1. Revenue Duty:
If a duty is levied with the objective of collecting tax revenue, it is termed a “revenue duty”.
2. Protective Duty:
In contrast, it is termed a “protective duty” if it is levied with the objective of protecting some domestic industry from foreign competition.
It follows that while revenue duties may be levied on both exports and imports, protective duties are, by their very nature, levied only on imports.
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It is obvious that both types of duties have their overlapping effects. A revenue duty, by increasing the import cost of an item, provides an advantage to its domestic producers.
To that extent, therefore, it is also a protective duty. Similarly, a protective duty yields some tax revenue to the authorities and is, therefore, also a revenue duty.
Therefore, in law and theory, the distinction between the revenue and protective duties is only the objective with which they are levied and not their impact.
3. Selective/Non-Selective:
When the rate of duty on an item does not vary-with reference to its origin (in the case of an import item) or destination (in the case of an export item), it is termed a non-selective, non-discriminatory or a single column duty.
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In contrast, it is termed a selective, discriminatory or a double column duty if its rate varies with reference to its origin or destination, etc.
4. Retaliatory:
These are import duties which are levied by a country in retaliation to duties levied on its export goods by country (countries) importing them.
5. Countervailing:
It is a duty on an import item for offsetting an export subsidy given by the country of its origin. It may also be levied to counteract its “dumping” by its exporting country.
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It may also be levied counterbalance an excise duty on an import-competing domestically produced ‘item. Essentially, this duty is meant for protecting domestic producers from unfair competition from abroad.