As the world begins its globalization, many countries enliven the globalization by conducting trade activities with other countries in form of exports and imports. In order to make the trade activities more regulated, each country must have its own trade policy such as tariff barriers and non-tariff barriers.
             Tariff is a tax imposed on imports or exports, a fee that a government charges to the importers of foreign goods and it is passed along the customers through higher prices on imported goods. Tariffs are more common to be imposed for commodity imports, based on the value of the good or on a fixed price unit and it is usually imposed by a national government when the imports cross its customs boundary (The Politics of International Economic Relations). Most countries impose tariff on import activities inside their countries to fulfill several objectives such as decreasing the amount of imports inside the countries by making the price more expensive (JawaPos, "Perda Mobil Asing Bekas; antara Kebutuhan dan Aturan Main Mobil"), decreasing the outflow of foreign reserves and protecting domestic industries (JawaPos, "Dikaji, Harmonisasi Tarif BM Industri Agro).
             There are varieties of tariffs such as prohibitive tariff, protective tariff, and revenue-producing tariff. Prohibitive tariff is a tariff that will be increased up until a point that there is no longer any international trade, since the price is excessively high until there is no longer any excess demand in importing country. Protective tariffs attempt to protect selected domestic industries by restricting the quantity and raising the price of competing imports, while revenue-producing tariffs are performed mainly to increase government income (The Politics of International Economic Relations).
             In Indonesia, where imports are abundant, these import activities will certainly have a great impact on local industries; the competition will be tougher and local ...