Understanding duties and taxes

The words “tariff” and “duty” are often used interchangeably, and both are forms of indirect taxation. When discussing governments or economies, the term “tariff” is generally used. Tariffs protect domestic markets while generating revenue. When talking about rates or amounts, the term “duty” is generally used, and commodity-classification codes are applied to determine the amount of duty required.

A duty is a tax levied by governments on imported and exported goods. The calculation of duties is dependent on the declared value of the commodities within the shipment. Duties are applied by U.S. Customs at the time of initial entry and vary depending on the classification code, value, country of manufacture and associated freight charges for the commodities involved.

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.

Many countries operate under a 'De Minimis' threshold—a minimum shipment value below which no formal duties or taxes are collected. For example, the U.S. traditionally maintains a higher threshold, allowing many B2C shipments to enter duty-free. However, navigating these thresholds requires digital precision. Utilizing Electronic Shipping Solutions to transmit accurate data to customs authorities ensures that your shipment qualifies for these exemptions automatically, preventing manual holds and unnecessary inspections.

Strategic Bridge: Türkiye and the EU Customs Union

"For businesses exporting from Türkiye, the Customs Union with the European Union provides a significant competitive edge that directly impacts the 'Duty' portion of your landed cost.

• A.TR Movement Certificate: By utilizing the A.TR certificate, industrial and processed agricultural goods manufactured in Türkiye can circulate within the EU without being subject to basic customs duties.

• VAT vs. Duty: It is critical to distinguish between the two; while an A.TR certificate may waive the duty, Import VAT (KDV) and other local consumption taxes (such as Special Consumption Tax - ÖTV) still apply at the destination.

Managing these certifications correctly ensures that 'Made in Türkiye' goods remain the most cost-effective and high-speed alternative for the European market, effectively neutralizing the pricing barriers faced by non-customs union competitors.