With its complex manufacturing process, global supply chains and markets, the semiconductor industry is a genuinely globalised sector. During the semiconductor manufacturing process, a microchip usually travels across the globe at least twice before being delivered to its final customer. Therefore, fast international movement of products, people and equipment is essential to the semiconductor business.
The semiconductor industry has an interest in facilitating growth by advocating free and open markets and by eliminating tariff and non-tariff barriers for all semiconductor products.
The International Trade Committee coordinates the above-mentioned activites.
Many semiconductors industry products and technologies - at the front of new markets and innovations - are classified as dual-use. They include commercial applications which are widely available such as smart cards. The classification under dual use implies the necessity of obtaining export licenses, creating additional administrative burdens with the risk that customers buy foreign available products.
Every type of semiconductor product/application can be impacted, in particular semiconductor products with cryptographic capabilities (banking, transport, mobile communications, but also computer, set top boxes using smartcards, etc.)
Duty rates, scope and application of international agreements, such as the Information Technology Agreement (ITA), trade remedies, statistics, they all need a common understanding on how a good is identified worldwide, which is the international customs classification.
As international trade becomes more complex, international customs classifications are becoming the main multi-purpose tool to help governments and industry for fiscal and regulatory compliance. Semiconductor products are evolving everyday with technology, and customs classifications are not revised as often to catch the new products in the right category, or to catch them at all. Classification revisions ensure that the classifications are kept up to date in the light of changes in technology or in patterns of international trade.
The International Trade Committee is working to ensure that classification revisions capture correctly the new products on the market, or give input where an interpretation of the related heading is required.
International trade and modern communications rely more and more on information exchanged in digital form. Consequently the development and the ubiquity of information technology has driven the commercial demand for privacy and security (protection from theft or unauthorized access) with encryption as one of the primary means to achieve this.
The use of encryption has become widespread in many commercial applications, being incorporated in most semiconductor devices intended for end-use in mass market and information infrastructure products. As a result, the great majority of encryption applications involve every day commercial products commonly used and traded in the global marketplace.
ESIA believes that encryption regulations shall not be used for the purpose of limiting market access to foreign products and considers that commercial products with cryptographic capabilities should, as a general matter, not be regulated.
To the extent that encryption regulation is necessary, ESIA and the WSC recommend the following best practices:
An important factor for the competitiveness of European semiconductor industry is a highly automated supply chain with low administration and handling costs and short transit times. In this context, the reform of the European Customs system is in process and ESIA delivers input as a participant in the Trade Contact Group. This latter is a consultative body composed by industries and the European Commission (DG TAXUD).
All goods traded need to have a determined origin: for statistical reasons, trade measures (antidumping, anti-subsidies measures, preferential treatment). “Rules of origin” (RoO) are the criteria used to define where a product was made.
Peter Proebster - Infineon Technologies
December 2020: ESIA presentation to the EU Export Control Forum 2020 on the Controls on intangible items & emerging technologies
December 2019: ESIA Comments on the Guidance on Customs Valuation
December 2019: ESIA presentation to the EU Export Control Forum 2019 on Harmonisation and Level playing field
December 2018: ESIA presentation to the EU Export Control Forum 2018 on the Impact of New Technologies on Export Controls
June 2017: ESIA views on the recast Dual-Use Regulation
September 2014: ESIA joins the ITA Global Statement
November 2013: EU industry joint letter on ITA expansion
November 2013: EU-Japan Summit - Joint statement by 20 business organisatins
July 2013: Global Industry calls for Expansion of the ITA - Letter to Vice Premier of RP China
June 2013: Position Paper - EU-US Transantlantic Trade and Investement Partnership (TTIP)
May 2013: WCS calls for Expansion of the ITA - Letter to WTO Permenant Missions of ITA members
November 2012: Statement - EU-Japan Free Trade Agreement
June 2011: Commission Sector fiche - EU Trade in Electronics