Tariff and Import Duties

Tariff and Import
Duties

INTRODUCTION
Tariff is known as the tax or duty that need to be paid on a
specific class of exports and imports. It is used for the purpose
to restrict trade, because it enhance the price of imported
products, in order to make them more costly for customers.
Further particular tariff charge as a determinate fee which is
based on type of item while ad- valorem tariff is fixed charge
based on the item's value. Tariff is also consider as a amount
that paid by a country for exporting and importing the
products and services. Products and services which are traded
their price get enhanced in case tariff being obligatory on the
products. There are several tool provided in respect to shape
mercantilism policy.

Affect of tariff on economy
Tariff is known as the tax which is charged by government on
products which are imported and exported including
insurance of imported products. There are three different
situation on basis of which government charges tariffs such
as:
 In order to protect inefficient domestic and ageing from
another country competition.
 For protecting fledgling domestic industries from foreign
competition.
 In order to protect from dumping by foreign companies top
domestic producers.