Differential Tariff

Differential Tariff


a type of customs duty with different rates for the same goods. Rates may be nominal, preferential, minimum, intermediate, or maximum. The last are also known as general rates.

The developed capitalist countries use differential tariffs as a tool for state-monopoly regulation of the economy and as a weapon of discrimination against other countries in international trade. For example, raw materials, especially petroleum, are imported at preferential or minimal rates, and in many cases they enter duty-free. This leads to reduced costs for the national refining industry. Nominal or intermediate rates are applied to imported semifinished products. However, in the interests of monopolies, which use these imports to manufacture and export finished goods, preferential rates may be used. Semifinished products may even enter duty-free; for example, a country that exports textiles may permit duty-free importing of yarns.

The imperialist powers generally set maximum rates for goods imported from the socialist countries. For example, in accordance with long-term agreements, in 1972 the duty on manganese ore imported by the United States from countries enjoying a preferential customs status was set at $0.0012 per pound (453 g) of manganese content, while the same ore was being imported from the USSR at a tariff rate of $0.01 per pound, that is, eight times as much. However, in the mid-1960’s the developed capitalist countries introduced more flexible differential tariffs in trade with certain socialist countries.

In the USSR, minimum and maximum rates have been established for imported goods. In conformity with the July 28, 1961, decree of the Council of Ministers of the USSR, the minimum rates apply to dutiable goods that originate in or are being imported from countries that give most-favored-nation status to Soviet goods. Maximum rates are applied to goods that originate in or are imported from countries that do not give Soviet goods such status or that have violated a trade agreement (see alsoMOST-FAVORED-NATION STATUS).


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The finance ministry said that the subsidy amount was the obligation of the government based on the differential tariff set as a policy and paid monthly as per claims received and utmost efforts of the government stands committed to meet the claims under this head, as it has done without fail and on time since it assumed office in June 2013.
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In order to analyze how the exporting countries may respond to these two types of tariff treatments, it is assumed that country M has announced credibly whether it is going to impose a uniform tariff rate or differential tariff rates.
increased trade between two countries because of differential tariff rates and not because either is necessarily the lowest-cost producer).
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He, however, excused the operators from the responsibility, saying: " We had proposed a differential tariff for messages beyond 200 per day, but it did not work out.
We wanted a differential tariff where consumers pay more for messages beyond 200 per day.
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Roeh said the Israeli government compensated settlement businesses for losses incurred because of the differential tariffs, and he expected similar assistance for damage due to labeling regulations.

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