This raises two interesting characteristics of international law.
A tariff, or duty, is a tax levied on products when they cross the boundary of a customs area. The boundary may be that of a nation or a group of nations that has agreed to impose a common tax on goods entering its… Objectives of tariffs Tariffs may be levied either to raise revenue or to protect domestic industries, but a tariff designed primarily to raise revenue also may exercise a strong protective influence, while a tariff levied primarily for protection may yield revenue.
Gottfried von Haberler in The Theory of International Trade suggested that the best way to distinguish between revenue duties and protective duties disregarding the motives of the legislators is to compare their effects on domestic versus foreign producers.
If domestically produced goods bear the same taxation as similar imported goods, or if the foreign goods subject to duty are not produced domestically, and if there are no domestically produced substitutes toward which demand is diverted because of the tariff, then the duty is not protective.
A purely protective duty tends to shift production away from the export industries and into the protected domestic industries or other industries producing substitutes for which demand is increased.
On the other hand, a purely revenue duty will not cause resources to be invested in industries producing the taxed goods or close substitutes for such goods, but it will divert resources toward the production of those goods and services upon which the additional government receipts are spent.
From the standpoint of revenue alone, a country can levy an equivalent tax on domestic production to avoid protecting it or select a relatively small number of imported articles of general consumption and subject them to low duties so that there will be no tendency to shift resources into industries producing such taxed goods or substitutes for them.
If, on the other hand, a country wishes to protect its home industries, its list of protected commodities will be long and the tariff rates high. Political goals often motivate the imposition or removal of tariffs. Tariffs may be further classified into three groups—transit duties, export duties, and import duties.
Transit duties This type of duty is levied on commodities that originate in one country, cross another, and are consigned to a third. As the name implies, transit duties are levied by the country through which the goods pass. Such duties are no longer important instruments of commercial policy, but, during the mercantilist period 16th—18th century and even up to the middle of the 19th century in some countries, they played a role in directing trade and controlling certain of its routes.
The most direct and immediate effect of transit duties is a reduction in the amount of commodities traded internationally and an increase in the cost of those products to the importing country. Export duties Export duties are no longer used to a great extent, except to tax certain mineral, petroleum, and agricultural products.
Several resource-rich countries depend upon export duties for much of their revenue. Export duties were common in the past, however, and were significant elements of mercantilist trade policies. Their main function was to safeguard domestic supplies rather than to raise revenue.
Export duties were first introduced in England by a statute in that imposed them on hides and wool. By the middle of the 17th century, the list of commodities subject to export duties had increased to include more than articles.
With the growth of free trade in the 19th century, export duties became less appealing; they were abolished in Englandin Franceand in Prussia At the beginning of the 20th century, only a few countries levied export duties.
For example, Spain still levied them on cokeBolivia and Malaysia on tinItaly on objects of art, and Romania on forest products.Introduction; Key Factors in Products Selection; Introduction.
A key factor in any export business is clear understanding and detail knowledge of products to be exported. Non-tariff barriers: red tape, etc A number of agreements deal with various bureaucratic or legal issues that could involve hindrances to trade.
import licensing. A nontariff barrier is a way to restrict trade using trade barriers in a form other than a tariff. Nontariff barriers include quotas, embargoes, sanctions, levies and other restrictions.
A customs duty or due is the indirect tax levied on the import or export of goods in international trade. In economic sense, a duty is also a kind of consumption tax.A duty levied on goods being imported is referred to as an import torosgazete.comrly, a duty levied on exports is called an export duty.A tariff, which is actually a list of commodities along with the leviable rate (amount) of customs.
#PACDBIA. Under Secretary of Commerce for International Trade Gilbert Kaplan is hosting a fact-finding mission with members of the President’s Advisory Council .
Use WITS to obtain merchandise trade (exports, imports), tariff and non-tariff (NTM) data, perform tariff cut simulation and analyze trade competitiveness of countries.