We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What is Ordinary Customs Duty? A Comprehensive Legal Overview
Definition & Meaning
The term ordinary customs duty refers to a specific type of tax imposed on goods imported into a country. This duty is calculated based on the nature of the article itself, regardless of other factors such as its value, production methods, or the quantity of similar items imported. However, it does not include various other types of duties or taxes, such as those based on specific actions related to the importation, countervailing duties aimed at offsetting subsidies, anti-dumping duties for goods sold below market value, or any other fees unless explicitly designated as customs duties by law.
Table of content
Legal Use & context
Ordinary customs duties are primarily used in international trade law and customs regulations. They play a crucial role in determining the cost of imported goods and can affect trade agreements between countries. This term is relevant in various legal contexts, including trade law, tax law, and international relations. Users may need to complete forms or follow procedures related to customs duties, which can often be managed using legal templates provided by services like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A company importing electronics from another country may be required to pay ordinary customs duties based on the type of electronics being imported, regardless of their market value.
Example 2: A business importing textiles will pay ordinary customs duties calculated on the nature of the textiles, not influenced by any subsidies the exporting country may provide (hypothetical example).
Relevant laws & statutes
Ordinary customs duties are governed by various statutes, including:
22 USCS § 1360 - Defines ordinary customs duty and its exclusions.
Internal Revenue Code sections relevant to customs duties and taxes.
Comparison with related terms
Term
Definition
Key Differences
Countervailing Duty
A duty imposed to offset subsidies provided by foreign governments.
Countervailing duties are not considered ordinary customs duties.
Anti-Dumping Duty
A duty imposed on imported goods sold below fair market value.
Anti-dumping duties are also excluded from the definition of ordinary customs duties.
Common misunderstandings
What to do if this term applies to you
If you are involved in importing goods, it's essential to understand the ordinary customs duties that may apply. Ensure you accurately classify your goods and calculate any applicable duties. You can explore ready-to-use legal form templates on US Legal Forms to assist with customs documentation. If your situation is complex or involves significant sums, consider consulting a legal professional for tailored advice.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.