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International Trade & Logistics Terminology

Our glossary simplifies common industry terms in freight and logistics into clear, easy-to-understand explanations.

Preferential Duty

Preferential Duty are lower tax rates granted to goods from specific origins under free trade agreements or the Generalized System of Preferences. To qualify for these preferential tariffs, a certificate of origin or declaration of origin must be provided and compliance with the rules of origin is required.

Proper use of preferential tariffs can significantly reduce landed costs, but auditable production and procurement records must be maintained to avoid potential tax evasion.

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