Glossary of Terms

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Glossary of Terms

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Fiscal Tax

A tax which is levied on imported products as well as on domestically produced goods to generate revenue. A fiscal tax is therefore not equivalent to a customs tariff duty since it has no protective effects. Fiscal taxes are sometimes included in the customs tariff duties.

Formula Approach

A tariff reduction negotiating method by which tariffs are reduced across the board using a mathematical formula agreed upon by participants.

Free-Trade Area (FTA)

A group of two or more customs territories in which the duties and other restrictive regulations of commerce are eliminated on substantially all the trade between the constituent territories in products originating in such territories.

FTA

See Free trade area.