Duty is a government charge assessed on goods imported into a country. In customs and international trade, duty is usually calculated based on the product’s tariff classification, customs value, country of origin, and any applicable trade agreements or special measures. Import duties are separate from freight charges, taxes, storage, and carrier fees, but they are a major part of landed cost. Correct duty calculation depends on accurate classification, valuation, origin documentation, and import compliance.
A duty is a tax imposed by a government on goods imported into its territory. Customs duties are calculated based on the product’s classification code, declared value, and country of origin. They are the primary revenue instrument of a customs tariff.
Types of Duties
- Ad valorem duty: percentage of the declared value (e.g., 5% of $10,000 = $500 duty)
- Specific duty: fixed amount per unit, weight, or volume
- Compound duty: combination of ad valorem and specific
- Anti-dumping duty: additional levy on goods sold below fair market value
- Countervailing duty: additional levy on goods benefiting from foreign government subsidies
For related logistics context, see glossary entries on Anti-Dumping Duties, Countervailing Duties, Customs Entry, and Customs Clearance.
