What role do customs payments play in regulating the commodity market?

Customs payments are a fairly large revenue part of the state budget. They make up more than thirty percent of all receipts. Russian legislation establishes a certain mechanism for calculating such payments and the procedure for their payment.

What are the customs duties for?

Payments, which arise when a state border crosses with one or another commodity, are called customs. They are the main economic regulator of trade. Such a tool stimulates foreign trade relations and is a kind of limiting the cost of production in a competitive environment.

Customs payments can be a deterrent in the implementation of a certain economic policy of the state. Fees apply both to imported goods (imports) and to exported products (exports). Let's consider each group separately.

Role and purpose of import duties

To preserve a certain balance of the population's solvency, as well as to regulate the number of imported goods, the state imposed import duties. It is not difficult to guess that payment of customs payments increases the final cost of production. But this fact is not always negative.

Due to the increase in the price of imported goods, there is a stimulation of the domestic market and the domestic producer. Competitiveness of enterprises is significantly increased. And as a result, the consumer receives high-quality goods of his own production at an affordable price. This is exactly the goal pursued by economists in creating such charges. In other words, import duties protect the domestic market and replenish the treasury of the state.

Why do I need an export duty?

Types of customs payments, which are paid when exporting goods outside the state border, are called export duties. In the world economy such measures are not very popular. Basically, the collection of export payments is carried out by states that control a certain resource. With the help of such a tax, the sales volume is equalized. In addition, a phenomenon such as a deficit is excluded.

Sometimes world prices for a certain product become more attractive than domestic ones, and producers, in order to obtain the greatest profit, try to export their products in unlimited amounts. Customs payments and taxes in this case play a regulatory role.

Where do the rates of customs payments come from?

Goods that are subject to customs duties are listed in the systematized list. Each species has its own nomenclature code and the corresponding border fee rate. From where the goods arrived, the basic rate of collection changes.

For example, depending on trade and political relations between countries, customs payments may be preferential or overstated. If the origin of the goods is not specified, then the tax is paid in double amount. And for underdeveloped countries, the customs fee may be absent altogether. Such types of payments are called preferential.

Special and seasonal fees

A number of export goods have a seasonal character. For such types of products, special customs payments are envisaged. Their validity is limited to six months. Such period is most interesting for suppliers of agricultural products, since the basic tariff at this moment does not work. Such a measure is also regulating. It helps maintain the balance of the domestic market. Types of customs payments, having the status of special, are divided into three groups:

• Anti-dumping taxes. They are used to prevent the import of goods at too low a price. Such a method is often used by countries to promote their products to foreign markets, as well as for advertising purposes.
• Special types of customs payments. Introduced in the event of a threat to domestic producers in connection with large quantities of imported goods. Such sanctions can also be imposed as a response to discriminatory actions by other states.
• Compensatory customs payments. Applicable in the case when subsidized funds were used in the production of products.

Who is exempt from paying the fee?

Goods that are humanitarian or non-remunerated are completely exempt from border payments. Such products can be imported through the interstate relations. Also, equipment and devices for servicemen, scientific literature and book editions with certain historical value, Russian and foreign currency, are exempt from payments. All these benefits are fixed by legislation and have a strictly limited list.