CHANGES IN IMPORT DUTIES ON TOBACCO IN 

 FREE WORLD COUNTRIES, 1957-1969 



By Albert B. Davis and lone B. Boblitz 

 Tobacco Division 



SUMMARY OF DUTY CHANGES 



In this study, records of tobacco import duties and preferential arrangements were reviewed for 132 Free 

 World countries or areas, in order to determine what changes had taken place in import duties and preferential 

 arrangements between 1957 and 1969. 



It is interesting to note that 72 countries raised duties on unmanufactured (leaf) tobacco, 76 raised import 

 duties on cigarettes, and 76 raised duties on smoking tobacco or tobacco products. Duties on unmanufactured 

 tobacco were lowered in 20 countries and remained unchanged in 39 countries. 



The South America, Central America, and Caribbean area had a larger proportion of countries raising duties on 

 both leaf tobacco and cigarettes than any other area. 



For both leaf tobacco and cigarettes, increases in duties varied widely among countries. 



Duties on unmanufactured tobacco in the Common Market countries are currently in a transitional stage in 

 their movement towards the fmal uniform common external tariff (CXT). External duties in five out of six of these 

 countries increased between 1957 and January 1968. On July 1, 1968, the EC made a reduction of their external 

 duties toward the rates negotiated in the Kermedy Round of GATT. The balance of the reductions is scheduled for 

 January 1, 1970, January 1, 1971, and January 1, 1972. 



NORTH AMERICA 



North America has more liberal trade policies on tobacco than has any other continent. All three North 

 American countries— the United States, Canada, and Mexico— produce and import tobacco; aU have relatively low 

 import duties on tobacco. 



During the 1957-68 period, Canada made six changes in tobacco import duties; one was an increase in the duty 

 on cigars in 1960; the other five were reductions on dark leaf and light leaf tobacco and also on cigars, cigarettes, 

 and cut tobacco. These reductions resulted from the Kennedy Round negotiations and became effective June 4, 

 1969. 



During the priod 1957-68, the United States lowered duties on nine tobacco items and left five unchanged; it 

 did not raise the duty on a single item. U.S. duties on tobacco from Cuba and the Philippines were, in general, 

 lowered under existing preferential arrangements between 1957 and I960. 



In the Kenndy Round negotiations under GATT, the United States agreed to lower the duties on two leaf 

 items and two tobacco products items. 



