ALTERNATIVE TARIFF Meaning and
Definition
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Alternative tariff refers to a different or substitute tariff structure that is implemented as an alternative to the prevailing or standard tariff rates. It signifies a modified or unconventional approach to the levying of taxes or duties on imported or exported goods and services, particularly in the context of international trade.
The notion of an alternative tariff arises when governments or regulatory authorities seek to deviate from the established tariff policies for various reasons. These alternative tariffs may be enacted to promote or protect specific industries, address economic imbalances, foster trade relationships, or generate revenue. They are typically designed to provide incentives or disincentives for specific goods, services, or industries, often diverging from the standard tariff structure.
Alternative tariffs can take different forms, such as preferential rates, trade agreements, exemptions, or targeted tariffs. They may involve varying methodologies for determining tariff rates, such as value-based tariffs, ad valorem tariffs, specific tariffs, or a combination thereof. The purpose of alternative tariffs is to shape trade patterns, encourage or discourage imports and exports, and influence the competitiveness of domestic industries.
These alternative tariff structures often result from negotiations between countries, trade blocs, or regional alliances, leading to the establishment of preferential trade agreements. They serve as a means to offer tariff advantages to specific trading partners or industries to foster economic cooperation and development.
Overall, alternative tariffs represent a departure from conventional tariff practices, enabling countries to pursue specific economic, political, or strategic goals through their trade policies.
Etymology of ALTERNATIVE TARIFF
The etymology of the word "alternative tariff" can be traced back to the Latin origins of both words.
The word "alternative" comes from the Latin word "alternātīvus", which means "pertaining to choices or options". It is derived from the verb "alternāre", meaning "to alternate or take turns".
The word "tariff" has its roots in the Arabic word "ta'rīf" or the Italian word "tariffa", which refer to a list or schedule of taxes or fees imposed on goods or services. These terms were ultimately borrowed from the Arabic "ta'rīf" during the medieval period.
When these two words are combined, "alternative tariff" refers to a different or substitute schedule of taxes or fees that can be chosen as an option.
