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Tariffs in the database are the final bound most-favored-nation (MFN) tariffs scheduled by World Trade Organization (WTO) members (in- and over-quota tariff rates) and annual applied rates. The final tariff bindings reflect the rate effective after phased implementation of Uruguay Round tariff cuts. As a general rule, developed countries phased in their tariff reductions during 1995-2000, and developing countries were allowed from 1995-2004. In some cases, members scheduled tariff bindings that became effective in 1995.
In cases where a WTO member scheduled tariff-rate quotas (TRQs), the MFN tariff averages were calculated for this database using over-quota tariff averages. Therefore, for countries with TRQs, the tariff averages reflect an average of the final bound rates and over-quota tariff rates. The bound tariffs will be updated after conclusion of the current round of WTO tariff negotiations. Annual applied rates are available for 1995-2001, where available, and are updated annually to reflect most recently available applied tariff data. Data were updated in December 2002.
This documentation describes the agricultural tariff data contained in the database. In particular, it discusses the types of tariffs in the database, the sources of tariff data, commodity coverage, data availability, calculation of tariff rates in ad valorem equivalent terms, and descriptions of regional and commodity aggregates. The data are available in Excel summary spreadsheets and in a searchable database from which custom tables can be developed.
Types of Tariffs
Three types of tariff data are available in the database.
— WTO bound tariffs are the maximum tariff rates that WTO members may impose on imports, as agreed to in the Uruguay Round Agreement on Agriculture. These result from WTO negotiations or accessions that are part of each country's schedule of concessions. If a WTO member raises a tariff above the bound rate, affected countries have the right to retaliate against an equivalent value of the offending country's exports or receive compensation, usually in the form of reduced tariffs of other products they export to the offending country.
— Tariff-rate quotas reflect a two-tiered tariff structure that was established in the Uruguay Round by certain countries for a subset of their imported items. TRQ tariffs are expressed as in-quota tariffs and over-quota tariffs. The lower, in-quota tariff is the rate levied on imports up to a certain quantity level. The higher, over-quota tariff is the rate levied on imports in excess of the quota volume.
— Applied tariffs are annual tariff rates actually published by national customs authorities for duty administration purposes. Applied tariffs may be below or equal to bound tariffs, but may not exceed them.
Tariff Data Sources
The primary source of bound tariff data used in this database are from the Agricultural Market Access Database (AMAD). The most comprehensive collection of available public data on WTO market access, AMAD contains detailed data on WTO tariff and TRQ schedules, TRQ implementation data, imports, applied tariffs, production, consumption, trade, and other information. AMAD contains data on WTO members that account for the majority of world trade in agriculture.
Tariff bindings included in this database for countries not in AMAD are from tariff bindings of the WTO Secretariat. These are reproduced on the CD-ROM "Results of the Uruguay Round," WTO Secretariat (Geneva, Switzerland, 1998). Additional data on applied tariffs are from the United Nations Conference on Trade and Development (UNCTAD), Trade Analysis and Information System (TRAINS) database. UNCTAD TRAINS contains a comprehensive collection of applied tariff data. Applied tariff data for developing countries, where available, are included in this database.
Commodity Coverage
Tariffs included in this database are limited to the commodity categories in
the WTO definition of agriculture. The corresponding commodity coverage is defined
in Annex 1 of the WTO Agreement on Agriculture. This definition includes all
items from chapters 1-24 of the harmonized system, minus chapter 3 (fish and
forestry). Also included are products from other chapters, such as selected
chemicals, fibers, and other substances. Many developing countries that had
not previously scheduled tariff bindings established nearly uniform tariffs
(such as 100 percent) across all commodities in their tariff schedules. In such
cases, for purposes of this database, a 6-digit tariff schedule was constructed
for those countries to reflect the ceiling binding across all commodities in
a country's tariff schedule. For a complete list of the items contained in the
WTO definition of agriculture, see Product Coverage of the WTO Agreement on Agriculture.
Data Availability
The availability of data on tariffs varies by country and type of tariff.
— Countries
for which WTO bound tariffs and tariff-rate quota data are in the ERS database.
— Countries for
which applied tariff data are in the ERS database.
Calculation of Ad Valorem Equivalent Tariffs
In their WTO schedules, members used a variety of formats to specify individual tariff commitments. In most cases, members specified tariffs in ad valorem terms, as a simple percentage of the value of the imported product. However, some countries elected to specify some or all tariffs in specific or other non-ad valorem terms. There are two main two forms of non-ad valorem tariffs: 1) specific tariffs, which define the tariff as a monetary amount per unit of the import, such as cents per liter, and 2) compound tariffs, which describe the tariff as a combination of ad valorem and non-ad valorem rates, such as 12.5 percent plus 2 cents per liter. Before making comparisons of tariff protection across countries and commodities, detailed tariff bindings must be converted into a common percentage format. Calculating ad valorem equivalents (AVEs) of specific or other non-ad valorem tariffs allows aggregation of tariffs across the widest group of commodities and countries.
When a country uses non-ad valorem tariffs, the ability to compare levels
of protection across countries and commodities is complicated. A paper by the
WTO Secretariat, "Ad valorem, specific, and other Tariffs" (AIE/S5, Feb. 6,
1998), addresses issues in calculating AVEs of non-ad valorem tariffs. In order
to calculate AVEs, it is necessary to divide the specific tariff by a price.
Given the lack of data available on prices at the level of detail in the international
Harmonized System (HS) of trade codes and the U.S.
Harmonized Tariff Schedule, AVEs were calculated in this database using
world import unit values as a proxy for prices. The world import unit values
were defined at the 6-digit HS level, which is the most disaggregate level at
which tariff nomenclatures are internationally comparable (for example, 10=cereals,
1005=corn, 1005.90=other corn).
Import unit values were calculated from available data on world imports from all sources (minus EU intra-trade), in value and volume terms, using global trade data from the United Nations Trade Data System (COMTRADE). The import unit values used were for 1995-97, the most recent period available. The world import unit value is expressed, where available, in U.S. dollars for each 6-digit category, in kilograms or pieces. For countries that did not schedule their tariff bindings in U.S. dollars, a final step prior to calculating AVEs was to convert the import unit values for each year into national currencies, and then calculate average import unit values for 1995-97 in national currencies. The exchange rate used in making such conversions was the period average exchange rate for each year, 1995-97.
Data on tariff rates from the tariff schedules of the majority of WTO members are contained in this database, yielding a total of about 91,000 individual tariff lines. Ad valorem equivalent of non-ad valorem tariffs were calculated for about 5,600 tariff lines. AVEs could not be calculated for 387 tariff lines. The majority of the tariff lines for which AVEs were not calculated (198) were in chapter 22 of the HS, which covers beverages, spirits, and vinegar. Duties on many items in this chapter are not specified in terms comparable to world import unit values. Ninety-five of the remaining items for which AVE calculations were not possible pertain to many of the complex tariffs scheduled by Malaysia on products outside chapter 22.
AVEs were calculated at the tariff-line level, whether it be the 4-, 6-, 8-, or 10-digit level, but using import unit values at the 6-digit level. Therefore, when a tariff was scheduled at the 6- or 8-digit level, the import unit value used corresponded to the average world import unit value for each respective 6-digit category. When a tariff was scheduled at the more aggregate 4-digit level, the price used was a simple average of all 6-digit import unit values within each given 4-digit tariff.
Using data from AMAD, the following example shows how an AVE is calculated.
The final bound, over-quota U.S. tariff rate on cheddar cheese, HS 0406.10.28,
is $1.277/kilogram (kg). To calculate the AVE, it is necessary to divide the
specific over-quota tariff by a price, such as the world import unit value for
the 6-digit tariff category. For 1995-97, the average world import unit value
for the 6-digit category 0406.10 was $2.936/kg. The over-quota rate on cheddar
cheese translates to an AVE of 43.5 percent through the following calculation:
$1.277 per kg. / $2.936 per kg. = 0.435 or 43.5 percent.
Descriptions of Regional and Commodity Aggregates
After AVEs are calculated, the next step is to aggregate the tariffs into regional and commodity categories.
— Regional
groupings in the ERS tariff database. Several of the standard tables provide
tariff data aggregated into regional country groupings. This matrix indicates
the countries in each regional group.
— Commodity
categories, commodity groups, and commodity subgroups in the ERS tariff database.
The searchable tariff database allows users to retrieve tariff data at two levels
of commodity aggregation. This matrix identifies commodity groups and subgroups
within each broad commodity category. In the searchable database, users can
search on the custom page for a list of tariffs grouped into the 13 commodity
categories. Within these 13 categories, aggregate average tariffs are available
for 46 major commodity groups. Detailed tariffs within the 46 commodity groups,
in turn, are available for 205 commodity subgroups. Several of the standard
tables also present tariff data in commodity groups or commodity subgroups.
Standard Tables and Charts
The data are summarized in a set of standard tables and charts in Microsoft Excel spreadsheets (*.xls format) designed for the convenience of most users.
Searchable Database
In the custom
tab of this database, more detailed data are available.
— For WTO bound tariffs, users are able to select country(ies), commodity category(ies), and rate types by commodity group and sub-group. The report styles are standard, commodity, country, and rate type.
— For tariff-rate quotas, users are able to select country(ies) and rate types for in-quota and over-quota rates by quota. The report styles are standard, country, and rate type.
— For applied tariffs, users are able to select country(ies), commodity category(ies), and rate types by commodity group and sub-group. The report styles are standard, commodity, country, and rate type.
Tariff data may be displayed in a custom query in any of the following report styles:
— Standard: All data listed as one observation per row.
— Commodity: Data grouped in separate tables, by commodity category.
— Country: Data grouped in separate tables, by country.
— Rate Type: Data grouped in tables by commodity group or subgroup, depending on the user's selection.
Output can be saved as a comma-delimited output file, a tab-delimited output file, or an HTML output file.
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