Basic Tariff analysis Tariffs can be classified as. Specific tariffs Taxes that are levied as a fixed charge for each unit oI goods importe Example: A specific tariff of S10 on each imported bicycle with an international price ofs100 means that customs officials collect the fixed sum ofs10 Ad valorem tariffs Taxes that are levied as a fraction of the value of the imported goods Example: A 20% ad valorem tariffon bicycles generates a S20 payment on each $100 imported bicycle Copyright C 2003 Pearson Education, Inc Slide 8-6Copyright © 2003 Pearson Education, Inc. Slide 8-6 Basic Tariff Analysis ▪ Tariffs can be classified as: • Specific tariffs – Taxes that are levied as a fixed charge for each unit of goods imported – Example: A specific tariff of $10 on each imported bicycle with an international price of $100 means that customs officials collect the fixed sum of $10. • Ad valorem tariffs – Taxes that are levied as a fraction of the value of the imported goods – Example: A 20% ad valorem tariff on bicycles generates a $20 payment on each $100 imported bicycle