Bound Rate

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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The Government of Pakistan protects producers from imports with a tariff of 60 percent on imports, still well below the World Trade Organization bound rate of 150 percent, which is the tariff ceiling for wheat imports," the USDA said.
The bound rate for rice imported into the country shall be set as follows: 35 percent for rice importations originating from ASEAN member-states, in consonance with the ASEAN Trade in Goods Agreement (ATIGA); 40 percent MFN rate for importation within the 350,000 MT MAV from Non-ASEAN WTO member countries; and 25 percent MFN out quota rate," he said.
The bound rate for rice imported into the country shall be set as follows: 35 percent for rice importations originating from ASEAN member-states, in consonance with the ASEAN Trade in Good Agreement (ATIGA); 40 percent MFN rate for importation within the 350,000 MT MAV from Non-ASEAN WTO member countries; and 180 percent MFN out quota rate.
The current 100 per cent import duty across the GCC is set at the bound rate for both Bahrain and Kuwait.
The present import duty is 50 percent which is also the bound rate of duty agreed in WTO.
Japan's bound rate would have to have been cut by more than half before URAA implementation would have any real effects on market access.
Egypt has hiked the import duty on cotton textile from India to 30 percent against the 15 percent bound rate at WTO.
Spirits will remain subject to a basic customs duty of 150%, while the duty on wine will be increased from 100 percent to 150 percent, the WTO's bound rate.
An important issue in the industrial tariff negotiations is whether such negotiations should cover bound rate only or both the bound and the applied rate.
They also reported, however, that many developing countries and most developed countries tend to apply tariffs at the bound rate.
The article also finds that the new bound rate system, which was intended to increase the transparency of Barbados's trading regime, may in the long run result in the closure of a number of import-substitution firms.
The bound rate may represent either a reduced rate or a commitment not to raise the existing rate or a ceiling binding.