16 iii tariffs 1 the united states levies customs

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the panel report was adopted in July 2003. 16 (iii) Tariffs 1. The United States levies customs duties on imports on the basis of their f.o.b. value at the point of export. The tariff consists of 10,297 tariff lines in Chapters 1 to 97 at the Harmonized Commodity Description and Coding System (HS) 8-digit level. 17 The 8-digit provisions may be subdivided to distinguish products for non-tariff purposes (e.g. to monitoring import quotas on textiles and clothing), and such subdivisions are given two additional digits. 2. The tariff is presented in two columns. "General", most-favoured-nation (MFN) rates, referred to in U.S. provisions as normal trade relations tariff treatment, are in Column 1, as are the "special" rates applicable to imports under most preferential programmes. Column 2 lists the statutory rates enacted by the Smoot-Hawley Tariff of 1930, which are applied to imports from countries to which the United States does not grant MFN treatment (see below). 3. Chapter 98 contains 172 tariff lines of special classification provisions, including eligibility conditions for duty-free treatment of otherwise dutiable items. Among other things, Chapter 98 contains the recently enacted tariff provisions for African and Caribbean countries under the African Growth Opportunity Act (AGOA) and Caribbean Basin Partnership Act (CBTPA). Temporary modifications to import duties (e.g. duty suspensions, sanctions pursuant to trade disputes) and safeguard measures (section (ii) below) are contained in Chapter 99. (a) MFN trading partners 1. The United States applies MFN tariff treatment to all but one WTO Member – Cuba. In addition, the Democratic People's Republic of Korea, Laos, and Serbia and Montenegro do not to receive MFN tariff treatment from the United States; however there is legislation pending to grant MFN status to Serbia and Montenegro. MFN Status for Afghanistan was restored on 2 June 2002. 18 2. Under the provisions of Title IV of the Trade Act of 1974, also known as the Jackson-Vanik amendment, the President is required to deny MFN tariff treatment to any non-market economy that was not eligible for such treatment in 1974 and that he determines denies or seriously restricts or burdens its citizens’ right to emigrate. Terminating the application of Title IV, and accordingly granting MFN treatment to a given country, requires the enactment of a law. Accordingly, pursuant to Public Law 106-286, on 27 December 2001 the U.S. President issued a proclamation extending permanent MFN status to China, effective 1 January 2002. 19 15 U.S. Department of the Treasury online information. Available at: http://www.customs.ustreas.gov/ nafta/docs/us/amendments_annex_401.doc. 16 WTO documents WT/DS243/R, 20 June 2003 and Corr.1. 17 Tariff and trade data are accessible from the United States International Trade Commission online information. Available at: http://dataweb.usitc.gov.
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