<p>Entry price system (EPS) is a <a href="https://doi.org/10.1016/j.foodpol.2008.06.005" rel="noreferrer">EU-specific term</a> relating to their food import tariffs, more specifically to fruits and vegetables. It's a somewhat complicated system designed to strongly discourage imports below a certain price. This is a summary from 2009 paper:</p>

<blockquote>
  <p>The EU protects growers of 15 kinds of selected fruits
  and vegetables against international competition not
  only by the means of ad valorem tariffs of up to 20%,
  but also by the EPS. The EPS came into effect on 1
  July 1995, replacing the former RPS. Analogous to a
  minimum import price, the EPS is designed to restrict
  imports below the product-specific, politically
  designated EP plus ad valorem tariff (Table 1). If the
  EP is undercut, an additional specific tariff is levied,
  which proportionally varies depending on the gap
  between the product’s actual import price and the EP.
  When the EP is undercut by 8% or more, the
  maximum specific tariff, referred to as the maximum
  tariff equivalent (MTE), of up to 80% of the EP is
  charged. For example, the EPS is applied to oranges
  during the EU orange harvest season in the time period
  December 1 to May 31. The MFN tariff for oranges
  seasonally varies between 3.2% and 16.0% whereas
  the MFN EP remains constant at a level of 354 €/t. If
  oranges are exported to the EU at a price of 336.3 €/t,
  the EP is undercut by 5%. This implies that the
  exporter has to pay an additional specific tariff of 17.7
  €/t which is equal to the gap between the import price
  and the EP. If the entry price for oranges is undercut
  by 8% or more, an additional specific tariff at the level
  of the MTE of 71 €/t is charged. [...]</p>
  
  <p><a href="https://i.sstatic.net/kaCCz.png" rel="noreferrer"><img src="https://i.sstatic.net/kaCCz.png" alt="enter image description here"></a></p>
  
  <p>Monitoring compliance with the EPS faces the
  difficulty that a large share of fruit and vegetable
  imports in the EU is on commission, implying that the
  import price is not determined until the product is sold
  in the EU market. Therefore, the EC calculates a
  synthetic import price, the standard import value
  (SIV). Fruit and vegetable prices, surveyed for each
  product and export country individually, are collected
  on representative fruit and vegetable wholesale
  markets in all EU Member States. The daily SIVs are
  calculated as a weighted average of collected
  wholesale market prices, less a marketing and
  transportation margin and applied tariffs.
  The EPS can be circumvented (both legally and
  illegally), so that some product is finally sold at prices
  below the EP (García-Álvarez-Coque, 2002).
  According to information from importers, illegal
  circumvention (e.g. based on false invoicing) is more
  prevalent in small-scale trading, particularly between
  related trading partners. Storage can offer a means of
  legal circumvention, as storable products can be
  imported at any time while customs clearance is
  delayed until some later date when the SIV is above
  the EP. Once cleared at a favourable SIV, the product
  can be sold later on EU markets at any price (Cioffi
  and del' Aquila, 2004).</p>
</blockquote>

<p>There were some <a href="https://www.freshfruitportal.com/news/2014/04/23/qa-european-commission-explains-new-entry-price-system-for-fruit-veg/" rel="noreferrer">2014 changes</a> (not covered in that quote).</p>

CC BY-SA 4.0
2018-09-25T10:29:39.627Z
2018-09-25T10:29:39.627Z
fantastic peace and prosperity
<p>I see the term “entry price” and “price entry system” in relation to tariffs.</p>

<p>What do these means?</p>

<p>For example this document: <a href="https://ageconsearch.umn.edu/bitstream/10095/1/sp06go22.pdf" rel="nofollow noreferrer">https://ageconsearch.umn.edu/bitstream/10095/1/sp06go22.pdf</a></p>

<definition><tariffs>
What is the “entry price” in relation to tariffs?
52d6c6af
# What is the “entry price” in relation to tariffs?

(Asked by: username_0 on 2018-09-25)

I see the term “entry price” and “price entry system” in relation to tariffs.

What do these means?

For example this document: <https://ageconsearch.umn.edu/bitstream/10095/1/sp06go22.pdf>

**Tags:** definition, tariffs

---

## 1 answers

### Answer by username_1 on 2018-09-25. Score: 5 | Accepted answer

Entry price system (EPS) is a [EU-specific term](https://doi.org/10.1016/j.foodpol.2008.06.005) relating to their food import tariffs, more specifically to fruits and vegetables. It's a somewhat complicated system designed to strongly discourage imports below a certain price. This is a summary from 2009 paper:

> The EU protects growers of 15 kinds of selected fruits
> and vegetables against international competition not
> only by the means of ad valorem tariffs of up to 20%,
> but also by the EPS. The EPS came into effect on 1
> July 1995, replacing the former RPS. Analogous to a
> minimum import price, the EPS is designed to restrict
> imports below the product-specific, politically
> designated EP plus ad valorem tariff (Table 1). If the
> EP is undercut, an additional specific tariff is levied,
> which proportionally varies depending on the gap
> between the product’s actual import price and the EP.
> When the EP is undercut by 8% or more, the
> maximum specific tariff, referred to as the maximum
> tariff equivalent (MTE), of up to 80% of the EP is
> charged. For example, the EPS is applied to oranges
> during the EU orange harvest season in the time period
> December 1 to May 31. The MFN tariff for oranges
> seasonally varies between 3.2% and 16.0% whereas
> the MFN EP remains constant at a level of 354 €/t. If
> oranges are exported to the EU at a price of 336.3 €/t,
> the EP is undercut by 5%. This implies that the
> exporter has to pay an additional specific tariff of 17.7
> €/t which is equal to the gap between the import price
> and the EP. If the entry price for oranges is undercut
> by 8% or more, an additional specific tariff at the level
> of the MTE of 71 €/t is charged. [...]
>
> [![enter image description here](https://i.sstatic.net/kaCCz.png)](https://i.sstatic.net/kaCCz.png)
>
> Monitoring compliance with the EPS faces the
> difficulty that a large share of fruit and vegetable
> imports in the EU is on commission, implying that the
> import price is not determined until the product is sold
> in the EU market. Therefore, the EC calculates a
> synthetic import price, the standard import value
> (SIV). Fruit and vegetable prices, surveyed for each
> product and export country individually, are collected
> on representative fruit and vegetable wholesale
> markets in all EU Member States. The daily SIVs are
> calculated as a weighted average of collected
> wholesale market prices, less a marketing and
> transportation margin and applied tariffs.
> The EPS can be circumvented (both legally and
> illegally), so that some product is finally sold at prices
> below the EP (García-Álvarez-Coque, 2002).
> According to information from importers, illegal
> circumvention (e.g. based on false invoicing) is more
> prevalent in small-scale trading, particularly between
> related trading partners. Storage can offer a means of
> legal circumvention, as storable products can be
> imported at any time while customs clearance is
> delayed until some later date when the SIV is above
> the EP. Once cleared at a favourable SIV, the product
> can be sold later on EU markets at any price (Cioffi
> and del' Aquila, 2004).

There were some [2014 changes](https://www.freshfruitportal.com/news/2014/04/23/qa-european-commission-explains-new-entry-price-system-for-fruit-veg/) (not covered in that quote).


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