Import tariffs

In several articles we have briefly mentioned tariffs. However, many people need us to explain in more depth what they are and how they work in order to import from China.

A tariff is a tax that is applied to a product when we import or export it (the second case is uncommon). A good is not considered to have entered the economy of a country until it has paid its corresponding tariff. Otherwise it is considered smuggling.

In a world where trade was completely free, there would be no tariffs, since the tariff is a protectionist measure. When a tariff is applied to an imported product, it loses competitiveness in the domestic market.
This is usually done to protect industries or products of the importing country from external competition that could be potentially destructive. It is especially important for strategic sectors whose collapse would cause job losses.
The opposite case occurs when a good is scarce in a country. In this case, tariffs are usually lowered or eliminated to encourage the entry of the product.

There are three types of tariffs:
-Ad-valorem. The most common; it is a percentage of the value of the product.
-Specific. Its value depends on the weight or volume of product.
-Mixed. A weighted combination of the previous two.

Each product has an HS code. It is a number that indicates in great detail which category it belongs to (textile, food, etc.). This code is what is used to calculate its tariff.
Here is a page where you can see what each digit of the code corresponds to:

->Page with all HS codes<-

I hope it has been useful. Don't hesitate to ask your questions in the comments.

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