Common use of Customs Duties on Imports and Charges Having Equivalent Effect Clause in Contracts

Customs Duties on Imports and Charges Having Equivalent Effect. 1. Customs duties and charges having equivalent effect imposed by each Party on imports of originating goods in the other Party listed in Annexes I.1 and I.2 shall be gradually eliminated as follows: a) category A – upon entry into force of this Agreement; b) category B – in four (4) equal stages, the first one taking place on the date of entry into force of this Agreement and the three (3) following stages at 12-month intervals; c) category C – in eight (8) equal stages, the first one taking place on the date of entry into force of this Agreement and the seven (7) following stages at 12-month intervals; d) category D – in ten (10) equal stages, the first one taking place on the date of entry into force of this Agreement and the nine (9) following stages at 12-month intervals; and, e) category E - custom duties and charges having equivalent effect shall be eliminated as will be determined by the Joint Committee. 2. The applicable customs duties and charges having equivalent effect for imports between the Parties or Signatory Parties, to which the successive reductions set out in paragraph 1 are to be applied are the most-favored-nation (hereinafter referred to as “MFN”) tariffs in force in January 2010. After the entry into force of this Agreement, any tariff reductions applied by the Parties or Signatory Parties on a MFN basis will serve as the new base for the tariff reductions provided for in this Agreement. 3. Except as otherwise provided in this Agreement, no Party or Signatory Party shall adopt or increase any customs duties or charges having equivalent effect, on an originating good of the other party referred to in Article 8 of this Chapter. 4. Used goods, identified or not identified as such in the Harmonized System, shall not benefit from the trade liberalization scheduled in this Agreement.