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trade tariffs

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  • 25-02-2019 3:36pm
    #1
    daheff
    Registered Users Posts: 5,834 ✭✭✭


    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?


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    #2
    Mach 3
    Registered Users Posts: 233 ✭✭Mach 3


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

    Customs?


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    #3
    daheff
    Registered Users Posts: 5,834 ✭✭✭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...


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    #4
    Mach 3
    Registered Users Posts: 233 ✭✭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.


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    #5
    Geuze
    Registered Users Posts: 13,068 ✭✭✭✭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.


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    #6
    Geuze
    Registered Users Posts: 13,068 ✭✭✭✭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?


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    #7
    daheff
    Registered Users Posts: 5,834 ✭✭✭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?


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    #8
    Geuze
    Registered Users Posts: 13,068 ✭✭✭✭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.


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