Question

Duties are tariffs levied on imported goods to offset subsidies made to producers of these goods in the exporting country.

• A. Custom
• B. Countervailing
• C. Anti Dumping

Answer 1

The correct option is B Countervailing

Countervailing duty (CVD) is a specific form of duty that the government imposes in order to protect domestic producers by countering the negative impact of import subsidies. CVD is thus an import tax by the importing country on imported products.
Anti-dumping duty is imposed to rectify the situation arising out of the dumping of goods and its trade distortive effect.
Customs duty refers to the tax imposed on goods when they are transported across international borders. In simple terms, it is the tax that is levied on import and export of goods. The government uses this duty to raise its revenues, safeguard domestic industries, and regulate movement of goods.