What are the four types of tariffs?

What are the four types of tariffs?

There are four types of tariffs – Ad valorem, Specific, Compound, and Tariff-rate quota.

What tariffs does South Africa have?

Ad valorem excise duties are levied on a range of “up market” consumer goods. The statutory rate is currently 10 percent (except for most office machinery, as well as motorcycles, that attract duty of 5 percent).

What are the 2 different types of tariffs and what do they do?

There are two basic types of tariffs imposed by governments on imported goods. First is the ad valorem tax which is a percentage of the value of the item. The second is a specific tariff which is a tax levied based on a set fee per number of items or by weight.

What are types of tariffs?

There are several types of tariffs and barriers that a government can employ:

• Specific tariffs.
• Ad valorem tariffs.
• Licenses.
• Import quotas.
• Voluntary export restraints.
• Local content requirements.

What are the main types of tariff?

Tariffs may be further classified into three groups—transit duties, export duties, and import duties.

How is customs calculated in South Africa?

Customs duties are imposed by the Customs and Excise Act 91 of 1964. They are levied on imported goods with the aim of raising revenue and protecting the local market. They are usually calculated as a percentage of the value of the goods (set in the schedules to the Customs and Excise Act).

What are import and export tariffs?

There are two types of tariffs, an import tariff and an export tariff. As you can tell by their names, an import tariff is put on goods being imported into the country from abroad. An export tariff is put on goods being sent abroad. The import tariff is usually higher to protect domestic businesses.

What are some examples of tariffs?

A “unit” or specific tariff is a tax levied as a fixed charge for each unit of a good that is imported – for instance $300 per ton of imported steel. An “ad valorem” tariff is levied as a proportion of the value of imported goods. An example is a 20 percent tariff on imported automobiles.

What are the different types of tariffs explain?

What are the different types of tariffs?

The 3 types of tariffs may exist for the same commodity line. In general, the bound rate is the highest tariff, the preferential the lowest one, and the MFN applied is generally somewhere in between the other two as illustrated below.

What is an import tariff and how does it work?

Updated November 2, 2020. What’s it: Import tariff is a tax imposed on the price of imported goods. The government usually charges tariffs as a percentage of the price of imported goods. Alternatively, the tariff is levied as a fixed cost for each unit of goods imported, for example, $500 per tonne of imported steel.

Is South Africa’s tariff schedule too complex?

Because of the Uruguay Round in 1994, South Africa reformed and simplified its tariff structure. Tariff rates have been reduced from a simple average of more than 20% to an average of 5.8%. Notwithstanding these reforms, importers have complained that the tariff schedule remains unduly complex, with nearly forty different rates.

What is included in the tariff book?

The Tariff Book indicates the normal customs duties (Schedule No 1, Part 1), excise duties (Schedule No 1, Part 2A), ad valorem duties (Schedule No 1, Part 2B), anti-dumping duties (Schedule No 2, Part 1) and countervailing duties (Schedule No 2, Part 2) that would be payable on importing goods into South Africa.