Tariff Barriers-what is tariff barriers?
Tariff barriers is a trade barrier .It is use impose high tariffs and import duties of import surcharge approach, to limit and prevent the import of foreign goods as a means. Tariff barriers is a trade barrier .
16-17 century, Europe has the use of tariff barriers to prevent the import of foreign manufactured goods. The 19th century, Europe to counter a large number of industrial products enter the United Kingdom, has the use of tariff barriers to protect domestic industry development. 20th century, the use of the developed capitalist countries tariff barriers, in order to ensure that the domestic monopoly capital for excess profits, and is used to force other countries to make concessions on tariff and trade issues; developing countries sometimes use tariff barriers against other countries of dumping cheap goods .
Tariff barriers is an important international trade barriers, because:
1, the lower the average level of tariffs to cover up the high tariffs on certain commodities. Such as the United States, although the average tariff on industrial products is only 3%, but some tariffs on industrial products was as high as 30% --- 40%.
2, the nominal tariff rates mask the lower tariff rate of effective protection. In the final products and intermediate products are the realities of tariffs, the tariff rate and the effective protection of the nominal protection rate of the final product is different. Japan's tariff's effective tax rate was approximately 2 times the nominal tariff rate -2.5 times. The early 1960s, U.S. imports of pig iron in the name of the rate of 2%, the effective tariff protection rate of 9%; clothing nominal tax rate of 25%, the effective protection rate of 36%.
3, the lower the import tax rate masks the normal high import surcharges. When a country imports, in addition to the normal import duty tax rate published, but when needed, also published by the temporary tax levy part of the collar plus import duties. Purposes or in order to meet balance of payments crisis, or foreign countries in order to prevent dumping of goods, or is a national discrimination policy. Such as the August 15, 1971, the United States in order to reduce imports, to resolve its balance of payments crisis, the implementation of the "new economic policy", announced a 10 percent import surcharge, many countries export significantly affected. Later, the U.S. government in other countries strongly opposed, the abolition of this tax.
4, the implementation of international anti-dumping duties, especially the developed countries to restrict imports commonly used means. Anti-dumping is allowed by WTO member states should take to protect their products and markets as a means, but it is being developed by the abuse. After the 1990s, China became the biggest victim of international anti-dumping, involving an amount of tens of billions of dollars, and some of the Chinese anti-dumping duty imposed by more than 100%. 1993-1994, Mexico, China's top ten classes over four thousand kinds of commodities competing so-called anti-dumping duties imposed 16% -1105%.
5, with the development trend of regional groups, to participate in the customs union tariffs become non-member countries of the means of import restrictions on commodities. Participate in the Customs Union countries, such as the European Economic and Monetary Union, internal free trade, foreign tariffs at a uniform rate.
Tariff barriers in the form:
1.Tariff peaks in the overall tariff level is lower in the case of a few products to maintain high tariffs. After eight rounds of GATT negotiations, WTO members, the average tariff level has dropped significantly, but some members are still many areas to maintain a tariff peak. For example, a country agreed in the Uruguay Round negotiations, a significant reduction in tariffs is also in several industrial sectors, including food, textiles, footwear, leather goods, jewelry, artificial jewelry, ceramics, glass, trucks and rail vehicles, etc. retain tariff peaks, tariff which is 30% ceramic, glass and other glassware tariff was 33.2% to 38% for the 5-20 ton truck load tariff is 20%. Another example is Japan, some products still maintained a relatively high tariff levels. These products include agricultural products, sugar, chocolate desserts (10%), cheese and milk products (22.4-40%), sweet biscuits (18-20.4%), jam (12-34%), smoked salmon (15%), raw material (lead oxide, molten aluminum, nickel). Lower overall tariff level in the case of the high tariffs on certain products of other countries unreasonably impede the normal export of related products, constitute barriers to trade.
2, tariff escalation is a way to set the tariff, which is usually for a particular industry to set a lower tariff imports of raw materials, or even zero tax rates, and increase with depth of processing, a corresponding increase in semi-manufactured goods tariff rates. Tariff escalation to more effectively meet the limit semi-finished products with higher added value and the effect of imports of manufactured goods, is a more common barriers to trade. Tariff escalation in developed and developing countries are present. For example, a State to protect the domestic processing industry or manufacturing, the steel of suitable car tariff rate of 5%, but with the same body parts made of steel, the tax rate is 15%, finished the car tax rate is 30%. This tariff escalation, limiting support the export of goods. Another example is the United States imports, low-grade ceramic products, high tariffs, high-grade ceramic products for low tariffs, the Chinese ceramic exports to the U.S. an obstacle. In addition, the United States with a leather upper area of more than 51% of the total area of upper shoes tariff is 8% lower than the upper area with leather uppers, compared with 51% of the total area of 33%. This kind of irrational tariff structure, making China-related products in the U.S. market in a very competitive disadvantage.
3, the tariff quota (TariffQuotas) refers to a certain number (quota) within the lower tax rate applied to imported products, the amount in excess of the quota applicable to imported products is the higher tax rate. In practice, tariff quota administration and payment of a variety of ways, such as the first collar, tender, auction, administrative allocation. Quotas determined, the process of issuing and management of certain improper practices may result in trade barriers. Administrative allocation, the barriers measures may appear in the following areas:
(1) determine the amount of quota. For example, a WTO members under the quota determined by the amount representing less than its last three years, the average export volume, so the quota constitute barriers to trade.
(2) The quota distribution and management. Lack of transparency in the issuance and management of the quota or the notary, will form a barrier to trade. If a country's tariffs on dairy products, lack of transparency in the amount of management, sometimes even longer in the milk quota granted to business enterprises, resulting in quotas shorting.
In addition, by auction, tender, etc. the process of issuing tariff quota, manipulation or other reasons may also result in barriers to imports of the product measures.
4, the amount of tax (SpecificDuty) is based on the weight of goods, quantity, size, length and area, and other taxable unit of measurement as the standard tariff. Weight which is more commonly used unit of measurement, some countries have adopted the gross weight measurement methods, some countries have adopted the weight measurement method, or the use of "gross for net" and other measurement methods.
The amount of tax calculated from the formula: Tax = volume of goods × Tax amount per unit from
Tariff barriers such as the EU's tariff regulations in 1992, 40 per one hundred liters of champagne ECU levy tariffs. China also beer, oil, photographic film and other imported goods from the amount of tax using the tax standards. The amount of customs duties collected from the characteristics of the simplicity, no need for validation of the specification of goods, quality, price, ease of calculation. The unit tax is fixed, the quality time, inexpensive low-end price of imports of goods and impose the same tariffs on luxury goods, imports of goods detrimental to low-grade, so its protection is relatively large. Lower domestic prices, because of tax is fixed, the relative tax burden increased, is not conducive to imports, strengthening protection. To this end, extensive use of some countries from the amount of customs duties, in particular, is widely used in food, beverage and animal, vegetable oil imports. Approximately 33% of U.S. tariff lines from the column is the amount of tariffs applicable; Norway, the amount of customs duty from 28%. As the exports of developing countries are mostly high grade, much higher than the developing countries should bear the tax burden from the amount of customs duties.
5, ad valorem taxes (AdValoremDuty) is the price of imported goods in accordance with the standard tariff levied. The tax rate expressed as a percentage of the price of goods.
