What is the function of customs tariffs?

The function of customs tariffs primarily revolves around protecting domestic industries by making imported goods more expensive compared to locally produced items. By imposing tariffs, which are taxes on imports, the government aims to level the playing field for domestic producers who may struggle to compete with lower-priced foreign goods. As a result, tariffs encourage consumers to purchase locally made products, potentially leading to increased domestic production, job preservation, and economic growth within the country.

In contrast, the other options do not accurately reflect the primary purpose of customs tariffs. Ensuring that shipments are insured pertains more to logistics and risk management than to tariffs. Tracking the movement of goods internationally is typically handled through customs documentation and declarations rather than through tariffs themselves. Lastly, while tariffs may have some impact on the import/export process, their main role is not to simplify it, but rather to regulate prices and protect local businesses from foreign competition.