Various Trade Measures Affecting Exporters and Importers

1068 Words Feb 18th, 2018 4 Pages
The most common type of trade restriction or intervention measure is the tariff. There are 3 types of tariffs ad valorem, specific and compound tariffs. However, there is the other most important form of trade restriction or intervention non-tariffs such as quotas, embargoes and sanctions, voluntary export restraints, buy local legislation, export subsidies, anti-dumping and countervailing duties safety measures and administrative and technical regulations.
Tariff is a scheduled of duties which state imposes on goods imported or exported. Duty in this case refers to the quantity of money payable to the resident customs experts when a delivery of goods enters or leaves a country.
The duty applicable in the case of tariffs (and thus the actual revenue accruing) can be worked out of three ways.
 An ad volorem (meaning ‘in amount to the value’) rate of duty is a fixed percentage of the customs value of a traded item.
 Specific rate of duty is a fixed monetary amount per unit of the traded item.
 Compound rate of duty involves both an ad valorem and a specific rate of duty being applied to the same product.
Government impose tariffs for the following reasons:
 Protection of local industry: import tariffs have the outcome of raising the value of imported products comparative to similar goods produced in the local market. This places foreign producers at a competitive disadvantage when selling in the resident…