High Customs Duty
The high import duties in many countries have been reduced under the former
(GeneralAgreement on Tariffs and Trade) multilateral agreements. The
was formed in Geneva,Switzerland, in 1947 and it was succeeded by the
(World Trade Organization) on January1, 1995. The organization, through multilateral agreements, helps reduce trade barriers betweenthe signatory countries and promotes trade through tariff concessions.
has wide power toRegulate international competition.
Countervailing DutyCountervailing duty
is a duty imposed in addition to the regular (general) import duty, in orderto counteract or offset the subsidy and bounty paid to foreign export-manufacturers by theirgovernment as an incentive to export, that would reduce the cost of goods. Imposing acountervailing duty is the answer to unfair competition from subsidized foreign goods.
is a duty imposed to offset the advantage gained by the foreign exporterswhen they sell their goods to an importing country at a price far lower than their domestic sellingprice or below cost. Dumping usually occurs from the oversupply of goods, which is often a resultof overproduction, and from disposing of obsolete goods to other markets.