While shopping we sometimes realize that some of the goods we are purchasing cost us more than twice as much as they could. Such apparently inexplicable difference in actual price and the price charged is primarily due to the tariffs or quotas imposed on the goods.
A tariff is a tax imposed on the goods, which are coming into India from outside India. The burden of tax is ultimately passed on to the consumer resulting in the higher prices of the goods.
A quota sets a numerical limit on how much of a certain product can be imported into a country. This helps to protect the domestic producers from facing excessively competitive conditions.
The main purpose of imposition of tariffs and quotas is the protection of domestic industries, for if the domestic industries are not adequately protected, producers and traders from other countries could dump huge quantities of the product in the host country thereby lowering the prices drastically, which could lead to the closure of the domestic businesses producing the item in question or/and dealing in it.
Hence,levying tariffs on imported goods is basically a protective measure.Therefore, import of goods into India is subject to levy of custom duty and the person importing the goods is liable to pay custom duty at applicable rates.Custom Duty is a type of indirect tax levied on goods imported into India as well as on goods exported from India. Import of goods means bringing the goods into India from a place outside India.
India includes territorial waters of India, which extend up to 12 nautical miles into the sea from the Indian coasts. The laws governing anti-dumping duties are primarily enshrine din Section 9A, 9B, 9C of the Custom Act, 1962, and the Custom Tariff Rules, 1995. These laws are based on the Agreement on Anti- Dumping which is in pursuance of Article VI of GATT 1994.
Agreement on subsidies and countervailing measures discipline the use of subsidies and regulates the actions so that the countries could counter the effect of the subsidies.
A country is free to use the WTO dispute settlement procedure to seek the withdrawal of subsidy or the removal of its adverse effects or the country can launch its own investigation and can ultimately charge extra duty known as ‘countervailing duty’ on subsidized imports that are found to be hurting domestic producers.
Implication of Tax Imposition on Imported Goods:
Businesses based in foreign countries export goods at cheaper proprietorial in order to drive the competition out of the Indian market. Government may impose tariffs to raise revenue or to protect the industries against foreign competition.
Although consumers are not prohibited from purchasing the foreign produced goods, but the government imposes the tariff
While shopping sentimentalize that some of the goods we are purchasing cost us more than twice as much as they could. Such apparently inexplicable difference in actual price and the price charged is primarily due to the tariffs or quotas imposed on the goods.
A tariff is a tax imposed on the goods, which are coming into India from outside India. The burden of tax is ultimately passed on to the consumer resulting in the higher prices of the goods.
A quota sets a numerical limit on how much of a certain product can be imported into a country. This helps to protect the domestic producers from facing excessively competitive conditions.
The main purpose of imposition of tariffs and quotas is the protection of domestic industries, for if the domestic industries are not adequately protected, producers and traders from other countries could dump huge quantities of the product in the host country thereby lowering the prices drastically, which could lead to the closure of the domestic businesses producing the item in question or/and dealing in it.
Hence,levying tariffs on imported good sis basically a protective measure.Therefore, import of goods into India is subject to levy of custom duty and the person importing the goods is liable to pay custom duty at applicable rates.Custom Duty is a type of indirect tax levied on goods imported into India as well as on goods exported from India. Import of goods means bringing the goods into India from a place outside India.
India includes territorial waters of India, which extend up to 12 nautical miles into the sea from the Indian coasts. The laws governing anti-dumping duties are primarily enshrine din Section 9A, 9B, 9C of the Custom Act, 1962, and the Custom Tariff Rules, 1995. These laws are based on the Agreement on Anti- Dumping which is in pursuance of Article VI of GATT 1994.
Agreement on subsidies and countervailing measures discipline the use of subsidies and regulates the actions so that the countries could counter the effect of the subsidies.
A country is free to use the WTO dispute settlement procedure to seek the withdrawal of subsidy or the removal of its adverse effects or the country can launch its own investigation and can ultimately charge extra duty known as ‘countervailing duty’ on subsidized imports that are found to be hurting domestic producers.
Implication of Tax Imposition on Imported Goods:
Businesses based in foreign countries export goods at cheaper price to India in order to drive the competition out of the Indian market. Government may impose tariffs to raise revenue or to protect the industries against foreign competition.
Although consumers are not prohibited from purchasing the foreign produced goods, but the government imposes the tariffs on the foreign produced goods in order to make those goods more expensive as compared to domestically produced goods, which gives the incentive to the consumer to buy domestically produced goods.
Reasons for the imposition of taxes on imported goods:
- To protect domestic goods. If foreign produced goods were allowed in the domestic market, it would substantially affect the revenue generation by the workers producing goods in the domestic market.
- To protect domestic industries from being discriminated by the inflow of foreign competition.
- To protect consumers.Governments aim to protect the consumer by bringing the price of the imported goods at par with the price of similar goods in the domestic market.
- To retaliate against a trading partner causing a genuine (“material”) injury to the competing domestic industry.
Indian Government levies several types of import duties on goods. These include:
- Basic Custom Duty
- Countervailing Duty
- Anti-Dumping Duty
- Safeguard Duty
- Protective Duty
- Education Cess
Although taxes increase the prices of goods, it is important to levy the taxes on imported goods otherwise foreign countries would uncontrollably dump their products in the host country thereby harming the domestic businesses.
s on the foreign produced goods in order to make those goods more expensive as compared to domestically produced goods, which gives the incentive to the consumer to buy domestically produced goods.
Reasons for the imposition of taxes on imported goods:
- To protect domestic goods. If foreign produced goods were allowed in the domestic market, it would substantially affect the revenue generation by the workers producing goods in the domestic market.
- To protect domestic industries from being discriminated by the inflow of foreign competition.
- To protect consumers.Governments aim to protect the consumer by bringing the price of the imported goods at par with the price of similar goods in the domestic market.
- To retaliate against a trading partner causing a genuine (“material”) injury to the competing domestic industry.
Indian Government levies several types of import duties on goods. These include:
- Basic Custom Duty
- Countervailing Duty
- Anti-Dumping Duty
- Safeguard Duty
- Protective Duty
- Education Cess
Although taxes increase the prices of goods, it is important to levy the taxes on imported goods otherwise foreign countries would uncontrollably dump their products in the host country thereby harming the domestic businesses.