This is a form of tax duty imposed by the government on imported products from other nations. People frequently use the words “tariff” and “duty” interchangeably. Import duty is an amount paid for an imported product, depending on the volume imported. In all cases, when a person imports goods into a country, they have to pay an extra charge for the goods. This increase in the price of goods imported is done to render the goods less attractive so consumers can buy from their local markets. With the current transition towards e-Commerce, online business owners have to look at how import duties affect online businesses. Since online transactions now attract import duties and other levies. The amount of duty paid depends on the volume of the products imported, the kind of products, the duty rate, and the source country. In Bahrain, the Customs authority is in charge of collecting import duties and assessing import rules.
What it is
They are charges imposed by a body under the government on goods that are brought into a country. The worth of the products imported decides the duty placed on them by the government. Import duties are frequently interchanged with customs duties, tariffs, or import levies. In the economy, they are levied to generate profit for the country and to shield native goods against the ascendance of foreign products. They are also imposed to stop foreign goods from flooding the local market.
Import duties in the country
The levies are imposed on products imported into the country and are collected by the Customs authority. The import duty rates in the nation vary depending on the type of goods being imported, their origin, and their value. The country operates a tariff schedule where different import duty rates apply to different types of goods. The tariff rates range from 5 percent to 50 percent, with an average rate of 15 percent. Importers do not have to pay duties on certain commodities like books and certain types of medical goods. In addition to import duties, other levies and charges may also be imposed on imported goods, like value-added duty and excise duty. The standard VAT rate here is 5 percent, although certain goods and services are VAT exempt.
Importers in the country are required to have an import license to import ammunition and narcotic drugs. They are also liable to other import regulations depending on the type of goods being imported. It is pertinent for importers to be fully aware of the applicable levies and charges involved in importing goods into the country to prevent penalties or detainments during clearance at the border. Importers can consult with the Customs authority or a customs broker for further information on the latest import duties and regulations.
How the levy is charged
Most persons are ignorant that the levies are charged on their imported goods. Being a business owner, informing your transnational customers of the levied duty is relatively substantial. This way, they are not shocked when they have to pay an extra charge upon delivery. One can calculate the duty to be paid based on their country’s rate and the price of the product they wish to buy. This will also apply to you if you are importing into the country for the first time. Import duties vary from country to country and they are collected as a cent of the customs value, including insurance and shipping charges. However, you can consult a professional or a business support company, If you are doubtful about how to calculate your import duty.
Note that importers must pay it before their goods are released by customs. When they fail to pay the levied duties, they may face fiscal forfeitures, penalties, and confiscation of the imported goods.
