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Identify the odd one: Ad valorem Duty Compound duty Domestic content requirement Specific Duty

Question

Identify the odd one:

  • Ad valorem Duty
  • Compound duty
  • Domestic content requirement
  • Specific Duty
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Solution

The odd one out in the list is "Domestic content requirement". Here's why:

  1. Ad valorem Duty: This is a type of customs duty that is levied on items based on their value. The higher the value of the goods, the higher the duty.

  2. Compound Duty: This is a type of duty that combines both specific and ad valorem duties. It's calculated as a percentage of the value of the goods (ad valorem) plus a fixed amount per unit (specific).

  3. Specific Duty: This is a type of customs duty that is levied on items based on their physical characteristics, such as weight or quantity. It's a fixed amount per unit.

  4. Domestic content requirement: This is not a type of duty. Instead, it's a regulation that requires a certain percentage of a product's components to be sourced domestically. It's used to protect and promote domestic industries.

So, the odd one out is "Domestic content requirement" because it's not a type of customs duty

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