This customs tax is called a tariff.
The question as to the goods that shall be subject to a tariff and the amount to be levied on the same, is one that has long perplexed statesmen and been a leading party issue.
The merchant, to whom the goods are assigned from a foreign port, must pay the duty levied on them by a Government Appraiser before he can take them away.
Private parties, landing from abroad at any of our ports of entry, are required, before getting their baggage, to write out a declaration of the things contained in their trunks. But this declaration does not prevent the customs inspectors from making a careful personal examination. All things found dutiable, whether declared or not, are set apart and held until the assessment or duty is paid.
The evasion of a customs duty is called "smuggling" and is punished by the confiscation of the goods, and penalties in the way of fine and imprisonment.
There are people who would consider it a sin to cheat their butcher, but see no wrong in cheating the Government.
To the merchant who pays tariff duties the amount involved is a direct tax.
When the merchant sells his goods to the retailer or consumer, he adds the tariff to his freight, insurance, interest, etc., as direct purchase cost. This is strict business, but the consumer pays all the bills with the profit added.
INTERNAL REVENUE
The second great source of Government revenue is derived from the internal revenue tax, or excise duties.