TARIFF MEASURES AND OTHER BARRIERS TO IMPORTS
Tariff measures are legal barriers intended to prevent or deter the entry of certain goods and / or services to a country, given through the establishment of import duties. The higher the amount of the duties of a commodity, the more difficult and compete against entering local production in another country because that tariff affect prices of imported products; raising them.
FEATURES OF TARIFF MEASURES
Having defined the concept of tariff measures identify its characteristics are as follows:
-Tariff measures aim to increase tax revenue or protect a domestic industry from foreign competition.
-Tariff measures applied at the time the goods cross the border of a customs territory.
-Tariff measures increase the costs of imports by a percentage or fixed amount, calculated respectively on the basis of the value of the product or service.
-According to our legislation tariff measures are to establish safeguards for balance of payments imports of certain products.
TYPES OF TARIFF MEASURES
Initially, there are only two types of import tariffs, the ad-valorem and specific, but other combinations of them emerge:
– Tariff value added or ad-valorem is calculated on a percentage of product value. For example, 5% tariff means the import duty is 5% of the value of the goods in question.
-Specific tariff measures: are based on other criteria such as weight; for example USD 5 for each kilo of new clothes. It is a payment set by each unit of measure of the imported good.
-Anti-dumping tariff measures: is a tariff that applies to imports of products subsidized by the countries where they occur. These grants allow them to export below the production cost.
-Mixed tariff measures: a tariff is composed of an ad-valorem and specific tariff taxed import simultaneously.
OTHER BARRIERS TO IMPORS
In addition to tariff measures, import may be taxed by non-tariff barriers are non-tariff measures have a protectionist impact. An example of this are the quotas, tariff quotas, regimes that require licenses or price bands.
For example, there are countries that determine a tariff of income. This is a series of designated tariffs essentially to raise funds for government. For example, a tariff for imports of coffee, in a country that does not produce coffee, collects a stable government amount.