Import Duty

  • 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.

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