CUSTOMS DEBENTURE Meaning and
Definition
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A customs debenture refers to a legal document that serves as an undertaking or guarantee for the payment of customs duties and taxes owed on imported goods. It is a form of security provided by importers to the customs authorities to ensure that they will fulfill their financial obligations.
When goods are imported into a country, customs duties and taxes are typically levied based on their value, quantity, or other factors. The customs debenture acts as a contractual agreement between the importer and the customs authority to secure the payment of these charges.
The debenture is usually issued by the customs department or a licensed customs broker on behalf of the importer. It contains detailed information about the imported goods, such as their description, value, and origin. Additionally, it specifies the amount of customs duties and taxes owed.
By signing the customs debenture, the importer assumes a legal obligation to pay the determined charges within a specific timeframe. Failure to comply with this obligation may result in penalties, fines, or legal action by the customs authorities.
Customs debentures play a crucial role in international trade, as they ensure the collection of customs duties and taxes owed on imported goods. They provide a way for customs authorities to mitigate the risk of non-payment and ensure compliance with trade regulations.
Common Misspellings for CUSTOMS DEBENTURE
- xustoms debenture
- vustoms debenture
- fustoms debenture
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- cystoms debenture
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- cuatoms debenture
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- cusyoms debenture
Etymology of CUSTOMS DEBENTURE
The word "customs" comes from the Middle English word "custume" which originated from the Old French word "costume" meaning "habit, customs, or duty". It ultimately derives from the Latin word "consuetudo" meaning "custom, habit, or usage".
The term "debenture" comes from the Latin word "debentur" which means "there is owing" or "it is owed". In medieval Latin, "debenture" was specifically used to refer to a document acknowledging a debt. Over time, it came to be associated with bonds or promissory notes issued by governments or corporations, representing a debt owed to the holder of the debenture.
Thus, "customs debenture" refers to a document or bond issued by customs authorities to acknowledge a debt owed in relation to customs duties or taxes.
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