Common use of Reduction or Elimination of Customs Duties Clause in Contracts

Reduction or Elimination of Customs Duties. 1. Except as otherwise provided in this Agreement, including as explicitly set out in each Parties’ Schedule included in Annex 2A (Schedule of Tariff Commitments of Mauritius) or 2B (Schedule of Tariff Commitments of the UAE), neither Party shall increase any existing customs duty, or adopt any new customs duty, on an originating good of the other Party. 2. Upon the entry into force of this Agreement, Mauritius shall eliminate or reduce its customs duties applied on goods originating from the UAE in accordance with Annex 2A (Schedule of Tariff Commitments of Mauritius) and the UAE shall eliminate or reduce its customs duties on goods originating from Mauritius in accordance with Annex 2B (Schedule of Tariff Commitments of the UAE). 3. Where a Party reduces its most-favored-nation (hereinafter “MFN”) applied rate of customs duty, that duty rate shall apply to an originating good of the other Party if, and for as long as, it is lower than the customs duty rate on the same good calculated in accordance with Annex 2A (Schedule of Tariff Commitments of Mauritius) in the case of Mauritius or Annex 2B (Schedule of Tariff Commitments of the UAE) in the case of the UAE.