- It is a tax collected on imports and some exports by customs authorities of country.
- It is usually based on value of goods that are imported. Depending on context, import duty may also be referred to as tariff, import tax, customs duty and import tariff.
- The purpose of import duty is to raise income for local government and to give market advantage to locally grown or produced goods that are not subject to import duties.
- It is sometimes used as tool to penalize a particular nation by charging high import duties on its products.