What is custom duty

Customs duty is a tax imposed by the government on goods when they are transported across international borders. It serves as a tool to regulate trade, generate revenue, and protect domestic industries by making imported goods more expensive compared to local products. Key aspects include:

• Calculation: It is typically calculated based on the value, weight, or dimensions of the item.
• Purpose: It helps safeguard the national economy and control the flow of restricted goods.
• Compliance: Importers must declare goods accurately to ensure the correct duty is paid and avoid legal penalties.