A tariff is a tax on imports or exports (trade tariff) in and out of a country.

The word comes from the Italian word tariffa "list of

prices, book of rates," which is derived from the Arabic ta'rif "to notify or announce."
Government often impose taxes:
To protect fledgling domestic industries from foreign competition.
To protect aging and inefficient domestic industries from foreign competition.
To protect domestic producers from dumping by foreign companies or governments. Dumping occurs when a foreign company
charges a price in the domestic market which is "too low".
A foreign tariff raises the costs of domestic producers which causes them to sell less in those foreign markets.
Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally-produced goods over similar
goods which are imported, and they raise revenues for governments.
Customs Duty is a tax levied on imports (and sometimes on exports) by the customs authorities of a country to raise state
revenue, and/or to protect domestic industries from more efficient or predatory competitors from abroad. Also called tariff, duty
is based generally on the value of goods (called ad valorem duty) or upon the weight, dimensions or some other criteria of the
item.
Types of Duty
Import Duty
All imported goods for consumption are subject to the payment of import duty prior to release of unless otherwise exempted in
accordance with law by the Department of Finance.
Value Added Tax (VAT)
All imported goods are also subject to the payment of VAT at the uniform rate of 10% of the total landed cost. Even if the
shipment is duty free, it may still be subject to VAT.
Ad Valorem Tax
A few commodities, like passenger automobiles, jewelry, alcohol, tobacco, etc. may also be subject to the payment of Ad
Valorem Tax aside from the import duty and VAT. The rate of Ad Valorem Tax depends on the make-up of the commodity such
as the engine displacement cost in case of automobiles, or alcohol content in case of beverages.
Like VAT, Ad Valorem Tax is an internal revenue tax, the collection of which is delegated to the Bureau of Customs in so far as
imported goods are concerned. Imported goods subject to Ad Valorem shall be covered by an Authority to Release Imported
Goods (ATRIG) issued by the Bureau of Internal Revenue before they can be released from the port
Rates of Duty
The rate of import duty varies depending on the commodity imported, ranging from 3 to 50%. The schedule of rates is listed
under Section 104, Tariff and Customs Code of the Philippines (TCCP), as amended.
Payment of Duties
Duty is paid along with all the other taxes and charges due on the shipment prior to release of the goods for consumption.
Payments are made through banks which are electronically connected to Customs. Under the automated On-line Release
System(OLRS), when the fact of payment made through the banks are relayed to Customs, Customs in turn keys in such payment
and lifts the hold status of the shipment allowing the port operator to release the goods to the importer or his representative.
Duty Concessions
Certain commodities are exempt from the payment of import duties upon compliance with formalities prescribed and approved
by the Secretary of Finance. Section 105, TCCP governs what is termed as Conditionally-Free Importations. Other special laws
also provide tax and duty-free treatment on certain importations.