Agreement On Duty-Free Treatment Of Multichip Integrated Circuits

The reduction of tariffs on multiprocessor integrated circuits (also known as “multi-chip packages” or “MCPs”) was an example of the important cooperation in GAMS. Please note that there is a likelihood that tariffs and other taxes on MCPs will in any event be removed as a result of either the Doha round of trade negotiations or another agreement that can be concluded under the aegis of the WTO. 2. The exemption from the customs obligation is provided for multi-chip integrated circuits (MCPs) consisting of two or more interconnected monolithic integrated circuits, which are combined indivisibly for all uses, whether on one or more insulating substrates, with or without lead frames, but without other active or passive circuit elements. [Image] EUROPEAN COMMUNITIES COMMITTEE Brussels, 15.2.2006COM (2006) 61 final2006/0017 (ACC) KONKONREGULATION proposal for the implementation of the duty-free treatment agreement for multiprocessor integrated circuits by amending Schedule I of Regulation (CEE) no 2006/2006. 2658/87 on tariff and statistical nomenclature and common tariff (presented by the Commission) Reasons and objectives of the proposal Smart integrated circuits or “multi-chip packages” (McPs) are a relatively new category of mounted semiconductors that did not exist at the time of the itA tariff reduction mechanism (WTO Information Technology Agreement) 1996. Had there been MCPs at the time of the ITA negotiation, it is likely that they would have been admitted to the ITA at a zero fee rate. The five members of the government/authorities that partner with semiconductors (GAMS) that are the European Community, represented by the European Commission, Japan, Korea, the United States and Chinese Taipei, have negotiated an agreement on duty-free treatment of multi-chip integrated circuits (MCPs) (`MCP agreement`). $120 General Context On behalf of the European Community, the Council concluded the MCP agreement with the Council`s 2005/964/EC decision of 21 December 2005. $130 Existing provisions in the area of the proposal The Council`s proposed regulation would enable the conclusion of the MCP agreement to be implemented by making an amendment to Schedule I of Regulation (EEC) 2658/87 of the Council on tariff and statistical nomenclature and the common tariff. `141` Consistency with the EU`s other policies and objectives The proposal would promote the competitiveness of the European industry concerned.

`CONSULTATION OF INTERESTED PARTIES` AND IMPACT ANALYSIS Consultation with interested parties The relevant European industry sees the MCP agreement as a key initiative to promote the competitiveness of the European semiconductor industry. `Collecting and using expertise ` `229` This proposal is simply to implement an international agreement reached by the Community. $230 Impact analysis This proposal does not require an impact analysis. Other regulatory approaches are not possible. LEGAL ELEMENTS OF THE PROPOSAL `305` Summary of proposed measures The proposed regulation would reduce to zero the rate of all tariffs and other duties and taxes levied on MCPs.