Information Technology Agreement’s Duty-Free Treatment In Effect For Certain Electronic Toys
13 July 2016
Exporters in various industries from toys to medical supplies have begun experiencing the benefits of lifted tariffs due to the Information Technology Agreement’s (ITA) expansion, which was enacted on July 1st. More than 200 information technology (IT) products now receive duty-free treatment due to the expansion, including certain types of electronic toys.
As previously reported, the ITA’s expansion is part of the World Trade Organization’s (WTO) landmark tariff-cutting deal. Duty-free treatment is now extended to many electronic products, such as children’s portable electronic learning devices; video game consoles and those used with a television receiver; and games that are operated by coins, cash, credit cards, tokens and other means of payment, among others.
This is the first major compliance act implemented by the WTO in nearly two decades under the ITA. According to the WTO, the ITA’s expansion will save companies $1.3 trillion in annual exports, or approximately seven percent of global trade. Under the terms of the agreement, the majority of tariffs on products being added to the ITA will be eliminated by July 1, 2019.
Toy Industry Association (TIA) President and CEO Steve Pasierb said the ITA expansion is extremely beneficial to TIA members.
“These long-sought-after tariff eliminations have been on TIA’s advocacy agenda,” Pasierb said. “Looking to the future, TIA members and industry stakeholders will save on exporting applicable electronic toys, increasing margins and consumer value on innovative new lines and products.”
In 2012, WTO members recognized that technological innovation had advanced beyond projections and that many new product categories were not addressed in the prior ITA, which initiated negotiations to expand its range.
A list of all 201 products that have received duty-free treatment as of July 1st can be found here.
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