Okuzeka
International Trade vocabulary · Trade Agreements and Policy

Preferential tariff

Meaning in international trade, with examples

nounCommon term

In international trade, preferential tariff means: A lower customs duty rate, sometimes zero, given to goods from certain countries under a trade agreement or a development programme.

In Turkish: tercihli tarife, tercihli vergi oranı, indirimli gümrük vergisi

How it is used

Used by customs officers and trade advisers: 'qualify for a preferential tariff', 'preferential treatment', 'claim preference'. Goods must meet the rules of origin and travel with valid proof of origin; otherwise the normal MFN rate applies.

Example sentences

  1. With an EUR.1, the goods qualify for a preferential tariff of zero percent.

  2. The importer lost the preferential tariff because the proof of origin was invalid.

Common collocations

  • preferential tariff rate
  • qualify for a preferential tariff
  • preferential treatment
  • claim a preferential tariff
  • free trade agreementAn agreement between two or more countries to remove or reduce customs duties and other barriers on most of the goods traded between them.
  • rules of originThe criteria used to decide which country a product comes from, especially when it contains materials or work from several countries.
  • EUR.1A movement certificate that proves the preferential origin of goods so they can enter a partner country at a reduced or zero duty under a trade agreement.
  • most-favoured nationA WTO principle that a country must give all other members the same tariff and trade treatment it gives to its most favoured trading partner.

More terms: Trade Agreements and Policy

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