Definition
A tax levied on imported goods, calculated from their customs value, HS classification, and origin.
Customs duty is a government charge on imports (and occasionally exports), usually a percentage of the customs value but sometimes a specific amount per unit. The rate comes from the tariff schedule for the goods’ HS code and may vary by country of origin.
Duty is collected at clearance and, with import VAT or sales tax, forms the landed-cost component beyond freight. Preferential origin under a trade agreement can reduce or remove it, which is why the certificate of origin matters.
Related terms
Tariff
The published schedule of duty rates a country applies to imported goods, organized by HS classification.
HS Code (Harmonized System Code)
A standardized numeric code that classifies a product for customs, determining its duty and controls.
Customs Clearance
The process of getting goods released by customs through declaration, document checks, and duty payment.
Certificate of Origin (CoO)
A document certifying the country in which the goods were produced, used to determine duty treatment.
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