16Calculation of duty

#### 16 Calculation of duty (1) Subject to sections 17, 18, 18A, 18B, 20 and 22, the duty in respect of goods must be worked out as follows: (a) if the goods: (i) are not the produce or manufacture of a Preference Country; and (ia) are not Singaporean originating goods; and (ii) are not US originating goods; and (iii) are not Thai originating goods; and (iv) are not New Zealand originating goods; and (iva) are not Peruvian originating goods; and (v) are not Chilean originating goods; and (vi) are not AANZ originating goods; and (via) are not Pacific Islands originating goods; and (vib) are not Trans‑Pacific Partnership originating goods; and (vii) are not Malaysian originating goods; and (viia) are not Indonesian originating goods; and (viii) are not Korean originating goods; and (viiia) are not Indian originating goods; and (ix) are not Japanese originating goods; and (x) are not Chinese originating goods; and (xi) are not Hong Kong originating goods; and (xii) are not RCEP originating goods; and (xiii) are not UK originating goods; and (xiv) are not UAE originating goods; by reference to the general rate set out in the third column of the tariff classification under which the goods are classified; (b) if the goods are New Zealand originating goods: (i) if a rate of duty that applies in relation to New Zealand is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or (ii) otherwise—Free; (c) if the goods are the produce or manufacture of Papua New Guinea: (i) if a rate of duty that applies in relation to Papua New Guinea is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or (ii) otherwise—Free; (d) if the goods are the produce or manufacture of Canada: (i) if a rate of duty that applies in relation to Canada is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or (ii) otherwise—by reference to the general rate of duty set out in the third column of that tariff classification; (e) if the goods are the produce or manufacture of a Forum Island Country: (i) if a rate of duty that applies in relation to Forum Island Countries is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or (ii) otherwise—Free; (f) if the goods are the produce or manufacture of a Developing Country or place specified in Part 5 of Schedule 1 to the regulations: (i) subject to subparagraphs (ii) and (iii)—by reference to the general rate of duty set out in the third column of the tariff classification under which the goods are classified; or (ii) subject to subparagraph (iii), if a rate of duty that applies in relation to Developing Countries specified in Part 4 of Schedule 1 to the regulations is set out in the third column of that tariff classification—by reference to that rate of duty; or (iii) if a rate of duty that applies in relation to a Developing Country or place specified in Part 5 of Schedule 1 to the regulations is set out in the third column of that tariff classification—by reference to that rate of duty; (g) if the goods are the produce or manufacture of a Developing Country specified in Part 4 of Schedule 1 to the regulations (other than Hong Kong, Republic of Korea, Singapore or Taiwan Province): (i) if a rate of duty that applies in relation to those Developing Countries is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or (ii) otherwise—by reference to the general rate of duty set out in the third column of that tariff classification; (h) if the goods are the produce or manufacture of a Developing Country specified in Part 3 of Schedule 1 to the regulations: (i) if a rate of duty that applies in relation to those Developing Countries is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or (ii) otherwise—Free; (i) if, under section 153H or 153NA of the Customs Act 1901, the goods are the produce or manufacture of a Least Developed Country: (i) if a rate of duty that applies in relation to Least Developed Countries is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or (ii) otherwise—Free; (ja) if the goods are Singaporean originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 4A—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (k) if the goods are US originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 5—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (l) if the goods are Thai originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 6—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (la) if the goods are Peruvian originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 6A—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; Note: See also subsections (2AA) and (2AB). (m) if the goods are Chilean originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 7—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (n) if the goods are AANZ originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 8—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (na) if the goods are Pacific Islands originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 8A—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (nb) if the goods are Trans‑Pacific Partnership originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 8B—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; Note: See also subsections (4AA) to (4ABB). (o) if the goods are Malaysian originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 9—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (oa) if the goods are Indonesian originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 9A—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (p) if the goods are Korean originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 10—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (pa) if the goods are Indian originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 10A—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; Note: See also subsections (4AC) and (4AD). (q) if the goods are Japanese originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 11—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (r) if the goods are Chinese originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 12—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (s) if the goods are Hong Kong originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 13—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; (t) if the goods are RCEP originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 14—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; Note: See also subsections (4A) and (4B). (u) subject to section 16A, if the goods are UK originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 15—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free; Note: See also subsection (4C). (v) if the goods are UAE originating goods: (i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 16—by reference to the rate of duty set out in column 3 of that item; or (ii) otherwise—Free. Note: See also subsection (4D). Peruvian originating goods (2AA) For the purposes of Schedule 6A: (a) a reference in that Schedule to year 2 is a reference to the first calendar year beginning after the commencement of this subsection; and (b) a reference in that Schedule to year 3 is a reference to the second calendar year beginning after the commencement of this subsection; and (c) a reference in that Schedule to year 4 is a reference to the third calendar year beginning after the commencement of this subsection. (2AB) If column 2 of an item in the table in Schedule 6A includes “(prescribed goods only)”, subparagraph (1)(la)(i) does not apply to the goods unless the goods are also prescribed for the purposes of that item. > Note: If column 2 of an item in the table in Schedule 6A includes “(prescribed goods only)” and the goods are not prescribed for the purposes of that item, the rate of duty in respect of the goods is Free. Trans‑Pacific Partnership originating goods (4AA) For the purposes of Schedule 8B: (a) a reference in that Schedule to year 2 is a reference to the first calendar year beginning after the commencement of this subsection; and (b) a reference in that Schedule to year 3 is a reference to the second calendar year beginning after the commencement of this subsection; and (c) a reference in that Schedule to year 4 is a reference to the third calendar year beginning after the commencement of this subsection; and (d) a reference in that Schedule to year 6 is a reference to the fifth calendar year beginning after the commencement of this subsection; and (e) a reference in that Schedule to year 7 is a reference to the sixth calendar year beginning after the commencement of this subsection; and (f) a reference in that Schedule to year 8 is a reference to the seventh calendar year beginning after the commencement of this subsection; and (g) a reference in that Schedule to year 9 is a reference to the eighth calendar year beginning after the commencement of this subsection; and (h) a reference in that Schedule to year 10 is a reference to the ninth calendar year beginning after the commencement of this subsection; and (i) a reference in that Schedule to year 11 is a reference to the tenth calendar year beginning after the commencement of this subsection; and (j) a reference in that Schedule to year 12 is a reference to the 11th calendar year beginning after the commencement of this subsection; and (k) a reference in that Schedule to year 13 is a reference to the 12th calendar year beginning after the commencement of this subsection; and (l) a reference in that Schedule to year 14 is a reference to the 13th calendar year beginning after the commencement of this subsection; and (m) a reference in that Schedule to year 15 is a reference to the 14th calendar year beginning after the commencement of this subsection; and (n) a reference in that Schedule to year 16 is a reference to the 15th calendar year beginning after the commencement of this subsection. (4AB) If column 2 of an item in the table in Schedule 8B includes “(prescribed goods only)”, subparagraph (1)(nb)(i) does not apply to the goods unless the goods are also prescribed for the purposes of that item. > Note: If column 2 of an item in the table in Schedule 8B includes “(prescribed goods only)” and the goods are not prescribed for the purposes of that item, the rate of duty in respect of the goods is Free. (4ABA) Subject to section 16B, for the purposes of Schedule 8B, if: (a) the goods are Trans‑Pacific Partnership originating goods; and (b) the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of any of items 1A to 1E, 396A to 396J, 397 to 408, 410 to 419, 421 to 423, 424A to 424L, 425 to 432ZC, 446 or 448 to 451 in the table in Schedule 8B; then: (c) subparagraph (1)(nb)(i) does not apply to the goods unless the last production process, other than minimal operations, occurred in the United Kingdom; and (d) if that subparagraph does apply—the rate of duty in relation to the goods is the rate set out in column 3 of the item concerned in relation to the United Kingdom. (4ABB) For the purposes of paragraph (4ABA)(c), the following are minimal operations: (a) operations to preserve goods in good condition for the purposes of transport or storage; (b) packaging, re‑packaging, breaking up of consignments or putting up goods for retail sale, including placing goods in bottles, cans, flasks, bags, cases or boxes; (c) mere dilution with water or another substance that does not materially alter the characteristics of goods; (d) collection of goods intended to form sets, assortments, kits or composite goods; (e) any combination of operations covered by paragraphs (a) to (d). Indian originating goods (4AC) For the purposes of Schedule 10A: (a) a reference in that Schedule to year 2 is a reference to the first calendar year beginning after the commencement of this subsection; and (b) a reference in that Schedule to year 3 is a reference to the second calendar year beginning after the commencement of this subsection; and (c) a reference in that Schedule to year 4 is a reference to the third calendar year beginning after the commencement of this subsection; and (d) a reference in that Schedule to year 5 is a reference to the fourth calendar year beginning after the commencement of this subsection. (4AD) If column 2 of an item in the table in Schedule 10A includes “(prescribed goods only)”, subparagraph (1)(pa)(i) does not apply to the goods unless the goods are also prescribed for the purposes of that item. > Note: If column 2 of an item in the table in Schedule 10A includes “(prescribed goods only)” and the goods are not prescribed for the purposes of that item, the rate of duty in respect of the goods is Free. Regional Comprehensive Economic Partnership (RCEP) originating goods (4A) For the purposes of Schedule 14: (a) a reference in that Schedule to year 2 is a reference to the first calendar year beginning after the commencement of this subsection; and (b) a reference in that Schedule to year 3 is a reference to the second calendar year beginning after the commencement of this subsection; and (c) a reference in that Schedule to year 4 is a reference to the third calendar year beginning after the commencement of this subsection; and (d) a reference in that Schedule to year 5 is a reference to the fourth calendar year beginning after the commencement of this subsection; and (e) a reference in that Schedule to year 7 is a reference to the sixth calendar year beginning after the commencement of this subsection; and (f) a reference in that Schedule to year 10 is a reference to the ninth calendar year beginning after the commencement of this subsection; and (g) a reference in that Schedule to year 11 is a reference to the tenth calendar year beginning after the commencement of this subsection; and (h) a reference in that Schedule to year 13 is a reference to the 12th calendar year beginning after the commencement of this subsection; and (i) a reference in that Schedule to year 15 is a reference to the 14th calendar year beginning after the commencement of this subsection; and (j) a reference in that Schedule to year 16 is a reference to the 15th calendar year beginning after the commencement of this subsection; and (k) a reference in that Schedule to year 17 is a reference to the 16th calendar year beginning after the commencement of this subsection; and (l) a reference in that Schedule to year 18 is a reference to the 17th calendar year beginning after the commencement of this subsection; and (m) a reference in that Schedule to year 19 is a reference to the 18th calendar year beginning after the commencement of this subsection; and (n) a reference in that Schedule to year 20 is a reference to the 19th calendar year beginning after the commencement of this subsection. (4B) If column 2 of an item in the table in Schedule 14 includes “(prescribed goods only)”, subparagraph (1)(t)(i) does not apply to the goods unless the goods are also prescribed for the purposes of that item. UK originating goods (4C) For the purposes of Schedule 15: (a) a reference in that Schedule to year 2 is a reference to the first calendar year beginning after the commencement of this subsection; and (b) a reference in that Schedule to year 3 is a reference to the second calendar year beginning after the commencement of this subsection; and (c) a reference in that Schedule to year 4 is a reference to the third calendar year beginning after the commencement of this subsection; and (d) a reference in that Schedule to year 5 is a reference to the fourth calendar year beginning after the commencement of this subsection; and (e) a reference in that Schedule to year 6 is a reference to the fifth calendar year beginning after the commencement of this subsection. UAE originating goods (4D) For the purposes of Schedule 16: (a) a reference in that Schedule to year 2 is a reference to the first calendar year beginning after the commencement of this subsection; and (b) a reference in that Schedule to year 3 is a reference to the second calendar year beginning after the commencement of this subsection; and (c) a reference in that Schedule to year 4 is a reference to the third calendar year beginning after the commencement of this subsection; and (d) a reference in that Schedule to year 5 is a reference to the fourth calendar year beginning after the commencement of this subsection. Least rate of duty (5) If, apart from this subsection, more than one paragraph of subsection (1) would apply in relation to the goods, then the paragraph that does apply in relation to the goods is the paragraph in respect of which the least amount of duty would be payable in respect of the goods.