The term tariff is derived from the Arabic word, taÄÂrif, which means fees to be paid. Tariffs are actually charged taxes particularly in the importation and exportation of goods and services and even people. Through the course of history, tariffs have been used as part of the trade industries, businesses and fields of commerce. As the use of tariffs became well incorporated in regulating the economies of most countries, it has been gradually developed and improved, that today, various types of tariffs are already in existence. There are ad valorem tariffs, Specific tariffs, Revenue tariffs, Prohibitive tariff, Protective tariff, Environmental tariff and Retaliatory tariff. These tariffs have various functions and scopes, depending on what situation it is required for.
Today, the use of tariffs remains to exist, especially in establishing economies.