GlossaryEN1 min readUpdated: Jun 22, 2026
customs duties
Unlike import VAT or excise taxesâwhich are levied at the border but follow separate legal basesâcustoms duties are government charges specifically applied to goods crossing a customs frontier, serving both as fiscal revenue and as a trade policy instrument.
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Source: https://www.wcoomd.org/en/topics/tariff-and-trade-affairs/instrument-and-tools/hs-nomenclature.aspx
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Unlike import VAT or excise taxesâwhich are levied at the border but follow separate legal basesâcustoms duties are government charges specifically applied to goods crossing a customs frontier, serving both as fiscal revenue and as a trade policy instrument. The category includes import tariffs, export duties, anti-dumping duties, and countervailing duties. The amount payable is determined by applying the applicable tariff rate, derived from the Harmonized System (HS) classification of the goods, to their customs value, which is generally the transaction price. Under free trade agreements or preferential trade arrangements, duty rates may be reduced or eliminated entirely, making accurate proof of origin a key cost driver in international supply chains.
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