Schedule of Nicaragua to Annex 3.3

Nicaragua Tariff Schedule General Notes

GENERAL NOTES

TARIFF SCHEDULE OF THE REPUBLIC OF NICARAGUA

 

1. The provisions of this Schedule are generally expressed in terms of the Arancel

Centroamericano de Importación, which includes the Sistema Arancelario Centroamericano

(“SAC”), and the interpretation of the provisions of this Schedule, including the product

coverage of tariff items of this Schedule, shall be governed by the General Notes, Section Notes,

and Chapter Notes of the Arancel Centroamericano de Importación.  To the extent that

provisions of this Schedule are identical to the corresponding provisions of the Arancel

Centroamericano de Importación, the provisions of this Schedule shall have the same meaning

as the corresponding provisions of the Arancel Centroamericano de Importación. 

 

2. The base rates of duty set out in this Schedule reflect the Arancel Centroamericano de

Importación MFN rates of duty in effect on November 18, 2004.

 

3. In addition to the staging categories listed in Annex 3.3, paragraph 1, this Schedule

contains staging categories M, N, O, P, and Q.

 

(a) Duties on originating goods provided for in the items in staging category M shall be

removed in ten stages.  On the date this Agreement enters into force, duties shall be

reduced by two percent of the base rate, and by an additional two percent on January 1 of

year two.  On January 1 of year three, duties shall be reduced by an additional eight

percent of the base rate, and by an additional eight percent of the base rate each year

through year six.  On January 1 of year seven, duties shall be reduced by an additional 16

percent of the base rate, and by an additional 16 percent of the base rate each year

thereafter through year nine, and such goods shall be duty-free effective January 1 of

year ten.

 

(b) Duties on originating goods provided for in the items in staging category N shall be

removed in 12 equal annual stages beginning on the date this Agreement enters into

force, and such goods shall be duty-free, effective January 1 of year 12.

 

(c) Duties on originating goods provided for in the items in staging category P shall remain

at base rates for years one through ten.  On January 1 of year 11, duties shall be reduced

by 8.25 percent of the base rate, and by an additional 8.25 percent of the base rate each

year through year 14.  On January 1 of year 15, duties shall be reduced by an additional

16.75 percent of the base rate, and by an additional 16.75 percent of the base rate each

year thereafter through year 17, and such goods shall be duty-free effective January 1 of

year 18.

 

(d) Duties on originating goods provided for in items in staging category Q shall be reduced

to 15 percent on January 1 of year one.  On January 1 of year four, duties shall be

reduced by 6.6 of 15 percent, and by an additional 6.6 percent of 15 percent each year

thereafter through year eight.   On January 1 of year nine, duties shall be reduced by an

additional 9.6 percent of 15 percent each year thereafter through year 14, and such goods

shall be duty-free effective January 1 of year 15.

Annex 3.3-NI Notes-1

 

 

4. During the transition period, only a qualifying good is eligible for the in-quota tariff rate

for each such good specified in Appendix I; originating goods that are not qualifying goods shall

be subject to the over-quota tariff rate for the good specified in Appendix I.  For purposes of this

note, “qualifying good” means a good that satisfies the requirements of Chapter Four (Rules of

Origin and Origin Procedures), except that operations performed in or material obtained from a

Central American Party or the Dominican Republic shall be considered as if the operations were

performed in a non-Party and the material was obtained from a non-Party. 

 

5. Originating goods imported into Nicaragua shall not be subject to any duties applied

pursuant to Article 5 of the WTO Agreement on Agriculture.

 

6. With respect to goods provided for in heading 1701 and subheadings 0901.11, 0901.12,

0901.21, 0901.22, the tariff commitments set out in this Schedule shall apply only to a United

States originating good.  For purposes of this note, a “United States originating good” means a

good that satisfies the requirements of Chapter Four (Rules of Origin and Origin Procedures),

except that operations performed in or material obtained from a Central American Party or the

Dominican Republic shall be considered as if the operations were performed in a non-Party and

the material was obtained from a non-Party.  In the event that Nicaragua provides preferential

tariff treatment to a good covered by this note under the legal instruments of Central American

integration or pursuant to an agreement with the Dominican Republic, this note shall no longer

apply to such good.

 

7. (a) Except as Nicaragua and the Dominican Republic may otherwise agree, the tariff

commitments set out in this Schedule shall not apply to an originating good

classified under heading 2203, 2207, or 2208, or subheading 2401.20, 2402.20

(only goods containing rubio), or 2403.10 that is imported directly from the

territory of the Dominican Republic.

 

(b) Nicaragua and the Dominican Republic shall conclude negotiations on the tariff

treatment to be applied to originating goods classified under subheadings

0207.11, 0207.12, 0207.13, 0207.14, 0402.10, 0402.21, 0402.29, 0703.10,

0703.20, 0713.31, 0713.32, 0713.33, 1006.10, 1006.20, 1006.30, 1006.40, and

1101.00, and headings 2710, except mineral solvents, 2712, 2713, except

subheading 2713.20, and 2715 that are imported directly into the territory of

Nicaragua from the territory of the Dominican Republic no later than the date that

is one year after the date on which this Agreement enters into force with respect

to Nicaragua and the Dominican Republic, and any agreed tariff treatment shall

form part of this Schedule.  During this one-year period, duties on such goods

shall remain at base rates.  At the expiration of the one-year period, if Nicaragua

and the Dominican Republic have not reached an agreement regarding the tariff

treatment of any such good, duties on the good shall remain at base rates for years

one through ten.  On January 1 of year 11, duties on the good shall be reduced by

eight percent of the base rate, and by an additional eight percent of the base rate

each year thereafter through year 15.  On January 1 of year 16, duties on the good

shall be reduced by an additional 12 percent of the base rate, and by an additional

Annex 3.3-NI Notes-2

 

12 percent of the base rate through year 19, and the good shall be duty-free

effective January 1 of year 20.

 

8. Nicaragua shall apply the following tariff treatment to originating goods classified under

tariff item 1507.90.00, 1508.90.00, 1509.90.00, 1510.00.00, 1511.90.90 (except palm stearin),

1512.19.00, 1512.29.00, 1513.19.00, 1513.29.00, 1514.19.00, 1514.99.00, 1515.19.00,

1515.29.00, 1515.30.00, 1515.40.00, 1515.50.00, 1515.90.10, 1515.90.20, 1515.90.90,

1516.10.00, 1516.20.10, 1516.20.90, 1517.10.00, 1517.90.10, 1517.90.20, 1517.90.90, or

1518.00.00 that are imported directly from the territory of the Dominican Republic:  Duties on

these goods shall remain at base rates for years one through five.  Beginning on January 1 of

year six, duties shall be reduced by eight percent of the base rate annually through year ten. 

Beginning on January 1 of year 11, duties shall be reduced by an additional 12 percent of the

base rate annually through year 14, and such goods shall be duty-free effective January 1 of year

15. 

 

9. Appendix II provides tariff-rate quotas with respect to the goods set out in that Appendix.

 

10. For purposes of these General Notes, a good shall not be considered to be imported

directly from the territory of the Dominican Republic if the good:

 

(a) undergoes subsequent production or any other operation outside the territory of

the Dominican Republic, other than unloading, reloading, or any other operation

necessary to preserve the good in good condition or to transport the good to the

territory of Nicaragua; or

 

(b) does not remain under the control of customs authorities in the territory of the

United States or a non-Party.

 

 

Annex 3.3-NI Notes-3

 

Appendix I

 

Tariff-Rate Quotas

 

Notes

 

1. This Appendix contains modifications of the provisions of the Arancel Centroamericano

de Importación (“ACI”) as applied by Nicaragua.  Subject to note 4 of the General Notes of

Nicaragua, originating goods included in this Appendix are subject to the rates of duty set out in

this Appendix in lieu of the rates of duty set out in Chapters 1 through 97 of the ACI. 

Notwithstanding any tariff-rate quota provisions provided for elsewhere in the ACI, originating

goods shall be permitted entry into Nicaragua as provided in this Appendix.  Furthermore, any

quantity of goods imported from the United States under a tariff-rate quota provided in this

Appendix shall not be counted toward the in-quota amount of any tariff-rate quota provided for

such goods elsewhere in the ACI.  

 

2. Except as otherwise provided in this Appendix, Nicaragua shall allocate the in-quota

quantities of each qualifying good to persons based on the proportion of the total quantity of

imports of the good that each person imported during a previous representative period, while

also allocating a reasonable proportion of the in-quota quantities to new entrants, if any. 

Nicaragua shall establish, on entry into force of this Agreement, a mechanism for reallocating

unused in-quota quantities to interested persons.

 

Pork

 

3. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 1,100

2 1,200

3 1,300

4 1,400

5 1,500

6 1,600

7 1,700

8 1,800

9 1,900

10 2,000

11 2,100

12 2,200

13 2,300

Annex 3.3-NI Notes-4

 

14 2,400

15 unlimited

 

 

For a period not greater than three years from the date of entry into force of the

Agreement, Nicaragua shall allocate the in-quota quantities on an objective basis

consistent with Article 3.13.  Thereafter, Nicaragua shall allocate the in-quota

quantities to persons based on the proportion of the total quantity of the good that

each person imported during a previous representative period, while also

allocating a reasonable proportion of the in-quota quantities to new entrants, if

any.  Nicaragua shall establish a mechanism for reallocating unused in-quota

quantities to interested persons.

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provisions of staging

category D in Annex 3.3, paragraph 1(d).

 

(c) Subparagraphs (a) and (b) apply to the following SAC provisions:

02031100, 02031200, 0203190010, 0203190090, 02032100,

02032200,0203290010, and 0203290090.

 

Chicken Leg Quarters

 

4. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 0

2 0

3 317

4 635

5 952

6 1,269

7 1,587

8 1,904

9 2,222

10 2,539

11 2,856

12 3,174

13 To Be Determined

14 To Be Determined

15 To Be Determined

Annex 3.3-NI Notes-5

 

16 To Be Determined

17 To Be Determined

18 unlimited

 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provisions of staging

category P in paragraph 3(c) of the General Notes of Nicaragua to Annex 3.3.

 

(c) Subparagraphs (a) and (b) apply to the following SAC provisions:

0207139920, 0207149920, and 16023200A.

 

(d) The aggregate quantity of goods entered under subparagraph (a) in years 13 to 17

shall be determined through consultations between the United States and

Nicaragua.  In the event that the United States and Nicaragua fail to reach an

agreement, the aggregate quantity of goods entered under subparagraph (a) in any

such year shall be equal to five percent of the national chicken production of

Nicaragua.

 

(e) If an Export Trade Certificate (“ETC”) is approved pursuant to the Export

Trading Company Act of 1982, 15 U.S.C. Sec. 4011-4021 (2000), and if

Nicaragua and the United States agree that the in-quota quantities should be

allocated pursuant to that ETC, Nicaragua shall adopt or maintain appropriate

procedures to allocate the in-quota quantities under subparagraph (a) pursuant to

the terms of the ETC.  There shall be no separate import licensing requirement for

quantities allocated pursuant to the ETC.  

 

(f) If Nicaragua and the United States do not agree that the in-quota quantities should

be allocated pursuant to the ETC, or the ETC is not approved, the in-quota

quantities shall be allocated pursuant to an open and public auction system, the

terms of which are to be established by mutual agreement of Nicaragua and the

United States.

 

Milk Powder

 

5. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 650

2 683

3 717

Annex 3.3-NI Notes-6

 

4 752

5 790

6 829

7 871

8 915

9 960

10 1,008

11 1,059

12 1,112

13 1,167

14 1,226

15 1,287

16 1,351

17 1,419

18 1,490

19 1,564

20 unlimited

 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provision of staging

category F in Annex 3.3, paragraph 1(f).

 

(c) Subparagraphs (a) and (b) apply to the following SAC provisions:

04021000, 04022111, 04022112, 04022121, 04022122, and 04022900.

 

Butter

 

6. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 150

2 158

3 165

4 174

5 182

6 191

7 201

8 211

9 222

Annex 3.3-NI Notes-7

 

10 233

11 244

12 256

13 269

14 283

15 297

16 312

17 327

18 344

19 361

20 unlimited

 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provisions of staging

category F in Annex 3.3, paragraph 1(f).

 

(c) Subparagraphs (a) and (b) apply to the following SAC provisions:

04051000 and 04052000.

 

Cheese

 

7. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 575

2 604

3 634

4 666

5 699

6 734

7 770

8 809

9 849

10 892

11 937

12 983

13 1,033

14 1,084

15 1,138

Annex 3.3-NI Notes-8

 

16 1,195

17 1,255

18 1,318

19 1,384

20 unlimited

 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provisions of staging

category F in Annex 3.3, paragraph 1(f).

 

(c) Subparagraphs (a) and (b) apply to the following SAC provisions:

04061000, 04062090, 04063000, 04064000, 04069010, 04069020, and 04069090.

 

Ice Cream

 

8. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Liters)

1 72,815

2 76,456

3 80,279

4 84,293

5 88,507

6 92,933

7 97,579

8 102,458

9 107,581

10 112,960

11 118,608

12 124,539

13 130,766

14 137,704

15 144,169

16 151,378

17 158,947

18 166,894

19 175,239

20 unlimited

 

Annex 3.3-NI Notes-9

 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provisions of staging

category F in Annex 3.3, paragraph 1(f).

 

(c) Subparagraphs (a) and (b) apply to the following SAC provision: 21050000.

 

Other Dairy Products

 

9. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 50

2 52

3 55

4 58

5 61

6 64

7 67

8 70

9 74

10 77

11 81

12 85

13 90

14 94

15 99

16 104

17 109

18 115

19 120

20 unlimited

 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provisions of staging

category F in Annex 3.3, paragraph 1(f).

 

(c) Subparagraphs (a) and (b) apply to the following SAC provisions:

19019090, 22029090 (milk-based drinks only).

 

Annex 3.3-NI Notes-10

 

Yellow Corn

 

10. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 68,250

2 71,500

3 74,750

4 78,000

5 81,250

6 84,500

7 87,750

8 91,000

9 94,250

10 97,500

11 100,750

12 104,000

13 107,250

14 110,500

15 unlimited

 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provisions of staging

category E in Annex 3.3, paragraph 1(e).

 

(c) Subparagraphs (a) and (b) apply to the following SAC provision: 10059020.

 

White Corn

 

11. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 5,100

2 5,200

3 5,300

4 5,400

Annex 3.3-NI Notes-11

 

5 5,500

6 5,600

7 5,700

8 5,800

9 5,900

10 6,000

11 6,100

12 6,200

13 6,300

14 6,400

15 6,500

16 6,600

17 6,700

18 6,800

19 6,900

20 7,000

 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be applied in accordance with the provisions of staging

category H in Annex 3.3, paragraph 1(h).

 

(c) Subparagraphs (a) and (b) apply to the following SAC provision: 10059030.

 

Rough Rice

 

12. (a) Nicaragua may maintain and administer performance requirements existing on the

date of entry into force of this Agreement for rough rice provided that:

 

(i) the performance requirements are maintained at a level not to exceed the

total in-quota quantity specified for the good;

 

(ii) the performance requirements are administered so as not to impair the

orderly fill of the in-quota quantity; and

 

(iii) the performance requirements are eliminated when the over-quota duty

reaches zero.

 

(b) The aggregate quantity of goods entered under the provisions listed in

subparagraph (d) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

Annex 3.3-NI Notes-12

 

1 92,700

2 95,400

3 98,100

4 100,800

5 103,500

6 106,200

7 108,900

8 111,600

9 114,300

10 117,000

11 119,700

12 122,400

13 125,100

14 127,800

15 130,500

16 133,200

17 135,900

18 unlimited

 

Nicaragua shall allocate the in-quota quantities that are subject to performance

requirements to persons that satisfy those requirements.

 

(c) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (b) shall be removed in accordance with the provisions of staging

category P in paragraph 3(c) of the General Notes of Nicaragua to Annex 3.3.

 

(d) Subparagraphs (a), (b) and (c) apply to the following SAC provision: 10061090.

 

Milled Rice

 

13. (a) The aggregate quantity of goods entered under the provisions listed in

subparagraph (c) shall be free of duty in any calendar year specified herein, and

shall not exceed the quantity specified below for the United States in each such

year:

 

Year Quantity

(Metric tons)

1 13,650

2 14,300

3 14,950

4 15,600

5 16,250

6 16,900

7 17,550

Annex 3.3-NI Notes-13

 

8 18,200

9 18,850

10 19,500

11 20,150

12 20,800

13 21,450

14 22,100

15 22,750

16 23,400

17 24,050

18 unlimited

 

 

For a period not greater than three years from the date of entry into force of the

Agreement, Nicaragua shall allocate the in-quota quantities on an objective basis

consistent with Article 3.13.  Thereafter, Nicaragua shall allocate the in-quota

quantities to persons based on the proportion of the total quantity of the good that

each person imported during a previous representative period, while also

allocating a reasonable proportion of the in-quota quantities to new entrants, if

any.  Nicaragua shall establish a mechanism for reallocating unused in-quota

quantities to interested persons.

 

(b) Duties on goods entered in aggregate quantities in excess of the quantities listed

in subparagraph (a) shall be removed in accordance with the provisions of staging

category P in paragraph 3(c) of the General Notes of Nicaragua to Annex 3.3.

 

(c) Subparagraphs (a) and (b) apply to the following SAC provisions:

10062000, 10063010, 10063090, and 10064000.

 

 

Annex 3.3-NI Notes-14

 

Appendix II

 

Tariff-Rate Quotas  

 

Notes

 

1. This Appendix contains modifications of the provisions of the Arancel Centroamericano

de Importación (“ACI”) as applied by Nicaragua.  Pursuant to note 9 of the General Notes of

Nicaragua, originating goods imported directly from the territory of the Dominican Republic and

included in this Appendix are subject to the rates of duty set out in this Appendix in lieu of the

rates of duty set out in Chapters 1 through 97 of the ACI.  Notwithstanding any tariff-rate quota

provisions provided for elsewhere in the ACI, originating goods imported directly from the

territory of the Dominican Republic shall be permitted entry into Nicaragua as provided in this

Appendix.  Furthermore, any quantity of goods imported from the Dominican Republic under a

tariff-rate quota provided in this Appendix shall not be counted toward the in-quota amount of

any tariff-rate quota provided for such goods elsewhere in the ACI.

 

2. For a period not greater than three years from the date of entry into force of the

Agreement, Nicaragua’s Ministerio de Fomento, Industria y Comercio shall allocate the in-quota

quantities of each originating good subject to this Appendix on an objective basis consistent with

Article 3.13.  Thereafter, the Ministerio de Fomento, Industria y Comercio shall allocate the in-

quota quantities of each such good to persons based on the proportion of the total quantity of the

good that each person imported during a previous representative period, while also allocating a

reasonable proportion of the in-quota quantities to new entrants, if any.  The Ministerio de

Fomento, Industria y Comercio shall establish a mechanism for reallocating unused in-quota

quantities to interested persons.

 

Chicken Breasts

 

3. (a) In any calendar year, an aggregate quantity of 443 metric tons of goods classified

under the provisions listed in subparagraph (c) may be entered subject to the

following duty treatment:  10 percent ad valorem. 

 

(b) Duties on goods entered in aggregate quantities in excess of the quantity set out in

subparagraph (a), shall be applied in accordance with note 7(b) of Nicaragua’s

General Notes. 

 

(c) Subparagraphs (a) and (b) apply to chicken breasts entered under the following

SAC provisions:  0207.13.91 and 0207.14.91. 

 

Annex 3.3-NI Notes-15

 

Onions and Shallots 

 

4. (a) In any calendar year, an aggregate quantity of 375 metric tons of goods classified

under the provisions listed in subparagraph (c) may be entered subject to the

following duty treatment:  7.5 percent ad valorem.  

 

(b) Duties on goods entered in aggregate quantities in excess of the quantity set out in

subparagraph (a), shall be applied in accordance with note 7(b) of Nicaragua’s

General Notes. 

 

(c) Subparagraphs (a) and (b) apply to onions and shallots entered under the

following SAC provision:  0703.10.

 

Beans

 

5. (a) In any calendar year, an aggregate quantity of 1,800 metric tons of goods

classified under the provisions listed in subparagraph (c) may be entered subject

to the following duty treatment:  

 

(i) For beans provided for in subheading 0713.32, beginning on the date this

Agreement enters into force, duties shall be 20 percent ad valorem. 

Duties shall be removed in four equal annual stages beginning January 1

of year two, and such goods shall be duty-free effective January 1 of year

five.

 

(ii) For beans provided for in subheading 0713.31 and 0713.33, beginning on

the date this Agreement enters into force, duties shall be 20 percent ad

valorem.  Duties shall be removed in two equal annual stages beginning

January 1 of year two, and such goods shall be duty-free effective January

1 of year three.

 

(b) Duties on goods entered in aggregate quantities in excess of the quantity set out in

subparagraph (a), shall be applied in accordance with note 7(b) of Nicaragua’s

General Notes.

 

(c) Subparagraphs (a) and (b) apply to beans entered under the following SAC

provisions:  0713.31, 0713.32, and 0713.33.

 

 

 

Annex 3.3-NI Notes-16

 

Nicaragua Tariff Schedule

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