Legal Definitions - duty on import

Definition: A tax on the importation of a product.

Example: When a company imports goods from another country, they may have to pay a duty on the imported products. For example, if a company imports shoes from China, they may have to pay a duty on each pair of shoes they bring into the country.

Explanation: Duty on import is a tax that is imposed on imported goods. The tax is usually a percentage of the value of the imported product or a fixed amount per unit. The purpose of the duty is to protect domestic industries from foreign competition and to generate revenue for the government. The example illustrates how a company may have to pay a duty on each unit of the imported product they bring into the country. This tax increases the cost of the imported product, making it less competitive with domestically produced goods.