Tariff Structure

A Tariff Structure is a trade policy framework that organizes tariff rates across product categories to implement trade protection patterns and revenue objectives.

• AKA: Tariff Schedule, Customs Tariff System, Duty Structure, Tariff Architecture.
• Context:
  • It can typically classify Products using harmonized system codes.
  • It can typically differentiate Tariff Rates by product characteristics.
  • It can typically implement Preferential Treatment through rate differentials.
  • It can typically balance Protection Objectives with revenue needs.
  • It can typically reflect Political Economy Considerations in rate setting.
  • ...
  • It can often exhibit Tariff Peaks in sensitive sectors.
  • It can often include Tariff Escalation across processing levels.
  • It can often create Tariff Dispersion across product lines.
  • It can often incorporate Special Duty Types for specific purposes.
  • ...
  • It can range from being a Uniform Tariff Structure to being a Differentiated Tariff Structure, depending on its rate variation.
  • It can range from being a Simple Tariff Structure to being a Complex Tariff Structure, depending on its classification detail.
  • ...
  • It can establish MFN Tariff Rates for general application.
  • It can provide Preferential Tariff Rates under trade agreements.
  • It can implement Tariff Rate Quotas for market access balance.
  • It can include Seasonal Tariffs for agricultural products.
  • It can specify Bound Tariff Rates under WTO commitments.
  • ...
• Example(s):
  • National Tariff Structures, such as:
    • U.S. Harmonized Tariff Schedule with detailed classifications.
    • EU Common External Tariff for customs union members.
    • China Customs Tariff with developing country features.
  • Sectoral Tariff Structures, such as:
    • Agricultural Tariff Structure with complex protection patterns.
    • Industrial Tariff Structure with escalation features.
    • Textile Tariff Structure with quota integration.
  • Preferential Tariff Structures, such as:
    • FTA Tariff Schedule with phase-out commitments.
    • GSP Tariff Structure for developing country benefits.
    • Customs Union Tariff with common external rates.
  • Historical Tariff Structures, such as:
    • Smoot-Hawley Tariff Structure with protectionist features.
    • Kennedy Round Tariff Cuts with linear reductions.
  • ...
• Counter-Example(s):
  • Tax Structure, which applies to domestic transactions rather than international trade.
  • Price Structure, which reflects market forces rather than policy decisions.
  • Fee Schedule, which charges for service provision rather than goods import.
• See: Trade Policy Framework, Customs Classification System, Tariff Escalation Strategy, Trade Protection Measure, WTO Tariff Binding, Preferential Trade Arrangement, Harmonized System.

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