Warning
Info
Warning
Info
Simple English definitions for legal terms
common external tariff
Read a random definition: registration
A quick definition of common external tariff:
Common External Tariff: A common external tariff is a tax that is imposed on goods imported from outside a group of countries that have agreed to apply the same tariff rates. This means that all member countries of the group will charge the same amount of tax on goods coming from outside the group. The purpose of a common external tariff is to create a level playing field for trade among member countries and to protect their domestic industries from unfair competition from imports.
A more thorough explanation:
COMMON EXTERNAL TARIFF
A common external tariff is a tax on goods that is applied uniformly by a group of countries to imports from countries outside of that group. It is designed to protect domestic industries and create a level playing field for trade among member countries.
For example, the European Union has a common external tariff on goods imported from countries outside of the EU. This means that if a product is imported into any EU country from a non-EU country, it will be subject to the same tariff rate regardless of which EU country it enters.
Another example is the Southern African Customs Union (SACU), which has a common external tariff on goods imported from countries outside of the SACU. This means that if a product is imported into any of the SACU member countries (Botswana, Lesotho, Namibia, South Africa, and Eswatini) from a non-SACU country, it will be subject to the same tariff rate regardless of which SACU country it enters.
The examples illustrate how a common external tariff works in practice. By applying the same tariff rate to imports from non-member countries, member countries can prevent one country from gaining an unfair advantage over another. This helps to create a level playing field for trade among member countries and protects domestic industries from foreign competition.