The application of progressively higher import fees or charges from the raw to the processed form of products within the same product categories (e.g. oilseed to vegetable oil).
In a country's tariff schedule, the tendency for tariffs to be higher on processed goods than on the raw materials from which they are produced. This causes the effective rate of protection on these goods to be higher than the nominal rate and puts LDC producers of primary products at a disadvantage.
A situation where tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate and tariffs on raw materials are low or non-existent. Français: Tarif par paliers croissants Español: Progresión arancelaria
An increase in tariffs as a good becomes more processed, with lower tariffs on raw materials and less processed goods than on more processed versions of the same or derivative goods. For example, low duties on fresh tomatoes, higher duties on canned tomatoes and higher yet on tomato Ketchup
The existence of progressively higher tariffs on goods by degree of processing. If a country's tariff on raw logs was 5% and the tariff on cut lumber was 10% and the tariff on a wooden chair is 25%, the country's tariff schedule would exhibit tariff escalation. It leads to very high effective rates of protection for the "final" goods.
Occurs if the tariff increases as a good becomes more processed. Escalation discourages imports of more processed varieties of the good (discouraging foreign processing activity) and offers domestic processors positive levels of effective protection. For example, low duties on tomatoes, higher duties on tomato paste, and even higher duties on tomato ketchup.
A situation in which tariffs on manufactured goods are relatively high, tariffs on semi-processed goods are moderate, and tariffs on raw materials are nonexistent or very low.
The situation which duties are low or non-existent for raw materials, moderate for semi-manufactured goods and relatively high for finished products.
In a customs tariff, a situation in which duties on raw materials are nonexistent or very low; duties on semi-processed goods are moderate; and duties on manufactured goods are relatively high.
