Customs duty

How it is used

Often just 'duty' or 'duties', as in 'duties and taxes'. The rate depends on the HS code and the origin of the goods, and trade agreements can reduce it to zero. Duty is paid, charged, levied, exempted or refunded. Import VAT is a separate charge.

Example sentences

1. Thanks to the certificate of origin, the customs duty on this shipment was zero.

2. Under DDP terms, the seller pays the customs duty in the destination country.

Common collocations

• pay customs duty
• duty rate
• duties and taxes
• duty-free
• import duty

Related terms

• HS codeA number from the Harmonized System, the international classification of goods run by the World Customs Organization, used to identify products for duties and trade statistics.
• customs declarationThe official form, now usually electronic, in which an importer or exporter tells customs what the goods are and states their value, origin and HS code.
• certificate of originAn official document stating the country where goods were made, which customs uses to decide which duty rate and trade rules apply.
• DDPShort for Delivered Duty Paid: the Incoterms rule with the most obligations for the seller, who delivers to the named place cleared for import and pays all duties and taxes.
• bonded warehouseA warehouse under customs control where imported goods can be stored without paying duties and taxes until they are released into the country or re-exported.

This word in other fields

The same English word can have a different meaning in another field:

• customs duty · E-commerce
• customs duty · International Trade

More terms: Customs

• customs clearance
• customs broker