Tariff
A tariff is a tax on imports or exports between sovereign states. It is a form of regulation of foreign trade. It is a policy that taxes foreign products to encourage or protect domestic industry. It helps limit trade deficits. The tariff is historically used to protect infant industries and to allow import substitution industrialization.
History of tariffs in Australia
From the point of view of the form and structure of tariffs, the colonial systems had developed features which carried over to the first Australian Customs Tariff. This applied to the mix of specific and ad valorem rates, the more favorable tax treatment of intermediate inputs, the complex differentiation of tariff rates within product groups or industries, and to differential rates on imports of excisable items and the excise tax rates on similar domestic products, which gave a protective margin to imports of alcoholic beverages and tobacco.