What does Customs Duty primarily apply to?

Customs Duty primarily applies to goods imported into the country because it is a tax imposed on the importation of goods from other nations. This duty is assessed based on the value of the goods, their classification, and the country of origin. The primary purpose of Customs Duty is to regulate the flow of foreign goods into a domestic market, protect local industries, and generate revenue for the government.

In contrast, transport services within the UK are typically not subject to Customs Duty, as this duty focuses on tangible goods crossing international borders rather than services provided domestically. Similarly, services delivered electronically fall under a different category regarding taxation and do not incur Customs Duty. Lastly, domestic sales transactions relate to goods sold within the country and are generally covered by different types of taxes, such as Value Added Tax (VAT), rather than Customs Duty. Thus, the correct application of Customs Duty is specifically linked to imported goods.