transit duties tariffs-About transit duties tariffs:
The concept of transit duties tariffs - What is the transit tariffs?
Transit tariffs also known as "through the tax." Transit tariff is a country of foreign goods through the customs territory of a tariff levied. Impose transit tariffs are designed to increase revenue. With the development of international trade, especially the improvement of traffic conditions, by agreement in the form of GATT members to cancel the transit tariffs. Accordance with the "GATT 1994" the provisions of Article 5, the members of the party in addition to some of the services of transit cargo collect a management fee, shall be exempt from customs transit.
Characteristics of transit tariffs:
Impose transit tariffs can not only increase their revenue, but also can be transferred to tax goods exporting or importing countries, affecting their ability to compete on the international market. Transit tariffs is characterized by relatively low tax rate, because,
(1) transit tax rate is too high, the prices of goods in transit bound to a big increase, the result is not only seriously damaged the sending and receiving countries economic interests, but also goods in transit will be reduced due to excessive taxation, thereby reducing transit tariff revenue.
(2) transit tariffs collected by the state tax rate is too high or too much, is bound to lead to retaliation from other countries, so that hit the country's export trade, and thus transit from a low tax levy and the people not only convenient, but also to create their own good terms of trade. It is based on these considerations, the General Agreement on Tariffs and Trade clearly between the parties should be excluded from the transit tax.
