abhishreshthaa
Abhijeet S
CLASSIFICATION OF TARIFFS:
A. On The Basis Of Origin And Destination Of The Goods Crossing The National Boundary: Here, tariffs imposed are classified into the following categories:
1. Export Duties: An export duty is a tax imposed on a commodity originating from the duty levying country designed for use in some other country. Such duties are normally levied for revenue. They are used extensively in countries which are exporting primary products.
Export duties can be used to protect domestic producers. A duty may be impose on the export of raw materials in order to make them costly to foreign manufacturer than domestic manufacturers.
Such duties are also imposed in order to conserve exhaustible natural resources for domestic industries. Some countries even levy export duties in order to collect fund for meeting the expenses of export promotion activities.
2. Import Duties: An import duty is tax imposed on a commodity originated in foreign country and design by the duty –levying country. The purpose is to collect revenue for the public treasury and also to provide protection to domestic industries by discouraging large scale imports.
In some countries, imports duties are used to restrict imports with a view to correcting disequilibrium in the balance of trade and balance of payments.
3. Transit Duties: Transit duties are tax imposed on commodity while crossing the national frontier originating from and designed for other countries.
Countries with favourable geographical position are in a position to collect substantial revenue by imposing transit duties on the merchandise passing through their territories in importing country or is borne either by the consumers in the importing country or by the manufacturer in the exporting country depending upon the demand and supply position in the two countries.
A. On The Basis Of Origin And Destination Of The Goods Crossing The National Boundary: Here, tariffs imposed are classified into the following categories:
1. Export Duties: An export duty is a tax imposed on a commodity originating from the duty levying country designed for use in some other country. Such duties are normally levied for revenue. They are used extensively in countries which are exporting primary products.
Export duties can be used to protect domestic producers. A duty may be impose on the export of raw materials in order to make them costly to foreign manufacturer than domestic manufacturers.
Such duties are also imposed in order to conserve exhaustible natural resources for domestic industries. Some countries even levy export duties in order to collect fund for meeting the expenses of export promotion activities.
2. Import Duties: An import duty is tax imposed on a commodity originated in foreign country and design by the duty –levying country. The purpose is to collect revenue for the public treasury and also to provide protection to domestic industries by discouraging large scale imports.
In some countries, imports duties are used to restrict imports with a view to correcting disequilibrium in the balance of trade and balance of payments.
3. Transit Duties: Transit duties are tax imposed on commodity while crossing the national frontier originating from and designed for other countries.
Countries with favourable geographical position are in a position to collect substantial revenue by imposing transit duties on the merchandise passing through their territories in importing country or is borne either by the consumers in the importing country or by the manufacturer in the exporting country depending upon the demand and supply position in the two countries.