GlossaryEN1 min readUpdated: Jun 22, 2026
Customs duty
When a shipment crosses an international border, customs duties are typically the first charge the importer faces – levied by the government either as a percentage of the customs value (ad valorem) or as a fixed amount per unit of quantity.
Quick Answer
Last updated: Published:
Source: https://ec.europa.eu/taxation_customs/business/customs-procedures/customs-duties_en
Category
Logistics Concept
Reading time
1 min
Words
166
Mentioned in
–
Definition & Explanation
When a shipment crosses an international border, customs duties are typically the first charge the importer faces – levied by the government either as a percentage of the customs value (ad valorem) or as a fixed amount per unit of quantity. The applicable rate depends on the importing country's tariff schedule, the product's classification under the Harmonized System (HS code), and the declared country of origin; free trade agreements can reduce or eliminate the rate entirely. Duties serve a dual purpose: generating public revenue and acting as a trade policy instrument – high rates protect domestic producers, low rates encourage imports. Correct HS classification is critical for importers and freight forwarders, as an incorrect tariff heading can trigger duty reclaims, penalties, or customs holds. Within customs unions such as the EU, duties between member states are fully abolished, while a common external tariff applies to goods from third countries. Customs duties are distinct from import VAT and excise taxes, both of which may apply on top.
Next steps
Tools that match this term
Related Terms
You might also be interested in these terms
Related News
Digitalization
Passar-Update: Der Schweizer Importzoll wird ab 2027 vollständig digital
Jun 25, 2026892 min
Customs Processes
EU Parliament Approves Customs Deal with the USA: Increased Certainty in Planning, but Steel Issue Persists
Jun 16, 202617891 min
Customs Processes
US Customs Countdown: 10 Percent Surcharge Expires on July 24
Jun 14, 202619711 min
Customs Processes
Passar 2.0 Import: No New June News, but Pressure is Rising
Jun 11, 202624831 min
Customs Processes
USA Refund $22 Billion in Tariffs: Import Companies Await
Jun 11, 202622881 min
Companies
DSV Streamlines Land Transport Network Following Schenker Acquisition
May 25, 202649582 min
Logistics knowledge straight to your inbox
Weekly: Top news, industry facts and insights from the world of logistics – free.