Customs duties refer to the taxes paid on products or goods imported into a country. These duties are imposed by customs regulations and are commonly known as import taxes, tariffs, or trade barriers. Tariffs are generally imposed to protect domestic industries from foreign competition.
Governments impose customs duties mainly for two reasons: generating revenue and protecting local industry. The revenue generated goes towards funding government functions like public services such as education, health care, etc.
The amount of duty charged on imports depends on various factors which may include; the value of goods being imported, the origin of those goods, their composition in terms of materials used to make them among other things.
These tariffs can reduce international trade and restrict transactions between countries because they increase prices that consumers pay for imported goods . Consequently,it is common for retaliatory measures due to uneven classifications resulting in dissuading producers from venturing into external markets.
Customs regulations govern how these import taxes work.In particular,the specifics regarding levying taxation within each jurisdiction.This allows authorities,set relevant parameters,e.g., what types and amounts thereof would incur specific tax rates.
## What Types Of Goods Have Custom Duty Applied To Them?
Customs duties apply across all most all consumer-based commodities including;electrical devices,furniture,clothing,textiles,machinery and equipment amongst others.
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