trade tariffs

daheff

So question for everybody


If there are trade tariffs imposed on goods as a result of Brexit (or US/China trade war) - who collects the tariffs?

Mach 3

https://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp

Customs?

daheff

Mach 3 wrote: »

https://www.investopedia.com/articles/economics/08/tariff-trade-barrier-basics.asp

Customs?

Thats what I'm thinking.

Who pays the tariff then....the buyer? So the net loser in all of it is the domestic customer? Either now buy at a higher price or cannot buy at all.

Importer will sell less goods because price is higher in the importing country. Means less sales.
Anybody who still wants to buy will pay a higher price for the goods.
Granted there is now less of a transfer of money between countries.

Forgive my ramblings...

Mach 3

No such thing as ramblings in my books! You are now asking about supply and demand, exchange rate, etc.
Read the link and click on all the sub links, and you will get a general understanding.

Geuze

daheff wrote: »

So question for everybody


If there are trade tariffs imposed on goods as a result of Brexit (or US/China trade war) - who collects the tariffs?

The Irish Revenue/Customs collects customs duty on non-EU imports.

We keep back 10% or 20% as a collection fee, and remit the rest to the EU.

Customs duties are one of the sources of revenue for the EU.

Geuze

daheff wrote: »

Who pays the tariff then....the buyer? So the net loser in all of it is the domestic customer? Either now buy at a higher price or cannot buy at all.

Importer will sell less goods because price is higher in the importing country. Means less sales.
Anybody who still wants to buy will pay a higher price for the goods.
Granted there is now less of a transfer of money between countries.

Forgive my ramblings...

Who actually pays the any tax is known as who bears the incidence of a tax.

The incidence of a customs or excise duty depends on the elasticity of demand and supply for the goods.



Ask yourself: who pays corporation tax?

daheff

Geuze wrote: »

The Irish Revenue/Customs collects customs duty on non-EU imports.

We keep back 10% or 20% as a collection fee, and remit the rest to the EU.

Customs duties are one of the sources of revenue for the EU.

Thats an interesting point. So what does the EU do with the customs duties? I guess goes into the pot?

Geuze

YES, 15% of EU income is customs duties.

https://ec.europa.eu/taxation_customs/facts-figures/customs-duties-mean-revenue_en

25 billion less 5 bn kept by collecting nations =

20 billion to the EU.