What is import duty?
Import duty is a tax a country charges on goods entering it. The rate comes from the product’s tariff code and its country of origin, and it is charged on the customs value, by quantity, or both. Additional duties, such as trade remedies, can be charged on top.
Updated
Calculate the duty on a product, with every additional duty its code and origin meet.
The breakdown will appear here
Every duty, fee and tax line with the rate used, the de minimis check, any conditional measures, and the total your customer pays to receive the parcel.
- Duties
- Customs duty and any additional duties for this origin
- Fees
- Government processing fees where they apply
- Taxes
- Import VAT or GST, charged on value plus duty
The kinds of duty
Ad valorem duty is a percentage of the customs value (12% of the value). Specific duty is an amount per unit, weight or volume ($0.50 per kg). Compound duty combines the two.
The general rate (MFN) applies to most origins. Preferential rates under trade agreements can lower it to zero for qualifying goods. Additional duties, such as anti-dumping duties or the US Section 232 and 301 tariffs, are charged on top for specific products and origins.
How it is calculated
Duty = customs value × duty rate, for an ad valorem rate. The customs value is usually the price paid for the goods; the EU and the UK add shipping and insurance to the border, the US and Canada leave international freight out. Import tax is then charged on top, usually on the value plus the duty.
Frequently asked questions
Who pays import duty?
The importer of record. For a parcel that is the buyer unless the seller ships DDP and pays it for them.
Is import duty the same as VAT?
No. Duty depends on the product’s code and origin; VAT or GST is a sales tax on the value plus the duty, at the destination’s rate.