Customs & Duty Fundamentals

Yes, significantly. US: clothing 10-32%, electronics 0-5%, footwear up to 48%. EU: clothing 6.3-12%, electronics 0-14%. Rates also change based on country of origin and trade agreements. Accurate HS classification is critical for margin protection.

Excise duties are additional taxes on specific product categories, typically alcohol, tobacco, fuel, and certain electronics. Unlike standard customs duties, excise duties target particular product types and are often charged at a flat rate per unit rather than as a percentage of value. They apply on top of standard duties and VAT/GST. If you sell excise-liable products, factor these into your landed cost calculations.

In shipping, duties are the customs fees charged when a parcel crosses a border and is imported into the destination country. They’re usually determined by the product’s HS code, origin, and declared value.

Even if the product price is the same, the total cost can differ because international orders may include: (1) shipping costs, (2) import duties (based on HS code, value, and origin), (3) import taxes like VAT/GST/sales tax (based on destination rules), and (4) carrier/admin fees for customs clearance. That’s why showing a total landed cost up front is important for cross-border shopping.

Import duty is a customs charge applied when goods are brought into a country. It depends on what the item is (HS code), where it was made (country of origin), and its declared value. Some countries have thresholds (de minimis) where duties may be reduced or waived, but many shipments still attract duties and taxes.

People often say “customs, duties, and tariffs” together because they’re related but not identical: customs is the process and authority; tariffs are the published duty rates; and duties are the actual fees charged based on the tariff rate, HS code, and declared value.