Trade Barriers Tariff – direct tax on imported goods
{"Image DocumentName": "Trade Barriers Tariff \u2013 direct tax on imported goods", "Image ImageDescription": "Nontariff barriers. quotas. voluntary export restraints. government import standards. subsidies. customs classification. Historically, governments have actively used trade barriers to make it much more expensive or difficult (or sometimes impossible) for consumers to buy or consume imported goods. Quotas are specific limits on the number or volume of imported products. For example, China has an annual limit of 20 foreign films that are allowed to be released in Chinese movie theaters. Like quotas, voluntary export restraints limit the amount of a product that can be exported annually. The difference is that the exporting country rather than the importing country imposes restraints. In theory, government import standards are established to protect the health and safety of citizens. In reality, such standards are often used to restrict or ban imported goods. Many nations also use subsidies, such as long-term, low-interest loans, cash grants, and tax deferments, to develop and protect companies in special industries. Not surprisingly, businesses complain about unfair trade practices when foreign companies receive government subsidies. The last type of nontariff barrier is customs classification. As products are imported into a country, they are examined by customs agents, who must decide into which of nearly 9,000 categories they should classify a product (see the Official Harmonized Tariff Schedule of the United States at  for more information). Classification is important because the category assigned by customs agents can greatly affect the size of the tariff and whether the item is subject to import quotas \u00a9 2014 Cengage Learning.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}