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The company's shipments of newly-produced branded and private-label footwear from its facilities to its regional distribution centers are subject to any applicable import tariffs and exchange rate adjustments.
Tariffs
- Tariffs are a form of tax that a business imposes on any imported goods at a border that the government uses to make money.
Import duties
- These are levied by the customs department upon the entry of goods into a nation. It is also known as an import tax, import duty, or customs duty.
Change in value or Exchange rate
- A country's currency is valued according to its exchange rate. For the purposes of currency conversion, it is the worth of one currency.
As a result, import duties and rate modifications may apply to the company's distribution of freshly made footwear from its production facilities to its regional distributors.
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