Import Surtaxes (Import Surcharge), also known as special tariffs, which is an extra tax after the normal import tax of imported goods levied by importing countries,.But the extra tax is for some purposes. Import Surtaxes is different from import duty,which is not reflected in the customs tariff, and is set for a specific purpose. It often depends on their level of taxation which is the specific purpose for collection. It is usually temporary or one-off.
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The purpose of setting import Surtaxes
1.To meet the balance of payments crisis, to maintain balance between imports and exports. The United States happens the first trade deficit in 1970’s. Nixon administration in order to meet the balance of payments crisis, they implement the “new economic policy” and announced the levy of foreign imports 10% of all import surcharges;
2.Prevent dumping of foreign goods.
3.Discrimination against a particular country or retaliation. Thus import surcharges, also known as special tariffs.
Several forms of import Surtaxes
There are anti-dumping duties, countervailing duties, emergency duties, tariffs and retaliatory tariffs on five kinds of punishment