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Exercise 1:
Tariffs

Product: HS-940360 / Wooden furniture


Exporting country: Viet Nam
Target markets: Canada & South Africa
HOW TO ENTER A TARGET MARKET
TARIFFS AND OTHER MARKET ACCESS REQUIREMENTS

1. INTRODUCTION

Go to https://marketanalysis.intracen.org and log in to your ITC Tools account on the upper right corner of
the page.

2. DATA AVAILABILITY

Go to Market Access Map: https://marketanalysis.intracen.org/ or straight to www.macmap.org

2.1. Find out the latest available year for different types of information for your two target markets: Canada
and South Africa.

Hint: Go to “about” and click on “Data availability”.


 Use the tabs on top of the table to navigate between different data types.
 Note down the last year for which data has been uploaded on Market Access Map.

i. For Applied tariffs (…../1)


ii. For Tariff rate quota (…../1)
iii. For Trade remedies (…../1)
Latest available year
Type of data
Canada South Africa

Applied tariffs

Tariff rate quota

Trade Remedies

3. IDENTIFY TARIFF RATES IN YOUR TARGET MARKETS

3.1. Identify the tariffs applied by your target markets, Canada and South Africa, to your product at HS6
level imported from Viet Nam and enter the information below:

Hint: Go to “Access” and click on “Custom Tariffs”.


 Enter your target market (Destination country), your home country (Exporting country), the latest
available year and your product at the HS6 level.

i. What is the NTL code of your product in the two target markets? (…../1)
ii. What is the tariff regime applied to your product in the two target markets? (…../2)
iii. What are the applied tariffs with units applied to your product by the two target markets?
(…../1)
iv. What is the total ad valorem equivalent tariff (%) in the two target markets? (…../1)

Total AVE
Tariff regime (MFN, Name of the
(ad valorem
Target Market NTL code trade agreement or non- Applied tariffs, %
equivalent)
reciprocal preference scheme)
tariff, %

Canada

South Africa

Note: If several NTLC are available, choose the NTLC that most accurately matches your product
description.

3.2. Please fill in the table below on preferential market access and tariff advantage:

Hint: For specific tariffs, use the Ad valorem equivalent (AVE) to calculate the Tariff advantage.
Please compare the preferential tariffs (if available) to the MFN rate applicable in the same year.
i. Is your country benefitting from a preferential tariff for your product in any of the two target
markets? (…. /1)
ii. If applicable, calculate the tariff advantage. (…. /1)

Is your country benefiting


from a preferential tariff for Tariff advantage:
Target market this product in the specific Calculate the difference between the MFN rate
target market? Answer Yes and the preferential rate (if it exists).
or No.

Canada

South Africa

4. MARKET ACCESS MAP ADVANCED TARIFF COMPARISON QUESTIONS

4.1

i. What is the total Ad-valorem tariff faced by the top three exporting countries for this product in
Canada? (…. /1)
ii. What is the total Ad-valorem tariff faced by the top three exporting countries for this product in
South Africa? (…. /1)
Please fill in the table below:

Top three exporting Ad Valorem Equivalent Tariff faced Ad Valorem Equivalent Tariff faced
Countries vs. Viet Nam In Canada In South Africa

Poland

Italy

China

4.2 Does Viet Nam have a tariff advantage or disadvantage vis-à-vis its competitors in your two target
markets? Please use the results found above. (…. /2)
5. MARKET ACCESS MAP COUNTRY ANALYSIS

5.1 Find the map of the MFN tariffs applied to your country/product in Asia. (…. /2)

Hint: Go to “Compare” and select “markets” from the drop-down menu. Then, select your country as
“Exporting country” and leave all as the “destination country”. Then select the product. Finally, go
to “Map” and select “MFN tariffs” as protection measure and “Asia” as geographic region.

5.2 According to the map, which is the country with the highest average tariff in the region? How much is it?
(…. /1)

5.3 From the top 10 markets based on trade and distance, which one has the highest Effectively Applied
Tariff? Which one(s) the lowest? How much is it? (…. /1)

Hint: Now move to “chart” and select “top 10 markets based on trade and distance”.

6. TARIFF REGIMES

6.1 As of 2021, which are the tariff regimes that Canada’s is part of?

Hint: Go to “Access” and select “Custom Tariffs”. Select the target market as the “Destination
Country” and leave “all” for the exporting country. Select the latest available year and the
selected HS product.
6.2 Find the preferential tariff with Colombia. Since when is it in force? (…. /1)

6.3 Among the different tariff regimes of Canada (besides MFN), which one has the highest Ad Valorem
Equivalent? How much? (…. /1)

6.4 Take a look at Canada’s tariff regimes from the year 2007. Between 2007 and 2018, what is the
difference? Has the MFN changed? (…. /2)

Hint: Change the year in the heading.

7. Optional Additional Exercises:

Now we suggest you use the following information to repeat the exercises. This is optional.

Exporting Importing Product


Question Product description
country country code

Fresh cut flowers and buds, of a kind


Costa Rica
2.1 – 3.2 Colombia 060319 suitable for bouquets or for ornamental
USA
purposes

Netherlands Fresh cut flowers and buds, of a kind


Costa Rica
4.1 – 4.2 Ecuador 060319 suitable for bouquets or for ornamental
USA
Kenya purposes

Fresh cut flowers and buds, of a kind


5.1 – 5.3 Colombia 060319 suitable for bouquets or for ornamental
purposes

Fresh cut flowers and buds, of a kind


6.1 – 6.2 USA 060319 suitable for bouquets or for ornamental
purposes

Fresh cut flowers and buds, of a kind


6.3 – 6.4 Colombia 060319 suitable for bouquets or for ornamental
purposes

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