Understanding the Various Business Tariffs
Business Tariffs are in vogue today and have become mandatory for all types of businesses and individuals involved in the trade. Business Tariffs help businesses to flourish in a competitive and thriving manner. These tariffs help a business deal with various complications and issues that come up during trade. The various business Tariffs have been designed by the various government departments and hence can be categorized into several sections namely:
General Tariff – This is the general Tariff that has more to do
with imports and exports. This tariff also covers the many transportation and transport goods like petroleum, coal, iron ore, steel, etc. It also includes agricultural and horticultural products. General Tariffs on import and export of goods traders help businesses flourish. With this tariff, they can buy raw materials directly from suppliers at cheap rates and sell them to customers at higher rates.
Functional Tariff – This tariff helps functional persons
in knowing the various aspects of import and export. With the help of this tariff, they get a better idea of buying and selling goods. They get the information of the duty payable and the taxes to be paid.
Special Tariff – This tariff is a special one and is mostly issued
by the governments of a country or state. The special Tariff helps in restricting the entry of goods that are detrimental to the national interest. In many cases, the special Tariff may restrict the entry of certain specific items. The list of items that fall under this category includes ballistic missiles, nuclear weapons, components for nuclear weapons, and others.
The above four are the various categories of Tariffs.
Each of these categories has its own advantages and disadvantages. The most important aspect is that a business needs to comply with the rules of the Government regarding the Tariffs. One can get more information on the various business Tariffs from the websites of the Government or trade publications. Many booklets are published yearly that outline all the current Tariffs.
The main purpose of the Tariffs
is to control imports and exports. However, these controls may not always work in favor of the businesses. For instance, if a farmer wants to transport his produce from one state to another state he may be asked to first obtain a license from the Tariffs department. The farmers have to pay heavy taxes to the government authorities even though the goods transported may not be that of commercial importance for the farmer.