# What is import duty?

> Import duty is the tax on goods entering a country, set by their tariff code and origin. The kinds of duty, how it is calculated, and a free duty calculator.

Source: https://border.bot/glossary/duty
Last updated: 2026-10-27

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.

## Calculate the duty on a product, with every additional duty its code and origin meet

Run it at [the landed cost calculator](https://border.bot/tools/landed-cost-calculator).

## 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.

## Related

- [Customs value](https://border.bot/glossary): The value duty is calculated on, usually the price paid for the goods (the transaction value).
- [Country of origin](https://border.bot/glossary/country-of-origin): Where goods were made, or where they last went through a substantial change, under the importing country’s rules of origin.
- [Anti-dumping and countervailing duties](https://border.bot/glossary): Extra duties on specific products from specific countries, and sometimes from specific manufacturers, that offset dumping (selling below normal value) or foreign subsidies.
- [Landed cost](https://border.bot/glossary/landed-cost): The full cost of getting goods to the buyer: the price, shipping and insurance, plus duty, import taxes and fees.
- [Landed cost explained](https://border.bot/blog/landed-cost-explained)
- [Free landed cost calculator](https://border.bot/tools/landed-cost-calculator)