Import Tariffs in the Target Markets
U.S. Pecan Growers Council
Tariff Schedules – Current Priority Export Markets
China. Current import tariff, 7%.
— Comment. The import duty had long been set at 24%, but through recent concerted efforts by USPGC staff and leadership working with Chinese government officials and those organizations closely tied to it, China agreed to reduce the tariff by 14%, effective 1 January 2015. In December of 2017, the tariff was reduced again – down to 7 %.
India. Current import tariff, 36%.
— Comment. For the past several years the USPGC has been working through various efforts to try to realize a reduction in the tariff which has proved a major block to trade. These efforts have encompassed diplomatic and substantive initiatives, cooperation with the office of the U.S. Trade Representative (USTR), and appeals to individual members of Congress. A new initiative will be undertaken this year to try to address this overriding issue. India does not produce pecans.
Turkey. Current import tariff, 43%.
— Comment. While high, the tariff thus far has not thus far inhibited imports of U.S. pecans. Imports have recently begun to grow, albeit slowly. The same tariff rate was applied to almonds and walnuts from the United States until recently. In late December, 2107 the tariff on almonds and walnuts has been reduced to 15%. Turkey imports significant amounts of those commodities each year. Turkey has had very limited exposure to pecans and does not grow them. USPGC will continue to pursue a tariff reduction in 2018.
Vietnam. Current import tariff, 30%.
— Comment. Vietnam is the only one of the five markets which does not recognize the pecan as a separate commodity with its own identity and tariff code differentiated from other products, in accordance with the World Customs Organization’s Harmonized System of commodities and tariffs. The lack of recognition of a commodity by a country can have an adverse affect on that commodity, resulting, for example, in assignment of arbitrary tariffs and confusion with other commodities (i.e., walnuts in particular), among other issues. Such is the case in Vietnam, where pecans are not known. The USPGC begin ongoing educational efforts in Vietnam in 2016 and has discussed with the FAS field office in Hanoi and representatives of USTR strategies to work with Vietnamese agencies to achieve eventual recognition of pecans under the Harmonized System. This is a first step that can lead to other major benefits such as tariff relief.
South Korea. Current import tariff, 0%
— Comment. The tariff on U.S. pecans had been 30% as recently as 2012. But under the provisions of the Korea-U.S. Free Trade Agreement, the tariff has been reduced every year since 2012 when the Agreement took effect. The current tariff is not eliminated entirely effective January 2018. South Korea does not grow pecans so there is no domestic industry to consider — an additional advantage accruing from the Free Trade Agreement.