Import Duty

Import Duty – Import duty, also known as customs duty or tariff, is a tax levied by a country on goods brought in from abroad. Its primary purposes are: Revenue generation: Contributing to government funds. Trade regulation: Protecting domestic industries by making imported goods more expensive. Key points: Calculated as a percentage of the import value or on specific quantities (e.g., per kg, per unit). Rates may vary based on the type of product, country of origin, and trade agreements. Often part of broader customs regulations that include documentation, permits, and compliance requirements.

Example: If a company imports electronics worth ₹1,00,000 and the import duty is 10%, the company must pay ₹10,000 as customs duty along with the import.