BAFIN ( CHAPTER 03 )

• Tariffs 

  • are the oldest and simplest instrument of trade policy.
• Tariffs 

  • tax levied on imports and exports.
• Specific tariffs

  •  are levied as a fixed charge for each unit of a good imported. 
• Ad valorem tariffs

  are levied as a proportion of the value of the imported good.
• Export tariffs 

  • are less common than import tariffs
  • have two (2) objectives: first, to raise revenue for the government, and second, to reduce exports from a sector.
  • a tax placed on the export of a good.
• Export ban

  •  is a policy that partially or entirely restricts the export of a good.
• Subsidy 

  • is a government payment to a domestic producer.
• Subsidy 

  • Cash grants, low-interest loans and tax breaks.
  • help domestic producers in two ways: (1) competing against imports and (2) gaining export markets.
• Tax Credit 

  • Amount subtracted to the taxes that an individual where supposed to pay
• P.D 1789 Omnibus Investments Code 

  • provides a variety of investment incentives only to registered enterprises for the purpose of accelerating development of the economy of the Philippines.
• Import quota

  •  is a direct restriction on the quantity of some goods that may be imported into a country.
• MFN

  Most Favored Nation of of WTO and are free from tariff restriction
• Sensitive Goods 

  • Corn, coffee, pork, rice, sugar, meat, etc.
• ISI 

  • Import Substitution Industrialization 
  • They levied tariff
• Local Content Requirement 

  •  is a requirement that some specific fraction of a good is produced domestically.
• Administrative trade policies 

  • are bureaucratic rules designed to make it difficult for imports to enter a country.
• Tariff Rate Quota

  • Mixed of tariff and quota
  • a lower tariff rate is applied to imports within the quota than those over the quota.
• Free trade 

  • as government policy was first officially embraced by Great Britain in 1846 when the British Parliament repealed the Corn Laws.
• Adam Smith

  • Father of Modern Economics
• TPP

  •  Trans Pacific Partnership
• Physical Terms 

  • 75% of the parts for this product is produced domestically 
• Value Terms 

  •  75% of the monetary value for this product is produced domestically 
• Buy America Act 

  • 51% of the value of product should be assembled or produced in America for it to be made  in America