Question

A customs duty is best described as a ____________. a. tax paid on exported goods c. fee paid by countries that wish to implement import quotas b. tax paid on imported goods d. fee paid by countries as they enter into free trade agreements

Answer 1

A customs duty is best described as a B.) TAX PAID ON IMPORTED GOODS.

This tax is levied to increase the state revenue as well as protect domestic businesses that are of the same industry as those imported goods.