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Tariff and Import Duties
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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.
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Affect of tariff and import duty on industries Tariff are important taxes and duties which is placed on an imported goods by the government. It lead to make domestic good cheaper fro its domestic consumers and products which are imported more expensive for an organisations which are exporting goods from their industry into the domestic industry. If government charger high tariff then it lead to increase the price of goods for the domestic consumers.
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Cost and Benefit of a tariff and custom duty.... There are some benefits and cost of a tariff. Tariff lead to enhance the cost of imports, which lead to decrease consumer surplus. For instances, UK consumer are out from European union broad tariff on agriculture products. For protecting European union farmer high tariff is placed due to which there are different agricultural products became more costly.
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