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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We note with great concern the Secretariat's assessment that nearly 50% of Kyrgyzstan's bound tariffs do not align with the Customs Union and would require re-negotiation and compensation to WTO Members," the Attache concluded.
average of post-Uruguay Round bound tariffs for all developing
continued with nearly the same overall average bound tariff level on
Even though the average bound and applied tariffs for the developing countries as noted earlier were similar, bound tariffs are significantly higher than the applied rates for most of the products and across the developing countries.
So far, five proposals have been tabled: (i) multiplying the MFN applied rate of 2001 by two; (ii) marking-up unbound lines by a factor to be negotiated, and binding tariff lines at an average level after the application of the formula (the ABI proposal); (iii) capping of new bound tariffs at a ceiling of 40 percent with target average of 25 percent and no tariff reductions in this round for new tariff bindings (Malaysia); (iv) the "Rational Formula" approach of a non-linear mark-up derived through a mathematical formula using two coefficients (Mexico); and (v) non-linear mark-up adding 5 percentage points (absolute) to each unbound rate (the CHNN proposal by Canada, Hong Kong, China, New Zealand, and Norway).
At the commodity level, global average bound tariffs exceed 80% for dairy products and frozen meats.
2001 report that most developed countries tend to apply tariffs at the bound rate), rather than in those OECD countries which tend to have the highest bound tariffs.
The UR Agreement on Agriculture led to the conversion of non-tariff agricultural import barriers into bound tariffs, and those bound tariffs, together with subsidies to farm production and exports, have been scheduled for phased reductions.
The USTR contemplates not only exceeding its authority but violating two of the country's most substantive obligations under the GATT -- the requirement to provide most favored nation treatment for all imports and the obligation not to increase bound tariffs.
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.
Virtually all imports of industrial products into the developed economies ($737 billion) and of the transition economies ($35 billion) will enter under bound tariffs after the Uruguay Round, as well as more than three-fifths of the $352 billion in imports into developing economies.
According to JAMA, in proposing this amendment the House committee has proposed violations of the General Agreement on Tariffs and Trade (GATT) articles, specifically provisions prohibiting GATT- bound tariffs from unilateral increases; the fundamental principals of "most favored nation" status; and the equal-treatment provisions of the U.