How duty and VAT
stack at the border.

Start with the customs value

Most countries start from the transaction value: the price actually paid or payable, adjusted for certain additions such as international freight, insurance, commissions and assists. The exact rules differ by country.

Our calculator uses a CIF planning base for the destinations in the model. The US generally includes international freight and insurance in the customs value; the Gulf states use CIF; the EU uses a CIF basis at the border. That is a modelling assumption, not a legal ruling for your entry.

Duty is not one rate

The base tariff rate comes from the national tariff line. Additional measures can sit on top: Section 301 for China-origin goods in the US, anti-dumping duties, safeguards, quotas or excise.

Two shipments with the same HS code can face different total rates because of origin, a trade agreement, a product-specific measure or a change in the measure’s scope. A category-level range is a planning tool, not a substitute for the line-level check.

VAT and GST are different

Import VAT is usually charged on the customs value plus duty, and sometimes plus fees or excise. A registered business often recovers it, so it is a cash-flow cost rather than a permanent margin cost — but it still has to be funded at entry.

The US has no federal VAT at import. State and local sales tax can apply later in the chain. That is why a US estimate can look lower than a Gulf estimate even when the duty rate is similar.

Fees and local charges are not duty

Merchandise processing fees, harbor maintenance fees, broker fees, terminal handling, drayage and documentation sit outside the duty line. They still change the landed cost and should not be buried in a single “customs” number.

FOBtoDDP keeps them separate so you can see which costs are statutory, which are modelled and which are negotiable.

Common questions