In addition to encouraging domestic trade, duty also gives the nation a piece of the action when somebody buys something produced overseas. Customs agencies are often major sources of revenue for the government. The US Customs Service, for example, brings in more money than any other government office except the Internal Revenue Service. To control specific sorts of trade, a government may impose a higher tariff on certain types of goods . Certain countries may join together to work out mutually beneficial trade agreements, enabling businesses in those nations to trade more freely with each other than they can with businesses in other nations. This gives an advantage to nations that a country has a good relationship with.
Customs agencies also monitor what is being exported from a country. For example, most governments strictly regulate what weapons can be exported to other nations. This is simply a common-sense safety measure: Its not a good idea to arm enemy nations, so the government has to know who is buying any domestically-produced weaponry. As well see later on, customs agencies also pay careful attention to how much money citizens are transporting out of the country.
Duty charges have a huge effect on big businesses, which may import millions of dollars worth of goods every year. To regulate trade on this level, a countrys customs agency must keep track of all shipments that come into the nations ports or cross its borders. They cant check every bit of foreign cargo, of course, so agents pick certain boxes to inspect and certain shipments to scrutinize. In an effort to speed up the process, the US Customs Service is implementing new, computerized systems for processing shipments and charging importers.
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