Taking a Look at Customs Valuation

This kind of tax is called a tariff and is enacted to protect domestic producers of the same items that can be imported at much lower costs. Answer the following: (10 points)

The Columbian Exchange transformed the global economy drastically in 1500-1700. Specifically, the trades of silver and slaves were brought into focus on the global scale. New World crops also played an important role in the global economy during this time. Whether these effects were for better or for worse is up for debate, but there is no denial that the world was changed by the Columbian Exchange. During the period between 1500 and 1700, Silver became a focus in trade throughout the world.

C) decrease the prices of U.S. imports, but increase the prices to foreigners of U.S. exports.

- Become familiar with customs offices and legal policies. These rules and regulations can make or break your business. You should also carefully consider the local currency, cultural barriers and any other items that might deter the success of your business. Some goods or services may even face special tax rules or other fees that can greatly impact your profits in the international market.

A tariff is a tax on foreign goods. The price of foreign goods increases with the tax, and provides revenue for the government, which makes American products more appealing. This is because the foreign goods that were cheaper are now more expensive. However, why was there a need for tariffs in the early 19th century (1800)? The reason is because, American industries were young, Britain flooded the US market with cheap goods after the War of 1812, and foreign goods have been often cheaper. In order to make sure American businesses could prosper, there had to be tariffs on the foreign goods. The tariff of 1816 was the first substantial protective tariff of the American System; supported by Henry Clay, but opposed by John C. Calhoun and Southern cotton growers. The tariff of 1824 increased the rate of the protective tariff and opposition in the South grew. In the Tariff of 1828 (Tariff of Abominations), there were higher protective tariffs to New England Mills; and Southerners were outraged including Calhoun.

shipper pays only such U.S. import duties as are applicable to the value added by

I would levy and ad valorem anti-dumping tariff, (Ad Valorem Duty means value added; it refers to a duty, tariff, or tax that is a percentage of the price of the product.). Because

The Cambrian era which can also be known as the Paleozoic era was a result of the period known as “Snowball Earth” that took place over 700 million years ago. The earth had frozen over for more than 200 million years, covering the entire surface with ice a mile long thick in length, killing off all species except for tiny micro organisms, but finally the ice layer on the earth exploded. The layer exploded from the volcanic activity deep beneath the icy surface, but when it finally did explode, it caused an eruption of an enormous amount of carbon dioxide, creating what they call a “green house” effect. Creating the water to become generously oxygenated for life to begin again on earth, but this time, only in the water.

Tariffs exist in many different forms, and have various uses dependent on the economic situation and outlook. They can be specific such as a set tax per item, or ad valoreum, with a percentage tax per unit. (McEachern, 2015, p. 282) This paper will discuss function of each and the positive and negative effects of the use of these various tools.

Therefore, the imposition of tariffs by the governments of any of the engaged countries would affect the company’s price for their product.

There are quite a few forms of tariffs that the government may apply based on the condition of the country’s economic welfare. The pros and cons of these forms of tariffs will be reviewed. Discussion on how these tariffs positively or negatively affects the economic stance of the country will be displayed. Tariffs such as the ad valorem, the taxing a percentage of the value of an item and the specific tariff or tax which is a set amount based on weight or sum of items. (McEachern, 2015)

meant that imported product were subject to import taxes (22%) and it also involved a

Governments intervene in international trade through use of tariffs that are levied on both imports and exports. The government may either impose fixed tariffs that are calculated per unit of the import commodity or the ad valorem tariff that is calculated as a fixed percentage of the monetary value of the imported commodity. The government imposes high import tariffs in order to control the rate of imports by making the imports more expensive in comparison to the domestically produced substitutes. The tariffs increase the prices of goods and services thus reducing the quantity demanded (Misra and Yadav 2009). The use of tariffs is detrimental to international trade since it lowers competition and results in high prices of commodities in the markets. The tariffs discourage imports and domestic producers benefit from the higher prices and reduction in competition. The EU uses variable

Markets and shops across the country are flooded with smuggled goods of any and all descriptions. Smuggled items through the borders of Iran, Afghanistan, China and the Afghan transit trade form a major part of the informal economy volume of which ranges between 50to60 percent of the formal economy, which is depriving the country of its rightful levies including excise and customs duty worth hundreds of billions of Rupees.

COs additionally constitute a declaration by the exporter. Every nation in the world considers the origin of imported goods when figuring out what duty will be overviewd on the merchandise or whether the goods may be legitimately imported at all.