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Taxes & Duties

Differences between excise/pentalty/anti-dumping?

Here's a breakdown of the key differences between anti-dumping duties, excise tax, excise duties, and penalty duties/additional duties:

Anti-Dumping Duties

  • Anti-dumping duties are tariffs imposed on imported goods to counteract the selling of goods at prices lower than the fair market value or production cost in the exporting country.
  • These duties are intended to protect domestic industries from unfair competition and practices such as dumping, where foreign companies flood the market with cheaply priced goods.
  • Anti-dumping duties are imposed by governments after an investigation into alleged dumping practices by foreign exporters.

Excise Tax/Surtax/Surcharge

  • An excise tax is a tax levied on specific goods at the point of manufacture, sale, or use, rather than on income or property.
  • Excise taxes are often applied to goods that are deemed harmful to society or whose consumption should be discouraged, such as alcohol, tobacco, gasoline, and certain luxury items.

i.e. Goat Milk to Canada regardless of country of origin

  • The purpose of excise taxes can vary, from raising revenue for government programs to promoting public health or environmental conservation.

Excise Duties

  • Excise duties are similar to excise taxes and are imposed on specific goods produced domestically or imported into a country.
  • These duties are typically levied on goods that are manufactured, sold, or consumed within a country, with the revenue generated contributing to government funds.
  • Excise duties may also be imposed on goods like alcohol, tobacco, fuel, and luxury items, similar to excise taxes.

Penalty Duties/Additional Duties

  • Penalty duties or additional duties refer to tariffs imposed on imported goods beyond the regular customs duties or tariffs.
  • These additional duties may be imposed for various reasons, such as non-compliance with trade regulations, violations of import quotas, or retaliatory measures in response to trade disputes.
  • Penalty duties can be applied in addition to anti-dumping duties, countervailing duties, or other tariffs already imposed on specific goods.

In summary, while anti-dumping duties aim to counteract unfair trade practices, excise taxes and duties are imposed on specific goods for various reasons, including revenue generation and discouraging consumption of certain products. Penalty duties or additional duties are imposed for non-compliance or as a response to trade issues, separate from regular customs duties.