13:25
thrifted a vintage burberry suit today and feeling unstoppable
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LSDefine
Simple English definitions for legal terms
compound duty
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A quick definition of compound duty:
Compound duty is a type of tax that is based on a combination of factors, such as the weight, volume, or item count of imported goods, as well as a percentage of their value. It is different from ad valorem duty, which is calculated as a percentage of the imported product's value, and specific duty, which is calculated based on the product's weight, volume, or item count. Compound duty is one of several types of taxes that can be imposed on imported goods, and it helps to generate revenue for the government.A more thorough explanation:
Compound duty is a type of tax that is based on a combination of factors such as weight, volume, or item count, as well as a percentage of the product's value. For example, if a product is imported and subject to a compound duty of 5% of its value plus $1 per pound, the total duty owed would be calculated by adding 5% of the product's value to $1 multiplied by the product's weight in pounds.
Compound duty is different from ad valorem duty, which is calculated as a percentage of the product's value only, and specific duty, which is calculated based on the product's weight, volume, or item count only.
An example of compound duty in practice is the duty imposed on imported textiles in the United States. The duty is calculated based on the weight of the textile and a percentage of its value.