Trade, Barriers & Tariffs

Ad valorem tariff

A tax calculated as a fixed percentage of the imported good's total commercial value.

Specific tariff

A fixed monetary fee per physical unit or weight, regardless of value.

Compound tariff

A tariff combining ad valorem and specific on one item.

Retaliatory tariff

A tariff to punish a partner for its own unfair tariffs, often triggering tariff wars.

Restrictive tariff

An aggressive tariff designed to inflate import prices and reduce volume to protect domestic producers.

Blocked currency

A government restriction that blocks domestic currency from being exchanged for foreign currency.

Differential exchange rates

Government-set varying exchange rates to make importing non-essential or luxury goods more expensive.

Foreign exchange permits

Requirement that importers get administrative approval from the government/central bank to buy foreign currency.

Quotas

Direct legal limits on the quantity or value of a good allowed in over a set period.

Import licensing

Administrative requirement forcing businesses to obtain government permission before importing goods.

Subsidies

Financial aid or tax breaks to domestic industries that artificially lower costs to undercut foreign rivals.

"Buy national" rules

Mandates requiring public agencies or state-funded projects to buy domestic goods over foreign ones.

Product standards

Strict health, safety, technical, or environmental rules foreign goods must meet, raising the barrier to market entry.

General (Column 1 of Tariff Sheets) rate

The normal tariff rate for countries with Normal Trade Relations/Most Favored Nation (NTR/MFN) status.

Special (Column 1 of Tariff Sheets) rate

A reduced or free rate for partners with special agreements, such as Free Trade Agreements (FTA)

Non NTR/MFN (Column 2 of Tariff sheets) rate

The high penalty rate for countries without normal trade relations status

HTS (Harmonized Tariff Schedule)

Classifies imported goods by number, description, unit, and duty rate to assess tariffs.