CHANAKYA NATIONAL LAW UNIVERSITY,PATNA J

ROUGH DRAFT SUBMITTED IN THE FINAL FULFILMENT OF THE

COURSE TITLED-
INTERNATIONAL TRADE LAW
“Tariffs and quotas ”
SUBMITTED TO: -
P.P Rao
Faculty of the subject International trade law

SUBMITTED BY: -

AKASH ANAND

SIXTH SEMESTER

ROLL NO.=1808

B.B.A., LL.B. (HONS)

INTRODUCTION

Free trade refers to the elimination of barriers to international trade. The most common
barriers to trade are tariffs, quotas, and nontariff barriers.

A tariff is a tax on imports, which is collected by the federal government and which raises the
price of the good to the consumer. Also known as duties or import duties, tariffs usually aim
first to limit imports and second to raise revenue.

A quota is a limit on the amount of a certain type of good that may be imported into the
country. A quota can be either voluntary or legally enforced.

The effect of tariffs and quotas is the same: to limit imports and protect domestic producers
from foreign competition. A tariff raises the price of the foreign good beyond the market
equilibrium price, which decreases the demand for and, eventually, the supply of the foreign
good. A quota limits the supply to a certain quantity, which raises the price beyond the
market equilibrium level and thus decreases demand.

Tariffs come in different forms, mostly depending on the motivation, or rather the stated
motivation. (The actual motivation is always to limit imports.) For instance, a tariff may be
levied in order to bring the price of the imported good up to the level of the domestically
produced good. This so-called scientific tariff—which to an economist is anything but—has
the stated goal of equalizing the price and, therefore, “leveling the playing field,” between
foreign and domestic producers. In this game, the consumer loses.

A peril-point tariff is levied in order to save a domestic industry that has deteriorated to the
point where its very existence is in peril. An economist would argue that the industry should
be allowed to expire. That way, factors of production used by that inefficient industry could
move into a new one where they would be better employed.

HYPOTHESIS
The researcher presumes that ‘the effect of tariffs and quota is same: to limit imports and
protect domestic producers from foreign competition ’.
RESEARCH METHODOLOGY
The researcher followed doctrinal as well as non-doctrinal method of research to complete the
project.

AIM AND OBJECTIVE

The researcher tends to determine the similarities and differences between tariffs and quotas.

SOURCES OF DATA

1. The researcher relied on secondary sources to complete the project.

2.Secondary sources include all the books and websites related to the topic.

LIMITATIONS:

The researcher has territorial and time limitations.

TENTATIVE CHAPTERIZATION:

Chapter 1: - introduction.

Chapter 2: - Basics of tariffs and quotas

Chapter 3: - Advantage and disadvantage of tariffs and quotas

Chapter 4: - Effects of tariffs and quotas in international trade

Chapter 5: - conclusion and suggestion

Chapter 6: - Bibliography