Import Duty

Import duty (also called customs duty or tariff) is a tax imposed by a country's customs authority on goods brought in from abroad. Duty rates vary by product type (determined by HS code), country of origin, and any applicable trade agreements. Duties are typically calculated as a percentage of the customs value, though some products have specific duties (fixed amount per unit). Duty revenue protects domestic industries and generates government income.

Import duty is often the largest unexpected cost for importers. A 20% duty on a $10,000 shipment adds $2,000 to your costs. Understanding duty rates before importing helps you price products correctly, evaluate supplier locations, and explore duty reduction strategies like trade agreements or bonded warehouses.