Chapter 1 : Tariffs[1]

Objective

APEC economies will achieve free and open trade in the Asia-Pacific region by:

a.                   progressive reduction of tariffs until the Bogor goals are fully achieved; and

b.         ensuring the transparency of APEC economies’ respective tariff regimes.

Guidelines

Each APEC economy will:

a.                   take into account, in the process of achieving the above objective, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region;

b.                  ensure that the achievement of the above objective is not undermined by the application of unjustifiable measures; and

c.                   consider extending, on a voluntary basis, to all APEC economies the benefits of tariff reductions and eliminations derived from sub-regional arrangements

Collective Actions

APEC economies will:

a.                   participate and ensure the expeditious supply and updates of the WTO Integrated Database and any other APEC databases;

b.                  arrange for seminars and/or workshops on industrial tariffs negotiations in consultation with international organisations, where appropriate,  including  WTO Secretariat on WTO Integrated Tariff Database; and

c.                   study lessons from modalities for tariff reduction and elimination in regional arrangements.

The current CAP relating to tariffs can be found in the Tariffs and Non-Tariff Measures Collective Action Plan

Chinese Taipei’s Approach to Tariffs in 2002

The Customs Import Tariff Schedule of Chinese Taipei was created based on “The Harmonized Commodity Description and Coding System” (“HS”) of the Customs Cooperation Council.  The current Schedule, which is based on HS 1996, took effect on June 1, 1997.  As the Schedule shows, import tariff rates are assigned to goods coded with 8-digit tariff numbers.  There are 8,688 tariff divisions and 98% of the Schedule are on ad valorem basis.  The Customs Tariff Regime of Chinese Taipei is highly transparent, with an average nominal tariff rate of 7.01% and one hundred per cent of Chinese Taipei’s tariff lines are bound. The tariff rates of Chinese Taipei are fairly low, compared with those of other APEC member economies.

Chinese Taipei is not a party to any regional or bilateral free trade agreements.  Tariff rates in the Schedule are divided into two columns: the first column applies to goods imported from countries and areas in general, and the second column applies to goods imported from countries and areas that accord reciprocal treatment to Chinese Taipei.  Currently, the second column applies to 172 countries and areas, including the 143 member economies of WTO.

Tariff Liberalization Following the Bogor Declaration

In order to implement the Bogor Declaration and to reach the goals of trade liberalization and facilitation set out in the Osaka Action Agenda, Chinese Taipei has taken the following steps of tariff liberalization since 1996:

1.         Amended the Schedule by reducing the tariff rates of 350 items of agricultural goods and 780 items of industrial goods.  With a 14.78% tariff rate reduction, the amendment was drafted in November 1996 and took effect on June 19, 1998.  

2.         Started to implement Chinese Taipei’s commitment to the Ministerial Declaration on Trade in Information Technology Products on July 1, 1997.  Of the 289 items of IT products subject to staged reduction to 0%, 274 items, including electronic components, IC process equipment and testing instruments, would be subject to  four equal tariff cuts by 2000.  Another 15 items, including fiber optic cables, communications products, etc., are subject to staged reduction to 0% by 2002.  Chinese Taipei has now finished the implementation; all ITA products enter Chinese Taipei duty-free. 

3.          In order to implement the concession commitments for accession into the WTO, Chinese Taipei has amended the rates of more than 4,000 tariff lines, effective on January 1, 2002. The average nominal rate of all products is reduced from 8.17% in 2001 to 7.01% in 2002. The average nominal rate of agricultural products is reduced from 20.02% to 14.01%, and to 12.86% in 2011, with 36% tariff rate reduction. The average nominal rate of industrial products is reduced from 6.03% to 5.78%, and to 4.15% in 2007, with 31.18% tariff rate reduction.

4.          Chinese Taipei has adopted tariff rate quota system on passenger cars and chassis and 22 agricultural commodities, which were originally subject to import restriction. The 22 agricultural commodities include red beans, liquid milk, peanuts, garlic, dried forest mushrooms, dried day lilies, young coconuts, betel nut, pineapples, mangoes, shaddock, persimmons, longans, sugar, mackerel, carangid, sardines, chicken, pork bellies, offal (including red meat offal, poultry offal, and deer velvet), fresh pears, and bananas.

5.In order to simplify the customs clearance procedures and help reduce the administrative cost of the Customs and the operation cost of importers, Chinese Taipei has implemented de minimis measure since October 1, 1998. The measure was furthur reviewed to cope with the need for our WTO accession. From January 1, 2002, We grant exemption on tariff, business tax, commodity tax, tobacco and alcohol tax, and the health and welfare surcharge to imported goods for which the duty-paying value is less than NT$3000. However, the above exemption doesn’t apply to contraband, controlled goods, and agricultural goods that are subject to tariff rate quota system.

Bound Tariffs

In order to implement the concession commitment for accession into the WTO, Chinese Taipei has bound 100% tariff lines.

We have bound 100% tariff lines at commitment rate.

If there are any questions, please contact Department of Customs Administration Ministry of Finance.

TEL︰(02)2322-8217

E-mail address︰ bsbau@mail.mof.gov.tw

No further action taken.

Applied Tariffs

In order to implement the concession commitments for accession into the WTO, Chinese Taipei has amended the rates of more than 4,000 tariff lines, effective on January 1, 2002.

The average nominal rate of all goods is reduced form 8.17% in 2001 to 7.01% in 2002.

The average nominal tariff rate of all products :7.01%

The average nominal tariff rate of agricultural products:14.01%

The average nominal tariff rate of industrial products :5.78%

 If there are any questions, please contact Department of Customs Administration Ministry of Finance.

TEL︰(02)2322-8217

E-mail address︰ bsbau@mail.mof.gov.tw

Taking into account its own economic and industrial development policy as well as its concession commitments to WTO, Chinese Taipei has planned further improvement as  follows:

l         by 2005

A tariff rate of 5% or less will be applied to 5100 items, or 60.7% of the Schedule. 2300 items, or 27.4% of the Schedule, will be tariff free.

l         by 2010

A tariff rate of 5% or less will be applied to 5500 items, or 65.5% of the Schedule.  2799 items, or 32.2% of the Schedule, will be tariff free.

Tariff Quotas

In order to comply with WTO liberalization regulation, Chinese Taipei has adopted tariff rate quota system on passenger cars and chassis and 22 agricultural commodities, which were originally subject to import restriction.

Agricultural products subject to tariff rate quotas include: red beans, liquid milk, peanuts, garlic, dried forest mushrooms, dried day lilies, young coconuts, betel nut, pineapples, mangoes, shaddock, persimmons, longans, sugar, mackerel, carangid, sardines, chicken, pork bellies, red meat offal, poultry offal, deer velvet, fresh pears, and bananas.

Industrial products subject to tariff quotas include passenger cars (including cars which accommodate nine passengers or fewer, and trucks with a total weight of less than 3.5 tons) and chassis.

If there are any questions, please contact Department of Customs Administration Ministry of Finance.

TEL︰(02)2322-8217

E-mail address︰ bsbau@mail.mof.gov.tw

The tariff rate quota system on chicken, pork bellies, red meat offal, and poultry offal will be abolished on January 1, 2005.

The tariff rate quota system on mackerel, carangid, sardines, and persimmons will be abolished in 2008.

The tariff rate quota system on passenger cars and passenger car chassis will be abolished in 2010.

Tariff Preferences

NIL

If there are any questions, please contact Department of Customs Administration Ministry of Finance.

TEL︰(02)2322-8217

E-mail address︰ bsbau@mail.mof.gov.tw

Chinese Taipei is studying the possibility of providing preferential tariff treatment for least developed countries.

Transparency of Tariff Regime

NIL

1.  Information such as forms of tariff (ad valorem, specific or compound rates) and rates of first and second columns are clearly listed in Customs Import Tariff.

2.    Any changes to Customs Import Tariff would be published in the Ministry of Finance (MOF) Gazette and made known to the public through MOF inquiry services.

3.  A combined volume of “Customs Import Tariff and Classification of Import & Export Commodities” is published.

Above information is put on Chinese Taipei’s Customs Site︰ http://www.dgoc.gov.tw.

No further action planned.

Bound Tariffs

NIL

In order to implement the concession commitment for accession into the WTO, Chinese Taipei has bound 100% tariff lines.

Applied Tariffs

Average nominal tariff rate︰8.64％

In order to implement the concession commitments for accession into the WTO, Chinese Taipei has amended the rates of more than 4,000 tariff lines, effective on January 1, 2002.

The average nominal rate of all goods is reduced form 8.17% in 2001 to 7.01% in 2002.

Tariff Quotas

NIL

In order to comply with WTO liberalization regulation, Chinese Taipei has adopted tariff rate quota system on passenger cars and chassis and 22 agricultural commodities, which were originally subject to import restriction.

Tariff Preferences

NIL

NIL

Transparency of Tariff Regime

NIL

1. Information such as forms of tariff (ad valorem, specific or compound rates) and rates of first and second columns are clearly listed in Customs Import Tariff.

2. Any changes to Customs Import Tariff would be published in the Ministry of Finance (MOF) Gazette and made known to the public through MOF inquiry services.

3. A combined volume of “Customs Import Tariff and Classification of Import & Export Commodities” has been published.

4. Above information is put on Chinese Taipei’s Customs Site︰ http://www.dgoc.gov.tw.

APEC INDIVIDUAL ACTION PLAN:  TARIFF SUMMARY REPORT FOR 2002

(PLEASE COMPLETE BOXES)

All Goods

Agriculture excluding Fish

Fish and Fish Products

Petroleum Oils

Wood, Pulp, Paper and Furniture

Textiles and Clothing

Leather, Rubber, Footwear and Travel Goods

Metals

Chemical & Photographic Supplies

Transport Equipment

Non-Electric Machinery

Electric Machinery

Mineral Products, Precious Stones & Metals

Manufactured Articles, n.e.s

ITEM

Bound tariff lines as a percentage of all lines

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Duty-free tariff lines as a percentage of all lines

18.80%

3.99%

0.13%

0.04%

1.00%

0.27%

0.31%

2.10%

2.84%

0.57%

1.55%

2.09%

2.14%

1.79%

Preferential tariff lines as a percentage of all lines

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Ratio of tariff lines with quotas to all lines

0.36%

0.35%

-

-

-

-

-

-

-

0.01%

-

-

-

-

Simple average bound tariff rate

7.01%

12.13%

20.26%

6.36%

4.28%

10.16%

5.97%

5.91%

3.79%

11.12%

4.07%

5.46%

3.60%

4.82%

Simple average applied tariff rate

7.01%

12.13%

20.26%

6.36%

4.28%

10.16%

5.97%

5.91%

3.79%

11.12%

4.07%

5.46%

3.60%

4.82%

Simple average applied preferential tariff rate - indicate for each preferential arrangement

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Average applied tariff rate for all lines subject to duty

8.46%

16.38%

21.49%

7.27%

5.48%

10.37%

6.86%

7.31%

4.49%

14.31%

4.85%

7.67%

6.29%

6.15%

Import-weighted average applied tariff rate - specify FOB

or CIF

2.41%

7.81%

11.09%

0.25%

2.51%

8.43%

5.44%

2.86%

3.50%

6.54%

2.03%

0.96%

0.95%

2.16%

Import-weighted average bound tariff rate - specify FOB

or CIF

2.41%

7.81%

11.09%

0.25%

2.51%

8.43%

5.44%

2.86%

3.50%

6.54%

2.03%

0.96%

0.95%

2.16%

Notes

1." - "signifies the fact that Chinese Taipei is currently in the process of negotiation for WTO accession, and therefore information relating to bound rates and preferential tariff rate

2. Currently, Chinese Taipei does not have any tariff quotas; but it intends to use tariff quotas as a liberalization measure to replace the existing import control on ceratin products  (e.g. certain agricultural products and passenger cars) after its accession to the WTO.

3. The forms for levying tariffs include ad valorem, specific and compound rate (i.e. applying the higher of the ad valorem rate or the specific rate set for the same product item).

    The calculation of average rate in the present case is based on ad valorem rates (i.e. in the case of compound rate, the ad valorem part is used, and specific rates are not included).

4. Weighted average rates are prepared on the basis of the 2000 trade volume.

5. There may be minor deviations for numbers provided herein, due to the limitaion in computer programming.

APEC INDIVIDUAL ACTION PLAN:  TARIFF DISPERSION TABLE FOR 2002

(PLEASE COMPLETE BOXES)

All Goods

Agriculture excluding Fish

Fish and Fish Products

Petroleum Oils

Wood, Pulp, Paper and Furniture

Textiles and Clothing

Leather, Rubber, Footwear and Travel Goods