Philippines: Comprehensive tariff review starts on Monday

The Tariff Commission Monday starts a comprehensive review on most favored nation tariff from HS (Harmonized System) 1-97 of the Tariff and Customs Code covering 11,490 tariff lines with rates ranging from 0 to 65 percent in an effort to assist business in their strategic planning in the next four years.

Tariff Commission Chairman Edgardo B. Abon said the comprehensive tariff review is necessary because the current Comprehensive Tariff Program (CTP) is only up to December 31, 2010.

“Our Tariff and Customs Code is up to 2010 only, so we are doing this to bring out the rates for 2011 to 2015,” Abon said.

MFN tariffs cover the duty rates on imports coming from countries that the Philippines has no trade agreements. At present, the country has free trade agreement with ASEAN, China, Korea, Australia and New Zealand.

“The objective of this review is to make the CTP user friendly, to assist business in doing their strategic planning for the next four years,” Abon added.

The business community is keenly interested in the CTP review because tariff is part of the cost of doing business. The setting of a four-year CTP provides predictability to business.

During the week-long public consultations, Feb. 8-12, Abon said that industry stakeholders can ask for increase, decrease or for retention of existing tariffs but this would still be evaluated by the government in consideration of the other sectors.

Abon also explained that the Commission is not doing the tariff review because of the World Trade Organization but rather, “This is good for the country, not WTO.”

He also stressed that the country’s existing tariff rates are, by far, lower than the bound rates set by the WTO.

Source http://www.mb.com.ph

Banning of Chinese toys- Kids’ Story

Government of India has prohibited import of ‘Toys’ from China appearing under ITC Codes 9501, 9502, 9503 of Schedule – I of ITC(HS) Classifications of Export and Import Items. The prohibition has come with effect from 23 January 2009 and will remain in force for six months. Prohibition covers following toys from China:

9501 Wheeled toys designed to be ridden by children (for example, tricycles, scooters, pedal cars); dolls’ carriages

9502 Dolls representing only human beings

9503 Other toys; reduced-size (”scale”) models and similar recreational models, working or not; puzzles of all kinds

Although DGFT notification No. 82 /(RE-2008)/2004-2009 dated 23 January 2009 says that “Import of Toy” are prohibited, since the prohibition covers all goods falling under Codes 9501, 9502, 9503, even parts of such toys are covered within the said prohibition. The apparent reason for import ban on Chinese toys is concern about child safety. It is believed that Chinese toys contain high level of toxicity injurious to the health of a child. High levels of lead in children’s bodies can cause physical illnesses, including diarrhea and nausea, and can also, reportedly, harm children’s intellectual development and their IQ levels. Phthalates -DEHP, DBP and BBP, commonly added to plastic products to make them soft and pliable, found in soft plastic toys may cause serious long-term side effects, such as hormone malfunctioning and reproductive defects. CPC and other hazardous chemicals used in doll dress are believed to be carcinogenic. It is also alleged that Chinese toys have loose small parts which may come off from the toys while playing and may be a health hazard when swallowed by the child.  Read the rest of this article at http://scooters-for-kids.com/banning-of-chinese-toys-kids-story-2