Import duty is a customs charge imposed when goods enter a jurisdiction under an applicable tariff and customs procedure. The amount commonly depends on product classification, origin, customs value and available preference or relief.
How is import duty calculated?
For an ad valorem rate, the basic formula is customs value × duty rate. If the customs value is $75,000 and the rate is 8%, the ordinary duty is $75,000 × 8% = $6,000.
Illustrative import duty calculation
| Calculation step | Amount or rate | Result |
|---|---|---|
| Customs value | $75,000 | Valuation basis |
| Ordinary duty rate | 8% | Tariff rate |
| Ordinary duty | $6,000 | $75,000 × 8% |
| Preferential rate, if eligible | 3% | $2,250 |
| Potential gross preference saving | — | $3,750 |
The example excludes import VAT or GST, excise, fees and trade-remedy duties. Preferential treatment requires valid eligibility and evidence.
Which inputs determine the rate?
The tariff code, country of origin, trade agreement, quota, safeguard and anti-dumping or countervailing measures can all affect the result. Product name and shipment country alone are insufficient.
Duty vs. import tax
Duty is imposed under the customs tariff. Import VAT, GST, excise and processing fees are separate, although some are calculated using a base that includes duty.
What should the importer retain?
Keep classification, origin, valuation, preference and payment evidence with the entry. Compare assessed duty with the purchase and landed-cost model and correct errors through the permitted process.
