What you actually pay at the border
Import charges usually combine several elements, assessed by customs at clearance:
- Customs duty — a percentage set by the goods' tariff classification (HS code) and country of origin.
- Import VAT / GST — charged on the value of the goods plus duty plus freight, at the destination country's rate.
- Excise & other levies — on specific goods (alcohol, tobacco, fuel) or anti-dumping measures.
- Clearance & disbursement fees — for processing the entry.
How duty is calculated
Three things determine the duty owed — and all three are where accuracy pays off:
- Classification (HS code). Every product has a Harmonized System code that sets its duty rate. Misclassification means over- or under-paying — both carry risk.
- Customs value. Usually the transaction value, with rules on what freight and other costs are included.
- Country of origin. Determines eligibility for preferential (reduced) duty under trade agreements.
Who pays — DDP vs DAP and friends
Your Incoterm decides whether the seller or buyer is responsible for import clearance and charges:
- DDP (Delivered Duty Paid) — seller pays duty and import VAT; maximum seller obligation.
- DAP / DPU — seller delivers, but the buyer clears and pays import charges.
- EXW / FCA / FOB etc. — buyer manages import and pays the charges.
Tip: import VAT is often recoverable by a registered business in the destination country, but duty is a true cost. Factor both into your landed-cost model.
Reducing duty — legitimately
There are lawful ways to lower the bill, and we help you use them:
- Free Trade Agreements & preferential origin — qualifying goods can clear at reduced or zero duty with the right origin documentation.
- Tariff engineering & correct classification — ensuring you pay the right rate, not a higher one.
- Customs special procedures — bonded warehousing, inward processing relief, and duty deferment to improve cash flow.
How Boabab helps
Our customs partners classify your goods, value the entry correctly, check FTA eligibility, and file a clean declaration — so your cargo clears without delay and your landed cost holds no surprises. We can quote your shipment on a fully landed basis up front.
Note. This page is general information, not legal, tax, or financial advice. Rules vary by country and change over time — we help you apply the right ones to your specific shipment, and connect you with specialists where needed.