ORIGIN OF CUSTOMS
IT WAS CUSTOMS:
During the feudal ages, favored barons were granted the privilege to levy takes by the king. Those importing foreign merchandise or selling a certain domestic commodity were taxed for the privilege by favored lord or baron. One baron would have the exclusive right to levy tribute on sellers of salt while another baron would have the privilege to some other commodity. Thus taxes were collected from domestic merchants and importers somewhat as they are today. The favored lords were thus enriched and enable to support their retainers and contribute to the wars of the kings. In those days, it was uncommon to inquire that was the customs meaning the attribute to be paid to the baron and thus the same "custom" meaning the tribute to be paid to the baron, and thus the name "customs" became synonymous with tax levied, and the name has been continued under our tariff laws.
the kings, in turn, levied upon these same feudal lords, sometimes referred to as robber barons, through the so-called "divine rights of kings" which included the physical ability:
- To raise a revenue by levying on the feudal lords.
- To enforce their decrees on the greater number and
- To raise armed forces to sustain their orders, by punishing recalcitrants and to make conquest on other nobles and kings and bring them into their orbits of influence.
The practice of collecting revenue from customs on importation by means of tariff is shrouded in antiquity. Customs duties are mentioned in the Old testament, bu this method of collecting revenue may have been the fashion long before its first authentic record.
After Cyrus, King of Persia, had authorized the captive Israelites to return them from Babylon to Jerusalem and rebuild the city and temple (Ezra, Chapter 1-2) there were those in the land who "Weakened the hands of the people of Judah, and troubled them in building, and hired counselors against them, to frustrate their purpose." (Ezra 4.3-6). To King Artaxerxes, a usuper who succeeded Cyrus, these people wrote, "xxx Be it known now unto the King, that, if this City is built, and walls finished, they will not pay tribute, customs or toll xxx". (Ezra 4.13). The King replied, and I decreed, and search that been made, and it is found that xxx. There have been might kings also over Jerusalem, who ruled over all the country beyond the River, and tribute, Customs, and toll was paid unto them." (Ezra 4.19-21)
The building was stopped. Then followed 3 king Darius and another Artexerxes. This later King Artexerxes restored the Hebrew state and decreed that "that is shall not be lawful to impose tribute, customs, or toll upon the Priest and Levites, the singers, porters, or ministers of this house of God." (Ezra 7:24).
The New testament recites that Jesus called Mathew from "the receipt of the customs." (Mark 2:14; Luke 5:27-29), which shows the Mathew was probably, at the time, a collector of tolls and customs duties of the Sea of Galilee.
During the many disputes between the English kings and the House of Commons over the levying and imposition of taxes the kings claimed that proceeds from "ancient customs" was their and parliament had no jurisdiction over it. Thus the term "customs" came into official use at an early date in England, and has ever since been applied to imports or taxes on imports or taxes on imports.
PURPOSES OF TARIFFS:
Tariffs may be devided as to purpose into three categories namely.
- Revenue Tariff - whose rate of duty are relatively low so that goods may be readily imported and duties easily collected. Example: 01.01 live horse 10% ad valorem.
- Protective Tariff - whose rates are relatively high to keep certain imports out of the domestic market of to raise domestic price on certain imports so that they may be manufactured profitability at home. In order to protect our local industries who are producing the same, like or similar articles and to avoid high completion, example: 85.12 electric hair dryers - 50% ad valorem.
- Bargaining Tariff - whose schedules include rates designed primarily for bargaining purpose or which contain some general provision for the imposition of higher duties upon products of countries vision for the imposition of higher duties upon products of countries whose tariff policies are considered unsatisfactory or unfair.
These three objectives may be combined in single tariff. A tariff for revenue may contain protective features and at the same time, provide the necessary instrument for bargaining with the foreign countries for the reduction of tariff and other barriers to trade. One of the principal reasons, for a protective tariff is the attainment of a relative degree of self-sufficiency, important in the event of war.