Customs Duties Explained: When, Where, and How Much

23.06.2025

Customs duties, also known as import or export taxes, are financial charges imposed by a country’s government on goods that are transported across international borders. Their purpose is to protect local industries, regulate trade, and generate revenue.

When Are Customs Duties Applied?

Customs duties are usually applied:

  • When goods cross an international border

  • During importation into the destination country

  • Sometimes upon export, depending on regulations

Each country has its own thresholds for duty-free allowances, meaning low-value shipments may not be taxed at all.

Where Do You Pay Customs Duties?

  • At the port of entry: Duties are assessed and collected by the customs authority of the destination country.

  • Via customs brokers or freight forwarders: Most importers work with professionals who handle duty payments on their behalf.

  • Online platforms (for e-commerce): Some marketplaces collect duties at checkout to speed up delivery (Delivered Duty Paid — DDP).

How Much Will You Pay?

The cost of customs duties depends on three main factors:

  1. The declared value of the goods – This includes product cost + insurance + freight (known as CIF value).

  2. The product classification (HS Code) – Harmonized System codes help customs apply the correct tax rate.

  3. The country of origin – Trade agreements or sanctions can increase or reduce duties.

Examples of Duty Ranges:

Product Type Estimated Duty Rate
Electronics 0–10%
Clothing 5–25%
Automobiles 10–30%
Food & Beverages 10–35%

These are sample rates. Always check your local customs regulations or consult a customs broker.

How to Reduce or Avoid Unexpected Duties

  • Use accurate HS codes and declare real value

  • Check for Free Trade Agreements (FTAs) like USMCA, EU FTAs, or AfCFTA

  • Consider bonded warehouses or temporary import procedures

  • Use Delivered Duty Paid (DDP) shipping to simplify costs for your customers

Conclusion

Understanding customs duties helps you avoid surprise charges, maintain legal compliance, and make smarter decisions in global shipping. Whether you're running an e-commerce store, importing industrial goods, or shipping cars — knowing when, where, and how much you’ll pay can make or break your margins.

Need help managing customs duties? [Contact us today] to streamline your logistics with confidence.