ICC Urging WTO to Permanently Ban Tariffs on Cross-Border Data Flows

The International Chamber of Commerce is urging the World Trade Organization to permanently ban tariffs on “cross-border data flows” as a temporary ban moves closer to expiration, the ICC said in a Sept. 17 report.

The ICC said the 1998 moratorium placed on the imposition of customs duties on certain electronic transmissions must be made permanent to continue digital trade growth and prevent “trade barriers and burdensome customs duties.” Since the moratorium was imposed, “consumers have gained unprecedented access to new products and services” and international businesses gained access to new markets.

The ICC said three countries have suggested ending the moratorium, including Indonesia, which is “going so far as to create tariff codes for ‘software and other digital goods transmitted electronically’ in its Customs Tariff Book,” the ICC said. If the moratorium ends, an “economic disruption” will “inevitably occur,” the ICC said.

“The potential disruptions caused by the imposition of tariffs on data could far outweigh any impacts we’ve seen from recent protectionist escalations,” ICC Secretary General John Denton said in a statement. “It is vital that governments address this issue with the urgency and attention it requires.”