In an effort to attract assembly operations,Brazil allows certain product components to be imported at reduced tariff rates.This is an example of:
A)offsets.
B)preferential tariffs.
C)the effect of the Customs Valuation Code.
D)an EMC.
E)discriminatory procurement.

Question

Quizplus · Accepted Answer

Preferential tariffs are reduced tariff rates provided by a country to encourage certain economic activities or relationships. In this case, Brazil is using preferential tariffs to attract assembly operations by allowing certain product components to be imported at reduced rates.

In an Effort to Attract Assembly Operations,Brazil Allows Certain Product