What are Custom Tariffs?
Customs, tariff, duty, and tax are four words that are often used interchangeably, because they are all types of monetary charges or fees that are incurred. However, each word has a bit of a difference between them, regarding what they are placed on and how they are enforced.
The first term, customs, is a word that is often used regarding charges that are incurred upon entry into a country. This is in reference to items that are bought in one country and carried over into the next. Customs is enforced by the law, and is a varying set of charges that are put on specific goods, and not on the individuals who are carrying the goods.
A tariff is a charge that is placed upon imports, and sometimes exports, from one country to the next. Often tariffs are used to regulate trade or goods being brought into a country.
There are different types of tariffs that can be levied. A revenue tariff is a charge that is placed on a good that cannot be produced in a country; this is to set up steady revenue. A specific tariff is a general charge that is placed on all goods.
A duty is another charge that can be incurred; a duty can be put on items that are produced in a country or items that are imported and sold in the country. These are important in helping create revenue for a nation.
And a tax is a regulated charge that has been put on services, goods, and even property. It is used as a way to secure the goods and services, and also helps to generate revenue.
Related Topics
- First Time Home Buyer Tax Credit
- An Overview on Tax Deductions
- Nevada State Tax
- Form 1040
- Indiana State Tax
- Difference Between Customs And Excise Taxes
- West Virginia State Tax
- Georgia State Tax
- Preparing And Filing Your Tax Returns
- EFTPS