Export duties
Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Class 11, Ch 3 "Liberalisation, Privatisation and Globalisation: An Appraisal"
Meaning
Export duties are taxes on goods leaving the country. They make exports costlier, so more of the good stays at home. This keeps domestic prices down or supports local processing. Class 11 notes that India removed export duties after 1991 to make its goods more competitive, but it still uses them selectively.
Example
India put a 20% export duty on parboiled rice in 2023, which was later removed. It levied 40% on onions in 2023–24 and removed it from April 2025. Iron ore faces duties that vary with ore grade.
Don't confuse with
- Export subsidy: this is a payment or benefit that encourages exports. An export duty discourages them.
Related concepts
- Tariff
- Ad valorem tariff
- Specific tariff
- Compound tariff
- Mixed tariff
- Duty drawback
- Tariff escalation
- Tariff peak
- Effective rate of protection
- Bound tariff rate