Legal Definitions - common external tariff

COMMON EXTERNAL TARIFF

A common external tariff is a tax on goods that is applied uniformly by a group of countries to imports from countries outside of that group. It is designed to protect domestic industries and create a level playing field for trade among member countries.

For example, the European Union has a common external tariff on goods imported from countries outside of the EU. This means that if a product is imported into any EU country from a non-EU country, it will be subject to the same tariff rate regardless of which EU country it enters.

Another example is the Southern African Customs Union (SACU), which has a common external tariff on goods imported from countries outside of the SACU. This means that if a product is imported into any of the SACU member countries (Botswana, Lesotho, Namibia, South Africa, and Eswatini) from a non-SACU country, it will be subject to the same tariff rate regardless of which SACU country it enters.

The examples illustrate how a common external tariff works in practice. By applying the same tariff rate to imports from non-member countries, member countries can prevent one country from gaining an unfair advantage over another. This helps to create a level playing field for trade among member countries and protects domestic industries from foreign competition.