“Preferential duties” refer to lower-than-normal duty rates applied to imports from third countries. These reduced duty rates are granted as a result of preferential trade agreements or arrangements between countries. Such agreements aim to promote trade by providing certain benefits, such as reduced tariffs, to eligible trading partners. Preferential duties are typically offered to foster economic cooperation, increase market access, and boost competitiveness. By granting lower duty rates, countries encourage the importation of goods from specific trading partners, creating opportunities for mutually beneficial trade relationships. Preferential duties play a significant role in facilitating international commerce, stimulating economic growth, and fostering closer ties between nations through preferential trade agreements.

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