The Executive Yuan today approved a draft amendment to the Customs Import Tariff rules that would bring Taiwan up to the latest international trade standards while reducing tariffs on New Zealand imports.
Premier Jiang Yi-huah said the Ministry of Finance (MOF) based the first part of the amendment on the Harmonized Commodity Description and Coding System (HS), a nomenclature scheme used worldwide for classifying traded products. This system was revised in 2012 by the World Customs Organization to reflect technological advances and changes in international trade patterns. The MOF's proposal will harmonize Taiwan's classification system with those of other countries, which would facilitate negotiations on FTAs and economic cooperation pacts. An earlier proposal to change this system had been sent to the Legislative Yuan in November 2012, but that proposal had not yet been approved.
The second part of the amendment would implement tariff reductions on imports from New Zealand, a commitment made by Taiwan under the recently-signed Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu on Economic Cooperation (ANZTEC). Since the list of goods for tariff reduction was created using the HS 2012 classification, the Executive Yuan combined the tariff revisions with the proposal made in November into one new amendment, to be resubmitted to the Legislature.
Amendments to the import tariff rules are summarized below.
1. Relating to HS 2012:
a. Add Group 0308 "Aquatic Invertebrates" to Taiwan's classification system (to match HS coding and classification changes that were aimed at strengthening coordination with the food security early warning data system of the U.N.'s Food and Agriculture Organization).
b. Add Group 3826 "Biodiesel and Mixtures Thereof" (to match HS changes that resulted from advancements in technology).
c. Amend Chapter 30 "Pharmaceutical Products" to separate products that help smokers quit from pharmaceutical products (in line with deletions, changes and clarifications to ensure consistent usage of the HS nomenclature).
2. Relating to New Zealand pact:
a. In the Customs Import Tariff schedule, New Zealand will be included among countries that have signed FTAs or economic cooperation agreements with the ROC. Accordingly, lower tariff rates will apply to 1,813 agricultural goods and 7,115 industrial products from New Zealand.
b. A provision will be added to reduce tariffs on liquid milk products and deer velvet from New Zealand. A liquid milk quota will be administered on a first-come, first-served basis, while a quota on deer velvet will be allocated to importers based on actual amounts they previously imported. Both quotas will be gradually eliminated by the 12th year of the ANZTEC.