Hello friends welcome to Sonu live ,in this article I’m going to tell you about Types of duties which will help to write an assignment of POLITICAL THEORY(MPS-001) SECTION-II
Understanding Types of Duties
Exploring Indirect Taxes on Imports and Exports
Duties, as forms of indirect taxes on imported or exported goods, serve various purposes, impacting both consumers and industries. Let’s delve into the common types of duties and their roles:
1. Basic Customs Duty
- Definition: Levied on the value of imported goods.
- Varied Rates: Rates differ based on the type of imported goods.
2. Countervailing Duty (CVD)
- Purpose: Imposed to offset subsidies granted by exporting countries.
- Leveling the Field: Ensures fairness for domestic producers without subsidies.
3. Additional Customs Duty (ACD)
- Supplementary Levy: Added to the basic customs duty.
- Protection Mechanism: Shields domestic industries from unfair competition.
4. Anti-Dumping Duty (ADD)
- Preventing Unfair Practices: Tariff on goods sold below fair value in the exporting nation.
- Protection for Domestic Producers: Mitigates harm from dumping practices.
5. Safeguard Duty
- Temporary Measure: Imposed during sudden import surges.
- Industry Protection: Safeguards domestic industries for a limited period.
6. Educational Cess
- Contributing to Education: Small tax funding educational programs.
- Social Investment: Enhances educational infrastructure through imported goods taxation.
These duties serve as instruments for revenue generation, industry protection, and market regulation. The specific duty applied depends on factors such as the origin country, type of goods, and existing trade agreements.
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