Import Duty Tax

In most countries, imports need to be declared. Someone must provide customs with a description, quantity, and value of the imported goods so that duties and taxes can be assessed. Import duty is a tax that the importer has to pay to bring foreign goods into the country. Import duty is also known as customs duty, tariff, or import tariff. Import duty can be ad valorem, i.e. based on the value of the goods, or it can be specific, i.e. based on weight, dimensions, or other units of measure. The customs value on which duty is assessed may be the price paid for the goods alone, or the sum of the product price, the cost of shipping, and the cost of insurance. Each country has a different way to assess value.

In the US, the Harmonized Tariff System, or HTS, determines how much you will have to pay in duties when you import your goods into the States. Looking for the exact classification in HTS for your goods can be difficult. That’s when freight forwarder or customs broker will be helpful.

Your product’s HTS code, which is a ten digit code, will be included on forms for CBP (Customs and Border Patrol) such as the customs clearance invoice. The freight forwarder you choose will use it to fill out paperwork destined for both the import and export country.