Customs Duty

What is Customs Duty?

Customs duty is a tax imposed by a government on goods when they are transported across international borders. The rate of duty is usually determined by the type of goods, their value, and their country of origin.

Why It Matters

• It protects domestic industries by making imported goods more expensive relative to local products.

• For businesses, it is a direct cost of importing materials or finished goods that must be factored into pricing.

• Compliance with customs regulations is essential to avoid delays, fines, or the seizure of goods at the border.