CPIM Practice Exam

What term refers to an official schedule of taxes imposed on imports or exports?

1. Duty

2. Tariff

3. Quota

4. Excise tax

The correct answer is: Tariff

The term "tariff" refers to an official schedule of taxes imposed on imports or exports. Tariffs are government-imposed taxes that increase the cost of importing goods from other countries, which can affect international trade dynamics. They serve multiple purposes, including protecting domestic industries by making foreign products more expensive, raising revenue for the government, and influencing trade policy. Understanding tariffs is crucial in the context of supply chain management and global trade, as they can impact pricing, availability of products, and overall market competitiveness. While "duty" is often used interchangeably with tariff, it generally refers to the specific taxes imposed on particular goods rather than the broader schedule of taxes. "Quota" refers to a limit on the amount of a product that can be imported or exported during a certain timeframe, and "excise tax" is a tax imposed on specific goods produced within a country, rather than on the international trade of goods. Thus, the term that accurately captures the official schedule of taxes on imports and exports is indeed "tariff."