Customs Duty

Definition - What does Customs Duty mean?

Customs duties are taxes that are placed upon imports and exports that are moving from one country to another. Customs agencies put these taxes on certain goods in order to generate funds for their nation. In the context of the law, required customs duties must be paid in order for the imports and exports to be legally processed.

Justipedia explains Customs Duty

Customs duties are also a way for nations to balance competitive advantages for foreign companies that they perceive as undesirable. The amount of money that a customs duty costs depends on the value of the good that is being imported or exported into or out of the nation. Size can also be a factor in cost. Often, nations will exempt citizens from certain customs duties. For example, a citizen who leaves the country for under 48 hours and makes a purchase may be exempt from certain customs duties.

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