There are no tariffs on trade between the countries of the European Union, which since 1967 has applied a uniform rate of tariffs externally, and since July 1, 1968 has abolished tariffs and quotas on goods between member states and established a customs union.
The customs union between different countries, although in the content of the form of many similarities, but the customs union concluded between developing countries and the customs union concluded between developed countries are not the same in nature.
The former is of a defensive nature; while the latter is of a competitive nature, the purpose of which is to enable the countries participating in the alliance to be in an advantageous position in the fierce trade war for international markets.
Expanded Information
But as world trade continues to grow, tariffs are declining as a proportion of national revenues. Every country levies a certain amount of tax on imported and exported goods depending on their type and value.
The role is to raise the price of imported goods through the collection of taxes, reduce their competitiveness in the market, and reduce the negative impact on the products of the country in the market. Tariffs have the role of protecting the domestic production industry, but in the era of economic globalization and its adverse effects are gradually emerging. The main impact is on the employment rate.
Tariffs are collected as follows:
1. Ad valorem tariffs
Tariffs are collected according to the price of imported and exported goods as a standard. Ad valorem tariff = total price of goods * ad valorem tariff rate
2, ad valorem tariff
according to the unit of measurement of the quantity of imported and exported goods (such as "tons", "boxes", "hundreds", etc.) levied quantitative tariffs. "Quantitative tariffs. Quantitative tax amount = the number of goods * per unit of quantitative tax
3, mixed tariff
according to the various needs of imported and exported goods, ad valorem, quantitative mixed taxation.
4, selective tariff
The same goods in the tariff rule provides for two kinds of tariffs, ad valorem, in the tax levied on the choice of which levies a greater amount of tariffs, but also can be selected for the lesser amount of a tax for the taxable standard levy.
5, sliding tariff
The tariff rate with the price of imported goods from high to low and from low to high set tax. It can play a role in stabilizing the price of imported goods.
Baidu Encyclopedia - European Union
Baidu Encyclopedia - Tariffs