WORLD TRADE  
ORGANIZATION  TN/MA/S/10/Rev.1 
18 July 2005 
 (05-3189) 
Negotiating Group on Market Access  
  
INCIDENCE OF NON- AD VALOREM  TARIFFS IN MEMBERS'  
TARIFF SCHEDULES AND POSSIBLE APPROACHES TO  
THE ESTIMATION OF AD VALOREM  EQUIVALENTS 
 
Note by the Secretariat
1 
 
Revision  
  
I. INTRODUCTION 
1. A revision to this note has been prepared in  response to a request from the Negotiating Group 
on Non-agricultural Market Access at its meeting of 6 to 10 June 2005.   It focuses on the incidence of 
non-agricultural non- ad valorem  tariffs in Members schedules and the availability of data necessary to 
calculate ad valorem  equivalents (AVEs).  The note builds on previous work carried out by the 
Secretariat in this area.
2    
 2. The note first examines the various categories of non- ad valorem  duties
3 currently recorded in 
WTO schedules.  It then reviews data requirements and the availability of information, in the WTO 
Secretariat as well as from other sources. The pape r then considers possible approaches to estimating 
ad valorem  equivalents (AVEs). In the last part, the issue of fluctuations of national tariff line unit 
values around HS 6-digit world unit values is discussed.  II. NON- AD VALOREM  TARIFFS  
3. Members have bound duties using a variety of formulations in their WTO Schedules.  These 
include:  (a) ad valorem  terms: the duty is expressed as a percentage of the value of the imported item; 
 
(b) non-ad valorem  (NAV) terms, with duties being expressed by means of: 
(i) specific duties
: specific units of currency are levied  per unit of quantity (e.g., weight, 
surface, piece, head, etc.); 
(ii) compound duties: a duty comprising an ad valorem duty to which a specific duty is 
either added or subtracted;  
(iii) mixed duties: a conditional choice between an  ad valorem duty and a specific duty, 
subject to an upper and/or a lower limit;  
(iv) other duties: duties are determined by tec hnical factors often related to the content , 
composition or nature of the concerned products.  
                                                      
1 This document has been prepared under the Secret ariat's own responsibility and is not intended to 
prejudice the positions of any Members and to their rights and obligations under the WTO. 
2 See document TN/AG/S/11. 
3 The terms "duty" and "tariff" are used interchangeably in the present note. TN/MA/S/10/Rev.1 
Page 2  
 
  4. The four types of duties falling under categor y (b) above are classified based on the CTS-
coding system, i.e.: S (specific); M (mixed); C (compound) and O (other). Examples of each of the four different types of duties are given in Annex table 1.  
III. INCIDENCE OF NON-AD VALOREM DUTIES IN WTO SCHEDULES  
5. Table 1 shows the incidence of non- ad valorem  non-agricultural duties in Members' 
schedules, in absolute (column 3) as well as in rela tive (column 4) terms. It also presents a break-
down of these non- ad valorem  duties by type of formulation (S, C, M, O). Currently, the CTS files of 
26 Members contain 8716 non-agricultural tariff lines that are not bound in ad valorem  terms.
4  For 
five Members, more than 5 per cent of th eir non-agricultural tariff lines are bound in non- ad valorem  
terms. Nine Members have 10 or less tariff lines bound in non- ad valorem  terms. Only Switzerland-
Liechtenstein uses non- ad valorem  terms for all its non-zero duties. 
 
Table 1   Incidence  of Non- Ad valorem   Bound Duties in WTO Schedules 
 
OF WHICH : NON -AD VALOREM   DUTY NATURE BY TYPE 5 
MEMBER  TOTAL NUMBER 
OF BOUND 
TARIFF LINES  TOTAL 
NUMBER  PER CENT  S C M O 
1 2 3 4 = 3/2*100 5 6 7 8 
Australia 4748 5 0.1 5    
Bulgaria 8380 1 0.0  1   
Canada 7603 23 0.3 9 5 9  
European Communities 8294 40 0.5 8 1 31  
FYR of Macedonia 8376 10 0.1  2 8  
Haiti 4307 792 18.4 154 5 633  
Iceland 6982 1 0.0   1  
India 3320 332 10.0   332  
Israel 5712 564 9.9 191 355 18  
Japan 6284 212 3.4 12  200  
Jordan 5892 2 0.0  2   
Korea, Republic of 8711 21 0.2   21  
Kyrgyz Republic 6059 36 0.6   36  
Malaysia 6151 9 0.1 9    
Mexico 10212 1 0.0   1  
New Zealand 6329 237 3.7 190 11  36 
Norway 5255 121 2.3 115  5 1 
Papua New Guinea 4481 4 0.1 4    
Solomon Islands 4437 51 1.1 26  25  
Sri Lanka 1354 16 1.2   16  
Suriname 773 1 0.1   1  
Switzerland 6044 5068 83.9 15  5053  
Taipei, Chinese 7268 86 1.2 4  82  
Thailand 3363 692 20.6 2  690  
United States 9460 377 4.0 54 183  140 
Zimbabwe 438 14 3.2  14   
TOTAL 150233 8716 5.8 798 579 7162 177 
Source: CTS  
 
                                                      
4 Counting the EC and Switzerland-Liechtenstein, resp ectively, as one. The 10 new EC member States 
were not included in the analysis.  
5 A closer examination of the NAV duties in the CTS files has shown that the duty nature classification 
of these duties in some developed country Members, which prepared their own CTS files, does not follow the 
standard IDB classification. This will be corrected  in the next revisions of the concerned files.  TN/MA/S/10/Rev.1 
 Page 3 
 
 
 6. Annex Table 2 presents the distribution of non- ad valorem  duties by HS chapters (2-digit 
category). Paper, textile and clothing, iron and steel, mechanical and electrical machinery and 
equipment are among the sectors with a relatively high share of NAV duties. 
IV. APPROACHES TO ESTIMATING AVES 
7. There are two main methods of AVE estima tion that have been used in the GATT/WTO 
context: 
• the use of revenue collected divided by the value of imports, and  
• the use of unit values of traded products. 
 8. The revenue method will not be considered furthe r because it has more serious limitations in its 
use than the unit value method. In particular, it requi res that MFN dutiable trade has taken place in the 
reference period. The unit value method is relatively easier to apply to situations with no trade flows 
and/or situations with multiple preferential rat es. The following analysis focuses on the unit value 
method only. 
9. The unit value method requires that the value of imports is first divided by the import volume 
to derive the unit value of imports.  The AVE is  then calculated as the specific duty expressed as a 
percentage of the resulting unit value.  For ex ample, if the import value is $10,000 and the 
corresponding import volume is 100 tonnes, the unit value would be $100 per tonne.  A specific duty 
of $10 per tonne expressed as a percentage of the resulting unit value ($100 per tonne) would give an 
AVE of 10 per cent. 
UNIT  VALUE FORMULA  
100×⎟
⎠⎞⎜
⎝⎛×= XRUVSPAVE
 
 
AVE        AD VALOREM  EQUIVALENT OF SPECIFIC DUTY (per cent) 
SP        S PECIFIC DUTY  (Duty value / Quantity) 
UV       I MPORT UNIT VALUE  
 where   UV  = V/(Q * C Q) 
 V =  value of imports 
 Q =  quantity of imports 
 C Q =   conversion factor for quantity units, where appropriate 
XR        C URRENCY EXCHANGE RATE, where appropriate 
 
10. The results of this approach  can provide, in a technical sense, an accurate assessment, as long 
as volume and value statistics are collected in the same manner.  Nevertheless, this method may prove 
sometimes time-consuming as NAV  duties are often not simply specific rates that can be directly 
compared to unit values, but may be compound, mi xed or technical rates that require additional 
calculations, and in some instances also additi onal data. Compound and mixed duties do not provide 
any particular problem as long as the specific part  of the duty formulation can be converted into TN/MA/S/10/Rev.1 
Page 4  
 
  AVEs. Once this is done it simply suffices to eval uate the expression and to calculate the resulting 
AVE. 
11. Technical tariffs are in general more complex to calculate because it often requires 
information on the product itself that is normally not available in the national trade statistics. In these 
cases supplementary information needs to be used or  certain assumptions need to be made before 
AVEs can be calculated. Annex table 1 gives some  indications on how the different types of NAV 
duties can be converted into AVEs. 
V. TRADE DATA AVAILABILITY 
12. The IDB provides the basis for detailed impor t data, which can be used for the unit value 
calculations. However, there are several limitations: 
1. there may be data gaps in the IDB reporting 
o when there are no import data at all 
o when there were no imports in a particular NAV tariff line 
o when there are no reported quantities in  a particular NAV tariff line;  
2. the classification of the trade statistics may not match the classification of the Members' schedule 
which in most cases dates back to the Uruguay Round; 
3. the quantity units used in the NAV duty may not be the same as those used in the import statistics. 
 
Table 2  Availability of trade data in HS 6-digit subheading with NAV duties 
 
Number of non-agricultural ta riff lines with trade data 
   Member Number of 
NAV  
tariff lines 1996 1997 1998 1999 2000 2001 
Australia 5 4 5 3 4 5 4 
Bulgaria 1 1 1 1 1 1 1 
Canada 23 23 23 23 23 23 23 
European Communities 40 40 40 40 40 40 40 
FYR of Macedonia 10 - - 8 8 8 6 
Haiti 792 - - - - - - 
Iceland 1 1 1 1 1 1 1 
India 332 197 - 296 310 307 315 
Israel 564 - - - 531 532 523 
Japan 212 209 210 207 208 209 211 
Jordan 2 - - - 2 2 2 
Korea, Republic of 21 21 21 21 21 21 21 
Kyrgyz Republic 36 - - - - - - 
Malaysia 9 9 9 - 9 9 9 
Mexico 1 1 1 1 1 1 1 
New Zealand 237 236 237 236 237 237 237 
Norway 121 121 120 121 121 121 121 
Papua New Guinea 4 - - - - - 3 
Solomon Islands 51 - - - - - - 
Sri Lanka 16 16 16 16 16 16 16 
Suriname 1 - - - - - - 
Switzerland 5068 5047 5037 5037 5040 5040 5041 
Taipei, Chinese 86 - - 86 86 86 85 
Thailand 692 654 654 644 678 678 676 
United States 377 376 375 376 374 375 374 
Zimbabwe 14 - 12 12 14 10 12 
Source: IDB supplemented by COMTRADE (for 1999-2001 only shown in italics)   TN/MA/S/10/Rev.1 
 Page 5 
 
 
 13. Table 2 shows the availability of trade data in the IDB. For gaps in the IDB, COMTRADE 
data are used as a proxy source. Since a full tariff line match could not be established for all years and 
all Members, the table shows the number of tariff li nes for which there is trade at the level of the 
corresponding HS 6-digit subheadings. Most NAV du ties are covered in this way, as long as trade 
data is available in the first place.   
14. Data gaps in the IDB should be filled by the Members concerned since there is no other 
comprehensive source of tariff line import data. Other sources like COMTRADE, UNCTAD and ITC often make use of HS 6-digit trade data only. Any mismatch of import statistics’ and schedule’s 
classifications can only be solved by making refere nce to related products within the HS 6-digit 
subheading or by reference to HS 6-digit unit values.  
15. For a subset of Members for which schedules in the CTS have been linked with the IDB, 
Table 3 shows the NAV tariff lines for which matc hing import flows can be found in the IDB. It 
appears that most tariff lines that are covered at HS  6-digit level in the IDB also have matching tariff 
line import flows. This is partly due to the fact that the concessions are defined only at the level of HS 6-digit subheadings. The two exceptions which stand out  in this analysis are Canada and India where 
one finds a significant percentage of NAV tariff lin es that have no matching import flows. For other 
Members that are not yet linked a deta iled analysis has yet to be made. 
16. The mismatch of quantity units recorded in the Members' import statistics compared to those 
used in the NAV duties is not very frequent. Howe ver, in the case of India there are a significant 
number of tariff lines where import statistics submitted to the IDB are recorded in kilograms whereas 
the concessions are in terms of square meters. If detailed customs records wi th appropriate quantity 
measurements are not available conversion factors would need to be established. If no international 
standard conversions exist referenc e would have to be made to othe r data sources which would permit 
to establish such conversion factors. 
 
Table 3     Availability of NAV duties with matching tariff line trade data 
 
    Number of non-ad-valorem tariff lines 
Year of 
link Member All NAV with matching 
trade data with no matching 
trade data with no trade 
data 
2001 Australia 5 4  1 
2001 Bulgaria 1 1   
2000 Canada 22 9 13  
2001 European Communities 39 39   
2000 Iceland 1  1  
2001 India 344 172 155 17 
2001 Japan 267 233  34 
2001 Jordan 2 2   
2001 Korea, Republic of 21 10  11 
2001 Malaysia 9 3 1 5 
2001 Mexico 1 1   
2001 Norway 128 125  3 
2001 Sri Lanka 16 15 1  
2001 Switzerland 5069 4992 2 75 
2001 Taipei, Chinese 86 68 1 17 
2000 United States 375 344 22 9 
 Source:  IDB linked files. 
 
Note:  The number of tariff lines with NAV duties may be different to the numbers shown in the ot her tables in this note 
because the tariff nomenclature of the bound NAV duties had to be adjusted to match the IDB tariff nomenclature.   
 TN/MA/S/10/Rev.1 
Page 6  
 
  VI. COMPARISON OF TARIFF LINE AND HS 6-DIGIT WORLD UNIT VALUES  
17. The quality of the estimation of AVEs depends  very much on the quality of the underlying 
import values and quantities. As quantity information is  not always measured with the same degree of 
precision as import values the resulting unit values ma y yield estimates that may vary considerably 
among Members. At the same time one has to ack nowledge that the imported product mix within a 
HS 6-digit subheading may vary considerably am ong Members, because of the different product 
composition (small size vs. big size, high quality/value vs. low quality/value, new vs. used, etc.) imported by each Member, which in turn is a result of the structure of its import demand and its level of protection.   
18. To assess the situation a comparison of Member s tariff line unit values with HS 6-digit world 
unit values was undertaken.
6  Import data for the years 1999-2001 was taken from the IDB for all 
those Members’ subheadings which contained NAV tariff lines. It was not possible to target 
specifically only NAV unit values because in many case s no tariff line link to the relevant trade data 
existed.  However, by analysing the unit values of tariff lines in the concerned HS 6-digit subheadings 
one can get an understanding of the price fluctuations  in the closely related product items. As it is not 
possible to show all the detailed tariff line informa tion a summary by Member and by HS chapter is 
provided in Tables 4 and  5.  
19. Table 4 shows the distribution of the ratio of national tariff line unit values divided by their 
respective world unit values.. The table shows for ea ch Member the median, and the unit value ratio 
which separates the lowest 25 per cent (Q_25) and the highest 25 per cent (Q_75) of unit values from 
the other unit values. It appears that the median values for all Members are higher than the world unit 
values and that for about half of them this ratio is  more than double. This indicates that national unit 
values are in many cases significantly higher than world unit values and therefore, it may be more appropriate to make use of national unit values in  all cases where reliable trade data are available.
7 
Table 4  Spread of national unit values around world unit values by Member 
(expressed as ratio of national tariff line uni t values over HS 6-digit world unit values) 
 
 Member Q_25 Median Q_75 
Australia 1.1 1.1 1.7 
Bulgaria 2.2 2.4 2.8 
Canada 1.1 1.5 2.3 
European Communities 1.1 2.3 4.8 
FYR of Macedonia 0.9 1.7 2.8 
Iceland 3.5 6.3 20.8 
India 0.7 1.1 1.8 
Israel 1.5 2.4 6.8 
Japan 1.8 3.4 7.2 
Jordan 1.9 2.9 3.6 
Korea, Republic of 5.0 21.5 125.6 
Malaysia 1.5 2.1 3.5 
Mexico 3.8 4.6 5.9 
New Zealand 0.7 1.4 2.4 
Norway 2.0 3.2 5.2 
Sri Lanka 0.9 1.3 2.2 
Switzerland 2.5 4.1 8.4 
                                                      
6 The term “world unit values” is used here to describe the weighted average HS 6-digit unit values 
based on available UNSD COMTRADE trade data. 
7 The observed tendency in Members that apply NAV duties to have relatively higher unit values is 
also partly due to the fact that NAV duties by their very nature are more favourable to high value imports 
because the AVE is less relative to the import value.  TN/MA/S/10/Rev.1 
 Page 7 
 
 
  Member Q_25 Median Q_75 
Taipei, Chinese 0.8 1.6 2.6 
Thailand 1.8 3.0 5.8 
United States 1.1 1.8 3.7 
Zimbabwe 0.4 1.0 3.0 
       Source: UNSD COMTRADE and IDB 
 
20. Table 5 shows the same results by HS chapter.  Again the same picture emerges, i.e. national 
unit values are higher in nearly all cases and in some  chapter even substantially higher. One has to 
keep in mind though that the large number of NAV duties of  Switzerland biases the results upwards 
in most chapters. In addition to the unit values dist ribution this table also shows the amount of imports 
that is concerned by HS subheadings with NAV du ties. Leaving aside Switzerland, the HS chapters 
most concerned by NAV duties are petroleum (27), clot hing (61,62), footwear (64), vehicles (87) and 
watches (91). 
Table 5  Spread of national unit values around world unit values by HS chapter 
(expressed as ratio of national tariff line uni t values over HS 6-digit world unit values) 
 
Imports in Bill US $     HS 
Chapter Q_25 Median Q_75 All excluding 
Switzerland 
03 0.9 1.7 2.9 1.35 0.92 
15 1.4 4.7 17.0 0.35 0.34 
16 1.2 1.9 2.8 1.67 1.34 
23 1.4 1.4 7.5 0.28 0.27 
25 2.3 3.3 6.5 0.48 0.29 
26 1.2 1.4 3.7 1.02 1.02 
27 1.3 2.4 7.0 27.89 21.81 
28 2.1 3.8 8.8 0.77 0.00 
29 1.8 3.1 7.3 8.32 0.01 
30 . . .   
31 1.5 1.9 4.5 0.08  
32 2.4 4.3 8.1 2.65  
33 2.7 4.2 7.1 3.20 1.59 
34 3.0 4.1 6.0 1.33 0.57 
35 3.1 4.5 8.4 0.26  
36 2.7 5.6 20.0 0.10  
37 3.2 6.7 21.5 0.88 0.26 
38 1.9 3.0 4.3 2.03 0.09 
39 2.6 3.8 7.6 11.62 3.87 
40 1.8 3.3 7.2 2.59 0.06 
41 3.4 4.4 8.4 0.58 0.44 
42 1.4 2.4 5.4 2.32 1.02 
43 3.0 4.2 5.0 0.07  
44 2.6 3.7 5.6 1.75 0.03 
45 6.2 7.3 8.3 0.08  
46 1.5 2.4 6.2 0.03 0.00 
47 1.3 1.5 1.7 0.74  
48 2.5 3.5 5.9 6.65 1.86 
49 3.1 5.4 8.4 2.10 0.02 
50 3.2 4.7 8.3 0.06  
51 1.9 3.1 4.1 1.07 0.84 
52 1.8 3.0 5.4 4.32 3.92 
53 2.5 4.0 4.5 0.03  
54 1.6 2.9 4.9 3.34 2.74 
55 2.0 3.4 5.0 0.71 0.37 TN/MA/S/10/Rev.1 
Page 8  
 
  Imports in Bill US $     HS 
Chapter Q_25 Median Q_75 All excluding 
Switzerland 
56 3.1 6.2 17.7 0.58 0.23 
57 1.1 2.1 3.8 4.46 3.94 
58 3.1 6.8 18.4 0.61 0.44 
59 4.1 5.7 8.9 0.38 0.04 
60 2.5 3.0 4.0 0.59 0.41 
61 1.0 2.2 4.4 10.52 5.39 
62 1.2 2.3 4.3 41.10 35.76 
63 2.7 4.2 7.1 0.94 0.07 
64 1.6 2.8 6.1 26.51 22.62 
65 1.2 1.9 3.1 5.59 5.44 
66 1.4 2.1 6.2 0.06 0.00 
67 2.8 3.0 3.5 0.05  
68 2.6 4.5 9.9 1.29 0.12 
69 2.2 3.5 5.7 1.21 0.28 
70 2.2 4.2 8.5 2.76 1.13 
71 1.1 2.9 8.8 0.87  
72 2.0 2.7 3.9 4.66 1.32 
73 2.9 4.5 10.6 4.25  
74 2.7 4.9 10.9 1.33 0.01 
75 2.8 4.6 9.8 1.43 1.27 
76 2.5 3.8 7.6 3.97 1.05 
78 1.4 2.5 5.4 0.60 0.57 
79 2.3 3.4 7.5 0.51 0.37 
80 5.8 8.4 28.3 0.02  
81 2.0 3.8 7.6 0.28 0.10 
82 1.4 5.4 13.3 4.56 3.02 
83 5.4 9.0 16.9 0.97 0.05 
84 2.0 3.4 6.9 23.15 1.83 
85 2.7 6.9 25.3 20.13 0.42 
86 1.7 3.5 8.6 0.64  
87 3.4 6.2 11.6 48.79 9.32 
88 1.3 1.6 3.1 9.56  
89 1.9 3.5 17.8 0.31  
90 2.6 4.7 15.4 6.93 2.13 
91 0.9 2.6 7.7 12.94 10.56 
92 2.9 3.5 8.6 0.34 0.01 
93 0.8 1.6 4.9 0.75 0.64 
94 2.6 5.5 10.3 2.48 0.01 
95 2.5 2.9 3.5 2.38 0.53 
96 1.7 6.2 21.2 3.44 2.80 
97 2.8 5.1 37.5 0.06  
Source: IDB and UNSD COMTRADE  
21. Individual tariff line with NAV duties may exhi bit large and sometimes erratic variations in 
the unit values.8 If AVEs, derived under such circumstances, do not reflect the structure of protection 
that is observed over a longer time span than that of the reference period it might be appropriate to 
extend the reference period. Another option could be the use of a median unit value of bilateral trade 
flows in the reference period subject, possibly,  to low import value thresholds.    
                                                      
8 Such variations in unit values may be a result of a small number of individual transactions covering 
very different product items within that particular tariff line or related to the fact that quantity measurements are 
not correctly recorded in the trade statistics.     TN/MA/S/10/Rev.1 
 Page 9 
 
 
 VII. CONCLUSIONS 
22. The estimation of AVEs in a transparent and internationally comparable way for all Members 
is a necessary prerequisite for the application of any non-linear tariff cutting formula.  The document 
has shown that AVEs can be estimated for NAV tariffs. In order to bridge the existing data gaps use 
of higher level national product categories (up to HS 6- digit) or to related product categories seems to 
be preferable to the use of COMTRADE world unit values. The latter may, however, be required if no 
national data are available and if the import structur e of similar near countries may not be appropriate 
either.   
23. The methodologies presented in this document could serve as input to prepare the guidelines 
which could be used by Members to convert  NAV duties to AVEs in the negotiations. These 
guidelines should provide a good basis for the consis tent and transparent AVE calculations which 
could be verified through a mu ltilateral review. Comprehensive b ackground data should be provided 
in standardized electronic formats so  as to facilitate the verification, comparison and evaluation of the 
resulting AVEs.  
   
 TN/MA/S/10/Rev.1 
Page 10 
 Annex Table 1:  Typology of non agricultural NAV tariffs  
 
Type of 
duty Functional form Example Possible calculation of base rates 
Specific 
unit quantity import amount duty SP= 
15 Fr./100 kg brut Switzerland Calculate AVE 
Compound AV + SP 15 % +  $12,000 each Australia Calculate AVE of  the SP part and add to AV duty 
max(AV ,, SP) 1.9 %  or  13yen/kg, whichever 
is the greater Japan Calculate AVE of  the SP part and ta ke the higher of AVE or AV duty 
min(AV ,, SP) 10 % or US$ 45/ton, whichever 
is lower Kyrgyz Rep. Calculate the AVE of  the SP part and take the lower of AVE of AV duty 
max(AV 1, AV 2+ SP) 4.5 per cent or 3.5 per cent 
+1.21yen/m2, whichever is 
greater Japan Calculate the AVE of the SP part, add it to the AV 2 duty and take the higher of 
either AV 1 or AVE+AV 2  Mixed 
AV or SP with floor and 
ceiling rate 4.5% MIN 0.3 € p/st MAX 0.8 € 
p/st EC Calculate the AVE of the SP part(s), compare the initial duty  to the floor and ceiling rates and retain the initial rate or take either floor or ceiling rates if it exceeds either of them  
Content based 0.55¢/kg on the manganese 
content Canada Use international or national conversion factors to calculate AVE using reported quantities   
Component based 48¢ each + 4.6 % on the case + 
3.5 % on the battery US Calculate AVE of  SP part and then use either of the following:10 
1. Use detailed trade sta tistics (if available)  to calculate compound 
AVE;  
2. Retain all components in AV terms; 
3. Apply averaging into single AV duty based on fixed weights of 
components.  Other9 
Related to duty of related 
items Where variable rates of duty are 
shown, the bound rates of duty 
are whichever bound rates are 
applicable to certain related 
items as indicated.. New Zealand Use either of the following:  
1. Weighted average of related duties (if detailed trade statistics are 
available);   
2. Retain as derived rates;  
3. Simple average of related duties. 
 
                                                      
9 A special case has been identified by Japa n, which administers a pooled quota for a number of leather footwear items. A nearly  uniform in-quota ad valorem duty is 
matched with a uniform compound out-of-quota duty for more than 20 tariff lines. Applying tariff line dependent unit values wou ld result most likely in different tariff line AVEs 
and thus in different duty differentials. While this reflects the current de facto situation, a uniform duty differential in ad-valorem  terms could be achieved by calculating "pooled" 
a unit value. 
10 See also document TN/MA/W/18/Add.8 which covers a range of "o ther" duties in the US schedule and suggests AVE calculation meth odology.  
  TN/MA/S/10/Rev.1
 Page 11Annex Table 2 NAV duties by HS chapter and duty nature  
 
HS 
CHAPTER DESCRIPTION  N UMBER 
OF 
MEMBERS  TOTAL 
NON-AG 
TARIFF 
LINES OF 
WHICH : 
NON-AD 
VALOREM  %  OF 
TOTAL  S C M O 
03 FISH AND CRUSTACEANS, MOLLUSCS AND OTHER AQUATIC 
INVERTEBRATES 8 3039 165 1.9 62 3 100   
05 PRODUCTS OF ANIMAL ORIGIN, NOT ELSEWHERE SPECIFIED 
OR INCLUDED 0 25 0 0.0         
15 ANIMAL OR VEGETABLE FATS AND OILS AND THEIR 
CLEAVAGE PRODUCTS; PREPARED EDIBLE FATS; ANIMAL 
OR VEGETABLE WAXES 5 117 22 0.3 14 2 6   
16 PREPARATIONS OF MEAT, OF FISH OR OF CRUSTACEANS, 
MOLLUSCS OR OTHER AQUATIC INVERTEBRATES 8 708 37 0.4 6   31   
23 RESIDUES AND WASTE FROM THE FOOD INDUSTRIES; 
PREPARED ANIMAL FODDER 2 41 2 0.0 1   1   
25 SALT; SULPHUR; EARTHS AND STONE; PLASTERING 
MATERIALS, LIME AND CEMENT 6 1800 51 0.6 7   44   
26 ORES, SLAG AND ASH 2 866 11 0.1 7 2 2   
27 MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR 
DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL 
WAXES 7 1298 108 1.2 35 4 69   
28 INORGANIC CHEMICALS; ORGANIC OR INORGANIC 
COMPOUNDS OF PRECIOUS METALS, OF RARE-EARTH 
METALS, OF RADIOACTIVE ELEMENTS OR OF ISOTOPES 3 5017 144 1.7 2 2 140   
29 ORGANIC CHEMICALS 4 11548 238 2.7 1 1 236   
30 PHARMACEUTICAL PRODUCTS 2 1202 18 0.2 2 2 14   
31 FERTILISERS 1 617 18 0.2     18   
32 TANNING OR DYEING EXTRACTS; TANNINS AND THEIR 
DERIVATIVES; DYES, PIGMENTS AND OTHER COLOURING 
MATTER; PAINTS AND VARNISHES; PUTTY AND OTHER 
MASTICS; INKS 3 1556 46 0.5   1 44 1 
33 ESSENTIAL OILS AND RESINOIDS; PERFUMERY, COSMETIC 
OR TOILET PREPARATIONS 12 624 42 0.5 5 5 32   
34 SOAP, ORGANIC SURFACE-ACTIVE AGENTS, WASHING 
PREPARATIONS, LUBRICATING PREPARATIONS, ARTIFICIAL 
WAXES, PREPARED WAXES, POLISHING OR SCOURING PREPARATIONS, CANDLES AND SIMILAR ARTICLES, 
MODELLING PASTES, "DENTAL WAXES" AND DENTAL 
PREPARATIONS WITH A BASIS  5 740 43 0.5 2   41    
 TN/MA/S/10/Rev.1 
Page 12 
 HS 
CHAPTER DESCRIPTION  N UMBER 
OF 
MEMBERS  TOTAL 
NON-AG 
TARIFF 
LINES OF 
WHICH : 
NON-AD 
VALOREM  %  OF 
TOTAL  S C M O 
35 ALBUMINOIDAL SUBSTANCES; MODIFIED STARCHES; 
GLUES; ENZYMES 1 173 9 0.1 1   8   
36 EXPLOSIVES; PYROTECHNIC  PRODUCTS; MATCHES; 
PYROPHORIC ALLOYS; CERTAIN COMBUSTIBLE 
PREPARATIONS 3 224 18 0.2 1   17   
37 PHOTOGRAPHIC OR CINEMATOGRAPHIC GOODS 7 1276 64 0.7 9   55   
38 MISCELLANEOUS CHEMICAL PRODUCTS 5 2061 60 0.7 10 1 49   
39 PLASTICS AND ARTICLES THEREOF 4 4918 250 2.9 5 5 240   
40 RUBBER AND ARTICLES THEREOF 3 2433 81 0.9     80 1 
41 RAW HIDES AND SKINS (OTHER THAN FURSKINS) AND 
LEATHER 3 787 47 0.5     47   
42 ARTICLES OF LEATHER; SADDLERY AND HARNESS; TRAVEL 
GOODS, HANDBAGS AND SIMILAR CONTAINERS; ARTICLES 
OF ANIMAL GUT (OTHER THAN SILK-WORM GUT) 5 777 33 0.4 4 4 25   
43 FURSKINS AND ARTIFICIAL FUR; MANUFACTURES THEREOF 2 352 12 0.1 3   9   
44 WOOD AND ARTICLES OF WOOD; WOOD CHARCOAL 4 2600 98 1.1 1 8 89   
45 CORK AND ARTICLES OF CORK 1 223 9 0.1     9   
46 MANUFACTURES OF STRAW, OF ESPARTO OR OF OTHER 
PLAITING MATERIALS; BASKETWARE AND WICKERWORK 2 235 13 0.1 3 4 6   
47 PULP OF WOOD OR OF OTHER FIBROUS CELLULOSIC 
MATERIAL; RECOVERED (WASTE AND SCRAP) PAPER AND PAPERBOARD 1 481 16 0.2     16   
48 PAPER AND PAPERBOARD; ARTICLES OF PAPER PULP, OF 
PAPER OR OF PAPERBOARD 4 3508 275 3.2 50 2 223   
49 PRINTED BOOKS, NEWSPAPERS, PICTURES AND OTHER 
PRODUCTS OF THE PRINTING INDUSTRY; MANUSCRIPTS, TYPESCRIPTS AND PLANS 2 584 13 0.1     13   
50 SILK 2 246 23 0.3     23   
51 WOOL, FINE OR COARSE ANIMAL HAIR; HORSEHAIR YARN 
AND WOVEN FABRIC 5 948 88 1.0   25 63   
52 COTTON 6 3856 680 7.8 71   609   
53 OTHER VEGETABLE TEXTILE FIBRES; PAPER YARN AND 
WOVEN FABRICS OF PAPER YARN 2 713 19 0.2 3   16   
54 MAN-MADE FILAMENTS 6 2311 307 3.5 35 15 257   
55 MAN-MADE STAPLE FIBRES 6 3410 445 5.1 15 21 409    
  TN/MA/S/10/Rev.1
 Page 13HS 
CHAPTER DESCRIPTION  N UMBER 
OF 
MEMBERS  TOTAL 
NON-AG 
TARIFF 
LINES OF 
WHICH : 
NON-AD 
VALOREM  %  OF 
TOTAL  S C M O 
56 WADDING, FELT AND NON WOVENS; SPECIAL YARNS; 
TWINE, CORDAGE, ROPES AND  CABLES AND ARTICLES 
THEREOF 6 1305 78 0.9 6 30 42   
57 CARPETS AND OTHER TEXTILE FLOOR COVERINGS 7 716 65 0.7 1 5 59   
58 SPECIAL WOVEN FABRICS; TUFTED TEXTILE FABRICS; 
LACE; TAPESTRIES; TRIMMINGS; EMBROIDERY 7 1441 157 1.8   12 140 5 
59 IMPREGNATED, COATED, COVERED OR LAMINATED 
TEXTILE FABRICS; TEXTILE ARTICLES OF A KIND SUITABLE 
FOR INDUSTRIAL USE 3 963 79 0.9 1 52 26   
60 KNITTED OR CROCHETED FABRICS 3 704 35 0.4     35   
61 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, 
KNITTED OR CROCHETED 7 3490 332 3.8 109 19 193 11 
62 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT 
KNITTED OR CROCHETED 7 3825 522 6.0 91 47 373 11 
63 OTHER MADE UP TEXTILE ARTICLES; SETS; WORN 
CLOTHING AND WORN TEXTILE ARTICLES; RAGS 7 1836 127 1.5 9 7 110 1 
64 FOOTWEAR, GAITERS AND THE LIKE; PARTS OF SUCH 
ARTICLES 5 1231 94 1.1 16 14 64   
65 HEADGEAR AND PARTS THEREOF 4 325 29 0.3   10 19   
66 UMBRELLAS, SUN UMBRELLAS, WALKING-STICKS, SEAT-
STICKS, WHIPS, RIDING-CROPS AND PARTS THEREOF 2 179 10 0.1     10   
67 PREPARED FEATHERS AND DOWN AND ARTICLES MADE OF 
FEATHERS OR OF DOWN; ARTIFICIAL FLOWERS; ARTICLES 
OF HUMAN HAIR 1 202 9 0.1     9   
68 ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA 
OR SIMILAR MATERIALS 4 1525 90 1.0 8 1 81   
69 CERAMIC PRODUCTS 4 891 54 0.6 5   49   
70 GLASS AND GLASSWARE 7 2274 155 1.8 29 3 123   
71 NATURAL OR CULTURED PEARLS, PRECIOUS OR SEMI-
PRECIOUS STONES, PRECIOUS METALS, METALS CLAD 
WITH PRECIOUS METAL, AND ARTICLES THEREOF; 
IMITATION JEWELLERY; COIN 2 1450 58 0.7 5   53   
72 IRON AND STEEL 5 5691  350 4.0 7 50 293   
73 ARTICLES OF IRON OR STEEL 3 4314 299 3.4 47   252   
74 COPPER AND ARTICLES THEREOF 4 1744 131 1.5 3   128   
75 NICKEL AND ARTICLES THEREOF 2 480 30 0.3 3   27    
 TN/MA/S/10/Rev.1 
Page 14 
 HS 
CHAPTER DESCRIPTION  N UMBER 
OF 
MEMBERS  TOTAL 
NON-AG 
TARIFF 
LINES OF 
WHICH : 
NON-AD 
VALOREM  %  OF 
TOTAL  S C M O 
76 ALUMINIUM AND ARTICLES THEREOF 4 1230 48 0.6 5   43   
78 LEAD AND ARTICLES THEREOF 3 275 19 0.2 2   13 4 
79 ZINC AND ARTICLES THEREOF 3 282 17 0.2 6   11   
80 TIN AND ARTICLES THEREOF 1 231 11 0.1     11   
81 OTHER BASE METALS; CERMETS; ARTICLES THEREOF 4 1141 45 0.5 1 3 41   
82 TOOLS, IMPLEMENTS, CUTLERY,  SPOONS AND FORKS, OF 
BASE METAL; PARTS THEREOF OF BASE METAL 4 2072 148 1.7 16 43 84 5 
83 MISCELLANEOUS ARTICLES OF BASE METAL 4 1032 52 0.6 1 1 50   
84 NUCLEAR REACTORS, BOILERS, MACHINERY AND 
MECHANICAL APPLIANCES; PARTS THEREOF 6 18501 753 8.6 7 16 718 12 
85 ELECTRICAL MACHINERY AN D EQUIPMENT AND PARTS 
THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SO UND RECORDERS AND 
REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH 
ARTICLES 9 12068 458 5.3 25 19 407 7 
86 RAILWAY OR TRAMWAY LOCOMOTIVES, ROLLING-STOCK 
AND PARTS THEREOF; RAILWAY OR TRAMWAY TRACK 
FIXTURES AND FITTINGS AND PARTS THEREOF; 
MECHANICAL (INCLUDING ELECTRO-MECHANICAL) TRAFFIC SIGNALLING EQUIPMENT OF ALL KINDS 1 647 27 0.3     27   
87 VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING-
STOCK, AND PARTS AND ACCESSORIES THEREOF 4 3102 206 2.4 9 55 141 1 
88 AIRCRAFT, SPACECRAFT, AND PARTS TH EREOF 1 434 15 0.2     15   
89 SHIPS, BOATS AND FLOATING STRUCTURES 1 464 17 0.2     17   
90 OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, 
MEASURING, CHECKING, PRECISION, MEDICAL OR 
SURGICAL INSTRUMENTS AND APPARATUS; PARTS AND ACCESSORIES THEREOF 6 5757 175 2.0   10 148 17 
91 CLOCKS AND WATCHES AND PARTS THEREOF 5 1535 212 2.4 17 26 77 92 
92 MUSICAL INSTRUMENTS; PARTS AND ACCESSORIES OF 
SUCH ARTICLES 3 632 27 0.3   2 25   
93 ARMS AND AMMUNITION; PARTS AND ACCESSORIES 
THEREOF 4 508 47 0.5   15 25 7  
  TN/MA/S/10/Rev.1
 Page 15HS 
CHAPTER DESCRIPTION  N UMBER 
OF 
MEMBERS  TOTAL 
NON-AG 
TARIFF 
LINES OF 
WHICH : 
NON-AD 
VALOREM  %  OF 
TOTAL  S C M O 
94 FURNITURE; BEDDING, MATTR ESSES, MATTRESS SUPPORTS, 
CUSHIONS AND SIMILAR STUFFED FURNISHINGS; LAMPS 
AND LIGHTING FITTINGS, NOT ELSEWHERE SPECIFIED OR 
INCLUDED; ILLUMINATED SIGNS, ILLUMINATED NAME-PLATES AND THE LIKE; PREFABRICATED BUILDINGS 4 1442 50 0.6   1 49   
95 TOYS, GAMES AND SPORTS REQUISITES; PARTS AND 
ACCESSORIES THEREOF 4 1306 47 0.5 1   45 1 
96 MISCELLANEOUS MANUFACTURED ARTICLES 9 1501 130 1.5 12 31 86 1 
97 WORKS OF ART, COLLECTORS' PIECES AND ANTIQUES 2 173 3 0.0 1   2    
 TN/MA/S/10/Rev.1 
Page 16 
 Annex Table 3 :  Cross tabulation of  NAV duties by HS chapter and Member  
 
HS chapter 
Australia 
Bulgaria 
Canada 
European Communities 
FYR of Macedonia 
Haiti 
Iceland 
India 
Israel 
Japan 
Jordan 
Korea  Republic of 
Kyrgyz Republic 
Malaysia 
Mexico 
New Zealand 
Norway 
Papua New Guinea 
Solomon Islands 
Sri Lanka 
Suriname 
Switzerland 
Taipei  Chinese 
Thailand 
United States 
Zimbabwe 
TOTAL 
All 5 1 23 40 10 792 1 332 564 212 2 21 36 9 1 237 121 4 51 16 1 5,068 86 692 377 14 8,719 
03 5       10 22     49                         25 48 1 5   165 
15           3       1             5         10     3   22 
16     2     3     1               2         18 2 8 1   37 
23                                 1         1         2 
25     2 3   1                               41   3 1   51 
26                                           2     9   11 
27           6       2     36           21   1 26     16   108 
28                 2         2               140         144 
29           10     1         1               226         238 
30           16     2                                   18 
31                                           18         18 
32                 1                         44     1   46 
33   1 1 2   5 1             1 1     1 3     23   1 2   42 
34     1     3               1               25   13     43 
35                                           9         9 
36                                   1 8     9         18 
37     2           3     20           2 2     34   1     64 
38           1     1         4     3         51         60 
39                 6             4           122   118     250 
40                               1           75   5     81 
41                 10                         21   16     47 
42                 3             2 2         25     1   33 
43                 3                         9         12 
44           12     7                         77     2   98 
45                                           9         9 
46                 7                         6         13 
47                                           16         16 
48                 4               50         112   109     275 
49                                           10   3     13 
50           9                               14         23  
  TN/MA/S/10/Rev.1
 Page 17HS chapter 
Australia 
Bulgaria 
Canada 
European Communities 
FYR of Macedonia 
Haiti 
Iceland 
India 
Israel 
Japan 
Jordan 
Korea  Republic of 
Kyrgyz Republic 
Malaysia 
Mexico 
New Zealand 
Norway 
Papua New Guinea 
Solomon Islands 
Sri Lanka 
Suriname 
Switzerland 
Taipei  Chinese 
Thailand 
United States 
Zimbabwe 
TOTAL 
51               11 21 9                       43     4   88 
52           141   56 71 161                       174   77     680 
53           3                               16         19 
54           102   48 42                         73   34 8   307 
55           111   66 21               15         164   68     445 
56           4     28 1                       37   4 4   78 
57       3   3   7 5               1         23   23     65 
58           29   30 12 1                       44   36 5   157 
59           2     52                         25         79 
60               1                           18   16     35 
61               35 4             109 1         126   32 25   332 
62           101   75 12             77           200   23 34   522 
63           3   3 7               9         99   5 1   127 
64                   23             16         38   3 14   94 
65           4                               12   3 10   29 
66                                           7   3     10 
67                                           9         9 
68           21                               55   13 1   90 
69                 2               5         34   13     54 
70       9   29     1               8         78   24 6   155 
71                 5                         53         58 
72     8     7     50                         250 35       350 
73           47     3                         249         299 
74           1     2                         123   5     131 
75                   3                       27         30 
76     2                           3         38   5     48 
78                   4                       11     4   19 
79                   4                       11     2   17 
80                                           11         11 
81                   1                       40 1   3   45 
82           14     10                         84     40   148 
83                 1                         48   2 1   52 
84     1     12     16             12           711     1   753 
85           30     20     1       6     17 9   352   18 5   458  
 TN/MA/S/10/Rev.1 
Page 18 
 HS chapter 
Australia 
Bulgaria 
Canada 
European Communities 
FYR of Macedonia 
Haiti 
Iceland 
India 
Israel 
Japan 
Jordan 
Korea  Republic of 
Kyrgyz Republic 
Malaysia 
Mexico 
New Zealand 
Norway 
Papua New Guinea 
Solomon Islands 
Sri Lanka 
Suriname 
Switzerland 
Taipei  Chinese 
Thailand 
United States 
Zimbabwe 
TOTAL 
86                                           27         27 
87           12     55             10           129         206 
88                                           15         15 
89                                           17         17 
90           13     6             6           133   2 15   175 
91       23         2             3           59     125   212 
92                 1                         25     1   27 
93                               4           25     4 14 47 
94           9     1                     7   33         50 
95                               1           44   1 1   47 
96     4     3     13 2 2         2           78   4 22   130 
97                 1                         2         3 
 
 
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