CLASSIFICATION OF TARIFFS - On The Basis Of Trade Relations

[abhishreshthaa]

CLASSIFICATION OF TARIFFS


D. On The Basis Of Trade Relations Between The Importing Country And Exporting Country:


Here, tariffs are classified into following 3 categories:


1) Single Column Tariff: Under this system, the tariff rates are fixed for various commodities and the same rates are charged for imports from all countries. In brief, rates are uniform for all countries and discrimination between countries sending goods is not made.


2) Double Column Tariff: Under this double column tariff , two rates of duty on all or some commodities are fixed. The lower rate is made applicable to a friendly country or the country with which bilateral trade agreement is entered into. The higher rate is made applicable to all other countries that is, countries with which such bilateral trade agreements are not made.



3) Triple Column Tariff: Under this triple column tariff 3 rates are fixed. They are:
- General rate,

- International rate,

- Preferential rate.


The first two rates are similar to lower and higher rates while the preferential rate is substantially lower than the general rate and is applicable to friendly countries with trade agreement or with close trade relation.

 

[Business-education]

The Importance of Tariff Classification

For Government

1) Uniform identification of imported and exported goods

2) Enforcement of national laws and international treaties

3) International trade negotiations

 

[bhautik.kawa]

CLASSIFICATION OF TARIFFS


D. On The Basis Of Trade Relations Between The Importing Country And Exporting Country:


Here, tariffs are classified into following 3 categories:


1) Single Column Tariff: Under this system, the tariff rates are fixed for various commodities and the same rates are charged for imports from all countries. In brief, rates are uniform for all countries and discrimination between countries sending goods is not made.


2) Double Column Tariff: Under this double column tariff , two rates of duty on all or some commodities are fixed. The lower rate is made applicable to a friendly country or the country with which bilateral trade agreement is entered into. The higher rate is made applicable to all other countries that is, countries with which such bilateral trade agreements are not made.



3) Triple Column Tariff: Under this triple column tariff 3 rates are fixed. They are:
- General rate,

- International rate,

- Preferential rate.


The first two rates are similar to lower and higher rates while the preferential rate is substantially lower than the general rate and is applicable to friendly countries with trade agreement or with close trade relation.

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