ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments.

Detailed explanation-2: -A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products.

Detailed explanation-3: -tariff, also called customs duty, tax levied upon goods as they cross national boundaries, usually by the government of the importing country.

Detailed explanation-4: -The correct answer is Custom duty. Key Points. The tax imposed on the import and export of commodities is called Custom duty. This is a form of foreign trade control and a policy that taxes foreign goods to encourage or protect domestic industry.

Detailed explanation-5: -A tariff is a tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services.