compensation duty的意思|示意

Compensation Duties: Usage Explained

Compensation duties are taxes imposed by a country in order to protect its domestic industry from foreign competition. This type of taxation is generally considered to be an alternative to traditional tariffs, which are direct taxes levied on imported goods and services. In contrast, compensation duties are designed to equalize the cost of production between domestic and imported products, while still providing a financial benefit to the domestic economy.

In the US, the use of compensation duties is regulated by the Harmonized Tariff Schedule (HTS). According to this document, compensation duties are imposed whenever a foreign product is sold at a lower price than a comparable domestic product. This allows the domestic economy to remain competitive, providing more jobs and income for citizens. The imposed duties are also intended to make prices more equitable for the consumer, by making sure foreign and domestic products are sold at the same price.

In some cases, countries may also impose a compensatory duty in order to prevent dumping, which is when a foreign company sells its products in a foreign market at a lower price than in its domestic market. This can hurt the domestic economy by lowering the sales of domestic products and reducing jobs. Compensatory duties are designed to counteract the effects of dumping by raising the price of imported goods to match the higher price of domestic goods.

Compensation duties are a valuable tool for protecting domestic producers and markets. However, they must be carefully imposed in order to ensure that they do not create an excessive burden on consumers or producers. As with any taxation policy, the effects of compensation duties can be difficult to predict and must be carefully monitored.