GlossaryEN1 min readUpdated: Jun 22, 2026
customs duty
Customs duty is a government-imposed charge levied on goods crossing an international border, calculated on the declared customs value, quantity, tariff classification, and the applicable duty rate.
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Source: https://taxation-customs.ec.europa.eu
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Definition & Explanation
Customs duty is a government-imposed charge levied on goods crossing an international border, calculated on the declared customs value, quantity, tariff classification, and the applicable duty rate. Duties serve to protect domestic industries, generate public revenue, and regulate trade flows. They are distinct from import VAT—also collected at the border but governed by separate tax legislation—and from excise duties, which apply to specific product categories such as tobacco or alcohol. For importers and freight forwarders, the correct rate is determined from the applicable customs tariff; within the EU, the Combined Nomenclature is the binding reference. Preferential trade agreements can reduce or eliminate duty rates between partner countries.
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