What is import duty?
Import duty is a tax that is imposed on goods that are imported from other countries. The government puts up an increased price on the goods that are imported from other countries to make these products less desirable so that customers are encouraged to purchase domestic goods. You might see the words duty and tariff used interchangeably, but if you watch it closely you’ll see some difference.
A tariff is the value of a taxed percentage of an item. For example, when you are importing a carpet to the United States, US customs will charge a tariff of 4.5%.
Import duty is actually the amount paid on the imported product and its value completely depends on the quantity that is imported. For example, if you are importing a carpet worth $100,000, then the import duty would be $4500.