1. Tariff Systems

All tariff systems can be classified into four main types: single column tariff, maximum-minimum tariff, general-conventional tariff, preferential tariff.

The first type is a single column tariff. It consists of one list of duties with a single duty rate for each article, applicable equally to imports from all countries. It is practiced in Germany, Japan, Scandinavian countries.

The second type is a maximum-minimum tariff. It involves two columns of duties. The lower rate is applicable to countries with most-favoured-nation treatment and the higher is to other countries. Sometimes maximum-minimum tariffs include only minimum tariff and the rates of the maximum tariff are calculated by applying multiplier. France and Spain are among the countries using such a system.

The third type is a general-conventional tariff. It involves a single column of duties and establishes a second column of conventional duties in negotiations with other countries. The conventional rates are common with the countries of the most-favoured-nation treatment.

The fourth type of customs tariff is a preferential tariff. It represents an import duty at a low rate on goods from a country that is favoured. Usually preferential tariff is applied to the countries of the same group. Within the European Union preferential rates are exchanged between member countries and are not extended to outside countries.

2. Free Economic Zones (fez)

Free economic zones are independent territory economic formations with a special currency-financial, legal, customs and organizational-social system. They are formed on the initiative of local authorities with the permission of the central government.

Their main objective is to provide more favourable conditions for the development of foreign economic links. They attract foreign investments, technologies and products. These zones help in the development of domestic production on the basis of modern achievements in science and technology.

Free economic zones are divided into three groups.

The first group includes customs which are frontier zones. They are usually created at sea or river ports, at large frontier railway junctions and at airports. The second group is scientific engineering zones. Foreign potential is attracted here to develop science and engineering. The largest and the most important is the third group, general economic zones. Usually they represent a part or the whole of the territory of the administrative region or area and also large port cities.

Free economic zones are given special rights. They enjoy the main right to define their social and economic policy independently if this does not contradict the rules and laws of the state. Authorities of the zone can regulate export-import transactions, set the order of entry, exit and stay for foreign citizens on its territory, can establish direct foreign economic and cultural links.

They also enjoy tax privileges. Authorities of the zone have the right to carry out budget and taxation politics of their own within its territory. They independently develop the system of taxation, set financial and other privileges starting with world tax rates and preferences.