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News Media
Media Alerts
Internet Business Alliance President Robert E. Smith on Wednesday
(December 1, 1999) in Seattle questioned where the placement of Internet based
electronic commerce (EC) issues has occurred inside the World Trade Organization.
Choosing his words carefully Smith said, “When it comes to Internet
e-commerce, it is interesting to note that the WTO e-Commerce Committee falls
under the authority of the Products Group and not under the authority of
Services Group.” He went on to explain that many countries tax products
through various stages of development while services are treated as
non-commodities and generally are not subject to tariffs or value added taxes. Electronic
commerce may denote either Internet/Web based business or Electronic Data
Interchange (EDI) which has been utilized by major corporations for some time.
Small to Medium Size Enterprises (SMEs) are opting for the less costly
Internet/Web-based commerce over EDI.
Smith noted that the WTO is essentially
allowing a hands-off policy for EDI based e-commerce while the WTO authority for
Internet e-commerce is ready to establish governance. As
Smith explained, “Since there are 390 global companies with EDI in place
controlling 85% of the world’s exports, it appears that the WTO seeks to
govern the remaining 15% of transactions by SMEs through rules and regulations
over Internet based commerce.” While
both the United States Congress and Administration have maintained a policy
placing a moratorium on Internet taxes, a different attitude is emerging in
other governments. France presently places a 20% tax on Internet business
transactions. The European Union is nearing approval of a “Unique Business
Identifier” to track transaction for taxation to be added to the Internet
addresses known as “Universal Resource Identifier”(URI), and the United
Kingdom approved laws that require Internet Service Providers to allow the
government to eavesdrop on users. Policies similar to these of the EU and in the
UK are in the draft proposal of the Clinton Administration’s US Internet Task
Force. Because
the WTO governance is developed through consensus of the 139 member
economies, Smith poses this question to United States entrepreneurs: “Are you
ready for tax and regulation by an international body based on consensus, rather
that logical reasoning?” From The Costco Connection,
October 1999: If you have these kinds of questions, an organization called
the Internet Business alliance (IBA) may be of help. The IBA, a Costco member,
provides training courses, forums, articles and other resources to help
businesspeople understand business on the Net. The resources are provided in several ways. One is through
courses that can be downloaded from the IBA Web site. Course topics include
Internet law, tax issues for e-commerce, security, digital certificates,
internet commerce trends and the Y2K issues. These can be retrieved for a small
fee of $5 to $10 to cover the costs. The IBA is developing other course
addressing small business issues. Another resource is online forums, dedicated to specific
topics, in which businesses can share their experience. And the IBA is working
on establishing a national network of local chapters that could host
informational sessions such as breakfast meetings. So far, chapters have been
set up in Washington state and Hawaii. The bottom line is helping small businesses take advantage of
the new technologies available that are making e-commerce systems, affordable,
move their customer services into a new league and enter new markets, says
Robert E. Smith, IBA president. “IBA helps small businesses learns about these
emerging technologies, and brings them together to talk about issues and
concerns,” he says. IBA WELCOMES COSTCO WHOLESALE MEMBERS Internet Business Alliance president Robert E. Smith welcomed to the IBA membership Costco Wholesale business members from states cross the country in the contiguous 48 as well as the states of Hawaii and Alaska. Costco members responded to a feature in the October issue of Costco Connections magazine page 11) in which the Internet Business Alliance extended an invitation for Costco members to join IBA with the usual $100 annual fee waived. Founded as a regional group from the Northwestern USA and Western Canada the IBA has grown into a North American organization with additional members from other continents anticipated. The founding chapter is based in Seattle with another chapter established in Maui, Hawaii. Procedures are in place for chapters in California and other sections of Washington. Details will be announced through the IBA board of directors
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