| Ad valorem tariff | A tariff proportional to the value of an imported good i.e. a percentage of the value of the good. |
| Allocative efficiency | Getting any given results with the smallest possible inputs, or getting the maximum possible output from given resources. |
| Alternative specific tariff | A fixed monetary value tariff (i.e. specific tariff) applied per unit if the duty payable exceeds the amount of duty payable under the applicable ad valorem tariff. New Zealand maintains alternative specific tariffs on 60 per cent of clothing Tariff items. |
| Applied tariff rate | The actual tariff levied on an imported good. |
| Bogor Declaration / Bogor Goals | "free and open trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020 for developing ones." This goal was adopted in 1994 by APEC members at the 6th APEC Ministerial Meeting in Bogor, Indonesia. |
| Bound tariff rate | The tariff rate agreed to under the GATT or at the WTO for a specified Tariff item. Applied tariff rates can not be raised above their equivalent bound rates without offering compensation to affected trade partners. Bound tariff rates are enforceable under Article II of GATT. |
| Margin of preference | The difference in tariff rate between the duty payable on an MFN basis and that payable under a preferential trading arrangement such as CER. |
| Most-favoured-nation (MFN) tariff | The tariff rate that applies to imports on a non-discriminatory basis from countries that do not receive a tariff preference or tariff concession. Also referred to as normal tariff or general tariff. |
| Non-tariff trade barrier | A barrier to trade other than a tariff that has the effect, intended or not, of restricting trade. For example, an import quota, a technical barrier to trade or an embargo. Also referred to as non-tariff measure. |
| Re-export | A good exported in the same state as previously imported. It includes exports that underwent processing (after being imported) which did not change their origin. |
| Rules of origin | The criteria used to determine where a product is made. |
| Specific tariff | A fixed monetary amount levied per unit on an imported good. |
| Swiss formula | A tariff reduction formula proposed by Switzerland and adopted at the GATT Tokyo Round (1974-1979). It is a differential approach that reduces higher tariffs more than lower tariffs so as to reduce tariff peaks and thereby create a more uniform tariff regime. |
| Tariff | A tax levied on imports at the border primarily to protect domestic industry. |
| Tariff concession | Domestic context: Derived from the Tariff Act 1988, a tariff concession is a formal mechanism by which goods dutiable in the Tariff can be made duty free.
International context: Negotiated reduction of a tariff which is bound under the GATT or committed to under a bilateral agreement. |
| Tariff item | An 8-digit import category of Part I of the New Zealand Tariff. |
| Tariff peak | Either a tariff above 15 per cent or a tariff that is more than three times the country's average tariff rate. |
| Uruguay Round | The last GATT round of multilateral trade negotiations initiated in Punta del Este, Uruguay, beginning in 1986 and ending in 1994. |