Nafta Tariff System Research

Tariff law is formulated by sovereign state based on its need of economy and politics and general and specific policies. Tariff or Customs duty, which is an increase of cost and is used to protect domestic industry and coordinate home market, is imposed by Customs office on the goods imported or exported. The duty reallocates economic benefits and concerns the interests of manufacturer, consumers, importers and exporter. Free Trade Zone is established in terms of certain agreement by two or more countries or regions, in which the commercial and capital intercourse are free and without tariff between all of signatories. It's a form of regional and international economic collaboration and an important and necessary issue to stipulate tariff elimination and deduction between the parties in their Free Trade Agreement.North American Free Trade Agreement between the Government of Canada, the Government of the United Mexican States, and the Government of the United States of America( NAFTA )came into operation formally on January 1, 1994, and led to the formation the largest free trade group in the world -North American Free Trade Zone (NAFTZ) which has 360 million consumers and an annual GDP of $6000 billion. As provided in this agreement, in order to achieve absolutely free circulation of goods and service, the parties eliminated 65% of manufactures on the day of its operation and 15% in 5 years, and the mass of the others would eliminated in 10 years and the minority in 15 years. Without an identical external tariffs, the agreement provides strict rules of Origin Marking to ensure the parties benefits and prevent that the good of other countries is imported into the territory of the party with lower tariff so that the good can be imported into the territory of other parties. Therefore the Schedule for tariff elimination becomes the key matter needed to be revolved. In the agreement, tariff system is in Section-B of Part two.The establishment of NAFTZ and elimination of Customs duty between the parties greatly accelerate their trade, investigate and economy and enhance the competition of their products. This will take place of parts of non-members' market in North America undoubtedly and also bring about effect and impact onour Chinese trade with North America. If we will maintain and increase our trade with North America, we must take some corresponding countermeasures of our Customs duties. For example, we can take reciprocal measures against discriminatory tariffs and encourage exportation of the goods that are not provided to deduce or eliminate tariff in NAFTA or can be imported into the territory of the parties with no additional barriers. In this paper, I will expound the tariff system of NAFTA and its application and effectiveness, assay Chinese importation and exportation with North American in recent years, and analyze Chinese legal countermeasures against the tariff system of NAFTA. The paper includes four parts:Part one: Introduction. Expound the signature background and course and main contents of NAFTA. My purpose of this part is to have my readers get at NAFTA and NAFTZ and to prepare for the following discussion about the tariffs of the agreement and analysis of Chinese legal countermeasures against tariff system of the agreement.Part two: Tariff system in NAFTZ. I will elaborate tariff system Of NAFTA and its application and effectiveness in signatories. Although there is a big gap in economy between the three countries, implementing tariff elimination and deduction brings about great achievements for the parties' economy, commerce, importation and exportation. It demonstrates that establishing FTZ among countries with different development can be good for each other, that increasing Customs duty can't promote national industry and economy practically, and that detracting tariff is essential for us to adapt to modem world and to guarantee our trade growth, importation and exportation to North America and our products' competition and occupation in global and North American market.