Origin of Tariff PDF

ORIGIN Mary Rose Faith Alcalde, LCB  The term "tariff" originates from the name of the town Tarifa in southern Spain. The town was named by the Arabs, who are believed to have named if after "Tarif ibn Malik." Tarifa's location near the Strait of Gibraltar made it a key point for controlling...

ORIGIN Mary Rose Faith Alcalde, LCB  The term "tariff" originates from the name of the town Tarifa in southern Spain. The town was named by the Arabs, who are believed to have named if after "Tarif ibn Malik." Tarifa's location near the Strait of Gibraltar made it a key point for controlling the flow of ships and goods between the Mediterranean Sea and the Atlantic Ocean.  Berber military commander led a reconnaissance mission to the Iberian Peninsula in 710 AD, just before the Moorish invasion of Spain his successful expedition to the area resulted in the town being named after him  Tarifa’s location is on a high, easily defensible point near the Strait of Gibraltar, a crucial passage for ships entering or leaving the Mediterranean Sea. When the Moors, who were Muslim rulers from North Africa, founded Tarifa, they likely did not intend to create a system of trade taxation. However, by establishing a settlement at this key location, they set the stage for future practices where those in control of the town could levy charges on passing merchants.  Pirates or racketeers took advantage of Tarifa’s strategic position to extract payments from merchant ships passing through the Strait of Gibraltar. They imposed these fees based on a fixed rate for the goods on board, which came to be known as a "tariff."  DIFFERENT DERIVATION OF As English merchant ships were THE WORD “TARIFF” prominent in Mediterranean trade, the term "tariff" was adopted into French “tarife’ - rate the English language and spread to Spanish “tarifa” - rate book other European languages. Arabic “tariff” - notification In each language, the word evolved Italian “ tariffa” - price list to mean something related to Portugese “tariffa” - schedule pricing or rates.  Regulating Trade Raising Money Tariffs control which products Governments use tariffs to Protecting Local Businesses can enter or leave the collect revenue. By making foreign goods country. more expensive, tariffs help local companies compete better. A. LIST OR SCHEDULE of articles or merchandise with the rate of duty to be paid to the government for the importation or exportation. B. DUTY LEVIED according to such schedule or such duties collectively of one class of articles. C. LAW in which a schedule of duties is fixed and imposed, also the principle in general governing the imposition of duties. Tariff - denotes the list or schedule of commodities with the particular duties or charges upon each noted. Customs - denotes all customary tolls or dues paid by merchants upon commodities on their way to and from the markets. Modern Customs Tariff - a systematic arrangement of customs duties levied on goods when they cross the border of a political unit. Tariff may be divided as to purposes into three categories namely: 1. Revenue Tariff - whose rates of duty are relatively low as that goods maybe readily imported, and duties easily collected. 2. Protective Tariff - whose rates are relatively high to keep certain imports out of the domestic market or to raise domestic price on certain imports so that they may be manufactured profitability at home. In order to protect our local industries that produces the same, like or similar articles and to avoid high competition. 3. Bargaining Tariff - whose schedules include rate designed primarily for bargaining purpose of which contain some general provision for the imposition of higher duties upon products of countries whose tariff policies are considered unsatisfactory or unfair.