GlossaryCustoms and trade
Duty
A tax charged by a customs authority on imported goods, usually a percentage of their value set by product classification and origin.
A duty, or customs duty, is a tax on goods crossing a border, almost always on imports. Most duties are ad valorem, meaning a percentage of the customs value, while some are specific (a fixed amount per unit or weight) or a combination of both.
The rate depends on the product's tariff classification (HS or HTS code), its country of origin, and any trade agreements or additional tariffs that apply. Duty is separate from import taxes such as VAT, which are often charged on top.
Who pays the duty depends on the terms of sale: the buyer under DAP, the seller under DDP.
Learn more in our Cross-border shipping articles.
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