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Bound Rate

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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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While hotels cannot afford to broadcast dirt cheap rates to the public at large since this will affect future revenue opportunity, they leak this availability to hotel sites which can then pass along the benefit to the travelers in the form of special time bound rates.
Under WTO rules, this means that the tariff applied to imports from any WTO members cannot exceed the bound rate.
Egypt has hiked the import duty on cotton textile from India to 30 percent against the 15 percent bound rate at WTO.
 
 
 
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