The Evolution of Three-Columned Customs Import Tariff Schedule

By Dept. of Tariff and Legal Affairs, CA

In September 1980, the Customs Act and Customs Import Tariff Schedule were amended, splitting the import tariff rate column into two columns. The tariff rates listed in the Column II apply to the import goods from countries or territories that are in a reciprocal relationship with the Republic of China; those in the Column I apply to the import goods from the countries or territories excluded from Column II.

To implement the Free Trade Agreements (FTAs) or Economic Cooperation Agreements (ECAs) concluded with other countries, and offer tariff free treatment on partial products from the Least Developed Countries (LDCs) later on, the previous two-columned schedule might not cope with the new situation appropriately any more, thus the Ministry of Finance drafted the bill of amendment to the Customs Import Tariff Schedule in 2003, modifying the two-columned tariff rates to a three-columned one, which intended to offer better preferential treatment for certain countries and territories. The bill was promulgated by the president on Dec. 17 2003. Since then, the Column I tariff rates have been applying to import goods from members of the World Trade Organization, countries and territories in a reciprocal relationship with our country; Column II applying to certain import goods from certain underdeveloped countries or territories and those having concluded a FTA with our country; Column III applying to the import goods from elsewhere than the countries or territories included in Column I and II.

The above amendment to the schedule was shifting the previous Column I rates to Column III, Column II to Column I and inserting a new Column II, so as to make preparations for offer of tariff free treatment on partial products from the LDCs and the implementation of the FTAs or ECAs with other countries. It was merely a column shifting, without making any change to the import tariff rates being applied to all the countries and territories.