Tariff Anomaly

Tariff Anomaly

A situation in which the tariff on raw material imports is higher than the tariff on finished products made from those raw materials. Tariff anomalies are unusual and may encourage import of finished products, which may hurt manufacturing in the importing country.
References in periodicals archive ?
0000 (printed publications) is being imported at ZERO rated customs duty, sales tax and withholding tax, which creates a chaotic tariff anomaly to extreme detriment of the printing industry.
There is currently a serious tariff anomaly whereby PSF blended yarn has zero percent import duty, but the import of PSF as raw material is subjected to a punitive regime of 4.
He further said that there is currently serious tariff anomaly whereby PSF blended yarn has 0% import duty but the import of PSF as raw material is subjected to a punitive regime of 4.
To resolve these difficulties a high powered Tariff Anomaly Committee was set up by the government.