Tariff Rates 2002
In
a span of five years, overall average tariffs had been steadily
decreasing at an average rate of 10% (Table 1).
As in previous years, average tariffs for the agriculture
sector remained consistently high compared to the mining and
manufacturing sectors (Chart 1).
High quota rates had been the major factor for the average
tariff to be significantly higher for agriculture.
Table
1
Simple
Average Tariffs
By
Sector: 1998-2002 (in percent)
Sector
|
1998
|
1999
|
2000
|
2001
|
2002
|
|
Agriculture
|
18.91
|
16.33
|
14.4
|
14.21
|
12.18
|
|
Mining
|
3.58
|
3.51
|
3.27
|
3.25
|
2.84
|
|
Manufacturing
|
9.36
|
8.98
|
6.92
|
6.68
|
5.04
|
|
Overall
|
10.69
|
9.98
|
7.96
|
7.71
|
6.03
|
Weighted
by the value of imports in 2001, average tariffs fell further at
an average rate of 15% (Table 2). In 2002, the overall
average tariff rate was 3%. The weighted average for
the agriculture sector had been reduced significantly to a single
digit level of 8% which was lower by 37% from its 2001 level.
Apparently, the sharp decline in the average tariff for this
sector is attributed to the 0% duty on agricultural products
imported under AFMA.
Table
2
Weighted
Average Tariffs
By
Sector: 1998-2002 (in percent)
Sector
|
1998
|
1999
|
2000
|
2001
|
2002
|
|
Agriculture
|
23.83
|
17.11
|
15.74
|
12.14
|
7.62
|
|
Mining
|
3.19
|
3.09
|
3.07
|
3.20
|
3.10
|
|
Manufacturing
|
5.68
|
5.76
|
3.85
|
3.84
|
2.91
|
|
Overall
|
7.57
|
6.85
|
4.95
|
4.59
|
3.20
|
Compared
to 1998 when only 69% of tariff lines had rates below 10%, this
proportion increased to 88% in 2002 (Table 3). Out of 5,640
lines, about 88% are dutiable under 10%, which is only 22% short
from the 2003 target.
Under
the present structure, tariffs cluster within the 1% - 7% range
(Chart 2) with a maximum rate of 65% and minimum rate of 0%.
Table
3
Frequency Distribution of Tariff Rates: 1998-2002
|
Tariff Rate
|
Percent Share to Total HS Lines
|
|
1998
|
1999
|
2000
|
2001
|
2002
|
|
0%
|
0.20
|
2.80
|
5.59
|
5.69
|
5.30
|
|
1%
|
|
|
|
|
16.45
|
|
3%
|
50.99
|
48.95
|
47.37
|
49.87
|
34.31
|
|
5% & 7%
|
1.83
|
2.80
|
12.09
|
11.65
|
24.47
|
|
10%
|
13.99
|
15.18
|
16.60
|
13.99
|
7.80
|
|
15%
|
8.03
|
6.26
|
7.13
|
8.23
|
8.83
|
|
20%
|
13.44
|
15.61
|
8.13
|
7.71
|
0.09
|
|
Above 20%
|
11.51
|
8.39
|
3.08
|
2.86
|
2.75
|
|
All
|
100.00
|
100.00
|
100.00
|
100.00
|
100.00
|
Chart
3 indicates higher levels of protection in the agriculture and
manufacturing sectors relative to mining. The decline in the
average effective protection rate ran parallel with the movement
in tariffs. Overall average EPR in 2002 was 14%.
| 
