Duties, tariffs and the measures attached to a code

How rates are expressed

Most are ad valorem, applied as a percentage of the customs value. Others are specific, applied per unit of weight, volume, count or alcoholic strength, and some are compound, combining both. Specific duties matter more than they look, because their effective burden rises as the value of the goods falls, which changes the economics of sourcing cheaper variants of the same product.

Which rate applies to your goods

The starting point in the multilateral system is the rate a country applies to imports from members generally, and preferential arrangements or unilateral development schemes may provide a lower one where the goods qualify as originating. Origin therefore selects among rates that all sit under the same commodity code. Where the goods do not qualify, the general rate applies regardless of the commercial relationship or how long the parties have traded.

Measures that are not ordinary duty

Anti-dumping and countervailing duties, safeguard measures, retaliatory tariffs and additional charges attach to particular goods from particular origins and can dwarf the base rate. Because they are origin-specific and product-specific, they are a standing reason to verify both attributes before committing to a supplier. They also change over time, so a supply arrangement priced against last year's position needs rechecking rather than rolling forward.

Suspensions, reliefs and procedures that defer

Where domestic industry cannot source an input locally, administrations may suspend duty on it. Reliefs exist for returned goods, for scientific and educational items, for personal effects and for other defined situations. Separately, choosing a procedure such as warehousing, processing or transit defers or avoids the charge rather than reducing the rate. These routes are conditional and usually require an authorisation, and the conditions are set nationally.

Estimating duty without inventing figures

A workable estimate needs the code, the origin, the valuation basis and the applicable measures, taken from the importing country's own published tariff for the relevant period. Anything less is a guess, and quoting a customer a delivered price on the strength of a guess transfers a policy risk onto your own margin. Where the tariff position is uncertain, the honest answer to a customer is that the rate is confirmed at the point of import.

Frequently asked questions

Why can two suppliers of the same product face different duty?

Because origin differs. The commodity code may be identical while one supplier's goods qualify under a trade agreement and the other's do not, and trade defence measures targeting a specific origin can apply to one and not the other.

Who ultimately pays the duty?

Legally, the accountable party in the importing country. Commercially, it depends on the agreed delivery term and on pricing power in the market, and it is common for the burden to be shared through negotiated price adjustments rather than falling wholly on either side.

Can duty already paid be recovered if goods are re-exported?

Sometimes, through repayment or drawback mechanisms where the jurisdiction offers them and the conditions are met. Planning for it before import, by using a suspensive procedure instead, is usually simpler than recovering afterwards.