It is very important to know about what the tariff is. We can define tariffs as a type of tax that is applied on goods and services imported from other countries.
It is commonly used to raise the prices of imported goods making them more costly than the national or internal goods and services.
The main purpose of this type of tax is that people like less things that are imported from other countries due to the high rate of price and they pay attention to the local products.
Tariff is divided into three major groups that are transit duties, export duties and import duties.
The question is how can you classify tariffs. Here are 4 key reasons that you should have the tariff classification sorted out.
1-Duty rates:
The tariff classification commands the duty rates that you have to pay. These rates may be different.
2-FTA
FTA stands for free trade agreement. It is the agreement between two or more countries where they sign an agreement on certain obligations that effect and provide protection for investors.
3-Anti Dumping Duty Quotas:
This tax is applied on specific imports that protect the local market. Quotas can apply on goods that are imported. These things are linked to the tariff classification.
4-Exports:
Exports certificates and other licenses can be needed and also managed by the tariff classification.
Tax accountants play a vital role in Tariff classification by providing Their expert understanding about financial and optimal pricing strategy for a company goods and services.
The expert team of vat accountants and local tax accountants can give you advice on how to manage your business.
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