Why there is no customs duty imposed on IT services/software products imported into the United States of America. All countries protect their industries and economies by imposing customs duty. For eg, India imposes a customs duty of more than 100% to import passenger cars manufactured abroad. So if the cost of a passenger car manufactured in USA is $25,000, it's cost in india is $50,000. The idea is to encourage the citizens/businesses of India to buy vehicles manufactured in India to avoid the customs duty. In the absence of these customs duties, the IT product or service companies based out of United States are impacted adversely and lose business to countries like India, China, Brazil where these services are available at one tenth the cost.
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