GlossaryEN1 min readUpdated: Jun 22, 2026
customs costs
Unlike the narrower term 'duty', which refers solely to the import tariff, customs costs cover the full range of financial charges arising from cross-border trade.
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Source: https://en.wikipedia.org/wiki/Customs_duty
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Unlike the narrower term 'duty', which refers solely to the import tariff, customs costs cover the full range of financial charges arising from cross-border trade. They include import duties (ad valorem or specific), import VAT, excise taxes, and administrative fees levied by customs authorities. The total depends on tariff classification, customs value, country of origin, and any preferential arrangements under free trade agreements. Freight forwarders and import managers must factor customs costs into quotations at an early stage, as they can differ substantially by commodity and trading partner. Underestimating them is a common cause of budget overruns in import operations.
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