Theory question 103
Foreign TradeCommerce 2 (essay)
(a) Explain five reasons why tariffs are imposed on imports
(b) State five functions performed by the customs authority
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(a) Any five, explained: to raise government revenue; to protect infant/local industries from foreign competition; to correct a balance of payments deficit; to prevent dumping; to discourage the import of harmful or luxury goods; to retaliate against other countries' tariffs; to conserve foreign exchange; to create employment at home.
(b) Any five: collect import and export duties and excise duties; prevent smuggling and illegal imports; examine and clear goods at ports; enforce import/export prohibitions; keep trade statistics; supervise bonded warehouses; check travellers' luggage; grant drawbacks.
Explain each reason in a sentence.