Variable Levy

Variable Levy and the GATT Policy Negotiations

In relation to the GATT Policy Negotiations, Christopher Mark (1993) provided the following explanation and/or definition of Variable Levy: An import duty that is subject to alteration as world market prices change, designed to ensure that the imported product's price after payment of the duty will be no less that a predetermined minimum import price. As applied to imported farm products under the European Community's Common Agricultural Policy, the variable levy amounts to the difference between the EC target price for domestic producers and the lowest available prices on world markets. For imports of cattle, beef, and veal, the variable levy is applied in addition to normal customs duties. The amount of EC variable levies are adjusted for changes in world market conditions on a daily basis for sugar and grains; weekly for dairy products, beef, live cattle, veal, and rice; monthly for olive oil; and quarterly for pork, poultry , and eggs. See also supplementary levy .

Variable Levy in International Trade

Meaning of Variable Levy, according to the Dictionary of International Trade (Global Negotiator): A tariff subject to alterations as world market prices change. The alterations are designed to assure that the import cost after the payment of the duty will equal a predetermined “gate” price.