Export Duty is a tax imposed by a government on goods that are exported out of a country.
How It Works:
- Goods are classified under the appropriate tariff category.
- The government determines if export duty applies.
- The duty is calculated based on value or quantity.
- The exporter pays the duty before shipment.
- Goods are cleared for export after payment.
Benefits:
- Helps regulate export of critical goods
- Generates revenue for the government
- Ensures availability of essential goods domestically
- Controls excessive exports
Example:
The government imposes export duty on certain metals to ensure adequate domestic supply and stabilize prices.