Import Duty is a tax imposed by a government on goods brought into a country from abroad.
How It Works:
- Goods are classified under tariff codes.
- Applicable duty rates are identified.
- Duty is calculated based on value or quantity.
- The importer pays the duty.
- Goods are cleared for entry into the country.
Benefits:
- Protects domestic industries
- Generates government revenue
- Regulates foreign trade
- Controls import levels
Example:
An importer pays duty on electronic goods imported into the country before they are released from customs.