What is the name for a tax that a business pays for importing goods from another country?

• A. Import duties
• B. Export duties
• C. Sales tax
• D. Packaging fees

Answer: (A)

Import duties refer to the taxes imposed by a government on goods brought into the country from abroad. These fees serve multiple purposes, including generating revenue for the government, protecting domestic industries from foreign competition, and regulating the flow of foreign goods in the market. When businesses import products, they must pay these duties as part of the process, making them an essential factor to consider in the overall cost of importing.

In contrast, export duties are taxes imposed on goods being sent out of the country, not those being imported. Sales tax is a tax imposed on sales of goods and services, typically collected at the point of sale and paid by consumers, rather than businesses on imports. Packaging fees are costs associated with materials used to package goods, which are unrelated to government-imposed taxes on imports. Thus, the correct identification of import duties is crucial for understanding the specific tax applied to the importation of goods.