Overview of Conditional Duty Exemptions and Ineligible Commodities under CET

 
LIST OF CONDITIONAL DUTY EXEMPTIONS
(LISTS A AND C) AND THE LIST OF
COMMODITIES INELIGIBLES FOR CONDITIONAL
DUTY EXEMPTIONS ASSOCIATED
WITH THE COMMON EXTERNAL TARIFF (CET)
 
Ms. Bevon McDonald
Director of Foreign Trade (ag.)
 
The Harmonized System:
 
Classification structure of the Schedule of Rates is based on the 2017 6
th
  edition
Harmonized Commodity Description and Coding System, commonly known as the
Harmonized System (HS)
 which is administered by the World Customs Organisation (WCO)
.
 Statistical Classification Numbers are based on the Standard International Trade
Classification, Fourth Revision.
Is a multipurpose 6-digit international commodity  classification system used by
governments, international organizations, and private sector, as a basis for customs tariffs,
international trade statistics, freight rates and production statistics. It is used worldwide by
over 180 countries, representing 98% of goods in international trade
.
Guyana currently uses HS 2017 and will be moving to HS2022 from July 1
st
.
 
The Harmonized System cont’d
 
R
ates of duty shown in the Schedule of Rates is applicable to imports from third
countries
, 
into 
CARICOM
 as well as to goods traded among 
CARICOM 
Member
States which do not qualify for Community treatment.
 In the Schedule of Rates, the letters A, C and D appear in the column headed rate
of
 
duty and 
signify that reference should be made to one of the Lists, A, C and D,
for 
the agreed Common External Tariff (CET) rates as well as the rates which the
individual Member States will be applying pursuant to decisions taken by the
Council for Trade and Economic Development
 (COTED)
.
The HS consists of 21 Sections, divided into 97 Chapters which comprise about
5,000 commodity classes.
 
List of Conditional Duty
Exemption
 
S
ets out those goods which, when imported for
 the purposes stated in the
List, may be admitted into the importing Member State free of import duty
or at a rate lower than that set down in the Schedule of Rates, subject
always to the approval of the relevant Competent Authority of the Member
State.
In Part I of the List of Items Ineligible for Duty Exemption are set down those
items which will not be eligible for the grant of exemption from duty (in
whole or in part) where they are imported "For use in Industry, Agriculture,
Fisheries, Forestry and Mining" (Section I of the List of Conditional Duty
Exemptions).
At the same time, the  items set down in Parts I and II of the List of Items
Ineligible for Duty Exemption will not be eligible for the grant of exemption
from duty (in whole or in part) where they are imported "For Other
Approved Purposes" (Section XI of the List of Conditional Duty Exemptions),
except where the items have been made available as gifts or on a
concessionary basis.
 
RULES
GOVERNING
THE
APPLICATION
OF THE LIST OF
CONDITIONAL
DUTY
EXEMPTIONS
 
1. A Member State may refuse to grant full
duty exemption for any good eligible therefor
under the List and may choose instead to
apply a level of import tariff on such good not
higher than that provided in the Schedule of
Tariff Rates.
2. In a number of cases (for example, in
connection with shipping and aircraft, for
health, governmental, social and cultural
purposes), while the scope of the duty
exemption has been specified, each Member
State is free to approve the beneficiaries
(whether the individual, the institution or the
organisation) of the exemption.
 
RULES
GOVERNING THE
APPLICATION OF
THE LIST OF
CONDITIONAL
DUTY
EXEMPTIONS
(cont’d)
 
3. The reference in the List to goods for the use of
international organisations or their personnel is
understood to include inter-governmental organisations
operating within the Community pursuant to an
agreement in force between such organisations and the
Government of one or more Member States.
4. (a) Where the goods produced by an enterprise do not
meet the qualifying conditions set down with respect to
those goods in Schedule I of Article 84 of the Revised
Treaty, that enterprise will not qualify for exemption from
duty with regard to the materials utilised in the production
of those goods.
(b) This Rule will not apply to goods which are produced
for export to third countries.
(c) The Rule will have effect only with regard to
concessions approved following entry into force
 
RULES
GOVERNING THE
APPLICATION OF
THE LIST OF
CONDITIONAL
DUTY
EXEMPTIONS
(cont’d)
 
5. (a) The items set down in Part I of the List of Ineligibles
appended to this List of Conditional Duty Exemptions
shall not be eligible for exemption or reduction of duty
where they are imported for use in Industry, Agriculture,
Forestry, Fisheries and Mining, except:
- when the item is imported for use in new investment or
substantial expansion; or
- when the item is provided by a country or an
international institution in the context of development
finance with a view to assisting the economic development
of the importing Member
State, and when the agreement between the importing
Member State and the donor country or international
institution requires sourcing from a particular extra-
regional source on a concessional duty basis.
 
RULES
GOVERNING THE
APPLICATION OF
THE LIST OF
CONDITIONAL
DUTY
EXEMPTIONS
(cont’d)
 
(b) The items set down in Part I and Part II
of the List of Ineligibles appended to this List
of Conditional Duty Exemptions shall not be
eligible for exemption or reduction of duty
where they are imported for use in the
circumstances contemplated in Section XI -
For Other Approved Purposes (excluding 23
- Goods [including foodstuff] imported for
used in rehabilitation or relief following
natural disaster, as approved by the
Competent Authority), except that this
ineligibility will not apply where the
Competent Authority is satisfied that the
items are gifts or have been provided on a
concessional basis.
 
LIST OF CONDITIONAL DUTY EXEMPTIONS
 
LIST OF
CONDITIONAL
DUTY
EXEMPTIONS
(cont’d)
 
VI – FOR HEALTH
VII – FOR GOVERNMENT AND
GOVERNMENTAL PURPOSES
VIII - FOR MILITARY FORCES
IX - FOR DIPLOMATIC MISSIONS,
INTERNATIONAL ORGANISATIONS
AND PERSONNEL
 X – FOR THE MOVEMENT OF
PERSONS
 XI – FOR OTHER APPROVED
PURPOSES
 
List of
Ineligibles
 
The List of Items Ineligible for Duty Exemption
includes those items produced within CARICOM
in quantities which are considered adequate to
justify the application of tariff protection. These
items will not be eligible for the grant of
exemption from duty (in whole or in part) where
they are imported for use in Industry,
Agriculture, Fisheries, Forestry and Mining.
Part I of the List of Items Ineligible for Duty
Exemption are set down those items which will
not be eligible for the grant of exemption from
duty (in whole or in part) where they are
imported "For use in Industry, Agriculture,
Fisheries, Forestry and  Mining" (Section I of the
List of Conditional Duty Exemptions).
 
List of
Ineligibles
(cont’d)
 
At the same time, the items set down in Parts
I and II of the List of Items Ineligible for
Duty Exemption will not be eligible for the
grant of exemption from duty (in whole or in
part) where they are imported "For Other
Approved Purposes" (Section XI of the List
of Conditional Duty Exemptions), except
where the items have been made available as
gifts or on a concessionary basis
 
L
i
s
t
s
 
A
 
a
n
d
 
C
 
List A - 
A list of items on which suspension of the rates
of duty in the Schedule of Rates under Article 83 of the
Revised Treaty has been granted to Member States for
an indefinite period subject to review by the COTED,
with the rates to be applied by Member States;
 
List C 
- A list of items in respect of which minimum
rates of duty have been agreed by the COTED, with the
actual rates of duty to be applied by individual Member
States;
 
L
i
s
t
 
D
 
Part I
 - Products of Tariff Headings ex
73.21, ex 84.18 and ex 85.16 for which
Suspension of the CET under Article 83
of the Revised Treaty has been granted to
Belize for an unspecified period
 
Part II
 - Products of Tariff Headings ex
30.03 and ex 30.04 (Medicaments) for
which Suspension of the CET under
Article 83 of the Revised Treaty has been
granted to St. Kitts and Nevis, other
OECS Member States and Belize
 
 
Comments,
questions...
 
Thank you!
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The Harmonized System, administered by the WCO, forms the basis for the Schedule of Rates in the CET. Conditional Duty Exemptions allow goods to be imported duty-free or at reduced rates for specific purposes, subject to approval. Certain commodities are deemed ineligible for duty exemptions, based on their designated end-use. Member States have the authority to decide on duty exemptions and tariff rates in alignment with CET provisions.


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  1. LIST OF CONDITIONAL DUTY EXEMPTIONS (LISTS A AND C) AND THE LIST OF COMMODITIES INELIGIBLES FOR CONDITIONAL DUTY EXEMPTIONS ASSOCIATED WITH THE COMMON EXTERNAL TARIFF (CET) Ms. Bevon McDonald Director of Foreign Trade (ag.)

  2. The Harmonized System: Classification structure of the Schedule of Rates is based on the 2017 6thedition Harmonized Commodity Description and Coding System, commonly known as the Harmonized System (HS) which is administered by the World Customs Organisation (WCO). Statistical Classification Numbers are based on the Standard International Trade Classification, Fourth Revision. Is a multipurpose 6-digit international commodity classification system used by governments, international organizations, and private sector, as a basis for customs tariffs, international trade statistics, freight rates and production statistics. It is used worldwide by over 180 countries, representing 98% of goods in international trade. Guyana currently uses HS 2017 and will be moving to HS2022 from July 1st.

  3. The Harmonized System contd Rates of duty shown in the Schedule of Rates is applicable to imports from third countries, into CARICOM as well as to goods traded among CARICOM Member States which do not qualify for Community treatment. In the Schedule of Rates, the letters A, C and D appear in the column headed rate of duty and signify that reference should be made to one of the Lists, A, C and D, for the agreed Common External Tariff (CET) rates as well as the rates which the individual Member States will be applying pursuant to decisions taken by the Council for Trade and Economic Development (COTED). The HS consists of 21 Sections, divided into 97 Chapters which comprise about 5,000 commodity classes.

  4. List of Conditional Duty Exemption Sets out those goods which, when imported for the purposes stated in the List, may be admitted into the importing Member State free of import duty or at a rate lower than that set down in the Schedule of Rates, subject always to the approval of the relevant Competent Authority of the Member State. In Part I of the List of Items Ineligible for Duty Exemption are set down those items which will not be eligible for the grant of exemption from duty (in whole or in part) where they are imported "For use in Industry, Agriculture, Fisheries, Forestry and Mining" (Section I of the List of Conditional Duty Exemptions). At the same time, the items set down in Parts I and II of the List of Items Ineligible for Duty Exemption will not be eligible for the grant of exemption from duty (in whole or in part) where they are imported "For Other Approved Purposes" (Section XI of the List of Conditional Duty Exemptions), except where the items have been made available as gifts or on a concessionary basis.

  5. 1. A Member State may refuse to grant full duty exemption for any good eligible therefor under the List and may choose instead to apply a level of import tariff on such good not higher than that provided in the Schedule of Tariff Rates. RULES GOVERNING THE APPLICATION OF THE LIST OF CONDITIONAL DUTY EXEMPTIONS 2. In a number of cases (for example, in connection with shipping and aircraft, for health, governmental, social and cultural purposes), while the scope of the duty exemption has been specified, each Member State is free to approve the beneficiaries (whether the individual, the institution or the organisation) of the exemption.

  6. 3. The reference in the List to goods for the use of international organisations or their personnel is understood to include inter-governmental organisations operating within the Community pursuant to an agreement in force between such organisations and the Government of one or more Member States. RULES GOVERNING THE APPLICATION OF THE LIST OF CONDITIONAL DUTY EXEMPTIONS (cont d) 4. (a) Where the goods produced by an enterprise do not meet the qualifying conditions set down with respect to those goods in Schedule I of Article 84 of the Revised Treaty, that enterprise will not qualify for exemption from duty with regard to the materials utilised in the production of those goods. (b) This Rule will not apply to goods which are produced for export to third countries. (c) The Rule will have effect only with regard to concessions approved following entry into force

  7. 5. (a) The items set down in Part I of the List of Ineligibles appended to this List of Conditional Duty Exemptions shall not be eligible for exemption or reduction of duty where they are imported for use in Industry, Agriculture, Forestry, Fisheries and Mining, except: RULES GOVERNING THE APPLICATION OF THE LIST OF CONDITIONAL DUTY EXEMPTIONS (cont d) - when the item is imported for use in new investment or substantial expansion; or - when the item is provided by a country or an international institution in the context of development finance with a view to assisting the economic development of the importing Member State, and when the agreement between the importing Member State and the donor country or international institution requires sourcing from a particular extra- regional source on a concessional duty basis.

  8. (b) The items set down in Part I and Part II of the List of Ineligibles appended to this List of Conditional Duty Exemptions shall not be eligible for exemption or reduction of duty where they are imported for use in the circumstances contemplated in Section XI - For Other Approved Purposes (excluding 23 - Goods [including foodstuff] imported for used in rehabilitation or relief following natural disaster, as approved by the Competent Authority), except that this ineligibility will not apply where the Competent Authority is satisfied that the items are gifts or have been provided on a concessional basis. RULES GOVERNING THE APPLICATION OF THE LIST OF CONDITIONAL DUTY EXEMPTIONS (cont d)

  9. LIST OF CONDITIONAL DUTY EXEMPTIONS I FOR INDUSTRY, AGRICULTURE, FISHERIES, FORESTRY ANDMINING II FOR PURPOSES CONNECTED WITH TOURISM III FOR SHIPPING IV FOR APPROVED PURPOSES CONNECTED WITH AIRCRAFT V FOR EDUCATIONAL AND CULTURAL PURPOSES V.1 FOR CULTURAL PURPOSES V.2 FOR EDUCATIONAL PURPOSES

  10. VI FOR HEALTH VII FOR GOVERNMENT AND GOVERNMENTAL PURPOSES VIII - FOR MILITARY FORCES LIST OF CONDITIONAL DUTY EXEMPTIONS (cont d) IX - FOR DIPLOMATIC MISSIONS, INTERNATIONAL ORGANISATIONS AND PERSONNEL X FOR THE MOVEMENT OF PERSONS XI FOR OTHER APPROVED PURPOSES

  11. The List of Items Ineligible for Duty Exemption includes those items produced within CARICOM in quantities which are considered adequate to justify the application of tariff protection. These items will not be eligible for the grant of exemption from duty (in whole or in part) where they are imported for use in Industry, Agriculture, Fisheries, Forestry and Mining. Part I of the List of Items Ineligible for Duty Exemption are set down those items which will not be eligible for the grant of exemption from duty (in whole or in part) where they are imported "For use in Industry, Agriculture, Fisheries, Forestry and Mining" (Section I of the List of Conditional Duty Exemptions). List of Ineligibles

  12. At the same time, the items set down in Parts I and II of the List of Items Ineligible for Duty Exemption will not be eligible for the grant of exemption from duty (in whole or in part) where they are imported "For Other Approved Purposes" (Section XI of the List of Conditional Duty Exemptions), except where the items have been made available as gifts or on a concessionary basis List of Ineligibles (cont d)

  13. Lists A and C Lists A and C List A - A list of items on which suspension of the rates of duty in the Schedule of Rates under Article 83 of the Revised Treaty has been granted to Member States for an indefinite period subject to review by the COTED, with the rates to be applied by Member States; List C -A list of items in respect of which minimum rates of duty have been agreed by the COTED, with the actual rates of duty to be applied by individual Member States;

  14. Part I - Products of Tariff Headings ex 73.21, ex 84.18 and ex 85.16 for which Suspension of the CET under Article 83 of the Revised Treaty has been granted to Belize for an unspecified period List D List D Part II - Products of Tariff Headings ex 30.03 and ex 30.04 (Medicaments) for which Suspension of the CET under Article 83 of the Revised Treaty has been granted to St. Kitts and Nevis, other OECS Member States and Belize

  15. Comments, questions...

  16. Thank you!

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