Duties and taxes are government charges that may apply when goods are imported, sold or moved across borders. The amount depends on classification, origin, value, destination and transaction circumstances.
What is customs duty?
Customs duty is commonly calculated using the tariff rate applied to a customs value. Preferential origin or trade remedies can change the rate.
What taxes may apply?
Import VAT, GST, sales tax, excise and other levies may apply. Some taxes may be recoverable by eligible businesses, while duty is generally a landed cost.
Illustrative import calculation
| Calculation | Rate or basis | Amount |
|---|---|---|
| Customs duty | 5% × $50,000 | $2,500 |
| Tax base | $50,000 + $2,500 | $52,500 |
| Import tax | 12% × $52,500 | $6,300 |
| Total at import | Duty + tax | $8,800 |
The calculation is illustrative; freight, insurance, other fees and local valuation rules may alter the base.
Who is responsible for payment?
The importer of record is generally responsible to customs, though commercial terms can allocate economic cost between buyer and seller.
What should be documented?
Keep classification, origin, customs value, rate, tax base, exchange rate, entry and evidence supporting exemptions or preferences.
