Earlier this year, the World Customs Organisation (WCO) decided to classify MCOs under a single semiconductor heading in the international customs classification system. The expanded ITA will greatly facilitate the free flow of MCOs which, like other semiconductors, are the enabling technology for most ICT goods. Customs duties will be eliminated to the benefits of both consumers and businesses. MCOs are an example of the industry trend of expansion of functionality and performance, called ‘More than Moore,’ where the European industry has specific strengths. They combine in one semiconductor device many functions previously done by several products.
The expanded ITA is the biggest tariff cutting deal in the WTO since 1996. It is valued at around € 1tn and covers close to 90% of global trade in the products concerned. The majority of the products’ customs duties will be eliminated within three years from 1st July 2016.
“The conclusion of the ITA is a landmark deal that promotes innovation worldwide, facilitating trade of high-tech products, including advanced semiconductors such as MCOs. They represent a quickly growing portion of the market, performing essential functions in many electronic devices and contributing to the further development of the digital economy, in areas such as IoT. They can be found – among others – in applications which are used to improve road and car safety, and to enable resource and energy efficiency in automobiles and household appliances and in many other high tech products,” commented Hendrik Abma, Director General of ESIA.