Under customs tariff is understood:
♦ systematized list of customs duty rates;
♦ trade policy instrument and government regulation domestic market;
♦ the rate of customs duty payable when importing/exporting a certain product into the customs territory of the country (coincides with the concept of customs duty).
Customs duty- tax on imported or exported goods when they cross the customs border of the state. Main functions customs duties:
♦ fiscal, applies to both import and export duties;
♦ protective, refers to import duties, since the state uses them to protect domestic producers from foreign ones;
♦ balancing, refers to export duties, prevents unwanted exports.
All customs tariffs can be classified into five groups (see, Fig. 7.2.1).
1. Classification of tariffs in the direction of movement of goods:
♦ export tariff - a duty imposed on exported goods. It is used to prevent the mass export of scarce goods abroad when there is a large difference in prices on the domestic and world markets for certain types of export goods, as well as to replenish the budget. Rarely used;
♦ import tariff - a duty imposed on imported goods. Used to protect the domestic market from foreign competition;
♦ transit tariff - a duty imposed on goods transported through the territory of a given country. The purpose of these duties is
provide additional budget revenues.
Rice. 7.2.1. Classification of customs tariffs
2. Classification of tariffs according to the method of establishment:
♦ ad valorem tariff- duty calculated as a percentage of the customs value of the goods (for example, 10% of the customs value). It is mainly used for goods that have different quality characteristics within the same product group;
♦ specific tariff- customs duty rate levied per unit of weight, volume, length, etc. (for example, $20 per 1 ton). Mainly used for standardized goods (eg raw materials);
♦ combined tariff- simultaneously levied ad valorem and specific rates (for example, 10% of the customs value, but not more than $20 per 1 ton);
♦ alternative tariff- an ad valorem or specific rate is applied according to the decision of the customs authorities, usually the one that ensures the collection of the largest absolute amount for each specific case is selected.
3. Classification of tariffs (by value) depending from the country of origin of the goods:
♦ maximum tariff is established for all countries on the basis of state legislative acts, without coordination with other states;
♦ minimum tariff granted to those countries that receive most favored nation status. This rate is established as a result of mutual agreements. A country that grants most favored nation status to another country undertakes not to exceed the tariff rates that it imposes in relation to other countries, i.e. countries agreeing on this status provide each other with benefits that other states are deprived of;
♦ preferential tariff applies to certain countries or groups of countries. Its value is usually less than the minimum. There is an international agreement called the Generalized System of Preferences, under which industrialized countries provide benefits to developing countries. These benefits are expressed in lower customs tariffs.
Target- to encourage the purchase of goods exported by developing countries, and, on the other hand, to stimulate imports from more developed countries in developing countries.
4. Classification of tariffs by nature of origin:
♦ stand-alone tariff is established by the country independently of other subjects of world trade;
♦ conventional (negotiated) tariff is established by the country in accordance with the obligations assumed under international agreements.
5. Classification of tariffs by area of effect:
· preferential tariff established for the purpose of providing a benefit to a country or group of countries;
· seasonal rate established to regulate international trade in seasonal products, primarily agricultural;
· discriminatory tariff established with the aim of complicating and limiting the export or import of goods from a particular country.
Discriminatory tariffs are divided into:
· retaliatory (to unfriendly trade policies);
· compensatory is used to equalize the prices of similar nationally produced goods and imported ones that benefit from subsidies, by including a higher import duty in the price of the latter;
· anti-dumping, as a response measure to protect a national manufacturer, if the fact of dumping by foreign competitors is established and the import of goods causes or threatens to cause material damage to domestic producers or prevents the expansion of production of similar goods in the domestic market.
Dumping– selling goods at unreasonably low prices. In this situation, the exporting firm sells its goods in one foreign market cheaper than in another.
7.5. Non-tariff methods regulation of foreign trade
Non-tariff measures to regulate foreign trade have a higher degree of impact on foreign economic activity, since the establishment of strict control over foreign trade of certain goods in many cases turns out to be more effective than the economic levers of foreign trade regulation.
Non-tariff methods of regulation have a number of advantages compared to tariff methods. The basis of the advantage is the limited possibility of tariff regulation and the uniformity of this system. The system of non-tariff barriers is quite ramified, thanks to which greater efficiency is achieved.
There are several types non-tariff restrictions:
I. Quantitative restrictions on imports and exports.
1. Provisioning (quotas)- external regulation economic activity by limiting the import/export of foreign or domestic goods to a certain quantity or amount for a specified period of time.
Embargo- a complete ban on the import of foreign goods into the domestic market. In world practice, a ban on quotas for industrial products is established. Quotas are allowed on agricultural products and some other goods (for example, textiles, sometimes finished products; if the unrestricted import of foreign goods could harm national industries). Quotas are divided into:
♦ global- for a certain period of time, a limit is set on the quantity or value of goods that can be imported/exported, regardless of the country of the importer/exporter. Rarely used because there is a risk of losing importer markets;
♦ individual - set within the global quota; there is an allocation taking into account importers' shares in the previous year or an obligation to buy a certain quantity of goods (based on bilateral agreements). Most often, individual quotas are seasonal in nature, i.e. they are introduced for a certain period of time (for example, in autumn periods when the products of the new harvest are sold). Economic consequences - limitation of supply, increase in income growth of the national producer.
Let's imagine the following situation (Fig. 7.5.1). The domestic supply of a product on the market is Sd and demand - Dd, then domestic production will be - Q 0 If the supply of the same product from abroad is unlimited and amounts to S w(By world price - Pw), then the production of goods on the domestic market will be Q 1, consumption - Q2, import of goods - Q 2 Q 1 The country decides to limit imports and introduces an import quota of Q 4 Q 3 As a result, domestic prices rise to P 1 domestic production increases to Q 3, domestic demand will decline to Q4.
Rice. 7.5.1. Import quota
2. Licensing maybe like integral part quotas and an independent tool regulation. Then in the first case, it is just a document that confirms the right to import/export goods within the limits of receiving any quota; in the second case there is a certain series licensing forms:
♦ individual license- one-time permission to import/export goods. Issued by government authority importer/exporter, is nominal (specified entity);
♦ open individual license - permission to import/export goods without quantity restrictions;
♦ general license - a permanent permit to import/export goods without restrictions on both quantity and time; the license is impersonal;
♦ automatic license- permission issued immediately after an application for import/export of goods (a simplified form of obtaining a license).
Quota rent- specific income when a quota is introduced, resulting from an artificial increase in price. It is received by the holder of the right to import goods into the domestic market (on the foreign market, goods are purchased at Pw, and are sold domestically P 1,). Its recipients can be various entities depending on the procedure for granting the license:
♦ auction- sale of licenses on a competitive basis (the price, as a rule, is equal to the quota rent, goes to the state);
♦ free transfer - the rent goes to the national entity - the importer;
♦ transfer of license to the manufacturing country- a voluntary quantitative restriction on exports adopted within the framework of a formal intergovernmental or informal agreement on the establishment of benefits.
Similarities in the application of quotas and tariffs is that:
♦ the price of imported goods increases;
♦ incomes of national producers increase.
Difference - If a tariff is introduced, the importer is not limited by the quantity of imported goods, i.e., the measure for him is the economic feasibility of importing goods.
II. Government subsidies and financial incentives.
Subsidies - cash payments by the government to national producers to support them and discriminate against imports. Subsidies by nature of payments are divided into:
♦ straight- direct payments to the exporter after he completes the transaction in the amount of the difference in costs and the income he receives (subsidies to the manufacturer when entering the foreign market). Prohibited by the WTO because their use is quite obvious to trading partners and may cause retaliatory measures;
♦ indirect(hidden) - providing exporters with tax benefits, refund of import duties, preferential insurance conditions, assistance in structural adjustment, etc.
Subsidies are provided both to producers of goods that compete with imports and to producers of export goods. Export subsidies- a non-tariff method of regulation that represents budgetary payments to exporters, giving them the opportunity to sell goods on the foreign market at a lower price than on the domestic market.
III. Import deposit- a kind of cash deposit that the importer must pay to the bank before purchasing a consignment of foreign goods. The size of this pledge, term, currency are fixed in each state by law. This is a kind of loan that the importer gives to the state, but does not receive interest on it; After some time, the funds are returned to the importer, and as a result, the importer’s costs increase.
IV. State system placing orders- purchase by state enterprises of goods produced by national producers, even though these goods may be more expensive than imported ones.
V. Currency regulation:
♦ external exchange restrictions (for example, clearing- trade between countries on the basis of mutual offsets);
♦ restrictions related to the acquisition and sale of currency;
♦ mechanism for differentiating currency ratios (establishing a different exchange rate for certain trade transactions);
♦ devaluation - depreciation of the national currency;
♦ revaluation - an increase in the exchange rate of the national currency.
VI. Technical barriers- restrictions that arise due to the fact that national technical, administrative and other rules and regulations are structured in such a way as to create a barrier to foreign goods (for example, standards, certification, quality control of goods, etc.).
Tariff barriers include customs tariff (customstariff) – this is a systematic list of customs duties that are imposed on goods when crossing the state border.
Customs tariff means:
a systematic list of customs duty rates;
an instrument of trade policy and government regulation of the domestic market;
the rate of customs duty payable upon import/export of a certain product into the customs territory of a country (coincides with the concept of customs duty).
Distinguish single-column tariff – one duty rate is imposed on all imported goods. It implies that, regardless of the country of origin, a single rate is established for each imported product of a certain range. Tariff development occurs by increasing the range of goods.
Multi-column tariff – sets two or more bids for each product group. The most complex tariffs exist in Congo, Venezuela, Mali (up to 17 columns).
The tariff structure of many countries primarily protects domestic producers of finished products, especially without preventing the import of raw materials and semi-finished products. Tariff escalation(tariff escalation) - an increase in the level of customs taxation of goods according to the degree of their processing.
Currently, customs tariffs are structured in such a way that the level of taxation increases simultaneously with the increase in the degree of processing of the goods (keeping developing countries in a monoculture).
Source: Akopova E.S., Voronkova O.N., Gavrilko N.N. World economy and international economic relations. Series "Textbooks and teaching aids". Rostov-on-Don: “Phoenix”, 2001. – 237 p.
Customs tariffs are based on commodity classifiers, of which there are four in world practice. Customs duty (customsduty) – state monetary fee (tax) levied by customs authorities on goods, valuables and property transported across the country’s border. A tax on imported or exported goods when they cross the customs border of a state.
Main functions customs duties:
fiscal , applies to both import and export duties, since they are one of the revenue items of the state budget;
protectionist (protective), refers to import duties, since with their help the state protects domestic producers from unwanted foreign competition;
balancing , refers to export duties, prevents unwanted exports of goods for which domestic prices for one reason or another are lower than world prices.
All customs tariffs can be classified into groups:
In the direction of movement of goods (according to the object of taxation):
export tariff - a duty imposed on exported goods. It is used to prevent the mass export of scarce goods abroad when there is a large difference in prices on the domestic and world markets for certain types of export goods, as well as to replenish the budget. Rarely used;
import tariff - a duty imposed on imported goods. Used to protect the domestic market from foreign competition;
transit tariff - a duty imposed on goods transported through the territory of a given country. The purpose of these duties is to provide additional revenue to the budget.
By method of establishment (collection):
ad valorem tariffs – customs duty, established as a percentage of the customs value of the goods. It is mainly used for goods that have different quality characteristics within the same product group. In world practice, ad valorem duties are most widespread, which now account for about 80% of all customs duties. The average level of ad valorem duty rates is about 4–6%;
specific tariff – the customs duty rate is set in absolute terms per unit of measurement: weight, volume, length, area, etc. Specific duties are most often export duties, especially when exporting raw materials;
combined (mixed) tariff – includes both methods of establishing the amount of duties discussed above;
alternative tariff – applied according to the decision of the customs authorities. The ad valorem or specific rate is usually chosen to be the one that ensures the largest absolute amount is charged for each particular case.
By nature of origin (depending on the country of origin of the product):
stand-alone tariff established by the country independently of other subjects of world trade;
conventional (negotiable tariff) is established by the country in accordance with the obligations assumed under international agreements;
preferential – duties at lower rates than the customs tariff generally in effect, which are imposed on the basis of multilateral agreements on goods originating in developing countries.
The amount of customs rates depends on the trade regime provided to that country. In international practice there is a distinction three types of trading modes: R most favored nation status; preferential (preferential) regime; duty free regime. First used in trade with countries with which there are no trade agreements; second– in cases where there are trade agreements on the introduction of most favored nation treatment; third– usually used when importing goods from developing countries.
Classification of tariffs by area of effect:
seasonal rate established to regulate international trade in seasonal products, primarily agricultural;
preferential tariff is established with the aim of providing a benefit to any country or group of countries, i.e. facilitate the export or import of goods from that country;
discriminatory tariff established for the purpose of complicating or restricting the export or import of goods from a particular country. Discriminatory tariffs are divided into:.
retaliatory, compensatory, anti-dumping In a number of cases, international practice uses the so-called. tariff quotas
They make it possible to apply established reduced rates if the total volume of imports does not exceed restrictions - quotas, and an increased rate when the volume exceeds it. A variant of tariff quotas is the provision of preferential treatment for the import of a certain amount of goods at a preferential duty rate. Tariff quotas are a trade and political instrument of a combined nature, combining elements of economic and administrative influence. It is actively used, for example, in the EU, and is also provided for by the Agreement on Agriculture under the GATT/WTO. This is nothing more than the main form of economic cooperation between different countries
The state regulates international trade unilaterally, that is, the instruments of this regulation are used by the government without consultation and agreement with the country's trading partners. Regulation can also occur bilaterally, which means that different trade policy measures are agreed upon between countries that are trading partners. There is also multilateral regulation, that is, it is regulated by various multilateral agreements.
Currently, there are non-tariff methods of regulating foreign trade and tariff ones. The first includes tariffs. This is the main instrument of trade policy of any state and its legality is recognized by international standards. Customs tariff has several definitions. The first is a tool used in trade policy and regulation of the domestic market in the process of its interaction with the world market. The second definition is a set of different ones that apply to goods crossing the customs border. This set of rates is systematized in full accordance with the entire product range.
Tariff methods of regulating foreign trade, namely, consist of specific, clear rates of customs duties used for the purpose of taxing exported and imported goods. Customs duty is a mandatory fee that is collected by customs authorities when exporting or importing goods.
Non-tariff methods of regulating international trade are now actively used by the government of any state. Unlike customs tariffs, almost all of them are difficult to quantify and, as a result, are poorly reflected in statistics. Non-tariff methods of regulating foreign trade are financial, hidden and quantitative. The fact that they are not quantifiable makes it possible for different governments to use either them individually or some combination of them to achieve their trade policy objectives. If you use non-tariff methods of regulating foreign trade (especially intensive quantitative ones) together with liberal ones, then trade policy as a whole becomes more restrictive. Quantitative restrictions are an administrative form of non-tariff regulation of state trade, which is designed to determine the range and quantity of goods allowed for import and export. The government of a particular country may decide to apply quantitative restrictions independently or based on their international agreements.
Quantitative restrictions have two forms: contingent or quota. This is practically the same thing, the concept of contingent is often used to designate a quota that is seasonal. Non-tariff methods of regulating foreign trade are also represented by licensing. It occurs through permits that are issued government bodies for the import or export of goods for a specific period of time.
Methods of hidden protectionism also play a big role. They represent all kinds of non-customs barriers that are erected by local and central government authorities on the path of trade.
The number of measures of state regulation of foreign trade is constantly growing, as more and more new products are involved in international exchange various fields economic activity. This necessarily involves the use of a wider range of means and instruments to effectively protect the national economy from the negative impact external factors, to help strengthen the position of domestic producers in the global market.
Instruments (methods) of state regulation of foreign trade are divided into tariff and non-tariff. The classification of these instruments into tariff and non-tariff was first proposed by the GATT (General Agreement on Tariffs and Trade) Secretariat in the late 60s. XX century This agreement defined non-tariff restrictions (NTBs) as “any action, other than tariffs, that impedes the free flow of international trade.”
To date, a single (universal) international classification non-tariff instruments of state regulation of foreign trade have not yet been developed and agreed upon. There are classifications of GATT/WTO, International Chamber of Commerce, United Nations Conference on Trade and Development, UNCTAD), IBRD, US Tariff Commission, individual scientists studying these problems.
Currently, in addition to tariff methods of government regulation, UNCTAD classifies non-tariff methods of regulating foreign trade (non-tariff restrictions) as follows:
1) para-tariff methods;
2) price control measures;
3) financial measures;
4) quantitative control measures;
5) automatic licensing measures;
6) monopolistic measures;
7) technical measures.
Thus, together with UNCTAD tariff measures, only eight main measures (methods) of tariff and non-tariff government regulation of foreign trade are used.
Tariff methods are the most common and constantly used - in the form of import and (to a lesser extent) export duties.
Essential for their consideration is the concept of import customs tariff (ICT), which is a systematic list (or nomenclature) of imported goods subject to customs duties, as well as a set of methods for determining their customs value and collecting duties; mechanism for introducing, changing or canceling duties; rules for determining the country of origin of goods.
The main components of ITT are:
Systematized list (nomenclature) of imported goods;
Methods for determining the customs value (price) of imported goods and collecting duties;
Mechanism for introducing, changing or canceling duties;
Rules for determining the country of origin of goods;
Limits of powers of executive authorities in the customs area.
ITT is based on accepted various countries legislative acts, customs codes. Together with the country’s internal tax system, ITT regulates the general economic climate in it and has a significant impact on many processes occurring in the economic life of the country.
The active part of ITT is the rates of customs duties, which are essentially a kind of tax on the right to import foreign goods (duties are levied at the moment of crossing the customs border of the state).
Depending on the direction of movement of goods, duties are import, export and transit. In this case, import duties are most often applied, and export and transit duties less often.
In accordance with the method of establishing duties, the following differ:
Ad valorem duties;
Specific duties;
Combined duties.
The most common ad valorem duties in international trade are set as a percentage of the value (price) of the goods crossing the customs border. In this regard, the method of estimating the cost of imported goods becomes essential. Currently, its application in many countries is regulated by the Agreement on the Valuation of Goods for Customs Purposes, concluded under the GATT. As a rule, import customs duties increase as the degree of processing of the product increases (i.e., the more value added there is).
An important place in the import customs tariff system is given to the rules for determining the country of origin of goods, since in relation to different groups of countries, import duties are differentiated. The base rates are the rates of import duties applied to goods imported from countries in respect of which the given (importing) country has Most Favored Nation Treatment. Its essence is that a country that applies most favored nation treatment to a number of other countries, in the event of a reduction in import duties in relation to any third country (to which this country does not apply most favored nation treatment) must automatically reduce import duties by those the same goods and to the same level as for this third country. In accordance with concluded agreements and current practice, developing countries are subject to import duties that are 2 times lower than the base rates. Goods from countries to which most-favoured-nation treatment is not applied are imported at import customs duty rates that are 2 times the base rates. Goods from least developed countries are imported duty-free (with “zero” duties).
Let us consider the main non-tariff measures (methods) of state regulation of foreign trade activities. They represent a set of economic (except for the customs tariff), administrative and technical measures that have a regulatory impact on foreign trade. At the same time, economic measures include control of customs values, exchange controls, financial measures (related to subsidies, sanctions, etc.), as well as protective measures, which include special types of duties (anti-dumping, countervailing, special) and additional customs duties (excise taxes, VAT, other taxes). Administrative measures include prohibitions (embargos) in open and hidden form, licensing (automatic and non-automatic), quotas and export controls.
As already noted, UNCTAD identifies seven main non-tariff measures of state regulation of foreign trade (para-tariff methods, price control measures, financial measures, quantitative control measures, automatic licensing measures, monopolistic measures, technical measures).
Paratariff methods are types of payments (in addition to customs duties) that are levied on foreign goods when they are imported into the territory of a given country. These include various customs duties, internal taxes, and special targeted fees. The most commonly used paratariff methods include primarily VAT and excise taxes.
VAT (value added tax - VAT), excise taxes (excise tax, internal revenue tax) and other para-tariff payments are applied as non-tariff measures of state regulation of foreign trade, aimed at protecting the interests of domestic producers and stimulating the competitiveness of domestic goods along with tariff regulatory measures. These payments regulate the prices of imported goods in the country's domestic market and protect domestic goods from foreign competition.
In some countries, very specific forms of para-tariff payments are used: a levy for the export development fund (in Austria), a levy for environmental protection (in Denmark), a levy on the import of goods in plastic containers into the country (for environmental reasons - in Italy), a tax on plant protection (in Sweden), waste collection (in Finland), etc.
Paratariff methods, as a rule, are not directly linked to the goals of regulating foreign trade (like customs duties), but their impact on foreign trade is often quite significant.
Price controls are measures to combat artificially low prices for goods imported into a given country (anti-dumping measures) and measures aimed at combating export subsidies provided by foreign governments to domestic exporting firms, which also artificially increases their international competitiveness (countervailing measures). .
Anti-dumping duties are actually additional duties levied on imported goods that are found to be sold for export at a price below their normal price in the domestic market of the exporting country and cause material harm to the domestic producer of the importing country. In international practice, for quite a long time there was no generally accepted definition of dumping. This created the preconditions for the customs authorities of some countries, especially in difficult periods of development from an economic point of view, to make arbitrary and often unfounded decisions regarding exporters of products imported into the country.
The Anti-Dumping Code adopted within the GATT/WTO (Agreement on the Application of Article VI of the GATT 1994) specified the methodology for determining the fact of dumping and the corresponding legal grounds for the use of anti-dumping duties. The anti-dumping duty rate is set individually in each case, and its size must correspond to the difference between the normal price and the dumping price (dumping margin), which makes it possible to actually neutralize the dumping operation. The introduction of an anti-dumping duty is not automatic - it is introduced only after an investigation has been conducted to establish the very fact of dumping and to determine that dumped exports have actually caused (or threaten to cause) material damage to the industry of the country importing the product.
Attention should be paid to the fact that the international practice of conducting anti-dumping investigations indicates that quite a few accusations of dumping are then not confirmed during the investigation. However, the very fact of the investigation and public accusations of dumping sharply complicate export-import operations and cast doubt on the achievement of planned financial results by interested parties (exporters and importers). If the fact of dumping and the material damage incurred from it is proven, the government of the country, by its special decision, introduces anti-dumping duties.
As an analysis of the use of anti-dumping measures in world trade shows, since 1995 they themselves have largely begun to be used as a hidden (or disguised) instrument of protectionist policy (or as one of the instruments of the so-called “new protectionism”).
The gradual increase in some countries of support for both exports and domestic production (for example, in the form of subsidies, tax breaks, preferential tariffs, etc.) was reflected in the WTO Agreement on Subsidies and Countervailing Duties, which established the rules countries' use of subsidies and countervailing duties. However, like anti-dumping measures, countervailing measures are often used by countries as a tool of actual “hidden protectionism”.
To protect certain economically vulnerable sectors from foreign competitors national economy(primarily various branches of the agricultural sector) sliding import taxes (aimed at bringing the domestic price of a product to a certain level) can also be applied.
Financial measures are associated, as a rule, with the use of special rules for carrying out foreign exchange transactions in the course of foreign trade exchange (for example, the introduction of the mandatory sale of part of the foreign exchange earnings received from foreign trade transactions).
Measures of quantitative control (quotas) are associated with the establishment by countries of appropriate quantitative restrictions on the import and export of specific goods.
These measures are applied by almost all countries. The provisions of GATT 1994 related to the application of quantitative restrictions in foreign trade are very contradictory, contain mutually exclusive provisions and to date do not actually create a clear and coherent international legal basis for regulating the application of quantitative control measures (quantitative restrictions). On the one hand, GATT 1994 contains provisions according to which all countries that are members of the WTO (and these countries accounted for more than 95% of world trade by the beginning of 2004) must abandon the use of quantitative restrictions. However, on the other hand, this General Agreement contains provisions according to which member countries can apply quantitative restrictions (for example, to maintain the equilibrium of the country's balance of payments). GATT 1994 has so-called “exceptions to the non-discrimination rule”, which allow countries to use quantitative restrictions selectively against a number of countries. This agreement also contains provisions banning the import and export of certain goods. For example, the export of a specific product may be prohibited or limited in a situation where there is a shortage (shortage) of this product in the domestic market of a given country.
Automatic licensing. The essence of this measure is that the import or export of certain goods in the country requires obtaining an appropriate document (license). With the introduction of licensing, monitoring (surveillance) of trade in these goods is carried out. Although this kind of monitoring in itself is not a restrictive measure (since this licensing is automatic), it does facilitate the introduction of such measures if necessary. The practice of automatic licensing is quite common. It is no coincidence that the Agreement on Import Licensing Procedures (which is otherwise defined as the Import Licensing Code) operates within the WTO.
This agreement is aimed at simplifying and unifying formalities when issuing import licenses. It provides for the possibility of creating an automatic licensing system (in which the corresponding license is issued automatically).
Monopolistic measures. The essence of this non-tariff instrument for regulating foreign trade is that in different periods, individual states establish their monopoly on trade in certain goods in general (i.e., including domestic trade) or only on foreign trade in them. In many cases, the introduction of a state monopoly of foreign trade in certain goods in certain countries is motivated by their leadership by considerations of maintaining public morality, health and ethics (alcohol, tobacco), ensuring a stable supply of medicine to the population (pharmaceuticals), food security (grain), sanitary and veterinary considerations (food).
Sometimes this kind of monopoly is established in a hidden form, when the state designates a corresponding state-owned company as the monopoly seller or buyer. In some cases, the practice of centralizing exports and imports on the basis of creating voluntary associations of exporters and importers of these goods turns out to be very close to a state monopoly of foreign trade in certain goods. Centralization of export and import operations can manifest itself in a hidden form, for example, in the practice of compulsory insurance of certain goods by national insurance companies, compulsory transportation of relevant goods by national transport companies and etc.
The existence in actual practice of such a non-tariff measure for regulating foreign trade is reflected in the fact that GATT 1994 has a special article (XVII) dedicated to the activities of government trading enterprises(which is actually associated with monopolistic measures in foreign trade). This article does not prohibit the activities of such enterprises, but requires that they operate in trade on the basis of general principles of non-discrimination and are guided by commercial considerations, including price and quality of goods. State-owned trading enterprises must provide equal opportunities to any enterprises of other countries to enter into commercial transactions with them.
Therefore, even some countries that are members of the WTO, where the principles of trade liberalization are being fully developed, use the form of state trading enterprises. Thus, in accordance with the UNCTAD Handbook on Import Regimes, in the 90s. in Austria, 3 state enterprises concentrated all foreign trade in tobacco, alcohol, salt, in Finland - 2 (alcohol, grains), in Iceland - 5 (alcohol, electrical equipment, communications, tobacco, fresh fruit), in Japan - 6 (alcohol, cereals, butter, milk powder, salt, silk), in Mexico - 1 (milk powder), in New Zealand - 1 (fruit), in Norway - 3 (alcohol, grain, pharmaceuticals), in Sweden - 1 (alcohol), in Turkey - 1 (alcohol), in France - 1 (matches), in Greece - 1 (matches), in Switzerland - 2 (butter, alcohol).
Technical barriers in foreign trade are associated with the control of imported goods in terms of their compliance with national safety and quality standards. They are mandatory when passing certain categories of goods across the customs border.
Within the framework of the WTO, there is an Agreement on Technical Barriers to Trade (TBT). This agreement recognizes the right of all countries to establish mandatory technical standards (including requirements for packaging and labeling of goods). The purpose of establishing and using these standards is to ensure the quality of export products, production requirements, protect the life and safety of people, animals and plants, as well as protect the environment and ensure national security requirements.
At the same time, the TBT Agreement recognizes that states have the right to establish protection, for example, of human life, animals and plants or the environment at the national level, i.e. at the level that would be considered necessary in a given country. In other words, the TBT Agreement assumes that the legislative measures adopted in different states in this area may vary.
It should be noted that the provisions of this agreement, which guide countries in their practice of state regulation of foreign trade, apply both to the goods themselves and to the way in which they are produced. At the same time, the method of production of goods is taken into account by the TBT Agreement only if it changes the quality of the goods. For example, a given country prohibits the import of cold-rolled steel sheets, arguing that the production process does not provide required quality products (i.e. the quality of the product remains the criterion). This situation falls within the purview of the TBT Agreement. The situation is fundamentally different when a country prohibits the import of steel sheets from another country on the grounds that the manufacturer steel sheet the plant does not have effective system environmental protection, but this does not affect the quality of this product. In this case, there is no basis for applying the provisions of the TBT Agreement.
In accordance with the TBT Agreement, in cases where countries adopt their technical standards, not based on existing international standards, WTO member countries must publish a notice to this effect in advance to the WTO Secretariat.
The annex to the TBT Agreement contains the so-called Code of Good Practice, which regulates the preparation, adoption and application of standards. This code contains the above provisions.
TEST QUESTIONS AND TASKS
1. Define the concept of “foreign trade policy”.
2. What is the strategy of modern foreign trade policy?
3. Describe the content of the concepts of protectionism and liberalization and their relationship in modern foreign trade policy.
4. Name the main non-tariff measures for regulating foreign trade according to the UNCTAD classification.
5. Describe the content of the Import customs tariff and its components.
6. Show the differences between ad valorem, specific and combined duties.
7. Describe paratariff measures for regulating foreign trade.
8. Show the place and role of anti-dumping policy and anti-dumping duties, in particular, in the modern foreign trade policy of states.
9. Show examples of how monopolistic measures to regulate modern foreign trade appear in a hidden form.
| Parameter name | Meaning |
| Article topic: | Tariff methods |
| Rubric (thematic category) | Sport |
Tariff methods involve establishing a customs tariff (duty). This is the most traditional method, an actively used means of state regulation of export-import operations.
customs tariff- ϶ᴛᴏ a systematic list of duties that the government imposes on certain goods imported into or exported from the country.
Customs duties- ϶ᴛᴏ taxes levied by the state for transporting goods, property, and valuables across the country’s borders.
The beginning of the formation of the customs tariff – III – II millennium BC. The term “tariff” originates from the southern Spanish city of Tarif, in which a table was first compiled where the names of goods, measures of measurement and the amount of duties for transporting goods through the Strait of Gibraltar were entered.
The customs tariff performs the following functions:
1) fiscal (replenishment of budget revenues);
2) protective (protection of domestic producers from competition);
3) regulatory (regulates the import and export of goods);
4) trade and political.
There are different duties:
Imported (they are assessed on goods imported into the country);
Export (they are taxed on exported goods);
Transit (levied on goods crossing the national territory in transit).
Import duties are divided into fiscal and protectionist. Fiscal duties apply to goods that are not produced domestically. Protectionist tariffs are intended to protect local producers from foreign competitors.
Import duties are used either as a means of financial revenue (more often in developing countries) or as a means of carrying out certain trade and economic policies. The owner of the imported product will increase the price after paying the duty. The tariff, by limiting imports, leads to a deterioration in consumer opportunities. But it is beneficial to the state and domestic producers.
Export duties increase the cost of goods on the world market; therefore, they are used in cases where the state seeks to limit the export of a given product. The purpose of export duties levied by countries with monopoly natural advantages is to limit the supply of raw materials to the world market, increase prices and increase revenues for the state and producers.
In developed countries, export duties are practically not applied. The US Constitution even prohibits their use.
Transit duties hinder the flow of goods and are considered highly undesirable and disruptive. normal functioning international relations. Today they are practically not used.
There are two main methods for establishing the level of customs duties:
1. The amount of duty is determined as a fixed amount per unit of measurement (weight, area, volume, etc.). This duty is usually called specific. It is especially effective in conditions of falling prices for goods - during periods of depression and crisis.
2. The duty is set as a percentage of the value of the goods declared by the seller. Called ad valorem.
The domestic price of an imported good (P d) after imposition of a specific tariff will be equal to:
P d = P im + T s,
where: P im - the price at which the goods are imported (customs value of the goods);
T s - specific tariff rate.
When applying an ad valorem tariff, the domestic price of an imported product will be:
P d = P im * (1 + T av),
where: T av – ad valorem tariff rate.
There is also an intermediate method, which consists in the fact that customs gets the right to independently choose between specific and ad valorem duties based on which one is higher. Similar duty - alternative.
Trading countries may be in various contractual and political relations: be members of a customs or economic union, have a signed agreement granting them most favored nation treatment.
Taking into account the dependence of the regime, duties levied on the supplied goods are established:
Preferential (especially preferential);
Negotiable (minimum);
General (autonomous), that is, maximum.
Rates preferential duties below minimum and often equal to zero. The right to use preferential duties is granted to countries included in economic integration groups: free trade zones, customs and economic unions etc. For example, the countries of the European Union provide each other with preferential duties (equal to zero) on the import of goods, which do not apply to other countries.
General (maximum) duty two to three times higher than all others, and its application actually discriminates against goods imported from a particular country. For example, the collection when importing goods from the USSR to the USA during the Cold War.
When a customs tariff is introduced, the price of imported goods increases. This contributes to rising prices for domestically produced goods. The supply of goods on the domestic market is increasing, but demand is decreasing. As a consequence, there is a decrease in imports.
The impact of the tariff is different for economic entities. So consumers:
1) pay income from the tariff;
2) pay profits to firms;
3) pay for excess costs of domestic production;
4) lose consumer surplus.
The state benefits from the introduction of a customs tariff, as budget revenues increase. In essence, this is a transfer from consumers to the state.
Domestic manufacturers receive additional profit. This profit is a transfer of income from consumers to producers.
Society incurs a social cost because the resources that flow into the industry protected by the tariff could be used more efficiently in other sectors of the economy.
In the EU, import duties on rice are 231%, dairy products - 205%, sugar - 279%. In Japan, the duty on rice is 444%, on wheat – 193%. In the USA, the duty on dairy products is 93%, on sugar – 91%.
Tariff methods - concept and types. Classification and features of the category "Tariff methods" 2017, 2018.
Free Trade Zone (FTA). Customs Union. In the practice of foreign trade regulation. Refers to tariff methods of regulation.
- Topic 19. Tariff methods for regulating foreign trade
In the practice of foreign economic activity, tariff and non-tariff methods of regulating foreign trade are used.
- Non-tariff methods of regulating foreign trade
- Topic 13. Regulation of foreign trade in goods: non-tariff methods
2. International regulation of foreign trade. Customs unions and free trade zones.
3. The role of GATT/WTO in regulating international trade.