ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments.

Detailed explanation-2: -tariff, also called customs duty, tax levied upon goods as they cross national boundaries, usually by the government of the importing country.

Detailed explanation-3: -A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products.

Detailed explanation-4: -A tariff is a tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services.

Detailed explanation-5: -The English term tariff derives from the French: tarif, lit. ‘set price’ which is itself a descendant of the Italian: tariffa, lit. ‘mandated price; schedule of taxes and customs’ which derives from Medieval Latin: tariffe, lit. ‘set price’.