What is the primary difference between local and import customs duty?

The primary difference between local and import customs duty lies in the type of goods to which each applies. Local customs duty is levied on goods that are produced domestically, essentially acting as a tax on the sale or consumption of those goods within the country. In contrast, import customs duty is imposed on goods that are brought into the country from overseas. This duty is meant to regulate and control the flow of foreign goods, protect domestic industries, and generate revenue for the government.

Understanding this distinction is crucial for businesses and individuals involved in international trade, as it affects pricing, legal obligations for tax compliance, and the overall cost of goods. This differentiation helps ensure that domestic products are not at a competitive disadvantage compared to imported items, as each type of duty serves distinct economic purposes within international and local trade contexts.