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- DRAFT
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- NAFTA TARIFF PHASING DESCRIPTIONS
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- 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.
-
-
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-
- 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.
-