Governments collect revenue and protect industries at the border. Duty is a tax levied on goods when they are imported or, less commonly, exported.

Rates depend on the product’s tariff classification, its customs value, and its country of origin. Preferential trade agreements can reduce or eliminate duties for qualifying goods. Importers calculate duty liability before goods arrive so that cash flow and pricing remain under control.

Misclassification or undervaluation can lead to penalties and retrospective assessments. Customs authorities audit high-risk sectors regularly. Duty is therefore both a cost of goods and a compliance obligation that logistics and finance teams share.

• Tax on imported or exported goods
• Determined by classification, value, and origin
• May be reduced under trade agreements
• Requires accurate declaration to avoid penalties