TARIFFS

 TARIFFS

• Tariffs, also known as customs duties, are basically taxes or duties imposed on goods and services which are imported or exported. It is defined as a financial charge in the form of a tax, imposed at the border on goods going from one customs territory to another. 
• They are the most visible and universally used trade measures that determine market access for goods. Import duties being pervasive than export duties, tariffs are often identified with import duties and in this unit, the term ‘tariff’ would refer to import duties.
• Tariffs are aimed at altering the relative prices of goods and services imported, so as to contract the domestic demand and thus regulate the volume of their imports. 
• Tariffs leave the world market price of the goods unaffected; while raising their prices in the domestic market. 
• The main goals of tariffs are to raise revenue for the government, and more importantly to protect the domestic import-competing industries.