Common use of Tariff Elimination Clause in Contracts

Tariff Elimination. 1. Except as otherwise provided in this Agreement, a Party shall not increase an existing customs duty, or adopt a customs duty, on an originating good. 2. Except as otherwise provided in this Agreement, each Party shall progressively eliminate its customs duties on originating goods in accordance with its Schedule to Annex 2-D. 3. Each party shall apply to an originating good the lesser of: (a) The tariff rate applicable under its Schedule to Annex 2-D; or (b) The most-favoured-nation (MFN) applied tariff rate. 4. At the request of a Party, the Parties shall consult to consider accelerating the elimination of customs duties on a good after the entry into force of this Agreement. An agreement between the Parties to accelerate elimination of customs duties on an originating good shall supersede a duty rate or staging category determined pursuant to their Schedules for that good when approved by each Party in accordance with its applicable domestic legal procedures. 5. For greater certainty, a Party may: (a) modify its tariffs outside this Agreement on goods for which no tariff preference is claimed under this Agreement; (b) increase a customs duty to the level established in its Schedule to Annex 2-D following a unilateral reduction; and (c) maintain or increase a customs duty as authorised by this Agreement, the Dispute Settlement Body of the WTO, or any agreement under the WTO Agreement.