Understanding Import Duties: A Comprehensive Guide

Import duties (tariffs) are taxes on goods entering a country, paid by the importer.

Purposes

• Government revenue.
• Protect domestic industries by making imports relatively more expensive.

Types of Duties

• Ad valorem: Percentage of goods' value.
• Specific: Fixed amount per unit weight/volume.
• Compound: Combination of both.

Impact

Duty rates vary by country and product (HS code). High duties increase consumer prices; low duties favor free trade. Duties are a key tool in trade policy.