The rates or charges for a firm's service or product. For example, a parking garage posts a schedule of its tariffs at the entrance. A common carrier has a schedule of tariffs for various types of goods it will transport.
Case Study A tariff imposed by a country can serve both as a source of revenue and as a barrier that protects a targeted group of businesses and their employees, but often at the expense of nearly everyone else. For example, a tariff on imported vehicles helps the domestic automobile industry and its suppliers, but penalizes car buyers, who are forced to pay higher prices and may have fewer choices. In some instances a country and the affected industries may decide a tariff no longer serves the purpose for which it was imposed. Such was the case with tariffs on aluminum imported into the European Union. In May 2007 the EU announced a trade agreement between the Gulf Cooperation Council and the European Union that would reduce by half the tariff on aluminum imported by the EU. The EU agreed to assess the situation in two years, with the possibility of eliminating the remaining tariff. Aluminum making requires large amounts of energy, the expense of which had increased dramatically. As a result, the production of aluminum was moving from the United States and Europe to energy-rich regions such as the Middle East. The EU wanted to reduce the cost of imported aluminum and other raw materials that could be fabricated in Europe into finished goods.
A document that a carrier files with a regulatory authority, describing the services the carrier intends to offer in that domain, the proposed rates and charges, and the proposed obligations, rights, and responsibilities of both the carrier and the customer. The proposal is subject to regulatory review, which generally includes public hearings. See also carrier.
federal tax on exports and imports. Tariffs are imposed to protect domestic
markets and give an advantage to domestic producers, or for their financial
benefit. Money collected from a tariff is called a duty.
A list of prices for different types of
services, such as moving or shipping services.
Term is most frequently used to refer to a customs
duty imposed on imported and exported merchandise. See also customs.
A public document that enumerates
the services offered by a public utility or carrier (freight company), along
with the rates charged for those services.
Gatt (General Agreement on Tariffs and Trade)
The 1977 international
agreement, signed by all of the major industrial nations and most other nations
of the world, the purpose of which was to promote expansion of trade by
eliminating tariffs and other trade impediments and by establishing certain
regulations promoting fairness. It has since been superseded by the
establishment of the World Trade Organization.