Duties are taxes on goods imported from foreign countries. The consumer on imported goods indirectly pays the duty assessed by the government.
There are two kinds of duties—specific and ad valorem.
Specific duties are fixed amounts levied on certain commodities as the yard, pound and gallon.
Ad valorem duties are levied at a certain rate per cent on the value of the articles taxed.
Duties are leviable on either imports or exports.
Imports relate only to goods brought into the country from abroad.
Exports relate to goods sent out of a country.
There is a special system for the collection of import duties, by naming many places along the coast to be used as "ports of entry," where custom houses in charge of collectors have been established. "Each custom house has a collector and the government has employed a large force of officers and special agents to overtake any dishonesty—attempting to smuggle goods through without paying duty."
The state legislature levies the state tax, the city council the city tax, and the taxes to keep up the national government are levied by Congress.
The law making power of Congress and state legislatures not only have the power of passing laws, raising money by taxation, but also the right and power of saying how that money shall be spent.