Voluntary Report - public distribution

**Date:** 1/13/2004

**GAIN Report Number:** RO4001

RO4001

**Romania**

**Trade Policy Monitoring**

**Duty Reductions in the Romanian Import Schedule**

**2004**

**Approved by:**

![](media/image1.wmf)Holly Higgins

U.S. Embassy Romania

**Prepared by:**

Cristina Cionga

**Report Highlights:**

The recently adopted GOR Decision 1521/2003 effective from January 1,
2004 sets out the new applied import schedule of Romania for 2004. A
number of tariff reductions, offered on an Most-Favored-Nation basis
(i.e., to all WTO members) were initiated by USTR/USDA in the process of
reviewing Romania's status as a Generalized System of Preferences (GSP)
recipient and are expected to result in higher U.S. exports to Romania.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Sofia \[BU1\]

\[RO\]

According to GOR Decision no. 1521 adopted in December 2003, a number of
positions in the Romanian import schedule were modified. AgBucharest
expects the tariff reductions to create new export opportunities
(specifically for pork cuts for processing, pork and beef liver, turkey
meat, beef tripe, soybeans, almonds, nuts, wines and whiskey) as well as
preserve existing market access for US products.

In October 2003, the United States initiated a new round of negotiations
with the Romanian authorities for improving access to the Romanian
market for selected products from January 1, 2004. This commitment would
also call for further tariff reductions as Romania gets closer to EU
accession and has to gradually adopt the CXT. An important step towards
eventual EU accession, the tariff preferences for EU products versus
U.S. products are partly addressed by the tariff reductions for 2004 on
a number of positions in the import schedule. The measure was needed as
Romania is a Generalized System of Preferences (GSP) recipient. All
reductions are offered on an Most-Favored-Nation basis, i.e., to all WTO
members.

+-----------+-------------------------------+------------+-------------+
| **HS**    | **Description**               | **MFN rate | **MFN rate  |
|           |                               | in 2003    | in 2004     |
|           |                               | (%)**      | (%)**       |
+-----------+-------------------------------+------------+-------------+
| 0201      | Bovine meat, fresh or chilled | 20         | 20          |
+-----------+-------------------------------+------------+-------------+
| 0202      | Bovine meat, frozen           | 20         | 20          |
+-----------+-------------------------------+------------+-------------+
| 0203      | Meat of swine, fresh, chilled | 20         | 20          |
|           | or frozen                     |            |             |
+-----------+-------------------------------+------------+-------------+
|           | -Fresh or chilled             |            |             |
+-----------+-------------------------------+------------+-------------+
|           | \--Carcasses and half         |            |             |
|           | carcasses:                    |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\--Other                    | 0          | 0           |
| 203.11.90 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
|           | Hams, shoulders, and cuts     |            |             |
|           | thereof, bone in:             |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\--Other                    | 0          | 0           |
| 203.12.90 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\--Other                    | 0          | 0           |
| 203.19.90 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
|           | -Frozen                       |            |             |
+-----------+-------------------------------+------------+-------------+
|           | \--Carcasses and half         |            |             |
|           | carcasses:                    |            |             |
+-----------+-------------------------------+------------+-------------+
| 020       | \-\--From farm swine animals  | 20         | 45          |
| 3.21.10\* |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\--Other                    | 0          | 0           |
| 203.21.90 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\-\--Hams and cuts thereof  | 20         | 20          |
| 203.22.11 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 020       | \-\-\--Hams and cuts thereof  | 20         | 0           |
| 3.22.11\* | (between 01/01 and 06/30)     |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\-\--Picnics/Shoulders and  | 20         | 20          |
| 203.22.19 | cuts thereof                  |            |             |
|           |                               |            | 20          |
+-----------+-------------------------------+------------+-------------+
| 020       | \-\-\--Picnics/Shoulders and  | 20         | 20          |
| 3.22.19\* | cuts thereof (between 01/01   |            |             |
|           | and 06/30)                    |            | 0           |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\-\--Other                  | 0          | 0           |
| 203.22.90 |                               |            |             |
|           |                               | 0          | 0           |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\-\--Belly bone in and cuts | 20         | 20          |
| 203.29.15 | thereof                       |            |             |
+-----------+-------------------------------+------------+-------------+
| 020       | \-\-\--Belly bone in and cuts | 20         | 0           |
| 3.29.15\* | thereof (between 01/01 and    |            |             |
|           | 06/30)                        |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\-\--Boneless               | 20         | 20          |
| 203.29.55 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 020       | \-\-\-\--Boneless (trimmings, | 20         | 0           |
| 3.29.55\* | collars, loins)               |            |             |
|           |                               |            | 0           |
+-----------+-------------------------------+------------+-------------+
| 0206      | Bovine, swine, sheep offalls, |            |             |
|           | fresh, chilled or frozen      |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\--Bovine liver             | 25 (20     | 20          |
| 206.22.00 |                               | between    |             |
|           |                               | 01/01 and  |             |
|           |                               | 06/30)     |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\-\--Bovine liver for       | 0          | 0           |
| 206.22.00 | pharmaceutical use            |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\--Swine liver              | 45 (20     | 20          |
| 206.49.20 |                               | between    |             |
|           |                               | 01/01 and  |             |
|           |                               | 06/30)     |             |
+-----------+-------------------------------+------------+-------------+
| 0         | \-\-\--Swine liver for        | 0          | 0           |
| 206.49.20 | pharmaceutical use            |            |             |
+-----------+-------------------------------+------------+-------------+
| 02        | Chicken cuts and edible       | 45         | 45          |
| 07.14\*\* | offal, frozen                 |            |             |
+-----------+-------------------------------+------------+-------------+
| 0207.27   | Turkey cuts and edible offal  | 45         | 35          |
|           | (including liver) frozen      |            |             |
|           |                               |            | 35          |
+-----------+-------------------------------+------------+-------------+
| 0504.00   | Animal casings and tripe,     | 10         | 0           |
|           | whether or not cut, fresh,    |            |             |
|           | chilled or frozen, salted, in |            |             |
|           | salted water, dried or smoked |            |             |
|           | (casings)                     |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | Betel nuts, cola nuts and     | 0          | 0           |
| 802.90.20 | pecans                        |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | Sweet pine seeds (Pinus       | 3.2        | 3.2         |
| 802.90.50 | pinea)                        |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | Macadamia nuts                | 2          | 2           |
| 802.90.60 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 0         | Other                         | 3.2        | 3.2         |
| 802.90.85 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
|           |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 0806.20   | Raisins                       | 2.4        | 2.4         |
+-----------+-------------------------------+------------+-------------+
| 1005.10   | Corn seed, certified,         | 3          | 3           |
|           | excluding sweet corn          |            |             |
+-----------+-------------------------------+------------+-------------+
| 1         | \-\-\--Other                  | 30         | 30          |
| 005.90.00 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 1         | \-\-\--Other (corn for animal | 30         | 0           |
| 005.90.00 | feed, for flour and for       |            |             |
|           | starch) between 01/01 and     |            |             |
|           | 06/30                         |            |             |
+-----------+-------------------------------+------------+-------------+
| 1105.20   | Flakes, granules, and pellets | 40         | 40          |
|           | of potatoes                   |            |             |
|           |                               |            | 40          |
+-----------+-------------------------------+------------+-------------+
| 1201.00   | Soybeans, whether or not      | 0          | 0           |
|           | broken                        |            |             |
+-----------+-------------------------------+------------+-------------+
| 1202.20   | Peanuts, raw, shelled,        | 0          | 0           |
|           | whether or not broken         |            |             |
+-----------+-------------------------------+------------+-------------+
| 1206.00   | Sunflower seeds, whether or   | 20/0       | 20          |
|           | not broken                    |            |             |
+-----------+-------------------------------+------------+-------------+
| 1         | \-\-\--Tonka seed             | 25         | 3           |
| 211.90.30 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 1         | \-\-\--Other                  | 25         | 0           |
| 211.90.97 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 1302.39   | Mucilages and thickeners,     | 5          | 5           |
|           | whether or not modified,      |            |             |
|           | derived from vegetable        |            |             |
|           | products, nesoi               |            |             |
+-----------+-------------------------------+------------+-------------+
| 1507.90   | Soybean oil and its           | 25         | 25          |
|           | fractions, refined but not    |            |             |
|           | chemically modified           |            |             |
+-----------+-------------------------------+------------+-------------+
| 1602.31   | Meat and meat offal of        | 45         | 45          |
|           | turkeys, prepared or          |            |             |
|           | preserved nesoi               |            |             |
+-----------+-------------------------------+------------+-------------+
| 1602.32   | Meat and meat offal of        | 45         | 45          |
|           | chicken, prepared or          |            |             |
|           | preserved nesoi               |            |             |
+-----------+-------------------------------+------------+-------------+
| 2103.90   | Sauces and preparations       | 22         | 22          |
|           | therefore, nesoi, mixed       |            |             |
|           | condiments and seasonings     |            |             |
+-----------+-------------------------------+------------+-------------+
| 2204.21   | Wine                          | 70         | 60          |
+-----------+-------------------------------+------------+-------------+
| 2208.30   | Whiskey                       | 35         | 35          |
+-----------+-------------------------------+------------+-------------+
| 2304      | Soybean meal                  | 5          | 5           |
+-----------+-------------------------------+------------+-------------+
| 4         | Whole bovine hides, fresh     | 25         | 25          |
| 101.20.10 |                               |            |             |
+-----------+-------------------------------+------------+-------------+
| 4         | Whole bovine hides, salted    | 25         | 25          |
| 101.20.10 |                               |            |             |
+-----------+-------------------------------+------------+-------------+

\*Duty exemptions for pork cuts were introduced in October 2003 and will
continue through June 30, 2004. This is because domestic supply, though
slightly increasing, is not able to balance consumption in the short
run. Pork carcass duty rate was increased to 45 percent (from 20
percent), basically to protect the domestic market from cheap Polish
sales of swine meat.

\*\*In the case of poultry meat, the duty rate is currently maintained
at 45 percent.