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1 week ago
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Source: AFP
Customs duties, oregon tariffs, person go a governmental punching shot arsenic the European Union prepares to respond to US President Donald Trump's caller offensive.
But what precisely bash we mean erstwhile we talk about tariffs? How does the EU argumentation work? Who pays them and what are they for?
Some answers:
What are tariffs?
Used by astir each country, tariffs are a taxation connected products imported from abroad.
They instrumentality galore forms, the astir communal being a percent of the economical worth of the merchandise -- the "ad valorem" duty.
Source: AFP
The EU, similar different economies, besides uses alleged "specific" tariffs, specified arsenic an magnitude acceptable per kilogramme oregon per litre of immoderate fixed product.
Globally successful 2022, the mean tariff was 3.6 percent, according to the CCI-Cepii database (Centre for Prospective Studies and International Information).
In different words, each merchandise crosses a borderline astatine a terms 3.6 percent higher than its outgo domestically.
"This mean fig hides precise beardown differences betwixt countries and sectors," Houssein Guimbard, a commercialized policies specializer astatine Cepii, told AFP.
What are they for?
The astir contiguous nonsubjective of these taxes is to springiness home producers a competitory vantage against overseas competition, said Guimbard.
Another goal, which is much the lawsuit successful processing countries, is to supplement the authorities budget.
Source: AFP
Some African oregon land countries, for example, concern much than 30 percent of their expenses this way, according to Guimbard.
Countries besides usage tariffs to support a affirmative commercialized equilibrium and support the magnitude of imports down by taxing them.
"It's a spot similar President Trump's existent logic," Guimbard told AFP.
Who decides them successful the EU?
As a effect of the customs union, the 27 subordinate states person a communal customs tariff for imported goods.
They bash not use immoderate interior customs duties. The communal customs tariff rates are acceptable by the EU Council, based connected proposals from the European Commission (EC).
Source: AFP
They alteration depending connected agreements negotiated with commercialized partners and according to the "economic sensitivity of the products," the Commission says.
Typically, precise debased customs duties are applied to lipid oregon liquefied state "because consumers and companies request them, and the European Union does not needfully nutrient them," said Guimbard.
Conversely, agriculture is highly protected: 40 to 60 percent extortion connected beef oregon dairy products, including each rights and quotas, compared to an mean extortion of 2.2 percent successful the EU successful 2022, according to Guimbard.
Since 2023, the EC has planned a "graduated effect if our companies were victims of a important summation successful customs duties," Yann Ambach, caput of the Tariff and Trade Policy Office astatine the Directorate General of French Customs, told AFP.
"It is wrong this model that the countermeasures presently being considered by the EC would beryllium implemented," Ambach said.
Who pays them?
In the EU, arsenic a wide rule, the importer, alternatively than the exporter, pays the customs duties.
If they increase, the main question is whether companies walk connected the further costs to the consumer.
Source: AFP
"One indispensable see however important the merchandise is for consumers and whether companies can rise the terms of this merchandise without reducing their margins," said Guimbard.
"The translation of the summation successful customs work besides depends connected the quality of companies to find alternate sources erstwhile importing, oregon alternate destinations erstwhile exporting."
Who collects them?
The subordinate states are liable for collecting customs duties.
They "must person capable power infrastructure to guarantee that their administrations, particularly their customs authorities, transportation retired their tasks successful an due manner", according to the EC.
"The American measures and the consequent European retaliatory measures correspond to an intensification of the missions of monitoring, verification, and power of imports and exports," said Ambach.
Where bash they go?
For the play 2021-2027, the subordinate states clasp 25 percent of the collected customs duties.
"This measurement not lone covers postulation costs but besides serves arsenic an inducement to guarantee a diligent postulation of the amounts due," the EC says.
The remaining 75 percent straight funds the EU budget. Tariffs connected imported goods truthful relationship for astir 14 percent of the assemblage budget.
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Source: AFP
