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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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.
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.
Reductions in tariffs from bound rates, or from twice the applied most favoured nation (MFN) rate in the case of unbound tariffs;
However, considering that the bound rates are significantly higher than the applied rates, the market access remains somewhat uncertain.
The comparison of average applied and bound rates in pre-Uruguay round outlined in Table 1 is quite revealing.
For example, the data to be used include the applied levels of tariffs rather than the bound rates.
In all cases, reductions are made from applied tariff rates (since it is those that are included in the database) rather than the bound rates that are specified in the 'July framework' text.
Tariff reductions were modelled in this study from applied rather than bound rates, so could over-estimate the extent of actual tariff reductions.
However, the WTO allows countries to continue offering some measure of protection to these sensitive industries through the replacing of these licences with bound rates, simply referred to as duty rates, which are difficult to change.
For developed countries, the bound rates are to be reduced by 36% over a six-year period (1995-2000), whereas a 24% decline over a ten-year period is allowed for developing countries (1995-2004).
For a majority of industrial products, the bound rates are higher than the current applied 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.