Duties and Taxes Explained

The terms “tariff” and “duty” are often used like they mean the same thing, and they’re closely related. Both are types of indirect taxes. Generally, “tariff” is used when talking about government policies or the economy, as these taxes help protect local industries and generate revenue. “Duty,” on the other hand, is usually used when referring to the actual amount charged on specific goods, which is calculated using commodity classification codes.

A duty is a tax applied by governments to goods being imported or exported. The amount you pay depends on the declared value of the items in your shipment. For example, U.S. Customs applies duties when goods first enter the country, and the final cost can vary based on factors like the product’s classification code, its value, where it was made, and any related shipping costs.

Each country establishes its own standards as to whether a shipped item is considered a document (non-dutiable) or non-document (dutiable). In most cases, documents that do not have any commercial value are non-dutiable. However, documents with commercial value are dutiable.