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TARIFF.DOC
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1993-06-24
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DRAFT
NAFTA TARIFF PHASING DESCRIPTIONS
Four main staging categories exist for tariff elimination
under NAFTA:
A - tariff elimination immediately upon implementation of
the Agreement, i.e., January 1, 1994.
B - tariff to be eliminated in five equal annual stages,
beginning January 1, 1994 and ending January 1, 1998.
C - tariff to be eliminated in ten equal annual stages,
beginning January 1, 1994 and ending January 1, 2003.
D - tariff already MFN free.
In addition to the above general phasing categories, the
following categories exist for specific cases:
Ex - excluded from tariff elimination. This category
applies to supply-managed goods (dairy, poultry, eggs) and to
several tariff items for sugar.
Bl - tariff to be eliminated in six equal annual stages,
beginning January 1, 1994 and ending January 1, 1999. (Applies to
43 items in textile tariffs.)
B+ - tariff to be eliminated in seven stages as follows: 20%
reduction on January 1, 1994, zero reduction on January 1, 1995,
10% reduction per year for years January 1, 1996 to January 1,
2000 and 30% reduction on January 1, 2001. (Applies to most
textile tariffs as well as 3902.1000 and 6403.5900.)
B8 - tariff to be eliminated in two stages as follows: 50%
reduction on January 1, 1998 and 50% reduction on January 1,
2001. (Applies to four Mexican tariff items in the paper
sector.)
Ba - tariff to be eliminated in five stages as follows: 50%
reduction on January 1, 1994 with remaining 50% to be phased out
in four equal annual reductions ending January 1, 1998. (Applies
to two light truck items.)
Bg- tariff to be eliminated in five stages as follows:
reduction to the FTA rate on January 1, 1994 and then follow the
FTA C phasing schedule ending January 1, 1998. (Applies to
Canadian agricultural tariff items for Mexico).
Bp- tariff to be eliminated in three stages as follows: 20%
reduction on January 1, 1997; 10% reduction on January 1, 1998
and 70% reduction on January 1, 1999.
BM - tariff to be eliminated according to B staging. For
joint Mexican-U.S. production (goods subject to paragraph 8 of
Annex 402.2 of the Agreement), phasing to start from the MFN
rate.
ABM - tariff to be eliminated immediately. For goods
subject to paragraph 8 of Annex 402.2 of the Agreement, tariff to
be eliminated according to B staging and phasing to start from
the MFN rate.
ACM - tariff to be eliminated immediately. For goods
subject to paragraph 8 of Annex 402.2 of the Agreement, tariff to
be eliminated according to C staging and phasing to start from
the MFN rate.
CM - tariff to be eliminated according to C staging. For
goods subject to paragraph 8 of Annex 402.2 of the Agreement,
phasing to start from the MFN rate.
Ca - tariff to be eliminated in 10 stages as follows: 50%
reduction on January 1, 1994; remaining 50% to be eliminated in
nine equal annual stages ending January 1, 2003. (Applies to
passenger vehicles in heading 8703.)
C10 - tariff to be eliminated in nine stages as follows: 20%
reduction on January 1, 1994; no reduction year 2; remaining 80%
to be reduced in eight annual equal stages ending January 1,
2003. (Applies to one footwear item for Canada, numerous
footwear items for the U.S. and Mexico, several items in heading
3204 (paints and dyes) for the U.S. and Mexico, and several U.S.
ceramic items.)
Cm - tariff to be eliminated in three stages as follows: 40%
reduction on January 1, 1994; freeze years 2, 3, and 4; 20%
reduction year 5; freeze years 6, 7, 8, and 9; 40% reduction on
January 1, 2003. (Applies to several Mexican furniture tariff
items.)
C8 - tariff to be eliminated in eight stages as follows: 10%
reduction per year starting January 1, 1994 for seven years; 30%
reduction on January 1, 2001. (Applies to several Mexican and
U.S. glass items.)
Cb+ - tariff to be eliminated in three stages as follows:
30% reduction on January 1, 1994; 20% reduction on January 1,
2000; and 50% reduction on January 1, 2005. (Applies to one U.S.
item for corn brooms.)
C+ - tariff to be eliminated in 15 equal annual stages
starting January 1, 1994 and ending January 1, 2008.
Cz+ - tariff to be eliminated in 13 stages as follows: 20%
reduction on January 1, 1994; freeze years 2 and 3; remaining 80%
to be phased out equally over remaining 12 years ending January
1, 2008. (Applies to several U.S. ceramic items.)
Cq - for the following tariff items, the quantities
specified below imported by Mexico shall enter free of duty. For
quantities above these levels, the rate of duty shall be reduced
according to the staging category C.
From the U.S. From Canada
(metric tonnes)
4401.2101 66,500 3,500
4403.1001 14,250 750
4407.1001 9,500 500
4407.1002 119,700 6,300
4407.1003 950 50
4407.9101 3,325 175
4407.9999 2,470 130
Ctq - tariff to be eliminated in ten equal stages begining
on January 1, 1994 and accompanied by the application of tariff
rate quotas. (Applies to certain agricultural products).
CAg - tariff to be eliminated in ten stages as follows: six
annual reductions of 4% begining January 1, 1994 the remaining
76% being eliminated in four equal, annual steps ending on
January 1, 2003. (Applies to some Mexican agricultural tariff
items).
C+Ag - tariff to be eliminated in 15 steps as follows: six
annual reductions of 4% begining January 1, 1994 the remaining
76% being eliminated in nine equal, annual steps ending on
January 1, 2008. (Applies to some Mexican agricutural tariff
items).
Sug - refers to special considerations which apply to
certain tariff items for sugar and sugar products as outlined in
notes appended to the draft agreement.
Pro - refers to a small number of Mexican tariff items for
prohibited goods.
The following phasing codes relate to textile tariff
items between the U.S. and Mexico only. They are:
B6 - tariff to be eliminated in six stages as follows: on
January 1, 1994 a reduction equal in percentage terms to the base
rate; six equal annual reductions of 20% of the rate in effect on
January 1, 1994 starting January 1, 1995 and ending January 1,
1999.
Bw - tariff to be eliminated in six stages as follows: rate
of duty on January 1, 1994 will be 15%; on January 1, 1995, rate
of duty will be 14.5%; on January 1, 1996, rate of duty will be
10.8%; on January 1, 1997, 7.2%; on January 1, 1998, 3.6%; and
zero on January 1, 1999.
Bo - tariff to be eliminated in six stages as follows: rate
of duty on January 1, 1994 and January 1, 1995 will be 15%; on
January 1, 1996, the rate of duty will be 12%; on January 1,
1997, rate of duty will be 8%; on January 1, 1998, rate of duty
will be 4% and zero on January 1, 1999.
Bf - tariff to be eliminated in six stages as follows: rate
of duty on January 1, 1994 and January 1, 1995 will be 20%; rate
of duty on January 1, 1996 will be 10%; rate of duty on January
1, 1997 will be 6.6%; rate of duty on January 1, 1998 will be
3.3% and zero on January 1, 1999.
NOTE:The 6-Digit tariff description presented in the
following pages is an abbreviated one. For full
description, see the Candian Customs Tariffs, Revenue
Canada Customs and Excise.