Import Duty

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Definition of 'Import Duty'

An import duty is a tax levied on goods brought into a country. Import duties are typically used to protect domestic industries from foreign competition. They can also be used to raise revenue for the government.

Import duties are usually calculated as a percentage of the value of the imported goods. However, they can also be calculated as a specific amount per unit of goods.

Import duties are collected by the customs authorities of the importing country. The importer is responsible for paying the import duty. However, the exporter may be required to pay the duty in advance, if the importing country has a pre-payment requirement.

Import duties can have a significant impact on the price of imported goods. They can make imported goods more expensive than domestically produced goods. This can discourage consumers from buying imported goods and can help to protect domestic industries.

Import duties can also be used to raise revenue for the government. However, they are not a very efficient way to raise revenue. Import duties are often passed on to consumers in the form of higher prices. This means that the government does not get all of the revenue from import duties.

Import duties can also have a negative impact on trade. They can make it more difficult for businesses to import goods from other countries. This can reduce competition in the domestic market and lead to higher prices for consumers.

Import duties are a controversial topic. Some people believe that they are necessary to protect domestic industries. Others believe that they are a form of protectionism and that they harm the economy.

The decision of whether or not to impose import duties is a complex one. There are a number of factors that need to be considered, including the impact on domestic industries, the impact on trade, and the impact on consumers.

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