Chapter 6

Dumping

Exporting a product at a price either lower than the price that the product normally commands in its domestic market or lower than the cost of production.

Antidumping Duty

Additional tariff placed on an imported product that a nation believes is being dumped on its market.

Countervailing Duty

Additional tariff placed on an imported product that a nation believes is receiving an unfair subsidy.

Embargo

Complete ban on trade (imports and exports) in one or more products with a particular country.

Foreign Trade Zone (FTZ)

Designated geographic region through which merchandise is allowed to pass with lower customs duties (taxes) and/or fewer customs procedures.

Subsidy

Financial assistance to domestic producers in the form of cash payments, low-interest loans, tax breaks, product price supports, or other forms.

Tariff

Government tax levied on a product as it enters or leaves a country.

Tariff-Quota

Lower tariff rate for a certain quantity of imports and a higher rate for quantities that exceed the quota.

Free Trade

Pattern of imports and exports that occurs in the absence of trade barriers.

Administrative Delays

Regulatory controls or bureaucratic rules designed to impair the flow of imports into a country.

Normal Trade Relations (formerly "most favored nation status")

Requirement that WTO members extend the same favorable terms of trade to all members that they extend to any single member.

Quota

Restriction on the amount (measured in units or weight) of a good that can enter or leave a country during a certain period of time.

Currency Controls

Restrictions on the convertibility of a currency into other currencies.

Ad Valorem Tariff

Tariff levied as a percentage of the stated price of an imported product.

Specific Tariff

Tariff levied as a specific fee for each unit (measured by number, weight, etc.) of an imported product.

Compound Tariff

Tariff levied on an imported product and calculated partly as a percentage of its stated price and partly as a specific fee for each unit.

Voluntary Export Restraint (VER)

Unique version of export quota that a nation imposes on its exports, usually at the request of an importing nation.