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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. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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More generally, contingent protection might facilitate reductions in bound tariff rates, because contracting parties know in advance that they have a "safety valve" in case the bound tariff rates become excessively politically costly in the future (p. Market Access Map includes information about MFN applied customs duties as well as multilateral, regional and bilateral preferences; bound tariffs and quotas; anti-dumping duties; rules and certificates of origin; and trade flows. Some governments have raised applied tariff rates closer to their bound tariff rates as allowed in their tariff schedule, but no government has declared that the emergency is a reason to exceed bound tariff rates. |
Bound Tariff |
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