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World Trade Organization Toolkit : Tariff Concessions

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Tariff Concessions and Tariff Schedules

There are many forms of barriers to international trade. The most obvious, well-known and transparent form of barriers to trade is the tariff which a country imposes on imports of goods.

The GATT does not prohibit tariffs as such but prohibits Members from imposing tariffs at a level higher than the level specified for each Member in its Schedule of concessions, i.e. the bound levels (Article II of the GATT).

The maximum level of duties which each Member undertakes is specific for each type of good or product as listed in the Schedule of Concessions of that Member.

The Schedules of concessions are voluminous since they specify the maximum level of duties by product.

Each Schedule is divided into four parts:

The first part lists the maximum tariffs which a WTO Member undertakes to apply on an MFN basis. That part is further divided into three sections: Section 1A - tariffs on agricultural products; Section 1B - tariff quotas on agricultural products; Section II - other products.

The second part details preferential concessions, i.e. tariffs relating to trade arrangements listed in Article I of the GATT.

The third part includes the concessions on non-tariff measures (NTMs).

The fourth part lays down the specific commitments on domestic support and export subsidies on agricultural products.

The Schedules consist of a list of the products descriptions referring to a tariff item number, followed by a tariff level - either specific or ad valorem (duties expressed as a percentage of the value of the goods).

The following example illustrates the organisation of a Schedule of Concession. The example flows from the Schedule of Concessions of the European Communities L XXX.

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