Listen to a Business English Dialogue about Import duty
Dennis: Hi Elena, do you know what import duty is?
Elena: Yes, it’s a tax imposed by a government on goods imported into a country from abroad.
Dennis: That’s correct. Import duties are often used to protect domestic industries, generate revenue, or address trade imbalances.
Elena: So, how are import duties calculated?
Dennis: Import duties are calculated as a percentage of the value of the imported goods, known as ad valorem duties, or as a specific amount per unit, known as specific duties.
Elena: I see. Are there any exemptions or exceptions to paying import duties?
Dennis: Yes, some countries offer exemptions or reduced rates for certain types of goods, such as essential items or goods imported for specific purposes like humanitarian aid.
Elena: That makes sense. So, what are some potential consequences of high import duties?
Dennis: High import duties can lead to increased prices for imported goods, reduced consumer choice, and trade tensions between countries.
Elena: I understand. So, how do import duties affect international trade?
Dennis: Import duties can influence the competitiveness of imported goods in domestic markets and affect trade patterns between countries.
Elena: Thanks for explaining, Dennis. Import duties seem like an important aspect of international trade policy.
Dennis: No problem, Elena. They play a significant role in shaping the flow of goods and services across borders and protecting domestic industries.