WTO ANALYTICAL INDEX
GATT 1994 – Article III (DS reports)
5
provisions of paragraph 2 to such tax until such time as it can obtain release from the
obligations of such trade agreement in order to permit the increase of such duty to the
extent necessary to compensate for the elimination of the protective element of the tax.
4. The products of the territory of any contracting party imported into the territory of
any other contracting party shall be accorded treatment no less favourable than that
accorded to like products of national origin in respect of all laws, regulations and
requirements affecting their internal sale, offering for sale, purchase, transportation,
distribution or use. The provisions of this paragraph shall not prevent the application of
differential internal transportation charges which are based exclusively on the economic
operation of the means of transport and not on the nationality of the product.
5. No contracting party shall establish or maintain any internal quantitative regulation
relating to the mixture, processing or use of products in specified amounts or proportions
which requires, directly or indirectly, that any specified amount or proportion of any
product which is the subject of the regulation must be supplied from domestic sources.
Moreover, no contracting party shall otherwise apply internal quantitative regulations in a
manner contrary to the principles set forth in paragraph 1.*
6. The provisions of paragraph 5 shall not apply to any internal quantitative regulation in
force in the territory of any contracting party on July 1, 1939, April 10, 1947, or March 24,
1948, at the option of that contracting party; Provided that any such regulation which is
contrary to the provisions of paragraph 5 shall not be modified to the detriment of imports
and shall be treated as a customs duty for the purpose of negotiation.
7. No internal quantitative regulation relating to the mixture, processing or use of
products in specified amounts or proportions shall be applied in such a manner as to
allocate any such amount or proportion among external sources of supply.
8. (a) The provisions of this Article shall not apply to laws, regulations or requirements
governing the procurement by governmental agencies of products purchased for
governmental purposes and not with a view to commercial resale or with a view to use in
the production of goods for commercial sale.
(b) The provisions of this Article shall not prevent the payment of subsidies
exclusively to domestic producers, including payments to domestic producers derived from
the proceeds of internal taxes or charges applied consistently with the provisions of this
Article and subsidies effected through governmental purchases of domestic products.
9. The contracting parties recognize that internal maximum price control measures, even
though conforming to the other provisions of this Article, can have effects prejudicial to the
interests of contracting parties supplying imported products. Accordingly, contracting
parties applying such measures shall take account of the interests of exporting contracting
parties with a view to avoiding to the fullest practicable extent such prejudicial effects.
10. The provisions of this Article shall not prevent any contracting party from establishing
or maintaining internal quantitative regulations relating to exposed cinematograph films
and meeting the requirements of Article IV.
1.2 Text of note ad Article III
Ad Article III
Any internal tax or other internal charge, or any law, regulation or requirement of the
kind referred to in paragraph 1 which applies to an imported product and to the like
domestic product and is collected or enforced in the case of the imported product at the
time or point of importation, is nevertheless to be regarded as an internal tax or other
internal charge, or a law, regulation or requirement of the kind referred to in paragraph 1,
and is accordingly subject to the provisions of Article III.
Paragraph 1