TYPES OF TARIFF

What does an Ad Valorem Tariff mean?

• A combination of different tariffs

• A duty that is not applicable to certain goods

• A percentage of the value of imported goods

• A fixed amount per unit

What is a Specific Tariff?

• A tariff based on the value of goods

• A fixed rate per unit of measure

• A tariff that varies with market conditions

• A combination of ad valorem and specific tariffs

What characterizes a Compound Tariff?

• It is only based on the value of goods

• It is only applicable to raw materials

• It combines ad valorem and specific tariffs

• It is a fixed rate for all imports

In a Mixed Tariff, what is the determining factor for duty?

• The country of origin

• The market demand for the product

• The average cost of production

• The higher of ad valorem or specific tariff

What is the purpose of a Variable Tariff?

• To eliminate competition from foreign goods

• To encourage imports of raw materials

• To impose a high cost on all imports

• To protect domestic industries by matching domestic prices

What is a Prohibitive Tariff designed to do?

• Encourage imports of luxury goods

• Ensure no imports enter the country

• Lower the cost of imported goods

• Facilitate trade with all countries

What does an Anti-Dumping Duty aim to prevent?

• Imports at higher than normal value

• Imports at less than normal value

• Exports of domestic goods

• Trade agreements with other countries

What is the function of Safeguard Duties?

• To promote exports

• To prevent serious injury to domestic industries

• To lower tariffs on all imports

• To increase competition in the market

What are MFN Tariffs?

• Normal non-discriminatory tariffs charged on imports

• Tariffs that are discriminatory

• Tariffs that are higher than average market rates

• Tariffs that are only applicable to certain countries

What is a Preferential Tariff?

• A tariff that is higher than MFN rates

• A tariff that is lower than MFN rates for certain countries

• A tariff that applies only to raw materials

• A fixed tariff for all imports