This is a form of tax levied by the government on imports from other nations. The words “tariff” and “duty” are often interchanged. Import duty is the amount of money paid for an imported product, depending on the quantity imported. For example, say one imports an item to a foreign country; they have to pay an extra charge. This increase in the price of imported goods is to make foreign goods less “attractive” so consumers can buy from the local markets instead. With the current transition towards e-Commerce, even online businesses need to learn which import duties affect their businesses, as online transactions are now being charged taxes. The amount of duty paid depends on the quantity of the products imported, the kind of products, and the source country. In Armenia, the State Revenue Committee of the Republic of Armenia. is in charge of collecting import duties and imposing import rules.
What it is
They are taxes levied by an authorized authority on goods brought into a country. Usually, the worth of the goods imported decides the duty taxed by the government. They are often referred to as customs duties, tariffs, or import taxes. They are imposed to create revenue for the state and to protect local commodities from the dominance of foreign goods. They are also charged to stop foreign goods from flooding the local market.
Import duties in the country
Import duties in the country are charged on goods imported into the territory and are collected by the State Revenue Committee of the Republic of Armenia. The charging rates in the nation vary depending on the type of goods being imported, their origin, and their value. The country has a tariff schedule where import duty rates apply to different types of goods. The tariff rates range from 0 percent to 50 percent, with an average rate of 10 percent. Importers are not required to pay charges on certain products, such as books, humanitarian goods, and specific types of equipment used in scientific research. In addition, other taxes, and charges may also be imposed on imported goods, such as value-added tax (VAT) and excise tax. The standard VAT rate in the country is 20 percent, although reduced rates of 10 percent and 0 percent may apply to a few goods and services.
Importers in this territory are required to obtain their import licenses before importing some goods like weapons, explosives, and narcotic drugs. They may also be subject to other regulations depending on the type of goods being imported. Importers need to know the taxes and charges applicable to importing goods into the nation for them to avoid penalties or delays in the clearance of their goods at the border. Importers can consult with the State Revenue Committee of the Republic of Armenia or a customs broker for more information or changes regarding import duties and regulations.
Charging import duties
Charges vary from country to country. Generally, they are charged as a percent of the customs value, including insurance and shipping charges. Most persons are often uninformed of the import duties charged on their shipment. However, being a business owner, you have to inform your international customers of the levied duty. This way, they are not shocked when they have to pay an additional charge upon delivery. One can easily calculate the tax to be paid based on their country’s rate and the price of the product they wish to buy. This applies to new importers importing into the territory for the first time. If you are unsure of how to calculate the charges, you can consult a professional or a business support company, as they often provide an online calculator.
Note that importers are required to pay import duties before their goods are cleared by customs. When they fail to pay the levied duties, they may face financial fines, penalties, and even confiscation of the imported goods.
