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Taiwan's Priority Order of Tariff Rate Application

[Taiwan's Priority Order of Tariff Rate Application]





Tariff rate is comparatively determined depending on items, trading partners, and application priority according to type of tariffs. Accordingly, you should not make a hasty conclusion that a specific item has a specific percentage of tariff rate.


Any country adopts the Notification Principle with respect to the adoption of tariff rate and payment of tax. Therefore, a taxpayer may pay customs duty based on high tariff rate even though such person may be eligible for paying tax by applying low tariff rate for his/her own interests(for example, taxpayers may choose the application of basic tariff rate by giving up the benefits of conventional tariff only for the sake of avoiding hassles of obtaining certificate of origin, etc.).

One tariff rate is generally fixed by a HS code, but same HS code doesn't always have the same tariff rate(often, one HS code has more than two tariff rates by kind of items.).

Generally, multiple tariff rates are applicable to specific goods, but only one tariff rate is determined finally. The final tariff rate is determined by comprehensively taking into account application priority by laws and regulations, international agreements, trading partners, and the compliance of export/import requirements.


Priority Order of Tariff Rate Application


Taiwan has no export duty, but only import duty.


Import duty(ad valorem duty) is determined by multiplying dutiable value by tariff rate, and dutiable value of goods imported to Taiwan is based on CIF price.


For tariff rate which is applicable to specific countries, such tariff rate may be applied only when import from such countries has been made.


In case where multiple tariff rates compete for specific goods, the priority order of application is as below(several complicated steps shall be went through to compute actual tariff amount including processes of conversion into local currency, of treatment of a fraction, and of considering specific duty, etc.).


Classification of import tariff rate


Taiwan determines priority order by dividing various import duties into three categories, which is called, column I tariff, column II tariff, and column III tariff.


Column I tariff

This column contains tariffs applied to signatories to WTO and countries or territories with reciprocal relationship with Taiwan.


Column II tariff

This column contains tariffs applied to parties that signed FTA with Taiwan and parties of the Least Developed Country(LDC).


Column III tariff

This column specifies basic tariff rate by each item.


Application priority of tariff rates


In case column I tariff rates and column II tariff rates compete each other for specific goods, lower tariff rate may be applied.


In case where column I tariff rates and column II tariff rates may not be applied, or there is no tariff rate applicable, column III tariff rate may be applied(that is, referring to the case that relevant countries are not pertaining to WTO members, countries or territories with reciprocal relationship with Taiwan, countries applicable to preferential tariff, etc.).


Other Notes


This TCS program provides information, supposing that taxpayers will generally choose the lowest tariff rates.

This TCS program provides information, supposing that more than two tariff rates may be applied simultaneously, and if such tariff rates are the same, a taxpayer has tendency to choose a tariff rate which helps him/her to avoid hassles of business concerned(for example, if both FTA conventional tariff and basic tariff are 0%, a basic tariff which doesn't require certificate of origin may be recommended as final applied tariff under this program.).

This TCS system suggests lower tariff rate and tariff amount in principle if tariff rate varies according to whether specific conditions are complied with or not, supposing that general taxpayers wish to have lower tariff rate be applied by meeting the conditions required as possible as they can.

However, considering that taxpayers may fail to comply with the conditions required, applied tariff and its amount applicable to such circumstance is also available under the TCS program(for example, for FTA tariffs, preferential tariffs for the Least Developed Country, etc. the effects of non-compliance of certificate of origin(C/O) are provided, and if failing to obtain quota for quota tariffs, the effects of failing to obtain quota.).


This TCS program provides automated system for application priority of tariff rates, selection of final tariff rate, calculation of tariff amount, etc. by precisely analyzing laws and regulations of countries concerned. However, it doesn't contain some tariffs such as retaliatory tariff, anti-dumping tariff, and countervailing tariff, temporarily applicable to specific countries and enterprises.

This TCS system provides charts relating to kind of tariff rates and their tariff amounts, and tariff rate finally selected and its tariff amount(click competitive tariff button!). 

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