Customs Duty

What is Customs Duty?

Customs duty is a tax or fee imposed on imports and exports of goods by the customs authority at the directives of the government of a country. Economically, the duty is charged to generate revenue for the government.

The customs duty is also impose to restrict foreign products from flooding the local market. As a result, it protects local goods against the dominance of foreign products. Moreover, taxes and fees are charged to penalise a country by means of a sanction mechanism.