Tariff is the tax that must be paid to the State through customs for the goods that you want to import or export.
The tariff is a customs duty converted into law to regulate the entry and exit of goods through the borders of a country. The tariffs applied to importation and exportation are different for each product and each State.
The tariffs have two purposes:
- Protective: protects the competitiveness of national goods,
- Collection: it serves as a source of income for the State.
The word tariff comes from the Andalusian Arabic al-Inzál that refers to the tax charged to the military for lodging in the countryside.
Types of tariffs
Four basic types of tariffs can be found:
- Ad valorem law: it is a percentage of the value of the merchandise, for example, 5% of the value.
- Specific right: the weight or volume is considered, for example, 5 dollars per kilo.
- Compound or mixed law: it is a mixture of the two previous tariffs and sets a minimum or maximum, for example, 5% for a minimum of 5 dollars per kilo.
- Zero tariff: this applies in cases where there is an agreement to reduce or eliminate tariffs for the movement of goods between two or more countries, such as free trade agreements (FTA).
