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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The lower house has set the bound tariff rate for rice imports outside the minimum access volume (MAV) at 180 percent.
Each WTO member country has bound tariff rates and they cannot raise tariff rates higher than they have pledged," Choi Nak-gyoon, a senior research fellow at the Korea Institute for International Economic Policy, said.
Specifically, we instrument tariffs by the bound tariff rates, which are prescribed by the WTO and should be exogenous, and by the lagged tariffs, which are predetermined and should be uncorrelated with current shocks in industry value added.
The tariff is well below Pakistan's bound tariff rate (the maximum tariff rate Pakistan can establish) for wheat of 150 per cwt.
Summing over tariff lines we observe a higher average MFN and higher average bound tariff rates on agricultural commodities.
As part of the Uruguay Round Agreement on Agriculture, countries were to remove trade restrictive nonscience-based SPS barriers and set bound tariff rates--maximum level of tariffs--along with a phase-in period, ranging from six to ten years, depending on the defined level of development of a certain country, to gradually reduce tariff levels (FASFACT SHEET: Sanitary and Phytosanitary Measures and the World Trade Organization, 2006).
According to the Geneva-based organisation, Russia will apply a final bound tariff of 7.
Frequently the bound tariff rates are higher than the actual or applied
Pakistan's bound tariff providing upper limited on import tariffs is 102 % on average; however, applied rates on the import of agriculture items are much lower.
For example, Japan's average bound tariff rate on bovine meat imports was 46.
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.
The agency said India's bound tariff rates on farm products--the maximum rate allowed by the WTO--average 114 percent , among the highest in the world.