Customs Tariff in San Diego

Customs tariff in San Diego are an integral component of American trade policy. In basic terms, tariffs are a tax. It adds to the cost of imported goods and is one of the tools used by government officials to regulate trade policy.

Tariffs are primarily used for five principle reasons:

Protect domestic employment – tariffs prevent increased foreign competition. With more competition, domestic companies may be forced to reduce costs and fire workers.

Protect consumers – tariffs are often enacted to protect consumers. These types of tariffs are often used on fruits, vegetables, and meat. If a country has unsanitary process procedures or uses chemicals that are banned in the United States, these products may be subject to customs tariff in San Diego and other ports of entry.

Protect infant industries – tariffs are used to protect newly developing industries and to encourage growth in these industries. These tariffs will create a domestic market for goods by increasing the prices for imported goods.

Retaliation and punishment – tariffs may used against countries who do not play by the rules – either as trading partners or in foreign policy issues.

National security – tariffs are also used in industries that are vital to the defense of the country or crucial to the nation’s national security.

There are a few different kinds of customs tariffs in San Diego that apply to different goods.

Ad Valorem tariffs – this type of tariff is determined by figuring out a specific percentage of a product’s value. Ad Valorem is Latin for “according to value.” The tariff increases the price of imported goods and protects domestic products from being undercut. Different values apply to different categories of products.

Specific tariffs – these are fixed flat fees levied on one unit of specific imported goods. This fee varies according to the type of good being imported.

Non-tariff restrictions – there are other types of barriers used to protect consumer and domestic companies. Licenses are granted by the government and gives a business the right to import a specific type of good. Import quotas restrict the amount of a particular item that can be imported. Local content requirements mandate that a specific percentage of goods be made domestically.

Customs tariffs in San Diego and all ports of entry have both positive and negatives benefits – with tariffs in place the government will receive an increase in revenue and domestic companies will have less competition. However, domestic consumers may experience higher prices and less choice. The effects of tariffs and other restrictions change over time and these barriers to free trade should be used judicially and adjusted to fit changing markets, international competition, and economies. Customs tariffs in San Diego and all United States ports of entry are one important tool in the economic tool box for the United States.

Customs Tariff in San Diego