Fact Sheet: WTO Moratorium on Customs Duties on Electronic Transmissions

The World Trade Organization’s Moratorium on Customs Duties on Electronic Transmissions (the “Moratorium”) prohibits members from imposing customs duties on “electronic transmissions.” While the term “electronic transmissions” is undefined, the Moratorium in essence implies that countries are forbidden from imposing import taxes on business-to-consumer and business-to-business transactions that take place across borders over the Internet. The Moratorium therefore encompasses cross-border trade in a range of digital goods and services, including software; digital movies, music, and video games; and online legal, banking or business consultancy services.[1]