tariffsduties

Tariffs and duties, collectively referred to as tariffsduties, are taxes imposed by a government on goods crossing its borders. A tariff is typically charged on imports and is usually calculated as a percentage of the value of the goods (ad valorem) or as a specific amount per unit. Duties may also apply to exports in some jurisdictions or to special categories such as excise duties, but in common usage tariffsduties focuses on border taxes that affect trade flows. Tariff schedules classify goods—often under the Harmonized Commodity Description and Coding System (HS)—and specify rates by product.

Tariffs serve multiple aims. They raise government revenue, protect domestic industries by raising the price of imported goods, and influence consumer choices and investment decisions. They can be used unilaterally or as part of negotiated trade agreements, regional blocs, or retaliatory actions.

International trade is governed by rules and institutions that regulate tariff levels and transparency. The World Trade Organization (WTO) oversees commitments to bound tariffs, publishes tariff schedules, and prohibits certain practices. Members may grant preferential tariffs under free-trade agreements, or apply MFN rates to most partners. Tariff-rate quotas allow higher import volumes at reduced rates before a higher tariff applies. Customs authorities collect tariffs at border crossings; exemptions exist for certain goods such as humanitarian aid, and for certain industries or purposes.

Economic effects of tariffsduties are debated. Tariffs can protect domestic producers and reduce unemployment in targeted sectors but may raise consumer prices, invite retaliation, disrupt supply chains, and reduce overall welfare in open economies. History shows a long arc of tariff liberalization alongside protectionist episodes.