b) of the General Agreement on Tariffs and
Trade 1994 (GATT 1994), that it applies to MCPs , in
accordance with the following procedures :
(a) Each Party shall apply duties and charges on MCPs at a
rate of zero until all the Parties agree that a
sufficient level of global trade in MCPs is covered in a
multilateral tariff reduction agreement under the
auspices of the WTO.
(b) At that time, or, if that time is before 31 December
2006, on 1 January 2007 each Party shall bind all duties
and charges on MCPs at a rate of zero.
(c) All the Parties agree to cooperate with other Members of
the WTO to achieve 90 pereent coverage of global trade in
MCPs in such a tariff reduction agreement.
(4)
(a) Each Party shall, at the time of its acceptance of this
Agreement, provide to the depositary a list of the
headings in its tariff schedule that include MCPs. If a
Party subsequently classifies an MCP in a heading not
included on its original list, that Party shall promptly
provide a modified list to the depositary.
(b) Any Party may at any time request modifications to a list
of another Party that it finds to be incomplete, in which
case the requested Party shall consult and work with the
requesting Party in good faith to complete all
modifications as necessary. The modified list shall be
provided to the depositary.
(c) The depositary shall transmit the provided list ,
including its modifications, to all Parties.
(5) Notwithstanding the autonomous Iiberalization of applied
duties and charges on MCPs under this Agreement, each Party
shall be permitted to take into account the binding of
tariffs on MCPs at zero level as part of its overall
balance of concessions in a multilateral tariff reduction
agreement under the auspices of the WTO.
(6) Without prejudice to paragraph 3, nothing in this Agreement
shall be interpreted as affecting a Party's, rights and
obligations under the WTO Agreement.
(7)
(a) After the depositary receives four instruments of
acceptance from GAMS Members, those Parties shall agree
on a date of entry into force of the Agreement.
(b) This Agreement shall be open for acceptance by any Member
of the WTO. An acceptance following the entry into force
of this Agreement shall enter into force on the date such
acceptance is received by the depositary. The depositary
shall inform all Parties upon receipt of an acceptance.
(c) If the Parties agree to amend this Agreement,
subparagraphs (a) and (b) shall apply mutatis mutandis to
such amendment.
(8) When all the Parties bind all duties and charges on MCPs at
a rate of zero pursuant to paragraph 3 subparagraphs (a) to
(c) , this Agreement shall terminate.
(9) The original of this Agreement in the English language as
well as the instruments of acceptance shall be deposited
with the Secretary-General of the Council of the European
Union.