What is the difference between bound and applied rates? Most favored nation (mfn), bound tariff (bnd) and effectively applied (ahs). In contrast, applied tariff is the actual rate of duty applied to specific imports at any given time, which can be lower than the bound tariff.
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Bound rates as explained earlier is the binding level committed to by a wto member beyond which he cannot increase.
Exceptions allow wto members to grant tariffs lower than the mfn tariff.
Given the significant differences in import tariff levels across wto members, multilateral tariff. Countries can adjust applied tariffs based on various. The legally bound commitments on customs. An ad valorem tariff is a charge levied on imports, defined in terms of a fixed percentage of value.
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