Tariff Structure in Belize

Tariff Structure

• The tariff structure in Belize is based on the Harmonized System (HS) nomenclature.
• The HS is a globally recognized system for classifying goods.
• The HS is maintained by the World Customs Organization (WCO).
• The Council for Trade and Economic Development (COTED) is responsible for setting the tariff rates.
• The HS is organized into 21 sections and 99 chapters.
• Chapter 1-76 and 78-97 are numbered using Arabic numerals.
• Chapter 77 is reserved for future use in the HS.
• Chapters 98 and 99 are reserved for special uses by contracting parties.
• The Harmonized System has a six-digit numbering system.
• The first four digits of the code are used by all countries.
• The fifth and sixth digits specify the subheading.
• The seventh and eighth digits are regionally used for CARICOM.
• The ninth and tenth digits are used for national use in Belize, for zero-rated goods.

Tariff Classification – First Schedule

• Customs and Excise Duties Act, Chapter 48, Section 3 (1) governs customs duties.
• Goods imported into or taken out of bond for consumption in Belize are subject to duties at rates set in the First Schedule.
• Exemptions or rebates are subject to the Customs and Excise Duties Act.

Harmonized System Nomenclature

• The Harmonized System Nomenclature is a set of names and terms used in a particular field or science by individuals or communities.
• The HS is accompanied by general rules of interpretation and explanatory notes.
• It comprises approximately 5,000 commodity groups.
• Each group is identified by a six-digit code (legally and logically structured).
• Up to six digits are used in the tariff.
• Two extra digits are assigned for regional use.
• Two more digits for the national level.
• 6 digits at the tariff rate, followed by 2 regional and 2 national levels; for total of 10 digits per entry.

Authorizing Parties for the National Tariff

• The World Customs Organization (WCO) is responsible for the nomenclature and legal notes.
• The Council for Trade and Economic Development (COTED) is responsible for the schedule of rates and lists of conditional duty exemptions.

Harmonized System Categories

• The Harmonized System Nomenclature can be broken down by the state of goods, processed goods, material makeup goods, and function of goods.

Goods Classification

• Goods are classified into Sections, then Chapters, Headings, Sub-Headings in order based on their manufacture stages of processing (e.g., raw, unworked, semi-finished, finished).
• Specific examples of HS codes include coffee beans (09.01), coffee fruit (08.10), and instant coffee (21.01).

National Tariff Abbreviations and Symbols

• The National Tariff includes a list of abbreviations and symbols used in weight, size, and volume measurement.
• Abbreviations for rates of duty in columns are also included.

Legal Notes

• Legal notes are important to sections and chapters in determining tariffs.
• Legal notes also concern live animals; including horses, asses, mules, and hinnies.

Section Notes

• This section specifies live animals and animal products that have undergone limited transformation. Specific examples include fresh, chilled, frozen, brined, salted items.
• Exceptions are included in this section

Chapter Notes

• Live animals and their products, with exceptions from heading 01.05 (live poultry).
• Exclusions included items like fish, crustaceans, mollusks, and other aquatic invertebrates.
• Cultures of micro-organisms are also excluded.
• Certain animals used for similar traveling shows are not included (e.g. circus animals).

List of Items Ineligible for Duty Exemptions

• The list identifies goods that are produced in the Caribbean Community (CARICOM).
• These goods are manufactured sufficiently to warrant tariff protection.
• Agriculture, fisheries, forestry and mining, items can not be eligible for duty exemptions.

Conversion Table

• Conversion tables are for the application of specific duty rates.

Six GIRs

• GIR 1 specifies legal basis, headings and notes over other GIRs.
• GIR 2 extends headings to cover mixtures or incomplete goods.
• GIR 3 helps resolve classification when multiple headings are possible.
• GIR 4 covers unforeseen goods; not specifically covered under other GIRs.
• GIR 5 covers packaging material and containers.
• GIR 6 ensures the same processes are used in all subheadings.

Common External Tariff (CET)

• CARICOM's CET, set by COTED is for setting import duties and using a common external tariff (CET)
• Rates can be specific (based on weight/volume) or ad valorem (a percentage of the value).
• The national tariff of Belize implements this system.
• It's organized by harmonized commodity description and coding.

Types of Tariff

• Specific tariffs are applied to goods based on weight or volume (e.g., liquor by gallon, cigarettes by pound).
• Ad valorem tariffs are based on a percentage of the item's value (e.g., 10% of the item's price).

Free Trade Agreements

• Belize has free trade agreements with various countries (e.g., CARICOM).
• MFN refers to Most Favored Nation agreements.

Additional CARICOM Notes

• Additional notes are included specific to CARICOM.

Chapter, Heading, Subheading & Statistical Classification

• Examples of chapter heading, subheadings, and statistical classification are displayed.
• This aids in understanding how goods are categorized.

List A, C, and D

• List A deals with the suspension of duties, particularly for certain goods (e.g., meat).
• List C specifies minimum duty rates with actual rates per member state.
• List D contains other items with suspended duties.

Goods by Function

• Specific chapters in the HS are noted, that pertain to specific functions.

Conditional Duty Exemptions

• There is a list of goods that may have conditional exemptions from duty.
• These conditional exemptions are based on the purpose of import or criteria determined by authorities.

Conversion Table

• Provides a conversion table for specific duties as needed.