Fundamentals of Tariff System

Term comes from the Spanish coastal town Tarifa (named after Arab "Tariff Iban Malik").
Early system: Moors/"racketeers" levied fixed charges on passing merchant ships.
Word spread into Spanish, Portuguese, French, Italian — always meaning a price list or schedule of duties.

Filipinos traded with China, Japan, Siam, Cambodia, India, Burma, Sumatra, Java.
Trade mainly by barter; prices sometimes paid in gold or metal gongs.
Chinese chroniclers noted Filipino honesty.
Foreign traders already paid tariff duties before Magellan’s arrival.

Almojarifazgo imposed: $(3\,\%)$ ad-valorem on all imports/exports; Chinese goods raised to $(6\,\%)$ in $1606$ .
Manila customs house founded $1573$ ; tariff administration evolved (Junta de Valoraciones $1734$ → Junta de Aranceles $1828$ ).
Other ports opened: Zamboanga $1833$ , Cebu $1842$ , Iloilo & Sulu $1855$ , Legazpi & Tacloban $1874$ .
Pre-1832 rates: $15\,\%$ on Spanish/Mexican goods (split $5\,\%$ departure + $10\,\%$ arrival); $3\,\%$ on other countries, $6\,\%$ on Chinese goods; $10\,\%$ on Asiatic exports to Mexico.
Tariff Board (Junta de Aranceles) created $1828$ to: increase revenue, protect local agriculture/arts, expand commerce.
New tariff effective $Jan\,1,\,1832$ : $100$ classified articles with fixed values; all exports dutiable except gold, silver, tobacco to Spain.
• Four import (and export) rates by origin/flag:
– Spanish goods in Spanish ships (lowest)
– Spanish goods in foreign ships
– Foreign goods in Spanish ships
– Foreign goods in foreign ships (highest)
Amendments $1855$ , $1857$ , $1870$ maintained protection for Spanish goods; Suez Canal opening prompted shift toward specific duties.
Law of $1882$ : exempted most Philippine products except tobacco, rum, sugar, cacao, chocolate, coffee; after $1892$ only sugar paid duty in Spain.
New tariff $Apr\,1,\,1891$ : duties made specific, free list reduced, Spanish merchandise still exempt.

McKinley Executive Order $Jul\,12,\,1898$ set provisional U.S. military tariff for occupied ports.
Manila customs reopened $Aug\,21,\,1898$ ; Spanish tariff retained minus Spanish preferences until $Nov\,10,\,1898$ .
Spanish/modified tariffs remained until Act No. $230$ (passed $Sept\,17,\,1901$ ; effective $Nov\,15,\,1901$ ) began full revision.
U.S. Dingley Tariff applied to Philippine exports to the U.S.; Philippine imports from U.S. paid full local duties — no mutual preferences initially.