Final answer:
The statement that customs duties are always based on the value of the goods is false; duties can also be based on quantity or weight. The colonists' objection was to how tax money would be applied and representation in Parliament, not to the principle of taxation itself.
Step-by-step explanation:
Customs duties are not always based on the value of the goods; this statement is false. Customs duties can be ad valorem (based on the value of the goods), but they can also be specific duties (based on quantity or weight), or even a combination of both. An example of specific duties would be a set fee per kilogram on imported cheese, regardless of its value. Tariffs are a type of tax on imported goods used by many nations to raise revenue and protect domestic industries. They can indeed be based on the value of goods, but can also be influenced by other factors.
The colonists during the lead-up to the American Revolution made a distinction between internal and external taxation by Parliament. The statement that 'The colonists did not necessarily object to the principle of taxation, but rather how the tax money would be applied' is true. The colonists were primarily concerned with the aspects of actual vs. virtual representation in Parliament and whether taxes were meant to regulate trade or to raise revenue.