Customs duty is a charge imposed on imported or exported goods under the tariff and customs rules of a jurisdiction. The amount can depend on classification, origin, customs value, quantity, trade remedies and available relief.
How is ad valorem duty calculated?
A basic formula is customs value × duty rate. If illustrative goods have a customs value of $80,000 and an applicable rate of 6%, ordinary customs duty is $80,000 × 6% = $4,800, before taxes, fees and additional duties.
Which inputs determine the duty?
- Tariff classification
- Country of origin
- Customs valuation method
- Preferential trade-agreement eligibility
- Quantity or specific-duty units
- Anti-dumping or countervailing measures
Customs duty vs. import tax
Customs duty arises under the tariff. Import VAT, GST, excise and processing fees are separate charges with their own calculation bases. A “duty-free” import can still incur tax or fees.
What should an importer retain?
Keep classification support, origin evidence, valuation records, invoices, freight and insurance data, licenses and the final customs entry. The amount paid does not by itself prove that the classification or preference claim was correct.
