Import duty
Import duty is the tax a country charges on goods entering its customs territory. It is calculated as HS classification × origin × customs value, plus any anti-dumping or countervailing duties, plus VAT/GST on the duty-paid value.
How duty is calculated
- HS classification — assign the goods an HS code (chapter + heading + subheading).
- Origin determination — where the goods were made, not where they were shipped from. Originating goods can qualify for FTA preferential rates.
- Customs value — usually the transaction price + freight + insurance (CIF basis).
- Rate application — MFN (Most Favoured Nation) rate, or preferential FTA rate if a Certificate of Origin is presented.
- Add-on duties — anti-dumping, countervailing, safeguard duties on specific country-product combinations.
- VAT / GST — applied on (customs value + duty) at the destination's standard rate.