Imposition Of Tariffs Research Articles

Legal Certainty for Providing Preferential Tariffs in the ASEAN-China Free Trade Area (ACFTA) Agreement Based on Operational Certification Procedures (OCP) in Tax Court Decisions

The ASEAN-China Free Trade Area (ACFTA) is an agreement made by the member countries of ASEAN and the People's Republic of China with the aim of promoting a stable and harmonious economy through the free flow of goods. ACFTA also supports the idea that barriers to international trade, both tariff and non-tariff, should be reduced or even eliminated, which is known as preferential tariffs. The countries involved in the ACFTA agreement agree that the Rules of Origin (ROO) provisions are necessary to obtain preferential tariffs. ROO establishes three criteria: Origin Criteria, Consignment Criteria, and Procedural Criteria. (Procedural Criteria). The Procedural Criteria are regulated in the Operational Certification Procedures (OCP) in Appendix 1 of Attachment A of Annex 1 ROO. The OCP contains regulations regarding the time for submitting a Certificate of Origin (SKA) in order to obtain a preferential rate. There are parties that think about the implementation of OCP ACFTA in Indonesia, that further regulations on OCP cannot be made without an agreement from both sides to do so. Research conducted using a normative legal approach with data collection methods through literature study, concluded that there are still differences in the application of Operational Certification Procedures (OCP) in the imposition of preferential rates by customs officers and Tax Court judges in the region in resolving disputes regarding preferential tariff. Therefore, adjustments are needed in the legal products regarding the implementation of preferential tariff imposition, as well as an enhancement of legal understanding and reasoning in the Tax Court to provide legal certainty, justice, and benefits for all stakeholders. Keywords: ACFTA, Preferntial Tariff, OCP.

Do Protective Tariffs Influence Firms’ Competitive Stance? Application of a Competitive Leverage Model in The Presence of Simultaneous Equation and Sample Selectivity Bias

ABSTRACT: We propose a Competitive Leverage model, and apply it to analyze the impact of tariffs on the attitudes of domestic import-competing firms, especially regarding their disincentives to maintain a Competitive Stance against foreign competitors in the domestic market. We propose that tariffs are a disincentive to the pursuit and maintenance of production efficiency in firms and industries. When countries implement tariff protection for their domestic firms, the most common excuse sounds reasonable, except that it is also economically flawed. While the short-run impacts of such a measure might seem plausible, its long-term effects appear to be less than favorable, and may, in fact, turn out to be damaging to the economy. The paper applies the competitive leverage concept in a unique way to highlight how tariffs distort the output levels of domestic firms, and gives an empirical analysis of the model, using USA data to verify the predictions of the model. Particularly, we develop a Cournot-competition type Competitive Leverage model, and use it to examine the role played by tariffs as a disincentive to a typical firm’s pursuit and maintenance of production efficiency. The competitive leverage model is formulated and applied to verify the effects of tariff protection from the typical domestic firm’s strategic interaction standpoint. We further apply cross-sectional data to carry out an empirical analysis of the model, to verify how tariffs impact the domestic firm’s output and pricing decisions. Our findings would enable us to contribute to the debate about the need to remove protective tariffs, on the grounds that tariffs do not only enable domestic firms to operate inefficiently, but also tends to distort the output and pricing outcomes that would otherwise have been realized in the free market. The results from the study are used to propose some major policy implications of imposing tariff protection, among which are that there is need for implementation of more deliberately sustained Research and development program on the part of domestic firms in the economy, to enable them withstand vigorous competition in a free-trade world. Also, since protective tariffs significantly increase firms’ profit rates, which in turn enables them to unduly earn and accumulate economic rents that amount to inefficiencies and distortions in free-market prices and quantities outcomes, governments should always resist any pressures from big businesses to impose protective tariffs against competition from international rivals. Yet a clear public policy implication from this paper is that, at the macro level, as the results suggest that a government policy that aims at protecting domestic firms through imposition of tariffs may have an adverse effect on the firms’ competitive stance in the industry, a practical message is for the government to impose only a moderate tariff at the most, if it must, especially as it relates to agricultural products.

The Role Of The Indonesian Government In The Imposition Of Tariffs For Imported & Exported Goods In The Asean Region

This legal research examined the role of the Indonesian government, which is tasked with overseeing the implementation of the import and export tariff system in Indonesia. At this time, with the development of the international market, countries certainly need to tighten their security in order to protect their economic systems by implementing rules that regulate the course of trade, establishing cooperation, and entering into treaties or agreements that will later bind one country to another. The laws that Indonesia has implemented into domestic regulations, such as Law No. 7 of 2014, Law no. 17 of 2006, and Law no. 39 of 2007. This research discussed the impact of implementing the tariff system on Indonesia's export and import trade and current government challenges, such as the development of world globalization, the era of digitalization, and also actions that can be categorized as crimes in the trade sectors. Dumping also occurs in international trade, which can threaten local markets, prompting countries to make agreements to combat dumping practices. The research method used is a normative research method. The approaches used are the Statute Approach and the Analytical Approach, namely, research using legislation, Trade Law Concepts, and also analysis of the implications of Legal principles as a basic reference and analysis of several laws and regulations that regulate this matter.

A Study of Global Trade War and Its Impact on Indian Economy

A Study of Global Trade War and Its Impact on Indian Economy

A Study on the Game Strategy of Chip Price Behavior at the Background of the US-China Trade War

The US-China trade war has had a profound impact on the game strategy and price behavior of chips in the semiconductor industry. This study aims to analyze the influencing factors, strategic shifts, and game theory dynamics of chip prices in the context of the trade war. The asymmetrical relationship between the United States and China in chip supply and demand, coupled with the imposition of tariffs and restrictions, has disrupted the supply chain, which leads to fluctuations in chip prices. The study highlights the artificial inflation of demand and oversupply of certain chip types because of stockpiling and entity list disruptions. It also examines the impact of tariffs on the cost structure of semiconductor manufacturing and the subsequent adjustments in pricing strategies. Furthermore, the study explores the localization strategies and shifts in global semiconductor production that have been prompted by the trade war and their implications on chip prices. Lastly, the study analyzes the repeated game perspective and its influence on the strategic choices and behaviors of the parties involved in the trade war. Overall, this study provides insights into the game strategy and price behavior of chips in the background of the US-China trade war, contributing to a better understanding of the dynamics and implications for the semiconductor industry.

<b>Impacts of Macroeconomic Variables on Foreign Exchange Rate of SAARC Member Countries</b>

Exchange rate (EXR) stability is crucial for especially the developing economies. This study examines the macroeconomic variables which affect EXR in member countries of South Asian Association for Regional Cooperation (SAARC). To do the analyses, data from 1981 to 2019 was relied upon. To estimate the long-run coefficients, Fully Modified Ordinary Least Square (FMOLS) is incorporated. The outcomes of FMOLS exhibit that the variables such as trade, inflation, GDP, total debt services, trade openness, and tariff rate are inversely related to EXR while broad money is found to affect the EXR in positive. As a policy prospect, The Central Bank (CB) is needed to follow tight monetary policy to curtail liquidity of money in economy. It is recommended that CB to discourage government project financing that is to cause increase in money supply but to initiate trend line to facilitate GDP growth, trade, and imposition of tariff to curtail rising EXR.

The Impact of Tariffs on Nigerian Economy (2000-2020)

This study examined the impact of tariffs on Nigeria's economic growth. It examines the extent to which tariffs have contributed to economic growth in Nigeria in 2000-2020. Tariffs, which are a form of tax or trade restrictions imposed on imported goods to discourage fledgling industries from international competition, can boost economic growth. The Ordinary Least Squares regression method was used to analyze the relationship between tariffs and economic growth. An econometric analysis was also used to determine the impact of tariff and other variables such as trade openness and exchange rate on economic growth in Nigeria. The results of the regression result showed that tariffs have a positive, statistically significant impact on economic growth in Nigeria. It was recommended that a trade policy be designed to improve the imposition of tariffs in Nigeria.

Investigating Economic Effects of 2018 Steel Tariff Imposition In USA


 In 2018, the Trump administration imposed a 25% tariff on steel imports from a number of countries. The administration justified this action by referring to section 232 of the 1962 Trade Expansion Act, which allows for the imposition of tariffs for ‘national security reasons.’ While the domestic American steel industry applauded the action, the tariffs have been extremely controversial and elicited consternation among countries and industries negatively affected.
 Overall, the tariffs had an initial positive impact on the steel industry, increasing both employment in American steel-producing firms and increasing prices charged for the high-demand commodity. However, this effect was relatively short-lived and was likely not as pronounced as the Trump administration would have preferred. Meanwhile, steel-consuming industries, such as the automobile industry, saw a steep rise in prices, a loss of competitiveness, and a significant drop in employment rates. Given that substantially more labor is employed in the steel-consuming industry as compared to the steel-producing industry, those negatively impacted by the use of tariffs significantly exceeded those who benefitted from them.
 Beyond the direct impacts on steel-producers and steel-consumers, the 2018 tariffs also had the effect of provoking retaliatory tariffs on a variety of American industries, which created to a phenomenon known as ‘cascading protection’ as ever more domestic industries, which experienced a loss of competitiveness as a result of the tariffs, lobbied the administration for the imposition of further tariffs.

Persepsi Industri Chalodo Sibali Resoe Terhadap Penerapan Tarif Pajak Pada UU No. 7 Tahun 2021

This study aims to determine the perceptions of the Chalodo Sibali Resoe Industry regarding the imposition of the new tax rate under the HPP Law, that is, if an individual MSME taxpayer has a gross turnover of less than Rp500,000,000.00 per year, the taxpayer is not subject to the MSME final PPh rate. The method used in this study uses qualitative methods, where the respondents of this study are accountants from the Chalodo Sibali Resoe Industry. After conducting research, the results obtained were that the Tax Service Office (KPP) had not conducted a thorough outreach and only discussed the applicable rates. Regarding the imposition of tariffs, it has a positive impact on the finances of the Chalodo Sibali Resoe Industry.

Tariff pass-through and implications for domestic markets: Evidence from U.S. steel imports

Recent studies report that during the U.S. trade war, the overall burden of tariffs has entirely passed on to U.S. firms and consumers in terms of higher import prices, but the pass-through is incomplete in the case of steel products. Using 10-digit import data from U.S. Customs for 2018–2019, contrary to the recent literature, we find that import tariff pass-through is complete for steel products. We also find significant and large supply chain adjustments following the imposition of tariffs. However, despite the supply chain adjustments, the overall imports of steel products, which moved in tandem with domestic steel consumption over the last ten years, exhibited a declining trend. The overall steel imports declined from 34.5 in 2017 to 26.3 million metric tons in 2019. During the same period, domestic production increased from 81.6 to 87.9 million metric tons, almost equal to the peak production the U.S. achieved in 2012 and 2014.

Recent evolution of wine exports in a turbulence period: a multiregional input–output analysis

This study focuses on analysing the economic impact (in value-added terms) generated by Spanish wine exports during the period 2018–2020, characterized by significant geopolitical changes and market shocks produced by Brexit, the entry into force of the Federal Law on Viticulture and Winemaking in the Russian Federation, the imposition of tariffs by the USA and the COVID-19 pandemic. For this purpose, the multiregional input–output model was used to identify the overall effects (direct and indirect) in different countries deriving from the changes in final demand. The paper shows that both the world wine trade and Spanish wine exports have been negatively affected by the recent changes in the analysed period. It is estimated that the accumulated losses since 2018 as a result of the decrease in the value-added generated by Spanish wine exports exceed 300 million euros. In addition, the results suggest that the negative effects of COVID-19 are greater than the effects caused by the rest of the geopolitical changes.

Intellectual property rights and us-china trade relations, 2016-2022

Over the years, global politics has revolved around economic control to seize power and determine who gets what, when and how. This is not farfetched in the global politics between the United States and China glaring trade war that is aimed at dominating and maintaining global relevance. On this note, this study examined Intellectual Property Rights and the US-China Trade Relations between 2016 and 2022. The study specifically investigated the US theft claim of Trade Secrets and violation of trade agreement by China and the US Trade Representative Office imposition of tariff on imports from China. The Neo-realist Paradigm, as articulated by Kenneth Waltz was adopted as a framework of analysis, with its basic assumptions revealing that: firstly, the global system is viewed as completely and always anarchic, and war is a possibility at any time. Secondly, States tends to seek for their own survival as this is a requirement to pursue other goals. Thirdly, States are deemed similar in terms of needs but not in capabilities for achieving them. The study employed the documentary method of data collection and analysed the generated data using content analysis, while the time series research design was adopted. Our findings revealed that the US government has not been able to adequately establish China’s violation of trade agreement especially the originality of claimed Trade Secrets theft by China; also, the US government has not been able to adequately gain dominance despite their strict trading measures on the Chinese government as China still holds a significant value in global economic order and still a major threat to US relevance and dominance. The study therefore, strongly recommends a strict adherence to the provisions of the Trade-related Aspects of Intellectual Property Rights (TRIPS) Agreement by both parties as established by the World Trade Organisation and the World Intellectual Property Organisation.

The impact of Sino-US trade conflict on Chinese Manufacturing: Evidence from Time Series Model

In April 2018, the trade conflict between China and the United States broke out, and major economic markets in China were hit. As an industry that dominates China's stock market, China's manufacturing industry's index fluctuations are enough to attract attention. It is even related to whether the Chinese government needs to implement corresponding strategies for it. In order to explore the impact of the Sino-US trade conflict on China's manufacturing market, this paper uses GARCH and ARMA-GARCH model to estimate this shock. From the estimation results of exogenous variables, it can be seen that in the long term, the US imposition of tariffs on China has no significant positive impact on the volatility of China's manufacturing industry. These results prove that China's economy still has a considerable degree of anti-risk capability in the long term in the face of external shocks. Therefore, the Chinese government does not need to worry too much about the impact of tariff increases on Chinese manufacturing.

China–US economic and trade relations, trade news, and short‐term fluctuation of the RMB exchange rate

AbstractThe trade war between the US and China affects the fluctuation of RMB exchange rate. We collect news on China–US trade policies and talks from January 2017 to July 2020. Results show that China–US dialogue and tariff imposition have the greatest impact on the percentage of RMB appreciation and depreciation. Additionally, tariff relaxation and increasing enterprise restrictions can cause a sharp appreciation and depreciation. “Policies” events and trade news from the US influence RMB fluctuations the most significantly. Finally, positive events cannot significantly cause RMB appreciation, but negative events can significantly cause RMB devaluation.

Fungsi Pengawasan Dinas Perhubungan dalam Penertiban Tarif Angkutan di Provinsi Bali

Public transportation is one part of the transportation sector that is widely used by the Balinese people. An important component in the operation of public transportation that must be considered is the determination of tariffs. The purpose of the study was to analyze the mechanism for controlling public transport fares by the Bali Provincial Transportation Service and to examine the obstacles during the implementation of controlling public transport fares in the Province of Bali. The research method in this paper uses empirical research using a sociological approach and a conceptual approach. The results show that the Government has limited authority in setting tariffs. The authority for public transportation rates for people in Bali Province includes online transportation, conventional taxis, and AKDP transportation. As a result of the pandemic, most entrepreneurs in the transportation sector have lost, this is a factor in the existence of fraud in the imposition of tariffs. In addition, the lack of PPNS personnel and the unavailability of special tools to read barcodes are also obstacles. The Department of Transportation is advised to review comprehensive tariff rules, as well as add PPNS members, and immediately budget for the availability of sophisticated equipment in order to overcome the obstacles that occur.

Trade potential of Pakistan with the South Asian Countries: A gravity model approach

The current study investigates the trade potential of Pakistan with South Asian countries using an augmented Gravity Model approach. The model used latest ESCAP dataset with base year 2016. Results show that simple average tariff imposition and GDP of partner countries positively impact the trade value of Pakistan, whereas simple average tariff imposition bilaterally harms the trade volume of the reporting country. Statistically, a one percent change in the tariffs rate will decrease 0.3 percent in Pakistan's total trade. Moreover, a one percent increase in the GDP of the partner countries will increase Pakistan's total trade by 0.5 percent. We also found that common language, landlocked, and distance significantly impact Pakistan's total trade. This research recommends South Asian countries to revise the tariff rates and other non-Tariff barriers to boost trade and connectivity for the better future of the inhabitants of South Asian countries.

Analisis faktor-faktor yang mempengaruhi ekspor minyak kelapa sawit Indonesia ke Uni Eropa

The objectives of this study are 1) to know and analyze the contribution of the Volume of palm oil exports to the European Union to the total exports of Indonesian palm oil in 2000-2019. 2) to analyze the effect of production, CPO prices, exchange rates, and EU policies on the Volume of Indonesian palm oil exports to the European Union in 2000-2019 and 3) to describe the EU's policies on Indonesian palm oil exports. The model used in this study is a multiple linear regression model. The t-test results show that partially the production, CPO price, exchange rate, and EU policy affect Indonesian palm oil exports to the European Union. The policy set by the European Union for Indonesia's palm oil exports is the Renewable Energy Directive (RED) policy which limits the export of palm oil-based biofuels and the imposition of tariffs on Indonesia's biodiesel exports to the European Union.

Decision-Making of Transnational Supply Chain Considering Tariff and Third-Party Logistics Service

Countries’ economic policies, such as tariff barriers, have a profound impact on the global economy and international trade. The imposition of tariffs seriously disturbs the global trade and supply chain operations. This paper studies a supply chain composed of an overseas manufacturer, a domestic supplier and a third-party integrated international logistics service provider. A three-level decentralized leader-follower decision-making model and its variant--leader-follower alliance decision-making models are established, and the influences of revenue sharing and cost sharing on the three-level decentralized decision-making are analyzed. The results show that it is difficult for the supply chain to achieve coordination when the transportation and insurance costs are considered in the tariff cost. The increase of tariff rates will reduce the profits of all parties and the overall profit of the supply chain, and weaken the dominant position of the supplier in the supply chain. Revenue sharing can improve the supply chain performance; the performance of the whole supply chain cannot be improved or may even deteriorate by sharing the transportation cost alone. The study can provide practitioners with implications for how to carry effective cooperation and coordination in the supply chain and how to effectively reduce the influence of tariffs in the global trade system.

What lies beneath the ‘tariff man’? The Trump administration’s response to China’s ‘state capitalism’

ABSTRACT The election of Donald Trump in 2016 marked the beginning of a new chapter in US–China relations. His administration’s imposition of tariffs and high-level trade negotiations captured the most attention and headlines. But these attempts to coerce China into breaking down key pillars of its ‘state capitalist’ developmental model have been only one, outward-facing element of his administration’s response to China’s growing economic and military strength. This article focuses on three inward-facing policy areas, the politics of which have been shaped by China’s rise and the evolution of the US economy: (1) the governance of inward foreign direct investment; (2) government procurement and local content requirements; and (3) state projects to promote new technologies and domestic productive capabilities. It finds evidence of modest reforms of government regulations and limited expansions in state capacity but that these may prove to be more significant in the long term.

A Study on the Theoretical Framework of Discourse Analysis of China’s Response to Sino-US Trade Frictions

This paper selects the reports on Sino-US trade friction published by People’s Daily from August 2, 2019, when the United States announced that it would impose tariffs on Chinese goods exported to the United States, until the end of September 2019. Based on Zang Guoren’s news framework theory, this paper used the method of content analysis and framework analysis to analyze the four aspects of news source, reporting theme, schema structure, and reporting tendency. This paper analyzes the characteristics of the news framework constructed by People’s Daily under the publication strategy of Sino-US trade friction news reports. People’s Daily constructs the basic framework of news report with the main body showing the evaluation of China’s tariff increase policy of the United States. The theme of this paper is to focus on the ways in which China’s mainstream media People’s Daily reports Sino-US trade frictions, and find out the fundamental differences between China and the United States in the process of analyzing relevant news reports. People’s Daily attaches great importance to the expression of Chinese speech position in terms of news report selection strategy, focusing on dialogue, cooperation, and discourse communication, supplemented by criticism and refutation, focusing on the future prospects of Sino-US economic and trade relations, and emphasizing “speech communication” more than “counter action.” The related reports on Sino-US trade frictions in People’s Daily retrieved in this paper reflect China’s strong confidence in its own economic development strength in the face of the trade crisis brought about by the arbitrary imposition of tariffs by the United States. It also emphasizes the principle of “reasonable, advantageous, and prudent” adopted by China’s counter-measures, highlighting China’s desire to actively engage in equal and effective dialogue with the U.S., and expressing the Chinese government’s willingness to actively resolve Sino-US trade frictions under the premise of “mutual benefit and win-win results.”