5 Importance Of Tariffs In Trade

Within the economy and global trade, a series of tools and options are used to regulate its control, as well as maintaining the correct conditioning of the development of all those activities and actions that generate benefits for a specific sector of the population, such as a region or country.

One of the most important points for domestic and foreign trade is the import and export of products. These manage to present freedom and flow to the economy, in addition to opening doors to businesses and companies from all over the world, in addition to ensuring and allowing the growth of internal companies .

But for these import and export activities to be fulfilled, they will have to pass a basic requirement. Nothing more and nothing less than tariffs or fees . Next we will tell you about everything related to tariffs. Stay with us and find out the details.

What are tariffs or fees?

In the world of economics and commerce, tariffs are all those taxes that are adapted and assigned to all those products and goods that comply with the import and export activity . But normally, among these 2 activities, import is the one that is most taken into account.

Therefore, it is much more common to see tariff rates between countries for import than for export. On the other hand, we have to emphasize that to carry out this tool as such, a standardized process must be taken into account with which the import and export tax can be effectively applied .

Normally, once this merchandise has arrived, the respective customs officer, the person who will be responsible for inspecting said cargo, will have to carry out the correct allocation of tax to the product, clearly, depending on the established amount adapted to said product.

On the other hand, it is necessary during its correct application to take into account that there are different types of tariffs. The use of these depends on the preference that a country has at the time of filing the tax. Next we will tell you about the 3 most important and used.

What are the types of tariffs?

When being considered as taxes of a country on imports and exports, these can be differentiated depending on the preferences of the nations, their strategies and plans. Therefore, it is important to emphasize what are the different types of tariffs or rates that can be found.

Ad valorem tariff.

It is that tax awarded depending on the respective value of the goods or products . Among its most interesting qualities, a strong security and protection character can be taken into account for all those entrepreneurs and internal merchants in the event that a stage of uneven prices is reached.

This is known as one of the most popular types of tariff taxes around the planet , since it is preferred by a large number of countries when carrying out these procedures during import and export activities.

Specific tariff.

This type of duty is known to be awarded depending on the individual number of units of the product ordered and is imposed with a fixed amount. It is popularly known for its simple allocation of basic or established products and goods. But at the same time it can impose barriers for those countries without treaties.

Compound tariff.

It is the most particular tariff of all. It is considered as the union of the characteristics and qualities of the ad valorem tariff and the specific tariff . Therefore, its application is much more focused and global , it also has different tools when deciding the tax to stipulate depending on the product.

Benefits and importance of tariffs or rates.

Tariffs or tariffs have the purpose and mission of ensuring and protecting the nation’s commerce, its economy and the way in which said activities and actions are managed. All these points depend to a considerable extent on tariff taxes, therefore they are extremely important.

Furthermore, these actions are also a fundamental source of income for the country and in turn, depending on the methods chosen for said tax, this may mean an increase in the volume of development in world trade .

 

by Abdullah Sam
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