Tonnage Duty (Noun)
Meaning
A tax imposed on ships that enter the US; based on the tonnage of the ship.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The US government imposed a tonnage duty on all foreign ships entering its ports to generate revenue and protect domestic shipping interests.
- In 1789, the US Congress passed a law that levied a tonnage duty on all ships entering American ports, with the rate varying depending on the ship's country of origin.
- The tonnage duty was a significant source of revenue for the US government in the 19th century, particularly during times of war when international trade was disrupted.
- To avoid paying the tonnage duty, some shipowners attempted to register their vessels in the US, thereby qualifying for the lower rates available to American ships.
- The tonnage duty was eventually phased out in the mid-20th century as the US shifted towards a more liberal trade policy and the need for such a tax diminished.