Customs duty is a tax a government imposes on the imports and exports of goods in and out of the country. Customs duty is levied by the government in order to increase the country’s revenue, as well as to provide protection to domestic industries from competition from other countries. The government often uses the Union Budget to levy new taxes. Hence, industry players usually keep a keen eye on the new customs duty being announced. The customs duties levied in Budget 2018-19 are: - Custom duty on crude edible vegetable oils such as groundnut oil and safflower seed oil hiked from 12.5% to 30% - Custom duty on refined edible vegetable oil hiked from 20% to 35% - Custom duty hiked on sunglasses, cigarette lighter, toys, bus and truck tyres, and select furniture - Custom duty on imitation jewellery hiked from 15% to 20% - Custom duty doubled on all watches to 20% - Import duty on LCD/LED/OLED panels and parts of TVs hiked to 15% - Custom duty on smart watches, wearable devices and footwear doubled to 20%.