Canada-Chile Free Trade Agreement

Legend for use with Canadian Tariff Schedule

Tariff Elimination - Staging Category Descriptions

The following staging categories apply to the elimination of customs duties:

1. Duties on goods provided for in the items of staging category A- shall be reduced by the following percentages of the rate shown in the Schedule and such goods shall be duty-free January 1, 1999.

i) Date of Implementation: 33.3 per cent
ii) January 1, 1998: 66.7 per cent
iii) January 1, 1999:100 per cent

2. Duties on goods provided for in the items of staging category B- shall be reduced by the following percentages of the rate shown in the Schedule and such goods shall be duty-free January 1, 2001.

i) Date of Implementation: 14.3 per cent
ii) January 1, 1998: 28.6 per cent
iii) January 1, 1999: 42.9 per cent
iv) January 1, 2000: 57.1 per cent
v) January 1, 2001: 100 per cent

3. Duties on goods provided for in the items of staging category B-* shall be reduced by the following percentages of the rate shown in the Schedule and such goods shall be duty-free January 1, 2001.

i) Date of Implementation: 20 per cent
ii) January 1, 1998: 40 per cent
iii) January 1, 1999: 60 per cent
iv) January 1, 2000: 80 per cent
v) January 1, 2001: 100 per cent

4. Duties on goods provided for in the items of staging category Ba shall be reduced by the following percentages of the rate shown in the Schedule and such goods shall be duty-free January 1, 2002.

i) Date of Implementation:16.7 per cent
ii) January 1, 1998: 33.3 per cent
iii) January 1, 1999: 50 per cent
iv) January 1, 2000: 66.7 per cent
v) January 1, 2001: 83.3 per cent
vi) January 1, 2002: 100 per cent

5. Duties on goods provided for in the items in staging category B shall be reduced by the following percentages of the rate shown in the Schedule and such goods shall be duty-free January 1, 2003.

i) Date of Implementation: 14.3 per cent
ii) January 1, 1998: 28.6 per cent
iii) January 1, 1999: 42.9 per cent
iv) January 1, 2000: 57.1 per cent
v) January 1, 2001: 71.4 per cent
vi) January 1, 2002: 85.7 per cent
vii) January 1, 2003: 100 per cent

6. Duties on goods provided for in the items of staging category BL shall, for each of the years set out, be determined as follows:

i) Date of Implementation: Rate less 2 percentage points
ii) January 1, 1998: Rate less 4 percentage points
iii) January 1, 1999: Rate less 6 percentage points
iv) January 1, 2000: January 1, 1999 rate less 25 per cent
v) January 1, 2001: January 1, 1999 rate less 50 per cent
vi) January 1, 2002: January 1, 1999 rate less 75 per cent
vii) January 1, 2003: January 1, 1999 rate less 100 per cent

7. Duties on goods provided for in the items of staging category Bn shall, for each of the years set out, be determined as follows:

i) Date of Implementation: Rate less 2 percentage points
ii) January 1, 1998: Rate less 4 percentage points

Bn1

iii) January 1, 1999: 8 per cent
iv) January 1, 2000: 6 per cent
v) January 1, 2001: 4 per cent
vi) January 1, 2002: 2 per cent
vii) January 1, 2003: Free

Bn2

iii) January 1, 1999: 2.6 per cent
iv) January 1, 2000: 1.9 per cent
v) January 1, 2001: 1.3 per cent
vi) January 1, 2002: 0.6 per cent
vii) January 1, 2003: Free

Bn3

iii) January 1, 1999: 9.1 per cent
iv) January 1, 2000: 6.8 per cent
v) January 1, 2001: 4.5 per cent
vi) January 1, 2002: 2.2 per cent
vii) January 1, 2003: Free

Bn4

iii) January 1, 1999: 8.9 per cent
iv) January 1, 2000: 6.7 per cent
v) January 1, 2001: 4.4 per cent
vi) January 1, 2002: 2.2 per cent
vii) January 1, 2003: Free

Bn4*

iii) January 1, 1999: Free

Bn5

iii) January 1, 1999: 8.8 per cent
iv) January 1, 2000: 6.6 per cent
v) January 1, 2001: 4.4 per cent
vi) January 1, 2002: 2.2 per cent
vii) January 1, 2003: Free

Bn6

iii) January 1, 1999: 9.1 per cent
iv) January 1, 2000: 6.8 per cent
v) January 1, 2001: Free

Bn7

iii) January 1, 1999: 5.2 per cent
iv) January 1, 2000: 3.9 per cent
v) January 1, 2001: 2.6 per cent
vi) January 1, 2002: 1.3 per cent
vii) January 1, 2003: Free

Bn8

iii) January 1, 1999: 4.2 per cent
iv) January 1, 2000: 3.1 per cent
v) January 1, 2001: 2.1 per cent
vi)January 1, 2002: 1 per cent
vii) January 1, 2003: Free

8. Duties on goods provided for in the items of staging category Bq shall, for each of the years set out, be determined as follows:

i) Date of Implementation: Rate less 2 percentage points
ii) January 1, 1998: Rate less 4 percentage points
iii) January 1, 1999: Rate less 6 percentage points

Bq1

iv) January 1, 2000: 6.7 per cent
v) January 1, 2001: 4.4 per cent
vi) January 1, 2002: 2.2 per cent
vii)January 1, 2003: Free

Bq2

iv) January 1, 2000: 7.5 per cent
v) January 1, 2001: 5 per cent
vi) January 1, 2002: 2.5 per cent
vii) January 1, 2003: Free

9. Goods (generally dairy, poultry and egg products) provided for in the tariff items noted Y are exempt from tariff elimination provisions.

10. The rate in the Schedule on a good provided for in a tariff item with staging category X1 will be reduced to Free on condition that such good has been removed from the list of products eligible for "simplified duty drawback". The Free rate shall come into effect no later than 120 days after the Government of Chile confirms to the Government of Canada that the good will no longer be on the list of products eligible for "simplified duty drawback" and no later than January 1, 2003.

11. The rate in the Schedule on a good provided for in a tariff item with staging category X2 will be phased-out in six equal stages except that the reduced rate provided for by such phasing shall come into effect only in the year the product ceases to be eligible for "simplified duty drawback". If the product remains eligible for "simplified duty drawback" until 2003, then no tariff phase-out will occur and the tariff will be eliminated on January 1, 2003. The first stage of reduction shall start no later than 120 days after the Government of Chile confirms to the Government of Canada that the product is removed from the list of products eligible for "simplified duty drawback" and, in annual stages, on January 1 of each subsequent year. The item shall be free no later than January 1, 2002 unless the product has not been removed from "simplified duty drawback" by January 1, 2002.

Therefore the phasing referred to above, starting from the rate shown in the Schedule, would be the following:

i) January 1, 1997: 16.7 per cent
ii) January 1, 1998: 33.3 per cent
iii) January 1, 1999: 50 per cent
iv) January 1, 2000: 66.7 per cent
v) January 1, 2001: 83.3 per cent
vi) January 1, 2002: 100 per cent

12. The rate in the Schedule on a good provided for in a tariff item with staging category X3 will be phased-out in equal annual stages on the basis that the rate shall be divided by the number of years between (and including) the year that the product ceases to be eligible for "simplified duty drawback" and 2003 and shall be duty-free on Janaury 1, 2003. The first stage of reduction shall start no later than 120 days after the Government of Chile confirms to the Government of Canada that the product is removed from the list of products eligible for "simplified duty drawback" and, in annual stages, on January 1 of each subsequent year.

13. If Article C-14.4 is invoked for a tariff item, the Most-Favoured-Nation rate in effect on that date shall replace the rate in the Schedule in order to calculate any future tariff reductions.

14. In the event that Canada undertakes, before January 1, 2000, a unilateral reduction of the applied customs duties, the margin of preference for originating goods from Chile shall be adjusted so that it is not less than 2 percentage points for the products subject to a phase-out ending on January 1, 2003 in the Schedule of Canada.

Note: Whenever a tariff reduction is to take place in equal annual stages, the first stage shall be considered to be a full year even if implemented during the year of implementation and all subsequent reductions, unless otherwise provided for, shall take place on January 1 of each subsequent year.