Exercise 1:

Tariffs
NAME: VU CAO YEN NHI - 2112140083
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.

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 2022 2022

Tariff rate quota 2022 2022

Trade Remedies 2022 2022

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:

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)
Tariff regime (MFN, Name of Total AVE
the trade agreement or (ad valorem
Target Market NTL code Applied tariffs, %
non-reciprocal preference equivalent)
scheme) tariff, %
94036010 MFN 9.50% 9.50%

94036010 Preferential tariff for CPTPP

Canada 0% 0%
countries

94036010 Preferential tariff for GSP

6% 6%
countries

South Africa 94036029 MFN 20% 20%

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:

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

Canada Yes 3.5%-9.50%

South Africa No Non existed

4. MARKET ACCESS MAP ADVANCED TARIFF COMPARISON QUESTIONS

4.1.Please fill in the table below:

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

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

Poland 0% 0%

Italy 0% 0%

China 9.5% 20%

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)

In the case of Canada, Vietnam only faces a 0% Ad valorem tariff regime, which is the same as Poland and
Italy. Meanwhile China is facing a 9.5% ad valorem tariff. We can see that Vietnam in this situation is having
an advantage.

On the other hand, South Africa applies a 20% ad valorem tariff on both Vietnam and China, whereas it is
only 0% for Poland and Italy. It is clear that Vietnam has to face a big disadvantage.

5. MARKET ACCESS MAP COUNTRY ANALYSIS

5.1 Find the map of the MFN tariffs applied to your country/product in Asia. (…. /2)
5.2 According to the map, which is the country with the highest average tariff in the region? How
much is it? (…. /1)

Iran is the country with the highest average tariff, which is 55% (2020)

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)

The 10 countries have the same Effectively Applied Tariff, which is 0%

6. TARIFF REGIMES

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

As of 2021, Canada applied 2 tariff regimes which are the MFN and Preferential tariff.

6.2 Find the preferential tariff with Colombia. Since when is it in force? (…. /1)

The preferential tariff with Colombia is 0% (2022). It was in force from 2011-08-15

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

The Preferential tariff for GSP countries has the highest Ad Valorem Equivalent, which is 6%

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)
First of all, the name had changes for the HS code 940360, from Furniture in 2007 to Other furniture and
parts there of: Other wooden furniture: For domestic purposes

From 2007 to 2018, Canada has expanded its tariff regimes, specifically the preferential tariff. In 2007, there
were only 8 categories in the preferential tariff which are for: Chili, Commonwealth Caribbean countries,
GSP countries, Israel, least developed countries, Mexico, NAFTA countries and the United States. However,
this was changed from then to 2018, when Canada applied 19 categories of preferential tariff for different
countries. This has shown a more promising future and also reduced the burden for countries exporting
wooden furniture to Canada.

Meanwhile, the MFN has not changed since 2007 to 2018. It has stayed the same at the level of 9.5%.

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

Costa Rica Fresh cut flowers and buds, of a kind

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

Netherlands
Costa Rica Fresh cut flowers and buds, of a kind
4.1 – 4.2 Ecuador 060319 suitable for bouquets or for ornamental
USA purposes
Kenya

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
 Exercise 5:
Harmonized System (HS)
NAME: VU CAO YEN NHI - 2112140083

1. STRUCTURE (…../4)

Please choose a National Tariff Line code (NTL) and represent it showing the different levels of the
Harmonized System. It must show the names of the different levels. You can add to this
representation any legend to demonstrate that you have understood well the structure of the
Harmonized System.

NTL code: 1006102190

Chapter: 10 - Cereals

Heading: 10.06 - Rice

10.06.10 - Rice in the husk,
Subheading:
paddy or rough
NTL: country-specific tariffs and statistical breakdown: Rice: Long grain rice: Rice in husk ( paddy
or rough), long grain rice, seed ( out quota)

2. HS CODES SECTIONS (…../3)

Please explain the difference between the section and chapter.

The HS is organized into 21 sections, which are subdivided into 99 chapters. Sections are often wider than
chapters, it categorizes goods in a broader way. Chapters within the individual section will be ordered one
by one in a more specific way. For example: HS-100610 is in the section 2 “Vegetable products”, chapter
10 “Cereals”

3. HS CODES & CHAPTERS (…../3)

Fill the following table according to the Harmonized System information.

HS code Section Section name Chapter name

29.09.00 6 Products of the chemical or allied industries Organic chemicals

Edible fruit and nuts; peel of citrus

08.01.31 2 Vegetable products
fruit or melons
Products of the milling industry; malt;
11.01.00 2 Vegetable products
starches; inulin; wheat gluten
Natural or cultured pearls, precious
Natural or cultured pearls, precious or
or semi-precious stones, precious
semi-precious stones, precious metals,
71.08.13 14 metals, metals clad with precious
metals clad with precious metal, and articles
metal, and articles thereof; imitation
thereof; imitation jewellery; coin
jewellery; coin
 Wood and articles of wood; wood charcoal;
cork and articles of cork; manufactures of Wood and articles of wood; wood
44.08.39 9
straw, of esparto or of other plaiting charcoal
materials; basketware and wickerwork