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Abstract

A methodology for dairy product component tariff and price calculation is developed and applied to various products. Since the majority of dairy products are imported for their ingredients, component tariffs need to be considered in evaluating the protection provided by the tariff structure rather than tariffs on end products as listed in the HTS schedule. The results of the Uruguay Round tariffication of dairy products for the United States indicate that implied milk fat and protein AVE's vary substantially among and within product groups. Different tariffs applied to finished products may have unintended impacts on economic incentives due to their impact on the relative prices of imported milk components.

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