How is import duty calculated?

Import duty is the tariff rate applied to the customs value of the goods: duty = customs value × duty rate. The customs value depends on the valuation basis your country uses (FOB, CFR, or CIF), and the duty rate comes from the tariff classification (HS code) of the goods.

Is VAT or GST charged on top of import duty?

In most countries an import VAT, GST, or sales tax is charged on a duty-inclusive base — the customs value plus the duty — so the tax is effectively levied on the duty as well. Some regimes assess the tax on the customs value alone. This tool supports both bases.

What is the effective duty rate?

The effective rate expresses every border charge — duty, import tax, and fees — as a single percentage of the customs value. It shows the true cost of clearing the goods, which is usually higher than the headline tariff rate once tax and fees are included.

Import Duty & Tariff Calculator

Work out the duty owed at the border — the tariff rate applied to your customs value. Add an import VAT or GST and any broker fees and you get the total import charges and the effective rate: what clearing the goods really costs as a share of their value.

Customs value ($, dutiable value)

Duty / tariff rate (%)

Not sure of the customs value? Work it out with the Customs Value calculator first.

Import VAT / GST / sales tax (%)

Tax charged on

Other fees ($, broker / handling / MPF)

Import duty

duty owed

Duty rate applied —

Import tax (VAT/GST) —

Other fees —

Total duty + taxes + fees —

Effective rate on customs value —

How import duty is calculated

Duty is the tariff rate multiplied by the customs value of the shipment. The rate comes from the goods’ tariff classification — the HS code — and the customs value is the dutiable amount your country assesses against, which depends on whether it values on an FOB, CFR, or CIF basis.

Import duty = customs value × duty rate

Duty isn’t the whole bill

Most borders also charge an import VAT, GST, or sales tax, and it’s usually assessed on a duty-inclusive base — the customs value plus the duty — so you pay tax on the duty too. Add broker fees, handling, or a merchandise processing fee and the real cost of clearing the goods climbs well above the headline tariff.

The effective rate

The effective rate rolls duty, tax, and fees into one percentage of the customs value. It’s the number worth quoting internally: a 5% tariff can land as a 25–30% effective rate once a 20% VAT and fees are in. Feed the total into landed cost to see it against the goods and freight.

A planning estimate. Your customs broker and the destination authority set the final classification, valuation, and charges.