Annex 3.1 - Stylized Tariff Elimination Staging Categories in DR-CAFTA and the Chile-U.S. FTA

A Comparative Guide to the Chile-United States Free Trade Agreement and the
Dominican Republic-Central America-United States Free Trade Agreement
A STUDY BY THE TRIPARTITE COMMITTEE

Annex 3.1 -
Stylized Tariff Elimination Staging Categories in  DR-CAFTA and the Chile-U.S. FTA

Comparative Study

Table of Contents

DR-CAFTA

CHILE-U.S.

Staging Category

Countries Using
Staging Category (According to Annexes)

Staging Category

Countries Using
Staging Category
(According to Annexes)

(a) Staging category A: immediate elimination
  • (January 1, 2004 for textile/apparel goods to which Article 3.20.1 applies);
 Common (a) Staging category A: immediate elimination; Common
(b) Staging category B: linear removal in 5 years; Common (b) Staging category B: linear removal in 4 years; Common
(c) Staging category C: linear removal in 10 years; Common (c) Staging category C: linear removal in 8 years; Common
(d) Staging category D: linear removal in 15 years; Common (d) Staging category D: linear removal in 10 years; Common
(e) Staging category E:
  • Duties remain at base rates through year 6.
  • Years 7-10, 8.25% annual reduction of base rate.
  • Years 11-15, 13.4% annual reduction of base rate.
  • Duty-free as of year 15;
 Common (e) Staging category E: linear removal in 12 years; Common
(f) Staging category F:

Duties remain at base rates through year 10.

Years 11-20, linear removal in 10 years;

Common (f) Staging category F: continued duty-free treatment; Common
(g) Staging category G: continued duty-free treatment; Common (g) Staging category G:
  • Duties remain at base rates through year 4.
  • Years 5-8, 8.3% reduction each year.
  • Years 9-12, 16.7% reduction each year.

Duty-free as of year 12;

 Common
(h) Staging category H: continued MFN treatment.

 

 

 Common

 

 

 (h) Staging category H:
  • Duties remain at base rates through year two.
  • Years 3-10, linear removal in 8 years;
 Common

 

 

DR-CAFTA

CHILE-U.S.

 

Staging Category

Countries Using
Staging Category(According to Annexes)

Staging Category

Countries Using
Staging Category(According to Annexes)
(i) Staging category I: base rate of duty shall reflect the HTSUS Column 1 Special Rates of Duty designated under the Caribbean Basin Trade Partnership Act (“R”), in effect January 1, 2005.
  • Years 1-2: 2% annual reduction of base rate.
  • Years 3-6: 8% annual reduction of base rate.
  • Years 7-10: 16% annual reduction of base rate.
  • Duty-free as of year 10;
    		•  USA (i)  
    (j) Staging category J: immediate removal in accordance with existing WTO duty-elimination commitments; USA

     

    (j) Staging category J:

    • Duties remain at base rates through year 7.
    • Years 8-12, linear removal in 5 years;
    		 (Not assigned)
    (k) Staging category K: Staging category K: duty-free (and without bond) as of year 1; USA (k) Staging category K: linear removal in 2 years; USA
    (l) Staging category L: shall be subject to the staging obligations set out for the appropriate provision in Chapters 1 to 97 of the US schedule during the tariff elimination period until year 10, at which time such goods shall be free of duty; USA

    (l) Staging category L:

    • Years 1-6, 5% reduction each year.
    • Years 7-9, 10% reduction each year
    • Duty-free as of year 10;
    		 USA

     

    (m) Staging category M:

    • Years 1-2: 2% annual reduction of base rate.
    • Years 3-6: 8% annual reduction of base rate.
    • Year 7-9: 16% annual reduction of base rate.
    • Duty-free as of year 10;
    		 CRI, DOM, GTM, HND, NIC, SLV (m) Staging category M: shall be subject to the staging obligations set forth for the appropriate provision in Chapters 1 to 97 of the US schedule during the tariff elimination period until year 10, at which time such goods shall be free of duty; USA

     
    (n) Staging category N: linear removal in 12 years; CRI, DOM, GTM, HND, NIC, SLV (n) Staging category N: duty-free (and without bond) as of entry into force; USA

     

    (o) Staging category O (as applied by Guatemala, El Salvador, and Honduras):

    • Duties remain at base rates through year 6.
    • Years 7-11, 8% annual reduction of base rate.
    • Years 12-14, 15% annual reduction of base rate.
    • Duty-free as of year 15;
    		 GTM, HND, SLV

    (o) Staging category O:

    • Duties remain at base rates through year 2.
    • Duty-free as of year 3;

     

    		 USA

    (o) Staging category O (as applied by Dominican Republic):

    • Duties remain at base rates through year 6.
    • Years 7-10, 10% annual reduction of base rate.
    • Years 11-14, 12% annual reduction of base rate.
    • Duty-free as of year 15;
    		 DOM  

     

    DR-CAFTA

    CHILE-U.S.

     

    Staging Category

    Countries Using
    Staging Category(According to Annexes)

    Staging Category

    Countries Using
    Staging Category(According to Annexes)

    (p) Staging category P:

    • Duties remain at base rates through year 10
    • Years 11-14, 8.25% annual reduction of base rate.
    • Years 15-17, 16.75% annual reduction of base rate.
    • Duty-free as of year 18;

    GTM, HND, NIC, SLV

     

     

    (p) Staging category P:

    • As of entry into force, duties reduced by 80%.
    • As of year 2, duties reduced by 90%.
    • Duty-free as of year 3;1

     

    CHL

    (q) Staging category Q:

    • Duties reduced to 15 percent in year 1, and remain at 15 percent through year 3.
    • Years 4-8, 6.6% annual reduction of 15 percent tariff.
    • Years 9-14, 9.6% annual reduction of 15 percent tariff.
    • Duty-free as of year 15;
    		 NIC, SLV (q) (Not assigned)

    (r) Staging category R:

    • Duties remain at base rates through year 6.
    • Years 7-15, linear removal in 9 years;
    		 CRI (r) (Not assigned)

    (s) Staging category S:

    • Duties remain at base rates through year 5.
    • Years 6-10, 8% annual reduction of base rate.
    • Years 11-14, 12% annual reduction of base rate.
    • Duty-free as of year 15;

    CRI

     

    		 (s) (Not assigned)

    (t) Staging category T:

    • Duties remain at base rates through year 4.
    • Years 5-9, 8% annual reduction of base rate.
    • Years 10-14, 10% annual reduction of base rate.
    • Duty-free as of year 15;

     

    		 CRI (t) (Not assigned)

    (u) Staging category U:

    • Duties remain at base rates through year 10.
    • Year 11, 13.4% annual reduction of base rate.
    • Years 12-13, 13.3% annual reduction of base rate.
    • Years 14-16, 15% annual reduction of base rate.
    • Duty-free as of year 17;
    		CRI (u) (Not assigned)

    (v) Staging category V:

    • Duties remain at base rates through year 10.
    • Years 11-15, 8% annual reduction of base rate.
    • Years 16-19, 12% annual reduction of base rate.
    • Duty-free as of year 20.
    		 CRI, DOM (v) Staging category V:
    • Duties remain at base rates through year 6.
    • Year 7, duties reduced by 3.3%.
    • Year 8, duties reduced by 21.7%.
    • Year 9, duties reduced by 40.0%.
    • Year 10, duties reduced by 58.3%.
    • Year 11, duties reduced by 76.7%.
    • Duty-free as of year 12.
    		 CHL
    (w) Staging category W: linear removal in 4 years; DOM    

    (x) Staging category X:

    • Duties remain at base rates through year 1.
    • Years 2-5, linear removal in 5 years;
    		 DOM    

    (y) Staging category Y:

    • Years 1-5: 15% annual reduction of base rate.
    • Years 6-9, 5% annual reduction of base rate.
    • Duty-free as of year 10;

    DOM

    (*) Additional staging categories for individual wine products

    1 “If this Agreement enters into force before January 1 of 2004, the rate of duty for such goods shall be reduced by 70 percent in year one and shall be duty free effective January 1 of year four.”

    Annex 3.1 to Chapter 3 Annex 3.2 to Chapter 3

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