What Is Custom Duty
It is kind of tax imposed on import and export of goods, meaning all those taxes collected against the import and export of goods and from one country to another. It is considered that these rules which control these activities are made to save the domestic goods which is helpful in saving the income of domestic businessmen.
What Are The Types Of Custom Duty?
As globalisation is taking place in the world, every business organisation need to import and export their goods from one place to another. Let us have a look at the some important types of custom duty.
- Basic custom tax: It is imposed on the value of goods.
- Countervailing Duty: It is imposed by the central government and it equals to the subsidy paid to them by the government.
- Safeguard duty: It is charged to safeguard the domestic goods antidumping duty: This is also one of the kinds of taxes imposed on those goods which are imported from abroad. Apart from this, it is very essential to those countries which want to save their domestic market or domestic businessmen.
What Is Import Duty?
It is kind of tax imposed on those gods which are imported from abroad. Import tax is one of the important taxes which are imposed by the importing country.
What Is Export Duty?
Export duty is kind of tax imposed by the government against exporting the goods across the border.
What Is The Difference Between Duties And Taxes?
As everyone knows that tax is an obligatory payment to the government. Let us have a look at the basic differences between these two concepts.
- Duties: It is also one of the forms of taxes. It is chargeable on goods only. Duties are also compulsory to pay to the government.
- Taxes: It is imposed by the government on all the things except goods. Tax is known as compulsory obligation to the people.
Explain Education Cess On Customs Duty?
Those goods which are exempted from duty as clearance under bond is considered under the education cess which is imposed by the government while importing or exporting.
What Is The Main Purpose Of Custom Duties?
Custom duties are important for the development of a country because every government consolidated its fund from different sources to run a country and custom duties are one of those important source of incomes which help the country in many ways like with the help of these funds government releases the bailout packages to help out the country in those situations when a country suffers. In the condition of non-payment of these duties your goods would get stuck. Let us have a look at some important benefits from customs duties.
- Raise revenue: Customs duties are helpful in collecting revenue from the import and export of goods from transnational borders.
- Safeguard domestic business: Custom duties can increases the rate of those goods which are being imported in bulk from international markets just because of to save the domestic market or domestic products which give employment to various small scale domestic industries.
- Jobs: There are lots of jobs created just because of custom duties as government collects lots of revenue from the different import export companies and use this revenue in different new government organisation which many people get jobs.
- Environment: Custom duties are also important in preventing the environment as well because in order to import and export goods from one country to another country, you need to make clean the seas from where most of the import and export takes place in the world.
What Are The Most Important Features Of Custom Duties?
As custom duties are an important wheel for running a country financially because custom duties can make a country financially stronger when it receive it and when it does not, it can get financially challenged as well. Let us have a look at those points which are considered as the most important features of custom duties.
- Custom duty is applied only on the goods not on the services or anything else.
- It is also kind of tax which is imposed by the government only; no other organisation can levy it on these activities.
- Custom duties are imposed on goods only not on services.
- Education cess is applied to separately on it, which is made compulsory to this.
- Protective duties are also one of the important features of custom duties because it helps those goods which are costly due to low import duty, hence called protective duties.
What Are The Challenges In Custom Duty?
As everything has some positives and negative, hence there are some issue in custom duties as well. As custom have some challenges in dealing with all the import and export activities.
- Custom charges are higher: Most import and export companies have shown that they have to pay lots of money for importing and exporting the goods from one country to another.
- Misclassification: It is also one of the important challenges found in the custom duty. Several import and export consignment get misclassified due to heavy import and export.
- Most times it is seen that custom office does not clear shipment easily, sometimes it takes more time than expected which one of the biggest problems of India.
- Labelling Issue: It is also one of the biggest issues faced by most import and export companies.
- Certificate of origin is also checked where most companies get stuck.
- Weight of the consignment is also one of the problems which create issues in importing and exporting the goods from one place to other place.
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