Interpretation Of Tariff Classification

1. According to the direction of the goods, we can take tariff It is divided into import tariff, export tariff and transit tariff.

1. import duties

That is, a tariff imposed on foreign goods transferred to the country.

It is usually collected when goods enter the territory (at customs or time) or when goods are transferred from the customs bonded warehouse to the domestic market. Import tariff is the most important form of tariff levying in the world at present. It has become the only tariff in many countries without export tariffs and transit tariffs.

Two Export duties

A tariff imposed on the export of a country's own goods. Because export tariffs will increase the cost of export goods and are not conducive to the competition of domestic goods in the international market, western developed countries have abolished export taxes. The main developing countries are still collecting financial revenue and regulating market supply and demand. At present, export tax is also levied on a small number of goods in China.

Three customs transit

That is to say, tariffs imposed on foreign countries through a country's territory (customs territory and goods transported to another country). Because transit goods do not have any impact on industrial and agricultural production and market, they can also get income from transportation, port use, warehousing and storage. At present, most countries do not impose transit tariffs, and only a few countries are still collecting Iran and Venezuela.

Two. According to the purpose of Taxation, tariffs can be divided into fiscal duties and protective tariffs.

1. fiscal duties

That is to say, the main purpose of increasing revenue is tariff. The basic feature is that the same tax is imposed on imported products and similar products of the same country, or the duties imposed do not lead the country to produce such products, nor do they guide the production of substitutes that can transfer the demand of the products.

2. protection tariff

That is to say, tariffs are imposed on the protection of industrial and agricultural production. The policy of tariff protection began with mercantilism. The emphasis of tariff protection in modern countries is different. The developed countries usually protect goods that are highly competitive internationally, while developing countries focus on protecting the development of their childish industries. {page_break}

Three, according to the tax standard, tariff can be divided into ad valorem tariff, quantity tariff, compound tariff and selective tariff.

1. ad valorem tariff

That is to say, the tax is calculated on the basis of the price of goods. The advantage of ad valorem tariff is that the tax burden is more reasonable, and the tariff revenue increases or decreases with the rise or fall of the price of the goods. The shortcoming is that the duty paid price must be strictly examined, and the tax collection procedure is rather complicated. Ad valorem tariff is the main form of levying tariff.

2. customs duties

A tariff calculated on the basis of the unit of measurement (weight, quantity, volume, and standard). The advantage of volume tariff is that it is not necessary to examine the price, quality and specification of goods, and to make taxation simple. It has a strong inhibitory effect on cheap imports. The drawback is that the goods with the same tax purpose are subject to a certain amount of tax rate when the specifications, quality and price are quite different. The amount of tax is not reasonable enough, and when the price changes, the tax revenue can not be increased or reduced.

3. compound tariff

That is to say, a tariff is imposed on the same imported goods by two criteria: ad valorem and volume. In the course of Taxation, the ad valorem tax should be added, or the ad valorem tax should be added. The procedures are rather cumbersome, but when prices fluctuate, they can reduce the impact on revenue.

4. option tariff

That is to say, in the tax code, the two rates of ad valorem and ad valorem for the same tax item can be chosen by the Customs at the time of taxation. Yin is one of the higher taxes. The basic principle of choice is to use ad valorem tax when prices rise, and to use volume tax when prices fall.

Four. With regard to the differential treatment of imported goods abroad, tariffs can be divided into increased tariffs and preferential duties.

1. increase tariffs

It is also known as discriminatory tariff, which refers to customs duties imposed on imported goods of some exporting countries or producing countries for certain reasons, such as discrimination, retaliation, protection and economic needs. Anti-dumping duties and countervailing duties are more frequently used in discriminatory duties.

The anti-dumping duty refers to a temporary import surcharge imposed by the customs of the importing country on imported products deemed to constitute an export dumping and damage to its domestic related industries. Countervailing duties are additional duties imposed on imports of foreign goods that are directly or indirectly accepting any allowance and subsidy.

2. preferential duty

That is to say, a country gives preferential treatment to a specific beneficiary country and uses a preferential tax rate lower than the ordinary tax rate. The specific forms include reciprocal tariff, preferential tariff, universal tariff and MFN treatment.

Reciprocal tariff is an agreement tariff between the two countries giving each other a preferential tax rate than other countries. Its purpose is to develop trade tariffs between the two sides and promote the development of industrial and agricultural production in both countries.

Preferential tariff is a tariff which is especially low in import or even tax exemption for countries with special relations, unilaterally or in accordance with agreements. The preferential degree is higher than the reciprocal tariff, but only for countries with special relations.

Pratt & Whitney tariff is a preferential tariff system generally granted by developed countries to exports from developing countries. The GSP is the result of the long struggle in the developing countries. It has a positive meaning to break the tariff barriers of developed countries, expand the market of developing countries' goods into the benefit countries and promote the development of their own economy. But in implementation, GSP has encountered obstacles and restrictions set by developed countries for their own economic interests.

Most favored nation treatment refers to all privileges, privileges and immunities granted to the third party by the State Party now and in the future, and it also gives the other party a preferential treatment. It is usually an important part of the international trade agreement. The scope of its application was initially limited to preferential tariffs, and later expanded to other taxes, quotas, shipping, port use, warehousing, output and many other aspects, but tariffs were still the main ones. China's foreign trade treaties or agreements also stipulate the most favored nation treatment clause, so as to expand trade on the basis of equality and mutual benefit, promote economic development of both sides and avoid discrimination.