Tariff is a tax imposed on international trade. It used for restrict trade It is Most of them
are collected from imported goods or services called import tariffs, but some also collect
on the good or services when been export call export tariffs, or pass through a country call
transit tariffs. There are 3 forms of import tariffs exist:
Ad valorem tariff- levied tax based on the item’s value (e.g. 10% of the car’s value).
Specific tariff- levied tax based on per unit of weight or others standard measure. (1kg of
sugar been charge 0.6 Sen)
Compound tariff- depends on the value of the goods, and also on the specific dollar
amount per unit of weight. Generally, it is expressed as a combination of an ‘ad valorem’
tariffs and a ‘specific’ tariffs. It also called a mixed tariff.
Tariff can help raise revenue or to protect domestic industries from foreign competition,
since consumers will generally purchase foreign-produced goods when they are cheaper.
While consumers are not legally prohibited from purchasing foreign-produced goods,
tariffs make that goods more expensive, which gives consumers an incentive to buy
domestically produced goods that seem competitively priced or less expensive by
comparison.
Non tariffs are trade barriers that restrict imports but are not in the usual form of a tariff.
There are some non-tariffs barriers like:
Quotas- a limit on the quantity of import good that can be produced abroad and sold