Difference between the AHS and PRF rate

[Prajyna Barua]

Hi,

I am trying to understand that why there is a difference between the AHS tariff rate and PRF tariff rate between countries which already have regional trade agreement within them, since theoretically the effectively applied tariff rate should be equal to the preferential tariff rate. Here, I am looking at 1 digit SITC rev 3 level export data for west african countries namely: Benin, Burkina Faso, Cote d'Ivorie, Mali, Senegal, Niger and Togo.  Below is the example for further clarifying my question. Figures indicate exports by Benin and Burkina Faso (Reporter country) to Cote d'Ivore (Partner Country) and are maximum of Simple average tariff.

	Benin		Burkina Faso
Tariff Year	AHS	PRF	AHS	PRF
1993			5
1995
1996
1997
1998
1999
2000
2001	20		18.28
2002	20		18.14
2003	20		17.69
2004	20		17.75
2005	20		18.02
2006	9.98	1.67	8.25	2.5
2007		1.34	9.31	1.44
2008	9.72	3.27	7.45	2.18
2009	15	3.27	9.31	2.18
2010	9.6	0	8.92	0
2011	9.84	3.27	8.86	2.18
2012	9.38		10.55	2.18
2013			10.55	2.18
2014	8.75	2.53	10.9	2.18

Many thanks in advance

Prajyna

[Samuel Munyaneza]

Dear Prajyna.

AHS is calculated by taking into account  any existing preferential tariff rate (and using the MFN rate when there is no preferential tariff).  As for PRF, the average tariff is calculated based only on those tariff lines/products which have a preferential tariff rate. Therefore PRF gives you the average preferential tariff rate whereas AHS gives you the effectively applied average tariff.

I hope this helps.

Best Regards,

Sam
-----------------------------------------------------------------------
Samuel Munyaneza
TRAINS/WITS database system manager
United Nations Conference on Trade and Development (UNCTAD)
Palais des Nations  E-8059
1211 Geneva 10
Switzerland

Phone: 41/22/917 5540
Fax: 41/22/907 0044
Email:samuel.m...@unctad.org
URL:wits.worldbank.org

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