Import Duty

AAA

DEFINITION of 'Import Duty '

A tax collected on imports and some exports by the customs authorities of a country. This tax is used to raise state revenue. It is based on the value of goods called ad valorem duty or the weight, dimensions, or other criteria of the item such as its size. Also referred to as customs duty, tariff, import tax and import tariff.

INVESTOPEDIA EXPLAINS 'Import Duty '

In the United States, duty rates are established by Congress. The rates for imports are listed in the Harmonized Tariff Schedule (HTS) which is published by the International Trade Commission (ITC). Different rates are applied depending on the countries' trade relations status with the United States. The general rate is for countries that have normal trade relations status with the United States. The special rate is for countries that are not developed and/or are eligible for an international trade program.

RELATED TERMS
  1. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  2. Continuous Bond

    A financial guarantee commonly used in international trade that ...
  3. Balanced Trade

    A condition in which an economy runs neither a trade surplus ...
  4. Customs Barrier

    Any measure designed to limit international trade. A customs ...
  5. Trade Liberalization

    The removal or reduction of restrictions or barriers on the free ...
  6. Terms of Trade - TOT

    The value of a country's exports relative to that of its imports. ...
Related Articles
  1. What Is International Trade?
    Personal Finance

    What Is International Trade?

  2. The Basics Of Tariffs And Trade Barriers
    Economics

    The Basics Of Tariffs And Trade Barriers

  3. What Is The World Trade Organization?
    Economics

    What Is The World Trade Organization?

  4. Cost-Push Inflation Versus Demand-Pull ...
    Entrepreneurship

    Cost-Push Inflation Versus Demand-Pull ...

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center