Different Types of Tariffs Essay

2501 WordsSep 14, 201411 Pages
There are different types of tariffs that is governed through commercial & trade policies. These policies are governed through laws implemented by the government; they are required to keep these policies as transparent as possible by notifying the world trade organization about the laws in force & measures adopted. Tariffs are used to restrict trade, as they increase the price of imported goods and services, making them more expensive to consumers. Different tariffs that can be used consists of import & export which is a tax or duty on imports, an ad – valorem tariff is levied based on the item’s value, specific tariff is levied as a fixed fee based on the type of item & compound tariff which is a combination of the ad-valorem & specific tariff. These tariffs will impact the producer & consumer differently because one is able to gain some benefit from the tariff in placed by the government. Tariffs can be justified in certain circumstances as they can protect the domestic market from international markets. Also can add to the fact that it will protect the consumers from foreign products. Import & export tariffs are used by the government to restrict the free trade between countries by placing a fixed amount on number of items that can be imported into the country to compete against the domestic market. Export tariffs are placed by the government on goods that’s are exported out of the country. An export tariff increases the cost of domestic goods that are going to be sold overseas. They are perceived to damage the domestic business. Import tariffs impact the domestic producer by giving them a boost, so they are able to compete against the foreign products, as the producers are able to supply more at a higher price. The Japanese have a tariff of 38.5 per cent on beef imports into the country. In the Australia & Japan free trade deal, Australia will receive large

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