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Import Certificates Vs. Tariffs.

Discussion in 'Economics, Business, and Taxes' started by Supposn, Oct 9, 2016.

  1. Supposn

    Supposn Council Member

    Joined:
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    Import Certificates Vs. Tariffs:

    I’m a proponent of USA could adopt an Import Tariff policy as described in the Wikipedia article entitled “Import Certificates”.
    Refer to:https://en.wikipedia.org/wiki/Import_certificates

    The subject of tariffs often arises within discussions of Import Certificates.

    Comparisons between tariffs and import certificate policies:

    Both tariffs and import certificate proposals would require importers of goods surrender something’s of value to the U.S. government before their goods are enabled to enter the USA. Tariffs can as the Import Certificate policy is to be drafted in a manner to be no greater than self-funding; (i.e. providing government with no net revenue).
    Within both trade policies the values of what importers are surrendering (and thus the additional expense to the importers) are proportionally related to approximate values of their shipments being brought into the USA and those additional expenses are passed on to the eventual purchasers of imported goods.


    Within an Import Certificate policy an exporter of USA goods is entitled, (i.e. not required) to choose to pay the federal fees that enable them to acquire transferable Import Certificates with face values equal to the assessed values of their USA export shipments. If they do not pay the fee, their shipments are not assessed and no certificates are issued.

    Certificates with face values sufficient to cover the assessed values of goods imported into the USA must be surrendered before import shipments are permitted to enter our nation. Surrendered certificates are cancelled. This policy is an indirect but effective subsidy of USA’s exported goods.


    Regardless of the transferable import certificates price rates within global markets, (i.e. even if the additional costs for importers to bring their shipment into the USA would be only a penny, USA’s annual trade deficits of goods would be entirely or almost entirely eliminated.

    No tariff policy could provide such an assurance with any certainty but any tariff policy that could feasibly attempt it would have to be of the most extremely high tariff rates to be passed on to USA purchasers of imported goods. Such drastically high rates would almost entirely eliminate imported goods from USA’s domestic markets.


    Because the Import Certificate policy is substantially market driven, if within the USA there exists an effective demand for any foreign item (that’s legally importable), that market demand will be satisfied.


    Respectfully. Supposn
     

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