Tariffs
Tariff Escalation
Also known as: Tariff escalation, Progressive tariff structure
A trade policy practice where tariffs increase progressively with the degree of processing, imposing higher duties on finished goods than on raw materials.
Also known as: Tariff escalation, Progressive tariff structure
A trade policy practice where tariffs increase progressively with the degree of processing, imposing higher duties on finished goods than on raw materials.
Tariff escalation is a tariff structure where import duties increase as the level of processing or manufacturing grows. For example, raw cocoa beans may face 0% duty, cocoa paste 5%, chocolate bars 15%, and filled chocolates 25%. This practice protects the importing country's processing industry and discourages industrialization in raw material exporting countries, generating debates in WTO forums.
Ad Valorem Tariff
An import duty calculated as a percentage of the customs value of goods. It is the most common type of tariff in international trade.
TariffsEffective Rate of Protection
A measure that calculates the real level of tariff protection an industry receives, considering tariffs on both inputs and the finished product.
TariffsTariff Escalation
A tariff structure where duties increase progressively with the degree of product processing, protecting domestic manufacturing industry.
TariffsTariff Classification Code
An 8 or 10-digit numerical code that identifies a specific product within Mexico's tariff schedule (TIGIE), determining applicable duties and regulations.