{"id":5837,"date":"2025-11-15T14:41:52","date_gmt":"2025-11-15T06:41:52","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=5837"},"modified":"2025-11-15T15:22:52","modified_gmt":"2025-11-15T07:22:52","slug":"regulations-general-agreement-on-tariffs-and-trade-gatt-1947","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/zh\/regulations-general-agreement-on-tariffs-and-trade-gatt-1947\/","title":{"rendered":"REGULATIONS \u2013 GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT 1947 )"},"content":{"rendered":"

Article 1: General Most-Favoured-Nation Treatment<\/strong><\/h3>\n\n\n\n

1.<\/strong> With respect to customs duties and charges of any kind imposed on or in connection with importation or exportation or imposed on the international transfer of payments for imports or exports, and with respect to the method of levying such duties and charges, and with respect to all rules and formalities in connection with importation and exportation, and with respect to all matters referred to in paragraphs 2 and 4 of Article III,* any advantage, favour, privilege or immunity granted by any contracting party to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other contracting parties.<\/p>\n\n\n\n

2.<\/strong> The provisions of paragraph 1 of this Article shall not require the elimination of any preferences in respect of import duties or charges which do not exceed the levels provided for in paragraph 4 of this Article and which fall within the following descriptions:<\/p>\n\n\n\n

    I.<\/strong> preferences in force exclusively between two or more of the territories listed in Annex A, subject to the conditions set forth therein;
    II.<\/strong> preferences in force exclusively between two or more territories which on July 1, 1939, were connected by common sovereignty or relations of protection or suzerainty and which are listed in Annexes B, C and D, subject to the conditions set forth therein;
    III.<\/strong> preferences in force exclusively between the United States of America and the Republic of Cuba;
    IV.<\/strong> preferences in force exclusively between neighbouring countries listed in Annexes E and F.<\/p>\n\n\n\n

3.<\/strong> The provisions of paragraph 1 shall not apply to preferences between the countries formerly a part of the Ottoman Empire and detached from it on 24 July, 1923, provided such preferences are approved under paragraph 5 of Article XXV which shall be applied in this respect in the light of paragraph 1 of Article XXIX.<\/p>\n\n\n\n

4.<\/strong> The margin of preference* on any product in respect of which a preference is permitted under paragraph 2 of this Article but is not specifically set forth as a maximum margin of preference in the appropriate Schedule annexed to this Agreement shall not exceed:<\/p>\n\n\n\n

    I.<\/strong> in respect of duties or charges on any product described in such Schedule, the difference between the most-favoured-nation and preferential rates provided for therein;
    II.<\/strong> in respect of duties or charges on any product not described in the appropriate Schedule, the difference between the most-favoured-nation and preferential rates existing on April 10, 1947.<\/p>\n\n\n\n

In the case of the contracting parties named in Annex G, the date of April 10, 1947, referred to in subparagraphs (I) and (II) of this paragraph shall be replaced by the respective dates set forth in that Annex.<\/p>\n\n\n\n

\n\n\n\n

Article II \u2013 Schedules of Concessions<\/strong><\/h3>\n\n\n\n

1(a).<\/strong> Each contracting party shall accord to the commerce of the other contracting parties treatment no less favourable than that provided for in the appropriate Part of the appropriate Schedule annexed to this Agreement.<\/p>\n\n\n\n

1(b).<\/strong> The products described in Part I of the Schedule relating to any contracting party, which are the products of territories of other contracting parties, shall, on their importation into the territory to which the Schedule relates, and subject to the terms, conditions or qualifications set forth in that Schedule, be exempt from ordinary customs duties in excess of those set forth and provided therein. Such products shall also be exempt from all other duties or charges of any kind imposed on or in connection with importation in excess of those imposed on the date of this Agreement or those directly and mandatorily required to be imposed thereafter by legislation in force in the importing territory on that date.<\/p>\n\n\n\n

2.<\/strong> Nothing in this Article shall prevent any contracting party from imposing at any time on the importation of any product:<\/p>\n\n\n\n

    (a)<\/strong> a charge equivalent to an internal tax imposed consistently with the provisions of paragraph 2 of Article III*;
    (b)<\/strong> any anti-dumping or countervailing duty applied consistently with Article VI*;
    (c)<\/strong> fees or other charges commensurate with the cost of services rendered.<\/p>\n\n\n\n

3.<\/strong> No contracting party shall alter its method of determining dutiable value or of converting currencies so as to impair the value of any of the concessions provided for in the appropriate Schedule annexed to this Agreement.<\/p>\n\n\n\n

4.<\/strong> If any contracting party establishes or authorizes a monopoly of the importation of any product described in the Schedule, such monopoly shall not operate so as to afford protection in excess of the amount provided for in that Schedule.<\/p>\n\n\n\n

5.<\/strong> If any contracting party considers that a product is not receiving the treatment contemplated by a concession, it shall bring the matter directly to the attention of the other contracting party and renegotiation shall follow if required.<\/p>\n\n\n\n

\n\n\n\n

Article XX \u2013 General Exceptions<\/strong><\/h3>\n\n\n\n

Subject to the requirement that such measures are not applied in a manner constituting arbitrary or unjustifiable discrimination or a disguised restriction on international trade, nothing shall prevent the adoption of measures:<\/p>\n\n\n\n

a.<\/strong> necessary to protect public morals;
b.<\/strong> necessary to protect human, animal or plant life or health;
c.<\/strong> relating to the importation or exportation of gold or silver;
d.<\/strong> necessary to secure compliance with laws not inconsistent with this Agreement;
e.<\/strong> relating to products of prison labour;
f.<\/strong> imposed for the protection of national treasures;
g.<\/strong> relating to conservation of exhaustible natural resources;
h.<\/strong> undertaken under an intergovernmental commodity agreement;
i.<\/strong> involving restrictions on exports of domestic materials;
j.<\/strong> essential to the acquisition or distribution of products in short supply.<\/p>\n\n\n\n

\n\n\n\n

Article XXI \u2013 Security Exceptions<\/strong><\/h3>\n\n\n\n

Nothing in this Agreement shall be construed:<\/p>\n\n\n\n

a)<\/strong> to require any contracting party to furnish information contrary to its essential security interests;
b)<\/strong> to prevent action necessary for protection of essential security interests relating to:
    (i)<\/strong> fissionable materials;
    (ii)<\/strong> arms, ammunition, implements of war;
    (iii)<\/strong> taken in time of war or emergency in international relations;
c)<\/strong> to prevent action under the UN Charter relating to peace and security.<\/p>","protected":false},"excerpt":{"rendered":"

On 3.4.2025, the United States imposed a 24% tariff on Malaysian exports, triggering concerns over its legality under international trade law. The measure appears to breach core WTO obligations, including Most-Favoured Nation treatment and tariff bindings. Malaysia has strong grounds to challenge the tariff through WTO dispute settlement, though enforcement could be delayed due to the Appellate Body impasse. In the meantime, Malaysia is pursuing diplomatic avenues, highlighting the importance of rules-based trade amid rising global protectionism.<\/p>","protected":false},"author":1,"featured_media":5852,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1569,18],"tags":[3650,3665,3663,3667,3662,3666,3622,3623,3619,3664],"class_list":["post-5837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-law","category-updates","tag-commercial-law","tag-customs-duties","tag-gatt","tag-general-exceptions","tag-international-trade","tag-mfn","tag-security-exceptions","tag-tariff-concessions","tag-trade-law","tag-wto"],"yoast_head":"\nREGULATIONS \u2013 GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT 1947 ) | Yew Huoi, How & Associates | Leading Malaysia Law Firm<\/title>\n<meta name=\"description\" content=\"YHA & Associates is a leading law firm in 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