This is a tax that the government of a country imposes on imports from other countries. The terms “tariff” and “duty” are often used interchangeably. However, import duty is the amount paid on imported goods according to the import volume. For instance, assuming someone imports $50,000 worth of goods into the US, the import duty they pay will be around $2000. Such an increase in imports is often aimed at making the product less attractive so that consumers can shop in their domestic markets instead. The current trend towards e-commerce in the world makes it of utmost importance for business owners to investigate how import tariffs affect their online business. Countries around the world are now considering online business activities and companies when imposing levies and taxes. In this nation, the General Department of Customs and Excise is the authority in charge of collecting import duties and enforcing import regulations.
If you are interested in learning about the import duties in this country, here is an article on import duties in Cambodia and other information you need to know.
What it is
They are taxes imposed by certain authorities when goods are brought into the country. The value of the imported goods often determines the tariffs imposed by the government. Import duties are often confused with customs fees or import taxes. In the context of economics, they are imposed to generate national income and protect domestic commodities from the rise of foreign products. But another reason for collecting taxes is to prevent foreign goods from flooding local markets. In addition, they are used to reprimand a country through sanctions.
Import duties in the country
The levies are charged on imported goods and are imposed by the General Department of Customs. Import duty rates in the nation vary depending on the type, origin, and value of the imported goods. The nation has a tariff schedule where different import duty rates apply to numerous kinds of goods. The tariff rates vary from 0 percent to 35 percent, with an average rate of about 10 percent. Some goods are exempt from import duty, such as books, humanitarian items, and certain types of medical equipment. In addition to the levies, other taxes and duties such as Value Added Tax (VAT) may be imposed on imported goods. The standard VAT rate is 10 percent but some goods and services are subject to a reduced rate of 7 percent or are exempt from VAT. Residents importers need to acquire import licenses for specific goods such as weapons, ammunition, and some types of drugs, and can also be subject to other regulatory requirements based on the type of goods being imported.
When importing goods into the territory, it is pertinent that importers are fully aware of all possible levied taxes and duties to avoid possible penalties and delays in customs clearance at the border. Importers may contact the General Department of Customs or Customs Broker for details of import duties and regulations that they must be aware of.
How it is charged
In many cases, people do not know which of the levies are imposed on their shipments. However, as a business owner, it is very important to inform your international customers about the taxes you will be charged. That way you won’t be suffocated if you have to pay extra for delivery. They can easily calculate the tax you should pay based on your country’s tax rate and add this to the price of the product you want to buy so you know how much you pay. You can hire a professional to help you calculate the import duty you have to pay on your shipment.
