Duties, Taxes, and Trade Remedies
This domain covers what is actually payable and how governments adjust the playing field. Candidates must distinguish ad valorem, specific, and compound duties; understand the duty base (customs value, sometimes plus freight and insurance); and know that import taxes such as value-added tax, excise, and stamp duties are computed on a base that may include duty. Know the mechanics of duty drawback, duty deferral, and suspension regimes, and the treatment of anti-dumping (AD), countervailing (CVD), and safeguard measures. AD and CVD are country- and producer-specific and are typically calculated as a margin; safeguards are global, time-limited, and applied to fair trade.
Traps: (1) computing VAT on the invoice value alone when the base includes duty and freight; (2) confusing a safeguard with an AD measure - safeguards do not require a finding of unfair pricing; (3) assuming a preferential rate applies to the whole consignment when only part qualifies; (4) missing that AD/CVD liability can be retroactive and subject to cash deposit and later assessment; and (5) overlooking that drawback requires evidence of export and matching of imported inputs.
Rule of thumb: build the duty stack in order - customs value, then duty rate (including any AD/CVD or safeguard), then the tax base for internal taxes. Worked example: goods valued at 100,000 with a 10% duty and a 20% VAT computed on value plus duty. Duty is 10,000; the VAT base is 110,000; VAT is 22,000. If an AD margin of 15% also applies, add 15,000 to duty before computing VAT, giving a VAT base of 125,000 and VAT of 25,000.