What is a Discriminatory Tariff? A Legal Perspective
Definition & Meaning
A discriminatory tariff is a type of tax imposed on goods imported from different countries at varying rates. This means that certain countries or manufacturers may face higher duties than others when exporting their products to a specific market. The purpose of such tariffs can vary, including protecting domestic industries or retaliating against unfair trade practices.
Legal Use & context
Discriminatory tariffs are primarily used in international trade law. They can impact various legal areas, including trade agreements, customs regulations, and international relations. Businesses may encounter these tariffs when importing goods, and understanding their implications is crucial for compliance. Users can manage some aspects of this issue using legal templates from US Legal Forms, particularly those related to customs declarations and trade agreements.
Real-world examples
Here are a couple of examples of abatement:
For instance, if Country A imposes a 10 percent tariff on imports from Country B but a 25 percent tariff on imports from Country C, this creates a discriminatory tariff situation. (hypothetical example)