Bound Rate

Bound Rate

A tariff, expressed as a percentage of the value of an import, that a country has agreed to levy on goods from another country. The tariff may not rise above the bound rate as long as the relevant treaty remains in force. It is also called a bound tariff or tariff binding. See also: World Trade Organization.
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The current 100 per cent import duty across the GCC is set at the bound rate for both Bahrain and Kuwait.
The present import duty is 50 percent which is also the bound rate of duty agreed in WTO.
Egypt has hiked the import duty on cotton textile from India to 30 percent against the 15 percent bound rate at WTO.
Spirits will remain subject to a basic customs duty of 150%, while the duty on wine will be increased from 100 percent to 150 percent, the WTO's bound rate.
An important issue in the industrial tariff negotiations is whether such negotiations should cover bound rate only or both the bound and the applied rate.
They also reported, however, that many developing countries and most developed countries tend to apply tariffs at the bound rate.
The article also finds that the new bound rate system, which was intended to increase the transparency of Barbados's trading regime, may in the long run result in the closure of a number of import-substitution firms.
Better profile customers at the outset, offer more options so that they self select correctly, and ask the right questions so the initially quoted and final bound rates are consistently close.
For a majority of industrial products, the bound rates are higher than the current applied rates.
The United States also has complained that the additional and extra additional taxes also apply to other imports from the United States such as dairy products and, in some cases, also result in charges that exceed India's WTO bound rates.
USTR also noted that the additional duty and extra additional duty also apply to other imports from the United States such as dairy products and, in some cases, also result in customs duties that exceed India's WTO bound rates.