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News
Govt hikes import duty on gold jewellery
to 15% - Tuesday, September 18, 2013
http://articles.economictimes.indiatimes.com
Govt hikes tariff value on imported gold,
cuts on silver - Friday, October 4, 2013
http://www.financialexpress.com/news
Page 2
TARIFFS
Introduction :-
1) One of the most important tools of foreign
economic policy is the Tariff.
2) It is the best known and most widely used
form of commercial policy instrument
Meaning:-
A Tariff is a tax or duty levied on goods
when they enter and leave the national
frontier of boundary.
Page 3
Classification of Tariffs
(A) On the Basis of Purpose
1. Revenue Tariffs are meant to provide the state with
revenue. Levied on luxury consumer goods.
2. Protective Tariffs are meant to maintain and
encourage those branches of home industry
3. Countervailing and Anti-Dumping Duties
Countervailing duties may be imposed on certain
imports when they have been subsidized by foreign
governments. Anti-dumping duties, are applied to
imports which are being dumped on the domestic
market at a price either below their cost of production
or substantially lower than their domestic prices
Page 4
(B)On the basis of Application between Countries.
1) Single-Column Tariff, also known as uni-linear tariff
system, provides a uniform rate of duty for all like
commodities without any discrimination between
countries.
2) Double-Column Tariff, two rates of duty on some or all
commodities. Tariff discriminates between countries. The
DCT system may be broadly divided into (a)general and
conventional tariffs, and (b) maximum and minimum tariff.
3) Triple-Column Tariff system consists of three
automatically determined tariff schedules the general, the
intermediate and the preferential. The general and
intermediate rates are similar to the maximum and
minimum rates under DCT system. The preferential rate
was generally applied in the case of trade between the
mother country and its colonies.
Page 5
(c)Classification on the Basis for Quantification
of the Tariffs.
1) Specific Duty is a flat sum per physical unit of
the commodity imported or exported. A fixed
amount of duty levied upon each unit of the
commodity.
2) Ad-Valorem Duties are levied as a fixed % of
the value of the commodity imported/exported.
3) Compound Duties are the combination of the
ad-valorem and specific duties.
4) Sliding-Scale Duty, sometimes governments
levy import duties which vary with the prices of
commodities imported. It may be either ad-
valorem or specific.(Normally Specific)

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Tariffs

  • 1. Page 1 News Govt hikes import duty on gold jewellery to 15% - Tuesday, September 18, 2013 http://articles.economictimes.indiatimes.com Govt hikes tariff value on imported gold, cuts on silver - Friday, October 4, 2013 http://www.financialexpress.com/news
  • 2. Page 2 TARIFFS Introduction :- 1) One of the most important tools of foreign economic policy is the Tariff. 2) It is the best known and most widely used form of commercial policy instrument Meaning:- A Tariff is a tax or duty levied on goods when they enter and leave the national frontier of boundary.
  • 3. Page 3 Classification of Tariffs (A) On the Basis of Purpose 1. Revenue Tariffs are meant to provide the state with revenue. Levied on luxury consumer goods. 2. Protective Tariffs are meant to maintain and encourage those branches of home industry 3. Countervailing and Anti-Dumping Duties Countervailing duties may be imposed on certain imports when they have been subsidized by foreign governments. Anti-dumping duties, are applied to imports which are being dumped on the domestic market at a price either below their cost of production or substantially lower than their domestic prices
  • 4. Page 4 (B)On the basis of Application between Countries. 1) Single-Column Tariff, also known as uni-linear tariff system, provides a uniform rate of duty for all like commodities without any discrimination between countries. 2) Double-Column Tariff, two rates of duty on some or all commodities. Tariff discriminates between countries. The DCT system may be broadly divided into (a)general and conventional tariffs, and (b) maximum and minimum tariff. 3) Triple-Column Tariff system consists of three automatically determined tariff schedules the general, the intermediate and the preferential. The general and intermediate rates are similar to the maximum and minimum rates under DCT system. The preferential rate was generally applied in the case of trade between the mother country and its colonies.
  • 5. Page 5 (c)Classification on the Basis for Quantification of the Tariffs. 1) Specific Duty is a flat sum per physical unit of the commodity imported or exported. A fixed amount of duty levied upon each unit of the commodity. 2) Ad-Valorem Duties are levied as a fixed % of the value of the commodity imported/exported. 3) Compound Duties are the combination of the ad-valorem and specific duties. 4) Sliding-Scale Duty, sometimes governments levy import duties which vary with the prices of commodities imported. It may be either ad- valorem or specific.(Normally Specific)